Strategic Technology Management

Weeks 10-13

Overview Lectures 1-4 • Technology and Innovation Management• Business Strategy Overview: Theory, holistic approaches to planning• Technology audit• Technology management frameworks• Introduction to assignment 1

Lectures 5-9 • Identification of innovations and emerging technologies• Selection of technologies and innovations to be pursued• Acquisition of technologies• Exploitation of technologies and innovations – internal• Assignment 1 group report due teaching week 9• Introduction to assignment 2

Lectures 10-13 Assignment 1 viva week 10

• Protection of technologies and innovations • Exploitation of technologies and innovations – external, B2B Marketing etc• Strategic Technology Management – planning, strategy and policy• Strategic Technology Management Tools and Techniques

– Technology Road Mapping – an environmental case study, – Scenario Planning, – Technology Intelligence Assignment 2 due teaching week 15

TM Tools and ApplicationsActivities\Tools

Patent analysis

Portfolio analysis

Road mapping

S-Curve Stage gate Value analysis

Acquisition

* * * *Exploitation

* *Identification * *Learning

* *Protection

* *Selection

* *

What influences a firm’s ability to innovate?

• Absorptive capacity is the ability of a firm to identify, assimilate and exploit knowledge from the external environment

Cohen and Levinthal (1989)• Network involvement. The impact of networks varies by industrial

sector (Freel, 2003); Different geographies of networks are important for different types of innovation– Local networks influence process innovation– National networks have a positive impact on service innovation– International networks are important for product innovation

(Abrei, 2008)

What influences a firm’s ability to continue innovating?

Learning

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

Learning and exploitation

• Our failure to learn can influence our ability to exploit

• Consider the case of Nano Materials and Production technologies (NMP) in Europe

Investment is ok

Source: Oxford research AS and Austria Institute for SMEs: Ex-post evaluation of NMP (FP 6), 2010

But we fail to exploit

Source: Oxford research AS and Austria Institute for SMEs:Ex-post evaluation of NMP (FP 6), 2010

Why do you think Europe fails to exploit its IP?

• Clue – think about theoretical models – what is required for successful innovation?

Why?• Hurdles that hamper the introduction of NMP in the EU are

widespread:• - limited know-how in the companies (SMEs) and understanding in

the public• - low technology transfer between academia and industry• - legal framework (bureaucracy, no specific support on

national/regional level)• - IPR issues (patent costs etc.)• - low private equity financing (VC etc.)• - high risk research• - high development costs• - complex funding programmes• - limited skilled labour with a multidisciplinary scientific background

etc.

Types of Exploitation

• Business to Customer (B2C)

• Business to Business (B2B)

• Business to other ( public body, charity, Not for profit etc)

Regarding Nano Materials and Production technologies (NMP), which type of exploitation is relevant?

B2B Marketing via online networks

• Linked IN - http://uk.linkedin.com/• Cambridge Network -

http://www.cambridgenetwork.co.uk/home/• Business Forum -

http://www.ukbusinessforums.co.uk/forums/• Knowledge Transfer Networks-

https://connect.innovateuk.org/web/guest/home• Facebook • Twitter

Exercise

• Explore the networks mentioned. How do they differ?

• Pick an online B2B website

• Join the website

• Search for technology-related groups

• Join a relevant discussion group / forum

Exploitation continued

• How do people find your technologies?

• Technology Intelligence

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

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Exploitation continued

• How do you ensure you keep abreast of what customers want / need?

Lead users (Von Hippel)

• See the active use of lead users at 3M

• http://www.youtube.com/watch?v=tNKrX1QxN6U&list=PLD4C0E9AEDF085119

Brokering

• The activities of a third party – bringing together the inventor with the exploiter

• Example = Innovation Relay Centre (IRC)• http://www.south-norfolk.gov.uk/business/1499.asp• http://www.theknowledgenetwork.co.uk/

directorydetails.asp?no=148• See overview of IRC network in ‘supplementary reading’• Example = Enterprise Europe• See: http://www.enterprise-europe-

network.ec.europa.eu/index_en.htm

• Other private brokers exist

Recommended reading

• Case 6 _Lipitor: The World’s Best-selling Drug (2008), Pages 400-404, Afua (2009)

• How did the regulatory environment and the company’s lack of access to marketing channels impact its decision to externally exploit its new drug?

What happens when we have a buyer for our technology?

The Due Diligence process

Due Diligence process (buying and selling technologies)

• Needs to involve the following:– Agree a provisional price and terms– Agree a DD period

• Define the technology and associated assets/resources, including third party dependencies

• Review employment terms and conditions • Review outstanding litigation / ownership• Review major contracts and orders • Review IT systems and other technology • Review environmental issues • Review commercial management including customer service,

research and development, and marketing (e.g., life and sales projections)

– Revise or amend the price– Finalise terms

Scenario planning

• “Scenarios are internally consistent descriptions of alternative possible futures, based upon different assumptions and interpretations of the driving forces of change.”

Ringland, G., (2006), Scenario Planning, second edition, John Wiley & Sons, Chichester.

Scenario planning – the process

1. Forecasting techniques are used to identify critical indicators

2. Reasons for behaviour of indicators are examined (regression)

3. Future events which impact on indicators are identified

4. Best , worst and most likely scenarios are planned

5. Impact of each is assessed on the business

Forecasting

• 3 main types of forecasting– Direct forecasting– Correlative forecasting– Structural forecasting

Direct forecasting

• Involves expert opinion (e.g. Delphi survey, nominal group approaches)

• Nature-time series analysis

• Trend extrapolation

• Growth curves

• Life Cycle substitution

Correlative forecasting

• Scenarios

• Lead-lag indicators

• Cross impact studies

• Technical progress studies

• Functions analogies

Structural forecasting

• Causal models

• Regression analysis

• Relevance trees

• Mission flow diagrams

• Morphology simulation models

• Deterministic stochastic gaming

Scenario planning

• Marketers expressing the future: Scenario planning for marketing action by Pattinson, Hugh M.; Sood, Suresh C.. Futures, May 2010, Vol. 42 Issue: Number 4 p417-426,

• Strategic Planning of Future Products with Product Scenarios, by Grienitz, V., ; Blume, V., International Journal of Innovation and Technology Management, September 2010, Vol. 7 Issue: Number 3 p237-246, 10p

• Renewable energy technology portfolio planning with scenario analysis: A case study for Taiwan by Chen, Tser-Yieth; Yu, Oliver S.; Hsu, George Jyh-yih; Hsu, Fang-Ming; Sung, Wei-Nown. Energy Policy, August 2009

Exploitation and Standardization

Tushman-Rosenkopf Technology Life Cycle Model

• Uncertainty, complexity and stage of evolution dictate the degree to which a firm can influence an industry standard

• Technological discontinuity (disruptive innovation) leads to an ‘era of ferment ‘ (uncertainty) leads to a dominant design leads to an era of incremental change

• This model suggest that technological progress depends on factors other than those internal to the technology.

Exercise - Consider the case of electric cars

• Read the supplementary materials on electric cars

• What are the non-technological factors affecting the slow uptake of electric cars?

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

Exercise - Standards bodies

• Consider how the exploitation of new smart materials e.g., for smart clothing, might be affected by current standards.