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Management: Bateman Snell
Management: Bateman Snell
Management: Bateman Snell
Bateman Snell
Management Competing
in the
New Era
5th
Edition
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-2
Part Five
Chapter 17 - Managing Technology and Innovation
Chapter Outline
Technology and Innovation
Technological Innovation in a Competitive
Environment
Assessing Technology Needs
Framing Decisions about Technological
Innovation
Sourcing and Acquiring New Technologies
Technology and Managerial Roles
Organizing for Innovation
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-3
Learning Objectives
After studying Chapter 17, you will know:
the process involved in the development of new technologies
how technologies proceed through a life cycle
acquiring them
how people play a role in managing technology
producing outputs
product innovations - changes in the actual outputs
themselves
Entrepreneurial
initiate needed
to pull elements
Required
together
resources are
Able to convert available
the knowledge
Knowledge to into practice
meet the demand
is available
Demand for
the technology
need
knowledge and ideas brought together, culminating in a
technological innovation
rate of product innovation tends to be highest in early years
Emergence of a
dominant design
Early
problems
Time
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-8
innovators - adventurous
early adopters - critical to the success of a new technology
Technology Dissemination
Pattern And Adopter Categories
100
90
80
Percentage of adopters
Cumulative
70 S-shaped curve
60
Early
50 adopters
13.5% Bell-shaped
40 frequency curve
30 Innovators
Early Late
2.5%
majority majority
20 34% 34%
Laggards
10
16%
Time
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-10
Technological Innovation In A
Competitive Environment
Technology leadership
can be used to support low-cost and differentiation strategies
imposes costs and risks
Technological Innovation In A
Competitive Environment (cont.)
Technology followership
can be used to support low-cost and differentiation strategies
adoption timing is dependent on the organization’s strategic
Dynamic Forces Of A
Technology’s Competitive Impact
Gradual
diffusion
Ongoing Innovation/dynamic
development competitive impact
Complementary
innovations
value
emerging technologies - still under development and unproven
may alter rules of competition in the future
pacing technologies - yet to prove full value
have potential to alter the rules of competition
key technologies - proven effective and provide a strategic advantage
base technologies - are commonplace in the industry
Economic viability
must be a good financial incentive for the new technology
development results in costs patents help to recoup the costs
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-17
technology proprietary
Purchase - most technology is available in products or
source
Licensing - when technology is not easily purchased, may be
initiatives
Entrepreneur
inventsnew ways to produce old products as a way of
exploiting new technologies
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-22
Inspire intrapreneurship
Tolerate failure
solutions
are flat structures that create an environment that encourages
collaboration and creativity
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved
17-25
Own Present
Value:
and solve
Egalitarianism Integrate Value:
problems
internal Shared
Managerial system: knowledge knowledge
External Intellectual Managerial system:
Assets
Value: Openness Integrate Internal
to outside external
knowledge knowledge Value:
Experiment
Managerial system: continuously Positive risk
Future Managerial system:
workers’ lives
mustconsider the effect of technology on other human resource
systems
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved