cpet 575 management of technology - ipfw cpet 575 management of technology - lecture 1, by prof....

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CPET 575 Management of Technology -Lecture 1, by Prof. Paul I-Hai Lin

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CPET 575 Management Of Technology

Week 1

An Overview of Management, Technology and Strategy

Fall 2015

A Specialty Course Master of Science in Technology

Industrial Technology/Manufacturing & IT/Advanced Computer Applications Tracks

Purdue University Fort Wayne CampusPaul I-Hai Lin, Professor of Electrical and Computer Engineering

Technology

http://www.etcs.ipfw.edu/~lin

Text book: 1Robert A. Burgelman, Clayton M. Christensen, and Steven C.

Wheelwright, Strategic Management of Technology and Innovation, 5th edition, McGraw-Hill, ISBN 0073381543, 2009.


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CPET 575 Course Description

CPET 575 Management of Technology, Class

3, Cr. 3This course introduces conceptual foundation and the

methods for managing technology and innovation.

Topics include technology and society; technology

development infrastructure; technology and strategy;

technology competitive analysis, forecasting and

assessment; techniques for dealing with risk, uncertainty

and change; tools and best practices for technology

lifecycle management; government, societal, and

international issues. A combination of lectures, reading,

presentation and reports, a variety of case studies and

group discussions is used.

http://www.etcs.ipfw.edu/~lin

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CPET 575 Reference Materials

IEEE Engineering Management Review, from IEEE Technology

Management Council,

http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?reload=true&pun

umber=46 (access through IPFW Library e-journal)

IEEE Transactions on Engineering Management, from IEEE

Technology Management Council,

http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=17

(access through IPFW Library e-journal)

Engineering Management Journal,


IT Professional – Technology Solutions for the Enterprise, from

IEEE Computer Society,



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CPET 575 Reference Materials

MIT Technology Review (access through IPFW Library e-

journal), www.technologyreview.com

MIT Sloan Management Review, www.sloanreview.mit.edu

Harvard Business Review (access through IPFW Library e-

journal), www.harvard,.edu/HBR

Business Week, http://www.businessweek.com/index.html

The Wall Street Journal, http://online.wsj.com/public/us

Forbes, http://www.forbes.com/lists/

Fortune, http://money.cnn.com/magazines/fortune/

Others (IPFW e-Journal access)

http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?reload=true&punumber=46




http://www.technologyreview.com/

http://www.sloanreview.mit.edu/

http://www.harvard,.edu/HBR

http://www.businessweek.com/index.html

http://online.wsj.com/public/us

http://www.forbes.com/lists/

http://money.cnn.com/magazines/fortune/

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CPET 575 Class Activities, Expectation,

Grading The class format will be 3-hour lecture/discussion/case

presentation

Active student participations: class discussion,

discussion forum, conference webinars, new technology

and company profiles research etc

Assignments

Case Studies

Projects


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An Overview

of

Technology, Management and Strategy

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An Overview

Technology

Innovation

Technology Management

Strategy

History of Technology


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Technology: Definitions

Terms Defined in Webster’s

New Collegiate Dictionary

• Technology

Systematic treatment of a

technical method of achieving a

practical purpose

The totality of the means

employed to provide objects

necessary for human substance

and comfort

Internet Technology

Networking Technology

Computer Technology

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Technology – Other Definitions

“Four Meanings of Technology,” Science,

Technology, and Society, by Robert E. McGinn,

Stanford University, 1990, Prentice Hall• Technology as Technics

• Technology as Technology

• Technology as a Form of Human Cultural Activity

• Technology as a Total Societal Enterprise


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Technology – Other Definitions Science, Technology, and Society program – Division of

Social and Economic Sciences, National Science

Foundation,

http://www.nsf.gov/funding/pgm_summ.jsp?pims_id=5324:

“The Science, Technology, and Society (STS) program

supports research that uses historical, philosophical, and

social scientific methods to investigate the intellectual,

material, and social facets of the scientific, technological,

engineering and mathematical (STEM) disciplines. It

encompasses a broad spectrum of STS topics including

interdisciplinary studies of ethics, equity, governance, and

policy issues that are closely related to STEM disciplines,

including medical science.”

http://www.nsf.gov/funding/pgm_summ.jsp?pims_id=5324

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Technology – from Wikipedia, http://en.wikipedia.org/wiki/Technology : ”Technology (from Greek

τέχνη, techne, "art, skill, cunning of hand"; and -λογία, -logia[3])

is the collection of techniques, methods or processes used in

the production of goods or services or in the accomplishment

of objectives, such as scientific investigation. Technology can

be the knowledge of techniques, processes, etc. or it can be

embedded in machines, computers, devices and factories,

which can be operated by individuals without detailed

knowledge of the workings of such things.”


