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Prentice Hall, Inc. © 2006 12-1
STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
CHAPTER 12 Strategic Issues in Managing
Technology and Innovation
Prentice Hall, Inc. © 2006 12-2
Executive Fear over loss of Innovation
Prentice Hall, Inc. © 2006 12-3
Technology and Innovation
The Role of Management –
–Innovation–Management of technology
Prentice Hall, Inc. © 2006 12-4
Technology and Innovation
Environmental Scanning –
–External Scanning•New developments in technology
Prentice Hall, Inc. © 2006 12-5
Technology and Innovation
Impact of Stakeholders on Innovation –
–Lead Users Process•Lay the foundation•Determine the trends•Identify lead users•Develop the breakthrough
Prentice Hall, Inc. © 2006 12-6
Technology and Innovation
Impact of Stakeholders on Innovation –
–Market Research–New Product Acquisition
Prentice Hall, Inc. © 2006 12-7
Technology and Innovation
Environmental Scanning –
–Internal Scanning•Resource development•Experimentation•Risk taking•New ideas•Autonomous project teams
Prentice Hall, Inc. © 2006 12-8
Technology and Innovation
Environmental Scanning –
–Resource Allocation Issues•R&D intensity•Time to market issues
Prentice Hall, Inc. © 2006 12-9
Product & Process R&D Innovation Life Cycle
Prentice Hall, Inc. © 2006 12-10
Technology and Innovation
Outsourcing Technology –
–Low significant to competitive advantage–Supplier has proprietary technology–Supplier’s better–Strategy based on design not development–Requires special expertise–Requires new people and resources
Prentice Hall, Inc. © 2006 12-11
Technology and Innovation
Intellectual property –
–Special knowledge used in new product or process
Prentice Hall, Inc. © 2006 12-12
Technology and Innovation
Technological Competence
–Absorptive capacity–Technological competence
Prentice Hall, Inc. © 2006 12-13
Categories of Innovation
Prentice Hall, Inc. © 2006 12-14
Product/Market Evolution Portfolio Matrix
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Stages of New Product Development
Prentice Hall, Inc. © 2006 12-16
Technology & Innovation
Innovative Organizations –
–Positive attitude toward change–Decentralized decision making–Informal structure–Interconnectedness–Organizational slack–Large size–System openness
Prentice Hall, Inc. © 2006 12-17
Designs for Corporate Entrepreneurship
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Evaluation and Control
Techniques –
–Stage-gate process–House of quality–Index of R&D effectiveness
Prentice Hall, Inc. © 2006 12-19
House of Quality
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