Strategic Management of

Tech, Innovation: Session 2

S. Rajeev and J Ganguly

16 Jun 2012

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Agenda

• Case

• Readings

• Preview of another reading

Case

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Advent

• What are the key elements in Advent’s strategy? How successful has Advent been and why?

• What are Advent’s distinct tech competencies? Please construct a matrix showing the competencies embodied in different segments of the audio business. How is this different from the video business?

• What are the key issues and problems facing Advent? Please prepare a detailed action plan.

• Characterize Kloss’s style as a general manager. Does he need to change? How?

Readings

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Prahalad: Core competence

(Pg. 67-77)

• Core competence vs. SBU

• What is a core competence?

• Potential access to wide range

• Significant contribution to perceived customer

benefit

• Difficult for competitors to imitate

• From competences to products

• Velocity of circulation of core competences

Burgelman: Technology

Strategy

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Techno

logical

capabil

ities

Techno

logy

strateg

y

Experi

ence

A Capabilities-Based Organizational Learning Framework of

Technology Strategy

Design and Implementation of Technology

Strategy: An Evolutionary Perspective

2-11

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Strategi

c

action

Industry

context

Technolog

y

evolution

Organizational

context

Internal Environment

External Environment G

enerativ

e Mech

anism

s

Integ

rative

Mech

anism

s

Techn

ology

strateg

y

Determinants of

Technology

Strategy

Design and Implementation of Technology Strategy: An

Evolutionary Perspective

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

STRATEGIC ACTION:

• Induced Adjustment, Inertia

• Autonomous Renewal

• Strategic intent Transformational

Design and Implementation of Technology

Strategy: An Evolutionary Perspective

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

ORGANIZATIONAL CONTEXT:

• Concept of Strategy

• Internal Selection Environment

• Structural context

• Strategic context

• Dominant Culture

• Science vs. Engineering vs. Manufacturing

• Reflects distinctive competence

• Reflects Product Architecture

Design and Implementation of Technology

Strategy: An Evolutionary Perspective

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

INDUSTRY CONTEXT:

1. Industry Structure

2.Appropriability regime

3.Complementary Assets

4. Increasing Returns to adoption

5. Industry Standards

6.Social Systems Aspects of Industry Development

7.Non-Market Forces: Government

Design and Implementation of Technology

Strategy: An Evolutionary Perspective

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

II. The Substance of Technology Strategy

1. Competitive Strategy Stance:

• Technology Choice for Competitive Advantage

• Technology Leadership/Followership

• Technology Entry Timing

• Technology Licensing

2. Value Chain Stance:

• Scope of Technology Strategy

3. Resource Commitment Stance:

• Depth of Technology Strategy

4. Management Stance:

• Organizational Fit

Design and Implementation of Technology

Strategy: An Evolutionary Perspective

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Technology Strategy Framework

Robert A. Burgelman

HOW TO USE THE FRAMEWORK

1. Start by asking what, in general, is the stated technology strategy of the

company. To answer this question, each of the four substantive

dimensions of technology strategy must be considered.

a. Competitive stance. In general, does the company want to be a leader or a follower?

Does it want to be a first mover or move later?

b. Value chain stance (scope of technology strategy). In general, where in its complete

value chain does the company deploy technology for competitive advantage? How

many core technologies does the company have and what are they?

c. Resource stance (depth of technology strategy). In general, what is the magnitude of

the resource commitment in each core technology? What are technological options the

company has in each area?

d. Management stance (Organizational fit). In general, how well do the organizational

and management approaches of the company support the other 3 stances of technology

strategy? Are these approaches consistent?

2-17

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

Substance and Enactment in Technology Strategy

Enactment (Modes of Experience)

Substance

External

Technology

Sourcing

Internal

Technology

Sourcing

Product

Development

Process

Development

Technical

Support

Competitive Strategy

Stance

(Choice / leadership /

Entry timing / licensing)

Value chain stance

(Scope)

Resource commitment

stance

(Depth)

Management stance

(Organizational fit)

PREVIEW OF CHRISTENSEN PAPER

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation

The failure of leading firms

IIMB, Jun-Aug 11, PGSEM/PGP: Managing Innovation