Cambridge Institute for Manufacturing Centre for Technology Management David Probert

1. Cambridge Institute for Manufacturing Centre for Technology Management David Probert

2. Topics • Institute for Manufacturing • Centre for Technology Management • - Aims • - Activities • - Research portfolio

3. Manufacturing Engineering Tripos Manufacturing Leaders’ Programme Preparing people for 21st Century Manufacturing Advanced Course in Design, Manufacture & Management Institute for Manufacturing - Education Aim: Increasing the number of able people choosing manufacturing as a career through innovative education programmes

4. Institute for Manufacturing - Research Centre for Economic and Manufacturing Policy Centre for International Manufacturing Aim: Influencing a shift towards high value-added manufacturing activity through collaborative research with industry Centre for Strategy & Manufacturing Performance Centre for Business Performance Centre for Technology Management Research and collaboration with industry Manufacturing, Automation and Control Group Production Processes Group

5. Institute for Manufacturing - Networking & Dissemination Workshops, seminars, lectures & conferences Aim: Enhancing the economic and public profile of manufacturing through targeted networking and dissemination Publications, workbooks & practice guides Facilitation services Working with the Institute Collaborative projects

6. Where we fit within the University Department of Engineering Manufacturing and Management Division • Centre for International Manufacturing • Centre for Technology Management • Centre for Business Performance • Centre for Strategy & Manufacturing • Performance • Centre for Economic & Manufacturing • Policy • Production Processes Group • Manufacturing Automation & Control • Group

7. Technology is both a major driver of change and a key element in renewing growth and maintaining long-term profitability. Some elements of the challenge posed by technology are : • increasing pace of technology development • sources of technology are diverse and international • increasing complexity of technology • increasing cost of R&D alliances? • globalisation of product competition • how to structure R&D? • dilemma of shortening product lifecycles vs lengthening skill development timescales • impact of information technology Centre for Technology Management The Technology Challenge - Some Characteristics

8. Centre for Technology Management • Industrial network • - Collaboration • - Forums Practice • Practical application • of tools & techniques • Exchange of best • practice • Leading edge research • Teaching & training • Industry issues • & requests • Academic issues • and questions Centre for Technology Management Research • International academic community • - Emerging ideas • - Underpinning disciplines

9. Centre Events • Forums • Workshops • Training & education • Annual symposium • - 13-14th July 2000, Cambridge: Technology Planning • - Technology roadmapping workshop

10. time Mapping Development Application Industrial Context Research Project Developing ideas, frameworks, tools, etc ..... Academic Context Working Papers Conferences Dissemination Activities Literature Research approach

11. Management & business processes Centre for Technology Management Industry & technology evolution Innovation & change Technology Management Research at Cambridge

12. Management & business processes Centre for Technology Management Industry & technology evolution Innovation & change Technology Management Research at Cambridge • TM: a process approach • R&D project selection • Strategic technology management • Auditing decision making quality • Technology Selection • TM across interfaces • Integration of marketing into NPI • processes Key: Present projects Past projects Future projects • New product introduction for SMEs • Product planning • World class software delivery • NPI collaboration • Integrated engineering & industrial design • Strategic management of software technology • Strategic management of holonic manufacturing technology • Technology transfer • in collaborative R&D • Strategic make or buy • TM & KM for sustainable production • Industrial make or buy decisions • Strategic management of organisational competences • KM in international collaborativebusiness networks • Technology change • Innovation in advanced materials technology • Technology foresight • Engineering reuse • Mobile communications • Innovation management in high-tech firms • Technology evolution in high-tech firms • Growth & co-evolution in high-tech enterprises

13. Industry Research Dissemination Require- ments Tools & Techniques Technology Management Network Best Practice Education Sector knowledge Co- ordination Resources Academia Collaboration EPSRC Technology Management Network

14. Network Structure Technology Management Community Industry Universities Network Co-ordination Centre for Technology Management

15. NPI ? Customers Suppliers Technology Management Domain MvB

16. Sources of Technology Technology Generation Creation Acquisition Strategy £ Know-How Application Technology Exploitation Licensing Markets/Customers Technology Management Generation & Exploitation processes

17. What are our technological assets? • How to manage them for business benefit? • What new technologies are relevant to our business? • How best to acquire and exploit new technologies? • How to protect technological assets? Management of Technology Key Questions

