Why Innovate, Management of Technological Innovation 1 Why Innovate?
Post on 21-Dec-2015
225 Views
Preview:
Transcript
Why Innovate, Management of Technological Innovation
2
Management of Technological Innovation
Lesson 2Why Innovate?
• Changes in World Industry
• Why Innovate?
Why Innovate, Management of Technological Innovation
3
World
Region
HKSAR
You as Innovator
andTechnicalManager
DragonsJa
pan
China
Main
land
Why Innovate, Management of Technological Innovation
4
Factors of Production and Economic Growth
• Capital (Now, reasonable in HK)
• Raw materials (Nil in HK)
• Land (Very little in HK)
• Labor (Limited in HK)
• Technology or Technovation (Some technology transfer in the past but very little
technovation in HK)Technology and its development need to be managed
effectively for the generation of wealth and resources.
Why Innovate, Management of Technological Innovation
5
Change is the only thing constant these days.
Much of this change is due to growth in technology.
Growth in technology takes place through continual innovations.
Why Innovate, Management of Technological Innovation
6
Changes in world industry• Shorter product life cycles• Shorter product changeover cycles• Higher rate of new product development• Shorter production runs• Quality, and productivity-quality integration
(ISO 9000, zero defects)• Company-wide total quality management (TQM)• Equipment and process technology as a strategic
resource• Flexible manufacturing systems (FMS)
Why Innovate, Management of Technological Innovation
7
• Emphasis on flexibility and innovativeness beyond efficiency and productivity
• Emphasis on customer responsiveness, agility and speed to market
• Worker training and worker participation• Extensive use of CAD, CAM, rapid prototyping• Increasing use of decision support systems (DSS),
expert systems, simulation, etc.• Increasing use of information technology
Why Innovate, Management of Technological Innovation
8
Dominant Trends
• Localization• Automation• Knowledge-intensive nature of production
and service related activities• Faster metabolism through IT and Internet• Transnational strategic alliances between
firms, organization networks and inter-organizational structures.
Why Innovate, Management of Technological Innovation
9
Value of Life: What is important (Japan) [M. Takahashi, 1999]
0
10
20
30
40
50
60
%
MaterialAbundancePsychologicalAbundance
Why Innovate, Management of Technological Innovation
10
Relationship between human beings and nature (Japan) [M. Takahashi, 1999]
01020304050
%Use itFollow itConquer it
Why Innovate, Management of Technological Innovation
11
Common problems in industry
• Over-capacity of production facilities• Increasing market segmentation and saturation• Changing customer values and more exacting user
requirements of cost, quality and performance• Emergence of unexpected competitors across the
world• Unsteady currencies, exchange rates, and markets
Why Innovate, Management of Technological Innovation
12
Toyota’s approach to car manufacturing :
‘It’s a wrong notion to believe that mass production will guarantee you less cost. That was true in the 1960s,in those days, where there was a high demand. But the notion has become a myth that no longer applies in the 1980s and beyond. Now production capacity exceeds demand. For some reason many people in the world still believe in this myth and they still take for granted that if they increase mass production they can reduce costs.’
Why Innovate, Management of Technological Innovation
13
Productivity
Quality
InnovationIndustrialProgress
Why Innovate, Management of Technological Innovation
14
Innovation is not easy
Although innovation is increasingly seen as a powerful way of obtaining competitive advantage and more secure approach to defending strategic positions, success is not guaranteed. After all, innovation is by its nature a risky business. And we need to remember that there is a great deal of uncertainty in innovation, made up of technical, market, social, political and other factors.
Why Innovate, Management of Technological Innovation
15
Innovation is essentialBecause the innovation process is so uncertain,
it sounds that it is forgivable for many organizations to decide not to innovate. But, the approach of doing nothing is rarely an option, especially in the rapid change of the technology and the economics.
