TECHNOLOGICAL CHANGE AND INNOVATION

EVOLUTIONARY PROCESS FRAMEWORK FOR TECHNOLOGY STRATEGY (Burgelman & Rosenbloom, 1989 and adapted by Hampson, 2000) TECHNOLOGY STRATEGY EXPERIENCE TECHNICAL CAPABILITIES INTERNAL ENVIRONMENT GENERATIVE MECHANISMS INTEGRATIVE MECHANISMS EXTERNAL ENVIRONMENT BUSINESS EVOLUTION ORGANISATIONAL CONTEXT INDUSTRY Monitor, review and standardise

TECHNOLOGY, INVENTION & INNOVATION Innovation is the first application of the invention (a technology) in production (Link) 3 phases in the process of technological change: invention, innovation, and diffusion (Schumpeter) Inventive activity a new combination of available knowledge (Kuznets) Science focusses on: the understanding of knowledge Technology focusses on: the application of knowledge

Types of INNOVATION Product Process Service Marketing

INNOVATION “Innovation is described as the process of bringing any new problem-solving idea into use. Innovation is the generation, acceptance and implementation of new ideas, processes, products or services.” - Kanter, 1983, p20 Idea - Continuous Aim Firing “What one man could do partially and unconsciously, perhaps all men could be trained to do consciously and completely.”

TECHNOLOGICAL INNOVATION IS A COMPLEX ACTIVITY Technological innovation is a process made up of diverse parts, varied participants, complicated patterns of evolution and information feedback loops. Research highlights the key role of people, as champions, inventor/entrepreneurs, or technology-familiar managers, in promoting and accelerating the implementation of innovation.

THE PRODUCT OR TECHNICAL CHAMPION Innovation consists of two parts: new technology and a real or potential market. The product champion: convinces management that new product or process is feasible and worthy of significant investment. conceptualises a technical vehicle so the corporation can develop a new product or service. Sees relationship between scientific developments and market needs.

THE ORGANISATIONAL OR POLITICAL CHAMPION Establishing and maintaining contact with top management, keeping them informed, and developing their enthusiasm for particular new activity Organisational champion is able to relate parameters and potential of new venture persuasively to ultimate goals of the corporations

TECHNOLOGICAL ADVANCE Driven by the combination of chance or random events (variation), the direct social, political action of individuals and organisations in selecting between rival industry standards (selection), and the incremental, competence-enhancing, puzzle-solving actions of many organisations that are learned by doing (retention). (Anderson and Tushman, 1990, p606)

THE TECHNOLOGY CYCLE Era of Ferment Design competition Substitution Era of Incremental Change Elaboration of dominant design TIME Technological Discontinuity 1 Discontinuity 2 Dominant Design 1 (Source: Anderson and Tushman, 1990, p606)

COMMON MISCONCEPTIONS ABOUT TECHNOLOGY 1/2

MISCONCEPTIONS (cont) 2/2

TECHNOLOGY MATURATION SEQUENCE (Arthur D. Little, 1981) Ageing Mature TECHNICAL ADVANCE Growing Embryonic TIME

TECHNOLOGY MATURATION (Steele, 1989) Natural Limit of Technology Era of Capital Intensity and Finance Domination TECHNICAL ADVANCE Era of Process Improvement and Manufacturing Domination Era of Product Innovation and Engineering Design Domination TIME

INDUSTRY MATURATION (Utterback, 1987) Process Innovation NUMBER AND IMPACT OF IMPROVEMENTS Product Innovation TIME