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Tools For Technology Management: An Academic Perspective
Tools For Technology Management: An Academic Perspective
D. Probert
University of Cambridge, Cambridge, UK
S. Banerjee
University of Strathclyde, Glasgow, UK
Abstract
The value of management tools is occasionally brought into question. The}'
are sometimes seen as some form of crutch which managers deploy instead
of thinking creatively. This paper attempts to clarify the nature of
management tools and argues a case for their appropriate use. The paper
distinguishes between tools and company procedures or systems and explores
some new categorisations. Focusing specifically on technology management
tools, the paper looks at where different tools have come from, and provides
examples from industry, government and consultancy companies. The role
academics can play in their development is explored, with the paper arguing
that they are in a rare position to impartially scrutinise and evaluate existing
tools as well as contribute to the development of new tools to solve unusual
and complex problems. © 1997 Elsevier Science Ltd
TedmvatJonVol.17No.8 417
T. Bradyet al.
There is a plethora of research into success and fail- important contribution to make in the development of
ure of innovations which can at least offer some poin- technology management tools.
ters to how innovation or technology management can
be improved. 2 From this large body of research one
can draw together a long list of factors, capabilities, 2. WHATAREMANAGEMEHTTOOLS,ANDCANTHEYBE
characteristics and mechanisms which firms may need
in place to be successful innovators. But, according
CATEGORISED?
to Mogee (1993), organisations often do not recognise It may seem to be a relatively straightforward ques-
the management of innovation as a specific issue or tion but, upon closer scutiny, a precise definition of
one that they should address systematically. She what constitutes a management tool proves to be
remarks that: rather difficult. Tools, techniques, methods, systems,
procedures and methodologies are all terms which
"There are no standard accepted practices for have been applied to various means of assisting
managing technological innovation today... [and- organisations to achieve particular objectives. Dic-
]...much work remains to be done in applying tionary definitions are not particularly useful in that
existing knowledge to innovation management there is considerable overlap between these terms. 3 In
practice, building and strengthening that body of general usage one might expect to differentiate
knowledge, and [our emphasis] developing between specific tools, methods and techniques and
reliable innovation management tools." the broader concepts o f c o m p a n y systems, models,
(Mogee, 1993) frameworks and procedures. In practice, however, we
find that their usage appears to overlap considerably
and, for the purposes of this paper, we deliberately
On the other hand, some commentators have adopt a loose definition in which a management tool
recently argued that what is needed is not more tools could be a document, a framework, procedure, system
but more thought. Ketelholm (1996), for example, or method which enables a c o m p a n y to achieve or
suggests that the use of tools and the following of clarify an objective. The objective may be a make-
procedures can lead to wrong decisions as they are or-buy decision, a forecast, an analysis or one of
frequently used as a substitute for thinking. Clearly many other tasks. A tool may be used by specific indi-
he has a point. But a poor carpenter shouldn't blame viduals or groups within a c o m p a n y or may be appli-
his tools! cable across the entire company.
This paper is a collaboration between individuals Within the definition suggested above, however, we
from four partner research groups in the E P S R C ' s can identify a number of dimensions or characteristics
Technology Management Initiative (TMI). It is an by which tools can be differentiated. For example, we
effort to clarify the nature and importance o f manage- have already implied that there are differences
ment tools and, in particular, to examine the role aca- between specific and generic tools. C o m p a n y pro-
demics can play in their development and dissemi- cedures and systems will tend to overlap with generic
nation to industry. It was not intended that this work tools, rather than specialised tools. However, once a
should provide a definitive method of assessing tools, general c o m p a n y procedure is tailored to meet the
nor comprehensively list those available on the mar- needs of a group it may well be classified as a spe-
ket. Rather, we hope to shed some light on issues and cific tool.
ideas in an area where there appears to be more con-
fusion than clarity. It might also be of interest to categorise tools by
degree of formality. While many c o m p a n y procedures
The paper begins by trying to define what is meant are likely to have been instituted via a top-down
by a management tool and how tools are related to approach, some tools might also be described as being
and differ from c o m p a n y procedures and systems. We bottom-up, or informal tools generated and used by
explore ways o f categorising tools before embarking
on an examination of technology management tools
in particular. W h o develops tools and what criteria 3 For example, accordingto Chambers' Dictionary a tool is something
govern the choice o f tools are addressed, and we end you need to pursue a particular activity, while a technique is the knack
of doing something (i.e. achieving a particular activity), or it can be
with a discussion on why academics have an a method or a procedure. A method can be the mode or rule used in
carrying out a task (achieving a particular activity) or it can be a sys-
tem or a procedure. A system can be a method or a full and connected
view of some department of knowledge (e.g. how to accomplish a
-' See, for example, Rothwell et al. (1974). Cooper (1979). Lilien and particular task or activity); a procedure is a method of conductingbusi-
Yoon (1989) for reviews of this work. ness.