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Technology1 – refers to the theoretical and practical

knowledge, skills, and artifacts that can be used to

develop products and services as well as their

production and delivery system.

Technology1 can be embodied in people, materials,

cognitive and physical processes, plant, equipment, and

tools.

Page 2, of 1Robert A. Burgelman, Clayton M. Christensen, and Steven C. Wheelwright, Strategic Management of Technology and Innovation, 5th edition, McGraw-Hill, ISBN 0073381543, 2009.

http://en.wikipedia.org/wiki/Technology

https://en.wikipedia.org/wiki/Ancient_Greek

https://en.wiktionary.org/wiki/-logia

https://en.wikipedia.org/wiki/Technology#cite_note-Liddell_1980-3

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Technology2

1. Sustaining the Private Corporation

2. Source of Personal Identity

3. Social Integration and Stratification

2Science, Technology, and Society, by Robert E. McGinn, Stanford

University, 1990, Prentice Hall


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Innovation

Merriam-Webster, http://www.merriam-

webster.com/dictionary/innovation

• The introduction of something new;

• A new idea, method, or device (Novelty)

Innovative ideas, products, business, technology

The Top Five Most Innovative Tech Projects, 2014,

Forbes,

http://www.forbes.com/sites/jaymcgregor/2014/06/26/bud

get-driverless-cars-and-glow-in-the-dark-trees-the-top-

five-most-innovative-tech-projects-of-2014-so-far/

• SCiO molecular scanner, Driverless car, Glow in

the dark trees, AnkiDrive, PocketScan

http://www.merriam-webster.com/dictionary/innovation

http://www.forbes.com/sites/jaymcgregor/2014/06/26/budget-driverless-cars-and-glow-in-the-dark-trees-the-top-five-most-innovative-tech-projects-of-2014-so-far/

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The Industrial Revolution – First Phase

Industrial Revolution,

https://en.wikipedia.org/wiki/Industrial_Revolution

• Began in Britain in the late 18th ecntury

• Important technological developments: Textiles, Steam

Power, Iron Making

“ … The Industrial Revolution – the name given to

movement in which machines changed people’s way of

life as well as their methods of manufacture,” Lewis

Hackett, 1992, Industrialization: The First Phase,

http://history-world.org/Industrial%20Intro.htm

• (1) the Invention of machines to do the work of hand tools;

• (2) the use of steam, and later of other kinds of power, in place

of the muscles of human beings and of animals; and

• (3) the adoption of the factory system


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The Second Industrial Revolution: 1840 – 1860

From Wikipedia “ The Second Industrial Revolution, also

known as the Technological Revolution, was a phase of

the larger Industrial Revolution corresponding to the

latter half of 19th century, sometimes between 1840 and

1860 until World War I. It is considered to have begun

around the time of the introduction of Bessemer steel in

the 1850s and culminated in early factory electrification,

mass production and the production line.”

Characterized by the build out of railroads, large-scale

iron and steel production, wide spread use of machinery,

greatly increased use of steam power, use of oil,

beginning of electricity and by electrical communications.

https://en.wikipedia.org/wiki/Industrial_Revolution

http://history-world.org/Industrial Intro.htm

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The Third Industrial Revolution

Third Industrial Revolution,

https://en.wikipedia.org/wiki/Third_industrial_revolution

• Digital Revolution

The Third Industrial Revolution, April 21, 2012, The

Economist, http://www.economist.com/node/21553017 :

• “The digitization of manufacturing will transform the way goods

are made – and changes the politics of jobs too. ..

• A number of remarkable technologies are converging: clever

software, novel materials, more dexterous robots, new

processes (notably three-dimensional printing) and a whole

range of web-based services.”


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4th Industrial Revolution

Project of the Future – 4th Industrial Revolution (Internet of

Things)

• Industry 4.0, Federal Ministry of Education and Research,

http://www.bmbf.de/en/19955.php

Smart Factory – the next Industrial Revolution,

https://www.stratfor.com/analysis/smart-factories-next-industrial-

revolution

• The interconnection of devices – the Internet of Things – will

become more widely used in industry and manufacturing

Industry 4.0 Challenges and Solutions for Digital

Transformation and Use of Exponential Technologies,

http://www2.deloitte.com/content/dam/Deloitte/ch/Documents/manuf

acturing/ch-en-manufacturing-industry-4-0-24102014.pdf

https://en.wikipedia.org/wiki/Third_industrial_revolution

http://www.economist.com/node/21553017

http://www.bmbf.de/en/19955.php

https://www.stratfor.com/analysis/smart-factories-next-industrial-revolution

http://www2.deloitte.com/content/dam/Deloitte/ch/Documents/manufacturing/ch-en-manufacturing-industry-4-0-24102014.pdf

http://www2.deloitte.com/content/dam/Deloitte/ch/Documents/manufacturing/ch-en-manufacturing-industry-4-0-24102014.pdf

