The fundamental Factors In Management Of Technology Provided By: Mina Eghtedarian Adviser: Dr.Momeni Index Chapter Page Chapter Page Chapter Page The Creativity Factor 3 Innovation – Main Skills 13 Changing management 23 Invention 4 Becoming More Creative 14 Forces of change 24 Innovation 5 Technology and Price 15 Managing positive change 25 Science And Technology 6 Bringing Innovation to Market 16 Managing Resistance to Change 26 What is the real situation? 7 Time and technology 17 Changing process 28 Extent of Innovation 8 Innovation In Business 18 Change Strategies 29 Modality of Innovation 9 Productivity 19 What Really Works 30 Other Dimensions of Innovation 10 Effectiveness 20 Pioneers vs. Followers 31 7 Factors Of Innovation Impulses 11 Competitiveness 21 being Pioneer in innovation 32 Variables Of Innovation 12 Why we should change? 22 Case Study 33 The Creativity Factor Technology is an expression of human creativity. Managing technology involves continuous effort in creating technology, developing novel products and services , and successfully marketing them. This requires great creativity along with a system designed to exploit it. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 3 Invention Is either a concept or the creation of a novel technology. Invention occur as a result of human ingenuity and imagination. They occur only sporadically, by chance or through trial and error to satisfy a need. In modern times most inventions have followed scientific discoveries. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 4 Innovation Involves the creation of a product, service, or process that is new to an organization. (Aiken & Hage ,1979) An innovation may be a change in industrial practice, which improves productivity. (Shompter,1928) The innovation process involves integration of existing technology and inventions to create a new or improved product, process, or system. (Jain&Triandis,1990) • Innovation = Invention + exploitation (Ettlie) Management of technology the key to competitiveness and wealth creation, Tarek Khalil 5 Science And Technology Science & Technology Improvement Science Technology Time www.stconsultant.blogspot.com 19 century 6 What is the real situation? • Booz Allen Hamilton Global Innovation 1,000 Study 2006: – Innovation can lead to higher performance, but the process isn’t automatic and it does not necessarily require above average levels of investment. – The most successful companies combine an integrated process and a supportive culture to create a sustainable competitive advantage – Money simply cannot buy effective innovation. – Less than 10% of companies are Innovators ,but in having a very good innovation management system • Innovation Network Survey, fall 2004 [same result from 2005], new innovation leaders in medium to large companies: – – – – 71% said they had no metrics for their position 60% of them have innovation as part of their mission/job objectives 68% have no well defined innovation process within their company 54% have no working definition of innovation Source: Dr.V.S.R.Krishnaiah, Sr.Technical Director, NIC 7 Extent of Innovation Radical innovation :occurs when major improvements are made to a product. Incremental innovation :occurs when small improvements are made to a product, or the processes used in manufacturing a product. Routine innovation :occurs when the innovation is new for organization but is similar to old technology. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 8 8 Modality of Innovation the ‘4Ps’ of innovation Product innovation: changes in the things (products or services) which an organization offers Process innovation: changes in the ways in which they are created an delivered Position innovation: changes in the context in which the product or services are introduced (Packaging Innovation ,Design innovation) Paradigm innovation: changes in the underlying mental modes which frame what an organization does (Brand Innovation , Value Innovation) http://www.smeir.ir. 9 7 Factors Of Innovation Impulses INTERNAL I. II. III. IV. Unexpected event Contradiction Change of work process Change in the structure of industry or market EXTERNAL V. Demographic changes VI. Changes in the world view VII. New knowledge http://www.slideworld.com http://www.slideworld.com 11 Variables Of Innovation Structural Variables – – – – – Adopt an organic structure Make available plentiful resources Engage in frequent inter unit communication Provide explicit support for creativity Management Commitment http://www.citeHR.com Cultural Variables – – – – – Accept ambiguity Have low external controls Tolerate risk taking Tolerate conflict Focus on ends rather than means Human Resource Variables – – – Actively promote training and development to keep employees’ skills current. Offer high job security to encourage risk taking. Encourage individual to be “champions” of change. 12 Innovation – Main Skills Association: it is a cognitive skills that allows creative people to make connections between questions, problems and ideas. Questioning: it is an ability to ask: “What if”, “why” and “why not” and challenge the answers. Close observe details: particularly the details of people’s behavior. The ability to experimenting. Conceptual fluency The ability to generating new idea. http://www.slideworld.com 13 Becoming More Creative • • • • • • • Think of yourself as creative Pay attention to your intuition Move away from your comfort zone Engage in activities that put you outside your comfort zone Find several right answers Believe in finding a workable solution Brainstorm with others 14 Technology and Price Organization knowledge Distance Time Customer knowledge Technologic Distance Management of technology the key to competitiveness and wealth creation, Tarek Khalil 15 Bringing Innovation to Market IF ONE DESIRES A CHANGE, ONE MUST BE THAT CHANGE BEFORE THAT CHANGE CAN TAKE PLACE Invention Has no instantaneous Commercial value Scientific Discovery Innovation Adopting invention Market Buying or ignoring the innovation Management of technology the key to competitiveness and wealth creation, Tarek Khalil 16 Time and technology Case study “CHANGE IS UNIVERSAL… CHANGE IS PERMANENT…. BE EVER WILLING TO CHANGE….. FOR, CHANGE ALONE LEADS YOU TO SUCCESS AND HAPPINESS!!! I.Osborne II.IBM III.Microsoft Management of technology the key to competitiveness and wealth creation, Tarek Khalil 17 Innovation In Business Innovation may be linked to: Performance growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. 