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8/9/2019 Case Studies - Technology Management
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CASE STUDIESCASE STUDIES
TECHNOLOGICALTECHNOLOGICAL
MANAGEMENT.MANAGEMENT.
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LESSONS from XEROX: the BEGINNING:
This case describes the Anatomy of Innovation
Process.
Demonstrates the difference between
scientific discoveries and Technological
Innovation.
The Inventor- Carlson ,an ordinary man hadjust a vision, an empirical approach , a passion
for his idea and persistence to lead to such a
major technological Innovation .
Battelle supported this idea with a Process,
relevant Knowledge, talent and Scientificapproach.
Haloids Wilson brought Entrepreneurship to
the Innovation by funding the research and
protecting the Technology by a Trade name.
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Financial support by third parties/ Govern Bodies
(US Army) is the catalyst that propels new ideas
towards Development and Marketing. For Revolutionary Innovations, Market surveys
and predictions can not be trusted to give
accurate demand forecast . ( Xerox 914 Copy
Machine sold 200,000 as against prediction of
3000 nos. only. It was thought to be only a
Product concept).
From first Xerox machine of 1949 to Xerox 914 it
took several Innovations to bring it to
acceptable product in marketplace. Technological Innovation coupled with
Marketing Innovation ( a leasing & pricing
structure by Peter McColough) facilitated
Customer acceptance of the Product.
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Once the technology was well developed,
accepted by the Market and diffused, a huge
explosion in the copies produced and soldfollowed.
The success of an Innovation depends on its
marketability and customer satisfaction.
From the prototype to the customersacceptance of the Product may warrant
multiple generation of innovations.
Innovations one or more champions to create
them and introduce them to the market.
Successful Innovations need a combinations of
factors including Vision, persistence, technical
skill, business acumen, good intuitive sense
and of course good luck.
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A MODEL FOR TECHNOLOGICAL INNOVATION IN
BIOMEDICAL DEVICES :
Generation of Ideas
Production
Product design, prototypeDeveloment & Testing Designing the manufacturingProcess.
Regulatory approval &
Patenting.
Marketing
Testing feasibility of Ideas
Customer
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GENERATION OF IDEAS:
Intrapreneurs
R & D Depts.
Researchers
Biomedical Industry
University &
Research labs
Biomedical
Industry
Healthcare Sector
Marketing &
Sales.
Patents.
BiomedicalEngineers.
Healthcare
Professionals
Physicians
MARKET PULL
TECHNOLOGY
PUSH
Generation
Of
Ideas
Entrepreneurs
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PRODUCT DESIGN, DEVELOPMENT& TESTING.
PRODUCT DESIGN,PROTOTYPE
DEVELOPMENT &
TESTING.
COST / FUNCTIONRELATIONSHIP
QUALITY EXPANDABILITY
TECHNOLOGYSIMPLICITY &
EASE OF USE
COST
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LESSONS from XEROX AFTER THE INVENSION.
Lack of a committed Champion in MOT could lead
to its downfall. Wrong Vision statement inconsistent with its
core competence would take the organization to
a wrong direction spelling disaster.
Excellent Product innovation may fail due to
proper marketing effort.
Research groups with freedom from daily defined
assignments are more creative.
Locating R & D ventures away from the main
corporate centre gives a research team freedomto innovate.
Too close & too many control points throttle
innovation.
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Bureaucratic management can seriously hindertechnological innovation.
Top managements focus on short term financialobjectives may be detrimental to the realization ofthe long term objective or Vision.
Synergy and cooperation between research armand the Product development arm of a company
are essential for the successful push ofTechnology.
Synergy and cooperation between R & D,Production and Marketing are essential forsuccessful commercialization of Technology.
Focus on QUALITY and TQM is mandatory fororganizations for its survival and businessexcellence.
Entrepreneurship & not professionalism is key forperformance in a Technology oriented
organization.
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COMMENTS ON XEROGRAPHY: CarlsonS radical innovation & new Technology
was valued by the customer and created a newMarket.
Hence 914 Copier a single Xerox Product becamethe industry standard .
Xerox became the leader in copying Industry and
got benefited by tremendous growth and enormousProfit.
Once the technology was recognized, Xerox shiftedfrom radical innovation to incremental & Processinnovation. Attitude towards Business & innovation
became callous and relaxed. Competitors were growing as Technology matured.
By 1975 , Xeroxs market share and revenue werelost to new competitors like Canon, Sharp,Panasonic etc. whose Quality was inching higher
and cost getting lower.
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The reason for failure was the managements overconcern with bottom line and it did not have theentrepreneurial skills to foster developments in an
entirely new arena. Turning round Xerox back to leadership position in1990s Chairman and CEO Allaire introduced drasticchanges in the way Xerox did business.
Xerox redefined its strategic Vision towards
creating The Document Company. Allaire integrated Xeroxs core competence and
technology together and gave it a modern TQMoriented new approach for competitive edge withcustomers.
Xerox induced in its employees entrepreneurialskill to compete in a highly volatile competitivetechnological environment.
Strategic thinking, TQM orientation, result orientedteam work, ability to delegate and empowerment
skills are highly appreciated in the new structure.
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TECHNOLOGICAL INNOVATION- the MACRO LEVEL.
Scientific discoveries and technologicalbreakthroughs have a potential for changing theway people live and do business.
The process of technological innovation in a regionspur major economic growth and change its entire
socioeconomic landscape . The BRITISH MIDLANDS and SILICON Valley
has strikingly similar features and circumstancesto foster such socioeconomic growth.
Both the areas had common lessons to learn which
are detailed hereafter: Creative people who tend to depart from mundane
and the status quo usually advance innovations.
Entrepreneurs drive innovations with support fromskilled technologists.
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Both areas were predominantly in habitated by
nonconformists free from established or forced
customs or practices. They believed in freedom of thinking & trade.
They believed in education, having contacts and
sharing knowledge with like minded thinkers.
Innovators tend to be drawn from the ranks ofthose with no investments or vested interest in the
established order.
For large scale innovation in a region freedom of
thought and entrepreneurial spirit is essential.
The exchange of information among groups fromvarious disciplines are important.
For the process of technological innovation, when
conditions are ripe for mental interaction in the
existence of infrastructure, innovations flourish.
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Both LUNAR SOCIETY(1776) in the British
Midlands ( Burmingham) & The HOME BREW
COMPUTER CLUB(1970) IN Silicon Valley helped
to:
Exchange of ideas.
Support member activities.
Share information across disciplines.
Share information across Industry.
Exhibit Business Strategy.
Produce real entrepreneurs.
Create role models.
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