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Management – Definitions

“Management” defined in the Webster’s New

Collegiate Dictionary

• The act or art of managing

• The conducting or supervising of something (as a

business)

• The collective body of those who manage or direct an

enterprise


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Strategy – Definitions

“Strategy” defined in the Webster’s New

Collegiate Dictionary:

• The science and art of employing the political,

economic, psychological, and military forces of a

nation or group of nations to afford the maximum

support to adopted policies in peace or war

• The science and art of military command exercised to

meet the enemy in combat under advantageous

conditions

• A careful plan or method

• The art of devising or employing plans or stratagems

toward a goal

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History of Technology3

Technology in Archaeology

• Material technologies (stone tools, wood, pottery,

copper, bronze, iron <steel>)

• Agriculture technologies

• Information technologies (cave art, Venus figures,

writing)

• Energy technologies (fire, irrigation, sailing ships,

wheeled vehicles)

3 Fredick Betz, Managing Technology Innovation, 2nd, John Wiley &

Sons, Inc., 2003


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Transportation Technology

• Horse, wheeled vehicles

• Ship, stream boat,

submarines

• railroads, steam

locomotive,

• Cars, trucks

• Air planes, rocket

Energy Technology

• Man power

• Animal power

• Wind power

• Coal, steam power

• Fossil fuel power


Sons, Inc., 2003

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Technology – Military Conflicts

• Ancient warfare (weapons and armor; clubs, spears, knifes,

bow and arrows)

• Medieval warfare (military tactics, cavalry-based forces)

• Gun power warfare (first developed in Song Dynasty, 960 –

1279, China)

• Industrial warfare (mass-conscripted armies; rapid

transportation – railroads, sea, and air; telegraph and

wireless communications)

• Modern warfare (variety of tools and methods available to

modern battlefield commanders)


Sons, Inc., 2003


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Management in Today’s High Tech

Business Environment4

Activities

• Cluster around projects with team efforts that span

organizational lines involving a broad spectrum of

Personnel

Support groups

Subcontractors

Vendors

Partners

Government agencies and

Customer organizations

4Han J. Thamhain, Management of Technology, John Wiley & Sons, Inc.,

ISBN 978-0-471-41551-0, 2005

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Critical Needs for Success in High-Tech Business

• Effective linkages, cooperation, and alliances among

various organizational functions are critical for proper

communication, decision making, and control.

Requires

• Sophisticated teamwork

• The ability to manage across functional lines with little or

no formal authority

• Dealing effectively with resource sharing

• Multiple reporting relationships and accountabilities


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Characteristics and Challenges of Today’s

Technology-Based Business

• High task complexities, risks, and uncertainties

• Fast-changing markets, technology, regulations

• Intense competition, open global markets

• Resource constraint, tough performance

requirements

• Tight, end-date-driven schedules


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Technology-Based Business (cont.)

• Total project life-cycle considerations

• Complex organizations and cross-functional linkages

• Joint venture, alliance and partnerships; need for

dealing with different organizational cultures and

values

• Complex business process and stakeholder

communities


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Technology-Based Business (cont.)

• Need for continuous improvements, upgrades, and

enhancements

• Need for sophisticated people skills, ability to deal

with organizational conflict, power, and policies

• Virtual organizations, markets, and support systems

• Increasing impact of IT and e-business


ISBN 978-0-471-41551-0, 2005

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Resulting in demand for

• High market responsiveness

• Fast developments

• Low cost

• High levels of creativity, innovation, and efficiency


ISBN 978-0-471-41551-0, 2005


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Scope of Management of Technology (MOT)

and Focus4

Different meaning to different people

Scope is very broad and diverse

• MOT relates to specific research and development of

new concepts

• MOT means engineering design and development,

manufacturing, or operations management

Over the last 20 to 30 years

• Management literature has shifted its technology

focus from R&D to new product development and

then to product enhancement.


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and Focus4

In more current times, it emphasis has been

gravitating toward

• Market development and

• E-commerce

MOT includes the

• Planning

• Organizing coordinating, and Integrating of all the

resources needed to achieve the enterprise-specific

goals and objectives


ISBN 978-0-471-41551-0, 2005


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and Focus4

MOT vs. other established fields of organization

and management

• Special knowledge and skill requirements for

applying the technology, including organizing and

coordinating technology resources, and directing the

people involved with it.

