You are on page 1of 33

1

MANAGEMENT OF
INNOVATION &
TECHNOLOGY
INTRODUCTION & OVERVIEW
Accessing Module Material
USERNAME:
TECHMIT@outlook.com

PASSWORD: SOBA201314

2
3
Objectives
1. Introduce the theoretical foundation of the text.

2. Define the term technology.

3. Discuss technology as a socially constructed
concept and the management of technology.

4. Identify key concepts and major themes used
in the text.
4
SUMMARY
The role of technology in the
development of new products and
processes and its contribution to
productivity enhancement have not
gone unnoticed by firms. This lecture
highlights the significance of
technological advances on industry in
the past century.
5
This impact is most noticeably felt by the
role of the Chief Technology Officer,
evolving from a technical expert, focusing
on the technology itself, to more of a
customer- and market-driven perspective.
Inherent in this paradigm shift is the
recognition that technology development
occurs through a process of social
construction and decision making at
individual and collective levels
SUMMARY
6
This lecture offers a framework to
understand the management of
technology and innovation by
viewing organizations as an open
system or a set of interrelated
activities that interface with the
environment. These include:
SUMMARY
7
(1) viewing the firm as a value chain where
it is a collection of activities that are
performed to design, produce, market,
develop, and support its products;

(2) recognizing competitive domains of
industry where value appropriation
depends on industry attractiveness;
SUMMARY
8
(3) balancing the way an organization
conducts its business (process oriented)
with the output (product oriented) through
technological change. These factors all
contribute to a firms competitive
advantage: the ability to return a
consistently higher rate of profit, or
potential to earn a persistently higher rate
of profit over industry rivals.
SUMMARY
9
The nine themes for the MODULE are:
1) generic applicability;
2) interfacing of technology and market
factors;
3) the influence of globalization;
4) simultaneity of competition and
collaboration;

SUMMARY
10
5) speed in problem solving;
6) make or buy;
7) systemic view of management;
8) role of learning; and
9) high-tech and high-touch.
SUMMARY
11
SUMMARY
Technological innovation is now
often the single most important
competitive driver in many
industries. Many firms receive
more than one-third of their sales
and profits from products
developed within the past five
years.

12
SUMMARY
The increasing importance of
innovation has been driven
largely by the globalization of
markets and the advent of
advanced technologies that
enable more rapid product design
and allow shorter production runs
to be economically feasible.
13
SUMMARY
3. Technological innovation
has a number of important
effects on society, including
fostering increased GDP,
enabling greater
communication and mobility,
and improving medical
treatments.
14
SUMMARY
4. Technological innovation
may also pose some negative
externalities, including
pollution, resource depletion,
and other unintended
consequences of technological
change.

15
5.While government plays a
significant role in innovation,
industry provides the majority
of R&D funds that are
ultimately applied to
technological innovation.

SUMMARY
16
6.Successful innovation
requires an in-depth
understanding of the dynamics
of innovation, a well-crafted
innovation strategy, and well-
developed processes for
implementing the innovation
strategy.

SUMMARY
17
THEORETICAL FOUNDATION
Management of technology
The major principles that underpin the
management of technology
The activities involved in technology
management
The general role and functions of
technology management.
18
TECHNOLOGY: DEFINITION
Technology is defined as:
The branch of knowledge that deals with
industrial arts, applied science, or engineering
The terminology of an art or science; or
A technological process, invention, method, or
the like and some of the ways in which a social
group provides themselves with the material
objects of their civilization.
19
Technology has several meanings, varying
from product to the various disciplines of
science and engineering.
Technology speaks to the notion of knowledge.
Nb.
1. Knowledge or technology development spans
several levels
2. The development is the outcome of a process
of social construction.


