MGMT 544 Technology Management Portland State University Dr. Sharon Perot Week 1

Mgmt Week 1 2 Agenda Housekeeping –Student class list –Student introductions –Introduce Course Objectives Break Review Syllabus Grading criteria Assignments Team project Mini lecture

Mgmt Week 1 3 MGMT 544 Course Objectives : –Develop an awareness –Develop an awareness of the range, scope and complexity of issues related to the strategic management of science and technology –Develop a conceptual framework for assessing –Develop a conceptual framework for assessing the technological capabilities of a business organization –Develop insight –Develop insight concerning the skills managers need to be effective strategists in technology and innovation –Practice –Practice defining and solving strategic planning issues related to technology and innovation

Mgmt Week 1 4 Course Text and Format Texts: (SMTI) –“Strategic Management of Technology and Innovation”, 2nd edition, Burgleman, Maidique and Wheelwright (SMTI) Class Format: –Readings - facilitated discussion, written assignments –Case studies - in-class analysis, written assignments –Invited local industry speakers Team Project: Teams either: Perform an Innovative Capabilities Audit Create a Technology Strategic Plan “Roll Your Own” Project (requires instructor approval)

Mgmt Week 1 5 Assignments and Grading Written Assignments - 60 points total 3 Cases (Answer the Questions) - 8 pts each case 8 Article Reviews - 4 pts each article Web CT Forum Participation - 4 pts Team / Individual Project - 40 points total Class presentation - 10 pts Written paper - 30 pts

Mgmt Week 1 6 Written Assignments Cases Questions (CQ) –Answer the specific questions as indicated in syllabus –Must be typed, 1 to 2 (not more than 2!!!) pages in length per assignment –Use data or graphs as appropriate –Strive to integrate readings, cases and personal experiences –Develop unique perspectives, ideas or recommendations Article Review (AR) Prepare the following: (1) What you liked best, or gave you the greatest “ah-ha”. (2) What you disliked or disagreed with the most. (3) For the reading, generate two “essay type” or discussion questions that would reflect understanding of the author’s intent in writing the article (4) Must be typed, 1 to 2 (not more than 2!!!) pages in length

Mgmt Week 1 7 Team Project Teams and Topics: –No more than four per team (you choose your team) –Select a company or company division not discussed in our course cases (and one you can find adequate data on or access to mgmt) Written Paper Due June 7: Written Paper Due June 7: (30 pts) A minimum of 10 pages in length…NOT including graphs, tables See Syllabus for project choices: Innovative Capabilities Audit Technology Strategic Plan “Roll Your Own” Project Must be improved by instructor Must be relevant to our course Must be as rigorous an effort as the audit or strategic plan Class Presentations Delivered June 7 and June 14: Class Presentations Delivered June 7 and June 14: (10 pts) minute formal presentation with 10 minutes for questions Use powerpoints, prepare findings appropriate for an executive management audience.

Mgmt Week 1 8 Strategy and Technology Management Overview Key tasks of general manager include: –Develop and exploit firm’s capability for innovation –acquire, develop and allocate resources Technology defined as theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as production and delivery systems

Mgmt Week 1 9 Strategy and Technology Management 4 Main types of innovations –Incremental – adoption, refinement and enhancement of existing products or services –Radical – new product and service –Architectural – reconfiguration of system and components –Disruptive technology innovation – ultimately has potential to eliminate existing industry

Mgmt Week 1 10 Emergence of Information Age Information age is touted as having fostered the emergence of “smart markets” – markets defined by frequent turnover in general stock of knowledge or information embodied in products and possessed by competitors and consumers. Age of smart consumer.. In contrast “dumb markets” are static, fixed, and information-poor versus smart markets that are dynamic, turbulent, and information-rich.

Mgmt Week 1 11 Information Age Arrives Smart products include any offering that adapts or responds to changes in the environment as it interacts with consumers… Examples include Dell’s online custom ordering of PC or crafting personal financial portfolio from Charles Schwab Smart competitors – able to change and adapt quickly to environment. Convergence is a phenomenon where firms from historically different industries now find they are competing with one another. Some examples include telecommunications, entertainment and financial services. Smart customers – changing demographics, purchasing patterns included increased switching among competing firms How does a company sustain a competitive advantage in the face of these challenges?

Mgmt Week 1 12 Today’s Value Proposition Defined in terms of convenience, participation, and anticipation These three elements are the key marketing challenge in smart markets Leading-edge firms have responded to these challenges by creating information intensive customer-management strategies Mass customization is a common strategy used today and one that relies heavily on customer data that is dynamic and accessible.

Mgmt Week 1 13 Traditional Economics of Information Richness (bandwidth, Customization, Interactivity) Reach (connectivity) Traditional Trade-off

Mgmt Week 1 14 Conclusions Extended organizations go beyond the EDI (electronic data exchange of which Wal-Mart is famous) and involve firm’s use of customer information files as a key asset and often leverage this asset to manage a set of activities in another firm in its value chain. Smart Markets demand “sense and respond” instead of “command and control”. Sense and respond combines decision making with data- processing capabilities. Convergence of people and machines.

Mgmt Week 1 15 Conclusions (cont.) Two generic strategies of Efficiency (I.e. cost/volume or market share leadership) and effectiveness or differentiation or niche. Gary Hamel, renown strategist and professor with London Business School, states that in a world of discontinous change, strategy innovation is the key to wealth creation. Strategy innovation is the capacity to reconceive the existing industry model in ways that create new value for customers, wrong-foot competitors, and produce new wealth for all stakeholders.

Mgmt Week 1 16 Office Hours and Availability Office Hours: –At the end of each class –By arrangement for other times Phone: home