Technology innovation(New) technical.ppt
- 1. FTVETI Faculty of PMEH Department of TVET Leadership and Management Course Title: Technology and Innovation Management Course Code: VLM-605 Instructor: Dr Bekre H/S Addis Ababa Ethiopia 1
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- 3. Message of the course 3
- 4. Course Objectives At the end of the course, students will be able to; discuss the conceptand meaning of technology ,technology management and innovation identify the alternatives and measures in technology acquisition explain the concept of technology management forecasting discuss technology management strategy and competitiveness determine the issues and aspects of technology management and innovation 4
- 5. Cont… explain the human aspects of technology management implement the social issues in technology management Assessment Methods Group activities 5*10= it will be changed to 30% Group project supported by presentation= 20% Final exam= 50% 80% attendance is mandatory 5
- 6. THE NATURE OF TECHNOLOGY As long as there have been people, there has been technology. Indeed, the techniques of shaping tools are taken as the chief evidence of the beginning of human culture. On the whole, technology has been a powerful force in the development of civilization, all the more so as its link with science has been forged. 6
- 7. Cont… Technology like language,values, commerce, and the arts is an intrinsic part of a cultural system and it both shapes and reflects the system's values. In today's world, technology is a complex social enterprise that includes not only research, design, and crafts but also finance, manufacturing, management, labor, marketing, and maintenance. 7
- 8. Cont… Technology extends our abilities to change the world: to cut, shape, or put together materials; to move things from one place to another; to reach farther with our hands, voices, and senses. We use technology to try to change the world to suit us better. 8
- 9. Cont… The changes may relate to survival needs such as food, shelter, or defense, or they may relate to human aspirations such as knowledge, art, or control. But the results of changing the world are often complicated and unpredictable. They can include unexpected benefits, unexpected costs, and unexpected risks any of which may fall on different social groups at different times. Anticipating the effects of technology is therefore as important as advancing its capabilities. 9
- 10. Technology Management is set of management disciplines that allow organizations to manage their technological fundamentals to create competitive advantage. The main focus on technology part for manager is to create wealth. Technology management requires deep understanding of life cycles of technology, product, process and system. Technology management is also a tool to catalyze R&D. 10
- 11. Cont… Technology management involve technological tool for national defense, national development and economic growth by resolving to make country a self-reliant, strong and technology developed country. Technology management involving those features can therefore act as a catalyst in propelling R&D programmed to achieve faster rates of technological growth. Technology management used to link different disciplines to plan, develop, and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organisation. 11
- 12. Why Technology Management? To create wealth For human advantage Raising standard of living and quality of life Make faster growth of Nation and the world Dimension of Technology Management National/government level (Macro Level) Firm/organization level (Micro level) 12
- 13. Concern of Technology Management Technology management is the answer for development of nation and growth of its economy. Therefore, it is worth-while to frame technological objectives in chosen areas by comparing ourselves with the technological progress registered by fast growing countries . Countries must formulate aims and objectives in tune with philosophy and evolve the methodology to bring about radical change in technology development and technology management in all R&D organization. 13
- 14. Cont… Technology Management concerns the management of creative and strategic innovation related to business management as it concerns technology. It has 3 aspects: 1.Technology management is seen as having the purpose of revamping the management of entire corporation. It is consider together with corporate mission, goals and strategic, and is used as a means for their actualization. 2. Technology Management is conceived as a dynamic process and as a framework for debating the management of transition process. 14
- 15. Cont… This aspect can be broken down further into (a). Managing the process of creating a new technology environment and a new market environment as global trend leader and (b). Managing the process of becoming flexibility compatible with an ever-changing management environment. 3. Innovation that concern technology is an activity that transforms a company's technological knowledge base into a new knowledge base. This can be expressed as the 15
