Managing

Technology
and Innovation

Chapter Seventeen

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
 Learning Objectives
LO 1 List the types of processes that spur
development of new technologies.
LO 2 Describe how technologies proceed
through a life cycle.
LO 3 Discuss ways to manage technology for
competitive advantage.
LO 4 Summarize how to assess technology
needs.

17-2
 Learning Objectives (cont.)

LO 5 Identify alternative methods of pursuing

technological innovation.
LO 6 Define key roles in managing technology.
LO 7 Describe the elements of an innovative
organization.
LO 8 List characteristics of successful
development projects.

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 Technology and Innovation

 Technology
 The systematic
application of
scientific knowledge
to a new product,
process, or service.

17-4
 Question

___________ is a change in method or

technology.
A. Innovation
B. Quality
C. Speed
D. Service

17-5
 Technology and Innovation

Innovation
 change in method or technology
 positive, useful departure from previous ways of
doing things.

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 Forces Driving
Technological Development
1. Must be a need, or demand, for the technology
2. Meeting the need must be theoretically
possible, and the knowledge to do so must be
available from basic science
3. Must be able to convert the scientific knowledge
into practice in both engineering and economic
terms

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 Forces Driving
Technological Development
4. The funding, skilled labor, time, space, and
other resources needed to develop the
technology must be available
5. Entrepreneurial initiative is needed to
identify and pull all the necessary elements
together.

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 Technology Life Cycle

Technology life cycle

 A predictable pattern followed by a technological
innovation, from its inception and development
to market saturation and replacement.

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 The Technology Life Cycle
Figure 17.1

17-10
 Technology Dissemination Pattern and
Adopter Categories
Figure 17.2

17-11
 In-class discussion – How do you think
about yourself of buying a new smart
phone? Note 4, iPhone6

© 2014 by McGraw-Hill Education. 12

Diffusion of Technological Innovations

Innovators

Early
Laggards
Adopters

Late Early
Majority Majority
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Diffusion of Technological Innovations

 An innovation will spread quickly if it

 Has a great advantage over its predecessor
 Is compatible with existing systems, procedures,
infrastructures, and ways of thinking
 Has less rather than greater complexity
 Can be tried and tested easily without significant
cost or commitment
 Can be observed and copied easily

 Question – why GSC’s mobile booking can be easily

implemented?
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 Advantages and Disadvantages of
Technology Leadership
Table 17.1

17-15
 Technology “Follower”-ship

A manager’s decision on when to adopt new

technology also depends on the potential
benefits of the new technology, as well as the
organization’s technology skills
Following the technology leader can save
development expense

17-16
 Dynamic Forces of a Technology’s
Competitive Impact
Figure 17.3

Pendrive, DVD
products that are
produced after
creation of
computer
17-17
 Question
What is the process of clarifying the key
technologies on which an organization
depends?

A. Managerial audit
B. Benchmarking
C. External audit
D. Technology audit

17-18
 Assessing Technology Needs

 Technology audit
 Process of clarifying
the key technologies
on which an
organization depends

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 Measuring Current Technologies
 Emerging technologies  Pacing technologies
are still under have yet to prove their
development and thus are full value but have the
unproved – Google’s fully potential to alter the
automatic car
rules of competition by
providing significant
advantage
 Eg. Flexible display
paper

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 Measuring Current Technologies
 Key technologies have  Base technologies are
proved effective, but those that are
they also provide a commonplace in the
strategic advantage but industry; everyone
not everyone uses must have them to be
them able to operate
 E.g. GSC App  E.g. LCD projectors for
universities/college. E-
Commerce websites
for Airlines
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 Question
What is the process of comparing the
organization’s practices and technologies with
those of other companies?

A. Benchmarking
B. Quality control
C. Scanning
D. Environmental scanning

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 Assessing External
Technological Trends
Benchmarking
 the process of comparing the organization’s
practices and technologies with those of other
companies –focus on key technologies

17-23
 Assessing External
Technological Trends
Scanning
 focuses on what can be done and what is being
developed –focus on pacing or even emerging
 places greater emphasis on identifying and
monitoring the sources of new technologies for
an industry

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 Key Factors to Consider in
Technology Decisions
Anticipated market receptiveness

Technology feasibility

Economic viability

Anticipated capability development

Organizational suitability
17-25
 Framing Decisions about
Technological Innovation
Table 17.2

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 Class Activity

Watch the video clips

Discuss the products based on the key factors

© 2014 by McGraw-Hill Education. 7-27

 Sourcing and Acquiring
New Technologies
Make-or-buy decision
 The question an organization asks itself about
whether to acquire new technology from an
outside source or develop it itself.

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 Sourcing and Acquiring
New Technologies
 Internal development  Technology trading –
 Purchase – checking trades in
e.g.computers other industry
 Contracted  Research
development partnerships and
 Licensing – e.g. joint ventures
Software License  Acquisition of the
owner of the
technology
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 Sourcing and Acquiring
New Technologies
Managers should ask the following basic questions:
1. Is it important (and possible) in terms of
competitive advantage that the technology
remain proprietary?
2. Are the time, skills, and resources for internal
development available?
3. Is the technology readily available outside the
company?

17-30
 Technology Acquisition Options
Figure 17.4

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 Question

Which executive is in charge of information

technology strategy and development?
A. COO
B. CEO
C. CTO
D. CIO

17-32
 Technology and Managerial Roles

Chief information officer (CIO)

 executive in charge of information technology
strategy and development.
 coordinates the technological efforts of the
various business units
 identifies ways that technology can support the
company’s strategy
 supervises new-technology development

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 Technology and Managerial Roles

Technical innovator
 A person who develops a new technology or has
the key skills to install and operate the
technology
Product champion – leadership in
technology – Apple and Samsung
 A person who promotes a new technology
throughout the organization in an effort to
obtain acceptance of and support for it.

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 Technology and Managerial Roles

 Executive champion
 An executive who
supports a new
technology and
protects the product
champion of the
innovation.

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 Requirements for Innovation
Figure 17.5

Equal

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 Organizing for Innovation

Unleashing creativity involves encouraging

creativity and celebrating failure

Bureaucracy busting is necessary because

bureaucracy is the enemy of innovation

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 3M’s Rules for an
Innovative Culture
Table 17.3

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 Organizing for Innovation

Development project
 A focused organizational effort to create a new
product or process via technological advances

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 Organizing for Innovation

Sociotechnical systems
 An approach to job design that attempts to
redesign tasks to optimize operation of a new
technology while preserving employees’
interpersonal relationships and other human
aspects of the work
 E.g. GotoMeeting software

17-40
 Compensation Practices in Traditional
and Advanced Manufacturing Firms
Table 17.4

17-41