1. Critical Factors in Managing Technology

2. Contents Creativity factor The Link between Science and Technology
Creativity and Innovation
Bringing Innovation to Market
Technology-Price Relationship
Leaders vs. Followers
Summary

3. Creativity Factor Technology is an expression of human creativity
Creating technology
Marketing
Technology
Developing novel products & services
Invention
Innovation
Managing technology involves continuous effort in creating technology ………..
technology creation and exploitation require a chain of events starting with inventions and ending at the market place
There usually a time lag between discoveries and inventions. It may take years to convert science into technology. It may take more years to move invention to the market place as a product or service. Many are patented, but only few are commercialise.
ocess
It can be a concept, product, process
i.e. computer.
Occur as a result of human ingenuity
and imagination
Involves the creation of a product,
Service or process that is new to an
organization.
Does not have to be new to the world.
Improved product, process or system.

4. Invention vs innovation
Concept or the creation of novel technology
Process bringing an invention to users/marketplace/industrial application
Formulation of new ideas for product/process
The technology must be novel or groundbreaking
New to the world
Does not have to be new to the world
Result from human ingenuity & imagination
Integrate existing technology & invention to create new /improved products
Happening by chance through trial & error to satisfy need
Research & Development
Examples : telephone
Example: cell phone, smart phone

5. Speed of Introducing Technological Development into Social Use
Specific technology
invention
innovation
Speed of changes
Aspirin
1853
1899 46
Telephone
1860
1880 26
Photography
1871
1888 17
Ballpoint Pen
1938 50
Aero plane
1903
1920
Helicopter
1907 31
B&W Television
1936 29
Color Television
1925
1953 28
Electronic Computer
1945
1951 6

6. Inventions

7. Invention vs innovation

8. The Link Between Science and Technology
Science deals with the understanding the laws of nature which lead to discoveries of fundamental knowledge about the world, the universe and all living things.
When scientific knowledge is applied to the things we do in life that knowledge enters the realm of technology.

9. The Link Between Science and Technology
1960s- science and technology grew up independent of each other
1980s-separate and parallel development paths followed by science and technology have now intersected
1990s-most technologies owe their origin to scientific discoveries.

10. Science and Technology

11. Component of an innovative cycle
May never be developed into marketable products
Invention
Scientific
discovery
Innovation
Has no instantaneous commercial value
Adopting invention
Market
Buying or ignoring the innovation

12. Innovation interactive model
Latest sciences and technology Latest sciences and technology advances in society
Idea
dea
R&D &D MaManufacturing Marketing
Commercial Product
Needs in society and the marketplace
TECHNOLOGY PUSH
response
MARKET PULL

13. Examples
Scientific discoveries : a) examines how the power in solar react. Invention :
b) Solar power system
Objective is to gain a fuller knowledge/understanding of the subject under study, rather than to develop practical applications.
It is fundamentally risky, but it has the potential to provide great rewards.
Basic research is conducted to advance science which take over a long period time.
Normally perceived to be a drain on organization’s resources and may not lead to an immediate commercial return on investment.
Can either be:
PURE : performed at the will of the scientist.
ORIENTED : steered by another entity toward a field of particular interest.
Innovation? c)

14. Examples of Applied Research
Scientific discoveries:
a) Investigation of particle physics; examines how particles in an atom interact.
b) invention:
Particle detectors: Medical imaging
C) Innovation ?
Conducted to develop ideas into operational form.
The utilization of new knowledge can lead to the creation of new products. The new product development can changes the firm potential position in the industry.
Directed towards gaining the knowledge or understanding necessary to meet a recognized and specific need.
Less risks because the fundamental already strong and the research has to add value to the firm and customers in the marketplace. Therefore, the probability of success and high reward are moderate.
JTH 3033 Chapter 3

15. Types of Innovation Radical/revolutionary Usually based on invention.
They change or create new industries
Incremental or evolutionary, innovations
Small but important improvements in a product, process or service
Relatively common & created within the firms of an industry
Routine innovation
Introduction of something that is new to an organization but very similar to what it had in the past
Can you think of an example for each type?

16. Creativity and Innovation
Creativity environment
Permits people to work in areas
of their greatest interest
Encourages employees to have broad
contact with stimulating colleagues
Allows taking moderate risks
Tolerates some failures and nonconformity
Provides appropriate rewards and recognition

17. Technology-Price Relationship
If knowledge gap between the company (owner of the technology) and the customer is high, the owner can command a high price for it
Own Knowledge
Technological Knowledge
Gap
Customer Knowledge
Time or Diffusion

18. Technological innovation process modeling
There are many models that have been developed to help describe the complexity of the process.
There is no universal model to describe the process. There are 4 general types of models:
Stage models
Conversion models
Integrative models
Decision models
JTH 3033 Chapter 2

19. Stage models Innovation is viewed as a series of discrete stages.
The unit of analysis within each stage is generally activity or functional responsibility.
Innovation is treated principally as a sequential linear activity, where innovation is said to happen in stages. The unit of analysis is generally activity or responsibility.
This model poorly represented the complexity of innovation process, according to Kelly & Krantzberg (1978).
JTH 3033 Chapter 2

20. Conversion models (technology push/market pull models)
Inputs being converted into product or processes through a number of steps.
Addresses the needs of the marketplace and the opportunities presented by new technologies.
Innovation is viewed as a conversion process, with inputs being converted into products or processes through a number of steps. Rothwell (1985) has develop an interactive model that addresses the needs of the marketplace and the opportunities presented by new technologies.
This model provides more realistic representation of the innovation process.
JTH 3033 Chapter 2

21. Integrative models
These models attempt to integrate process and product innovation in respect to technology life cycle.
The dynamic nature of the innovation process was stressed & the process was represented as changing over time as the industry evolved and matured.
Integrate the process and product of innovation in relation to technology life cycle (birth, prosperity, maturity etc.). The dynamic nature of the innovation process was stresses and the process was represented as changing over time as the industry evolved and matured. Later on, the initial focus of new product development changed to focus on process optimisation and cost reduction.
Although this model was extremely useful, the model failed to adequately represent the innovation process when tested over a range of industries. (Utterback & Abernathy, 1981)
JTH 3033 Chapter 2

22. Decision models
Approach the innovation process in terms of these decision points.
Offers management a practical approach to the process.
Points to the evolutionary nature of decision-making process.
During the process of innovation, many decisions need to be made. Therefore, many models approach the innovation process in terms of these decision points which offers management a practical approach to the process. Some models show that decisions take place between the various activities involved in the process of innovation such as model by Cooper & More (1979).
However, there are also authors commenting on the lack of generalisability of these models and points that usage is limited within particular industry segments.
JTH 3033 Chapter 2

23. Leaders Vs. Followers Types of firms A leader A Follower A Laggard
The first to market an innovation
A Follower
Follow closely behind the leader
A Laggard
Realizes a potential for profit but seldom influences technology’s use

24. Advantages of being a leader
Name of recognition
Better market position
A chance to define market the industry standard
A head start on the learning curve
Protective barriers
High profit
Delayed customer switching
Favorable response by outsiders

25. Disadvantages of being a leader
Large cost
Being a target for competition
Difficult to predict demand
Difficult to sustain the lead

26. Summary Find out any technology :
- discuss the process of invention-innovation-market place of the technology?