Dr. Shailendra Raj Mehta Duke Corporate Education IIM-Ahmedabad and Duke Corporate Education Technology Strategy 2 Overview To build on the Foundation Strategy Course To give you additional strategic tools, cases and insights into what are the challenges in managing the High Technology Ecosystem 3 My Background I have worked with many of the largest hi-tech companies in the world I have founded and run a startup developing some very advanced simulation technologies 4 This Course is New We have several topics here that are not usually covered in Technology Strategy courses around the world They are omitted because: - They are hard to deal with - There is very little material on them - They are deep they require experience and maturity to fully understand Examples - How do people deal with ambiguous situations? - How do people form mental models? - How do you deal with a partner ecosystem? - Technology as bricolage - What are standards wars? We will also deal with conventional topics covered in Technology Strategy courses - Disruptive technologies - Life cycle approaches 5 We Will Work Quite Hard in This Course Admission has been limited to 20 students We have one class a week There will be two submissions that you will be required to hand in - One individual submission - One group submission Three person teams are optimal There will be a course website where we can continue our dialogue Groups working on projects should post materials there Two additional sessions in case I need them to work with teams 6 Course Calendar 15 June 22 June 29 June 6 July 13 July 16 July - Saturday 27 July 3 August 10 August - Individual Assignment Due 17 August 24 August 27 August Saturday 2 September - Friday Group Assignment Due 7 Submissions - One individual submission Focus on one case or reading from the course and see what has happened to that firm or industry since the date of the reading. Present that in class at the end of the discussion that day Submit the analysis using one of the strategic tools - One group submission Pick one firm in either the IT or the Pharma industry and analyze its strategy using the tools discussed in any of your strategy classes Critique it Three person teams are optimal Use the following sources: Investor presentations Annual reports Regulatory filings especially in the US Analyst reports Media reports 8 Housekeeping Stuff Course Website Course Assistant Lunch Meeting 9 Man Model Making Machine Our brains were essentially model-making machines. We need to construct useful, virtual reality simulations of the world that we can act on. Within the simulation, we need also to construct models of other people's minds because we're intensely social creatures, us primates. We need to do this so we can predict their behaviour. We are, after all, the Machiavellian primate. For example, you want to know was what he did a wilful action. In that case he might repeat it. Or was it involuntary in which case it's quite benign. 10 Quickest Way to Change the World Know Believe Do Model of the World 11 What is a Mental Model? A statement of Salience what is relevant A statement of Values what is important A statement of Relationships how do things affect each other In this course I will teach you different mental models to work with You will forget facts but you will remember frameworks Preferably with Metaphors 12 Color Blindness / Shinobu Ishihara Test 13 Rose Tinted Glasses or Dark Glasses 14 Six Blind Men and the Elephant by Hanabusa Itcho (1888) 15 What is a Strategic Mindset? How Do Strategists See the World? 16 Risk 17 Ambiguity 18 Uncertainty 19 Is Uncertainty Good or Bad? It is a mental model issue 20 Chaos When the Institutional Structure of Society Breaks down Happens very rarely in modern times Survival instincts take over 21 Dupont Value Added Services Process Improvement Process Knowledge Operator Training Maintenance Programs Product Stewardship Materials of Construction Storage & Handling Facility Design Equipment Evaluations Safe Handling Training Process Safety Management Assessments Refinery Initiative Other DuPont Services 22 Dupont Value Added from Kotler 23 Five Types of Uncertainty Market Uncertainty Product Uncertainty Team Uncertainty Financial Uncertainty Environmental or Regulatory Uncertainty 24 25 26 Typical Checkpoints Market study Industry analysis Feasibility study Development of prototype Initial customer test with focus groups Human resource and manpower study Market research testing features Trials with beta users Focus group discussions with beta users Pilot plant Pilot marketing campaign Pilot design and site acquisition Pilot sales and recruitment training Pilot construction launch line 1 Manufacturing recruitment and training Plant commissioning Sales recruitment and training Product launch Full scale plant construction launch From: McGrath and MacMillan: Discovery Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. HBS Press, Chapter 7. 27 Consumption Chain for a Manufacturing Business Awareness of need Search Selection Ordering/ Purchasing Paying Receiving Installing Storing & moving Using Repairs & Returns Servicing Final Disposal Financing 28 A Consumption Chain Awareness of need Search for solution Selection of Provider Agreement to sign up Paying for service 1st Service Encounter Complaints/ Problems Ancillary Activities Contract Renewal Arranging Financing Source: MacMillan & McGrath, 'Discover New Points of Differentiation' HBR, 1997 More Encounters Contract completed Referrals 29 Scanning for Weak Signals Encyclopedia Britannica Nokia Motorola Who else? 30 Encyclopedia Britannica 31 Agility Giving up the illusion that you can predict the future is a very liberating moment. All you can do is to give yourself the capacity to respond to the only certainty in life--which is uncertainty. The creation of that capability is the purpose of strategy Lord John Browne, Group Chief Executive of BP 32 Ability to Spot Weak Signals When spring comes, snow melts first at the periphery, because thats where it is most exposed - Andy Grove, Intel Leaders must develop a sixth sense, an ability to see around the corner - Jack Welch, GE Clausewitz on Napoleon 33 What is a Business Model?