1-1Management of Technology

IntroductionMOT

1-2Management of Technology

Porter’s Five Forces Threat of New Entrants Bargaining Power of

Suppliers Bargaining Power of Buyers Threat of Substitute Products Rivalry Among Competing

Firms in the Industry

1-3Management of Technology

Core Competency

Are Rare Are Valuable Are Costly to Imitate Are Non-substitutable

1-4Management of Technology

MOT -- Areas of Study

Technology Strategy Technology Forecasting Bringing Technology to Market Managing Research and

Development R&D Project Management Managing Technical Personnel New Product Development

1-5Management of Technology

Issues and Problems

Acquire, develop,and allocate technological resources– Competitiveness– Integrated with corporate strategy

Develop and exploit capacity for innovation– Assess capability– Improve or use leverage

1-6Management of Technology

MOT -- Key Concepts

Inventions and discoveries: “We discover what before existed, though to us unknown; we invented what did not before exist.”Basic research: Activities involved in generating new knowledge about physical, biological, and social phenomena.

Applied research: To solve particular technical problems.

1-7Management of Technology

MOT -- Key Concepts

Technology: Theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as their production and delivery systems. Technology can beembodied in people, materials, cognitive and physical processes, plant equipment, and tools.

1-8Management of Technology

MOT -- Key Concepts

Innovation: The use of new knowledge to offer a new product or service that customers want.

Porter: “a new way of doing things that is commercialized”

The new knowledge can be technological or market related. (Federal Express’s one-day delivery service)

1-9Management of Technology

MOT -- Key ConceptsTechnological Innovation: Technology based (disposal diapers) or facilitated by new technologies (banking system facilitated by electronic data processing). It can be incremental (mountain bike) or radical (wireless communication).

•Technology Innovation - Can you think of examples?

The criteria for success of technological innovation is commercial rather than technical.

1-10Management of Technology

Strategy without capabilities has no force, capabilities without

strategy remain aimless.

1-11Management of Technology

Technology and Strategy

•What is Strategy?Actual (Positive) vs. Optimal

(Normative)•Technology Strategy

- Product-Market Strategy (Exhibit 2; pg. 7)

- Technology Portfolio (Exhibits 3 and 4)

> Importance and Position (pg. 8)

> Business Portfolio (pg. 9)

1-12Management of Technology

Technology and Strategy

•Technology and Technology Innovation•Technology Strategy

- Product-Market Strategy

- Technology Portfolio> Importance and

Position> Business Portfolio

1-13Management of Technology

Exhibit 2 The Product/Technology Matrix

Product A(*)

Product B

Product N

Tech. 1

Tech. 2

Tech. 3

…

Tech. k

….

1-14Management of Technology

Exhibit 3

Developing the Technology Portfolio

HighLow

Relative Technology Position

High

Low

Tech

nolo

gy

Imp

ort

an

ce

Bet Draw

Cash In

Fold

1-15Management of Technology

High Low

Competitive Position

High

LowAtt

ract

ivene

ss

A B

Business

Exhibit 4

1-16Management of Technology

High Low

Position

High

LowImp

ort

ance B A

Technology

1-17Management of Technology

Technology - Market Portfolio

•Sony walkman•Miniaturization•Rapid new product introduction•Other examples?

1-18Management of Technology

Technology Life Cycle

•Emerging Technologies•Pacing Technologies•Key Technologies•Base Technologies

1-19Management of Technology

Technology Forecasting

•Technological progress function

(S-curves)•Trend extrapolation•The Delphi method•Scenario development

Systematic data gathering is essential !!

1-20Management of Technology

Why Technology Forecasts Often Fail

All potential uses not yet discovered Complementary innovations not yet

developed Systems integration (no system yet) Problem-solving myopia (new

applications overlooked) Passing the “needs test”

(technologically and economically better)

Competing with the past

1-21Management of Technology

Innovative Capability Assessment

•Innovative Capability Audit- Business unit (pg. 11)

Timing of market entryTechnological

leadership/followershipScope and rate of

innovation- Corporate unit (pg. 13)- Frames of reference

1-22Management of Technology

The Art of High-Technology Management

•Themes of Success- Business focus

Closely Related ProductsFocused R&DConsistent Priorities

- AdaptabilityOrganizational Flexibility

1-23Management of Technology

Themes of Success

- Organizational Cohesion•Communication•Job rotation•Integration of roles•Long-term employment

- Entrepreneurial Culture•Small divisions•Variety of fund channels•Tolerance of failure

1-24Management of Technology

Themes of Success

- Sense of Integrity•Self-understanding

- Hands-on Top Management

1-25Management of Technology

Paradox of High - Technology

Management- Business Focus- Organizational Cohesion- Sense of Integrity- Adaptability- Entrepreneurial Culture- Hands-On management

1-26Management of Technology

Paradox of High - Technology Management

- Stability vs. Change•Balance Implemented in Many Ways

- Examination of Mature Products

- Managing Ambivalence