TECHNOLOGY: DEFINITION AND
CHARACTERISTICS
20
1. Opportunity Technology development takes
place when human beings perceive an
opportunity for improvement due to either intrinsic
or economic reasons
2. Appropriability Where technology development
is due to economic motives, individuals will
pursue development only to the extent that there
is an assurance that the fruits of their labour will
flow back to the developers.
TECHNOLOGY:
CHARACTERISTICS
21
3. Transferability Technology or knowledge
transfer is not smooth; knowledge is sticky.
problem of communication.
4. Resources Technology development
consumes resources money, time, people &
collateral assets

TECHNOLOGY IS THE OUTCOME OF A
SOCIALLY CONSTRUCTED PROCESS OF
KOWLEDGE DEVELOPMENT AND
UTILIZATION
TECHNOLOGY:
CHARACTERISTICS
22
MANAGEMENT OF
TECHNOLOGY
Management of Technology can be traced
to the 1950s when Research &
Development (R & D) management ideas
were developed.
Management of Technology links
engineering, science, and management
disciplines to plan, develop, and to
implement technological capabilities to
shape and accomplish the strategic and
operational goals of an organization.
23
Management of Technology focuses
on the principles of strategy and
organization involved in technology
choices, guided by the purpose of
creating value for investors.

MANAGEMENT OF
TECHNOLOGY
24
MANAGEMENT OF
TECHNOLOGY 4 CONCEPTS
1. The firm as a value chain

2. Industries as competitive domain

3. Forms of technological change

4. Value creation and competitive
advantage.
25
Firm as a Value Chain
Primary activities: consist of activities that are
involved in taking the raw materials and
developing the products and services to the
customers. There are five generic sets of
primary activitiesinbound logistics, operations,
marketing, outbound logistics, and service.
Support activities: involved in competing in an
industry; can be divided into four generic
categories: procurement, technology
development, human resources management,
and firm infrastructure.
26
Industries as Competitive Domains
1. Capacity-driven industries: physical capital
investments seem to be relatively large in
relation to cost or value added
2. Customer-driven industries: investments in
brands or customer relations generally account
for a large part of the cost or value-added
3. Knowledge-driven industries or high-
technology industries: investments in R&D trend
to account for a large part of the cost or value-
added
27
Forms of Technological Change
1. Process technology: pertains to the
techniques of producing and marketing
goods and services including work
methods, equipment, distribution, and
logistics
2. Product technology: refers to the
elements of technology embodied in the
goods and services of a firm
28
3. Distinctions between product and
process technology

a) Relative to changes in products, process
technology changes are much less visible in
the marketplace.
b) Both process and product technology
changes have ramifications for the economic
performance of the firm.
c) Process and product technologies have
different consequences for a firm.

Forms of Technological Change
29
Value Creation and Competitive
Advantage

1. Competitive advantage is the
ability of the firm to outperform rivals
on profitability.
30
MAJOR THEMES - 5
1. Technology and innovation are value
drivers and that management decisions
should be anchored in the fundamental
objective of creating competitive
advantage
2. An open systems view of management
and the role of environment in
management decisions globalization,
time compression, & technology
integration
31
3. The role of the General Manager

4. The importance of organization learning
through scanning, by doing, reflecting, and
analyzing.

5. Bootstrapping between theory & practice.
=================

MAJOR THEMES - 5
32
MAJOR THEMES IN THE
MODULE
1. Generic Applicability
2. Interfacing of Technology and Market
Factors
3. The Influence of Globalization
4. Simultaneity of Competition and
Collaboration
5. Speed in Problem Solving
6. Make or Buy
7. Systemic View of Management
8. Role of Learning
9. High-Tech and High-Touch
33
Excelle
nt
Good Avg. Fair Poor
AREA OF ASSESSMENT 5 4 3 2 1
Introduction
Main ideas/points stated clearly and logically
Main ideas/points supported by examples
Identified Implications for management
Recommendations
Conclusion well summed up
Quality of the language/grammar
TOTAL 0 0 0 0 0
WEB CASES ASSESSMENT