introduction to management of technology
DESCRIPTION
This is an Introduction to Management of Technology field of ScienceTRANSCRIPT
MANAGEMENT OF TECHNOLOGY
TECHNOLOGICAL INNOVATION INNOVATION
MANAGEMENT
TECHNOLOGY FORECASTING
COMPETITIVENESS
TECHNOLOGY TRANSFER & COMMERCIALIZATION
ENTREPRENEURSHIP
KNOWLEDGE MANAGEMENT
COMMUNITIES OF PRACTICE
S&T POLICY
TECHNOLOGY LIFECYCLE
TECHNOLOGY STRATEGY
SCENARIO PLANNING
MOT AS A MULTIDISCIPLINARY FIELD
Natural Science
Social Science
Engineering
Industrial Practice
Business Theory
Management
Science
MOT DEFINITIONSMICRO-SCALE VS MACRO SCALE DEFINITION
MOT contributes to the creation and sustainability of competitive enterprises
“MOT is an interdisciplinary field concerned with the planning, development & implementation of technological capabilities to shape and accomplish the operational & strategic objectives of an organization” (NRC report 1987)
Micro-Scale Definition(The Firm Level)
MOT contributes to shaping the public policy
Macro-Scale Definition(National Level)
MOT is a field of knowledge concerned with setting and implementation of policies to deal with technological development & utilization and the impact of technology on a society, organizations, individual & nature. It aims to stimulate innovation, create economic growth & to foster responsible use of technology for the benefit of humankind” (Khalil 1993)
DRIVERS OF TECHNOLOGICAL CHANGES IN THE 21st CENTURY
How to … Integrate technology into strategy of the enterprise? Get into and out of technologies faster? Evaluate technologies more accurately? Transfer technology from one org. to another? Reduce new product development time? Manage large and complex projects? Manage internal use of technology? Leverage effectiveness of technical professionals?
SOCIETY, CUSTOMERS & STAKEHOLDERS
TECHNOLOGY & SOCIETY
BUSINESS
SCIENCE & DISCOVERY
TECHNOLOGY
Products
Markets
TECHNOLOGY DYNAMICS
BUSINESS
SCIENCE & DISCOVERY
TECHNOLOGY DYNAMICS
Product A
Product B
Innovation
TechnologyPUSH
Market PULL
Technology PUSH Unknown value
Business evolves
Takes time
Market PULL Existing business
Instant value perspective
Lower perceived risk
TECHNOLOGY POWER ZONE & MARKET OPPORTUNITES
The “CORE”
Company Technology PowerZone
Technology
Extensions
New Technology Opportuniti
es
Existing Markets
Emerging
& Adjacent Markets
New Markets The
Entrepreneurial Zone
THE TECHNOLOGY SPACE
Information Science
Physical
Science
Life Scienc
e
Technology Space
• Clear principles/laws
• Predictive
• Quantitative
• Definitive experimentation
• No ‘inertia’
• Modular
• No ‘limits’ ?
• Fast experimentation
• Few principles and laws
• Function of components/ processes
• Systems complexity
• Trends; not ‘laws’
• Slow, ambiguous experimentation
THE TECHNOLOGY SPACE
Information Science
Physical
Science
Life Scienc
e
Manufacturing & Process
Eng.
?
THE TECHNOLOGY SPACE
Information Science
Physical Science
Technology Space Map™: Mapping your company’s
technology strengths
Life Science
Manufacturing & Process Eng.
Choose One
leading
strong
capable
Position
Your Company’s TechnologyPowerZoneTM
THE TECHNOLOGY SPACE
Information Science
Physical Science
Where is your future
competition?
Life Science
Manufacturing & Process Eng.
Choose One
leading
strong
capable
Position
Your Company’s TechnologyPowerZoneTM
?
?
THE TECHNOLOGY SPACE
Information Science
Physical Science
Where is your future
opportunities?
Life Science
Manufacturing & Process Eng.