18. Identification Technology Management Process Framework External Environment External Environment Scanning Monitoring Technical benchmarking Innovative concept generation Specific data collection Selection Protection Forecasting Portfolio balancing Proactive approaches Planning/Project selection Next product/process Reactive approaches Internal Urgent problem solving Environment Acquisition Exploitation Licencing/External/Cross-business External purchase or transfer New product or process development Collaborative development Incremental development Internal transfer Improve suppliers/customers Internal development External Environment

19. Technology Management in the BusinessRelated Processes Markets / Customers time Technology Acquisition Products/services Technology Base Strategic Management Resources Leakage and Obsolescence Operational Management Doing the business Strategic Management Keeping the business on track Technology Management Managing the know-how

20. are technologies which are embodied • within the product • are technologies which facilitate the • design processes • are technologies which facilitate the • production processes • are technologies which facilitate the • management or business processes Characterising Technology #1Categories Component Design Production Information

21. Characterising Technology #2The Technology Spectrum • Skills • Systems • Organisation • Materials • Components • Equipment • Processes Processes “Soft” “Hard” Organisation Materials

22. • At early research stage • Emerging in other industries • Competitive impact unknown but promising Emerging • Potential to change the basis of competition • Not yet embodied in a product or process • Competitive impact likely to be high Pacing • Embodied in products and processes • Offer basis for differentiation • High competitive impact Key • Essential to the business • Widespread and shared • Little competitive advantage, if any Base Arthur D Little Inc Characterising Technology #3Competitive Impact

23. Performance Characterising Technology #4Technology Maturity Embryonic Growth Mature Ageing Time / investment

24. Skills • Systems • Organisation • Materials • Components • Equipment Component • are technologies which are embodied • within the product • Processes • are technologies which facilitate the • design processes Design Processes Production • are technologies which facilitate the • production processes • are technologies which facilitate the • management or business processes Information Organisation Materials “Soft” “Hard” • At early research stage • Emerging in other industries • Competitive impact unknown but promising Emerging • Potential to change the basis of competition • Not yet embodied in a product or process • Competitive impact likely to be high Pacing Performance • Embodied in products and processes • Offer basis for differentiation • High competitive impact Key Embryonic Growth Mature Ageing • Essential to the business • Widespread and shared • Little competitive advantage, if any Base Time / investment Characterising Technology #5A multi-faceted resource

25. Technology Management .. .. is concerned with ensuring that all necessary technology is available within the business in a timely manner .. addresses the processes of understanding and applying technology within the business for profit Technology Management Managing the Know-How

26. Technology and Technology Management A central issue is communication:• Between technologists & technologists• Between technologists & business managers• Between different businesses

27. Technology .. .. may be classified in three ways : as products, processes and people. Here, people is a shorthand way of referring to the management methods, knowledge bases and modes of thought and action which underpin given products and processes. [Whipp, 1991] • Technology .. • .. in a firm is the knowledge of the productive capabilities of the firm’s businesses” • [Betz, 1992] Technology .. .. is the process which allows a company to say “we know how to apply science and engineering to ... ” in a way which clarifies what the technology does for the business instead of just stating what the technology is [Roussel et al, 1991] Defining Technology The Know-How of the Business

28. Assessment Procedure Technology Management Need Span of Technology Management activities Planning Strategic Stage 1 Overview Process Assessment Feedback Feed- back Planning Process Stage 2 Overview Drill Down Feedback Planning Process Stage 3 Transfer Transfer Investigation Feedback Improvement Plans Research - Example #1 Technology Management Process Assessment Procedure (TMAP)

29. Research - Example #2 Strategic Technology Management - Linking technology resources to company objective Aims 1) To develop integrated practical approaches which will assist managers in dealing with areas of current difficulty in the strategic management of technology 2) To develop a practical framework, grounded in system thinking, which gives an overview of technology practices and theories of the firm and supports understanding and application of the approaches Tools & Techniques Frameworks

30. time Business / Market Product / Service Technology Technology Roadmapping Benefits: • Effective communication of • developed technology • strategy, and support for • technology planning • Attractive to industry - many • companies have tried, some • with notable success Challenges: • How to explore linkages between market, product and technology, now and in the future? • How to develop strategy? How to prioritise and schedule technology investments? • How to implement? How to integrate? How to maintain? • ‘TRM start-up process’ development and testing • Technology planning framework development • Survey of technology planning & TRM practice and need

