D56 Course Goals

1. D56 Course Goals • understand cultural context of international technology relationships • study how culture impacts various tech. management issues • identify practices and lessons learned by top firms to deal with these issues In Order to: • avoid costly mistakes • build needed capacity • benefit from diversity

2. Culture Issues in Global Technology Relations - Course Structure Cultural Issues History Social Language Norms Etc. Structures Values Regions & Countries China Japan W. Europe Israel Latin America Eastern Europe Emerging Nations Technology Relations Technology Transfer Technology Sourcing Standards Collaborations Legal, IPR, Regulatory Negotiations Lectures Speakers Readings Projects

3. Foundations 1. Culture (old D56) 2. Technology management (D59) 3. Culture Technology • Cases 4. Technology Transfer and Sourcing 5. Technology Standards; Collaborations; Roadmapping 6. Legal & regulatory issues; IPR; Negotiations • Regional Experiences 7. Asia (China, Japan) 8. Western Europe/Israel and Latin America 9. East/Central Europe; Emerging/Developing economies • Projects 10. Oral reports

4. DEFINING CULTURE • Integrated and contextually dependent system of learned values • Decision making, behavioral and emotional patterns and artifacts are characteristic of the society • Describes social group’s total way of life, what/how they think, say, do and make • Their customs, language, material artifacts, shared systems of attitudes, values and feelings • Is learned and transmitted from generation to generation

5. Cultures Vary in how Members Perceive: • People - selves, ethos - others, stereotypes • World - dominance, harmony - knowledge, thought • Human Relations - individual/collective - compete/cooperate - inter-generations - gender - norms, taboos, ethics - ownership, meritocracy • Activity - do/achieve, be - control, reward/punish - risk taking - home vs work life • Time - past, present, future - linear, cyclical - time horizons - mono/poly-chronic • Space - public/private - definitions/limits

6. LOCUS OF CULTURAL VARIATION (SUB-CULTURES) Professional Occupational Organizational Ethnic, Linguistic Religious Ideological Class Caste Region Nation Tribe/clan Family Etc. Geography Climate Conditions Rural Urban

7. Cultural Dynamics Organization Culture UNCERTAINTY CHANGE Function National Culture(s) Technology Demands

8. US ORGANIZATIONAL CULTURES(Values & Ideologies) • Competitive achievement (social Darwinism) • Performance-based/Scientific management • Efficiency • Rationality • Individualism (plus Human Relations) • Egalitarianism • Progress & Materialism • Quality of life/Humanitarianism • Ethnocentrism

9. Management Practicesreflect the interplay of: Culture • national • ethnic/religious • class • organizational • group • profession/occupation Context • market • technological • competitive • economic • political • legal

10. Corporate US Culture Shifts From • Paternalism • Male • Authoritarianism • Traditional family • Hierarchy • Old boy network To • Fraternalism • Female • Democracy • Blended family • Horizontal • Team

11. French-German Management Issues Comparison France • Strong sense of person • Individuality but rigid rules and centralization • Rigid social structure • Work to enjoy the good life • Privacy; little employer-employee discussion • Cartesian logic • Strong government role; many state-owned enterprises • Little use of consultants • Catholic majority Germany • Strong group loyalty • Ingrained sense of authority figures • Movement - since WW II • Industrious; proud work ethic • Formal but communicative; management-worker rapport • Specialism & experience • Free enterprise spirit; modest government involvement • Considerable consultant use • Protestant majority

12. French-German Similarities • Delegation of authority • Mergers • Marketing and advertising • Hiring and firing • Industry size • Planning • Family

13. High-Low Context by Profession? High Context Human Resources Marketing/Sales General Management Manufacturing R&D Product Development Design Engineering Information Systems Finance Accounting Low Context

14. Culture-based US Strategy Identify new market Develop new market Develop new technology Support - minor improvements Short-term solutions maturing Foreign Competition Ignore/underestimate Other’s competencies Sell technology Milk market Identify new market Cede market Develop new technology

