1. BPT 3113 – Management of Technology
T e c h n o l o g i c a l
BPT 3113 – Management of Technology

2. Chapter Outline Introduction Concept and Nature of Innovation
Types of Innovation
Sources of Innovation
Models of Innovation
Innovation Process
Influencing Factors

3. Lesson Outcomes
Explain the concept, components and characteristics of innovation
Describe the models and sources of innovation
Know the stages in the innovation process
Identify the factors that contribute to successful innovation

4. Introduction
Managing technology involves continuous effort in creating technology, developing novel products and services, and successfully marketing them
It requires:
Great creativity
Investment in R&D
Idea
R & D
Product
Labs
Marketplace

5. Concept and Nature of Innovation
Invention is an idea for a novel product or process
Innovation is the introduction of new products, processes or services into the market place
Technological innovation begins with invention – a sub-set of innovation
The process of technological innovation is a complex set of activities that transforms ideas and scientific knowledge into physical reality and real-world applications - converts knowledge into useful products and services that have socioeconomic impact.

6. Concept and Nature of Innovation
Characteristics of organizational innovation are as follows:
An innovation must be...
A tangible product, process or procedure within an organization
New to the social setting within which it is introduced
Intentional rather than accidental
A challenging change
Aimed at predicting benefit to the organization
Public in its effects

7. Components of Innovation
Physical, Material or Hardware
Computer
Machinery
Functional or Process Mechanism
Software
Process Reengineering
Knowledge Component
Manual
Operating instruction

8. Types of Innovation Competence Enhancing vs. Destroying Innovation
Architectural Innovation vs. Component Innovation
Technical vs. Social Innovation
Radical vs. Incremental
Product and Process Innovation

9. Types of Innovation Competence Enhancing vs. Competence Destroying
Competence enhancing innovation builds on existing knowledge and skills
Enhancing or destroying depends on whose perspective is being taken
Destroying
Enhancing

10. Types of Innovation Architectural Component
Innovation that changes the overall design of a system / the way its components interact with each other
Component
Innovation to one or more components that does not significantly affect the overall configuration of the system

11. Types of Innovation Technical vs. Social
Management, that is the ‘useful knowledge’ that enables man for the first time to render productive people of different skills and knowledge working together in an ‘organization’

12. Make small-step improvements to the original technology and design
Types of Innovation
Create an essentially different kind of product – require customers to radically change their past behavior
Make small-step improvements to the original technology and design

13. Types of Innovation Product Innovations Process Innovations
Improvements in existing products or creating entirely new products
Process Innovations
Involve changes in existing process or adopting a entirely new process

14. Socio-Cultural Environment Technological Environment
Sources of Innovation
Economic Environment
Socio-Cultural Environment
Changes in Demographics
Changes in Perception
Innovative Users
Technological Environment
New knowledge
Convergence
Publications
Outside industries

15. Models of Innovation
Fundamental components of the model are the same but the nature of the business may dictate variations in implementation techniques.

16. Models of Innovation
Martin (1994) illustrate the technological innovation process as a chain equation
Reveals the important role of entrepreneurship in connecting ideas to the marketplace
The management role in the innovation chain emphasizes:
The need for stability and control at a certain phase of the innovation process
A formalized managerial structure tends to produce incremental and process innovations more than radical innovations

17. Models of Innovation Science : How things are.
Mills (1996) provided very simplified but interesting definitions for several components of the process of technological innovation known as minimalist definitions.
Science : How things are.
Technology : How to do things.
Management : How to get things done.
Technology management : Doing things.
Entrepreneurship : Doing things to make money
Innovation : Doing entrepreneurship

18. 8 Stages of Technological Innovation
Innovation Process
8 Stages of Technological Innovation

19. 8 Stages of Technological Innovation
Basic Research
Increase our general understanding of the laws of nature
Generating knowledge over a long period of time
May or may not result in specific application
Applied Research
Directed toward solving one or more of society’s problems (specific problems)
Eg.: research conducted to develop a drug for treating a known disease
Technology Development
Human activity that converts knowledge and ideas into physical hardware, software or service - prototype
Technology Implementation
Set of activities associated with introducing a product into the marketplace – success commercial introduction

20. 8 Stages of Technological Innovation
Production / Manufacturing
Set of activities associated with the widespread conversion of design concepts or ideas into products and services – production control, logistic
Marketing
Set of activities that ensures that consumers embrace the technology – promotion, distribution strategy
Proliferation / Diffusion
Strategy that ensure the widespread use of the technology and its dominance in the marketplace
Depends on methods of exploiting the technology
Technology enhancement
Set of activities associated with maintaining a competitive edge for the technology - increases the life cycle of the technology

21. Critical Trajectories Impacting The Innovation Process
Border crossings (national and sectorial)
Increasing of science-technology articles with international co-authorship and also between academic and government
Emergence of complex technologies
Fit to and cause from diverse demands, perspectives, approaches and contexts
Age of knowledge and distributed intelligence, KDI
Network of knowledge – integration of knowledge from different sources and domains across space and time
Learning and intelligent systems - exploring the human behavior in collaboration with machines
Computing challenges - exploit the numeric barrier

22. Influencing Factors
The presence of scientific knowledge – technological change is dependent on scientific discoveries
The level of maturity of the underlying science – a wide base of knowledge enhances technological development
The type of technology and the phase of its life cycle – innovation rate is high for emerging and growing technology
The level of investment in technology – technological development is connected to the level of R&D funding
The level of political commitment – the pace of innovation is sensitive to high level policy decisions
The ability to borrow advances from related technologies – advances in communication technology are dependent on satellite components
The diffusion rate and patterns - a technology that is widely diffused in the market may delay other technologies from entry

23. Influencing Factors Recognition to Technology Time to Market
Multiple-site continuous R&D
Improvements in Communication
The Push for Education
Changes in Institutional Interactions
Changes in Organizational Structure

24. Summary Technological innovation is a sub-set of innovation
Technological innovations may arise from sources within or outside the organization
Innovation process has been viewed as a sequence of separable stages
Two basic variations of innovation models are technology push and market pull