- 16. Cont… Technology Management is not a simple or easy process because it inherit the concept of development of new and challenging product or new business ventures requires enormous management resources and a long period of time. 16
- 17. Major Area Involve in Technology Management Technology information, monitoring, forecasting, and assessment. Technology evaluation, selection and acquisition. Intellectual property management. Research and Development and innovation. Management of manufacturing, standard and quality. 17
- 18. Cont… Technology management for sustainable development. Product innovation process for product development and production. The resonance of Market and Technology creation. The globalization of management and R&D. Transforming information system promote innovation. Strategic Technology management. Technology Transfer. 18
- 19. Three 'P' of Technology 1. Product. 2. Process. 3. People. It refers as practical knowledge, know-how, skills and artifacts that can be used to develop a new product or service or a new production process. 19
- 20. Characteristics of Technology All Technologies Involve Control All systems, from the simplest to the most complex, require control to keep them operating properly. Control typically requires feedback (from sensors or other sources of information) and logical comparisons of that information to instructions (and perhaps to other data input) and a means for activating changes. 20
- 21. Cont… Technologies Always Have Side Effects In addition to its intended benefits, every design is likely to have unintended side effects in its production and application. On the one hand, there may be unexpected benefits. 21
- 22. Cont… All Technological Systems Can Fail Most modern technological systems, have been engineered and produced to be remarkably reliable. Failure is rare enough to be surprising. Yet the larger and more complex a system is, the more ways there are in which it can go wrong and the more widespread the possible effects of failure 22
- 23. Cont… A system or device may fail for different reasons: because some part fails, because some part is not well matched to some other, or because the design of the system is not adequate for all the conditions under which it is used. One hedge against failure is overdesign that is, for example, making something stronger or bigger than is likely to be necessary. Another hedge is redundancy that is, building in one backup system or more to take over in case the primary one fails. 23
- 24. Acquisition of technology Screening through technology auditing Valuation according to the value network in the perspective of whole product/service Prioritizing the relevance, transfer flexibility, competitive dynamics of technology Determining the timing criteria and scheduling sequence Selecting the modes of acquisition 24
- 25. Methods of acquiring technology Internal R&D process Joint venture process Outsourcing R&D Technology licensing & transfer Technology purchasing 25
- 26. Factors influenced the acquisition mode The relative technology power/position The urgency of technology The scale of investment/resource commitment The stage of technology life cycle The importance degree of technology 26
- 27. Exploitation of technology Open the technology repository/patent shelf for market value Leverage the complement assets of industry partners Speed the technology diffusion for the dominant design (de facto) Define and establish the industry standard 27
- 28. Exploitation modes Internally integrated into the product development Outsource manufacturing or marketing New joint venture for applications Technology licensing 28
- 29. Factors influenced the exploitation mode Relative market/industry position Urgency of application (competition pressure) Complementary requirements The scale of investment The importance degree of technology The un-exploitated potential of technology 29
- 30. Stages of technology development Basic research Generic knowledge Exploration of curiosity Applied research Specific knowledge for mission purposes or breakthrough Development Proprietary knowledge of novel application systems, or products Technological enhancement Continuous innovation for market value 30
- 31. Diversity of technology investments Cont… Basic/applied Research Emerging technology New generation technology Product/process innovation Technology transfer Maintenance of competitive advantage (product/process/market) Emerging stage Growing stage Mature stage 31
- 32. Global management of R&D Consideration of technology acquisition Technology-push innovation Coping with the variation of local customer preference Market-pull innovation Meeting the transformation of regulation (host & guest countries) Outsourcing the manufacturing partners Japanese style global R&D: establish the information division for product differentiation European style global R&D: acquiring the entire sources of startups American style global R&D: hunting the oversee talents through global R&D laboratories 32
- 33. Group Activity (10%) Discuss the following questions • What are our technological assets? • How to manage them for business benefit? • What new technologies are relevant to our TVET system/counrtry • How best to acquire and exploit new technologies? • How to protect technological assets? 33
