1. Technology integration: Managing technological evolution in a complex environment (Iansiti, 1995) Olga Jemeljanova Joona Kanerva Niko Kuki Mikko Nummela Group 10 1.3.2016

2. Question “Once the framework proposed by the authors is in place, what activities would you take as a manager to ensure that the effective model survives in the future?”

3. Outline The article Framework for product development performance Propositions and empirical evidence Implementation guidelines Activities for survival of the effective model Conclusion

4. The article A cross sectional study of product development in the mainframe computer industry Empirical investigation –27 projects –61 problem solving attempts Environments characterized by discontinuous technological change Response and adaption to technological change Drivers of effectiveness in R&D Management and product development The impact of technology integration routines on the performance of product development Earlier articles: The article:

5. Framework for product development performance System Focus Emphasis on project specification Generation of knowledge of systematic impact of individual design choices Systematic retention and application of system knowledge Problem Solving Breadth Sampling broad disciplinary expertise in problem identification and solution Development Performance

6. Proposition 1 In a complex environment characterized by technological discontinuities, high problem-solving efficiency (and development performance) will be associated with approaches that sample a broad base of disciplinary expertise - involving the search for and processing of information from disciplinary knowledge bases which were previously unrelated. Problem Solving Breadth Development Performance System Focus

7. Proposition 1 empirical evidence Higher the problem-solving breadth => lower person years (=human resources) => higher productivity Higher the technical content => more resources necessary for the project Context-specific breadth is highly significant, while context-independent breadth is not significantly associated with project performance Greater problem-solving breadth => better development speed Problem Solving Breadth Development Performance System Focus

8. Proposition 2 System-focused organizations will be associated with high levels of development performance in environments characterized by discontinuous technological change. Problem Solving Breadth Development Performance System Focus

9. Proposition 2 empirical evidence System-focused organizations complete more quickly development projects and using fewer resources More technical content => more person years Higher system focus => higher productivity Higher system focus => lower development lead time Only system focus was consistently associated with development performance, in contrast to traditional approaches to project management Problem Solving Breadth Development Performance System Focus

10. Proposition 3 System-focused organizations will be associated with a broader approach to solving problems than other organizations-this will involve information search and processing activities that cross a broader base of existing disciplinary expertise. Problem Solving Breadth Development Performance System Focus

11. Proposition 3 empirical evidence Context-specific breadth and system focus are related, while context-independent is not System-focused organization – has a system-focus index higher than sample average System-focused organizations: –Identified potential problem areas early in the project –Had significantly high robustness of early solutions –Had significantly lower percentage of late problems –Made more proactive use of technology choice and project specification activities Problem Solving Breadth Development Performance System Focus

12. Implementation guidelines Management of technology integration should be a proactive and multidisciplinary process System-focused organization 1.Emphasizes and dedicates adequate resources to technology integration, particularly during project specification 2.Focuses on early generation of knowledge of the potential impact of individual decisions on the broad characteristics of the existing products and production systems 3.Retains past knowledge of related technology integration efforts

13. System-focused organization (1/3) 1.Emphasizes and dedicates adequate resources to technology integration, particularly during project specification –Integration group exists –Integration team dedicated

14. System-focused organization (2/3) 2.Focuses on early generation of knowledge of the potential impact of individual decisions on the broad characteristics of the existing products and production systems –Day-to-day contact with plant –Fix production problems –Manufacturing engineering group not on critical path –Relocation at uncertainty source –Choose production volume equipment –Interacts with system group –Interacts with component groups

15. System-focused organization (3/3) 3.Retains past knowledge of related technology integration efforts –Technical expert exists –Technical expert is project manager –’T’ specialization –Continuous cycle (firm) –Continuous cycle (group)

16. Activities for survival of the effective model (1/2) Organizational culture –Supports the system-focused organization Management support –Tech decisions made by technically literate managers Managed evolution of knowledge system –Focus development based on future integration needs –Retain past knowledge even when integration groups evolve

17. Activities for survival of the effective model (2/2) Current employees –Retention –Further development of T-shaped skillsets Hiring –Focus on T-shaped skillset –Focus on technological ability of relevant managers

18. Conclusion System focus + problem solving breath = development performance Empirical evidence supports the theory To implement and ensure survival of system focus –Form integration groups –Organization and management culture to support technologically literate integration groups –Focus on T-shaped skillsets

19. References Iansiti, M. (1995). Technological integration: Managing technological evolution in a complex environment. Research Policy, 24 (1995), pp. 521-542.