Wheelen/Hunger

1
Chapter 11

• Strategic Issues in Managing Technology and
  Innovation
• PowerPoint Slides
• Anthony F. Chelte
• Western New England College

2
Strategic Issues in Managing Technology and
Innovation

• Role of Management
• Innovation
• Management of technology

3
Strategic Issues in Managing Technology and
Innovation

• Role of Management
• Encourage new product development
• 33 - 60 percent of new products fail to make a
  profit
• Ensure that technology is being used most
  effectively with the consumer in mind.

4
Strategic Issues in Managing Technology and
Innovation

• Environmental Scanning
• External Scanning
• New developments in technology

5
Strategic Issues in Managing Technology and
Innovation

• Impact of Stakeholders on Innovation
• Lead Users
• Lay the foundation
• Determine the trends
• Identify lead users
• Develop the breakthrough

6
Strategic Issues in Managing Technology and
Innovation

• Impact of Stakeholders (continued)
• Market research
• New product experimentation

7
Strategic Issues in Managing Technology and
Innovation

• Internal Scanning
• Has the company developed the resources needed to
  try new ideas?
• Do the managers allow experimentation with new
  products or services?
• Does the corporation encourage risk taking and
  tolerate mistakes?
• Are people more concerned with new ideas or with
  defending their turf?
• Is it easy to form autonomous project teams?

8
Strategic Issues in Managing Technology and
Innovation

• Resource Allocation Issues
• RD Intensity
• Spending on RD as a percentage of sales revenue
• Principle means of gaining market share

9
Strategic Issues in Managing Technology and
Innovation

• Time to Market Issues
• Time from inception to profitability
• Cycle is short 4 years

10
Strategic Issues in Managing Technology and
Innovation

• Strategy Formulation
• RD Strategy
• Leader or follower in terms of technology and
  market entry
• Source of technology
• Develop
• Purchase

11
Strategic Issues in Managing Technology and
Innovation

• Product vs. Process RD
• Product innovations
• Process innovations

12
Product and Process RD in Innovative Life Cycle
13
Strategic Issues in Managing Technology and
Innovation

• Technology Sourcing
• Make or buy decision
• Strategic alliances

14
Strategic Issues in Managing Technology and
Innovation

• Outsourcing Technology
• Technology is of low significance to competitive
  advantage
• Supplier has proprietary technology
• Suppliers technology better/cheapereasy to
  integrate
• Strategy not based on development and
  manufacturing
• Technology development process requires special
  expertise
• Technology development process requires new
  resources

15
Strategic Issues in Managing Technology and
Innovation

• Technological Competence
• Absorptive capacity
• A firms ability to value, assimilate, and
  utilize new external knowledge.

16
Strategic Issues in Managing Technology and
Innovation

• Product Portfolio
• Product/market evolution matrix
• Competitive positions
• Stages of product/market evolution

17
Strategic Issues in Managing Technology and
Innovation
18
Strategic Issues in Managing Technology and
Innovation

• Innovative, Entrepreneurial Culture
• Positive attitude toward change
• Decentralized decision making
• Complexity
• Informal structure
• Interconnectedness
• Organizational slack
• Large size
• System openness

19
Strategic Issues in Managing Technology and
Innovation

• Stages of New Product Development
• Idea generation
• Concept evaluation
• Preliminary design
• Prototype build and test
• Final design and pilot production
• New business development

20
Strategic Issues in Managing Technology and
Innovation

• Entrepreneurial Roles
• Product champion
• Sponsor
• Orchestrator

21
Strategic Issues in Managing Technology and
Innovation

• Entrepreneurial Roles
• Product Champion
• Generates new idea and supports it through many
  organizational obstacles.

22
Strategic Issues in Managing Technology and
Innovation

• Entrepreneurial Roles
• Sponsor
• One who recognizes the value of the idea, helps
  obtain funding, facilitates implementation.

23
Strategic Issues in Managing Technology and
Innovation

• Entrepreneurial Roles
• Orchestrator
• Top management who articulates the need for
  innovation, provides funding for innovating
  activities, creates incentives for middle
  management, protects idea/product champion from
  other executives.

24
Strategic Issues in Managing Technology and
Innovation

• Corporate entrepreneurship
• Intrapreneurship
• Internal innovation or venturing
• Transformation of organizations
• Strategic renewal

25
Strategic Issues in Managing Technology and
Innovation
26
Strategic Issues in Managing Technology and
Innovation

• 13 Best Practices for Improving RD
• Strategies are well defined and clearly
  communicated
• Core technologies are defined and communicated to
  RD
• Investment in developing multinational RD
  capabilities
• Funding for basic research with long-term focus

27
Strategic Issues in Managing Technology and
Innovation

• 13 Best Practices for Improving RD
• Centralized basic and applied research facilities
• Formal, cross-functional teams
• Mechanisms for regular interaction among
  scientists and RD and other functions
• Analytical tools used for selecting projects

28
Strategic Issues in Managing Technology and
Innovation

• 13 Best Practices for Improving RD
• Technology transfer to business units
• Career development at all levels in RD
• Effective and diverse recruitment
• Internal development and third-party
  relationships
• Mechanisms are used for monitoring external
  technological developments