Technology Management Ii

Technology Transfer Management Module 1. Signals for Change: 1.1 The Innovation Imperative New or improved products or services

The organization

New or improved processes

Maintained or improved competitiveness

1.1 The Innovation Imperative Getting ahead …. * keep abreast of developing technologies * identify threats to present products, processes and business * identify opportunities to “rewrite the rules of the game” * act on the opportunities – “ do unto others before they do unto you”

1.2 Understanding the challenge Signals about potential change 1. Emergence of powerful new technologies ??? 2. Increasing rate of technological process 3. Shortening technology life cycles ??? 4. Increasing trade liberalization 5. Increasing globalization ??? 6. Changing regulatory framework 7. Changing basis of competition ` ??? 8. Increasing sources of competition

1.2 Understanding the challenge It’s not only variety…. Keeping the customer satisfied with no price factors # design # quality # reliability # delivery # service # customization

1.2 Understanding the challenge Changes in regulation… Examples include: - anti-pollution legislation - health and safety legislation - promotion policies Making sense of it all…. The Firm Lower cost producers

1. Increasing import penetration

Quality becoming order- qualifying factor

2. Markets demanding more quality and variety 3. Increasing international competition 4. Lowering of tariff barriers

1.3 The trouble with technology… is that it does not stand still… Key trends: * emergence of major new fields * integrated and blurred boundaries * new organizational concepts * increasing rates of change * increasing linkages and alliances BUT technology is a key source of competitive advantage. Trends in technology… 1. Increasing rates of change- in technologies and products 2. Increasing expenditure on R&D 3. Increasing linkages and alliances to cope with complexity 4. New emphasis on parallel rather than sequential development

1.4 Building a toolkit… Tools to help pick up and process signals: - SWOT analysis - tools for forecasting - tools for getting close to the market - tools for technology mapping 1.5 Summary… This module has looked at: 1. The innovative imperative 2. The range of different sources making up the challenge 3. Tools and techniques for mapping 4. The importance of regular scanning and searching activity

Module 2 Technology Strategy: 2.1 Introduction to Technology Strategy This module covers… # how the firm analyses signals of potential threats and opportunities involving technological change # how it chooses between different potential options # how it plans for acquiring and implementing its technological choices Why technology strategy…? = technology is important… = … but success is not automatic = ‘the only certainty is that the future will be uncertain…!’ = increasing scale of technological development = increasing globalization = increasing complexity of technology = increasing competition

2.1 Introduction to Technology Strategy How does technology affect your business? Type of innovation Strategic Advantage Novelty Offering something which no-one else can Competence-shifting Rewriting the rules of the competitive game Complexity Difficulty of learning about the technology keeps entry barriers high Robust design Basic model product or process can be selected over an extended life reducing overall cost Continuous incremental Continuous movement of innovation the cost/ performance frontier

2.1 Introduction to Technology Strategy `What is technology strategy….? “..an understanding within a corporation-manifest amongst senior management, but diffused throughout the organization-of the importance and potential of technology for its competitive position; how in the future that potential is to be realised; and how this Complements the other aspects of strategy such as finance, marketing and personnel..” 2.2 Strategic Analysis The five forces model… Competitive rivalry between firms 1.Threats of substitutes 2. Bargaining power of customers 3. Threats of new entrants 4. Bargaining power of suppliers

2.2 Strategic Analysis Competitive profiling…. - focus the business - identify order winners - identify market requirements - identify internal performance - benchmark best competitor 2.3 Strategic Choice Fit with business strategy… Business strategy # which business are we in? # why? # what forces underly competition? ` # What is/could be our competitive advantage? # how do we compete?

2.3 Strategic Choice Implementation issues… 1. Is the chosen option likely to fit with the organization? 2. What can/must we do to ensure this? 3. Tools to help include simulation, feasibility studies and pilot implementation 2.4 Strategic planning How we make our strategic choices happen… * resourcing the technology * change management * implementation plan * dealing with issues arising after the change 2.5 Summary: This module has looked at… 1. Why we need a strategic approach 2. Strategic analysis-making sense of options 3. Strategic choice-deciding on options 4. Strategic planning- matching capabilities to plans 5. Tools and techniques

Module 3. Technology Acquisition 3.1

Technology Acquisition Options

Acquiring the technology to support the strategic plan… Internal sources - Tacit knowledge - Internal R&D External sources - Purchasing - Licensing Combination of internal and external - Reverse engineering - Strategic partnership

3.2 Choosing Appropriate Options Combination of internal and external sources… ADVANTAGES DISADVANTAGES * share risks * reduced technological growth * share costs * implementation problems * can result in exclusivity * have to share information * reduced time to market 3.2 Choosing Appropriate Options Choosing the best source option for your company Assess the advantages and disadvantages # company technological growth # exclusivity/competitive advantage # Company capability # Time to market # Risk of failure # Costs/ affordability Consider all and choose the best overall option

3.1 Technology Acquisition Options Options: Continuum from purely Internal to External

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1. Seizing tacit knowledge 2. Internal R&D 3. Internal R&D with networking 4. Reverse engineering 5. Convert Acquisition with Internal R&D 6. Convert Acquisition 7. Technology Transfer and Absorption 8. Contract R&D 9. R&D Strategic Partnership 10. Licensing 11. Purchasing 12. Joint venture 13. Acquisition of Company with Technology

3.3 Technology Acquisition Options Details Option 1- Seizing tacit knowledge Advantages & Benefits - knowledge exists in company. So low cost, low risk -Improve other processes - Don’t lose when person leaves - Improve employee moral Disadvantages & Risks - More people on learning curves - Documentation, training costs Cost factors -Extra staffing while learning -Documentation

3.4 Summary… There are internal, external and combination internal/external sources of technology Companies need to assess the advantage and disadvantages of all resources considering: - Company technological growth - Exclusivity/competitive advantages - Company capability - Time to market - Risk of failure - Costs/affordability -Appropriately-timed technology acquisition from the appropriate sources can have impressive results

Module 4 Implementing Technology 4.1 Introduction Concepts… 1. Technology implementation is a project with a beginning and an end 2. Effective, cross-functional core teams are needed to drive projects 3. Action-oriented phase reviews are needed to direct and empower teams 4. Concisely documented structured development process is needed to provide teams with a common road map 5. Integrated set of development tools and techniques improve project speed and efficiency

4.1 Introduction Technology Implementation Projects… 1. Technology Development - Managing Internal activities (R&D) - Managing External Technology Acquisition 2. Installing Developed Technology - Implementing a new product - Implementing a new process 4.2 Technology Development Projects… #Use a seven-stage process to 1. Drive out uncertainty 2. Have informed Decision Making * Idea * Preliminary Assessment * Concept * Development * Testing * Trial * Launch # At each stage, decisions are necessary

4.3 Developed Technology Projects Implementing developed-process technology… Different than technology development - different type of people - much less technical uncertainty - much more people uncertainty - training essential part of project - have to deal with continuing normal business Need a stage- gate process similar to technology development - distinct project with beginning and end - GO/NO-GO decision - schedule - responsibility

4.3 Developed Technology Projects Tools for developed technology implementation - Flow Chart - Project Milestone Status Report - Gantt Chart - Complex Network Diagram - S- Curve (Schedule and Costs) - Work-Breakdown Structure - Project Team Meetings - Communication to Rest of Organization Modify plans to fit reality 4.4 Implementation Problems Barriers to technology transfer… 1. Systems of promoters 2. Characteristics of the technology 3. Needs of the user 4. Capabilities of the R&D Technologies transfer success/ failures

4.4 Implementation Problems Technology development project problems… Understanding costs, risks, benefits Problems Solutions Costs, risks and benefits undefined Undertake activities to define involve marketing, manufacturing Researchers did not think in terms of Involve in strategic planning, Set goals, gates Insist on cost, time budgets Constantly revise estimates Manage project with stage-gate Managers do not understand Communicate risks, benefits Technology development Use stage-gate process Key to success Two-way communication and stage-gate process

Competitive and technology strategy- a case study of TELCO Read the case carefully and answer the following questions: 3. Describe in brief the growth of Indian automobile industry which can be divided into four phases 2. What was the driving force behind adopting strategy TELCO? What is a mix of the strategies used? 3. What are the basic elements of the competitive strategies of TELCO? 4. Describe in brief technology strategies used by TELCO to enter new markets or to derive economics of scope or to reduce product development cycle time? 5. In your opinion, whether the strategies adopted by TELCO for sustaining competitiveness after liberalization were relevant? Support your response with reasoning. 6. What are the reasons for success of TELCO’s technology and business strategy?

