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Patterns of technological Innovation versus organizational Changes
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Transcript of Patterns of technological Innovation versus organizational Changes
Technological vesus Organizational Change, Mangement of Technological Innovation, Hongyi Sun
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Patterns of technological Innovation versus organizational
Changes
Hongyi Sun
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1. Introduction & problemsAreas of technological
innovation• Manufacturing/service process
• Engineering and new product development
• Administration/management
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New/High. Technologies: Advanced Manufacturing
Technology : AMT
• CNC, robots, FMS,..
• CAD, CAD/CAM,…
• MIS, ERP, CIM..
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Diffusion of new technology
• Two examples (1970s to 1980s)
• Robots
• FMS (Flexible manufacturing systems)
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Performance
• A UK study: CAD, robot, FMS• A US study: failure rate:________• A Danish study on AMTs in 1980s• A Harvard study (compare US & Japan)• A CityU study (Shangahi N.2 textile
Machines Plant)• Others: Titanc, US space shuttle, HK new
airport, ….
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Questions?
• WHY?
• Hvafor?
• Kuim? WHY ?
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A survey by US National Academy of Science: -> Technology Management
How to integrate technology into the overall strategic objectives of the firm.
How to get into and out of technologies faster and more efficiently.
How to assess/evaluate technology more efficiently. How to accomplish technology transfer. How to reduce product development time. How to manage large, complex and interdisciplinary or inter-
organizational projects/systems. How to manage an organization’s internal use of technology. How to leverage the effectiveness of technical professionals.
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2. Literature review
• Organizational and managerial issues for implementing advanced manufacturing technology (AMT).
• Assumption: Organizational aspects were considered sufficiently
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Research questions
• What aspects of org.?
• Why were they not considered?
• When should they be considered?
• How can they be considered?
• ….
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Organization-Technology Map (O-T map)
Technological innovation
Organizational changes
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Ettlie (1988):Synchronously innovating technology &
administration AdministrativeInnovation
TechnologicalInnovation
High
Low
Medium
Medium
Low
Low
Low
High
High
High
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Bessant (1990): Simultaneous innovation
incr
easi
ng
org
an
izati
on
al in
novati
on
Synchronous innovatio
n
Increasing technical innovation
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Voss & Twigg (1991): More attention to the organizational aspect
Low
High
Low HighDegree of organisational changes
Degr
ee o
f tec
hnolo
gica
l cha
nges
O.
T.
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O-T map: hypothesis of pathes
T
O
B-path
T-path
O-path
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3. Empirical data
• Unit of study (scope of study)
• Case study (cross-section vs longitudinal)
• Survey – Questionnaire design– Sampling– Informants
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Technology dimension Technological dimension None Little Some Much Very
much
1 Material handling 1 2 3 4 5
2 Transporting 1 2 3 4 5
3 Assembling and welding 1 2 3 4 5
4 Measuring/testing 1 2 3 4 5
5 Fabricating 1 2 3 4 5
6 Data collecting 1 2 3 4 5
7 Production management 1 2 3 4 5
8 Process planning 1 2 3 4 5
9 Integration with marketing 1 2 3 4 5
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Integration with design 1 2 3 4 5
Computer -index (average)
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Organizational dimension Human factors None Little Some Much Very
much1 Individual Initiative 1 2 3 4 5
2 Suggestions of ideas 1 2 3 4 5
3 Participation in decision 1 2 3 4 5
4 Training 1 2 3 4 5
5 Job rotation 1 2 3 4 5
6 Education 1 2 3 4 5
7 Group-based work organization 1 2 3 4 5
8 Performance incentives 1 2 3 4 5
9 Communications of goals & norms 1 2 3 4 5
10 Re-organization activities 1 2 3 4 5
Human-index (average)
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Performance
Performance Much less than expected
Less than
expected
As expected
More than
expected
Much more than expected
1 Quality improvement
1 2 3 4 5
2 Productivity improvement
1 2 3 4 5
3 Inventory turnover
1 2 3 4 5
Performance-index (average)
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4. Data analysis & findingTwo longitudinal cases
1 2 3 4 5
Organisation
Technology1
2
3
4
5
9092
94
85 89
91Case A
Case B
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A survey of 22 companiesO = 3.175 + 0.283*T - 0.411*T2 + 0.091*T3, R = 0.78, PF=8.6 = 0.001
O
T
CIM
HIM CHIM
1 2 3 4 5
5
4
3
2
1
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Findings:
Companies tend to follow a technology-
oriented path at early stage of adopting new
technologies, then turn to organisational
dimension, reflecting a paradigm shift in
the utilisation of new technologies.