31. TRM ‘start-up’ process Workshop 2 Product Workshop 1 Market Workshop 3 Technology Workshop 4 Roadmapping • Performance • dimensions • Market / • business • drivers • Prioritisation • Product • feature • concepts • Grouping • Impact • ranking • Product • strategy • Technology • solutions • Grouping • Impact • ranking • Linking • technology • resources • to future • market • opportunities

32. Roadmap Input Data Development Technology Route Map time Business / Market drivers Business / Market Product features Product features Product / Service Technology solutions Technology Analysis Grids

33. “Know-why” Business Level Focus: Organisation, networks and business portfolio; marketing & finance Process: Strategy development and implementation to deliver value into the future Organisation / Context “Know-what” Product Level Push mechanisms - capabilities (knowledge flows) Pull mechanisms - requirements (knowledge flows) Focus: Product /service portfolio and platforms; manufacturing & operations Process: Innovation, and new product development and introduction over time “Know-who” “Know-how” Technology Level Focus: Technology-science-engineering base / platforms Process: : Technology management (ISAEP) to maintain the technology base Time “Know-when” Technology Planning Framework - Linking Technology Resources to Company Objectives

34. Research - Example #3 Developing a Make or Buy Strategy The Competitiveness/Importance matrix Importance to Business High Medium Low Strong Make ? Competitive Position Neutral Invest/create a partnership Buy Weak

35. External Environment • Competition • Availability of Suppliers • Social Elements • Political Elements Triggers • Cost reduction • Lack of capacity • Reduce time to market • Increase quality • New product introduction • Focus investment • Balance capabilities • Skills shortage • Increase responsiveness MAKE-OR-BUY? Technology & Manufacturing Processes Costing Sourcing Skills & Systems Areas • Investment • Return on • investment • Payback period • Total acquisition cost • Capacity • Control • Flexibility • Complexity • Life cycle • Capability of suppliers • Reliability of suppliers • Supply chain management • Know-how • Expertise • Policies/procedures Factors • Cost savings • Capacity utilisation • Time to market • Quality • Flexibility Performance Measures* • Economical • Elements • Environmental • Elements A Framework to Support Make or Buy Decisions

36. Scope NPI research addresses any activity associated with the management of the product life-cycle Recent and current projects New Product Introduction in SMEs NPI Collaborations Good Design Practice Program (with RCA) Research - Example #4 New Product Introduction

37. Aims & Objectives Improve the understanding of the processes of introducing new products to market when significant development work is provided by new supplier / customer combinations Develop and test self-help workbooks for both supplier and customer that will assist them in managing the processes of starting, operating and withdrawing from product development collaborations. NPI Collaborations project

38. Aims & Objectives Specify the elements of current good design practice, defining success factors for the process outcome Create and validate a generic process for the creation of new products using business, product planning, industrial design and product design inputs Identify any major issues affecting the adoption of good design practice by small and medium sized companies Good Design Practice Program

39. Elements of Good Design Practice

40. TECHNOLOGY BENEFIT COST Research - Example #5 R&D Project / Technology Selection at BAe Portfolio management / project prioritisation tool aims to capture subjective judgement in an objective framework: CUSTOMER FOCUS • aims to capture the • value to the business • of meeting customer • requirements • aims to capture the value • of R&D to the company

41. Future activities • Medium term themes • software technology management • cross boundary aspects / technology transfer • valuation • Long term themes • technology strategy, new product introduction, sustainability/reuse, foresight, cultural & behavioural aspects • Long term emphasis • metrics, tools, processes, decision support

42. Centre for International Manufacturing • Manufacturing mobility • Fitness for transfer • Knowledge management in international • manufacturing operations • Setting up an international • manufacturing joint venture • International manufacturing • location decisions • Developing international • manufacturing capabilities International Manufacturing Capabilities Capability learning International Manufacturing Strategy Formulation Network Design Network Operation Strategy • Evaluating the impact of host • country characteristics on • manufacturing decisions • Business unit planning: • the impact of host country • characteristics Information learning Location Issues • International manufacturing networks