individuals and small groups. These may not be cap- tools would tend to fall in the hard quadrants. They
tured within the formal procedures and systems of a have been designed with particular problems in mind
company but, nevertheless, may be extremely and in terms of a predetermined solution. With many
important for getting a job done. management tools the degree of hardness tends to be
lower and they are more likely to be found in the soft
Clearly, there is no single or best way of classifying quadrants where the task and solution are often less
management tools. Categorisations will depend on the well defined. However, in both cases there are dif-
task at hand. One potentially useful means of categ- fering degrees of task specificity so that tools can
orising tools is according to the type of work the tool occupy both quadrants irrespective of their degree
is meant to assist. For example: of hardness.
• positioning--those tools which help to clarify a Let us look at few examples to illustrate this. If the
company's relation to a sector, other firms or a task is to fix some beading onto a door, it is a well
new technology; defined problem. One well defined solution is to fix
• diagnostic--those tools for assessing how well the it with a panel pin. The tool to knock the panel pin
company performs against a particular aim; and in is a hammer--in particular, a panel pin hammer.
• intervention--or improvement; tools which are The link between the solution and the problem is well
used to perform activities with a particular aim defined. Here is an example of a tool with a high
in mind. degree of hardness and a high degree of task speci-
ficity. In Fig. 1 'panel pin hammer' appears in the
extreme top right-hand part of the top right quadrant.
Most management tools provide support for A claw hammer is as hard as a panel pin hammer (it
decision making at various levels in the organisation. has a limited number of ways in which it can be used),
Tools in the first category above can be used by senior but it is much more generic in task specificity than a
management to help provide direction to strategic panel pin hammer. It can be used on a wider range
questions such as which markets should be attacked, of fixing tasks, it can accommodate more variation in
what technologies should be used etc. Those in the nail size, and furthermore, it can also be used to pull
second category can be used to benchmark perform- out nails and in combination with chisels etc. For this
ance and to identify areas where attention needs to be reason 'claw hammer' does not appear in the same
placed. The final category includes the tools which quadrant as the panel pin hammer in Fig. 1 despite it
help specify the nature and causes of specific prob- being a hard tool.
lems and how they might be alleviated; plus the tools
needed to perform specific activities such as planning, Setting aside our analogy with engineering or craft-
monitoring etc. based tools, let us focus on some technology manage-
ment tools. The Capability Maturity Model (CMM),
While we perceive uses in differentiating between for example, is designed to provide software organis-
types of tools as described above, there are other ways ations with guidance on how to gain control of their
of categorising and contrasting tools. As a general software development processes and move towards a
starting point we found it helpful to categorise tools culture of software engineering and management
according to two basic dimensions which describe excellence 4. It is soft in that it is difficult to define
many of the key features of tools. These dimensions the precise problem being faced. It is also fairly task
are degree of hardness and degree of task specificity. specific in that it relates to the software development
Degree of hardness relates to how well defined is the process. A similar model, called Trillium, provides a
problem, the solution and the link between the two. benchmark of the best industry practices for the
'Hard' means a problem is well defined, there is a development of telecommunications software pro-
well defined solution and the link between them is ducts--particularly those that include embedded
also well defined. 'Soft' relates to an inability to pre- software. The model is essentially an extensive
cisely define a problem, the number of solutions, and checklist that enables organisations to rate and select
the indirectness of the link between the problem and suppliers of complex telecommunications products.
the solution. Thus it can be considered both softer and more task
Specific
÷ Trillium
* CMM
~, E n g i n e e r i n g
math. f o r m u l a
Very Hard
Very Soft
*- J I T
~
*, S i m u l a t i o n Degree of 'hardness'
P a c k a g e for
Workshops
BPR
* Cambridge MRP
University's ~- S p a n n e r
Workbooks
"~ C l a w
Facilitation/ hammer
OD Intervention
Generic
Notes:
Fig. 1. A simple classification of management and engineering tools (including selected examples)
specific than the CMM and, in Fig. 1, appears farther issues into a process which can be adapted to individ-
to the left and higher up in the top left-hand quadrant ual company circumstances.
than the CMM.
