Lecture Eight: Outline

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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

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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.

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Technology Management (contd)

• Technology management can enhance the value
  delivered by planning manufacturing responses
  that deliver market volume, product, and service
  delivery characteristics

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Technology Management (contd)

• 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

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Why is Technological Innovation a Strategic
Management Issue?

• Dodgson (2000) shows that technology management
  and innovation is a strategic issue because

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Why is Technological Innovation a Strategic
Management Issue? (contd)

• The development and use of technology are a key
  source of competitive advantage.

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Why is Technological Innovation a Strategic
Management Issue? (contd)

• 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

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Why is Technological Innovation a Strategic
Management Issue? (contd)

• The globalisation of technology and markets
  requires companies to take a strategic approach
  to their technological investments.

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Why is Technological Innovation a Strategic
Management Issue? (contd)

• 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.

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Another Perspective of the Product Life Cycle
Source Adapted from Walters (2002)
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The Demand-Led Life Cycle for Calculating
Source Adapted from Walters (2002)
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The Demand-Led Capability Life Cycle
Source Adapted from Walters (2002)
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The Technology Led Organisation
Source Adapted from Walters (2002)
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The Management if Research and Development

• Dodgson (2000) asserts that companies undertake R
  D for a variety of reasons, including

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The Management if Research and Development
(contd)

• Supporting existing business activities

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The Management if Research and Development
(contd)

• Establishing new business developments

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The Management if Research and Development
(contd)

• Facilitating related business diversification

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The Management if Research and Development
(contd)

• Selling R D services to other companies

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The Management if Research and Development
(contd)

• Providing the skills to help reverse engineer
  competitors products (to see how they work)

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The Management if Research and Development
(contd)

• Helping predict future technological trends

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The Management if Research and Development
(contd)

• Complying with social and political expectations

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The Management if Research and Development
(contd)

• Participating in research networks

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The Management if Research and Development
(contd)

• Portraying a positive corporate image and,

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The Management if Research and Development
(contd)

• Creating future options through knowledge and
  technology

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The Management if Research and Development
(contd)

• Centralised Vs Decentralised

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The New Competitive Dynamics of the
Technology-Driven World
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Marketspace Vs Marketplace (contd)

• 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

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Marketspace Vs Marketplace (contd)

• In the marketplace, brand equity is established
  and managed by manipulating content, context, an
  infrastructure through the traditional marketing
  mix.

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Marketspace Vs Marketplace (contd)

• 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.

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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

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The Increasing Importance of Time (contd)

• Stage one sees management discovering the power
  of time, either intentionally or unintentionally

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The Increasing Importance of Time (contd)

• Stage two involves the organisation as a whole
  discovering the power of time to unleash
  innovation

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The Increasing Importance of Time (contd)

• In stage three, companies alter their momentum

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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?

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Discussion Questions (contd)

• 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?

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Discussion Questions (contd)

• 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?