Chapter 1
Creation and
Management of
Innovation and
Technology: An
Overview
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website or school-approved learning management system for classroom use.
Chapter Outline
• The significance of technology, innovation, and
their management
• The meaning of technology
• The process of creating and managing technology
• The meaning of innovation
• The process of creating and managing innovation
• The structure of this examination of the creation
and management of technology and innovation
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Importance of Technology and Innovation
to Business
Businesses are directed by technology and its
application
Changes in telecommunications have resulted in
more transparent and efficient pricing
Use of innovation and technology in one domain
leads to greater need for changes in technology
in other areas
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Radio Frequency Identification (RFID)
• Requires a small tag to be placed on each item
when a product is manufactured
• Tag allows the product to be actively tracked from
the time it leaves the manufacturer until it leaves
the store
• Ability to track results in better control of
shrinkage or loss due to theft or misallocation
• Helps the firm improve inventory control in the
stores
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Any other
examples?
Importance of Innovation and Technology
to Society
• No net job creation without technology start-ups
• Innovation and technology-based businesses
contribute to the state’s international exports
• Increased levels of outsourcing as firms tend to
lower costs
• Pushing: New innovations in technology lead to
changes in society that were not expected
• Pulling: Society demands innovations from
businesses
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Sources of Differences and Similarities in
Technological Domains
Regulatory institutions
• Laws and regulations in a given country
Normative institutions
• Norms of various industries and professions
Cognitive institutions
• Influences that come from the broader society and
shape an individual’s behavior
• Viewed as culture of a country
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Value Creation
Goal of innovation and
technology processes is to add
value to a business
Need for technology must be
recognized to provide a
visible and timely creation of
value for the firm
Competitive environment
requires proof of potential
value before a firm invests in
innovation and technology
Value addition of technology
must be based on sound
analysis and forecasts
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Figure 1.1 - Process to Be Managed—
Discovery to Application
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Technology
Practical implementation of learning and
knowledge by individuals and organizations to
aid human endeavor
The knowledge, products, processes, tools, and
systems used in the creation of goods or in the
provision of services
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Figure 1.2 - Systems View of Organizations
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Figure 1.3 - Areas Influencing the Management
of Technology and Innovation
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Creation and Management of Technology
Linking of different disciplines
to plan, develop, implement,
monitor, and control
technological capabilities
To shape and accomplish the
strategic objectives of the
organization
Evaluation and control involve monitoring technology to
ensure that it meets the desired outcomes
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Reasons for Management of Technology
Need for cross-discipline approach for effective and efficient economic
development
Shortened product life cycles
Need to cut product development time and develop more flexibility in
organizations
Maximized competitiveness due to increasing international competition
Determination of new tools of management
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Making Decisions for Creating and
Managing Technology
• Firm must determine:
• Its strategic posture
• If it will develop its own new technology or buy
the technology
• Scope of products it wants to offer
• Scale of products, how it will price the products,
where it will market the products, and where it
will manufacture the products
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Process of Creating and Managing
Technology
Analyze
Understand
Conduct
Forecast
Analyze the
industry
structure both
domestically
and
internationally
Understand the
firm’s
capabilities and
those of its
competitors
Conduct a
financial
analysis of the
product and
firm
Forecast future
changes
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Figure 1.4 - Innovation Categories
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Just-in-Time (JIT) Inventory Management
• Process innovation that ensures the inputs into a
production process are there just as they are
needed for the process
• Allows firms to save on storage and capital costs
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Creation and Management of Innovation
• Comprehensive approach to managerial problem
solving and action based on an integrative
problem-solving framework
• Understanding the linkages between innovation
streams, organizational teams, and organization
evolution
• Involves managing politics, control, and individual
resistance to change
• Manager acts as an architect/engineer,
politician/network builder, and artist/scientist
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Process of Managing Innovation
• Separate funds for innovation
• Periodic reviews of informal proposals by a group
outside line management
• Clear direction on studies to be done and followups that are expected
• Extensive boundary-spanning activities to learn
from others and to gain an understanding of what
others are doing
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Process of Managing Innovation (continued)
• Sets of realistic expectations
• Supportive atmosphere for debugging and
exploring variations and appropriate resources for
maintenance and service
• Conducive environment for creativity
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Individual Characteristics that Encourage
Innovation
Asking questions to identify
problems and opportunities
Learning new skills
Taking risks and being
proactive
Aligning strong personal
beliefs and values with the
organization’s values and
goals
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Figure 1.5 - Cyclical Innovation Process
Model
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license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Managerial Guidelines
• Proactive firms should:
• Designate clear technology leaders who champion
change
• Know how the processes can work to help and to
hinder the development of new technology
• Assess objectively where the firm is on the
technology curve
• Assess the strengths and weaknesses of personnel
and the approach to the management of
technology and innovation
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
Managerial Guidelines (continued)
• Set realistic priorities
• Develop excellent infrastructure to help find and
take advantage of potential opportunities
• Understand what the tasks are and how they are
connected or disconnected
• Be systematic in the search and assessment
processes
• Savor every victory and learn from every failure
• Be confident that the decision made will move in
the right direction
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a
license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.