- 34. Strategic technology area Define the demanding technology or discipline Which is suitable to which? Articulate the real profitable product/service Propose a valuable segment for targeting 34
- 35. Technology creation through R&D Fund/co-fund the private/public R&D center for basic researches Search the distinguished technology landscape Reach/touch the research center for technology awareness & license 35
- 36. What is innovation? Why is it important? Innovation is all about the practical application of new inventions into marketable products or services. Invention is creation or formulation of a new idea, service or product. Innovation is the practical application of an invention into a marketable product or service. Innovation turns ideas into money, invention turns money into ideas. 36
- 37. Types of Innovation Radical innovation is normally the result of a major technological breakthrough or the application of a new technology. Unlike incremental innovation where each innovation typically draws heavily on what has preceded it, radical innovation is non- linear and discontinuous involving a step change from what has gone before. Hence radical innovation is about much more than improving an existing design. A radical innovation calls for a whole new 37
- 38. Cont… Product Innovation - Development of a totally new product or improved product or services. The product innovation is limited to the outcome of a process, which is a product. Process Innovation - Finding a novel way of achieving an output which was traditionally done in a different way. In the process innovation, the final product is not touched, but the method of bringing out the product is improved. 38
- 39. Cont… The improvement could be due to use of new techniques, equipment etc Examples are the design and installation of a new production line in a factory or a new information system in a Bank. 39
- 40. Diffusion of Innovation Theory Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the oldest socia science theories. It originated in communication to explain how over time, an idea or product gains momentum and diffuses (or spreads) through a specific population or social system. The end result of this diffusion is that people, as part of a social system, adopt a new idea, behavior, or product. 40
- 41. Cont… Adoption means that a person does something differently than what they had previously (i.e., purchase or use a new product, acquire and perform a new behavior, etc.). The key to adoption is that the person must perceive the idea, behavior, or product as new or innovative. It is through this that diffusion is possible. 41
- 42. There are five established adopter categories: Innovators - These are people who want to be the first to try the innovation. They are venturesome and interested in new ideas. These people are very willing to take risks, and are often the first to develop new ideas. Very little, if anything, needs to be done to appeal to this population. 42
- 43. Cont… Early Adopters - These are people who represent opinion leaders. They enjoy leadership roles, and embrace change opportunities. They do not need information to convince them to change. Early Majority - These people are rarely leaders, but they do adopt new ideas before the average person. 43
- 44. Cont… They typically need to see evidence that the innovation works before they are willing to adopt it. Strategies to appeal to this population include success stories and evidence of the innovation's effectiveness. Late Majority - These people are skeptical of change, and will only adopt an innovation after it has been tried by the majority. Strategies to appeal to this population include information on how many other people have tried the innovation and have adopted it 44
- 45. Cont… Laggards - These people are bound by tradition and very conservative. They are very skeptical of change and are the hardest group to bring on board. Strategies to appeal to this population include statistics, fear appeals, and pressure from people in the other adopter groups. 45
- 46. Factors that influence adoption of an innovation, Relative Advantage - The degree to which an innovation is seen as better than the idea, program, or product it replaces. Compatibility - How consistent the innovation is with the values, experiences, and needs of the potential adopters. Complexity - How difficult the innovation is to understand and/or use. 46
- 47. Cont… Triability - The extent to which the innovation can be tested or experimented with before a commitment to adopt is made. Observability - The extent to which the innovation provides tangible results 47
- 48. Group Activity(10%) 1) Define the following terms i. Innovation ii. Invention iii. Creation iv. Discovery v. Technology 2. Success begins with a careful understanding of what you are trying to achieve, the potential for resistance and planning, but there are various organizational barriers to innovation that repeatedly show up: Discuss five such barriers to innovation? 3. Enumerate two components of individual creativity? 4. The pressures for change which lead to new strategic direction include a combination of both internal and external forces. Discuss two internal and two external forces that drive change? 48
