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ManagingTechnolo

gyand

Innovation

ChapterSeventeen

McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Learning Objectives

LO 1List the types of processes that spurdevelopment of new technologies.

LO 2Describe how technologies proceed

through a life cycle.LO 3Discuss ways to manage technology

for competitive advantage.

LO 4Summarize how to assess technologyneeds.

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Learning Objectives (cont.)

LO 5 Identify alternative methods of

pursuing technological innovation.

LO 6 Define key roles in managingtechnology.

LO 7 Describe the elements of an innovative

organization.

LO 8List characteristics of successful

development projects.

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Technology and Innovation

Technology

The systematicapplication of

scientificknowledge to anew product,process, or

service.

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Technology and Innovation

Innovation

change in method or technology

positive, useful departure from previous

ways of doing things.

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Forces Driving TechnologicalDevelopment

1. Must be a need, ordemand, for thetechnology

2.Meeting the need must be theoretically

possible, and the knowledge to do so

must be available from basic science

3. Must be able to convert the scientificknowledge into practice in both

engineering and economic terms

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Forces Driving TechnologicalDevelopment

4. The funding, skilled labor, time, space,and other resources needed to develop

the technology must be available

5. Entrepreneurial initiative is needed toidentify and pull all the necessary

elements together.

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Technology Life Cycle

Technology life cycle

A predictable pattern followed by a

technological innovation, from its inception

and development to market saturation andreplacement.

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The Technology Life Cycle

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Figure 17.1

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Technology DisseminationPattern and Adopter Categories

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Figure 17.2

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Diffusion of TechnologicalInnovations

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Diffusion of TechnologicalInnovations

An innovation will spread quickly if it

Has a great advantage over its predecessor

Is compatible with existing systems,

procedures, infrastructures, and ways of

thinking

Has less rather than greater complexity

Can be tried and tested easily withoutsignificant cost or commitment

Can be observed and copied easily

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Technological Innovation in aCompetitive Environment

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van ages an sa van agesof

Technology Leadership

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Table 17.1

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Technology Followership

A managers decision on when to adopt

new technology also depends on the

potential benefits of the new technology,

as well as the organizations technologyskills

Following the technology leader can save

development expense

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ynam c orces o aTechnologys Competitive

Impact

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Figure 17.3

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Assessing Technology Needs

Technology audit

Process ofclarifying the key

technologies onwhich anorganizationdepends

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Measuring CurrentTechnologies

Emerging

technologies are

still under

development andthus are unproved

Pacing

technologies have

yet to prove their full

value but have thepotential to alter the

rules of competition

by providing

significant

advantage

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Measuring CurrentTechnologies

Key technologies

have proved

effective, but they

also provide astrategic advantage

because not

everyone uses them

Base technologies

are those that are

commonplace in the

industry; everyonemust have them to

be able to operate

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Assessing ExternalTechnological Trends

Scanning

focuses on what can be done and what is

being developed

places greater emphasis on identifying and

monitoring the sources of new technologies

for an industry

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Key Factors to Consider inTechnology Decisions

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Framing Decisions aboutTechnological Innovation

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Table 17.2

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Sourcing and Acquiring NewTechnologies

Make-or-buy decision

The question an organization asks itself

about whether to acquire new technology

from an outside source or develop it itself.

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Internal

development

Purchase

Contracted

development

Licensing

Technology trading

Research

partnerships and

joint ventures

Acquisition of the

owner of the

technology

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Managers should ask the following basicquestions:

1. Is it important (and possible) in termsofcompetitive advantage that thetechnology remain proprietary?

2. Are the time, skills, and resources forinternal development available?

3. Is the technology readily availableoutside the company?

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Technology AcquisitionOptions

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Figure 17.4

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Technology and ManagerialRoles

Chief information officer (CIO)

executive in charge of information

technology strategy and development.

coordinates the technological efforts of the

various business units

identifies ways that technology can support

the companys strategy supervises new-technology development

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h l d i l

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Technical innovator

A person who develops a new technology or

has the key skills to install and operate the

technology

Product champion

A person who promotes a new technology

throughout the organization in an effort toobtain acceptance of and support for it.

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h l d i l

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Executive

champion

An executive who

supports a newtechnology andprotects theproduct champion

of the innovation.

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Organizing for Innovation

Unleashing creativity involves

encouraging creativity and celebrating

failure

Bureaucracy busting is necessary

because bureaucracy is the enemy of

innovation

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3M R l f

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3Ms Rules for anInnovative Culture

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Table 17.3

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Development project

A focused organizational effort to create a

new product or process via technological

advances

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Sociotechnical systems

An approach to job design that attempts to

redesign tasks to optimize operation of a

new technology while preserving employeesinterpersonal relationships and other human

aspects of the work

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ompensa on rac ces n

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ompensa on rac ces nTraditional and Advanced

Manufacturing Firms

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Table 17.4

Lesson 12 Chap017

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