critical factors in technology
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This document discusses key factors in managing technology, including the importance of creativity, invention, innovation, research and development. It emphasizes that managing technology requires continuous efforts to create new technologies and bring novel products and services to market. While invention generates new concepts, innovation involves integrating existing technologies into new products and systems. Both are essential for technology development and application. The document also examines types of innovation, how to foster creativity, and the importance of timing when bringing innovations to market.
critical factors in technology
- 1. Critical FactorsinManaging TechnologyNeil EsgraCritical FactorsinManaging TechnologyCritical FactorsinManaging Technology
- 3. The Creativity FactorInvention and Innovation
- 4. Technology is an expression of human creativity. Managing technology involves continuous effort in creating technology, developing novel products and service, and successfully marketing them. This requires great creativity along with a system designed to exploit it. 2/12/2011Neil Esgra
- 5. It also requires an investment in research and development. R&D is a costly endeavor. It is a risky investment and therefore needs to be well managed. 2/12/2011Neil Esgra
- 6. However, it is an investment in the future that cannot be neglected, nor can its value be underestimated. Technology creation and exploitation require a chain of events, starting with inventions and ending at the marketplace.2/12/2011Neil Esgra
- 8. Invention Invention is either a concept or the creation of a novel technology. It could be a product, a process, or a previously unknown system. The steam engine, the transistor, and the Xerox machine are examples of important inventions. A new composite material, a new manufactured product, and a new process constitute inventions.2/12/2011Neil Esgra
- 10. Innovation Innovation involves the creation of a product, service, or process that is new to an organization. It is the introduction into the marketplace, either by utilization or by commercialization, of a new product, service, or process. 2/12/2011Neil Esgra
- 11. It does not have to be new to the world; rather, it is viewed as the first use of an idea within an organization, whether or not the idea has been adopted by other organizations already.2/12/2011Neil Esgra
- 12. The technology (or the product) need not be novel or groundbreaking. An innovation may be a change in industrial practice, which improve productivity. Successful innovation is a feat not of intellect but of will. The innovation process involves integration of existing technology and inventions to create a new or improved product, process, or system.2/12/2011Neil Esgra
- 14. Invention and InnovationAn invention can be thought of as an event, while innovation can be thought of as a process.Inventions are not as common, and one invention usually precedes a number of innovations.Innovation represents the important connection between an idea and its exploitation or commercialization.2/12/2011Neil Esgra
- 15. Technological innovation includes “the initiation of the technical idea, the acquisition of the necessary knowledge, its transformation into usable hardware or procedure, and its introduction into society and its diffusion and adoption to the point where its impact is significant.”2/12/2011Neil Esgra
- 16. The bottom line of innovation is the market, which will buy or ignore it, thereby dictating success or failure. Management of Technology encourages invention and the management of innovation. Both are creative processes representing essential components of any technology – creation and application system.2/12/2011Neil Esgra
- 18. The Link BetweenScience and Technology
- 19. Science deals with understanding the laws of nature. This leads to the discovery of fundamental knowledge about the world, the universe, and all living things. Scientific knowledge focused on natural phenomena is neutral on the question of how this knowledge may be used. It is when scientific knowledge is applied to the things we do in life that knowledge enters the realm of technology.2/12/2011Neil Esgra
- 20. Components of an Innovation Cycle2/12/2011Neil Esgra
- 22. Innovations can be classified as:Radical or Revolutionary-breakthrough innovations that are usually based on invention.They change or create new industries.
- 23. They are relatively rare and typically start outside the boundaries of a firm.
- 24. When they are developed within the boundaries of a firm, they signify the introduction of something that is not only new to the organization but drastically different from its existing practices.2/12/2011Neil Esgra
- 25. Incremental or Evolutionary- These are small but important improvements in a product, process or service.They are relatively common and are created within the firms of an industry.