MOT Definition – a broad sense

• The art and science of creating value by using

technology together with other resources of an

organization


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and Focus4

MOT should not be confined to

• R&D,

• Engineering, or

• Scientific work, but

Includes many other facets of the enterprise and

its environment


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Definition of Management of Technology

The National Research Council – National Academies.org,

1987, http://sites.nationalacademies.org/NRC/index.htm:

“Management of technology links engineering, science, and

management disciplines to plan, to develop, and to implement

technological capabilities to shape and accomplish the

strategic and operational goals of an organization.”

The National Academies of Sciences, Engineering, and

Medicine,

http://www.nationalacademies.org/about/index.html

http://sites.nationalacademies.org/NRC/index.htm

http://www.nationalacademies.org/about/index.html

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A Formal Definition – MOT4

MOT involves• The management of engineering, natural science, and social

science

• Administrative science in planning, decision making,

development, and implementation of technology

• Operational processes, tools and techniques, and people who

make it all happen

• Guidance and leadership aim toward the development of

products and services

• Managing many interdisciplinary components and managing

their integration into a whole system

• Managing the system


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A Formal Definition – MOT4

MOT focuses on

• The development of operational capabilities such as

manufacturing, distribution, and field services

MOT is influenced by

• Business strategy

• Organizational culture, and

• The business environment, and vice versa


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All About Technology

Technology Development

Processes

• Identification of a specific

need

• Assessment

• Strategy, Funding, Plan,

etc.

• Design

• Prototyping

• Transfer (Intellectual

property)

• Commercialization

Production

Marketing

Sales

Distribution

Customer support

Maintenance

• User/customer/consumer


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Classification of Technology4

State-of-the Art

Technologies

• Technologies equal or

superior to competitive

offering

Proprietary

Technologies

• Technologies protected

by patents, and so forth

Known Technologies

• Technologies common to

many companies but

used uniquely

Core Technologies

• Technologies essential

for maintaining

competitive positions


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Leveraging

Technologies

• Technologies that

support several products

or classes of products

Supporting

Technologies

• Technologies that

support core

technologies

Pacing Technologies

• Technologies that control

the product or service

development

Emerging Technologies

• Technologies under

consideration for future

application


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Scouting Technologies

• Technologies tracked for potential applications

Unknown Technologies

• Technologies currently unknown, but believed of

considerable benefits


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Other Classifications of Technology

Sustaining Technology

• Improving on existing technologies, most often in

the areas of performance

• Compatible with existing standards and address

current market needs

• Examples: Microsoft Windows Operating Systems –

Personal Computers

Windows 3.0, 3.1

Windows 95, 98

Windows 2000, XP, Vista

Windows 7

Windows 8, 10


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Other Classifications of Technology (cont.)

Disruptive Technology

• Andy Grove, Intel co-founder, define its as “… a

time in the life of a business when its fundamentals

are about to change”

• The needs of the customer can no longer met

inside the current technology parameters

• Radical change at a system level with paradigm-

shifting innovations

• Huge positive impact on the economy, new

categories of products and services, new

companies and jobs

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Disruptive Technology – Examples

• Transistor-based devices

Battery-powered transistor radio introduced by Sony in 1950

Over time, the transistor radio became cheaper, smaller, and better quality of sound

• Integrated Circuits

Microprocessor (MOS-based) in 1970’s

Microcontrollers

Intel CPUs for PCs


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• Personal Computer

Disruptive to

• The mini-computer industry (DEC, Wang

Computer)

• The companies making terminal connect

hardware

• Altered paradigm: a computer on every desk vs.

a computer in every office

• Storage Devices

Magnetic memory/RAM/DRAM

Floppy disk/Zip Disk/Flash Drive

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• Internet & Mobile Technologies

Computer-computer communications

Collaboration, resource sharing

Information sharing/publishing

E-learning and education

Advertisement

Business automation

Internet and Cellular Communications

E-business/E-commerce

Social networking

Smartphone and Mobile Computing

Cloud computing

etc


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Specific Applications Aerospace Technology

Biological Technology

Business Technology

Computer Technology

Energy Technology

Information Technology

Material Technology

Military Technology

Medical Technology

Transportation Technology

Vehicular Technology

Nanotechnology

etc

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The Coverage Topics of Management of

Technology Part I, “Integrating Technology and Strategy – A

General Management Perspective”

Part II, “Design and Implementation of Technology Strategy: An Evolutionary Perspective”

Part III, “Enactment of Technology Strategy –Developing a Firm’s Innovative Capabilities”

Part IV, “Enactment of Technology Strategy –Creating and Implementing a Development Strategy”

Part V, “Conclusion: Innovation Challenges in Established Firms”


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Conclusion