MBA-2nd SEMESTER
TECHNOLOGY AND INNOVATION.
CIA -3 Group Assignment
“Topic: A Case Study of a Technology Acquisition and Assimilation
Methodology of a Broadcast Company in the Philippines ”
SUBMITTED IN PARTIAL FULFILMENT FOR
THE AWARD OF DEGREE IN
MASTER OF BUSINESS ADMINISTRATION
TO
CMS BUSINESS SCHOOL
(JAIN DEEMED TO UNIVERSITY)
SUBMITTED TO: Prof. Srinivas Rao.
S. NO STUDENT NAMES USN
1. SHIVANI SWAIN 22MBAR0607
2. RAHUL BORAH 22MBAR0612
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TABLE OF CONTENTS
S. NO PARTICULARS PAGE NO.
1. INTRODUCTION 3-4
2. BACKGROUND 5-6
3. EVALUATION 7-9
4. FINDINGS/ POTENTIAL SOLUTIONS 10
5. RECOMMENDATIONS 11
6. REFRERENCES 12
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INTRODUCTION
The L Corporation, a company in the broadcast industry, has launched a technology acquisition
and assimilation initiative aimed at implementing an industry best-practice Enterprise Service
Management System (ESMS). The system will consolidate the service management and
common processes of different companies and business units under a single ticketing platform.
This move will improve the availability, reliability, and security of mission-critical services
while managing processes through automated workflows that would result in faster turnaround
time. This paper assesses whether L Corporation's methodology on technology acquisition and
assimilation is in line with the industry's best practices and standards, identifies the
organization's capability based on the ladder of firm-level technological capabilities, and
determines the perspective taken into consideration in the technology implementation. The
paper acknowledges the increasing dependence of organizations on technology, especially with
the emergence of the Internet of Things (IoT), where more objects are embedded with sensors,
and the ability to communicate is gaining momentum. With the potential benefits that
technology offers when correctly managed, it becomes imperative for organizations to establish
a cohesive technology management discipline that manages the end-to-end lifecycle of
technology. Given that L Corporation's core competency is content creation in the broadcast
industry and not technology creation, this paper examines how the organization's technology
acquisition and assimilation strategy aligns with industry best practices and standards.
The L Corporation's technology acquisition and assimilation initiative aimed to implement an
Enterprise Service Management System (ESMS) is an example of how organizations are
becoming more reliant on technology to achieve their strategic objectives. In today's world,
technological advancements and digital transformation have led to significant changes in the
way businesses operate. The Internet of Things (IoT) has particularly played a significant role
in this, with more objects being embedded with sensors, and the ability to communicate gaining
momentum. As a result, there is a need for organizations to establish a cohesive technology
management discipline that manages the end-to-end lifecycle of technology.
L Corporation is a content creation company in the broadcast industry that depends on
technology for efficient operations. However, the organization is not a technology creator but
rather a technology user, making external technology acquisition essential. The organization's
move to implement an ESMS is aimed at consolidating the service management and common
processes of different companies and business units under a single ticketing platform. This
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move will lead to improved reliability, security, and availability of mission-critical services,
and managing processes through automated workflows that would result in faster turnaround
time. To assess L Corporation's methodology on technology acquisition and assimilation, this
paper uses Posadas' (2013) Life Cycle for a Technology Procurement Project framework. This
framework provides a structured approach to technology procurement, including the pre-
procurement, procurement, and post-procurement phases. By using this framework, the paper
aims to determine whether L Corporation's methodology aligns with industry best practices
and standards.
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BACKGROUND
The L Corporation is a broadcast industry company that has launched an initiative to implement
an Enterprise Service Management System (ESMS) to consolidate its service management and
common processes. The ESMS technology solution will monitor IT assets, manage software
licenses, improve availability, reliability, and security of mission-critical services, and manage
processes through automated workflows. The organization's technology acquisition and
assimilation methodology follow the industry's standards and best practices, which can be
concluded using Posadas' Life Cycle for a Technology Procurement Project framework. The
organization's ability to assemble a complex technological system or commission a production
facility on a self-reliant basis puts it at the Integrative or Investment Capability Level of
Posadas' ladder of firm-level technological capabilities. The key success factors set by the
Project Team for the whole initiative, including the agreements set forth with the contracted
technology vendors, were derived from the measure of effectiveness in terms of the
organization's social system functioning. In the era of Internet-of-Things (IoT), the dependency
of organizations on technology becomes more and more inevitable, and it is imperative for
organizations to establish a cohesive technology management discipline that will properly
manage the end-to-end lifecycle of technology. IT can bring greater efficiency in organizational
operations, better working environments, and effective decision-making processes. Despite
being a technology user and not a technology creator, L Corporation is enabled through external
technology acquisition. This case study will assess whether L Corporation's methodology on
technology acquisition and assimilation is on a par with the industry's best practices and
standards, identify the organization's capability based on the ladder of firm-level technological
capabilities, and identify the perspective taken into consideration in the technology
implementation.