- 49. Technology Innovation Technological innovations are defined as new products and processes and major technological modifications to products and processes. An innovation is considered performed if it is introduced to the market (product innovation) or implemented in the production process (process innovation). Innovation includes many research, technological, organizational, financial and commercial activities. 49
- 50. Types of Innovation Product innovation A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics. Process innovation A new or significantly improved production or delivery method. 50
- 51. Cont… This includes significant changes in techniques, equipment and/or software. Marketing innovation A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. Organizational innovation A new organizational method in business practices, workplace organization or external relations. 51
- 52. Cont… Technological innovations – based on specific technology, invention, discovery, Social innovations – in critical historic periods more important than technological ones (mail, educational systém, social systém, health care, …) 52
- 53. DEGREE OF NOVELTY Incremental innovations Radical innovations Systemic innovations 53
- 54. INNOVATION PROCESS Research and development (R&D) Production Marketing Innovation is an opportunity for something new, different. It is always based on change. Innovators do not view any change as a threat but as an opportunity 54
- 55. The Process of Technological Innovation Successful commercialization & continuous improvement 55
- 56. Eight stages of technological innovation 1. Basic research (for general nature laws) 2. Applied research (for specific problems) 3. Development (design for prototyping) 4. Engineering (design for assembly) 5. Manufacturing (design for efficiency & quality) 6. Marketing (design for acceptance & affordability) 7. Promotion (design for diffusion) 8. Improvement & enhancement (design for sustainability) 56
- 57. Corporate innovation process Concept formation Product concept definition Technical analysis Market research & analysis Industry analysis—SWOT & business strategy Commitment & support from strategic apex Development Market testing Manufacturing & marketing Promotion & selling 57
- 58. Chain-reaction of successful innovation Scientific invention ←→ Engineering development ←→ Entrepreneurship ←→ Management/strategy ←→ Social demand ←→ Fit environment 58
- 59. Innovation trajectories Border crossings Inter-disciplines, -parties, -nations, -sectors Emergence of complex technologies Fit to and cause from diverse demands, perspectives, approaches, contexts Age of knowledge and distributed intelligence, KDI Network of knowledge—Building and extending the invisible college Learning and intelligent system—exploring the human behavior Computing challenge—exploit the numeric barrier 59
- 60. Innovation System Concurrent Integration (Bordogna, 1999) Innovation Wealth Creation Sustainable Development Analysis Reduction Discovery of New Knowledge & Basic Laws Societal Needs The Public Good Natural Capital Devices Processes Systems Ideas Information Capital Formation & Investment Synthesis Integration Design Manufacture Maintenance T e c h n o l o g y 60
- 61. Creative transformation Searching for innovation requirement & change demand Monitoring technological change & organizational change Transformation for sustaining performance On internal structure of R&D, manufacturing On external market of customer, interested parties Successful process of innovation fulfillment Project management & management renew 61
- 62. The Process of Creative Destruction Business leaders usually visualize a market economy in the context of how capitalism administers existing structures, whereas the wiser approach is to understand how it creates and destroys them. 62
- 63. Creative Transformations The Schumpeterian Factor The interaction of technological innovation with the competitive marketplace is the fundamental driving force in capitalist industrial progress. (Schumpeter, 1942) The normally healthy economy was not one in equilibrium, but one that was constantly being disrupted by technological innovation (The Economist, Schumpeter, 1999) 63
- 64. A technological innovation model The case of biomedical devices Concept formation—market pull or technological push Feasibility analysis—technological, economic, operational Product design and prototype development & testing Engineering & Manufacturing design—user interface, P/P ratio, extensible/upgrade capability Meet the FDA requisites—the min. quality standard Production & quality control Marketing promotion—pricing strategy, technology cycle, market structure, channel selection Customer satisfaction, post/disposal service 64
- 65. Entrepreneur & Entrepreneurship A technologist or marketer possessed with Vision, courage, initiative, concentration, unbendingness, autonomy, ambition Appreciation, motivate himself and others, leadership The good sense of market rather than much more invention Entrepreneur enterprise Intre-preneurship incorporation 65