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5. Discussion and implications
• A research finding will trigger many questions.
• ?
• ?
• ?
• ?
• ?
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Review of manufacturing history
• <30s: Craftsman mfg
• 30s-70s: Mass mfg/production
• >70s: Japanese mfg: far east challenge• Lean production
• Agile mfg
• Flexible mfg
• CIM
• E-mfg
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CIM solution
• A world-wide campaign for CIM
• An interview of A Danish manager: why?
• Outcome: failure rate
• An alternative: CHIM
• A shift from CIM to CHIM– Why not CHIM at the beginning?
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Performance and position
2
2.5
3
3.5
4
4.5
CIM
CHIMHIM
Org.
Tech.
Performance
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Vision and Strategy
CIM
HIM CHIM
Technology
Organisation
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Review
O
T
CIM
HIM CHIM
1 2 3 4 5
5
4
3
2
1
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Review
1 2 3 4 5
Organisation
Technology1
2
3
4
5
9092
94
85 89
91Case A
Case B
CHIM
CIM
HIM
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Suggestions: which path to follow?
B-path
T-path
O-path
T
O
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6. Conclusions
• The balance between technology and organization
• The alignment among technology, organization and strategy
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The MOST model
S
TOM
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A framework
Steps Issues
Initiation & justification
Preparation & design
Acquisition & installation
Routinisation & learning
Strategic issues Goal specification
Elaboration of goals
Human resource strategy
(Goal change)
Technological issues
Objective of AMT
Preparation Design
Acquisition
Installation
Learning
Organisational issues
Conditions Labour Union Staffs
Work organization
Integration
(Recruit) Training
Learning Organisational changes
Managerial issues
Champion Management support
Communication Justification
Project team Cooperation with vendor
Site selection Participation Staff selection
Management of changes
Uncertainty Auditing
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7. Reference
1. Sun, Hongyi and J O Riis (1994) "Organisational, Technological, Strategic, and Managerial Issues along the Implementation Process of Advanced Manufacturing Technology: A General Framework of implementation guide", International Journal of Human Factors in Manufacturing, Vol. 4 (1), pp.23-36.
2. Sun, Hongyi and Jan Frick (1999) “A Shift From CIM to CHIM”, International Journal of Computer Integrated Manufacturing, Vol. 12, No 5. pp.461-469.
3. Sun, H., R. Hjulstad and J. Frick (1999) “Critical Success factors in implementing AMT by Norwegian companies", International Journal of Management, Vol.16, No.4, pp.548-556.
4. Sun, H. (2000) Current and Future Patterns of using Advanced Manufacturing Technologies, Technovation, The International Journal of Technological Innovation and Entrepreneurship, Vol.20, No.11, pp.631-641
5. Sun, H, Tian, Y. and Lu, L. (2001) "Evaluation of AMT in China SOE", I J OF AMT (forthcoming)
6. Sun, Hongyi (2001) Human Resource Development in Integrated Manufacturing Systems, Integrated Manufacturing System, Vol. 12, No.4 (forthcoming)
Sun, H and V. Patri (2001) The human side of holonic manufacturing system, TECHNOVATION (forthcoming)