Master’s thesis seminar
Technology strategy for a customer-owner dependent firm
intending to expand to new markets
Author: Juhana Francke
Supervisor: Prof. Raimo Kantola
Instuctor: M.Sc. Antti Alarotu
Contents
•
•
•
•
•
•
•
Objectives
Target firm introduction
Theoretical background and methodology
Work phases
Strategic technology areas and objectives
Technology strategy process
Conclusion
Objectives of the thesis
• How the strategic and operative
management of technology could be
organized in the target firm
• What technology strategic objectives
should the target firm have
The target firm
• 115 employees, turnover ~17 M€ (2002)
• 95 % of turnover comes from one
customer
• Largest customer had majority of shares
(60%)
• The firm was sold to Novo Group plc.
5/2003
Theoretical background
new entrants
Core competence,
dynamic capabilities
Firm
Product substitutes
Customer
Suppliers
Competition in
industry
About technology strategy
• First definitions in mid 80’s
• Process approach
• Responsibilities technology portfolio,
technological capabilities, development
and positioning technology
Responsibilites of technology
strategy
Business strategy
•Mission
•Business definition
Technology
Strategy
•Core competence
•Technology mix
•Enabling,
•Critical,
•Strategic
technologies
•Focus
•Value network
-Universities
-Companies
-Research labs
Marketing
Strategy
•Segmentation and
target groups
•Customer needs
•Market size and
potential
•Marketing mix
•Added value
•Products and
services’
•Values
•Vision
Manufacturingand Logistics
Strategy
Human
Resources
Strategy
•Management of
•Resource mgmt
production and logistics -Evaluation
•Make-or-Buy -decisions -Hiring
•Quality strategy
-Education
•Value network
•Key competence
•Environmental
areas
systems
Financial
Strategy
•Numerical
objectives
•Key figures
•Control and
reporting
•Ownership/
Owners
Source: Sjöman (2001)
Work phases
• Technology audit: the firm’s technologies
were identified and analyzed
• Gaps and their causes in firm’s
technological capabilities were identified
• Technology classification
• Trend identification, market analysis and
competitive environment
• Definition of technology strategy process
and strategic objectives
Strategic technology areas
Spearhead technologies
Usability layer
Key technologies
Enabling technologies
Software
development
Programming tools,
application servers etc.
Systems
management
Operating systems,
devices etc.
Service
Application
Platform
Integration
Infrastructure
Systems Integration
Technology-strategic objectives
• Deepen knowledge in Internet based software
development supporting systems integration
• Concentrate on systems integration
• Maintain systems management related
knowledge
• Active follow up of mobile systems
• Increase cohesion in all strategic technology
areas through training, employee turnover.
Technology strategy process
Define
Resources,
capabilities
Technology portfolio
Objectives
Customer’
s needs
Sets
Strategic
technology
area 1.
Strategic
technology
area n.
Trends
Business
strategy
Defines
External
environment
Are included
in
Firm’s technologies
Technolog
y recommendation
s
Guide and
shape
Scenarios
Roadmaps
Conclusion
• The choice to expand to new markets will
be extremely challenging
• By formalizing technology management
the firm may be able to maintain its
technological capabilities
• This thesis has provided the firm a starting
point