Critical Factors in Managing Technology

Contents Creativity factor The Link between Science and Technology Creativity and Innovation Bringing Innovation to Market Technology-Price Relationship Leaders vs. Followers Summary

Creativity Factor Technology is an expression of human creativity Creating technology Marketing Technology Developing novel products & services Invention Innovation Managing technology involves continuous effort in creating technology ……….. technology creation and exploitation require a chain of events starting with inventions and ending at the market place There usually a time lag between discoveries and inventions. It may take years to convert science into technology. It may take more years to move invention to the market place as a product or service. Many are patented, but only few are commercialise. ocess It can be a concept, product, process i.e. computer. Occur as a result of human ingenuity and imagination Involves the creation of a product, Service or process that is new to an organization. Does not have to be new to the world. Improved product, process or system.

Invention vs innovation Concept or the creation of novel technology Process bringing an invention to users/marketplace/industrial application Formulation of new ideas for product/process The technology must be novel or groundbreaking New to the world Does not have to be new to the world Result from human ingenuity & imagination Integrate existing technology & invention to create new /improved products Happening by chance through trial & error to satisfy need Research & Development Examples : telephone Example: cell phone, smart phone

Speed of Introducing Technological Development into Social Use Specific technology invention innovation Speed of changes Aspirin 1853 1899 46 Telephone 1860 1880 26 Photography 1871 1888 17 Ballpoint Pen 1938 50 Aero plane 1903 1920 Helicopter 1907 31 B&W Television 1936 29 Color Television 1925 1953 28 Electronic Computer 1945 1951 6

Inventions

Invention vs innovation

The Link Between Science and Technology Science deals with the understanding the laws of nature which lead to discoveries of fundamental knowledge about the world, the universe and all living things. When scientific knowledge is applied to the things we do in life that knowledge enters the realm of technology.

The Link Between Science and Technology 1960s- science and technology grew up independent of each other 1980s-separate and parallel development paths followed by science and technology have now intersected 1990s-most technologies owe their origin to scientific discoveries.

Science and Technology

Component of an innovative cycle May never be developed into marketable products Invention Scientific discovery Innovation Has no instantaneous commercial value Adopting invention Market Buying or ignoring the innovation

Innovation interactive model Latest sciences and technology Latest sciences and technology advances in society Idea dea R&D &D MaManufacturing Marketing Commercial Product Needs in society and the marketplace TECHNOLOGY PUSH response MARKET PULL

Examples Scientific discoveries : a) examines how the power in solar react. Invention : b) Solar power system Objective is to gain a fuller knowledge/understanding of the subject under study, rather than to develop practical applications. It is fundamentally risky, but it has the potential to provide great rewards. Basic research is conducted to advance science which take over a long period time. Normally perceived to be a drain on organization’s resources and may not lead to an immediate commercial return on investment. Can either be: PURE : performed at the will of the scientist. ORIENTED : steered by another entity toward a field of particular interest. Innovation? c)

Examples of Applied Research Scientific discoveries: a) Investigation of particle physics; examines how particles in an atom interact. b) invention: Particle detectors: Medical imaging C) Innovation ? Conducted to develop ideas into operational form. The utilization of new knowledge can lead to the creation of new products. The new product development can changes the firm potential position in the industry. Directed towards gaining the knowledge or understanding necessary to meet a recognized and specific need. Less risks because the fundamental already strong and the research has to add value to the firm and customers in the marketplace. Therefore, the probability of success and high reward are moderate. JTH 3033 Chapter 3

Types of Innovation Radical/revolutionary Usually based on invention. They change or create new industries Incremental or evolutionary, innovations Small but important improvements in a product, process or service Relatively common & created within the firms of an industry Routine innovation Introduction of something that is new to an organization but very similar to what it had in the past Can you think of an example for each type?

Creativity and Innovation Creativity environment Permits people to work in areas of their greatest interest Encourages employees to have broad contact with stimulating colleagues Allows taking moderate risks Tolerates some failures and nonconformity Provides appropriate rewards and recognition

Technology-Price Relationship If knowledge gap between the company (owner of the technology) and the customer is high, the owner can command a high price for it Own Knowledge Technological Knowledge Gap Customer Knowledge Time or Diffusion

Technological innovation process modeling There are many models that have been developed to help describe the complexity of the process. There is no universal model to describe the process. There are 4 general types of models: Stage models Conversion models Integrative models Decision models JTH 3033 Chapter 2

Stage models Innovation is viewed as a series of discrete stages. The unit of analysis within each stage is generally activity or functional responsibility. Innovation is treated principally as a sequential linear activity, where innovation is said to happen in stages. The unit of analysis is generally activity or responsibility. This model poorly represented the complexity of innovation process, according to Kelly & Krantzberg (1978). JTH 3033 Chapter 2

Conversion models (technology push/market pull models) Inputs being converted into product or processes through a number of steps. Addresses the needs of the marketplace and the opportunities presented by new technologies. Innovation is viewed as a conversion process, with inputs being converted into products or processes through a number of steps. Rothwell (1985) has develop an interactive model that addresses the needs of the marketplace and the opportunities presented by new technologies. This model provides more realistic representation of the innovation process. JTH 3033 Chapter 2

Integrative models These models attempt to integrate process and product innovation in respect to technology life cycle. The dynamic nature of the innovation process was stressed & the process was represented as changing over time as the industry evolved and matured. Integrate the process and product of innovation in relation to technology life cycle (birth, prosperity, maturity etc.). The dynamic nature of the innovation process was stresses and the process was represented as changing over time as the industry evolved and matured. Later on, the initial focus of new product development changed to focus on process optimisation and cost reduction. Although this model was extremely useful, the model failed to adequately represent the innovation process when tested over a range of industries. (Utterback & Abernathy, 1981) JTH 3033 Chapter 2

Decision models Approach the innovation process in terms of these decision points. Offers management a practical approach to the process. Points to the evolutionary nature of decision-making process. During the process of innovation, many decisions need to be made. Therefore, many models approach the innovation process in terms of these decision points which offers management a practical approach to the process. Some models show that decisions take place between the various activities involved in the process of innovation such as model by Cooper & More (1979). However, there are also authors commenting on the lack of generalisability of these models and points that usage is limited within particular industry segments. JTH 3033 Chapter 2

Leaders Vs. Followers Types of firms A leader A Follower A Laggard The first to market an innovation A Follower Follow closely behind the leader A Laggard Realizes a potential for profit but seldom influences technology’s use

Advantages of being a leader Name of recognition Better market position A chance to define market the industry standard A head start on the learning curve Protective barriers High profit Delayed customer switching Favorable response by outsiders

Disadvantages of being a leader Large cost Being a target for competition Difficult to predict demand Difficult to sustain the lead

Summary Find out any technology : - discuss the process of invention-innovation-market place of the technology?