2. Centre for Strategic Manufacturing Alina Shamsuddin TECHNOLOGICAL CAPABILITY AND PERFORMANCE MEASUREMENT Alina Shamsuddin DMEM 1 st. Year PhD Supervisor: Prof. Umit Bititci

3. Centre for Strategic Manufacturing Alina Shamsuddin The Performance Management Process is the process by which the company manages its performance in line with its corporate and functional strategies and objectives Management of technology links engineering, science and management discipline to plan, develop and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organization Technological capability is the resources needed to generate and manage improvements and innovations in products, process and production

4. Centre for Strategic Manufacturing Alina Shamsuddin Management Of Technology Performance Measurement

5. Centre for Strategic Manufacturing Alina Shamsuddin Why is performance measurement important for business? Basis for designing the information system Vehicle for cultural change Basis for defining, strategy, objectives as well as lagging and leading indicators Basis for Continuous Improvement Process

6. Centre for Strategic Manufacturing Alina Shamsuddin Performance Measurement Frameworks Integrated Performance Measurement System Reference Model (Bititci et. al, 1998) Balanced Scorecard (Kaplan and Norton 1992) Performance Prism (Neely et. al.,2001) Etc.

7. Centre for Strategic Manufacturing Alina Shamsuddin Balanced Scorecard Kaplan & Norton 1992 Financial measures Learning & growth measures Internal process measures Customer measures Strategy

8. Centre for Strategic Manufacturing Alina Shamsuddin Internal PM External PM Integrated Performance Measurement Systems Reference Model Understand stakeholder requirements Understand competitive position Strategy Deploy internal performance measures Business measures Business Unit Measures Core process measures Support process measures Bititci et. al.,1996

9. Centre for Strategic Manufacturing Alina Shamsuddin Strategy S/holder needs S/holder contribution Processes Capabilities Performance Prism Neely et. al., 2001

10. Centre for Strategic Manufacturing Alina Shamsuddin Systems People Processes

11. Centre for Strategic Manufacturing Alina Shamsuddin Technological Capability Level Technology Component Sophistication Technology Strategy Options Source: Sharif, 1994

12. Centre for Strategic Manufacturing Alina Shamsuddin Is technological capability relate to learning organization? How can technological capability be integrated in the performance measurement systems? Can business strategy and technology strategy be integrated? What are the measures for technological capabilities? Is it possible to forecast the needs of technological capabilities needed in a firm?

13. Centre for Strategic Manufacturing Alina Shamsuddin Thank you