Managing

Technology
and
Innovation
Chapter 17

McGraw-Hill/Irwin

Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

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
17-3

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
A change in method or technology; a
positive, useful departure from previous
ways of doing things.

17-6

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
17-7

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.

17-8

Technology Life Cycle

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

17-9

The Technology Life Cycle

Figure 17.1

17-10

Technology Dissemination Pattern

and Adopter Categories

Figure 17.2

17-11

Diffusion of Technological
Innovations

17-12

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
17-13

Technological Innovation in a
Competitive
Environment

17-14

Advantages and Disadvantages of

Technology Leadership

Table 17.1

17-15

Technology Followership
A managers decision on when to
adopt new technology also depends
on the potential benefits of the new
technology, as well as the
organizations technology skills
Following the technology leader can
save development expense

17-16

Dynamic Forces of a Technologys

Competitive Impact

Figure 17.3

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

17-19

Measuring Current
Technologies
Emerging
technologies
are still under
development and
thus are
unproved

Pacing
technologies
have yet to prove
their full value but
have the potential
to alter the rules
of competition by
providing
significant
advantage
17-20

Measuring Current
Technologies
Key
technologies
have proved
effective, but they
also provide a
strategic
advantage
because not
everyone uses
them

Base
technologies
are those that are
commonplace in
the industry;
everyone must
have them to be
able to operate

17-21

Question
What is the process of comparing the
organizations practices and technologies
with those of other companies?
A.Benchmarking
B.Quality control
C.Scanning
D.Environmental scanning

17-22

Assessing External Technological

Trends
Benchmarking
the process of comparing the
organizations practices and
technologies with those of other
companies

17-23

Assessing External Technological

Trends
Scanning
focuses on what can be done and what
is being developed
places greater emphasis on identifying
and monitoring the sources of new
technologies for an industry

17-24

Key Factors to Consider in

Technology Decisions

17-25

Framing Decisions about

Technological Innovation

Table 17.2

17-26

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.

17-27

Sourcing and Acquiring New

Technologies
Internal
development
Purchase
Contracted
development
Licensing

Technology
trading
Research
partnerships
and joint
ventures
Acquisition of
the owner of
the technology
17-28

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?

17-29

Technology Acquisition Options

Figure 17.4
17-30

Question
Which executive is in charge of
information technology strategy and
development?
A.COO
B.CEO
C.CTO
D.CIO
17-31

Technology and Managerial

Roles
Chief information officer (CIO)
executive in charge of information
technology strategy and development.
coordinate the technological efforts of
the various business units
identify ways that technology can
support the companys strategy
supervise new-technology development
17-32

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
A person who promotes a new
technology throughout the organization
in an effort to obtain acceptance of and
support for it.
17-33

Technology and Managerial

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

17-34

Organizing for Innovation

Unleashing creativity involves
encouraging creativity and
celebrating failure
Bureaucracy busting is necessary
because bureaucracy is the enemy
of innovation
17-35

3Ms Rules for an Innovative

Culture

Table 17.3

17-36

Organizing for Innovation

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

17-37

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

17-38

Compensation Practices in
Traditional and Advanced
Manufacturing Firms

Table 17.4
17-39

Destination CEO: Adobe

Discuss the role
of innovation at
Adobe.

If you were a
manager, how
would you
encourage
creativity?

17-40