Choose One
leading
strong
capable
Position
Your Company’s TechnologyPowerZoneTM
HORIZONS OF GHROWTH
Horizon 1
Extend and defend core businesses
Horizon 2
Build Emerging businesses
Horizon 3
Create viable optionsProfit
Time (years)
HORIZONS OF GROWTH
Horizon 1
Horizon 2
Horizon 3
Horizon 1
Horizon 2
Horizon 3
Horizon 1
Horizon 2
Horizon 3
Horizon 1 contains the businesses that generate profits today. These businesses may still have some growth potential but, eventually, they will flatten out or decline. They provide the skills and resources for growth.
Horizon 2 contains the promising new businesses that may or may not be generating profits in the short term. But they are expected to become significant profit generators over the medium term. They tend to be fast-paced entrepreneurial ventures: the business concept is taking root, revenue growth is accelerating, and investment is heavy.
Horizon 3 is the domain of embryonic businesses-options for pursuing future opportunities, some of which will prove successful and contribute significant profits in the long term. They are more than ideas: they are real activities and investment.
REAL WIN WORTH ANALYSIS
INDUSTRY STRUCTURAL ANALYSIS –5 COMPETITIVE FORCES
Rivalry Among Existing
Competitors
Threat of New
Entrants
Bargaining Power of Buyers
Threat of Substitutes
Bargaining Power of Suppliers
The Importance of structural analysis of Industries is to relate companies to the industry or industries, in which they are competing!!
• How to position a company within its industry?
• How to create an effective strategic planning process?
INVENTION VS. INNOVATION
Innovation is the creation of a product, service, or process that is new to an organization. It’s the introduction into the marketplace, either by utilization or by commercialization of a new product, service or process
Invention is either a concept of a creation of a novel technology. It could be a product, a process or a previously unknown system.
DISCOVERY-INVENTION -INNOVATION -MARKET
Has no instantaneouscommercial value.
ScientificDiscovery
Invention
Innovation
Market
May never be developed into marketable products
Adopting Invention
Buying or ignoring the innovation.
INNOVATION CHAIN EQUATION
PROCESS OF TECHNOLOGICAL INNOVATION
IDEA GENERATION•Recognizion of need•Alternative ways to meet the need•Analysis of alternative solutions•Selection of best solution and criteria for selection•Proposal for implementation
CONCEPT DEFINITION•Conceptual definition of product or service•Setting technical goals and priorities•Setting expected performance
•MARKET ANALYSIS•Defining the market•Analysis of current and future needs•Know the customers•Know the competitiors•Window of opportunity
TECHNICAL ANALYSISResources requiredResources availableTime frame for development
BUSINESS PLAN•SWOT•Economic Analysis•Capital •Strategic outlook
Approval bytop management
DEVELOPMENT•Prototype •Testing•Start up needs
TEST MKT•Strategy for market introduction•Marketing innovations•Timing•Measuring response
FULL PRODUCTION ANDCOMMERCIALIZATION•Production•Tooling•Operation control•Supply organization•Logistics
DISPOSAL•Environmental consciousness
NEW PRODUCT DEVELOPMENT PROCESS
THE TECHNOLOGY LIFECYCLE – S CURVE
TECHNOLOGY LIFECYLCE
PRODUCT LIFECYCLE
DISRUPTIVE INNOVATIONS
Sustaining innovators
Disruptive innovators Performance that
customers can utilize
or absorb
time
Per
form
ance
Examples: PC’s
others?
From Innovator’s Solution
DISRUPTIVE INNOVATIONS
Sustaining innovators
Disruptive innovators Performance that
customers can utilize
or absorb
time
Per
form
ance
Sustaining Innovation targets demanding, high-end customers with better performance than what was previously available.
Disruptive innovations redefine the trajectory with products not as good but offer simplicity, convenience, or lower cost.
