1. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Global Technology Management Chapter 10

2. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology "Technology is, without doubt, one of the most important contributory factors underlying the internationalization and globalization of economic activity" Dicken (1998) Technology is vital to transnational strategy and competitive advantage

3. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology driven change ICTs have encouraged: –convergence of demand –co-ordination of global activities Flexible manufacturing technologies - greater variety of designs without sacrificing economies of scale. Technology - –has helped increase turbulence in the environment –shortened product life cycles

4. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology definition Technology = the application of science in business Technology can give a competitive advantage - it is a strategic asset A business’s ability to manage and exploit its technology can represent a core competence

5. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology and products New products New functions New features Greater reliability Lower costs

6. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology and production Shorter product development times - CAD/CAM Increased quality Lower costs

7. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Technology strategy technology audit; sourcing new technology; exploiting technology; protecting the competitive advantage - patents, trade secrets

8. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. R&D decisions the level of R & D expenditure; the focus of R & D effort; the location of R & D i.e. the centralisation/decentralisation issue; the nature of R & D undertaken at subsidiary level; the transfer and diffusion of R & D results throughout the global network.

9. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Successful technology management Maidique and Hayes (1984) identified 5 themes among successful businesses: –Business focus - IBM, Boeing, Intel (integrated circuits), Genentech (genetic engineering) –Adaptability - long term focus, but also with the capability for rapid change. –Organisational cohesion –Sense of integrity -with interest groups. –‘Hands-on’ top management

10. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. ICT Convergent IT Co-ordination - new configurations Knowledge management and organisational learning Collaboration - virtual corporations

11. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Configuring ICT in global business Frankovich (1998) four configurations: –Centralised: strong control from headquarters; –Replicated: identical country systems; –Autonomous: dissimilar and uncoordinated country systems; –Integrated: compatible and co-ordinated systems." Needs to link to strategy of business

12. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Culture in the Diffusion, Acceptance, and Use of IT: Theory development in the areas of adoption, diffusion, and use particularly focusing on cultural issues; Empirical studies of culture focusing on adoption, diffusion, and/or use; Cross-cultural comparisons of IT adoption, diffusion, and/or use. Global Customer Relationship Management: International issues in CRM development and implementation; Viability of CRM programs in other nations & cultures. Global Electronic Commerce: New business models for global electronic commerce, Critical success factors for global e-commerce; Economics of e-commerce; and the practical issues and best practices involved with e-commerce in various applications. Global ERP Systems: Configuration, implementation, and administration of ERP systems in the global environment; Strategic fit to organization structure; Cultural issues; System configuration; training; Government rules and regulations. Global IT Education: Theoretical foundation for global education, Methods for integrating Global IT material into programs: Design, implementation, and assessment of GIT curricula within programs; Best practices; International cases. Global IT and Business Process Outsourcing: Key success/failure factors in global outsourcing; Social- cultural issues in global outsourcing; Best practices for evaluating and selecting a service provider; Economics of outsourcing; Managing outsourcing relationships. Global Software Development: Global IS development strategies; Global software teams; Best Practices; Project management issues; 24 x 7 and follow the sun strategies. IT for Government and National Development: Use of IT to improve national economies; E-Government initiatives; B-G and G-B electronic commerce; Use of IT to foster transparency and democracy; Government intervention and standards for national IT; intergovernmental IT; Socio-political development and IT. Mobile Commerce: Mobile commerce models in new and emerging economies; Usability and human computer interaction issues related to mobile devices and applications; Wireless business models and impact on different countries. Societal Impacts of IT: Virtual communities; Digital Divide (who is being left behind); Impact of the Internet on Families/Workplace/Society; Cyber-culture; Cyber-democracy; Computer crime.

13. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. Attributes of Winning Technology Companies.. 1.Large market opportunities - it is better to have 10%, and rising, market shareof a $1 billion market than 100% of a $100M market 2. Good technology/service that offers a significant value/service proposition to its customers 3. Simple, direct mission and strong culture 4. Missionary (not mercenary), passionate, maniacally-focused founder(s) 5. Technology magnets (never underestimate the power of great engineers) 6. Great management team / board of directors / committed partners 7. Ability to lead change and embrace chaos 8. Leading/sustainable market position with first-mover advantage 9. Brand leadership, leading reach and market share 10.Global presence

14. Global and Transnational Business: Strategy and Management 2 nd Edition © John Wiley & Sons Ltd. 11. Insane customer focus and rapidly growing customer base 12. Stickiness and customer loyalty 13. Extensible product line(s) with focus on constant improvement and regeneration 14. Clear, broad distribution plans 15. Opportunity to increase customer “touch points” 16. Strong business and milestone momentum 17. Annuity-like business with sustainable operating leverage assisted by barriers-to-entry 18. High gross margins 19. Path to improving operating margins 20. Low-cost infrastructure and development efforts