Technology and science Technology refers to the theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as their production and delivery systems. A process, technique, or methodology embodied in a product design or in a manufacturing or service process which transforms inputs of labor, capital, information, material, and energy into outputs of greater value. Basic science versus Applied science
Innovation To make something new A process of turning opportunity into new ideas and of putting these into widely used practice Change (product or process) Sociocultural evolutionary processes of variation, selection, and retention.
Types of innovation: Incremental innovations Radical innovations Architectural Modular
Innovation at the System Level Competitors Suppliers Leading edge customers Strategic partnerships Innovation activities in the firm
FOUR FUNCTIONS OF THE MANAGERIAL PROCESS LEADINGCONTROLLINGORGANIZING PLANNING
People Money Machines Materials Doing the right things TWO PERFORMANCE DIMENSIONS Efficiency= making best use of resources in achieving goals Effectiveness= choosing effective goals and achieving them Doing things right
Whats going on in there? Technology the black box The managers/economists view of innovation
The engineers view of innovation Whats going on out there?
Management Engineering/ Science Management of Technology
Technology management is a link among engineering, science and management disciplines to plan, develop and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organization. Knowledge on how to solve technical problems, embedded in business and social contexts.
Understanding TM Micro versus Macro Process-based
Technology Management Macro Level Innovation and technology systems Financial organizations (Venture capital…) Universities, research organizations Technoparks, incubators Government agencies (regulation bodies)
Process based Porter model Teece model: Dynamic capabilities
Porter model Industry-competitor analysis Positioning Strategic investments
Teece model (1) Dynamic capabilities build, integrate, or reconfigure operational capabilities that are defined as a high- level routine (or collection of routines) that, together with its implementing input flows, confers upon an organisations management a set of decision options for producing significant outputs of a particular type (Winter, 2000: 983). A routine refers to a repetitive pattern of activity. Similarly, competencies refer to activities to be performed by assembling firm-specific assets/resources. That is why dynamic capabilities are conceived as routines/activities/competencies embedded in firms.
Teece Model (2) Advantages: 1) The capability to generate a stream of product, service and process changes that matter for long-term performance 2) Dynamic approach 3) Take the market or the product as given but as objects of strategic reconstitution as firms develop and respond to productive opportunities, they alter and further differentiate and, in the process, re-characterise the parameters (technological, product, organisational) of the market
Dynamics behind TM: Change in production systems Change in managerial and engineering cultures!!! Change in competition Increasing returns Technology as a source of competitive advantage
Context affects technology management : Sector (e.g. scale-intensive, science- intensive) Size (e.g. small firms, large firms) National systems of innovation (e.g. different countries have more or less supportive contexts) Life cycle (of technology, industry, etc.) (e.g. new versus mature established firms)