Precisely positioning tools in a quadrant is difficult,
Another example is MRP (Material Requirements especially where the tools are applied to different
Planning). This appears in the south-east quadrant problems. What is more important is the quadrant a
because it is relatively hard--the tool has to be used tool appears in. Whatever system of categorisation
in a fairly rigid way, with particular data being one might wish to use, some observations about the
entered in specific ways--but it can be used for a use of tools spring to mind from the above:
number of tasks within manufacturing (and is appli-
cable in a range of different manufacturing sectors). • firstly, the tool selected must be appropriate to
Compare this to the use of Organisational Develop- the problem;
ment (OD) intervention methods (sometimes referred • secondly, the person selecting the tool must know
to as facilitation), which appears in the bottom left of which tools are appropriate;
the south-west quadrant. OD intervention is very soft • thirdly, the person(s) using the tool must know how
because there is a lot of scope for manoeuvre in the to use it and the limitations of the tool in relation
way it is applied; it is a generic activity applicable to to the problem.
any organisation in any sector.
ment tools related to decision making and support cation, acquisition, absorption and market exploi-
around activities associated with innovation. tation. In addition to these are numerous tools, both
simple and complex, for intervening in particular situ-
There is a wide range of tools for assisting with ations in order to improve a company's technological
technology and innovation management (Brady, performance. The different tools are often used in
1995) and, in Table 1, we provide a list of references combination to aid in the location of problems, identi-
which give overviews and assessments of some of the fication of solutions and implementation of decisions.
tools on offer. The tools range from those which aim
to increase the general understanding of the process Technology audit tools often focus on artefacts and
of technological innovation--such as conceptual other readily measurable facets of technology, includ-
models of the innovation process--to those intended ing machinery, skilled people, patents and research
to help manage specific parts of the process. These and development facilities. However, increasingly,
latter typically provide assistance: analysts realise that less tangible forms of technology
(e.g. knowledge, skills and competences) are perhaps
• in strategic decision making about in which techno- even more important to a company's long-term suc-
logies to invest, cess. Performance in acquiring and improving such
• m R&D project selection, intangible assets through continuous learning and
• m new product selection, innovation often underpins company success and fail-
• m capturing customers' needs, ure in fast changing technology and market fields
• in designing new products, (Stata, 1989; Senge, 1990; Garvin, 1993). Within the
• m promoting creativity, and field of technology management it is these more
• in monitoring and controlling development pro- intangible aspects to which designers and developers
jects. of tools have increasingly been turning their attention.
Abetti (1989) examines the link between technology and business strategy.
Brady (1995) provides a broad overview of technology and innovation management tools, and discusses many important tools in some detail.
Burgleman et al. 11995) provides a good overview of strategic management of technology.
Cruickshank <1995) provides a review of tools and techniques for integrating technology into the business.
DTI/IFS (1994), based on the work of the CMEG, lotuses on manufacturing and provides a bibliography on tools and techniques (p. 97).
Dussuage et al. (1992) gives a broad account of technology management tools and techniques.
Hill (1994) provides a critical analysis of manufacturing tools and strategies (e.g. MRP)
McGrath et al. (1992) examines a stage/gate product development process--PACE.
Mills (1995) is a valuable workbot)k (a tool in its own right) on unanufacturing strategy, developed by the Cambridge Manufacturing Engineering Group (CMEG).
Proben (1997) provides a way of integrating manufacturing technology choices into a make or buy strategy.
Roussel et al. (1991) examines how best to manage R&D within a business context.
422 TechnovatJonVoi.17No. S
Toolsfor technologymanagement
Newprod, a software-based new product screening, to critically examine the claims, costs and benefits of
evaluation and diagnostic tool. The tool is based tools currently used in the market place. Most firms
on research into hundreds of new product launches do not have the time to assess all the competing
carried out during the late 1970s and 1980s. The claims. Also, unlike consultancy companies, academ-
tool involves up to a dozen evaluators assessing a ics (should) have no special interest in selling or pro-
project on each of 30 key questions collapsed into moting one particular tool over another. Academics
nine key success factors (product can, therefore, test and validate tools (independently
superiority/quality; economic advantage to the and impartially) and tend to be more detailed in speci-
user; overall company/project fit; technological fying their data requirements. In other words, aca-
compatibility; familiarity to the company; market demic researchers are in a rare position to bring a high
need, growth and size; competitive situation; degree of impartiality and objectivity to the assess-
defined opportunity; and project definition). The ment of tools, showing not only the advantages but
answers are used to create a profile which is com- also the disadvantages of particular tools and
pared to that generated by the scoring of hundreds methods. This can be taken a step further in that, hav-
of other projects in the database (Cooper, 1992). 7 ing identified such strengths and weaknesses (not just
• Sometimes government departments or quasi- through the formal evaluation of specific tools but
governmental organisations take a lead in the also by identifying managerial hot spots observed in
development of generic technology management empirical research), academics should be well placed
tools. For example, the UK National Economic to identify gaps in the tools portfolio or market.
