Lecture Eight: Outline

1. Lecture Eight: Outline • Technology Management • Why is Technological Innovation a Strategic Management Issue? • Another Perspective of the Product Life Cycle • The Demand-Led Life Cycle for Calculating • The Demand-Led Capability Life Cycle • The Technology Led Organisation • The Management if Research and Development • The New Competitive Dynamics of the Technology-Driven World

2. Technology Management • Walters (2002) shows that It is broader in scope than manufacturing/ operations strategy; the integration of process and product technology to address the planning, development and operational objectives of an organisation or combination of organisations.

3. Technology Management (cont’d) • Technology management can enhance the value delivered by planning manufacturing responses that deliver market volume, product, and service delivery characteristics

4. Technology Management (cont’d) • Technology management requires a clear and shared understanding of the role of R & D and innovation within the value chain, and clearly defined responsibilities and ‘ownership’

5. Why is Technological Innovation a Strategic Management Issue? • Dodgson (2000) shows that technology management and innovation is a strategic issue because:

6. Why is Technological Innovation a Strategic Management Issue? (cont’d) • The development and use of technology are a key source of competitive advantage.

7. Why is Technological Innovation a Strategic Management Issue? (cont’d) • The complex, uncertain, and expensive processes of R & D, developing new products, and production and operations innovations will result in piecemeal, short-term, and potentially disruptive outcomes unless they are guided by a strategy that builds synergies and grows expertise cumulatively

8. Why is Technological Innovation a Strategic Management Issue? (cont’d) • The globalisation of technology and markets requires companies to take a strategic approach to their technological investments.

9. Why is Technological Innovation a Strategic Management Issue? (cont’d) • The organisational structures that firms adopt to encourage technological development – for example, in the organisation of R & D – should follow the strategy pursued by the firm.

10. Another Perspective of the Product Life Cycle Source: Adapted from Walters (2002)

11. The Demand-Led Life Cycle for Calculating Source: Adapted from Walters (2002)

12. The Demand-Led Capability Life Cycle Source: Adapted from Walters (2002)

13. The Technology Led Organisation Source: Adapted from Walters (2002)

14. The Management if Research and Development • Dodgson (2000) asserts that companies undertake R & D for a variety of reasons, including:

15. The Management if Research and Development (cont’d) • Supporting existing business activities;

16. The Management if Research and Development (cont’d) • Establishing new business developments

17. The Management if Research and Development (cont’d) • Facilitating related business diversification

18. The Management if Research and Development (cont’d) • Selling R & D services to other companies

19. The Management if Research and Development (cont’d) • Providing the skills to help ‘reverse engineer’ competitors’ products (to see how they work)

20. The Management if Research and Development (cont’d) • Helping predict future technological trends

21. The Management if Research and Development (cont’d) • Complying with social and political expectations

22. The Management if Research and Development (cont’d) • Participating in research networks

23. The Management if Research and Development (cont’d) • Portraying a positive corporate image; and,

24. The Management if Research and Development (cont’d) • Creating future options through knowledge and technology

25. The Management if Research and Development (cont’d) • Centralised Vs Decentralised

26. The New Competitive Dynamics of the Technology-Driven World

27. Marketspace Vs Marketplace (cont’d) • Rayport and Sviokla (1994) explain “ one of the profound consequences of the ongoing information revolution it its influence on how economic value is created and extracted

28. Marketspace Vs Marketplace (cont’d) • In the marketplace, brand equity is established and managed by manipulating content, context, an infrastructure through the traditional marketing mix.

29. Marketspace Vs Marketplace (cont’d) • In the marketspace, however, content, context, and infrastructure can be disaggregated to create new ways of adding value, lowering costs, forging relationships with non-traditional partners, and rethinking “ownership” issues. In the new arena of the marketspace, content, context and infrastructure are easily separated. Information technology adds or alters content, changes the context of the interaction, and enables the delivery of varied content and a variety of contexts over different infrastructures.

30. The Increasing Importance of Time • Stalk and Webber (1993) argue that the recognition of time as a basis for competitive advantage goes through three stages

31. The Increasing Importance of Time (cont’d) • Stage one sees management discovering the power of time, either intentionally or unintentionally

32. The Increasing Importance of Time (cont’d) • Stage two involves the organisation as a whole discovering the power of time to unleash innovation

33. The Increasing Importance of Time (cont’d) • In stage three, companies alter their momentum

34. Discussion Questions • Identify a series of related technologies and plot its lifecycle as well as the lifecycle of the central benefit. • Why do companies undertake R & D? how can technology management be used to improve the effectiveness of R &D?

35. Discussion Questions (cont’d) • The Chief Operating Officer of Widget Ltd. comes to you asking you for advice about implementing a new enterprise management system. He already uses several systems for order management, materials planning, financial management as well as a few others. What is your advice to him?

36. Discussion Questions (cont’d) • He finds that he is beginning to lose customers to online retailers of widgets. He wants to know how he can improve his value proposition and communicate it more effectively. What do you advise him?