15. Japanese Strategy of the 1970s Create supportive environment Close domestic market Build scale Enter foreign markets Set target goals Acquire foreign technology Develop competitive products Expand market base Identify tech. needs/sources Improve technology Improve products & processes Develop new technology Move up-market & up technology ladder Dominate market Recycle at higher technology level

16. Aspects of Japanese Culture Impacting Technology • National high-context village; self-perpetuating elites • An articulated commitments and obligations system; power usually wins, is accepted but recourse possible • Hierarchical, with bottom-up participation; controlled decentralization, use of task-forces • Harmony, cooperation and consensus valued over personal achievement; relationships critical • Defined, “know your place”, roles; tolerance for subordinate failure • Visionary long-term & broad obligation leadership • Detail oriented processes and measures plus images and symbolism, complex context (“ba”) critical

17. Culture Technology • View of the world; relation to nature • Rules, standards, laws/regulations, truth and rituals • High/low context; deeply embedded “knowledge” and beliefs, tolerance for deviation • Communication values; openness and sharing vs. secrecy • Risk propensity; attitudes towards change, importance of tradition; being/doing • Time perspectives • Ownership rights (individual/corporate vs. communal) • Technology impact on culture

18. Technology Transfer:Domains for Cultural Impact (I) • Legacy base, interaction (conflicts/synthesis) with existing technologies and systems • Appropriateness (cultural/linguistic fit, skills, resources, development-base, physical environment) • Capacity to absorb (education and training, language, infrastructure) • Patterns of use and benefit, equity • who/access – (class, public/military/private, urban/rural, • networks), gender, generational • where (industry, organization size, school, medical, home) • how (direct, mediated), training, support, packaged/ unpackaged, adaptation/improvement • benefits/costs/risks – to whom, how, when?

19. Technology Transfer:Domains for Cultural Impact (II) • Rate/pattern of diffusion/adoption, opinion leaders, early/late adopters, mobility, communication • Intra- and Inter-institutional (between firms, university-industry, government/military-private, etc) • Time factors, learning curves • Control/ownership, dependency (domestic/foreign) • Valuation (sender/receiver differences, cost-benefit, comparison to alternatives, psychological) • Technology change/life-cycle (goals, expectations, fears) • Distance (geographic, time, culture) • Technology transfer processes (formal/technical, human-based, mobility)

20. Globalization of technology: capacities, sources and flows; markets and trade; supply chains; standards; manufacturing; R&D, engineering & design; consultants, institutes and intelligence; competitors; alliance partners, IPR; inter-governmental arrangements. Plus high cost & complexity of technology development are requiring global: technology sourcing, alliances and licensing technology management, processes and structures tech. transfer mechanisms personnel relations/mobility Technology Globalization Perspectives

21. Of Tofflerian Waves • INDIVIDUALITY • CUSTOM • IMMEDIATE • INDEPENDENT Knowledge Revolution 1970 - 2010 • CONFORMITY • SCALE/MASS • LONG CYCLE TIMES • CENTRALIZED CONTROL Standard of Living Industrial Revolution 1750 - 1850 • FAMILY/TRIBE • SURVIVAL • RANDOM (WEATHER) • LOCAL CONTROL Agricultural Revolution Time

22. The Coming Strategic Inflection Points “Let’s not mince words: A strategic inflection point can be deadly when unattended to... Companies that begin a decline as a result of its changes rarely recover their previous greatness.” China becomes the largest economy Communications Technology 3rd Wave Growth Information Technology 2nd Wave Decline Bioelectronics • Adapted from Dr. Robert McCarthy (Roche) and • Andy Grove’s Only the Paranoid Survive)

23. Classical Challenges To Technology Management • Uncertainties and ambiguities • Shifting requirements; shortcomings in forecasting • Tough to align technical activity with • business strategies • key organizational players • requirements of internal and external customers • Maintaining focus and control while encouraging innovation and avoiding obsolescence

