Topic 2: Overview of
Technology Management
Chapter 1
Harrison & Samson (2002)
Technology Management Field
Topics that will be emphasized in this class
include
• Technology Strategy
• Development of Technological capability
• Innovation management
• Technology management and business
competitiveness interface
• Technology adoption
• E-business and Virtual Corporation
Definitions
• Technology (for the purpose of this class)
refers to information technology (IT),
which includes computer
hardware/software, telecommunications,
networks, and database.
• Management function include planning,
organizing, coordinating, and controlling
Fact
• Effective use of IT provides a
competitive edge.
• IT is a means, not an end.
• People are the most important
resources.
• Most projects fail due to poor
management.
Innovation
• Innovation refers to new products,
new processes, new managerial
approaches, and combinations of the
above.
• An important aspect of innovation is
“Adoption and implementation of IT.”
Variables related to Innovation
(Burgelman & Maidique 1988)
• Resource availability and allocation
• Ability to understand competitors’
innovative strategies
• The business’ technological
environment
• Structure and cultural context
• Strategic management capacity in
dealing with entrepreneurial behavior
Success Factors of TM
(Maidique & Hayes in Burgelman & Maidique 1988)
•
•
•
•
•
•
Business focus
Adaptability
Organizational cohesion
Entrepreneurial culture
A sense of integrity
Hands-on top management
Framework for Reviewing
Technological Innovation: 8 Stages
• Discovery of a new idea or product
• Emergence of the proposed idea or design
concept
• Verification of the theory or design
• Demonstration of a prototype
• Trail and evaluation
• Commercial introduction or initial operation
of the innovation
• Innovation adoption
• Innovation proliferation
IT and Market
• Balancing between technology push
and market pull
• Proactive approach for technical
development
• Feasibility of an innovation:
technologically and commercially
• Congruent of an innovation with
corporate objectives and goals
Manager Perspective on
Managing Technology
• Advanced technology can create an
abrupt change in businesses.
• New technology requires (Beatty 1992)
– A skilled champion
– A plan for systems integration
– Organizational integration
Barriers to Success
•
•
•
•
Failure of a champion
Lack of systems integration
Incompatible systems
Lack of a cross-functional team
Lessons Learned
• Imbalance between technology generation
and technology diffusion in the US (Alic 1993)
• Requirements of international facility
location and technology transfer (Woodward &
Liu 1993).
• Technology will be useful only when it is
used.
• More emphasis needs to be placed on
adoption, adaptation, and exploitation of
technology
Lessons Learned (Con’t)
• Protecting existing technology rather than
promptly embracing new technology
becomes a “dead end” strategy (Ali & Zahra 1994).
E.g., IBM vs. HP.
• Customer involvement leads to success.
• Managers today must understand
– Impact of IT on the strategic and
organizational changes
– New role of IT in integrating different
business functions in systems design
Technology Transfer
(Hunter 2001,
http://www.nwci.org.uk/resources/licensing.ppt)
• Similar to tangible assets, technology
can be bought, sold, or lease
• Intellectual property rights can also
be bought and sold, or licensed for a
limited time, to another party
Technology Licensing
• Inward and outward licensing deals
with the issue of intellectual
property, which is beyond the scope
of this study
• Example: Infocus http://www.iinfocus.co.uk/main.php
Flexibility and Technology
• Flexible systems and computer integrated
manufacturing (CIM) are used in
manufacturing.
• It is not clear whether or not there is a
direct link between flexibility and
increased performance.
• Other factors such as organizational
structure, culture, and management
processes can influence the outcome.
Technology Forecasting (TF)
Evolution of R&D Management
• 1950-1975: TF is tactical, isolated, and not
a pervasive part of strategic planning.
• 1975-1990: TF is a data-gathering and
environmental scanning exercise, still an
isolated subtask of strategic planning.
• 1990-present: TF is an integral part of
strategic planning and business intelligence.
Technology & People
• It is true that people’s abilities haven’t changed much
while technology (esp. IT) has changed dramatically
Harrison & Samson (2002). However, people’s behavior has
changed significantly, which the authors fail to
emphasize. Thus, the way we manage people must be
changed as well.
• Although Harrison & Samson (2002) argue “technological
resources are becoming more important than human
resources in determining competitive outcomes” (p. 15),
I disagree as we’ve seen so many IS project failures
due to lack of skilled people and poor management.
Research in the past few years has begun to call for
more studies done on the human factor because it has
been ignored for too long.
Summary
• Technology management is critical for not only
creating but also sustaining a competitive
advantage of an organization.
• Technology consideration must be an integral
part of a firm’s business strategy.
• Change in technology without change in the way
it is used can lead to failure.
• Technology and human resources must be
working in an integral manner to ensure
success.
• Leaders must have a strong knowledge and
capability in managing both technology and
people.