From Innovator’s Solution
Examples: Xerox and Canon, Toyota and ‘Big 3’, Work stations and Supercomputers
INNOVATION TYPES
Revolutionary (Disruptive, Radical) Innovation
Evolutionary (Incremental) Innovation
Major product/process breakthrough
Incremental product/process improvement.
Create or exchange an industry
Maintain competitive position within an industry
Typically, originate outside of the firms in an industry
Typically, originate within the firms in an industry
Relatively rare Relatively common
Generated by and create opportunities for small entrepreneurial firms to enter an industry.
Improve operations of established firms
ENTREPRENEURSHIP
Technological Progress is frequently sparked by entrepreneurs and entrepreneurial spirit.
Vision, courage, initiative, commitment, persistence, independent thinking, drive, and ambition to succeed.
Most entrepreneurs have appreciation for a particular technology branch, good motivational skills, and commanding personality.
THE ENTREPRENEUR
1. Self starter, defines goals as he or she goes alone.
2. Does the important things by himself or herself.
3. Not a good delegator, strong need to control.
4. Charismatic leader, but hard to follow.
5. Extremely strong drive and capacity for work.
6. Reward oriented for money, visible rewards (cars, boats, clubs, etc.) community admiration for accomplishments, prerequisites.
7. Excellent problem-solving abilities.
8. Innovative thinker.
9. Realistic, takes moderate and well calculated risks.
10. Committed to the company.
THE PROFESSIONAL MANAGER
1. Career oriented with well defined goals.
2. Accomplishes tasks through people.
3. A good delegator and motivator.
4. Good leader and people person.
5. Competitive and politically astute.
6. Reward oriented for cash, visible rewards, status, prerequisites.
7. Experience, ability, and accomplishments are evident.
8. Plays by the rules, not a risk taker.
9. Committed to self, more than company.
CASE STUDY – OSBORNE COMPUTER COMPANY
The personal computer (PC) market began in the middle 1970’s.
Adam Osborne decided to package all the PC components together as a portable computer (July, 1981).
In two months the company had its first $1,000,000 in sales.
By the second year the net revenues reached $100,000,000.
Consumer were interested in a larger, more standard 80-characters display
What do you think happened?!
Company Bankruptcy after 6 months!!
CASE STUDY – OSBORNE COMPUTER COMPANY
Osborne lagged in his R&D efforts to introduce the large screen model
Osborne delayed the generation of needed capital through public offering for 6 months
Kaypro, a competitor, took advantage of the weak points and introduced the larger screen model in the perfect time for market demands.
Osborne announced he will introduce the bigger screen one while still has orders for the 1st model (large inventory) – A serious mistake.
Kaypro offered 5 million shares to the public in 1983 realizing $9 millions from the sale of part of their equity.
CASE STUDY – OSBORNE COMPUTER COMPANYLESSONS
Entering a market with a new innovation gives a company an early advantage in sales (Leader)
New product concept creates new markets or alters old markets
If a company competes with innovation, it should plan to continue competing with innovation
All products have a finite life span. Timely product innovation should be part of every management’s technology strategy
The timing of announcements is very important
Capital formation and cash flow are very important for a growing business
Successful new ventures must be able to cope with the rapid growth and with increasing competition.
CASE STUDY – OSBORNE COMPUTER COMPANYLESSONS
Entering a market with a new innovation gives a company an early advantage in sales (Leader)
New product concept creates new markets or alters old markets
If a company competes with innovation, it should plan to continue competing with innovation
All products have a finite life span. Timely product innovation should be part of every management’s technology strategy
The timing of announcements is very important
Capital formation and cash flow are very important for a growing business
Successful new ventures must be able to cope with the rapid growth and with increasing competition.
