Download - 2 Intro to Technology Management
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1Management of Technology
Management of Technology
Introduction to Technology and
Innovation Management
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2Management of Technology
Contents
1.Terms and Definitions
2.Technology and Strategy
3. Assessing Innovative Capabilities
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3Management of Technology
Terms and Definitions
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4Management of Technology
Definition of Terms
Invention versus discovery:
We discover what before existed, though to usunknown; we invent what did not before exist. Webster
Basic versus applied research:
Basic research refers to activities involved ingenerating new knowledge; applied research isgeared to solving particular technological problems
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5Management of Technology
Definition of Terms
Technology:
This refers to the theoretical and practicalknowledge, skills and artifacts that can be used todevelop products and services as well as their
production and delivery systems. Technology canbe embodied in people, materials, cognitive andphysical processes, plant, equipment and tools
Technological Innovation:
This can be technology-based or facilitated bytechnology. We define successful technologicalinnovation as that which returns the originalinvestment plus some additional returns
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6Management of Technology
Definition of Terms
Innovation process:
This can be defined as the combined activitiesleading to new, marketable products and servicesand/or new production and delivery systems
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Definition of Terms
Types of technological innovation:
Incremental innovation: adaptation, refinement andenhancement of existing products or services
Radical innovation: entirely new product andservice categories
Architectural innovation: reconfigurations of thesystems or components that constitute the product
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Definition of Terms
Network effects (network externalities):
Value depends on number of users (Strong getstronger, weak get weaker Winner take allmarkets)
Positive feedback
Telefon, Internet,...
Indirect network effects
Software
Expectations management
Competitive pre-announcements
Google permanent beta
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9Management of Technology
Definition of Terms
Lock-in and switching costs:
Costs necessary to switch from oneproduct/technology to another one
Example: Stereos and LPsCostly switch to CDs
Systems lock-in: durable complements
Hardware, software, and wetware
Individual, organizational, and societal
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10Management of Technology
Technology and Strategy
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11Management of Technology
Technology and Strategy
Porters 5-forces model
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12Management of Technology
Technology and Strategy
Porters generic strategies concept is awidely used framework for classifyingcompetitive strategies. The generic strategiesare:
Industrywide differentiation
Focused differentiation
Industrywide cost leadership
Focused cost leadership
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13Management of Technology
Technology and StrategyGeneric strategy
Overall cost
leadership
Overall differentiation Focus-segment cost
leadership
Focus-segment
differentiation
Technological policies
Product technologicalchange
Product development toreduce product costby loweringmaterials content,facilitating ease ofmanufacture,simplifyinglogisticalrequirements, etc.
Product development toenhance productquality, features,deliverability, orswitching costs
Product development todesign only enoughperformance for thesegment's needs
Product design to meetexactly the needsof the particularbusiness segmentapplication
Process technologicalchange
Learning curve processimprovementProcessdevelopment to
enhance economiesof scale
Process development tosupport hightolerances, greaterquality control,
more reliablescheduling, fasterresponse time toorders, and other
dimensions that improvethe ability to perform
Process development totune productionand deliverysystem to segment
needs in order tolower cost
Process development totune the productionand deliverysystem to segment
need in order toimproveperformance
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14Management of Technology
Technology and Strategy
Technology and Product-Market Strategy
A firms strategy is expressed in the products andservices it brings to market. One way to get at theintegration of a firms technology and product-
market strategy is:
Decompose each product or service into itsconstituting technologies and assess the relativestrengththe degree of distinctive competence
the firm has with respect to that technology
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15Management of Technology
Technology and Strategy
Technology Portfolio
Harris, Shaw, and Somers suggest:
Once various technologies have been identified,they can be classified in terms of their importancefor competitive advantage
Next, the firms position relative to its competitorscan be assessed
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16Management of Technology
Technology and Strategy
Bet Draw
Cash in Fold
High
Low
Techn
ologyimpo
rtance
Relative technology position
High Low
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17Management of Technology
Personal Introduction
Technology & Business Portfolio
Couples Technology portfolio with McKinsey (BCG)framework for business portfolio based oncompetitive position and attractiveness...
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18Management of Technology
Technology and Strategy
High
Low
Attrativ
eness
Competitive position
High Low
High
Low
Techn
ologyimportance
Relative technology position
High Low
A A
B
B
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Personal Introduction
Technology Forecasting
It is the capacity to perform systematictechnological forecasting. Some useful techniquesfor forecasting are:
Technological progress functions (S-curves)
Trend extrapolation
The Delphi method
Scenario development
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Assessing Innovative Capabilities
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21Management of Technology
Assessment
Helps general manager assess to potential ofexisting innovative capabilities:
How has the firm been innovative inproduct/service offerings and/orproductin/delivery systems?
How good is the fit between current business andcorporate strategies and innovative capabilities?
What are the needs in terms of innovativecapabilities to support long-term business andcorporate competitive strategies?
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22Management of Technology
Assessment
Innovative capabilities:
Comprehensive set of characteristics of anorganization that facilitate and support innovationstrategies
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23Management of Technology
Business Unit Level Audit
This framework measures five important categoriesof variables that influence the innovation strategiesof a business:
Resources available for innovative activity
Capacity to understand competitors strategiesand industry evolution with respect to innovation
Capacity to understand technologicaldevelopments relevant to the business unit
Structural and cultural context of the businessunit affecting internal entrepreneurial behavior
Strategic management capacity to deal withinternal entrepreneurial initiatives
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24Management of Technology
Business Unit Level Audit
Business unit
innovative
strategy
Resource
availability
Understanding
competitors
innovative
strategies and
industry evolution
Understandingbusiness unit
technological
environment
Business unit
structural and
cultural context
Business unit
strategic
management
capacity
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25Management of Technology
Corporate Level Audit
At this level, the audit investigates whether andhow the innovative capabilities of the corporationare larger than the sum of those at the individual
business units. Five key categories are: Resource availability and allocation
Capacity to understand multi-industrycompetitive strategies and evolution
Capacity to understand technologicaldevelopments
Corporate structural and cultural context
Corporate strategic management capability
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26Management of Technology
Corporate Level Audit
Corporate
innovative
strategies
Resource
availability
and allocation
Understanding
competitors
innovativestrategies and
multi-industry
evolution
Understanding
corporatetechnological
environment
Corporate structural
and cultural context
Corporate strategic
management capacity