CHAPTER 12 Strategic Issues in Managing Technology and Innovation STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER Prentice Hall, Inc. © 2008 Prentice Hall 2006
Executive Fear over loss of Innovation Prentice Hall, Inc. © 2008 Prentice Hall 2006
The Role of Management – Technology and Innovation The Role of Management – Innovation Management of technology Prentice Hall, Inc. © 2008 Prentice Hall 2006
Environmental Scanning – Technology and Innovation Environmental Scanning – External Scanning New developments in technology Prentice Hall, Inc. © 2008 Prentice Hall 2006
Impact of Stakeholders on Innovation – Technology and Innovation Impact of Stakeholders on Innovation – Lead Users Process Lay the foundation Determine the trends Identify lead users Develop the breakthrough Prentice Hall, Inc. © 2008 Prentice Hall 2006
Impact of Stakeholders on Innovation – Technology and Innovation Impact of Stakeholders on Innovation – Market Research New Product Acquisition Prentice Hall, Inc. © 2008 Prentice Hall 2006
Environmental Scanning – Technology and Innovation Environmental Scanning – Internal Scanning Resource development Experimentation Risk taking New ideas Autonomous project teams Prentice Hall, Inc. © 2008 Prentice Hall 2006
Environmental Scanning – Technology and Innovation Environmental Scanning – Resource Allocation Issues R&D intensity Time to market issues Prentice Hall, Inc. © 2008 Prentice Hall 2006
Product & Process R&D Innovation Life Cycle Prentice Hall, Inc. © 2008 Prentice Hall 2006
Outsourcing Technology – Technology and Innovation Outsourcing Technology – Low significant to competitive advantage Supplier has proprietary technology Supplier’s better Strategy based on design not development Requires special expertise Requires new people and resources Prentice Hall, Inc. © 2008 Prentice Hall 2006
Intellectual property – Technology and Innovation Intellectual property – Special knowledge used in new product or process Prentice Hall, Inc. © 2008 Prentice Hall 2006
Technological Competence Technology and Innovation Technological Competence Absorptive capacity Technological competence Prentice Hall, Inc. © 2008 Prentice Hall 2006
Categories of Innovation Prentice Hall, Inc. © 2008 Prentice Hall 2006
Product/Market Evolution Portfolio Matrix Prentice Hall, Inc. © 2008 Prentice Hall 2006
Stages of New Product Development Prentice Hall, Inc. © 2008 Prentice Hall 2006
Innovative Organizations – Technology & Innovation Innovative Organizations – Positive attitude toward change Decentralized decision making Informal structure Interconnectedness Organizational slack Large size System openness Prentice Hall, Inc. © 2008 Prentice Hall 2006
Designs for Corporate Entrepreneurship Prentice Hall, Inc. © 2008 Prentice Hall 2006
Techniques – Stage-gate process House of quality Evaluation and Control Techniques – Stage-gate process House of quality Index of R&D effectiveness Prentice Hall, Inc. © 2008 Prentice Hall 2006
House of Quality Prentice Hall, Inc. © 2008 Prentice Hall 2006