TECHNOLOGY FORECASTING METHODS
Present Mid-range Long term
Qualitative
Quantitative
Trend Analysis
Roadmapping
Scanning
Expert Judgment
AdvancedTechniques
Static Dynamic
SIX SUPER TRENDS IN SHAPING THE FUTURE
Technology Progress Economic Growth Improved Healthcare Increasing Mobility Environmental Decline Increasing De-
Culturization
“We humans do not have to accept our fate passively. We can act to create a different future for ourselves- to avert specific problems or create new benefits that are not now on the horizon. Scenarios help us to understand our options for the future.”
Technology Capability Key Players Stage Products
Technologies in your term topic’s PowerZone™
© 2008 Carlson Consulting Group
Information Science
Physical Science
Technology Space:
Mapping technology strengths
Bio- & Life Science
© 2008 Carlson Consulting Group
Mfg. and Process Eng.
Trend Type Time range
Strength Opportunity/Threat
Possible Actions today
How to get more insight
Name of Topic
Score ++ + +- or 0 - --
1 2 3 4 5 6 Strength
Net Tension
1
2
3
4
5
6
Strength(sum abs. values)
Net (algebraic sum)
Tension (Strength minus abs. val. Net)
Trend Coupling MatrixTechnologies
Tren
ds
Alliances, investments, corporate lab
Develop in business
unit
Identify product to
pull technology
High Potential
NTO’s, elaborate
and expand
Sustain and Grow- Internal
& External resources
Not strategic- evaluate as separate opportunity
COMPETITIVENESS
COMPETITIVENESS
“The Degree to which a nation can, under free and fair market conditions, produce goods and services that will meet the test of international markets, while simultaneously maintaining or expanding the real income of its citizens”
(US Council Definition)
COMPETITIVENESS
50
IMD Scoreboard for 2007 for top 25 Countries
Source: IMD Competitiveness Yearbook 2007
0
10
20
30
40
50
60
70
80
90
100
1
USASingaporeChina-Hong KongLuxemburgDenmarkSwitzerlandIcelandNetherlandsSwedenCanadaAustriaAustraliaNorwayIrelandChina MainlandGermanyFinlandTaiwanNew ZealandIsraelEstoniaMalaysiaJapanBelgiumChili
None of the Arab states appear in the top 25 IMD Competitiveness ranking in 2007.
Among top 55 nations studied by IMD, only Jordan is included, as an Arab state, in the 37th placing, which is a considerable recorded improvement.
COMPETITIVENESS
51
IMD Scoreboard for 2007 for top 25 Countries
Source: IMD Competitiveness Yearbook 2007
0
10
20
30
40
50
60
70
80
90
100
1
USASingaporeChina-Hong KongLuxemburgDenmarkSwitzerlandIcelandNetherlandsSwedenCanadaAustriaAustraliaNorwayIrelandChina MainlandGermanyFinlandTaiwanNew ZealandIsraelEstoniaMalaysiaJapanBelgiumChili
None of the Arab states appear in the top 25 IMD Competitiveness ranking in 2007.
Among top 55 nations studied by IMD, only Jordan is included, as an Arab state, in the 37th placing, which is a considerable recorded improvement.
COMPETITIVENESS
52
Worldwide Map by GDP
COMPETITIVENESS
Three Leg System Integration of Economics, Technology and Trade
Trade System
Technology
Development
System
Economic System
Public Policy(Enables or mutes effective system integration of the three
components)
Competitive Enterprises
Sustainable Economic Growth
National competitiveness requires the establishment of a sound economic system, strong technological capabilities and the ability to trade with other nations
COMPETITIVENESS – DIRECTIONS FOR PUBLIC POLICY REFORM
The US Council Competitiveness Pyramid
Investment in Productive Facilities (Factories, R&D,
Technology)
Productivity
Trade
High Standar
d of Living
Proper investment in R&D, education, researchers, factories and in further development of human resources
The efficiency with which products and services are produced must be enhanced through boosting the quality and performance the workforce.
Products and services that cannot be traded in open markets will not produce real economic growth
The target result of the whole economic development process and is considered the central indicator of national competitiveness
LEVEL 5 LEADERSHIP
THE 7 HABITS
