Technological Myopia (1)

1
Technological Myopia (1)

• Recall Marketing Myopia
• Failure to see customer-need-oriented business
  (vs product/service-oriented business)
• ltToo narrowly perceiving their businesses.gt
• What is Technological Myopia?
• ltToo narrowly perceiving the impact/usage of
  technologies.gt
• Counter example HP Inkjet die mfg.
• External failure to see how tech. in other
  industries can affect the company
• Internal failure to appreciate how comp/industry
  available tech can be applied in a strategic way.
• Xerox example.
• GM research lab example.

2
Technological Myopia Assessment

• How to overcome Technological Myopia?
• 4-phase process assessment, involvement,
  selection, integration
• 1) Assessment measure the degree of T. myopia by
  Strategic value matrix (fig 2.1)
• isolated usage, budget needs, expense needing
  control ltisolated operational toolsgt
• packaged usage, operational plan, necessary
  expense ltorganized operational toolsgt
• higher-level mgmt, tactical support for strategic
  plan, necessary investment ltsupport
  business/operationsgt
• senior mgmt, strategic usage to support business
  plan, priority investment ltdevelop
  business/operationsgt
• Fig. 2.2. Current status of IT use. (McGraw Hill
  Study)
• What is your co. position?

3
Comparison of Maturity Level Def.

• Other definition
• Strategic
• Offensive
• Defensive
• Cost-justified
• Controlled

• Degree of T. myopia by Strategic value matrix
• strategic usage, develop, business/operations
• priority investment
• support business/ operations, tactical support
  for str. plan
• necessary investment
• organized operational tools
• necessary expense
• isolated operational tools
• expense needing control

4
Technological Myopia Involvement

• 2) Involvement
• Ask yourself What str. approach can give you
  competitive advantages?
• 3 generic strategies w/ permutations
• Low cost producer via productivity, inventory,
  material cost, design, ...
• Product/service differentiation via improved
  service, distri., quality, design, ...
• Niche marketing via develop business
  opportunities, targeting MKT, better service to
  the niche,
• How can tech help you achieve your strategic
  advantages? (Use tech to help open up new
  opportunities.)

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Technological Myopia Selection

• 3) Selection
• Select a strategic advantage to exploit.
• Choose a strategy that makes sense for your
  business.
• Which box is your strategic focus ?
• Is there an opportunity for revolutionary change?
• Start small. Use prototype.

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Technological Myopia Integration

• 4) Integration
• Integrate technology application to business
  strategy corporate culture - not simple. (what
  is culture?)
• The biggest obstacle is corporate culture. Be
  very sensitive to culture. (BIG deal)
• To bring about a revolutionary change, strong TOP
  mgmt leadership/commitment is needed.
• What if CEO does not buy-in? (what is needed?)