- 66. The management renew cycle Entrepreneurship style of management for the start-ups or in the emerging stage of industry Organic system for flexibility, effectiveness, and growth Professional management for institutionalization or after the mature stage of industry Bureaucratic system for cost-benefit consideration & efficiency criteria Renewing demand after structural rigidity and industry decline 66
- 67. Venture team Intrepreneurship Imagine the future product concept The gatekeeper of technology & market Plan enabler Project manager A stand alone research center Xerox’s Palo Alto Research Center (PARC) Keep flexible and innovative 67
- 68. Factors influencing technological innovation Scientific capability & repository Technology life cycle Investment scale & level Political facilitator Complementary technologies Diffusion mode & rate 68
- 69. Group activity(10%) Discuss how the following factors affect technology innovation? Give examples to each. Scientific capability & repository Technology life cycle Investment scale & level Political facilitator Complementary technologies Diffusion mode & rate 69
- 70. Factors impeded/facilitated technological innovation World politic/economic dynamics Communication channel/speed Multiple research centers—competition or cooperation relay Launch timing Education/diffusion system Visible/invisible committee Industry policy Mobility barriers Public/private organizational transformation 70
- 71. The innovative Skills Handle projects from initial conception of an idea through to product realization Understand, nurture, and capitalize sustainably on nature Be alpha-numeric literate Articulate team goals, influence others to invest in them, evince trust at all levels Envision rational solution scenarios to open-ended challenges Act as catalyst and master integrator in multifaceted, multidisciplinary projects Understand and practice quality issues Manifest a strategic intent in design 71
- 72. Cont… Use the limited resources in the most effective manner; focus on one of the following: Operational output Top-quality products Perfect knowledge of customers Solve the correct problem correctly – be effective and efficient 72
- 73. Cont… Manage innovation as a project Analyze risks Use models, scenarios, computer simulation Study examples of succesful and unsuccesful innovation projects 73
- 74. Cont… Enable comfort in interpersonal relations Pursue standards-based practice Practice creative transformation Focus on innovation Sense the coupling among seemingly disparate issues Make sense of complexity 74
- 75. Cont… Contribute to, extract from, participate in the world of collective intelligence base Be an astute observer of strategic inflection points and anticipate their consequences at the moment of inflection 75
- 76. Conditions for innovations 1. Innovation means work, hard, concentrated and thorough work. If these qualities are lacking then there is no use for the big talent, cleverness or knowledge. 2. Successful innovations must build on your strong points. 3. The innovation must be important to the innovator. 4. Innovation must focus on a market, must be controlled by the market (market-pull). 76
- 77. INNOVATION POTENTIAL A. STRATEGY AND PLANNING 1. Idea about the company future 2. Vision and employees 3. Company innovation programs 4. Plan modifications 5. Financial indicators of the plan 6. Project management 77
- 78. B. MARKETING 1. Monitoring of current market trends 2. Evaluation of the market competition position 3. Customer-orientation 4. Monitoring of customers’ attitudes to the company product 5. Market information flow inside the company 6. Marketing and financial control 78
- 79. C. TECHNOLOGICAL PROCESS 1. Future company’s competitiveness in the industry 2. Changes of technologies 3. Collection of impulses for implementation of technology changes 4. Evaluation of the return on investment 5. Calculation of production costs and their monitoring 6. Creation of resources for development 79
- 80. D. QUALITY, ENVIRONMENT 1. Monitoring of changes conditioning the quality management in the company 2. Employees’ personal contribution to the quality system 3. External quality audit in the company 4. Monitoring of the environmental impact 5. Impact of quality monitoring on the company processes 6. Covering of costs resulting from modifications of standards, regulations and legislation in the sphere of quality and environment 80
- 81. E. LOGISTICS 1. Organization of purchase and distribution channels in the company 2. Optimization of the company logistics 3. Information and communication flows between the company and its partners 4. Flexibility of logistics processes 5. Introduction of innovations in logistics 6. Logistics and financial control 81
- 82. F. ORGANIZATION AND HUMAN RESOURCES 1. Employees satisfaction 2. Employees motivation 3. Management and communication 4. Conflict resolution 5. Company information system 6. Company culture Reflection question How do you manage the above issues to boost 82
