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STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 12 Strategic Issues in Managing

Technology and Innovation

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Executive Fear over loss of Innovation

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Executive Fear over loss of Innovation

A survey of business executives conducted by fortune with the consulting firm integral, inc. Revealed the percentages of those responding either agree or strongly agree to the following five statementsYour company has recently lost relatively low – value customers in small market niches or low – endmarket segmentsYour organization passes up groth opportunities it would have pursued when the company was smaller because the opportunities are now, too small to be interestingThere is a disconnect between the kind of innovations your frontline troops suggest and the types of innovations upper management invests inWhen your organization sees a potentially disruptive technology, it defines it as a technical problem (will our customers accept the product) instead of a market problemNew entrants have exploited opportunities where uncertainty over market size and customer needs resulted in inaction by your company

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Technology and Innovation

The Role of Management –

–Innovation–Management of technology

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Technology and Innovation

Environmental Scanning –

–External Scanning•New developments in technology

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Technology and Innovation

Impact of Stakeholders on Innovation –

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

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Technology and Innovation

Impact of Stakeholders on Innovation –

–Market Research–New Product Acquisition

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Technology and Innovation

Environmental Scanning –

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

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Technology and Innovation

Environmental Scanning –

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

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Product & Process R&D Innovation Life Cycle

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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

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Technology and Innovation

Intellectual property –

–Special knowledge used in new product or process

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Technology and Innovation

Technological Competence

–Absorptive capacity–Technological competence

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Categories of Innovation

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Product/Market Evolution Portfolio Matrix

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Stages of New Product Development

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Technology & Innovation

Innovative Organizations –

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

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Designs for Corporate Entrepreneurship

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Evaluation and Control

Techniques –

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

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House of Quality