- 26. They help companies maintain a competitive position in the marketplace.- Routine innovation is another term sometimes used to refer to the introduction of something that is new to an organization but very similar to what it had in the past.2/12/2011Neil Esgra
- 28. Innovation is associated with the creation of value or the satisfaction of a customer need.Creativity is the engine of innovation.The essence of creativity is combining two or more ideas to arrive at an entirely new one.Creativity favors the prepared mind and is often inspired by a sense of dissatisfaction with existing practice.Creativity depends on both people and environment.2/12/2011Neil Esgra
- 29. A creative environment has the following characteristics:Permits people to work in areas of their greatest interest.Encourages employees to have broad contact with stimulating colleagues.Allows taking moderate risks.Tolerates some failures and nonconformity.Provides appropriate rewards and recognition.2/12/2011Neil Esgra
- 30. The following characteristics exists in creative people who can convert their thoughts into innovation:The ability to produce a large number of ideas quickly.The ability to generate original and unusual ideas.Conceptual fluencyThe ability to standout and be a little deviant from others.Interest in the problem one faces.2/12/2011Neil Esgra
- 31. the ability to separate source from the content in evaluating information.Perseverance in following problems wherever they lead.Suspension of judgement and no early commitment.The willingness to spend time analyzing and exploring.A genuine regard for intellectual and cognitive matters.2/12/2011Neil Esgra
- 32. Bringing Innovation to the MarketBringing Innovation to the Market
- 33. The manipulation of the different stages of the innovation cycle’s sequence of events is an important and effective weapon.The sooner an innovation reaches the marketplace, the sooner a company can reap its rewards.However, a company that owns a technological innovation may want either to delay or to speed up the diffusion of technology in the marketplace in order to exploit its benefits2/12/2011Neil Esgra
- 34. Technology – Price Relationship
- 35. When an entity such as a company has a technological advantage, it is able to command a premium price for its technology.The magnitude of this premium is dependent on the value of the technology to customers.If the knowledge gap between company and the customer is high, the owner can command a high price for it.However, as the customer gains experience with the technology, the knowledge gap shrinks.2/12/2011Neil Esgra
- 36. The Timing FactorThe Osborne Computer Company
- 37. One of the factors of vital concern in proper management of technology is the timely creation and introduction into the marketplace. Equally important is the introduction of follow – up technology that will improve performance. Continuous improvement of products and the production capability of the corporation are vital to the firm’s health and survival. Actions must be taken at the right time if an enterprise is to succeed in a competitive marketplace.2/12/2011Neil Esgra
- 38. The Osborne Computer Corporation2/12/2011Neil Esgra
- 39. For manufacturing and service organizations, time – based competition (TBC) is an important competitive weapon for achieving world – class status.TBC focuses on the entire value – delivery system to reduce the time required to deliver a product or service.Manufacturing organizations have switched to just – in – time (JIT) systems to compress time wasted in production and facilitate quick response to customer demands2/12/2011Neil Esgra
- 40. The Vision to Change StrategyThe Vision to Change StrategyIBM and the Development of the PCMicrosoft and the Internet
- 41. When a company has a strong market and its revenues are good, management tends to lose sight of environmental changes that may affect the company’s competitive position and sometime’s even its survival.It is very common for managers to be drawn into the routine day – to – day problems of running a business. This can make them lose their vision for change and enthusiasm for innovation.2/12/2011Neil Esgra
- 42. Short term successes can mask the need for change.The old adage “ If it’s not broken, don’t fix it” may lead management to maintain the status quo.In today’s world of fast – paced technological change, this can be a very dangerous posture to take, an attitude that can lead to loss of competitiveness.2/12/2011Neil Esgra
- 43. IBM and the Development of the PCMicrosoft and the Internet2/12/2011Neil Esgra
- 44. Managing Change
- 45. The key issue for management in the current environment is how to utilize the existing capabilities of the organization to take advantage of the possibilities.The only thing certain is change.2/12/2011Neil Esgra
- 46. Productivity, Effectiveness, and Competitiveness
- 47. Productivity or efficiency in operation implies doing things right.Effectiveness implies the ability to achieve goals.Competitiveness indicates the standing of a company in relation to a known group.Managers are encourage to keep an eye on the future without neglecting the need to continue optimizing current options.2/12/2011Neil Esgra
- 48. Leaders versus FollowersA Leader: is a firm that is the first to market an innovation.A Follower: is a firm that misses the initial wave of capitalization on the technology but recognizes the technology’s impact on it business.2/12/2011Neil Esgra
- 49. Advantages of Being a LeaderName recognitionBetter market positionA chance to define the industry standardA head start on the leaning curveProtective barriersHigh profitDelayed customer switchingFavorable response by outsiders2/12/2011Neil Esgra
- 50. Time is the only critic without ambition.-- John Steinbeck2/12/2011Neil Esgra