Lect032414435fdents

© 2007 Thomson/South-Western. All rights reserved.© 2007 Thomson/South-Western. All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

P A R T O N EP A R T O N ELaying the FoundationLaying the Foundation

Management of Management of Technology and Technology and Innovation: Innovation: An OverviewAn Overview

ChapterChapter 11

© 2007 Thomson/South-Western. All rights reserved. 1–2

OverviewOverview

• Issues addressed in this chapter include:Issues addressed in this chapter include:

The significance of technology, innovation, and their The significance of technology, innovation, and their managementmanagement

The meaning of technologyThe meaning of technology

The process of managing technologyThe process of managing technology

The meaning of innovationThe meaning of innovation

The process of managing innovationThe process of managing innovation

The structure of this examination of the management The structure of this examination of the management of technology and innovationof technology and innovation


Opening CommentsOpening Comments

• Alan Greenspan (former Federal Reserve Chair) Alan Greenspan (former Federal Reserve Chair) described the latter half of the 1990s as a described the latter half of the 1990s as a pivotal period in American economic history.pivotal period in American economic history. New technologies that evolved from the cumulative New technologies that evolved from the cumulative

innovations of the past half century brought dramatic innovations of the past half century brought dramatic changes in the way goods and services are produced changes in the way goods and services are produced and distributed.and distributed.

Examples: Examples: Increasing use of the InternetIncreasing use of the Internet

A flood of startupsA flood of startups

Vast changes in production and distribution networksVast changes in production and distribution networks


Insourcing: The Other Side of the Insourcing: The Other Side of the Movement of Jobs to the U.S. Movement of Jobs to the U.S. • U.S. jobs created by foreign firms in the U.S. pay, on average, U.S. jobs created by foreign firms in the U.S. pay, on average,

19.1% more than what U.S. firms pay their employees.19.1% more than what U.S. firms pay their employees.

• U.S. subsidiaries of foreign companies employ a record-high 6.4 U.S. subsidiaries of foreign companies employ a record-high 6.4 million Americans.million Americans.

• New foreign direct investment in the United States more than New foreign direct investment in the United States more than doubled in 2003, to $82 billion, according to recent Department of doubled in 2003, to $82 billion, according to recent Department of Commerce figures.Commerce figures.

• 34% of jobs at U.S. subsidiaries are in manufacturing - more than 34% of jobs at U.S. subsidiaries are in manufacturing - more than double the proportion of manufacturing at all U.S. companies.double the proportion of manufacturing at all U.S. companies.

• During the past 15 years, manufacturing insourced jobs grew by During the past 15 years, manufacturing insourced jobs grew by 82%82%——at an annual rate of 5.5%at an annual rate of 5.5%——while manufacturing outsourced while manufacturing outsourced jobs grew by 23%, or at a 1.5% annual rate.jobs grew by 23%, or at a 1.5% annual rate.


Sources of Differences and SimilaritiesSources of Differences and Similarities

• Regulatory InstitutionsRegulatory Institutions The laws and regulations in a given countryThe laws and regulations in a given country

• Normative InstitutionsNormative Institutions The norms of various industries and professionsThe norms of various industries and professions

• Cognitive InstitutionsCognitive Institutions Influences that come from the broader society and Influences that come from the broader society and

shape an individual’s behaviorshape an individual’s behavior—most commonly, the —most commonly, the culture of a countryculture of a country


FIGURE 1.1FIGURE 1.1 Process to Be Managed—Discovery to Process to Be Managed—Discovery to ApplicationApplication


FIGURE 1.2FIGURE 1.2 Systems View of OrganizationsSystems View of Organizations


Technology (as defined in this text)Technology (as defined in this text)

• The practical implementation of learning and The practical implementation of learning and knowledge by individuals and organizations to knowledge by individuals and organizations to aid human endeavor.aid human endeavor.

• It is the knowledge, products, processes, tools, It is the knowledge, products, processes, tools, and systems used in the creation of goods or in and systems used in the creation of goods or in the provision of services.the provision of services.


FIGURE 1.3FIGURE 1.3 Areas Influencing the Management of Areas Influencing the Management of Technology Technology and Innovationand Innovation


Management of Technology (as Management of Technology (as defined in this text)defined in this text)• The linking of different disciplines to plan, The linking of different disciplines to plan,

develop, implement, monitor, and control develop, implement, monitor, and control technological capabilities to shape and technological capabilities to shape and accomplish the strategic objectives of the accomplish the strategic objectives of the organization.organization.


Cycle Encouraging MTICycle Encouraging MTI

Firms must focus ongreater efficiencyto maintain profits

Price Pressureto Lower Prices

More Customers

Better PricingInformation

Use Better Technology


Innovation Defined (Rubenstein)Innovation Defined (Rubenstein)

• The process whereby new and improved The process whereby new and improved products, processes, material, and services are products, processes, material, and services are developed and transferred to a plant and/or developed and transferred to a plant and/or market where they are appropriate.market where they are appropriate.

• Just-in-time (JIT) Inventory ManagementJust-in-time (JIT) Inventory Management A process innovation that ensures the inputs into a A process innovation that ensures the inputs into a

production process are there just as they are needed production process are there just as they are needed for the process.for the process.

Such a process innovation allows firms to save on Such a process innovation allows firms to save on storage and capital costs.storage and capital costs.


FIGURE 1.4FIGURE 1.4 Innovation CategoriesInnovation Categories


Management of Innovation DefinedManagement of Innovation Defined

• A comprehensive approach to managerial A comprehensive approach to managerial problem solving and action based on an problem solving and action based on an integrative problem solving framework, and an integrative problem solving framework, and an understanding of the linkages between understanding of the linkages between innovation streams, organizational teams, and innovation streams, organizational teams, and organization evolution.organization evolution.

