1. Integrating Technology and Strategy A General Management Perspective

2. Outline
Introduction
Key concepts concerning technological innovation and their interrelations
The integration of technology with business and corporate strategy
A framework for auditing and assessing the firm’s innovation capabilities
Conclusion

3. Introduction To deal with issues of technology and innovation
Key task of the general manager
Acquire, develop, and allocate an organization’s resources
Develop and exploit the firm’s capacity for innovation

4. Outline
Introduction
Key concepts concerning technological innovation and their interrelations
The integration of technology with business and corporate strategy
A framework for auditing and assessing the firm’s innovation capabilities
Conclusion

5. Definitions Discovery and invention Technology Technical innovation
We discover what before existed, though to us unknown; we invent what did not before exist. (Is it true/real?)
Technology
The theoretical and practical knowledge, skills, and artifacts that can be used to develop products and services as well as their production and delivery system. (Can it do the job?)
Technical innovation
Using technology to develop commercial products and services. (Can it do the job profitably?)

6. Technological Entrepreneurship
Entrepreneurship is a fundamental driver of the technological innovation process.
Technological entrepreneurship refers to activities that create new resource combinations to make innovation possible, bringing together the technical and commercial worlds in a profitable way.
Technological entrepreneurship can involve one individual (individual entrepreneurship) or the combined activities of multiple participants in an organization (corporate entrepreneurship)

7. The Relationships among Key Concepts Concerning Technological Innovation
Technical world
Technological entrepreneurship
Commercial world
Administrative capabilities
Invention/discoveries/technologies
Technological innovation
Research
activities
Development
Product/process
development
Market
Tinkering/
experimenting ＋ ＝
Results
Activities

8. Outline
Introduction
Key concepts concerning technological innovation and their interrelations
The integration of technology with business and corporate strategy
A framework for auditing and assessing the firm’s innovation capabilities
Conclusion

9. Integrating Technology and Strategy
Perspectives on strategy
Positive view --Actuarial strategy reflects management beliefs
Normative view -- what the firm’s strategy should do
Product-market view-- how the firm competes with its product
Resource-based view -- how the firm secure the factors needs

10. Generic Strategy Overall cost leadership Overall differentiation
Focus-segment cost leadership
Focus-segment
differentiation
focus
The areas of
competition
The way of creating the value

11. Technological policies
Generic Strategy
Overall cost leadership
Overall differentiation
Focus-segment
cost leadership
Focus-segment differentiation
Technological policies
Product technological change
Product development to reduce product cost
Product development to enhance quality
Product development to support only enough performance
Product design to meet exactly the needs of particular segment
Process technological change
Process development to enhance economies of scale
Process development to support high tolerances
Process development to tune production to segment needs
Process development to tune production to segment need
IBM
Benetton

12. The Product / Technology Matrix
Product A
Product B
‧‧‧
Product N
Technology 1
(*)
Technology 2
Technology 3
‧ ‧ ‧
Technology K

13. Developing the Technology Portfolio
Bet
Draw
Warrant the firm’s full commitment
Be positioned ambiguously
Technology
importance
Cash in
Fold
Should be examined carefully
Reconsider its investments
Relative technology position

14. Matching Business & Technology Portfolios
Attractiveness
Importance B A A B
Competitive position
Position

15. Representative Technologies in a Firm’s Value Chain
Transportation
technology
Material
handling
Basic product
Machine tool
Packaging
Media
Audio & video
recording
Diagnostic and
testing
Information
system
Inbound logistics
Operations
Outbound logistics
Marketing sales
Service

16. Technology Life Cycle & Competitive Advantages
Importance of Technologies for Competitive Advantages
Emerging
Technologies
Have not yet demonstrated potential for changing the basis of competition.
Packing
Technologies
Have demonstrated potential for changing the basis of competition.
Key
Technologies
Are embedded in and enable product/process.
Have major impact on value-added stream.
Allow proprietary/patented positions.
Base
Technologies
Have minor impact on value-added stream; common to all competitors; commodity.

17. Outline
Introduction
Key concepts concerning technological innovation and their interrelations
The integration of technology with business and corporate strategy
A framework for auditing and assessing the firm’s innovation capabilities
Conclusion

18. Innovative Capabilities Audit Framework
The comprehensive set of characteristics of an organization that facilitate and support innovation strategies.
Business Unit
Corporate

19. Business unit structural Business unit strategic
Business Unit Level
Resource
availability
Understanding
competitors’
innovative
strategies and
industry
evolution
Understanding
business unit
technological
environment
Business unit
innovative
strategies
Business unit structural
and cultural context
Business unit strategic
management capacity 8

20. Corporate Level Resource availability and allocation Understanding
competitors’
innovative
strategies and
multi-industry
evolution
Understanding
corporate
technological
environment
Corporate
innovative
strategies
Corporate structural
and cultural context
Corporate strategic
management capacity

21. Outline
Introduction
Key concepts concerning technological innovation and their interrelations
The integration of technology with business and corporate strategy
A framework for auditing and assessing the firm’s innovation capabilities
Conclusion

22. Conclusions
Leadership