Why Innovate, Management of Technological Innovation
16
We have no option but to learn to manage innovation
So the question is not one of whether or not to innovate but rather of how to do so successfully. What lessons can we learn from research and experience, and is there any pattern to these which might be used to guide actions? (Visit the case Study on the “Decline of Wang” here)
Why Innovate, Management of Technological Innovation
17
Per Capita GDP Ranking, 1997
1. Luxembourg
2. USA
3. Switzerland
4. Kuwait
5. Hong Kong (US$26,400)Ref: 1st Report of Chief Executive’s Commission on Innovation and
Technology, September 1998.
Why Innovate, Management of Technological Innovation
18
% Share of Mfg in HK GDP
0
5
10
15
20
25
30
1975 1980 1985 1990 1995 2000
Why Innovate, Management of Technological Innovation
19
% Share of Mfg in HK Employment
0
10
20
30
40
50
60
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
Why Innovate, Management of Technological Innovation
20
Gross Output of HK Mfg SectorHK$ Billion
0
50
100
150
200
250
300
350
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996
Why Innovate, Management of Technological Innovation
21
Value Added Per Person (HK$)
0
100000
200000
300000
400000
500000
600000
700000
1982 1984 1986 1988 1990 1992 1994 1996
MFG
Fin. & Real Estate
Poly. (Fin. & RealEstate)
Poly. (MFG)
Why Innovate, Management of Technological Innovation
22
Is manufacturing hollowing outin Hong Kong?
Or,Is there an industrial
transformation?
Why Innovate, Management of Technological Innovation
23
Transformation: Mfg Moves to the Mainland To Lower Costs
• Over 4M workers in the mainland
• 1995: HK exports to mainland up by 20%
• 1995: 71% of domestic exports and 40% of re-exports attributed to outward processing activities in the mainland
• 1995: 74% of imports and 82% re-exports of mainland origin
Why Innovate, Management of Technological Innovation
24
A quote from the second report (1999) of HKSAR Chief Executive’s Commission on
Innovation and Technology “There is strong competition [to HKSAR] from
neighboring economies for Hong Kong’s regional role in trade, finance, transportation and communications. With respect to manufacturing, Hong Kong must strive to support and further develop high-value activities. Hong Kong is also facing stiff competition from low-cost economies. A fundamental challenge is how Hong Kong should position itself in the knowledge-based, global economy of the 21st century.”
Why Innovate, Management of Technological Innovation
25
Maslow’s Theory of Human Needs
Physiological Needs
Safety Needs
Belonging and Love Needs
Esteem Needs
Self-Actualization
Needs
Why Innovate, Management of Technological Innovation
26
Human Needs: Maslow’s Theory
• Physiological needs, Safety needs, Belonging and love needs, Esteem needs, and Needs for self-actualization.
• Esteem needs prompt users to move to new products quickly - you buy a new shirt you like even if you already have too many shirts.
• Modern customers are demanding more product variety and more innovative products.
Why Innovate, Management of Technological Innovation
27
Missionaryyou work enthusiastically towardsyour own vision of the organization
Self-fulfilling(and) you identify your own values and goals, and work towards them.
Proactive(and) you identify with the goals you have been set, and activelywork towards them.
Reactive(and) you understand and worktowards the goals you have been set,responding to constraints and limitations
Sluggish(and) you do what you are told(when the boss is looking)
Free
Controlled
Intrinsically motivated• you respond to your own vision• you are creative with high motivation
Extrinsically motivated• you respond to the expectations of others• you are less creative with low motivation
[Petty 1997]
Why Innovate, Management of Technological Innovation
28
SuccessSo I create originaland workable ideas
Self-beliefI trust my abilitiesmy taste, andmy judgement
CourageI am prepared to • take risks• be original• persevere in the face of difficulties
Why Innovate, Management of Technological Innovation
29
Controlling Management Style
It is necessary to control you
You feel powerless,unappreciated, and perhaps resentful
You do poor work.Your self-esteemand motivationfail
top related