introduction to the management of technology and innovation

Introduction to the Management of Technology and InnovationTMGT1006

G. Brophey

W’08

Discussion structure

1. Innovation, technology management and business. How does it fit together?

2. As aspiring managers why should we care about innovation?

3. Some innovation fundamentals, definitions, types, metrics

4. Innovation can be looked at in a variety of ways

5. Where can you learn more about the topic?

Technologymanagement

Financialmanagement

Personnelmanagemen

t

Marketingmanagement

Operationsmanagement

Where does it fit? - Technology management and the functional business areas

Organizational Strategy

Technologymanagement

Financialmanagement

Personnelmanagemen

t

Marketingmanagement

Operationsmanagement

Where does it fit? Technology and Strategy

Where does technology management and innovation management fit? Organizational Strategy

Technologymanagement

Financialmanagement

Personnelmanagemen

t

Marketingmanagement

Operationsmanagement

Non mission-critical technologies

Mission-critical technologies

Innovation ManagementIdea Generation, Evaluation, Implementation

As aspiring managers why should we care about innovation? Leading Western economists Solow and Lipsey have

assessed economic history and found that economic growth derives primarily from technological change (Solow,1988) (Lipsey, 1996).

Solow found that gross output per hour of work in the US economy doubled between 1909 and 1949 with 7/8ths of this increase directly attributable to technological change.

Solow won a Nobel prize for his work. What about recently though?

Based on a Google and MSN search (10/06) looking for Ontario manufacturer’s mission statements that contain; “Innovative" or "New Ideas" or "Creative" or "Creativity", or "Leading Edge" "or "Latest Technologies" or "Continuous improvement"

Google MSNOntario Die yes yesAmsino yesPrecision Metal Cutting noWin-leader Corp yes yesCompuSys Solutions noqdata noUniversal Handling Equipment yesNeenah Paper yesSolar Direct no noDelta Elevator yesAkron Brass noPure Energy Visions Corporation yes yesCAMI yesEdwards Doors noKnoch Manufacturing yesActive Burgess yesSPI yesCromark International yesRiverside Brass yesBTI noFibertec yesLeakpro yesReal Action paintball noNewcomb Spring yesInterlock yesStelwire noDalsa yesEKO yesCarrier Vibrating Equipment noGrenville Castings noDryvit yesDesign Shelter inc noSpirol noJVL Corporation yes12 volt direct noTotal yeses 21Total nos 14

As aspiring managers why should we care about innovation?

If this quick sample shows innovation is important to small Ontario manufacturer's, what about these other industries?

Music Communication Mining Automotive Steel Biotech Health careIs innovation important to them?

Some innovation fundamentalsManagers do not agree on a lot of the

aspects of innovation (Storey, 2000)

Innovation types Product, process, service, radical, incremental,

explorative, exploitative, technical, administrative, variation, reorientation, line extension, breakthrough, etc., etc., etc.,!!!

Innovation can be looked at from a variety of levels The innovation process A piece of the innovation process An individual innovation An overall innovation program (e.g. How to figure out

whether an R&D department is doing a good job?) The overall firm The industry (autos or communications or mining) Region (Ontario vs. Saskatchewan) National (Canada vs. U.S) Position in the technology trajectory (From sheet

music to MP3 files – Are we half done yet? What’s next?)

Looking at innovation as a process

Previous Research -Idea generation

Idea evaluation

Piece of innovation process level

How do you know you are good or bad at __________?

Idea generation or acquisition?

Idea evaluation?

Idea implementation?

Per innovation

As a project manager what definitions and metrics would you use to decide whether your innovation project was a success?

For product innovations? Process innovations? Service innovations? Combination innovations?

Per innovation programme

As a manager of multiple innovations how do you evaluate success?

How would you decide whether to agree to a request to bump R&D spending by 10% this year? What things would you want to look at?

At the firm level?

As senior managers, is innovation always a good thing to do?

Olson et al, (2005) suggests otherwise.

They found that for some businesses, financial performance could be negatively impacted by an orientation towards product innovation. Can you identify what sort of business they might be referring to?

Schools of thought on how to innovate at the firm level New economy model – disruptive vs.

sustaining innovations Innovate in order to learn to innovate Intrapreneurship can solve everything Organic Disciplined Organic then Disciplined

New Economy Model

New Economy Model

New Economy Model

New Economy Model

Schools of thought on how to innovate New economy model – disruptive vs.

sustaining innovations Innovate in order to learn to innovate Intrapreneurship can solve everything Organic Disciplined Organic then Disciplined

Innovation can be looked at from a variety of levels The innovation process A piece of the innovation process An individual innovation A overall innovation programme (e.g. how to figure out

whether an R&D program is doing a good job?) The overall firm The industry (autos or communications or mining) Region (Ontario vs. Saskatchewan) National (Canada vs. U.S) Position in the technology trajectory (From sheet

music to MP3 files – Are we half done yet? What’s next?)

At the level of the technology trajectory

Study and prediction of where enabling technologies are going next. Issues of publicity, scalability, required absorptive capacity all affect innovation diffusion rates. Some enabling technologies currently in play; Human Genome GIS RFID Convergence

Where can I learn more about innovation and technology management?Right here in your BBA program. Technology Management Stream =Core BBA

courses + 5 core TMGT courses+ 4 TMGT electivesCore TMGT courses, ADMN 3837 Organizational Development and ChangeTMGT 2106 Systems Analysis and DesignTMGT 2807 Project Management TMGT 3006 Technology, Business and SocietyTMGT 4006 Management of Innovation and

Technology

Choose 4 from these electives Accounting Information Systems Information Systems Auditing and Assurance Genetics Genetics and Society General Chemistry Introduction to Computer Science Programming in C++ Object Oriented Programming Database Maintenance Introduction to Environmental Science Discrete Mathematics I Reasoning and Logical Argument General Physics Introduction to Psychology I Behavioural Neuroscience Fundamentals of GIS and Computer Mapping Programming for Business Field Placement in Technology Management Networking in a Business Environment E-Business Current Trends in Technology Management

Summary

Innovation is tough to manage partly because it is tough to measure and partly because it requires comprehensive skills to manage it.

Innovation is where the action is in terms of economic growth and firm survival and it has many exciting career possibilities.

Check out the TMGT stream here at NipU Check out www.IDEO.com for a good

example of the type of work involved with innovation