1-1 Management of Technology Introduction MOT

1-2 Management of Technology Porter’s Five Forces Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products Rivalry Among Competing Firms in the Industry

1-3 Management of Technology Core Competency Are Rare Are Valuable Are Costly to Imitate Are Non-substitutable

1-4 Management of Technology MOT -- Areas of Study Technology Strategy Technology Forecasting Bringing Technology to Market Managing Research and Development R&D Project Management Managing Technical Personnel New Product Development

1-5 Management of Technology Issues and Problems Acquire, develop,and allocate technological resources – Competitiveness – Integrated with corporate strategy Develop and exploit capacity for innovation – Assess capability – Improve or use leverage

1-6 Management of Technology MOT -- Key Concepts Inventions and discoveries: “We discover what before existed, though to us unknown; we invented what did not before exist.” Basic research: Activities involved in generating new knowledge about physical, biological, and social phenomena. Applied research: To solve particular technical problems.

1-7 Management of Technology MOT -- Key Concepts Technology: Theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as their production and delivery systems. Technology can be embodied in people, materials, cognitive and physical processes, plant equipment, and tools.

1-8 Management of Technology MOT -- Key Concepts Innovation: The use of new knowledge to offer a new product or service that customers want. Porter: “a new way of doing things that is commercialized” The new knowledge can be technological or market related. (Federal Express’s one-day delivery service)

1-9 Management of Technology MOT -- Key Concepts Technological Innovation: Technology based (disposal diapers) or facilitated by new technologies (banking system facilitated by electronic data processing). It can be incremental (mountain bike) or radical (wireless communication). Technology Innovation - Can you think of examples? The criteria for success of technological innovation is commercial rather than technical.

1-10 Management of Technology Strategy without capabilities has no force, capabilities without strategy remain aimless.

1-11 Management of Technology Technology and Strategy What is Strategy? Actual (Positive) vs. Optimal (Normative) Technology Strategy - Product-Market Strategy (Exhibit 2; pg. 7) - Technology Portfolio (Exhibits 3 and 4) > Importance and Position (pg. 8) > Business Portfolio (pg. 9)

1-12 Management of Technology Technology and Strategy Technology and Technology Innovation Technology Strategy - Product-Market Strategy - Technology Portfolio > Importance and Position > Business Portfolio

1-13 Management of Technology Exhibit 2 The Product/Technology Matrix Product A (*) Product BProduct N Tech. 1 Tech. 2 Tech. 3 … Tech. k ….

1-14 Management of Technology Exhibit 3 Developing the Technology Portfolio HighLow Relative Technology Position High Low TechnologyImportance Bet Draw Cash In Fold

1-15 Management of Technology HighLow Competitive Position High Low Attractiveness A B Business Exhibit 4

1-16 Management of Technology HighLow Position High Low Importance B A Technology

1-17 Management of Technology Technology - Market Portfolio Sony walkman Miniaturization Rapid new product introduction Other examples?

1-18 Management of Technology Technology Life Cycle Emerging Technologies Pacing Technologies Key Technologies Base Technologies

1-19 Management of Technology Technology Forecasting Technological progress function (S- curves) Trend extrapolation The Delphi method Scenario development Systematic data gathering is essential !!

1-20 Management of Technology Why Technology Forecasts Often Fail All potential uses not yet discovered Complementary innovations not yet developed Systems integration (no system yet) Problem-solving myopia (new applications overlooked) Passing the “needs test” (technologically and economically better) Competing with the past

1-21 Management of Technology Innovative Capability Assessment Innovative Capability Audit - Business unit (pg. 11) Timing of market entry Technological leadership/followership Scope and rate of innovation - Corporate unit (pg. 13) - Frames of reference

1-22 Management of Technology The Art of High-Technology Management Themes of Success - Business focus Closely Related Products Focused R&D Consistent Priorities - Adaptability Organizational Flexibility

1-23 Management of Technology Themes of Success - Organizational Cohesion Communication Job rotation Integration of roles Long-term employment - Entrepreneurial Culture Small divisions Variety of fund channels Tolerance of failure

1-24 Management of Technology Themes of Success - Sense of Integrity Self-understanding - Hands-on Top Management

1-25 Management of Technology Paradox of High - Technology Management - Business Focus - Organizational Cohesion - Sense of Integrity - Adaptability - Entrepreneurial Culture - Hands-On management

1-26 Management of Technology Paradox of High - Technology Management - Stability vs. Change Balance Implemented in Many Ways - Examination of Mature Products - Managing Ambivalence