The case study also describes the process of initiating and planning a technology acquisition
project within a company called L Corporation. The company had a business need for a
technology solution that could address their requirements, and the project team was formed to
develop a solution that met the business needs. The project plan included defining the expected
improvements, setting Key Performance Indicators (KPIs), assessing risks and impact, and
obtaining stakeholder and sponsor approvals. The project team created a Request for Proposal
(RFP) document, which contained all the necessary technical and functional requirements for
the technology solution to be acquired. The RFP was then distributed to potential vendors, and
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the procurement team followed their standard process of accepting proposals and evaluating
the product. The objective of this process was to ensure that L Corporation acquired the best
technology solution that met their business needs and provided value to the company.
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EVALUATION
A. Initiating and Planning the Technology Acquisition:
The initiation phase of a project is a critical stage where the business need is defined, and a
plan is created to address the need. This phase also involves identifying and assessing risks and
impacts to ensure that normal business operations are not affected during implementation and
transition. Additionally, key performance indicators (KPIs) are established to measure the
success of the project.
Once the project plan is approved, a Project Manager is appointed, and a project team is formed.
The Project Manager is responsible for organizing and coordinating all activities needed to
deliver the project, including drafting the work plan, creating the Work Breakdown Structure
(WBS), and designating personnel comprising the project team.
The creation of the Request for Proposal (RFP) document is a crucial activity during the
initiation phase. This document outlines the business, technical, and functional requirements
needed from the technology solution to be acquired. The RFP document also includes other
factors that the project team deems necessary, such as a list of project implementations done in
the Philippines and/or abroad, financial statements in the last three years, presence of local
support, integrability to L Corporation’s infrastructure, and technology roadmap.
To ensure that the RFP document reflects the best-of-breed list of items available in the market,
the project team may send out a Request for Information (RFI) invitation to potential vendors.
This activity enables the team to come up with a list of best-of-breed items for the RFP
document. The team then identifies the must-haves and nice-to-haves from the requirements
and creates a final RFP document.
The Procurement Team is responsible for executing the standard process for the RFP
document. This includes distributing the RFP document to vendors, conducting a pre-bid
clarificatory plenary meeting with all the vendors, accepting proposals from vendors with a set
deadline and format of the proposal, forwarding the Technical Bid to the Project Team, and
keeping the Commercial Bid for evaluation.
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B. Procedures for Evaluating and Selecting Technology Supplier:
The process described in the case study is a typical vendor evaluation and selection process,
which L Corporation follows to select a technology solution vendor.
The process starts with the distribution of the RFP document by the Procurement Team, which
includes the must-have requirements that the technology solution should fulfill. All the vendors
who are interested in bidding on the project attend a pre-bid meeting where the RFP document
is explained in detail, and they can ask questions to clarify their understanding.
Once the vendors submit their proposals, the Project Team evaluates and scores them based on
the RFP requirements. The vendors who meet all the must-have requirements are shortlisted
for further evaluation, which includes a Proof of Concept (POC) demonstration of their
product.
After the POC, the vendors are asked to nominate reference sites where L Corporation can
discuss the technology solution with the vendor's existing clients and understand the
improvements and issues encountered in using the technology.
The Project Team then scores and evaluates the vendors based on the POC and reference site
visit results. The top three vendors are shortlisted, and their commercial proposals are
forwarded to the Procurement Team for negotiation.
This process ensures that the selected vendor is capable of delivering the minimum
requirements and offers the most competitive commercial proposal. If no vendor meets the
must-have requirements, the bid is declared failed, and the Project Team revisits the RFP
document and the process starts again.
C. Strategy and Tactics in Negotiating Technology Acquisition Contracts:
The process of selecting a vendor for a technology solution involved inviting vendors to submit
commercial offers in a sealed bid form. Only proposals from vendors that were shortlisted and
endorsed by the project team were opened. The shortlisting process involved evaluating
whether vendors met the minimum requirements and included at least two vendors for leverage
during commercial negotiations. Commercial offers included payment options and value-added
services, such as training and support. The procurement team ensured a level playing field by
requesting all vendors to include value-added services being offered by other vendors. The
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project was awarded to the vendor with the most competitive and compelling final commercial
offer with the revised additional value-added services.
D. Procedures, Techniques, and Problems in Implementing Externally Acquired Technology:
Implementation and System Integration are crucial stages in any technology acquisition
project. The internal implementation and roll-out project team resources are monitored by the
Project Team to ensure a smoother roll-out and knowledge transfer for the resources who will
eventually manage the technology solution. The implementation process starts with a detailed
data gathering stage for the Low-Level Design (LLD) which involves getting relevant inputs
from all possible sources and project stakeholders. A sign-off of the Business Requirement
Document (BRD) by the process owners and steering committee is required before proceeding
to the development stage. Knowledge transfer is an important component during the
development stage, and the organization's project implementation approach requires System
Integration Testing (SIT) and User Acceptance Testing (UAT) before any module is migrated
to the Production environment. Process owners and users who are involved in UAT are required
to sign-off after a successful UAT activity, after which end-user training sessions are
conducted.