- 84. SOURCES OF INNOVATION IMPULSES INTERNAL 1. unexpected event 2. ccontradiction 3. change of work process 4. change in the structure of industry or market EXTERNAL 5. Demographic changes 6. Changes in the world view 7. New knowledge 84
- 85. 1. Unexpected event Unexpected success 1.What will the use of the offered opportunity mean to us? 2. Where will its introduction take us? 3.What do we need to do for its implementation? 4.How can we achieve that? Unexpected failure 85
- 86. 2. Contradiction Non-compliance with economic reality Contradiction between reality and anticipations about it Contradiction between the anticipated and real behavior of customers and their values 86
- 87. 3. Change of process realize the necessity of change, identify the weak point of the chain be convinced that if something does not work the way it should, then it is necessary to attempt a change the solution must be convenient for those who will implement it. It must place moderate and feasible requirements 87
- 88. 4. Change in the structure of industry and market Rapid growth of the industry Identification of new market segments Convergence of technologies (e.g. use of computers in telecommunications) Rapid change of the industry and resulting need of a structural change 88
- 89. 5. Demography easiest to describe and to predict influence what will be bought, who and in which amounts will purchase 6. Change of attitudes change in the approach to health: health-care, food, spending the leisure time “upper-middle class”: a chance to offer non- standard services at non-standard prices increasing migration, feminism, regionalism etc Timing is essential - to be the first 89
- 90. 7. New knowledge Based on convergence or synergy of various kinds of knowledge, their success requires, high rate of risk Thorough analysis of all factors. identify the “missing elements” of the chain and possibilities of their supplementing or substitution; Focus on winning the strategic position at the market. the second chance usually does not come; Entrepreneurial management style. Quality is not what is technically perfect but what adds the product its value for the end user 90
- 91. Group activity(10%) Assume that you are assigned as a leader in one organization. If you are asked to plan the following strategies how do you frame it? 1. Idea about the organization future 2. Vision of the organization 3. Employees development 4. Organization innovation programs 5. Financial indicators of the plan 6. Project management 91
- 92. IMPULSES FROM THE MARKET ENVIRONMENT Customers product presentation realistic simple, demonstrative and precise moderate representative sample of customers Suppliers Competitors 92
- 93. INNOVATION IMPULSES OF THE R&D identification research: to monitor the scientific, technical and economic information an identify innovation impulses applicable in the company basic research applied research: acquire knowledge and mean applicable for the meeting of specific, beforehand defined goals 93
- 94. Cont… Development: systemic use of knowledge and means acquired in the applied research for the creation of a new or improvement of the existing product or for the creation or modification of processes 94
- 95. INTERNAL IMPULSES usually combined with external sources supported by creative techniques innovation tools 95
- 97. BENCHMARKING 97
- 98. BRAINSTORMING 98
- 99. REENGINEERING 99
- 101. CHANGE MANAGEMENT STEP Making time Preparing a vision statement Identify what factors will hinder change force field analysis Learning Monitoring effectiveness 101
- 102. TECHNOLOGY AUDIT 102
- 104. VALUE Chain ANALYSIS Focuses on how a business creates customer value by examining contributions of different internal activities to that value Divides a business into a set of activities within the business Starts with inputs a firm receives Finishes with firm’s products or services and after-sales service to customers Allows for better identification of a firm’s strengths and weaknesses since the business is viewed as a process 104
- 105. What is Technology Transfer? The technology transfer process helps a manufacturing company more effectively use its human, physical, and capital resources by providing knowledge, information, or assistance, which leads to improvements in its facility, equipment, manufacturing methods, management methods, or marketing methods. 105
- 106. SWOT Analysis SWOT Numerous environmental opportunities A major favorable situation in a firm’s environment Major environmental threats A major unfavorable situation in a firm’s environment Substantial internal strengths A resource advantage relative to competitors and the needs of markets firm serves Critical internal weaknesses A limitation or deficiency in one or more resources or competencies relative to competitors 106
- 107. Class Activity (10%) 1. Take one technology and conduct a SWOT analysis. 2. Select one Technology and prepare a Change management system based on the following guidelines: A. Making time B. Preparing a vision statement C. Identify what factors will hinder change force field analysis D. Learning E. Monitoring effectiveness 107
