Integrating Technology and Strategy A General Management Perspective 1 Outline 2 Introduction Key concepts concerning technological innovation and their interrelations The integration of technology with business and corporate strategy A framework for auditing and assessing the firm’s innovation capabilities Conclusion Introduction To deal with issues of technology and innovation Key task of the general manager 3 Acquire, develop, and allocate an organization’s resources Develop and exploit the firm’s capacity for innovation Outline 4 Introduction Key concepts concerning technological innovation and their interrelations The integration of technology with business and corporate strategy A framework for auditing and assessing the firm’s innovation capabilities Conclusion The Relationships among Key Concepts Concerning Technological Innovation Technical world Technological entrepreneurship Commercial world = Administrative capabilities + Results Invention/discoveries/technologies Activities Research activities Tinkering/ experimenting 5 Development activities Technological innovation Product/process development activities Market development activities Outline 6 Introduction Key concepts concerning technological innovation and their interrelations The integration of technology with business and corporate strategy A framework for auditing and assessing the firm’s innovation capabilities Conclusion Integrating Technology and Strategy 7 Perspectives on strategy Positive view Normative view Generic Strategy overall Overall cost leadership focus Focus-segment cost leadership Overall differentiation Focus-segment differentiation The areas of competition 8 The way of creating the value Generic Strategy Overall cost leadership Overall differentiation Focus-segment Focus-segment cost leadership differentiation Technological policies Product technological change Product development to reduce product cost Product development to enhance quality IBM Process technological change Process development to enhance economies of scale Process development to support high tolerances Product development to support only enough performance Product design to meet exactly the needs of particular segment Process development to tune production to segment needs Process development to tune production to segment need Benetton 9 The Product / Technology Matrix Product A Product B Technology 1 Technology 2 Technology 3 ‧ ‧ ‧ Technology K 10 (*) ‧‧‧ Product N Developing the Technology Portfolio Bet Technology importance Draw Warrant the firm’s full commitment Be positioned ambiguously Cash in Fold Should be examined carefully Reconsider its investments Relative technology position 11 Matching Business & Technology Portfolios Business Technology Attractiveness Importance B A B Competitive position 12 A Position Representative Technologies in a Firm’s Value Chain 13 Transportation technology Material handling technology Basic product technology Machine tool technology Transportation technology Packaging technology Media technology Audio & video recording technology Diagnostic and testing Information system Inbound logistics Operations Outbound logistics Marketing sales Service Technology Life Cycle & Competitive Advantages Life Cycle 14 Importance of Technologies for Competitive Advantages Emerging Technologies Have not yet demonstrated potential for changing the basis of competition. Packing Technologies Have demonstrated potential for changing the basis of competition. Key Technologies Are embedded in and enable product/process. Have major impact on value-added stream. Allow proprietary/patented positions. Base Technologies Have minor impact on value-added stream; common to all competitors; commodity. Outline 15 Introduction Key concepts concerning technological innovation and their interrelations The integration of technology with business and corporate strategy A framework for auditing and assessing the firm’s innovation capabilities Conclusion Innovative Capabilities Audit Framework Innovative Capabilities The comprehensive set of characteristics of an organization that facilitate and support innovation strategies. Business Unit Corporate 16 Business Unit Level Resource availability Understanding competitors’ innovative strategies and industry evolution Business unit innovative strategies Business unit structural and cultural context 17 Understanding business unit technological environment Business unit strategic management capacity Corporate Level Resource availability and allocation Understanding competitors’ innovative strategies and multi-industry evolution Corporate innovative strategies Corporate structural and cultural context 18 Understanding corporate technological environment Corporate strategic management capacity Outline 19 Introduction Key concepts concerning technological innovation and their interrelations The integration of technology with business and corporate strategy A framework for auditing and assessing the firm’s innovation capabilities Conclusion Conclusions 20 Leadership