chapter001 Introduction.ppt

1、,Chapter 1,Introduction,Chapter,1,Why is innovation important in the modern economy? Why is strategic management of technology and innovation important for a firm? What is the framework of strategic management of technological innovation?,Outline,Importance of technological innovation Impact on soci

2、ety Innovation by Industry: the importance of strategy,We See the Reality,Technological innovation happens in every industry: from new industries such as genetic engineering, electronics and telecommunications, through automotive and aerospace, to old industries such as shipbuilding and mining.,Why

3、innovate?,Change is constant. Constant change requires constant innovation. The environment is changing: Advancing technology Changing industrial structures and strategies Competitors improve their products, processes and services Evolving society and customer desires Innovate to survive and develop

4、 in competition.,Importance of Technological Innovation,Technological innovation is now the single most important driver of competitive success in many industries Many firms earn more over new products Globalization has increased competitive pressure Advances in information technology have enabled f

5、aster innovation Net effect: Shorter product lifecycles (more rapid product obsolescence) More rapid new product introductions Greater market segmentation,Research Brief,How long does new product development take? Study by Abbie Griffin of 116 firms found: Length of development cycle varies with inn

6、ovativeness of project Incremental improvements took 8.6 months from concept to market introduction Next generation improvements took 22 months. New-to-the-firm product lines took 36 months New-to-the-world products took 53 months. Half of the companies had reduced their cycle time by an average of

7、33% over last five years.,Outline,Importance of technological innovation Impact on society Innovation by Industry: the importance of strategy,Impact on Society: Positive and Negative,A wider range of range of goods and services for people. Making labor and capital more effective and efficient. Negat

8、ive externalities: Pollution Waste Unexpected risk Knowledge and technology should be used to solve our problems and pursue welfare of human beings.,GDP per capita,Technology Management Reshaping the World,Technology is the dominant force in the world of the 21st century Rapid technological changes

9、are leading to rapid societal changes If we manage technology we can harness its energy for the betterment of humankind If we cannot manage technology we will be slaves to it.,“. The genius of the future lies not in technology alone, but in the ability to manage it.” BELL ATLANTIC,Outline,Importance

10、 of technological innovation Impact on society Innovation by Industry: the importance of strategy,Innovation by Industry,The majority of R&D activities are performed by the industry.,Innovation Funnel,To be successful at innovation, firms need carefully crafted strategies and implementation processe

11、s. Innovation funnel Most innovative ideas do not become successful new products.,Impact on Industry,Innovation creates new industries. Innovation destroys old industries. Innovation gives old industries new opportunities. Innovation reshapes the structure of industries.,Barriers to Innovation,Insuf

12、ficient resources Organization not conducive to innovation Environment not conducive to innovation Traditional management behavior Group behavior Individual behavior It is not so easy to connect technology to market!,Strategic Management of Technological Innovation,A firms innovation projects should

13、 align with its resources and objectives, leverage its core competencies and should help the firm achieve its strategic intent. A firms organizational structure and control systems should encourage the generation and efficient implementation of innovative ideas A firms new product development proces

14、ses should maximize the technical and commercial success of each project.,Strategic Management of Technological Innovation,To achieve the goals, a firm needs An in-depth understanding of the dynamics of innovation, A well-crafted innovation strategy, Well-designed processes for implementing the inno

15、vation strategy.,Myths and Realities - 1,Myth 1: Technology is an off-the-shelf recipe that can easily be acquired from external sources. Reality: Recipes are the strengths of industrys leaders. It is suicidal to try to compete with the established leaders by using their own weapons developed in the

16、 past. Develop your own technology and core competency!,Myths and Realities - 2,Myth 2: Technology is a hardware/software combination that can be brought in to solve all the problems. Reality: Technology is the application of scientific knowledge to the solution of problems. It requires technical kn

17、ow-how and management capability. Hardware, software systems and processes are merely the outputs of technology.,Technology should be managed!,Myths and Realities - 3,Myth 3: There are “high technology” & “low technology” sectors. Reality: Not any more. The new technologies with impacts throughout t

18、he technological spectrum have eliminated that differentiation. Survival in every sector now depends on technological innovations leading to innovative products and services and their successful commercialization. Technological innovation is important in every sector!,Myths and Realities - 4,Myth 4:

19、 Technological innovations are useful only for productivity improvements. Reality: Technological innovations have an impact on everything the technology-based firm does. This includes the design of organizational structures, business restructuring and reengineering activities, quality management, id

20、entifying new business opportunities, responding to market discontinuities, and establishing local and global partnerships.,Technological changes may change the whole business.,Myths and Realities - 5,Myth 5: Technology is a technical matter. Therefore, it should be strictly an engineering issue. Re

21、ality: Unless technology strategy and business strategy are integrated, technology is of minimal utility for an enterprise. Such integration requires the development of technology management capabilities in engineers and scientists who do not normally attain it in their technical education.,Integrat

22、e technology into business strategy!,Myths and Realities - 6,Myth 6: Magic bullets are available for management of technology. Reality: Technology management is a highly complex phenomenon. It requires a systematic perspective and a sophisticated approach to develop effective strategies to address difficult issues. There are no easy solutions, no “cheap” solutions for it.,Find your own solutions! Get ready to take pains