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Managing Managing TechnologyTechnology
and Innovationand Innovation
Chapter 17Chapter 17
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Learning ObjectivesLearning Objectives
LO 1 List the types of processes that spur development of new technologies
LO 2 Describe how technologies proceed through a life cycle
LO 3 Discuss ways to manage technology for competitive advantage
LO 4 Summarize how to assess technology needs
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Learning Objectives (cont.)Learning Objectives (cont.)
LO 5 Identify alternative methods of pursuing technological innovation
LO 6 Define key roles in managing technologyLO 7 Describe the elements of an innovative
organizationLO 8 List characteristics of successful
development projects
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Technology and InnovationTechnology and Innovation
Technology The systematic
application of scientific knowledge to a new product, process, or service.
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QuestionQuestion
___________ is a change in method or technology.
A.InnovationB.QualityC.SpeedD.Service
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Technology and InnovationTechnology and Innovation
Innovation A change in method or technology; a positive,
useful departure from previous ways of doing things.
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Forces Driving Technological DevelopmentForces Driving Technological Development
1. Must be a need, or demand, for the technology
2. Meeting the need must be theoretically possible, and the knowledge to do so must be available from basic science
3. Must be able to convert the scientific knowledge into practice in both engineering and economic terms
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Forces Driving Technological DevelopmentForces Driving Technological Development
4. The funding, skilled labor, time, space, and other resources needed to develop the technology must be available
5. Entrepreneurial initiative is needed to identify and pull all the necessary elements together.
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Technology Life CycleTechnology Life Cycle
Technology life cycle A predictable pattern followed by a technological
innovation, from its inception and development to market saturation and replacement.
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The Technology Life CycleThe Technology Life Cycle
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Technology Dissemination Pattern and Technology Dissemination Pattern and Adopter CategoriesAdopter Categories
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Diffusion of Technological InnovationsDiffusion of Technological Innovations
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Diffusion of Technological InnovationsDiffusion of Technological Innovations
An innovation will spread quickly if it Has a great advantage over its predecessor Is compatible with existing systems, procedures,
infrastructures, and ways of thinking Has less rather than greater complexity Can be tried and tested easily without significant
cost or commitment Can be observed and copied easily
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Technological Innovation in a CompetitiveTechnological Innovation in a CompetitiveEnvironmentEnvironment
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Advantages and Disadvantages ofAdvantages and Disadvantages ofTechnology LeadershipTechnology Leadership
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Technology FollowershipTechnology Followership
A manager’s decision on when to adopt new technology also depends on the potential benefits of the new technology, as well as the organization’s technology skills
Following the technology leader can save development expense
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Dynamic Forces of a Technology’s Dynamic Forces of a Technology’s Competitive ImpactCompetitive Impact
17-17Figure 17.3
QuestionQuestion
What is the process of clarifying the key technologies on which an organization depends?
A.Managerial auditB.Benchmarking C. External auditD.Technology audit
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Assessing Technology NeedsAssessing Technology Needs
Technology audit Process of clarifying
the key technologies on which an organization depends
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Measuring Current TechnologiesMeasuring Current Technologies
Emerging technologies are still under development and thus are unproved
Pacing technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage
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Measuring Current TechnologiesMeasuring Current Technologies
Key technologies have proved effective, but they also provide a strategic advantage because not everyone uses them
Base technologies are those that are commonplace in the industry; everyone must have them to be able to operate
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QuestionQuestion
What is the process of comparing the organization’s practices and technologies with those of other companies?
A.Benchmarking B.Quality controlC. ScanningD.Environmental scanning
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Assessing External Technological TrendsAssessing External Technological Trends
Benchmarking the process of comparing the organization’s
practices and technologies with those of other companies
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Assessing External Technological TrendsAssessing External Technological Trends
Scanning focuses on what can be done and what is being
developed places greater emphasis on identifying and
monitoring the sources of new technologies for an industry
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Key Factors to Consider in Technology Key Factors to Consider in Technology DecisionsDecisions
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Framing Decisions aboutFraming Decisions aboutTechnological InnovationTechnological Innovation
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Sourcing and Acquiring New TechnologiesSourcing and Acquiring New Technologies
Make-or-buy decision The question an organization asks itself about
whether to acquire new technology from an outside source or develop it itself.
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Sourcing and Acquiring New TechnologiesSourcing and Acquiring New Technologies
Internal development Purchase Contracted
development Licensing
Technology trading Research
partnerships and joint ventures
Acquisition of the owner of the technology
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Sourcing and Acquiring New TechnologiesSourcing and Acquiring New Technologies
Managers should ask the following basic questions:1. Is it important (and possible) in terms of competitive
advantage that the technology remain proprietary?2. Are the time, skills, and resources for internal
development available?3. Is the technology readily available outside the
company?
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Technology Acquisition OptionsTechnology Acquisition Options
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Figure 17.4
QuestionQuestion
Which executive is in charge of information technology strategy and development?
A.COOB.CEOC.CTOD.CIO
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Technology and Managerial RolesTechnology and Managerial Roles
Chief information officer (CIO) executive in charge of information technology
strategy and development. coordinate the technological efforts of the various
business units identify ways that technology can support the
company’s strategy supervise new-technology development
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Technology and Managerial RolesTechnology and Managerial Roles
Technical innovator A person who develops a new technology or has
the key skills to install and operate the technology Product champion
A person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.
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Technology and Managerial RolesTechnology and Managerial Roles
Executive champion An executive who
supports a new technology and protects the product champion of the innovation.
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Organizing for InnovationOrganizing for Innovation
Unleashing creativity involves encouraging creativity and celebrating failure
Bureaucracy busting is necessary because bureaucracy is the enemy of innovation
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3M’s Rules for an Innovative Culture3M’s Rules for an Innovative Culture
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Organizing for InnovationOrganizing for Innovation
Development project A focused organizational effort to create a new
product or process via technological advances
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Organizing for InnovationOrganizing for Innovation
Sociotechnical systems An approach to job design that attempts to
redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work
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Compensation Practices in Traditional and Compensation Practices in Traditional and Advanced Manufacturing FirmsAdvanced Manufacturing Firms
17-39Table 17.4
Destination CEO: AdobeDestination CEO: Adobe
Discuss the role of innovation at Adobe.
If you were a manager, how would you encourage creativity?
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