Topic 2: Overview of Technology Management

Chapter 1Harrison & Samson (2002)

Technology Management Field

Topics that will be emphasized in this class include

• Technology Strategy• Development of Technological capability• Innovation management• Technology management and business

competitiveness interface• Technology adoption• E-business and Virtual Corporation

Definitions • Technology (for the purpose of this

class) refers to information technology (IT), which includes computer hardware/software, telecommunications, networks, and database.

• Management function include planning, organizing, coordinating, and controlling

Fact• Effective use of IT provides a

competitive edge. • IT is a means, not an end.• People are the most important

resources. • Most projects fail due to poor

management.

Innovation• Innovation refers to new products,

new processes, new managerial approaches, and combinations of the above.

• An important aspect of innovation is “Adoption and implementation of IT.”

Variables related to Innovation (Burgelman & Maidique 1988)

• Resource availability and allocation• Ability to understand competitors’

innovative strategies• The business's technological

environment• Structure and cultural context• Strategic management capacity in

dealing with entrepreneurial behavior

Success Factors of TM (Maidique & Hayes in Burgelman & Maidique 1988)

• Business focus• Adaptability• Organizational cohesion• Entrepreneurial culture• A sense of integrity• Hands-on top management

Framework for Reviewing Technological Innovation: 8

Stages• Discovery of a new idea or product• Emergence of the proposed idea or design

concept• Verification of the theory or design• Demonstration of a prototype• Trail and evaluation• Commercial introduction or initial operation

of the innovation• Innovation adoption• Innovation proliferation

IT and Market• Balancing between technology

push and market pull• Proactive approach for technical

development• Feasibility of an innovation:

technologically and commercially • Congruent of an innovation with

corporate objectives and goals

IT and Market• Technology push is when products are re-designed

because of changes in materials or manufacturing methods. This might mean that new materials have become available, with improved properties; or that improvements in manufacturing processes mean a manufacturer can make the product cheaper or more efficiently, which reduces manufacturing costs.

• Market pull is when product ideas are produced in response to market forces. Examples of market influences include:– A demand from consumers for new or improved products.– A competing product is launched by another manufacturer.– A manufacturer wants to increase their share of the market.

Manager Perspective on Managing Technology

• Advanced technology can create an abrupt change in businesses.

• New technology requires (Beatty 1992)

– A skilled champion– A plan for systems integration– Organizational integration

Barriers to Success• Failure of a champion• Lack of systems integration• Incompatible systems• Lack of a cross-functional team

Lessons Learned• Imbalance between technology

generation and technology diffusion in the US (Alic 1993)

• Requirements of international facility location and technology transfer (Woodward & Liu 1993).

• Technology will be useful only when it is used.

• More emphasis needs to be placed on adoption, adaptation, and exploitation of technology

Lessons Learned (Con’t)• Protecting existing technology rather

than promptly embracing new technology becomes a “dead end” strategy (Ali & Zahra 1994). E.g., IBM vs. HP.

• Customer involvement leads to success.• Managers today must understand

– Impact of IT on the strategic and organizational changes

– New role of IT in integrating different business functions in systems design

Technology Transfer (Hunter 2001, http://www.nwci.org.uk/resources/licensing.ppt)

• Similar to tangible assets, technology can be bought, sold, or lease

• Intellectual property rights can also be bought and sold, or licensed for a limited time, to another party

Technology Licensing• Inward and outward licensing deals

with the issue of intellectual property, which is beyond the scope of this study

• Example: Infocus http://www.i-infocus.co.uk/main.php

Flexibility and Technology• Flexible systems and computer

integrated manufacturing (CIM) are used in manufacturing.

• It is not clear whether or not there is a direct link between flexibility and increased performance.

• Other factors such as organizational structure, culture, and management processes can influence the outcome.

Technology Forecasting (TF)

Evolution of R&D Management• 1950-1975: TF is tactical, isolated, and

not a pervasive part of strategic planning.• 1975-1990: TF is a data-gathering and

environmental scanning exercise, still an isolated subtask of strategic planning.

• 1990-present: TF is an integral part of strategic planning and business intelligence.

Technology & People• It is true that people’s abilities haven’t changed

much while technology (esp. IT) has changed dramatically Harrison & Samson (2002). However, people’s behavior has changed significantly, which the authors fail to emphasize. Thus, the way we manage people must be changed as well.

• Although Harrison & Samson (2002) argue “technological resources are becoming more important than human resources in determining competitive outcomes” (p. 15), I disagree as we’ve seen so many IS project failures due to lack of skilled people and poor management. Research in the past few years has begun to call for more studies done on the human factor because it has been ignored for too long.

Summary• Technology management is critical for not

only creating but also sustaining a competitive advantage of an organization.

• Technology consideration must be an integral part of a firm’s business strategy.

• Change in technology without change in the way it is used can lead to failure.

• Technology and human resources must be working in an integral manner to ensure success.

• Leaders must have a strong knowledge and capability in managing both technology and people.