Technological vesus Organizational Change, Mangement of Technological Innovation, Hongyi Sun 1 Patterns of technological Innovation versus organizational

Technological vesus Organizational Change, Mangement of Technological Innovation, Hongyi Sun

1

Patterns of technological Innovation versus organizational

Changes

Hongyi Sun


2

1. Introduction & problemsAreas of technological

innovation• Manufacturing/service process

• Engineering and new product development

• Administration/management


3

New/High. Technologies: Advanced Manufacturing

Technology : AMT

• CNC, robots, FMS,..

• CAD, CAD/CAM,…

• MIS, ERP, CIM..


4

Diffusion of new technology

• Two examples (1970s to 1980s)

• Robots

• FMS (Flexible manufacturing systems)


5

Performance

• A UK study: CAD, robot, FMS• A US study: failure rate:________• A Danish study on AMTs in 1980s• A Harvard study (compare US & Japan)• A CityU study (Shangahi N.2 textile

Machines Plant)• Others: Titanc, US space shuttle, HK new

airport, ….


6

Questions?

• WHY?

• Hvafor?

• Kuim? WHY ?


7

A survey by US National Academy of Science: -> Technology Management

How to integrate technology into the overall strategic objectives of the firm.

How to get into and out of technologies faster and more efficiently.

How to assess/evaluate technology more efficiently. How to accomplish technology transfer. How to reduce product development time. How to manage large, complex and interdisciplinary or inter-

organizational projects/systems. How to manage an organization’s internal use of technology. How to leverage the effectiveness of technical professionals.


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2. Literature review

• Organizational and managerial issues for implementing advanced manufacturing technology (AMT).

• Assumption: Organizational aspects were considered sufficiently


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Research questions

• What aspects of org.?

• Why were they not considered?

• When should they be considered?

• How can they be considered?

• ….


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Organization-Technology Map (O-T map)

Technological innovation

Organizational changes


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Ettlie (1988):Synchronously innovating technology &

administration AdministrativeInnovation

TechnologicalInnovation

High

Low

Medium

Medium

Low

Low

Low

High

High

High


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Bessant (1990): Simultaneous innovation

incr

easi

ng

org

an

izati

on

al in

novati

on

Synchronous innovatio

n

Increasing technical innovation


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Voss & Twigg (1991): More attention to the organizational aspect

Low

High

Low HighDegree of organisational changes

Degr

ee o

f tec

hnolo

gica

l cha

nges

O.

T.


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O-T map: hypothesis of pathes

T

O

B-path

T-path

O-path


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3. Empirical data

• Unit of study (scope of study)

• Case study (cross-section vs longitudinal)

• Survey – Questionnaire design– Sampling– Informants


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Technology dimension Technological dimension None Little Some Much Very

much

1 Material handling 1 2 3 4 5

2 Transporting 1 2 3 4 5

3 Assembling and welding 1 2 3 4 5

4 Measuring/testing 1 2 3 4 5

5 Fabricating 1 2 3 4 5

6 Data collecting 1 2 3 4 5

7 Production management 1 2 3 4 5

8 Process planning 1 2 3 4 5

9 Integration with marketing 1 2 3 4 5

10

Integration with design 1 2 3 4 5

Computer -index (average)


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Organizational dimension Human factors None Little Some Much Very

much1 Individual Initiative 1 2 3 4 5

2 Suggestions of ideas 1 2 3 4 5

3 Participation in decision 1 2 3 4 5

4 Training 1 2 3 4 5

5 Job rotation 1 2 3 4 5

6 Education 1 2 3 4 5

7 Group-based work organization 1 2 3 4 5

8 Performance incentives 1 2 3 4 5

9 Communications of goals & norms 1 2 3 4 5

10 Re-organization activities 1 2 3 4 5

Human-index (average)


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Performance

Performance Much less than expected

Less than

expected

As expected

More than

expected

Much more than expected

1 Quality improvement

1 2 3 4 5

2 Productivity improvement

1 2 3 4 5

3 Inventory turnover

1 2 3 4 5

Performance-index (average)


