Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 12 Strategic Issues in Managing Technology and Innovation

Prentice Hall, Inc. © Executive Fear over loss of Innovation

Prentice Hall, Inc. © Technology and Innovation The Role of Management – –Innovation –Management of technology

Prentice Hall, Inc. © Technology and Innovation Environmental Scanning – –External Scanning New developments in technology

Prentice Hall, Inc. © Technology and Innovation Impact of Stakeholders on Innovation – –Lead Users Process Lay the foundation Determine the trends Identify lead users Develop the breakthrough

Prentice Hall, Inc. © Technology and Innovation Impact of Stakeholders on Innovation – –Market Research –New Product Acquisition

Prentice Hall, Inc. © Technology and Innovation Environmental Scanning – –Internal Scanning Resource development Experimentation Risk taking New ideas Autonomous project teams

Prentice Hall, Inc. © Technology and Innovation Environmental Scanning – –Resource Allocation Issues R&D intensity Time to market issues

Prentice Hall, Inc. © Product & Process R&D Innovation Life Cycle

Prentice Hall, Inc. © Technology and Innovation Outsourcing Technology – –Low significant to competitive advantage –Supplier has proprietary technology –Supplier’s better –Strategy based on design not development –Requires special expertise –Requires new people and resources

Prentice Hall, Inc. © Technology and Innovation Intellectual property – –Special knowledge used in new product or process

Prentice Hall, Inc. © Technology and Innovation Technological Competence –Absorptive capacity –Technological competence

Prentice Hall, Inc. © Categories of Innovation

Prentice Hall, Inc. © Product/Market Evolution Portfolio Matrix

Prentice Hall, Inc. © Stages of New Product Development

Prentice Hall, Inc. © Technology & Innovation Innovative Organizations – –Positive attitude toward change –Decentralized decision making –Informal structure –Interconnectedness –Organizational slack –Large size –System openness

Prentice Hall, Inc. © Designs for Corporate Entrepreneurship

Prentice Hall, Inc. © Evaluation and Control Techniques – –Stage-gate process –House of quality –Index of R&D effectiveness

Prentice Hall, Inc. © House of Quality