- 108. Internal Analysis Requires firms to first identify their value- creating processes and primary cost drivers. They are then ready to perform a differentiation analysis using the following guidelines: identify the customers’ value-creating processes; evaluate differentiation strategies for enhancing customer value; and determine the best sustainable differentiation strategies 3. Benchmarking – comparison with competitors 4. Comparison with success factors in industry 108
- 109. STRATEGIC FRAMEWORKS FOR VALUE CHAIN ANALYSIS Value chain analysis requires a strategic framework or focus for organizing internal and external information, for analyzing information, and for summarizing findings and recommendations. Because value chain analysis is still evolving, no uniform practices have yet been established. However, borrowing recent concepts from strategists and organization experts 109
- 110. Cont… Three useful strategic frameworks for value chain analysis are: industry structure analysis; core competencies; and segmentation analysis 110
- 111. Cont… Industry Structure Analysis Michael Porter (1980, 1985) developed the five forces model as a way to organize information about an industry structure to evaluate its potential attractiveness. Under this model, the profitability of an industry or market measured by the long-term return on investment of the average firm depends largely on five factors that influence profitability. 111
- 112. Cont… These are: bargaining power of buyers; bargaining power of suppliers; threat of substitute products or services; threat of new entrants; and intensity of competition 112
- 113. Cont… A core competence is identified by the following tests: Can it be leveraged?—does it provide potentia access to a wide variety of markets? Does it enhance customer value?—does it make a significant contribution to the perceived customer benefits of the end product? Can it be imitated?—does it reduce the threat of imitation by competitors? 113
- 114. Cont… Using the value chain approach for segmentation analysis, Grant (1991) recommends five steps: identify segmentation variables and categories; construct a segmentation matrix; analyze segment attractiveness; identify key success factors for each segment; and analyze attractiveness of broad versus narrow segment scope. 114
- 115. APROACHES TO DEFINING SEGMENTATION VARIABLES Customer Characteristics Geographic Type of organization Size of the firm Life style Sex Age Occupation 115
- 116. Cont… Product-related Approaches User type Usage Benefits sought Price sensitivity Competitor Application Brand loyalty 116
- 117. Relationship – Invention, Innovation, Design, and Diffusion Naïve Model - Linear Invention Design Diffusion 117
- 118. Barriers to Transfer What hinders technology transfer and what cause joint projects to fail? Lack of awareness – what technologies are available to them Lack of knowledge – If staff of company is lacking technical knowledge, it may not be able to capitalize on the technology being offered in the transfer 118
- 119. Cont… Lack of funds – company may not be able to afford the development costs of the technology being transferred Lack of common interests – Individuals putting the interests of their own company ahead of the alliance Conflict of interest – Even in collaborations on the technical level or strong, it has been found that collaborations between competing companies doesn’t work. 119
- 120. Cont… Lack of Trust – If little trust exists between companies, it is doomed to fail Poor communications – Fail to keep each abreast on everything relevant to the collaboration, activities, thoughts, processes, goals, direction of venture Lack of infrastructure – company may lack equipment and facility in infrastructure to take on the transfer Over-committed – The company may be over- committed on current projects and simply lacks the time needed for success. 120
- 121. Cont… Technical Problems – which are generally overcome, but which add time and money and frustration Resource Limitation – Poor budget control Change in Project’s Structure – Loss of key members or loss of partner Organizational Problems – due to a partner losing or changing interest in the technological side. 121
- 122. Cont… Customers Suppliers Competitors Consultants, R&D institutions Schools, universities Professional publications, Internet Exhibitions, fairs, specialized seminars and conferences 122
- 123. Cont… Advertising agencies Investors Media Authorized testing laboratories, certification agencies State institutions, public sector Legislation Globalization 123
- 124. Cont… EXTERNAL Demographic changes Changes in the world view New knowledge 124
- 125. Social Issues in Technology Management There are five indicators namely: access, technology, humanware (human capacity), infrastructure, and enabling environment. Access – Presents obstacles which can broadly be grouped into five categories: geography, income, ethnicity, age, and education. 125
- 126. Cont… A good technological base depends a great deal on relevant inputs: investment capital, infrastructure, and humanware(human capacity). The Changing Workplace The workplace can be anywhere where one performs tasks: A place away from home In a car/plane/train Home Virtual office 126
