Technology Platform Exploitation: Definition and Research Boundaries Dominique R. JOLLY and Maryam NASIRIYAR 16th International Conference on Management of Technology, 2007, Miami Beach. Example: Dassault Aviation Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 2 Example: GEMPLUS … smart card Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 3 Example: GEMPLUS … smart card Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 4 Example: GEMPLUS … smart card Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 5 Theoretical Issues Raised Technology Platform: Kogut & Zander (1992), Kim & Kogut (1996), Chapelet & Tovstiga (1998), Koruna (2004), Osterloff (2005) Market Opportunities Diversification Firm’s Resources, Competencies & Capabilities Firm’s Performance Firm’s Product Portfolio Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 6 What do we learn from the literature? Corporate diversification is associated with higher performance when it takes advantage of economies of scope in valuable, rare, and inimitable resources (Barney, 1986; Prahalad and Hamel, 1990; Robins and Wiersema, 1995; Jolly, 2000) Firm’s resources Competences Econom. of scope when diversify Increase of perform. Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 7 What do we learn from the literature? Firm's technological resource significantly influences its diversification decisions and is a major source of product diversification and firm growth (Kim and Kogut, 1996; Patel and Pavitt, 1997; Silverman, 1999; Piscitello, 2000) Technological resources Diversification decisions Firm growth Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 8 Purpose of this paper PART 1 – CHARACTERIZE THE TECHNOLOGY PLATFORM (TP) PART 2 – POSITION OF THE TP vis-à-vis: Product platform Core competencies Dynamic capabilities Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 9 PART 1 – CHARACTERIZE THE TECHNOLOGY PLATFORM (TP) PART 2 – POSITION OF THE TP vis-à-vis: Product platform Core competencies Dynamic capabilities Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 10 contributions of previous research in technology platform Authors GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 11 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 12 (1) Related -Common sources -Simultaneous use Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 13 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform common base of platform in different product families or SBUs GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 14 (1) Related (2) Common base Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 15 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform common base of platform in different product families or SBUs Distinctiveness of competencies in platform GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 16 (1) Related (2) Common base (3) Distinctive Competitive markets Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 17 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform common base of platform in different product families or SBUs Managagerial and organizational capability characteristics Distinctiveness of competencies in platform Experience and accumulated knowledge of the firm GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 18 (1) Related (2) Common base (3) Distinctive Competitive markets (4) Experience Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 19 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform common base of platform in different product families or SBUs Managagerial and organizational capability characteristics Distinctiveness of competencies in platform Experience and accumulated knowledge of the firm Redeployment and reconfiguration of the competencies GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 20 (1) Related (2) Common base (3) Distinctive Competitive markets (4) Experience (5) Reconfiguration Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 21 contributions of previous research in technology platform Technologies characteristics Authors A set of related technological competencies as a platform common base of platform in different product families or SBUs Managagerial and organizational capability characteristics Distinctiveness of competencies in platform Experience and accumulated knowledge of the firm Redeployment and reconfiguration of the competencies Renewal and rejuvenating the competencies GEST(1986) Miyazaki (1994) Kim and Kogut (1996) Silverman, (1999) Giget (1999) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 22 (1) Related (2) Common base (3) Distinctive Competitive markets (4) Experience (5) Reconfiguration (6) Renew Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 23 Sum.: Technology platform features (1/2) Technology platform encompasses a set of technologies: 1- which are related; 2- which are common to different businesses and product families; 3- which are distinctive and can provide competitive advantage. Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 24 Sum.: Technology platform features (2/2) Firms which exploit the technological competencies as a platform: 3- Have experienced and accumulated knowledge in these technologies. 4- Have the ability to exploit technological assets by reconfiguring and recombining them into new applications and contexts. 5- Renew, rejuvenate and enrich its technological assets to respond market and technological changes. Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 25 PART 1 – CHARACTERIZE THE TECHNOLOGY PLATFORM (TP) PART 2 – POSITION OF THE TP vis-à-vis: Product platform Core competencies Dynamic capabilities Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 26 Competency characteristics Research Area Authors Prahalad and Hamel (1990) Core competency Dynamic capabilities common base of platform in different product families or SBUs Distinctiveness of competencies in platform Experience and accumulated knowledge of the firm Redeployment and reconfiguration of the competencies Renewal and rejuvenating the competencies Meyer et al (1993) Qingrui et al (2000) Krishnan and Gupta (2001) Halman, et al (2003) Markides and Williamson (1994) Lei, et al (1996) Product platform A set of related technological competencies as a platform base Competency management capability characteristics Kogut and Zander (1992) Teece , et al (1997) Eisenhardt and Martin, (2000) Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 27 Product Platform and Technology Platform Product family 1 SBU 1 Product family 2 SBU 2 SBU 3 Product 1 SBU … Technology platform Product 2 Product 3 Product … Product platform Common components, modules and parts A stream of technological resources Technology platform perspective Product platform perspective Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 28 Overlap between Product Platform, Technology Platform, Core Competencies and Dynamic Capabilities Core Competencies Sharing and renewing core competency in different business units of diversified firms Product platfor m Reusing a common base for a product family Dynamic Capabilities Building and reconfiguring competences to address rapidly changing environments Technology Platform Exploiting and renewing the technological competencies to generate new applications as large as possible Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 29 Paper’s contribution Technology platform characteristics Characteristics of technological competencies themselves Characteristics of organizational and managerial capabilities Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 30 Conclusion Technology platform is the result of firm’s accumulated knowledge and experience and its capabilities to reconfigure and reused the technological competencies inter-temporally in different core products and businesses. Technology platform encompass the characteristicas of dynamic capabilities and core competencies and applies them for the technological competencies. Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 31 Thank you for your attention! Dominique R. JOLLY, Professor CERAM Business School BP 085 – 60, rue Dostoïevski 06902 SOPHIA-ANTIPOLIS Cédex (France) Dominique.Jolly@Ceram.fr Jolly & Nasiriyar, 16th International Conference on Management of Technology, 2007, Miami Beach. 32