Module 2: Managing Technology

Topic 4: Information Technology

Role in Organizational Change
 Pressures for Change

• People
• Technology
• Information processing and
communication
• Competition
 Models for Change Process

Researchers use a model to illustrate a

change process
• Lewin’s process model
• Moorhead & Griffin’s Continuous
change process model
• Venkatraman’s stages of change
 Lewin’s Change Process

• Three-stage model
• Unfreeze  Change  Refreeze
 Continuous Change Process
Model (Moorhead & Griffin 1995)
• Change is complex and ongoing.
• Introduce a “change agent” as a
facilitator
• IS/IT as a change agent.
 Stages of Change (Venkatraman 1991)

• Change enabled by IT
• Five stages of change
• 1. Localized exploitation
• 2. Internal Integration
• 3. Business process redesign
• 4. Business network redesign
• 5. Business scope redefinition
 IT as a Change Agent

• IT as an agent for social change

• IT has changed the way businesses
are conducted and the way we work
 Development of Technology
Capabilities
• Once we understand the role of IT
(the previous slides) and the concept
of technology strategy (Topic 3), the
next step is to build technology
capabilities to accomplish the
strategic and operational goals.
 Technology Capability

Definition
• Technology assets a firm processes
which have strategic significance, as
well as the processes and practices
by which these assets are developed
and exploited (Harrison & Samson 2002)
 Core Technological Capabilities
Component
• Skills (reside in human capital)
• Organizational routines (share risk and
responsibility)
• Specific assets (Shareable platforms and
databases)

• Ross et al. (1996) call these as 3 IT assets

(Human, Relationship, and Technology
Assets)
Reference: Ross et al. (1996) Developing Long-Term Competitive Through
IT Assets, Sloan Management Review, 31-42.
 Develop Technology-based Capability
Three phases of technology development
(Jaikumar & Bohn, 1986)

• Phase 1: allows technology to be

developed and implemented but not easily
modified or enhanced
• Phase 2: fines tune the system
• Phase 3: automates process control
These 3 phases can be applied to both
process technology and product
technology.
 Technology-based Capability

• We can view certain technologies

generically in terms of their position
or stage of development.
• Within a firm where many
technologies exist, we can view a
portfolio of technical assets that
consist of mature and innovative
technologies
 Managing Technological Capabilities
• Requires a strategic approach
• Treats technology as a strategic tool
(instead of expense)
• Includes technology in the business
strategy
• A sustainable source of competitive
advantage is the ability to respond
consistently to changing markets with
new and improved products and ever
improving competitiveness (Stalk 1992)
 Strategic Value

Reasons why a capabilities focus

increases the strategic value
• Dependency of technological assets
• Increased strategic relevance of
support activities
• Complexity and organizational
diffuseness of technical processes
 Diffusion and Adaptation

• Technology transfer is a “process of

movement or transfer of information,
technical know-how, and people among
corporate technical and non-technical
functions in order to yield innovative
products and services that meet the
goals and fulfill customer needs.”
(Hamilton, 1992)
 Barriers of Technology
Transfer
• Technical Barriers
• Attitude Barriers

Comparison between US firms and

Japanese firms in terms of their
success/failure in transferring
technology (p. 42 –43)
 Critical Success Factors
• A focus on the development of technological
capabilities
• An ability to develop a strategic technology
culture
• The recognition of the importance of
technological assets
• An ability to balance short-term
requirements with long-term goals
• An ability to effectively adapt to
technological change
• Top management commitment and support