Development Organisation (NEDO) was respon-
sible for the development of the Innovation Man- Second, at the practical level, there is the question
agement Tool Kit (IMTK), a diagnostic package whether academics should be involved, not just in the
consisting originally of 13 handbooks designed to evaluation of tools, but also in the development of
be used by companies to assist them in becoming new tools. Why should firms seek their participation
more competitive. Based on identification of best rather then solving their own tools problems in house
practice in some 50 UK manufacturing companies, or looking to the consultancy sector?
the IMTK involved managers and employees run-
ning through a series of tests to assess their per- In today's fast changing business environments,
formance against a set of ten key characteristics of leading companies often need to reach outside their
companies which manage innovation successfully. organisational boundaries. Indeed, knowledge-inten-
sive business or producer services have become one
of the growth sectors of the economy. Firms are often
too busy or lack knowledge of state-of-the-art tools
6. WHATCANACADEMICSCONTRIBUTETO and have increasingly sought assistance with hard and
soft technologies (Garvin, 1993). Aside from the time
CHNOLOGY
"I MANAGEMENTTOOLS? and resources issues, outside intervention can also
We have already referred to the fact that academia bring a useful comparative industry perspective. Out-
is one of the sources of new tool development. There siders may also bring new challenging ideas for facili-
are at least two important areas where high quality tating and diffusing new methods and tools (Stata,
academic research can make a distinctive contribution 1989; French and Bell, 1990).
to tools:
Given some need for outside assistance with tools,
• analytical and theoretical advances; and when should firms consider involving academics,
• practical tools for complex problem solving. rather than business consultants? Consultancy compa-
nies can be very effective at applying and adapting
current knowledge and tools for problem solving--
First, at the analytical level, academics are in a pos- and are important agents in the dissemination of best
ition to be able to impartially scrutinise and evaluate practice. However, few aim to generate new tools
existing tools. Unlike many user firms, academic based on new research data. Consultants, especially
research groups have (or should have) the competence larger ones, may be able to resolve a wide range of
standard problems using tried and tested method-
v This is an example of a stage/gate model, and there are others which ologies. However, most are less well positioned to
have been developed by consultants. These include Booz, Allen & develop new tools to solve unusual and complex
Hamilton's (1982) seven-stage product development process and Pitti- problems, particularly those which involve research.
glio, Rabin & McGrath's PACE (Product And Cycle-time Excellence)
tool which provides a blueprint for the management of the new product
development process (Jenkins et al., 1995). As implied above, academics tend to be good at or
TedmovatJonVol.17No.8 423
T. Brady et al.
have the right culture for absorbing, observing and in use. Towards this end, a number of factors were
scanning the relevant area with a view to developing identified which could usefully be developed further
new or novel application tools. Academics, parti- as a means of differentiating between types and uses
cularly those involved in applied or strategic research, of technology management tools. These included:
may well be in a position to help solve complex prob-
lems within their research domains more effectively • degree of formality;
than consultants. Unlike consultants, they have a • extent to which the tool is for positioning, diagnos-
long-term interest in generating data to develop new tic or intervention;
tools for emerging and complex problems. Further- • degree of hardness;
more, regarding the choice of technology manage- • degree of task specificity;
ment tools--an area fraught with difficulties for many • source;
companies--in their particular areas academic groups • extent of diffusion;
can help guide companies through the labyrinth of • intensity of use.
competing claims and help firms to avoid expensive
mistakes. 8
No doubt there are other factors which should be
To sum up, the potential contribution of academia
added to this list, and a more systematic approach
to tools lies in the areas of:
to evaluating the impact of management tools is also
required. In line with our examination of the role
• critical, impartial assessment of existing tools;
which the academic community might play in this
• identification of gaps in the field;
field, the design and development of a new system
• generation of new technology data to deepen
of classification and the objective application of the
understanding;
widespread assessment of tools would be a valuable
• using new data to develop new tools;
activity. Some of the projects within the EPSRC's
• engaging in specialist, complex problem solving
Technology Management Initiative are actively
with specific companies.
attempting to contribute towards these ends.
TedtimvaUonVol.17No.8 425
T. Brady etal.