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Technology Strategy
Technology Strategy
Technology Strategy
Quality
Low High
Price
High Avoid Maybe
Methods used in strategic analysis
Market Dominance
Low High
Market growth High Problem children Stars
Low Dogs Cash cows
Portfolio Strategy
classification
Stars Continue the product development effort
Focus on core competencies
Continue market development and market penetration
Consider vertical integration or product diversification to
reduce risks
Cash cows Consider diversifying into higher growth areas
Pursue joint ventures
Utilize market segmentation strategies and pursue defensive
R&D to keep their products competitive
Methods used in strategic analysis
A mx n matrix can be utilized to aid in decision making when decision criteria have
multiple levels
Technical
competence
High Star Success Doubt
cutting edge
Medium Success Doubt Failure
state of the art
Low Doubt Failure Disaster
obsolete
Technology Evaluation for adoption
decision
Phase Actions
Phase 1: Identifying the technologies and Identify all the possible technologies that
the attributes (the criteria for selection) are capable of solving a problem. List all
the attributes , positive and negative,
associated with each technology
Phase 2: Rating the technology according Rate each technology based on the
to specific attribute attribute list identified in Phase I
Phase 3: Rating the importance of each Evaluate the importance of each attribute
attribute with the application being considered
Phase 4: constructing the decision matrix
Attribute Name of Device 1 Device 2 Device 3 Device 4 Device 5
ranking attribute
2 1 5
10
0 2
1 3
2 4
Total
Voice Mag. Slot Wand OCR hand laser
held
5 Price of
reader
4 Substituti
on error
rate
1 Price of
media
2. Life of
media
SWOT matrix
Strengths (S) Weaknesses (W)
List strengths List Weaknesses
Opportunities (O) SO Strategies WO Strategies
List Opportunities
Use strengths to take Over come weaknesses by
advantage of opportunities taking advantage of
opportunities
List threats Used strengths to avoid threats Minimize weaknesses and avoid
threats
Technology Strategy: Definition
Full Selective
Execution
Appropriate form of collaborative
arrangements
Technology
Existing New but familiar New and un
familiar
New and Joint venture Venture capital Venture capital
unfamiliar Venture nurturing Venture nurturing
Educational Educational
acquisition acquisition
New but Internal market Internal venture Venture capital
Market familiar development Acquisition Venture nurturing
Acquisition Licensing Educational
acquisition
Existing Internal Internal product new style joint
development (or development venture
acquisition) Acquisition
Licensing
Collaborative arrangements
Involve two or more firms
Partners learn and acquire from each other
the technologies, products, skills and
knowledge that are otherwise not available
New trends in collaborative
arrangements
R&D alliances
Marketing alliances
Outsourcing arrangements and
Collaboration between small and large firms
Sharing of resources
Pooling of risks
Leveraging each others
capabilities
Small firms
Small-large firms To build new technology
collaboration Build company resources
Access to expert user
Open new markets
Product development
Gain major overseas principal
Extend range of company and increase
distribution network
Collaboration may be
STRATEGIC or
OPERATIONAL
STRATEGIC
1. Controlling the evaluation of competitive
domains
Dominant design
Establishment of standards
Cooperative research to compete with other firms
in the technology development
Obtain favorable treatment from the government
2. Knowledge acquisition and transfer
P&Gs diversification in to the biotechnology was
implemented through a series of acquisitions
3M routinely invests in small firms to gain
technology in the form of products and process
3. Links to environment
Firms encourage to maintain links to people and
information
Senior science personnel will be members of
advisory committee
Operational
Competitive benchmarking is used to
improve their current operations
Operating efficiencies outsourcing
Time to market
Capturing value from technology development
Collaborative arrangements in
domains of technology strategy
Collaborative arrangements can be made in
Four domains of technology strategy
1. Appropriation of technological capability
2. Deployment in new products
3. Deployment in the value chain
4. Deployment in marketing of technology
1. Appropriation of technology
A. Collective research
Research ranges from fundamental research to testing and
measuring with many associations engaging in more than
one activity
Uses collective facilities of the members, own-in-house-
sites, non-profit institutes etc
A strong relationships exists between the universities and
collective research organizations and government facilities
B. Strategic alliances
Firms undertake joint endeavors with other firms for
appropriation, deployment and marketing of technologies
Benefits are strictly proprietory
1. A. Collective research organisations
Trade/ Industry University Company Research
associations associations based centers funded corporations
foundations research
institutes
Objective Non Competitive Competitive Noncompetitiv Competitive
competitive research research e research research
research
Focus of Technical and Research Mission based Technical Technical
activity nontechnical programs advance,
activity research
related to
public welfare
Facilities Mostly owned University- University- Owned Owned
based or based
owned
Funding by Member Member Industry Member Group of
companies companies support companies companies
Proprietary Mostly non Mostly non Mostly non non Prop and non
proprietary proprietary proprietary proprietary proprietary
1. B. Strategic alliances
Corporate venturing relationship between a
small and large company. A mechanism for
technology flow.
Joint technology development: Two or three
firms come together for a limited period of time
to conduct research projects. Partners can bring
technology, marketing, management or operating
expertise
Outsourcing: firms contracts out some activity in
technology appropriation
2. Deployment of technology in new
products
Speeding the time to market and creating
potential for new products through
technology integration are propelling the firms
to undertake joint activities
Inward technology Licensing (ITL) : refers to
contractual arrangement. Obtained through
patents, trademarks, manufacturing,
marketing and technical expertise)
ITL advantages and disadvantages
The investment in ITL is lesser than the
developing a new product
Faster method of acquiring and upgrading
internal capabilities
Relatively lower degree of control over
technology
Lengthy transactional cost and negotiations
3. Deployment of technology in the
value chain
Logistic alliances : to minimize storage
operating costs and distribution costs
Information partners
Joint Marketing partnerships
Inter-Industry partnerships
Customer-supplier partnerships
IT vendor driven partnership
Outsourcing
4. Marketing of technology
Firms that have technology capabilities
partner with firms that need the requisite
technology for mutual benefit
Corporate Technology Outsourcing Marketing of
venturing appropriation technology
Objectives Enabler of Joint Building Appropriating
technology development relationships to value from
strategy of products perform key technology
and processes activities developed in-
house
Typical Financial Joint venture, Manufacturing Licensing
arrangements participation, Joint R&D capacity consulting
equity utilization services
purchase,
acquisition
Type of Long-term
arrangement exclusive