master’s thesis seminar technology strategy for a customer-owner dependent firm intending to...

Master’s thesis seminar

Technology strategy for a customer-owner dependent firm intending to expand to new markets

Author: Juhana FranckeSupervisor: Prof. Raimo Kantola

Instuctor: M.Sc. Antti Alarotu

Contents

• Objectives

• Target firm introduction

• Theoretical background and methodology

• Work phases

• Strategic technology areas and objectives

• Technology strategy process

• Conclusion

Objectives of the thesis

• How the strategic and operative management of technology could be organized in the target firm

• What technology strategic objectives should the target firm have

The target firm

• 115 employees, turnover ~17 M€ (2002)

• 95 % of turnover comes from one customer

• Largest customer had majority of shares (60%)

• The firm was sold to Novo Group plc. 5/2003

Theoretical background

Macroeconomic factors

End user’s

needs

Competition in industry

Legislation

Tec hn

ol ogy

new entrants

Product substitutes

Su

pp

liers

Cu

sto

me

rFirm

Core competence, dynamic capabilities

About technology strategy

• First definitions in mid 80’s

• Process approach

• Responsibilities technology portfolio, technological capabilities, development and positioning technology

Responsibilites of technology strategy

FinancialStrategy

•Numerical objectives•Key figures•Control and reporting•Ownership/Owners

Business strategy•Mission•Business definition

•Values•Vision

TechnologyStrategy

•Core competence•Technology mix•Enabling, •Critical,•Strategictechnologies

•Focus•Value network

-Universities-Companies-Research labs

MarketingStrategy

•Segmentation andtarget groups•Customer needs•Market size and potential•Marketing mix•Added value•Products and services’

Manufacturing-and LogisticsStrategy

•Management ofproduction and logistics•Make-or-Buy -decisions•Quality strategy•Value network•Environmentalsystems

Human ResourcesStrategy

•Resource mgmt-Evaluation-Hiring-Education

•Key competenceareas

FinancialStrategy

•Numerical objectives•Key figures•Control and reporting•Ownership/Owners

Business strategy•Mission•Business definition

•Values•Vision

TechnologyStrategy

•Core competence•Technology mix•Enabling, •Critical,•Strategictechnologies

•Focus•Value network

-Universities-Companies-Research labs

MarketingStrategy

•Segmentation andtarget groups•Customer needs•Market size and potential•Marketing mix•Added value•Products and services’

FinancialStrategy

•Numerical objectives•Key figures•Control and reporting•Ownership/Owners

FinancialStrategy

•Numerical objectives•Key figures•Control and reporting•Ownership/Owners

Business strategy•Mission•Business definition

•Values•Vision

TechnologyStrategy

•Core competence•Technology mix•Enabling, •Critical,•Strategictechnologies

•Focus•Value network

-Universities-Companies-Research labs

TechnologyStrategy

•Core competence•Technology mix•Enabling, •Critical,•Strategictechnologies

•Focus•Value network

-Universities-Companies-Research labs

MarketingStrategy

•Segmentation andtarget groups•Customer needs•Market size and potential•Marketing mix•Added value•Products and services’

MarketingStrategy

•Segmentation andtarget groups•Customer needs•Market size and potential•Marketing mix•Added value•Products and services’

Manufacturing-and LogisticsStrategy

•Management ofproduction and logistics•Make-or-Buy -decisions•Quality strategy•Value network•Environmentalsystems

Human ResourcesStrategy

•Resource mgmt-Evaluation-Hiring-Education

•Key competenceareas

Source: Sjöman (2001)

Work phases

• Technology audit: the firm’s technologies were identified and analyzed

• Gaps and their causes in firm’s technological capabilities were identified

• Technology classification• Trend identification, market analysis and

competitive environment• Definition of technology strategy process

and strategic objectives

Strategic technology areas

Spearhead technologies Key technologies Enabling technologies

Usability layer Software development

Programming tools, application servers etc.

Service

Application Systems Integration

Platform Systems management

Operating systems, devices etc.

Integration

Infrastructure

Technology-strategic objectives

• Deepen knowledge in Internet based software development supporting systems integration

• Concentrate on systems integration• Maintain systems management related

knowledge• Active follow up of mobile systems • Increase cohesion in all strategic technology

areas through training, employee turnover.

Technology strategy process

Resources, capabilities

Objectives

Customer’s needs

Trends

Technology portfolio

Strategic technology area 1.

Strategic technologyarea n.

Firm’s technologies

Technology recom-mendations

Roadmaps

Scenarios

External environment

Business strategy

Guide and shape

Are included in

Defines

Sets

Define

Conclusion

• The choice to expand to new markets will be extremely challenging

• By formalizing technology management the firm may be able to maintain its technological capabilities

• This thesis has provided the firm a starting point