E. Policies, Procedures, and Techniques for the Absorption and Mastery of the Externally
Acquired Technology:
The technology acquisition initiative for L Corporation considered the three elements of
technological capabilities - embodied, non-embodied, and organizational integration - to ensure
maximum benefits for strategic competitiveness. Organizational integration was a must-have
to ensure that the new technology solution can integrate with the existing infrastructure.
Compatibility checks were conducted early on to identify all data sources and systems that will
receive an output from the new solution. Knowledge transfer, including walk -thru learning
during development, classroom training, and documentation, was covered by the KT agreement
with the vendor. The acquisition also included a maintenance agreement for warranties,
upgrades, and bug fixes. After UAT and "go-live," there was a handholding period where L
Corporation's resources operated under the supervision of the technical experts of the solution
provider. Continual refresher trainings were done for major system enhancements and
upgrades, and the resources of L Corporation handled succeeding expansion and roll-out of the
technology solution.
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FINIDINGS/POTENTIAL SOULTIONS
Based on the information provided in the case study, some possible findings could include:
L Corporation has successfully implemented a new technology solution through
effective communication and change management plans, as well as a strategic and
phased implementation plan.
The company follows industry standards and best practices for technology acquisition
and assimilation, using a framework that takes into account the socio-centric
perspective and the organization's social system functioning.
L Corporation is able to assemble complex technological systems and commission
production facilities on a self-reliant basis, indicating an integrative or investment
capability level in terms of firm-level technological capabilities.
The company's approach to technology acquisition and assimilation involves learning-
by-doing, where external technical knowledge is combined with experience-derived
knowledge for successful technological change.
The success of L Corporation's technology acquisition and assimilation initiatives is
measured using key performance indicators identified in the project plan.
The company invests in technology acquisition as a means of sustaining competitive
advantage and addressing business needs, making it a technology operator or user rather
than an innovator.
The methodology and processes in place at L Corporation allow for proper scheduling
and consideration of organizational differences, but may require adjustments in human
resource management specifically regarding manpower allocation and employee
training.
Overall, L Corporation's approach to technology acquisition and assimilation appears to be
effective and aligned with industry best practices, allowing the company to maintain a
competitive edge in the marketplace.
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RECOMMENDATIONS
Based on the case study, some recommendations for L Corporation are:
Increase focus on innovation: While L Corporation has been successful in acquiring
and assimilating new technologies, there is still room for the company to focus on
innovation and creating new technologies. This can help the company stay ahead of the
competition and continue to offer new and improved services to its customers.
Foster a culture of continuous learning: While L Corporation has embraced the
"Organizational Learning" approach, it can still do more to foster a culture of
continuous learning. This can include providing training and development opportunities
for employees, encouraging collaboration and knowledge-sharing across departments,
and regularly reviewing and updating the company's technology strategy.
Improve stakeholder engagement: While the project team did a good job of
communicating and managing change during the technology implementation, there is
still room for improvement in stakeholder engagement. This can include involving
more stakeholders in the technology procurement process, such as end-users and
business units, and ensuring that their needs and requirements are considered.
Consider a more strategic approach to technology procurement: While L
Corporation's current approach to technology procurement is effective, the company
could benefit from a more strategic approach. This can include conducting regular
technology assessments to identify areas where the company could benefit from new
technologies, and developing a more formalized process for evaluating and selecting
technology vendors.
Enhance knowledge transfer: While L Corporation is already doing knowledge
transfer sessions with its technology vendors and employees, it can still do more to
enhance knowledge transfer. This can include documenting best practices and lessons
learned from previous technology implementations, providing more formalized training
and development opportunities for employees, and encouraging knowledge-sharing
across departments and business units.
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CONCLUSION
In conclusion, the successful technology acquisition and assimilation of L Corporation is a
testament to the effective implementation of industry standards and best practices. The strategic
phased implementation plan, effective communication and change management plans, and
consideration of the socio-centric perspective were key factors in ensuring a smooth
implementation process. Additionally, the organization's Integrative or Investment Capability
Level highlights its ability to self-reliantly assemble complex technological systems or
commission production facilities. Through the utilization of system integrators and knowledge
transfer sessions, L Corporation is equipping its employees with the necessary expertise to
support and enhance the acquired technology. Overall, this successful initiative sets a precedent
for future technology acquisitions and assimilations within the organization.
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REFERENCES
Adapted from Kano, Noriaki, Shinichi Tsuji, Nobuhiko Seraku, and Fumio Takerhashi,
"Miryokuteki Hinshitsu to Atarimae Hinshitsu (Attractive Quality to Must-Be
Quality)," Japanese Society for Quality Control, 1984.
McKinsey Quarterly. (2010). The Internet of Things. Retrieved from
http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_internet_of_thin
gs
Posadas, Roger. (2013). Lecture 2B: Introduction to the Field of Technology
Management [PowerPoint slides]. Quezon City, Philippines: University of the
Philippines.
Castells, M. (1996). The Rise of The Network Society, Oxford: Blackwell
Posadas, Roger. (2013). Lecture 9A: Technological Capabilities Firm Level
[PowerPoint slides]. Quezon City, Philippines: University of the Philippines
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