Strategic Management of Tech, Innovation: Session 2

S. Rajeev and J Ganguly 16 Jun 2012

Agenda
Case Readings Preview of another reading

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Case

Advent
What are the key elements in Advents strategy? How successful has Advent been and why? What are Advents distinct tech competencies? Please construct a matrix showing the competencies embodied in different segments of the audio business. How is this different from the video business? What are the key issues and problems facing Advent? Please prepare a detailed action plan. Characterize Klosss style as a general manager. Does he need to change? How?
IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Readings

Prahalad: Core competence (Pg. 67-77)

Core competence vs. SBU What is a core competence?
Potential access to wide range Significant contribution to perceived customer benefit Difficult for competitors to imitate

From competences to products Velocity of circulation of core competences

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Burgelman: Technology Strategy

Design and Implementation of Technology Strategy: An Evolutionary Perspective

A Capabilities-Based Organizational Learning Framework of Technology Strategy

Techno logical capabil ities

Techno logy strateg y

Experi ence

2-11

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Design and Implementation of Technology Strategy: An Evolutionary Perspective

Internal Environment

Generative Mechanisms

Determinants of Technology Strategy

Strategi c action

Organizational context Techn ology strateg y Industry context

Integrative Mechanisms

Technolog y evolution

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

External Environment

Design and Implementation of Technology Strategy: An Evolutionary Perspective

STRATEGIC ACTION: Induced Adjustment, Inertia Autonomous Renewal Strategic intent Transformational

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Design and Implementation of Technology Strategy: An Evolutionary Perspective

ORGANIZATIONAL CONTEXT: Concept of Strategy Internal Selection Environment
Structural context Strategic context

Dominant Culture
Science vs. Engineering vs. Manufacturing Reflects distinctive competence Reflects Product Architecture

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Design and Implementation of Technology Strategy: An Evolutionary Perspective

INDUSTRY CONTEXT: 1. Industry Structure 2. Appropriability regime 3. Complementary Assets 4. Increasing Returns to adoption 5. Industry Standards 6. Social Systems Aspects of Industry Development 7. Non-Market Forces: Government
IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Design and Implementation of Technology Strategy: An Evolutionary Perspective

II. The Substance of Technology Strategy 1. Competitive Strategy Stance: Technology Choice for Competitive Advantage Technology Leadership/Followership Technology Entry Timing Technology Licensing 2. Value Chain Stance: Scope of Technology Strategy 3. Resource Commitment Stance: Depth of Technology Strategy 4. Management Stance: Organizational Fit
IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Technology Strategy Framework

Robert A. Burgelman
HOW TO USE THE FRAMEWORK 1. Start by asking what, in general, is the stated technology strategy of the company. To answer this question, each of the four substantive dimensions of technology strategy must be considered.
Competitive stance. In general, does the company want to be a leader or a follower? Does it want to be a first mover or move later?

a.

b.

Value chain stance (scope of technology strategy). In general, where in its complete value chain does the company deploy technology for competitive advantage? How many core technologies does the company have and what are they?
Resource stance (depth of technology strategy). In general, what is the magnitude of the resource commitment in each core technology? What are technological options the company has in each area? Management stance (Organizational fit). In general, how well do the organizational and management approaches of the company support the other 3 stances of technology strategy? Are these approaches consistent?

c.

d.

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IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Substance and Enactment in Technology Strategy

Enactment (Modes of Experience)
Substance
External Technology Sourcing Internal Technology Sourcing Product Development Process Development Technical Support

Competitive Strategy Stance (Choice / leadership / Entry timing / licensing) Value chain stance (Scope) Resource commitment stance (Depth) Management stance (Organizational fit)
IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

PREVIEW OF CHRISTENSEN PAPER

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

The failure of leading firms

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation