T e c h n o l o g i c a l

BPT 3113 – Management of Technology

Chapter Outline• Introduction• Concept and Nature of Innovation• Types of Innovation• Sources of Innovation• Models of Innovation• Innovation Process• Influencing Factors

Lesson Outcomes• Explain the concept, components and

characteristics of innovation• Describe the models and sources of

innovation• Know the stages in the innovation process• Identify the factors that contribute to

successful innovation

Introduction• Managing technology involves continuous effort

in creating technology, developing novel products and services, and successfully marketing them

• It requires:Great creativity Investment in R&D

Labs Marketplace

Idea R & D Product

Concept and Nature of Innovation• Invention is an idea for a novel product or process• Innovation is the introduction of new products,

processes or services into the market place• Technological innovation begins with invention – a

sub-set of innovation• The process of technological innovation is a

complex set of activities that transforms ideas and scientific knowledge into physical reality and real-world applications - converts knowledge into useful products and services that have socioeconomic impact.

• Characteristics of organizational innovation are as follows:

• An innovation must be... A tangible product, process or procedure within an

organization New to the social setting within which it is introduced Intentional rather than accidental A challenging change Aimed at predicting benefit to the organization Public in its effects

Concept and Nature of Innovation

Components of InnovationPhysical,

Material or Hardware

• Computer• Machinery

Functional or Process

Mechanism• Software• Process

Reengineering

Knowledge Component

• Manual• Operating

instruction

Types of InnovationCompetence Enhancing vs. Destroying Innovation

Architectural Innovation vs. Component Innovation

Technical vs. Social Innovation

Radical vs. Incremental

Product and Process Innovation

Competence Enhancing vs. Competence Destroying• Competence enhancing innovation builds on existing

knowledge and skills• Enhancing or destroying depends on whose perspective is

being taken

Types of Innovation

DestroyingEnhancing

ArchitecturalInnovation that changes the overall design of a system / the way its components interact with each other

ComponentInnovation to one or more components that does not significantly affect the overall configuration of the system

Types of Innovation

Technical vs. Social

• Management, that is the ‘useful knowledge’ that enables man for the first time to render productive people of different skills and knowledge working together in an ‘organization’

Types of Innovation

Create an essentially

different kind of product – require

customers to radically change

their past behavior

Make small-step improvements to

the original technology and

design

Types of Innovation

Product Innovations• Improvements in existing products or creating entirely

new products

Process Innovations• Involve changes in existing process or adopting a entirely

new process

Types of Innovation

Sources of InnovationEconomic Environm

ent

Socio-Cultural

Environment

• Changes in Demographics

• Changes in Perception

• Innovative Users

Technological

Environment

• New knowledge• Convergence• Publications• Outside industries

• Fundamental components of the model are the same but the nature of the business may dictate variations in implementation techniques.

Models of Innovation

• Reveals the important role of entrepreneurship in connecting ideas to the marketplace

• The management role in the innovation chain emphasizes:– The need for stability and control at a certain phase of the

innovation process– A formalized managerial structure tends to produce incremental

and process innovations more than radical innovations

Martin (1994) illustrate the technological innovation process as a chain equation

Models of Innovation

Mills (1996) provided very simplified but interesting definitions for several components of the process of technological innovation known as minimalist definitions.– Science : How things are.– Technology : How to do things.– Management : How to get things done.– Technology management : Doing things.– Entrepreneurship : Doing things to make money– Innovation : Doing entrepreneurship

Models of Innovation

Innovation Process

8 Stages of Technological Innovation

8 Stages of Technological Innovation

1. Basic Research Increase our general understanding of the laws of nature Generating knowledge over a long period of time May or may not result in specific application

2.Applied Research Directed toward solving one or more of society’s

problems (specific problems) Eg.: research conducted to develop a drug for treating a

known disease3.Technology Development

Human activity that converts knowledge and ideas into physical hardware, software or service - prototype

4.Technology Implementation Set of activities associated with introducing a product

into the marketplace – success commercial introduction

5. Production / Manufacturing Set of activities associated with the widespread

conversion of design concepts or ideas into products and services – production control, logistic

6. Marketing Set of activities that ensures that consumers embrace the

technology – promotion, distribution strategy7. Proliferation / Diffusion

Strategy that ensure the widespread use of the technology and its dominance in the marketplace

Depends on methods of exploiting the technology8. Technology enhancement

Set of activities associated with maintaining a competitive edge for the technology - increases the life cycle of the technology

8 Stages of Technological Innovation

Critical Trajectories Impacting The Innovation Process

• Border crossings (national and sectorial)– Increasing of science-technology articles with

international co-authorship and also between academic and government

• Emergence of complex technologies– Fit to and cause from diverse demands, perspectives,

approaches and contexts• Age of knowledge and distributed intelligence,

KDI– Network of knowledge – integration of knowledge from

different sources and domains across space and time– Learning and intelligent systems - exploring the human

behavior in collaboration with machines– Computing challenges - exploit the numeric barrier

Influencing Factors1. The presence of scientific knowledge – technological

change is dependent on scientific discoveries2. The level of maturity of the underlying science – a wide

base of knowledge enhances technological development3. The type of technology and the phase of its life cycle –

innovation rate is high for emerging and growing technology

4. The level of investment in technology – technological development is connected to the level of R&D funding

5. The level of political commitment – the pace of innovation is sensitive to high level policy decisions

6. The ability to borrow advances from related technologies – advances in communication technology are dependent on satellite components

7. The diffusion rate and patterns - a technology that is widely diffused in the market may delay other technologies from entry

8. Recognition to Technology9. Time to Market10. Multiple-site continuous R&D11. Improvements in Communication12. The Push for Education13. Changes in Institutional Interactions14. Changes in Organizational Structure

Influencing Factors

Summary Technological innovation is a sub-set of

innovation Technological innovations may arise from

sources within or outside the organization Innovation process has been viewed as a

sequence of separable stages Two basic variations of innovation models are

technology push and market pull