- 127. Cont… In the home office: Categories of workers have been changing Company benefits are mixed Not everyone benefits from home-based work There are fears arising from home-based work: Trade secrets Supervision Productivity Liability Unstudied social and Ethical effects: Psychological Social 127
- 128. Cont… Technology impacts communities Use of technology raises questions: what are the costs? what are the benefits? which innovations will aid society? 128
- 129. Cont… Information Society – the main economic activity is creating and distributing knowledge Computers make knowledge accessible You need to know how to find and judge the information Fact vs. opinion (.edu or .gov) 129
- 130. Cont… E-mail management: viruses attached to e-mails Spam don’t open e-mails unless you know the sender Never reply to spam or click on links in a spam e-mail. 130
- 131. Cont… Identity Theft identity theft is using a person’s personal information to steal money or credit Don’t put personal information on the internet Assume anything posted on the internet is public information (if you don’t want mom or grandma to know…) 131
- 132. Cont… Ordering on phone, place the call yourself Do internet business only with reputable companies with secure web sites Tear up or shred personal papers 132
- 133. Steps to protect your identity 1. Secure your mail. Drop bills in public mailbox Hold mail if you won’t be home 2. Keep personal information private 3. Choose creative passwords – don’t choose the obvious ones 4. Secure wireless computer connections 133
- 134. Cont… Intrusiveness technology can be intrusive when it enters your life without your invitation. Use the “Do Not Call” lists Use the spam filters in your system Use anti-virus software 134
- 135. Cont… Cost of Technology Technology used by public entities costs money Debate needs vs. wants Health Care Costs Medical technology saves lives but it is very costly Take care of your health Advance directives are very important 135
- 136. Technology and the Future Follow your company’s policy on the personal use of technology. Ask questions when you do not know how to use equipment or software. Update your technology skills when you have the chance. Find someone to help you if you have technology problems. 136
- 137. Cont… Technology is here to stay! You need to be in control of the technology in your life – don’t let it control you! Have a sense of humor (things fail) Make time for things w/o technology Use only what is important to you Stay informed about what is new 137
- 138. Employee Monitoring Benefits of monitoring: Good management, performance evaluation, management control, accurate assessment, immediate feedback and, flexible work assignments. 138
- 139. Group activity (10%) Try to select one organization from your group and assess the: access, technology, humanware infrastructure, enabling environment. What hinders technology transfer and what cause joint projects to fail in your organization? 139
- 140. Group Project I (10%) Instruction: Read books or browse internet and organize a report based on the following issues. It will be presented in the class. Group one Reasons for obtaining technology Management of acquiring TI Measures of scale and mechanisms for acquiring TI 140
- 141. Group two TIM forecasting Characteristics of TIM forecasting process Need and role of TIM forecasting method Principles of TIM forecasting Forecasting methods and techniques of TIM 141
- 142. Group three Elements of an accessible TIM strategy Competitive advantage and its components of TIM Creating competitive advantage of TIM using value chain TIM evaluation and assessment methods 142
- 143. Group four TI life cycle and technology transformation TI policies and policy Instruments Models of TI 143
- 144. Group five Social issues in TIM Technology and industrial relations Impact of technology in a society TI assessment and environmental impact analysis process Guidelines on the scope of environmental impact analysis (EIA) 144
- 145. Group Project II (10%) Visit a nearby College/Institute and asses the practice of TIM. Prepare a semi-structure interview questions and organize your report. Each student will present in the class by taking his/her parts. 145
- 146. Extended readings Rogers, Everett M., and Judith, K. Larsen (1984), Silicon Valley Fever: The Growth of High- Technology Culture, Basic Books. Howard, R. (1992), “The CEO as organizational Architect: An Interview with Xerox CEO Paul Allaire,” Harvard Business Review, Sept.-Oct., pp.107-119. Saxenian, Annalee, (1996), Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Harvard University Press. 146
- 147. Cont… Wheelwright, Steven C. and Kim B. Clark (1992), Revolutionizing Product Development : Quantum Leaps in Speed, Efficiency, and Quality, The Free Press. Mitchell, Graham R. and William F. Hamilton, (1988), “Managing R&D as A Strategic Option,” Research-Technology Management, May-June, pp.15-22. Mayer, David and Martin Kenny (2004), “Economic Action Does Not Take Place in a Vacuum: Understanding the Cisco’s Acquisition and Development Strategy,” Industry and Innovation, 11(4), pp. 299-325. 147