24. Some Key Concepts in Science & Technology Definitions and Relationships: Science - understand, explain, predict; discover knowledge Technology - application of knowledge to social ends What drives technology? Invention vs Innovation Science & Technology and Society Corporate Tech. Functions: Development/Deployment/Support (R&D, engineering, design, manufacturing, standards, quality assurance, technical marketing/sales, tech. service, tech. forecasting & intelligence, tech. management, etc.) Products, processes, services and their interplay Technology push vs Applications pull Radical vs Incremental innovation Life cycles, time horizons; learning curves Technology platforms, families, trajectories Technology competencies; minimal critical mass; obsolescence Organizational dynamics and dilemmas

25. Today’s Competitive Environment • Rapid technology change and shortening life-cycles • Increased, globalized and diffused technology-based competition • Rapid market changes; be responsive to voice of the customer • Growing technology development and deployment costs • Drive toward lean operations, changing technology relations with customers, suppliers, partners; R&D downsizing and outsourcing

26. Environmental Monitoring Technology-Product Strategy Development and Planning Operational Planning/Roadmapping Resource Allocation/Funding; Personnel Management Project Selection Technology Portfolio Management Project Execution-R&D/Engineering; Etc.; Ideation Performance Management Feasibility Studies Technology Transfer Technology Adoption; Change Management Post-Product Support Post-Product Audit Product Line Management Intellectual Property Management Alliance/Merger Mgm’t New Business Development Technology Innovation ProcessesRequirement: Linked processes at the Corporate, Business Unit and R&D levels

27. Figure 4Technology Management Processes

28. Baxter Healthcare Coca Cola Ford IBD Inc. Kellogg Kraft Lucent Technologies McDonald’s Motorola Redex Packaging Roche Rockwell International Rohm and Haas Siemens-Westinghouse United Technologies USG (Associate) Cambridge University Consortium(collaborating organization): British Aerospace, BG Technology, Domino Printing Sciences, Federal Mogul Technology, Hoogovens, Marconi, Rolls Royce Aero, The Post Office, Unilever, Com. Dev. MATI II Members and Associated Organizations

29. MATI II Community Interaction Inter-company Visits Workshops/Roundtables Informal Exchange Group Participation MATI Board Presentations Website Interaction Project Collaboration Reports

30. MATI I Achievements (1) 1. Industry-Academic Collaboration Model 2. Integrated Technology Process Management MOAD - Linchpin Processes: 1. Roadmapping (Lucent, Rockwell, Westinghouse) 2. Technology Transfer (Rockwell) 3. Voice of the Customer (Kodak, GM) 4. Technology Portfolio Management

31. MATI I Achievements (2) 3. Corporate Roadmapping Studies 1. Roadmapping Templates 2. Experience Sharing 3. Roadmapping in Practice (Kappel dissertation) 4. Acceptance of Roadmapping (Lucent study) 5. Cross-functional Study (Kodak) 6. Progressive Implementation (Rockwell) 7. Roadmapping Benefits/Pre-audit Instrument 8. Roadmapping Limitations/Scenario Planning & Linkage 9. Industry - Corporate Roadmapping Linkage 10. Roadmapping in Small Firms

32. MATI I Achievements (3) 4. Patent Claims Intelligence Study 5. Life Sciences/Food Industry Roadmapping 6. Small Firms Studies 7. Organizational Linkage/Knowledge Management Study (Levin dissertation) 8. International (Cambridge, Far East, Israel)

33. Roadmaps and Roadmapping A Roadmap • is the view of a group of how to get where they want to go or achieve their desired objective. (Discipline) • helps the group make sure the capabilities to achieve their objective are in place at the time needed. (Focus) Roadmapping • is a Learning process for the group. • is a Communication tool for the group.