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4. Data analysis & findingTwo longitudinal cases

1 2 3 4 5

Organisation

Technology1

2

3

4

5

9092

94

85 89

91Case A

Case B


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A survey of 22 companiesO = 3.175 + 0.283*T - 0.411*T2 + 0.091*T3, R = 0.78, PF=8.6 = 0.001

O

T

CIM

HIM CHIM

1 2 3 4 5

5

4

3

2

1


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Findings:

Companies tend to follow a technology-

oriented path at early stage of adopting new

technologies, then turn to organisational

dimension, reflecting a paradigm shift in

the utilisation of new technologies.


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5. Discussion and implications

• A research finding will trigger many questions.

• ?

• ?

• ?

• ?

• ?


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Review of manufacturing history

• <30s: Craftsman mfg

• 30s-70s: Mass mfg/production

• >70s: Japanese mfg: far east challenge• Lean production

• Agile mfg

• Flexible mfg

• CIM

• E-mfg


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CIM solution

• A world-wide campaign for CIM

• An interview of A Danish manager: why?

• Outcome: failure rate

• An alternative: CHIM

• A shift from CIM to CHIM– Why not CHIM at the beginning?


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Performance and position

2

2.5

3

3.5

4

4.5

CIM

CHIMHIM

Org.

Tech.

Performance


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Vision and Strategy

CIM

HIM CHIM

Technology

Organisation


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Review

O

T

CIM

HIM CHIM

1 2 3 4 5

5

4

3

2

1


28

Review

1 2 3 4 5

Organisation

Technology1

2

3

4

5

9092

94

85 89

91Case A

Case B

CHIM

CIM

HIM


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Suggestions: which path to follow?

B-path

T-path

O-path

T

O


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6. Conclusions

• The balance between technology and organization

• The alignment among technology, organization and strategy


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The MOST model

S

TOM


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A framework

Steps Issues

Initiation & justification

Preparation & design

Acquisition & installation

Routinisation & learning

Strategic issues Goal specification

Elaboration of goals

Human resource strategy

(Goal change)

Technological issues

Objective of AMT

Preparation Design

Acquisition

Installation

Learning

Organisational issues

Conditions Labour Union Staffs

Work organization

Integration

(Recruit) Training

Learning Organisational changes

Managerial issues

Champion Management support

Communication Justification

Project team Cooperation with vendor

Site selection Participation Staff selection

Management of changes

Uncertainty Auditing


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7. Reference

1. Sun, Hongyi and J O Riis (1994) "Organisational, Technological, Strategic, and Managerial Issues along the Implementation Process of Advanced Manufacturing Technology: A General Framework of implementation guide", International Journal of Human Factors in Manufacturing, Vol. 4 (1), pp.23-36.

2. Sun, Hongyi and Jan Frick (1999) “A Shift From CIM to CHIM”, International Journal of Computer Integrated Manufacturing, Vol. 12, No 5. pp.461-469.

3. Sun, H., R. Hjulstad and J. Frick (1999) “Critical Success factors in implementing AMT by Norwegian companies", International Journal of Management, Vol.16, No.4, pp.548-556.

4. Sun, H. (2000) Current and Future Patterns of using Advanced Manufacturing Technologies, Technovation, The International Journal of Technological Innovation and Entrepreneurship, Vol.20, No.11, pp.631-641

5. Sun, H, Tian, Y. and Lu, L. (2001) "Evaluation of AMT in China SOE", I J OF AMT (forthcoming)

6. Sun, Hongyi (2001) Human Resource Development in Integrated Manufacturing Systems, Integrated Manufacturing System, Vol. 12, No.4 (forthcoming)

Sun, H and V. Patri (2001) The human side of holonic manufacturing system, TECHNOVATION (forthcoming)

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Technological vesus Organizational Change, Mangement of Technological Innovation, Hongyi Sun 1 Patterns of technological Innovation versus organizational