4.5 Project Organization Selecting project managers… - Management capability (KEY) - Technical talent - Ability to persuade and negotiate Project manager’s role… - Influence in selecting members of the team - Control over the project budget - Development of parts of the project plan - Accountability - Performance evaluation Developing effective project organization– building team - locate team members offices as close as possible to each other - Stress developing relationship - Recognize each member’s accomplishments - Assign tasks fairly

- Make task objectives realistic - Run team meetings effectively - Provide after-hours recreation opportunities 4.6 Parallel implementation Traditional linear approach to bringing new products to market…. Problems Concept -Length of time -Design ping-pong Design - Finger-pointing - Rivalry, lack-of-trust Manufacturing Distribution Sale

4.6 Parallel implementation Promises of concurrent (simultaneous) engineering… - Rapid time to market - Distinctive new products - Fewer engineering changes - Fewer manufacturing start-up problems - More manufacturability product . lower manufacturing costs - Quality excellence in process and product lower warranty costs 4.7 Change Management The elements of change… - Processes have to be designed,defined, piloted, tested, and refined - Staff have to be trained - Culture has to be reshaped -Organizational structure has to be modified

- Reward systems have to be updated - Affected customers and suppliers have to be consulted/informed - New management monitoring and control systems have to be designed and implemented 4.7 Change Management The realities of change– obstacles… Existing Infrastructure

Resistance Operational pressures Fatigue Failure Interruption Finance Complexity

Desired infrastructure

4.8 From Plan to Action Projection implementation… Project Launch - testing - preparation -roll-out - refinement Timing Life after the Launch -making it stick -program management - more on communication

4.8 From Plan to Action Preparation – Developed Technology - Communication to customers - Data migration - Physical layout - Work flow document - Publicize-internal and external Preparation – Developing Technology - Physical layout - Work flow documents - Publicize – internal 4.8 From Plan to Action Roll out - Migration or cut-over option - Timing - Maintain existing service

- Initial versus final staffing levels - Contingency plans - Wind –up the old - New measures, forms - Inspiration - Support from Process and Project designers 4.9 Summary Module 4 covered… - Implementing Technology Development Projects - Implementing Developed Technology Projects - Implementation problems - Project organization - Parallel implementation - Change management - From plan to action

Module 5 Learning to improve Technology Management: 5.1 Introduction: This module covers… # the overall process of learning and the need to develop a complete learning cycle. # specific tools and techniques to facilitate learning from technology management projects. # mechanisms for enabling the process to take place. 5.2 Learning to improve Technology Management: In order to grow organizations do not just have to build technological competence – they also have to learn how to do this effectively. * what are the best ways for acquiring and developing knowledge? * How can it be done with a chance of success?

# How can the learning processes around an organization be integrated and captured? These are all questions about managing the process of technological change. 5.3 Mechanisms for learning Different types of learning… so we have two types of learning to consider: (1) technological learning to capture and accumulate technological competence (2) organizational learning to develop routines and for managing the process of technological change

Technological competence -learning about technology

Management Competence - learning about how to learn

5.4 Continuous Improvement: Problem Solving Cycle: Identify

Review

Define

Implement

Explore

Select

5.5 Technology Management Audit: What to look for… - signals for scanning - technology strategy - acquisition of technology - implementation - learning - supporting organizational context- internal - supporting organizational context- external

5.6 Summary: This module has covered: * the need for learning and development of: - technology competence - ability to manage the process * the underlying learning cycle which must be developed * tools for enabling effective learning from technology management projects * mechanisms to support all parts of the learning cycle