Session 12 MANAGING TECHNOLOGY AND INFORMATION Mata kuliah: A0012 – Manajemen Umum Tahun: 2010

17-2 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 –how to manage technology for competitive advantage –how to assess technology needs –where new technologies originate and the best strategies for acquiring them –how people play a role in managing technology –how to develop an innovative organization –the key characteristics of successful development projects

Outline Materi 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 Bina Nusantara

17-4 Technology And Innovation Technology –the methods, processes, systems, and skills used to transform resources into products Innovation –a change in technology –process innovations - changes that affect the methods of producing outputs –product innovations - changes in the actual outputs themselves

17-5 Technology And Innovation The technology life cycle –a predictable pattern followed by a technological innovation starting from its inception and development to market saturation and replacement –cycle begins with the recognition that applied science can satisfy a need –knowledge and ideas brought together, culminating in a technological innovation –rate of product innovation tends to be highest in early years –dominant design emerges when early problems are solved –technology reaches upper limits of performance capabilities –the technology remains in mature stage until it is replaced

17-6 The Technology Life Cycle Theoretical maximum Performance Time Early problems Emergence of a dominant design Development slows as a limit is approached

17-7 Technology And Innovation (cont) Diffusion of technological innovations –spread in the use of new technology over time follows an S- shaped pattern –adopters of new technology fall into five groups innovators - adventurous early adopters - critical to the success of a new technology –include well-respected opinion leaders early majority - take longer to decide to use something new late majority - approach innovation with great caution –adopt out of economic necessity or increasing social pressure laggards - isolated and highly conservative

17-8 Technological Innovation In A Competitive Environment Technology leadership –can be used to support low-cost and differentiation strategies –imposes costs and risks –not the best approach for every organization

17-9 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 needs and technology skills –potential benefits of the new technology also a consideration

17-10 Assessing Technology Needs Measuring current technologies –technology audit - process of clarifying the key technologies upon which an organization depends –most important dimension of a new technology is its competitive 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 –offer little competitive advantage

17-11 Assessing Technology Needs (cont.) Assessing external technological trends –Benchmarking - process of comparing the organization’s technologies with those of other companies important to consider practices of overseas competitors focus is what is currently being done –Scanning - focus is what can be done and what is being developed emphasizes identifying and monitoring the sources of technology in an industry extent of scanning determined by the importance of staying at the cutting edge of technology

17-12 Framing Decisions About Technological Innovation Anticipated market receptiveness –in the short run, there should be an immediate application that demonstrates the value of the new technology –in the long run, a set of applications must show the technology is the proven means to satisfy a market need Technological feasibility –visions can stay unrealized for a long time –technical obstacles may represent barriers to progress Economic viability –must be a good financial incentive for the new technology development results in costs patents help to recoup the costs

17-13 Framing Decisions About Technological Innovation (cont.) Anticipated competency development –technological innovations are the tangible product of intangible knowledge and capabilities that make up the organization’s core competencies –firm’s must have (or develop) the internal competencies needed to execute their technology strategy Organizational suitability –assess the fit of technological innovation with the organization’s culture and managerial systems proactive” technology-push” innovators defender - have a more circumspect posture toward innovation analyzer - allow others to prove the viability of the technology

17-14 Sourcing And Acquiring New Technologies Make-or-buy decision –the question an organization asks itself about whether to acquire new technology from an outside source or develop it itself –Internal development - potentially advantageous to keep the technology proprietary –Purchase - most technology is available in products or processes that can be openly purchased –Contracted development - contract development to an outside source –Licensing - when technology is not easily purchased, may be able to license it for a fee

17-15 Sourcing And Acquiring New Technologies (cont.) Make-or-buy decision (cont.) –Technology trading - may be used between rival companies becoming increasingly common because of the high cost of developing advanced technologies independently –Research partnerships - each member enters the partnership with different skills or resources needed for successful new- technology development –Joint venture - have greater permanence outcomes result in entirely new companies –Acquisition of an owner of the technology outright purchase of the entire company acquiring a minority interest to gain access to the technology

17-16 Organizing For Innovation Bureaucracy busting –bureaucracy is an enemy of innovation –establish special temporary project structures that are isolated from the rest of the organization allowed to operate under different rules –angura - “underground research” policy that allows Japanese scientists to pursue projects about which only their immediate supervisor knows –cross-functional teams - solve problems and create innovative solutions are flat structures that create an environment that encourages collaboration and creativity

17-17 Organizing For Innovation (cont.) Implementing development projects –development project - focused organizational effort to create a new product or process via technological advances fall into one of four categories –research or advanced development projects - designed to invent new science for application in a specific project –breakthrough development projects - designed to create the first generation of a product or process –platform development projects - establish the basic architecture for a whole set of follow-on projects –derivative development projects- designed to provide incremental improvements to an existing product or process development projects have multiple benefits

17-18 Organizing For Innovation (cont.) Technology, job design, and human resources –adopting a new technology typically requires changes in the way jobs are designed –sociotechnical systems - approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work managerial choices on how to apply a new technology –used to limit the tasks and responsibilities of workers –used to achieve great accomplishments and improve the quality of workers’ lives –must consider the effect of technology on other human resource systems