34. Voice of the Customer Enabling Technologies Specific Device Change-Out Relative Importance (Now and in the Future) Current Competitive Position (Now) Make or Buy (Sourcing) Recommendation Creating Linkage Is a Political Process Customer drivers VISION Import. Compet. Position Techn. M/B Core Technologies 2000 2001 2002 2003 2004 Reliability Self Diagnosis CF M F Remote Maint B C Modular Design M CF M C F Redundancy Low Cost CF M Power C F M Processors C F B Memories CF M DSPs ? VLSI CF M C Built-In Self Tst F Switching Core ? C Processor F M TSI CF Message Switch B CF PSU CF B C F PH M Service Ckts M CF Architecture B Admin Module CF Comm Module M CF Signaling M C F US CF M International L M H - 0 + C = Current F = Future Funded Decision Required Unfunded Illustrative Data

35. Figure 18: Linear Extrapolation: The Corporate ‘Mission’ ) Boundaries: (artifacts of past problems) Uncharted (including opportunities unrealized) Starting Point: Current Competencies and Capabilities Mission (Linear) Contingency Plans The Present Unfolding Events and Technologies A Point in the Future Anderson, Radnor & Peterson, 1998

36. Figure 19: ‘New Horizons’ - Managing the Present from the Future Area of Immediate New Opportunities Potential Discoveries and Additions to Science Starting Point: Vision Current Compe- tencies Current Time & Understanding Unfolding Future Events and Technologies Uncharted Future Anderson, Radnor & Peterson, 1998

37. Figure 20: Close-Up Of the ‘New Horizons’ Unrecognized Black Holes Actual Green Fields Recognized Green Fields Core Capabilities Accepted Periphery Recognized Core Gaps

38. Technology Transfer Definitions • Technology Transfer Process defines how technology is transferred between two business/project entities • Technology Transfer is defined as a single event or a sequence of events that use “defined mechanisms” to achieve the transfer of a “technology” between two functional areas • Technology Transfers may be scheduled/planned within a project • Technology Transfers may occur on an opportunistic unscheduled basis within business operations • Technology Transfers are always Bi-directional in nature • Technology Transfer Mechanism - defines a specific instance of how technology is transferred • Deliverables are defined as the technology transferred between the business or project entities.

39. Goal of Technology Transfer Process • Optimize both process attributes and transfer mechanisms to achieve a successful transfer • Given that an individual project is accountable for the selection of its own goals and resources, then “variables” that potentially can be standardized are “transfer mechanisms” • Given that there may be different transfer requirements within the same project then a set of mechanisms may be required to be used to achieve a successful transfer. • To promote consistency, ease of use, leveraged re-use and efficient use of resources without constraining innovation and ingenuity of participants using the process

40. Major Elements Required in Technology Transfer • Expertise/Know-how • Coordination of matched resources at correct time • Common Domain Language • Comfort Level / Buy In How does one measure and develop each of the elements during the life of the project to ensure successful transfer ?

41. How are are success measures judged and by whom ? • Measures usually Lag the Technology Transfer Action • Measures are largely subjective • Receiver / Customer • Project Sponsor • Project Team • Technology Source / Creator

42. Factors Impacting Technology Transfer Success • Project Sponsorship e.g. Executive Management • Co-Location of team • Support - Training of project participants • Shelf Technologies Need Better Support / Publication-Awareness • Lack of Hard Quantifiable Measures • Lack of visible success due to long Technology Life Cycle ( Research to Product) • Failures breed lessons that are not captured • Contract Paradigm versus Agile Learning Paradigm (Measures Output) versus (Measures Process) • Buy In From The Participants • Expertise Is Available in all required areas in both source and receiver • Team Member Relationships

43. Successful Transfers Involve People • Technology Transfer is the result of successful human relationships • The most successful Transfer Mechanism involves personnel transfer • Hard to achieve, not compatible with current Western organizational (employment/work methods) and Social Structures • Technology Transfer may be significantly improved in the future by computer aids/information sharing tools

44. Attributes of a successful technology transfer process • Is the result of good planning • Needs to use quality resources • Use efficient mechanisms and/or tools • Operate in a timely manner

45. Technology Transfer Summary • Movement from a measure of discrete event output to that of an agile continuous process • Move to provide a library of proven technology transfer mechanisms with their individual metrics for different types of transfer situations • The single technology transfer process for a company may be sufficiently defined as • Identify Project • Identify Deliverables • Identify Transfer Mechanisms • Identify Resources • Execute Project Plan