Prentice Hall, Inc. © 2006 12-1

STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 12 Strategic Issues in Managing

Technology and Innovation

Prentice Hall, Inc. © 2006 12-2

Executive Fear over loss of Innovation

Prentice Hall, Inc. © 2006 12-3

Technology and Innovation

The Role of Management –

–Innovation–Management of technology

Prentice Hall, Inc. © 2006 12-4

Technology and Innovation

Environmental Scanning –

–External Scanning•New developments in technology

Prentice Hall, Inc. © 2006 12-5

Technology and Innovation

Impact of Stakeholders on Innovation –

–Lead Users Process•Lay the foundation•Determine the trends•Identify lead users•Develop the breakthrough

Prentice Hall, Inc. © 2006 12-6

Technology and Innovation

Impact of Stakeholders on Innovation –

–Market Research–New Product Acquisition

Prentice Hall, Inc. © 2006 12-7

Technology and Innovation

Environmental Scanning –

–Internal Scanning•Resource development•Experimentation•Risk taking•New ideas•Autonomous project teams

Prentice Hall, Inc. © 2006 12-8

Technology and Innovation

Environmental Scanning –

–Resource Allocation Issues•R&D intensity•Time to market issues

Prentice Hall, Inc. © 2006 12-9

Product & Process R&D Innovation Life Cycle

Prentice Hall, Inc. © 2006 12-10

Technology and Innovation

Outsourcing Technology –

–Low significant to competitive advantage–Supplier has proprietary technology–Supplier’s better–Strategy based on design not development–Requires special expertise–Requires new people and resources

Prentice Hall, Inc. © 2006 12-11

Technology and Innovation

Intellectual property –

–Special knowledge used in new product or process

Prentice Hall, Inc. © 2006 12-12

Technology and Innovation

Technological Competence

–Absorptive capacity–Technological competence

Prentice Hall, Inc. © 2006 12-13

Categories of Innovation

Prentice Hall, Inc. © 2006 12-14

Product/Market Evolution Portfolio Matrix

Prentice Hall, Inc. © 2006 12-15

Stages of New Product Development

Prentice Hall, Inc. © 2006 12-16

Technology & Innovation

Innovative Organizations –

–Positive attitude toward change–Decentralized decision making–Informal structure–Interconnectedness–Organizational slack–Large size–System openness

Prentice Hall, Inc. © 2006 12-17

Designs for Corporate Entrepreneurship

Prentice Hall, Inc. © 2006 12-18

Evaluation and Control

Techniques –

–Stage-gate process–House of quality–Index of R&D effectiveness

Prentice Hall, Inc. © 2006 12-19

House of Quality