BPT 3113 – Management of Technology
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Introduction
Concept and Nature of Innovation
Types of Innovation
Sources of Innovation
Models of Innovation
Innovation Process
Influencing Factors
• Explain the concept, components and characteristics
of innovation
• Describe the models and sources of innovation
• Know the stages in the innovation process
• Identify the factors that contribute to successful
innovation
• Managing technology involves continuous effort in creating
technology, developing novel products and services, and
successfully marketing them
• It requires:
 Great creativity
 Investment in R&D
Idea
Labs
R&D
Product
Marketplace
• Invention is an idea for a novel product or process
• Innovation is the introduction of new products, processes or
services into the market place
• Technological innovation begins with invention – a sub-set of
innovation
• The process of technological innovation is a complex set of
activities that transforms ideas and scientific knowledge into
physical reality and real-world applications - converts
knowledge into useful products and services that have
socioeconomic impact.
• Characteristics of organizational innovation are as follows:
• An innovation must be...
 A tangible product, process or procedure within an
organization
 New to the social setting within which it is introduced
 Intentional rather than accidental
 A challenging change
 Aimed at predicting benefit to the organization
 Public in its effects
Physical, Material
or Hardware
• Computer
• Machinery
Functional or
Process
Mechanism
• Software
• Process
Reengineering
Knowledge
Component
• Manual
• Operating
instruction
Competence Enhancing vs. Destroying Innovation
Architectural Innovation vs. Component Innovation
Technical vs. Social Innovation
Radical vs. Incremental
Product and Process Innovation
Competence Enhancing vs. Competence Destroying
• Competence enhancing innovation builds on existing knowledge and
skills
• Enhancing or destroying depends on whose perspective is being taken
Destroying
Enhancing
Architectural
Innovation that changes the overall
design of a system / the way its
components interact with each
other
Component
Innovation to one or more components
that does not significantly affect the
overall configuration of the system
Technical vs. Social
• Management, that is the ‘useful knowledge’ that enables man for the
first time to render productive people of different skills and knowledge
working together in an ‘organization’
Create an essentially
different kind of
product – require
customers to radically
change their past
behavior
Make small-step
improvements to the
original technology
and design
Product Innovations
• Improvements in existing products or creating entirely new products
Process Innovations
• Involve changes in existing process or adopting a entirely new process
Economic
Environment
SocioCultural
Environment
Technological
Environment
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• Changes in
Demographics
• Changes in Perception
• Innovative Users
New knowledge
Convergence
Publications
Outside industries
• Fundamental components of the model are the same but the nature of
the business may dictate variations in implementation techniques.
Martin (1994) illustrate the technological innovation process as a chain
equation
• Reveals the important role of entrepreneurship in connecting ideas to the
marketplace
• The management role in the innovation chain emphasizes:
– The need for stability and control at a certain phase of the innovation process
– A formalized managerial structure tends to produce incremental and process
innovations more than radical innovations
Mills (1996) provided very simplified but interesting definitions for several
components of the process of technological innovation known as minimalist
definitions.
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Science : How things are.
Technology : How to do things.
Management : How to get things done.
Technology management : Doing things.
Entrepreneurship : Doing things to make money
Innovation : Doing entrepreneurship
8 Stages of Technological Innovation
1.
Basic Research
 Increase our general understanding of the laws of nature
 Generating knowledge over a long period of time
 May or may not result in specific application
2. Applied Research
 Directed toward solving one or more of society’s problems (specific
problems)
 Eg.: research conducted to develop a drug for treating a known disease
3. Technology Development
 Human activity that converts knowledge and ideas into physical
hardware, software or service - prototype
4. Technology Implementation
 Set of activities associated with introducing a product into the
marketplace – success commercial introduction
5.
Production / Manufacturing
 Set of activities associated with the widespread conversion of design
concepts or ideas into products and services – production control,
logistic
6.
Marketing
 Set of activities that ensures that consumers embrace the technology –
promotion, distribution strategy
7.
Proliferation / Diffusion
 Strategy that ensure the widespread use of the technology and its
dominance in the marketplace
 Depends on methods of exploiting the technology
8.
Technology enhancement
 Set of activities associated with maintaining a competitive edge for the
technology - increases the life cycle of the technology
• Border crossings (national and sectorial)
– Increasing of science-technology articles with international coauthorship and also between academic and government
• Emergence of complex technologies
– Fit to and cause from diverse demands, perspectives, approaches and
contexts
• Age of knowledge and distributed intelligence, KDI
– Network of knowledge – integration of knowledge from different
sources and domains across space and time
– Learning and intelligent systems - exploring the human behavior in
collaboration with machines
– Computing challenges - exploit the numeric barrier
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The presence of scientific knowledge – technological change is dependent
on scientific discoveries
The level of maturity of the underlying science – a wide base of
knowledge enhances technological development
The type of technology and the phase of its life cycle – innovation rate is
high for emerging and growing technology
The level of investment in technology – technological development is
connected to the level of R&D funding
The level of political commitment – the pace of innovation is sensitive to
high level policy decisions
The ability to borrow advances from related technologies – advances in
communication technology are dependent on satellite components
The diffusion rate and patterns - a technology that is widely diffused in
the market may delay other technologies from entry
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Recognition to Technology
Time to Market
Multiple-site continuous R&D
Improvements in Communication
The Push for Education
Changes in Institutional Interactions
Changes in Organizational Structure
 Technological innovation is a sub-set of innovation
 Technological innovations may arise from sources within or
outside the organization
 Innovation process has been viewed as a sequence of
separable stages
 Two basic variations of innovation models are technology
push and market pull