TM -1 Technology Management & Competitive Advantage Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA

TM -2 Environmental Drivers Environmental Drivers Time compression Technology Integration Globalization

TM -3 Management Decision and Competitive Advantage Value Drivers Management Decision Speed Value to learn, adapt, innovate () Technology Innovation Competitive Advantage Revenue generation Cost reduction Cost avoidance Creating Value & Agent of Change

TM -4 Views on Technology and Technology Management Technology (forefront of the change) (productivity gains) Technology Management 1. accomplish goals of an organization 2. development of technological capability and its implementation or deployment in products and processes 3. link to other management activities, e.g., marketing or manufacturing Definition: Technology management focuses on the principles of strategy and organization involved in technology choices, guided by the purpose of creating value for investors. 1.Opportunity 2. Appropriability 3. Transferability 4. Resources

TM -5 Views on Technology and Technology Management (cont’d) Technology (forefront of the change) (productivity gains) Technology Management 1. Market-based 2. Resource-based 1. Value chain 2. Industries as competitive domain 3. Forms of technological change 4. Value creation Complementary Perspectives Key Concepts

TM -6 Views on Technology and Technology Management (cont’d) Technology (forefront of the change) (productivity gains) Technology Management Complementary Perspectives Key Concepts Value

TM -7 Table 1.1 Market-based and Resource-Based Views DimensionResource-BasedMarket-Based Drivers of strategy Customers and competitors Unique resources Derivatives Resources Market opportunities Strategy profile Positional Core competencies Appropriate context Mature markets Dynamic markets

TM -8 Figure. Evolution of Management of Technology s & Beyond R&D Management New venture divisions Linking to business Broader vision of technology Outsourcing Tools to assess value Internal markets Allocation of Funds to projects Scientists & engineers Leadership Innovation Management Different organizational arrangements Management of Innovation Technology Strategy Value-Based Management Era of Plentiful Resources Era of Accountability Chief Technology Officer/ Chief Information Officer/ Chief Value Officer R&D Manager

TM -9 Figure. Management of Technology WHY HOWWHAT Management of Technology Strategy Organization & Management Purpose: value-driven Technology Choices principle guided by Deployment in Products/Services focus Development of Technological Capability focus

TM -10 Figure: Levels of Knowledge/Development Intuitive/Tacit Codify, Verify Develop Physically Embodied Products, Services and Processes Science Formalized Knowledge

TM -11 FIVE COMPETITIVE FORCES MODEL THE FIRM TRADITIONAL COMPETITORS NEW MARKET ENTRANTS SUPPLIERS SUBSTITUTE PRODUCTS & SERVICES CUSTOMERS Threats Bargaining power N

TM -12 Value Chain Model and its Activities Inbound Logistics Operations Outbound Logistics Marketing and Sales Services Administrative and Other Indirect Value Added Administrative and Other Indirect Value Added Primary Activities Support Activities

TM -13 Manufacturing Industry Value Chain Product and Service Flow Research and Development Engineering Production and Manufacturing Marketing Sales and Distribution Service Primary Activities Dr. Chen, The Trends of the Information Systems Technology Administrative and Other Indirect Value Added Administrative and Other Indirect Value Added Support Activities N

TM -14 Manufacturing Industry Value Chain Product and Service Flow Research and Development Engineering Production and Manufacturing Marketing Sales and Distribution Service Primary Activities Dr. Chen, The Trends of the Information Systems Technology Administrative and Other Indirect Value Added Administrative and Other Indirect Value Added Support Activities N

TM -15 The Value Chain Competitive Advantage (Value) N

TM -16 Examples of the Value Chain N Dr. Chen, The Trends of the Information Systems Technology

TM -17 Views on Technology and Technology Management (cont’d) Technology (forefront of the change) (productivity gains) Technology Management Complementary Perspectives Key Concepts Value

IT Planning: The Relationship Between Business, IS, and IT Strategies

TM -19 Project Management and the Role of CTO/CIO Value Drivers Management Decision Speed Value to learn, adapt, innovate () Technology Innovation Competitive Advantage Revenue generation Cost reduction Cost avoidance Creating Value & Agent of Change