It is about implementationIt is about implementation——managing politics, managing politics, control, and individual resistance to change.control, and individual resistance to change.

The manager is an architect/engineer, The manager is an architect/engineer, politician/network builder, and artist/scientistpolitician/network builder, and artist/scientist


The Process Of Managing InnovationThe Process Of Managing Innovation

• Managing the Innovation ProcessManaging the Innovation Process Separate funds for innovationSeparate funds for innovation Periodically review informal proposals using a group Periodically review informal proposals using a group

outside of line managementoutside of line management Provide clear direction on studies to be done and Provide clear direction on studies to be done and

follow-ups that are expectedfollow-ups that are expected Engage in boundary-spanning activities to learn from Engage in boundary-spanning activities to learn from

and to gain understanding of what others are doingand to gain understanding of what others are doing Set realistic expectationsSet realistic expectations Provide a supportive atmosphere for “debugging” and Provide a supportive atmosphere for “debugging” and

exploring variations as well as appropriate resources exploring variations as well as appropriate resources for maintenance and servicefor maintenance and service


Management of InnovationManagement of Innovation

• Characteristics of individual that enhance the Characteristics of individual that enhance the initiative that sparks innovation:initiative that sparks innovation:

Asking questions to identify problems and Asking questions to identify problems and opportunitiesopportunities

Learning new skillsLearning new skills

Taking risks and being proactiveTaking risks and being proactive

Aligning strong personal beliefs and values with the Aligning strong personal beliefs and values with the organization’s values and goalsorganization’s values and goals


FIGURE 1.5FIGURE 1.5 Cyclical Innovation Process ModelCyclical Innovation Process Model


Actions in the Management of Actions in the Management of TechnologyTechnology• Work with things already thereWork with things already there

• Maintain and/or upgrade products/processes Maintain and/or upgrade products/processes

• Manage and control of the knowledge, equipment, and processes in Manage and control of the knowledge, equipment, and processes in an organizationan organization

• Analyze whether or not knowledge, equipment, and processes are Analyze whether or not knowledge, equipment, and processes are up to date.up to date.

• Direct the acquisition and development of knowledge, skills, Direct the acquisition and development of knowledge, skills, processes, etc. to meet objectives and gain competitive advantage.processes, etc. to meet objectives and gain competitive advantage.

• Continually produce a successful technical productContinually produce a successful technical product

• It is about existing technology, continuous improvement, It is about existing technology, continuous improvement, optimizationoptimization


Actions in Management of InnovationActions in Management of Innovation

• MOT that encompasses MOI:MOT that encompasses MOI:

Requires fostering an environment where innovative thought and Requires fostering an environment where innovative thought and work are encouragedwork are encouraged

Includes identification, creation, and marketing of a new Includes identification, creation, and marketing of a new product/process/technologyproduct/process/technology

Is how we lead our company from existing process to something Is how we lead our company from existing process to something better and faster.better and faster.

Involves proactively searching for ways to better technical Involves proactively searching for ways to better technical products.products.

Manages the process of “invention+exploitation”Manages the process of “invention+exploitation”

Must encourage creative thinking and a willingness to take risksMust encourage creative thinking and a willingness to take risks


Strategic Management DefinedStrategic Management Defined

• The effort by a firm to analyze its environment The effort by a firm to analyze its environment and its own strengths and weaknesses and then and its own strengths and weaknesses and then consciously choose the competitive path it wants consciously choose the competitive path it wants to follow.to follow.

• Key Functions in the Strategy Process:Key Functions in the Strategy Process: PlanPlan ImplementImplement Control/EvaluateControl/Evaluate


FIGURE 1.6FIGURE 1.6

Organization of Organization of This BookThis Book


Managerial Guidelines:Managerial Guidelines:

• To be proactive rather than reactive a firm To be proactive rather than reactive a firm should:should: Designate clear technology leaders—individuals who Designate clear technology leaders—individuals who

champion change.champion change. Know how the processes can work to help and to Know how the processes can work to help and to

hinder the development of new technology.hinder the development of new technology. Assess objectively where your firm is on the Assess objectively where your firm is on the

technology curve.technology curve. Assess the strengths and weaknesses of your Assess the strengths and weaknesses of your

personnel and your approach to the management of personnel and your approach to the management of technology and innovation.technology and innovation.


Managerial Guidelines: (cont’d)Managerial Guidelines: (cont’d)

Set realistic priorities.Set realistic priorities. Develop excellent infrastructure to help find and take Develop excellent infrastructure to help find and take

advantage of potential opportunities.advantage of potential opportunities. Understand what the tasks are and how they are Understand what the tasks are and how they are

connected and disconnected.connected and disconnected. Be systematic in your search and assessment Be systematic in your search and assessment

processes, but review the system thoroughly to be processes, but review the system thoroughly to be sure it is still applicable.sure it is still applicable.

Savor every victory and learn from every failure.Savor every victory and learn from every failure. Be confident that once you have made a decision, it is Be confident that once you have made a decision, it is

a decision that will move you in the right direction.a decision that will move you in the right direction.


Key TermsKey Terms

• capabilitiescapabilities• cognitive institutionscognitive institutions• innovationinnovation• just-in-time (JIT) just-in-time (JIT)

inventory managementinventory management• management of management of

innovationinnovation• management of management of

technologytechnology• normative institutionsnormative institutions

• platformplatform• pullingpulling• pushingpushing• radio frequency radio frequency

identification (RFID)identification (RFID)• regulatory institutionsregulatory institutions• strategic managementstrategic management• systems viewsystems view• technologytechnology

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