Innovating and Changing Chapter Fourteen McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Forces Driving Technological Development 1. Must be a need, or demand, for the technology 2. Meeting the need must be theoretically possible, and the knowledge to do so must be available from basic science 3. Must be able to convert the scientific knowledge into practice in both engineering and economic terms 14-2

Forces Driving Technological Development 4. The funding, skilled labor, time, space, and other resources needed to develop the technology must be available 5. Entrepreneurial initiative is needed to identify and pull all the necessary elements together. 14-3

Key Factors to Consider in Technology Decisions 14-4 Anticipated market receptiveness Technology feasibility Economic viability Anticipated competency development Organizational suitability

Sourcing and Acquiring New Technologies 1. Is it important (and possible) in terms of competitive advantage that the technology remain proprietary? 2. Are the time, skills, and resources for internal development available? 3. Is the technology readily available outside the company? 14-5 Managers should ask the following basic questions:

Technology Acquisition Options 14-6 Figure 14.1

Organizing for Innovation  Development project  A focused organizational effort to create a new product or process via technological advances 14-7

Organizing for Innovation  Sociotechnical systems  An approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work 14-8

Achieving Greatness  Strategy  focused on customers, continually fine-tuned based on marketplace changes, and clearly communicated to employees.  Execution  good people, with decision-making authority on the front lines, doing quality work and cutting costs. 14-9

Motivating People to Change  General reasons for resistance  Inertia  Timing  Surprise  Peer pressure 14-10

Motivating People to Change  Change-specific reasons for resistance  Self-interest  Misunderstanding  Different assessments  Management tactics 14-11

Motivating People to Change Figure 14.2

Methods for Managing Resistance to Change 14-13

Harmonizing Multiple Changes  What is the evidence that the approach really can produce positive results?  Is the approach relevant to your company’s strategies and priorities?  Can you assess the costs and potential benefits?  Does it really help people add value through their work?  Does it help the company focus better on customers and the things they value? 14-14

Leading Change Figure 14.3