18 Productivity Output (GDP) Productivity = = ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــ$/hour worked Input (total hours worked) On a national level, productivity is a very important factor in raising the standard of living. Standard of living is often associated with a population’s per capita income. GDP Per capita income = = ــــــــــــــــــــــــــــــــــــــــــــــ$/person Total population Management of technology the key to competitiveness and wealth creation, Tarek Khalil 19 Effectiveness Implies the ability to achieve desired goals. Is about producing or being capable of producing results. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 20 Competitiveness Indicates the standing of a country or a company in relation to a known group. The competitiveness of a company compares the firm’s output to the outputs of its competitors and indicates its standing in the marketplace. A company is competitive when it maintains a profitable status while producing a product or service that meets the tests of the marketplace. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 21 Why we should change? The world is changing very fast. Big will not beat small any more . It is now be the fast beating the slow. Trade/1950 Sms/2001 Research/1960 2011 Email/1994 Mail/1970 Phone calls/1980 Michael Jackson, Seminar , Ahwaz 22 Change Management CHANGE IS THE ONLY THING THAT WILL NEVER CHANGE. SO BETTER ADAPT TO IT. What are your feelings about change? People have a natural resistance to change People get bored with routine and seek out new experiences Can we be both at the same time? http://www.slideworld.com 23 Forces of change DO NOT ALLOW ROUTINES TO BECOME CHAINS! Competition External Forces of Change Government Programs Economic Conditions Technology http://www.slideworld.com Change in organization Internal Forces of Change Workforce changes New equipment Employee attitudes 24 Managing positive change Announce Change I don’t understand the changes but am confident of the current situation Surprise Acceptance Of Change Intended Result I have lots of details of how I’ll be working differently and feel much more confident Adapt It’s your choice Anger Progress Belief I have some information and have strong doubts Commitment Fear Disappointment Acceptance Denied Trial doubt Time Michael Jackson, Seminar , Ahwaz I have more details of how the changes will affect me and still have some concerns 25 Managing Resistance to Change KEEP RENEWING YOURSELF Why People Resist Change? – The ambiguity and uncertainty – The comfort of old habits – A concern over personal loss of status, money, authority, friendships. – The perception that change is incompatible with the goals and interest of the organization – Fear of Personal Loss – Lack of Faith in Change http://www.slideworld.com 26 Managing Resistance to Change Do Your Best And Leave The Rest ….! Techniques for Reducing Resistance http://www.slideworld.com Education and Communication Participation Facilitation and Support Negotiation Coercion 27 Changing process SURROUND YOURSELF WITH PEOPLE WHO ARE OPEN TO CHANGE…! Lewin’s Three-Step Process Unfreezing http://www.slideworld.com Changing Refreezing 28 Change Strategies ANTICIPATE CHANGE EVEN WHEN THINGS ARE GOING RIGHT! 4 change Strategies Structure Authority Coordination Centralization http://www.slideworld.com Technology Processes Methods Equipment People Attitudes Expectations Behavior Product New products New services 29 What Really Works Change the Work Setting or Change the People? RESPECT YOURSELF. THE WORLD WILL REWARD YOU ON YOUR SUCCESSES. Changing the Work Setting 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 55% Changing Organizational Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 57% 10% 20% Changing Individual Behavior 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% http://www.slideworld.com 30 Pioneers vs. Followers Innovation does not happen by itself, It is the result of hard work, well planned , Executed and is no happening (Drucker, 1985) Classification of organization Pioneers Followers laggards Management of technology the key to competitiveness and wealth creation, Tarek Khalil 31 being Pioneer in innovation NEVER CHANGE YOUR CORE VALUES Advantage I. II. III. IV. V. VI. VII. VIII. Well known brand Promote marketing position Standardization Earlier learning curve Support barriers High benefit Customer loyality Appropriate responses Disadvantage I. II. III. IV. V. High cost of research & marketing & experiment& final design. High cost of keeping pioneer. High cost of change and redesigning technology. Ambiguity of market reaction. Base of competition. Management of technology the key to competitiveness and wealth creation, Tarek Khalil 32 Case Study Result of innovation process WE MUST REMEMBER THAT SUCCEEDING IN A CHANGING WORLD IS BEYOND JUST SURVIVING Followers 2 • • • 4 • • • IBM Matsushita(VHS) Seiko Kodak Northrup DEC Pioneers 1 • • • Pilkington(Float Glass) Searl(Nutra Sweet) Du Pont 3 • • • • • RC Cola EMI Xerox Bawmar DeHavilland Successfully fail Management of technology the key to competitiveness and wealth creation, Tarek Khalil 33 Answers and Questions 34