Integrating Technology and Strategy A General Management Perspective

1. Integrating Technology and Strategy A General Management Perspective

2. Outline • Introduction • Key concepts concerning technological innovation and their interrelations • The integration of technology with business and corporate strategy • A framework for auditing and assessing the firm’s innovation capabilities • Conclusion

3. Introduction • To deal with issues of technology and innovation • Key task of the general manager • Acquire, develop, and allocate an organization’s resources • Develop and exploit the firm’s capacity for innovation

4. Outline • Introduction • Key concepts concerning technological innovation and their interrelations • The integration of technology with business and corporate strategy • A framework for auditing and assessing the firm’s innovation capabilities • Conclusion

5. Definitions • Discovery and invention • We discover what before existed, though to us unknown; we invent what did not before exist. (Is it true/real?) • Technology • The theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as their production and delivery system. (Can it do the job?) • Technical innovation • Using technology to develop commercial products and services. (Can it do the job profitably?)

6. Technological Entrepreneurship • Entrepreneurship is a fundamental driver of the technological innovation process. • Technological entrepreneurship refers to activities that create new resource combinations to make innovation possible, bringing together the technical and commercial worlds in a profitable way. • Technological entrepreneurship can involve one individual (individual entrepreneurship) or the combined activities of multiple participants in an organization (corporate entrepreneurship)

7. Technical world Technological entrepreneurship Commercial world ＝ Administrative capabilities ＋ Results Invention/discoveries/technologies Technological innovation Product/process development activities Research activities Development activities Market development activities Activities Tinkering/ experimenting The Relationships among Key Concepts Concerning Technological Innovation

8. Outline • Introduction • Key concepts concerning technological innovation and their interrelations • The integration of technology with business and corporate strategy • A framework for auditing and assessing the firm’s innovation capabilities • Conclusion

9. Integrating Technology and Strategy • Perspectives on strategy • Positive view --Actuarial strategy reflects management beliefs • Normative view -- what the firm’s strategy should do • Product-market view-- how the firm competes with its product • Resource-based view -- how the firm secure the factors needs

10. Generic Strategy Overall cost leadership Overall differentiation overall Focus-segmentcost leadership Focus-segment differentiation focus The areas of competition The way of creating the value

11. Generic Strategy IBM Benetton

12. The Product / Technology Matrix

13. Developing the Technology Portfolio Draw Bet Warrant the firm’s full commitment Be positionedambiguously Technology importance Cash in Fold Should be examined carefully Reconsider its investments Relative technology position

14. Matching Business & Technology Portfolios Business Technology Attractiveness Importance B A A B Competitive position Position

15. Representative Technologies in a Firm’s Value Chain

16. Technology Life Cycle & Competitive Advantages Life Cycle Importance of Technologies for Competitive Advantages Emerging Technologies Have not yet demonstrated potential for changing the basis of competition. Packing Technologies Have demonstrated potential for changing the basis of competition. Key Technologies Are embedded in and enable product/process. Have major impact on value-added stream. Allow proprietary/patented positions. Base Technologies Have minor impact on value-added stream; common to all competitors; commodity.

17. Outline • Introduction • Key concepts concerning technological innovation and their interrelations • The integration of technology with business and corporate strategy • A framework for auditing and assessing the firm’s innovation capabilities • Conclusion

18. Innovative Capabilities Audit Framework • Innovative Capabilities • The comprehensive set of characteristics of an organization that facilitate and support innovation strategies. • Business Unit • Corporate

19. Business Unit Level Resource availability Understanding competitors’ innovative strategies and industry evolution Understanding business unit technological environment Business unit innovative strategies Business unit structural and cultural context Business unit strategic management capacity

20. Corporate Level Resource availability and allocation Understanding competitors’ innovative strategies and multi-industry evolution Understanding corporate technological environment Corporate innovative strategies Corporate structural and cultural context Corporate strategic management capacity

21. Outline • Introduction • Key concepts concerning technological innovation and their interrelations • The integration of technology with business and corporate strategy • A framework for auditing and assessing the firm’s innovation capabilities • Conclusion

22. Leadership Conclusions