Technology Innovation Process

Innovation Process

Idea Generation

Concept Definition

Market Analysis

Technical Analysis

Business Plan

Approval ( by Top Mgt.)

Development of prototype

Test Market & Analysis

Production and commercialisation

Disposal

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Innovation as Concurrent Integration

Innovation

Science

Natural Capital

Economic Context

Policy Context

Engg.& Technology

Societal Needs

3 Critical Trajectories Impacting Innovation Process

Border Crossings ( National and Sectorial )

Emergence of complex Technologies

Knowledge and Distributed Intelligence

( Knowledge networks, Learning systems, Research tools)

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Competitiveness

Def: The process by which one entity strives to outperform the other. ( Person, Org, Country, )

Factors: Desire to win, ability, commitment, availability of resources, perseverance.

Indicators:

Standard of Living

Trade

Productivity

Investment

Technology Strategy

Technology Strategy connection

Technology directly affects the competitive position of the firm

Technology competes for resources within the firm and resource allocation and technology deployment is a challenge.

Technology requries capital to manage structure, processes and information systems. Alterations involves huge outflow.

Technology decision have long-term impact on business.

Technology and Competitive advantage

Creating fundamentally new business discover new opp. by using radical innovations and pioneering the market.

Altering the rules of rivalry Deployment of technology in products, value chain may give an opp. To the firm to dominate the market.

Supporting existing business improvement in resources or process or enhancing the product.

Technology Strategy

To what extent technology is relevant to the business ?

Which Business strategies require technology ?

Where will we get it ?

What are our core technologies for the business?

In which technologies should we focus our research ?

What new strategic options could they provide ?

Technology Strategy

Technology strategy is the revealed pattern in the technology choices offirms. The choices involve commitment of resources for the appropriation,maintenance, deployment and abandonment of technological capabilities.

1. Kinds of Technologies

2. Resource allocation

3. Technological capability

4. Includes hardware and software both

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Technology Appropriation

Commitment to build technological capability. It embraces both software and hardware dominant technologies.

Examples:

1. Acquisition of certain capabilities for survival . Airline Industry,

computer reservation systems have become integral part of valuechain.

2. Acquisition of technology for redesigning products or to develop new products.

3. Acquiring completely new capabilities to for development of newbusiness. Acquiring biotechnological capabilities to transformagricultural sector / medical sector.

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Technology Appropriation

Commitment to build technological capability. It embraces both software and hardware dominant technologies.

Examples:

1. Acquisition of certain capabilities for survival . Airline Industry,

computer reservation systems have become integral part of valuechain.

2. Acquisition of technology for redesigning products or to develop new products.

3. Acquiring completely new capabilities to for development of newbusiness. Acquiring biotechnological capabilities to transformagricultural sector / medical sector.

Deployment in value chain

Nearly for every activity inn value chain companies are usingtechnology. There are multiple opportunities available to make it faster/smarter.

Activities are modified on radical or incremental basis. Linkages amongactivities are also to be modified.

Examples:

1. Computer aided design combined with simulation / analysis.

2. Assembly shop : Movement + production + packaging

3. Product booking + feedback

4. Information system + planning

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Deployment in products

Introduction of new products (Incremental innovation )

Radical innovations ( Drastically new products )

- by architectural innovations

- technology substitution

Examples:

Television technology, DTH, Networking, banking services.

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Designing Technology Strategy

FOCUSTechnology

StrategyEnvironment

Competitive Domains

Technological Environment

Firms Position

Strategic Positioning

Resource capability

Competitive Advantage

Competitive Domains of Industries

Large Capital Investments

Compete on Price,

Expenditures and R& D

e.g. Steel Industry

Investment in Production, Customer

Relationship management

Fragmented, More Rivalry

e.g. FMCG

Investment in

R & D

Compete on Inventions and Innovations

Uniqueness is important

e.g. Pharma

Capacity Driven Customer Driven Knowledge Driven

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Types of Technology Strategies

Technology Strategy Types depends on two dimensions viz. Scope and Leadership

Technology leadership strategy :

-Technology as a primary driver for competitive advantage

-Maintaining both development and deployment continuously

Niche Strategy :

- focus on Critical technology only.

- selective development

- deployment towards exploiting strength in selective area

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Follower Strategy :

- Focus on deployment

- Technology is not primary driver for competitive advantage

- Risk avoidance

Technology rationalisation :

- Maintaining adequate technology level only

- Focus on other aspects of value chain to compete in market.

Technology leader views appropriation as a future source of competitive advantagewhereas Follower focus on acquisition of capabilities as sub-ordinate to theircorporate strategy.

Firms following niche strategy adopt innovative first to Market strategy whereasleaders often adopt second to market with leapfrog or superior version, etc.

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Framework for strategy formulation

Implementation

Formulation of

Technology Strategy

Strategic Diagnosis

Technology intelligence

Profiling competitive domains

Identifying profit sites

Environmental Assessment

Technology inventory

Profiling firms position

Charting Technological requirements

Competitive position of the

Firm

Mode of implementation

OrganisationIP Strategy