Managing Technology and Innovation Chapter Seventeen Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives LO 1 List the types of processes that spur development of new technologies. LO 2 Describe how technologies proceed through a life cycle. LO 3 Discuss ways to manage technology for competitive advantage. LO 4 Summarize how to assess technology needs. 17-2

Learning Objectives (cont.) LO 5 Identify alternative methods of pursuing technological innovation. LO 6 Define key roles in managing technology. LO 7 Describe the elements of an innovative organization. LO 8 List characteristics of successful development projects. 17-3

Technology and Innovation  Technology  The systematic application of scientific knowledge to a new product, process, or service. 17-4

The Technology Life Cycle 17-5 Figure 17.1

Technology Dissemination Pattern and Adopter Categories 17-6 Figure 17.2

Diffusion of Technological Innovations  An innovation will spread quickly if it  Has a great advantage over its predecessor  Is compatible with existing systems, procedures, infrastructures, and ways of thinking  Has less rather than greater complexity  Can be tried and tested easily without significant cost or commitment  Can be observed and copied easily 17-7

Dynamic Forces of a Technology’s Competitive Impact 17-8 Figure 17.3

Assessing Technology Needs  Technology audit  Process of clarifying the key technologies on which an organization depends 17-9

Assessing External Technological Trends  Benchmarking  the process of comparing the organization’s practices and technologies with those of other companies 17-10

Framing Decisions about Technological Innovation Table 17.2

Sourcing and Acquiring New Technologies  Make-or-buy decision  The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself

Technology Acquisition Options Figure 17.4

Technology and Managerial Roles  Executive champion  An executive who supports a new technology and protects the product champion of the innovation

Requirements for Innovation Figure 17.5