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