Technology Innovation Process
Innovation Process
Idea Generation
Concept Definition
Market Analysis
Technical Analysis
Business Plan
Approval ( by Top Mgt.)
Development of prototype
Test Market & Analysis
Production and commercialisation
Disposal
Innovation as Concurrent Integration
Science
Societal
Needs
Engg.&
Technology
Innovation
Policy
Context
Natural
Capital
Economic
Context
3 Critical Trajectories Impacting Innovation Process
Border Crossings ( National and Sectorial )
Emergence of complex Technologies
Knowledge and Distributed Intelligence
( Knowledge networks, Learning systems, Research tools)
Competitiveness
Def: The process by which one entity strives to outperform the
other. ( Person, Org, Country, )
Factors: Desire to win, ability, commitment, availability of
resources, perseverance.
Indicators:
Standard of Living
Trade
Productivity
Investment
Technology
Strategy
Technology Strategy connection
Technology directly affects the competitive position of the firm
Technology competes for resources within the firm and resource
allocation and technology deployment is a challenge.
Technology requries capital to manage structure, processes and
information systems. Alterations involves huge outflow.
Technology decision have long-term impact on business.
Technology and Competitive advantage
Creating fundamentally new business discover new opp. by using
radical innovations and pioneering the market.
Altering the rules of rivalry Deployment of technology in products,
value chain may give an opp. To the firm to dominate the market.
Supporting existing business improvement in resources or process or
enhancing the product.
Technology Strategy
To what extent technology is relevant to the business ?
Which Business strategies require technology ?
Where will we get it ?
What are our core technologies for the business?
In which technologies should we focus our research ?
What new strategic options could they provide ?
Technology Strategy
Technology strategy is the revealed pattern in the technology choices of
firms. The choices involve commitment of resources for the appropriation,
maintenance, deployment and abandonment of technological capabilities.
1.
Kinds of Technologies
2.
Resource allocation
3.
Technological capability
4.
Includes hardware and software both
Technology Appropriation
Commitment to build technological capability. It embraces both
software and hardware dominant technologies.
Examples:
1. Acquisition of certain capabilities for survival . Airline Industry,
computer reservation systems have become integral part of value
chain.
2. Acquisition of technology for redesigning products or to develop new
products.
3. Acquiring completely new capabilities to for development of new
business.
Acquiring biotechnological capabilities to transform
agricultural sector / medical sector.
Technology Appropriation
Commitment to build technological capability. It embraces both
software and hardware dominant technologies.
Examples:
1. Acquisition of certain capabilities for survival . Airline Industry,
computer reservation systems have become integral part of value
chain.
2. Acquisition of technology for redesigning products or to develop new
products.
3. Acquiring completely new capabilities to for development of new
business.
Acquiring biotechnological capabilities to transform
agricultural sector / medical sector.
Deployment in value chain
Nearly for every activity inn value chain companies are using
technology. There are multiple opportunities available to make it faster/
smarter.
Activities are modified on radical or incremental basis. Linkages among
activities are also to be modified.
Examples:
1. Computer aided design combined with simulation / analysis.
2. Assembly shop : Movement + production + packaging
3. Product booking + feedback
4. Information system + planning
Deployment in products
Introduction of new products (Incremental innovation )
Radical innovations ( Drastically new products )
- by architectural innovations
- technology substitution
Examples:
Television technology, DTH, Networking, banking services.
Designing Technology Strategy
Environment
Firms
Position
Competitive
Domains
Strategic
Positioning
Technological
Environment
Resource
capability
FOCUS
Technology
Strategy
Competitive
Advantage
Competitive Domains of Industries
Capacity
Driven
Large Capital
Investments
Compete on
Price,
Expenditures and
R& D
Customer
Investment in
Production, Customer
Relationship
management
Fragmented, More
Rivalry
e.g. FMCG
e.g. Steel
Industry
Driven
Knowledge Driven
Investment in
R&D
Compete on Inventions
and Innovations
Uniqueness is
important
e.g. Pharma
Types of Technology Strategies
Technology Strategy Types depends on two dimensions viz. Scope and
Leadership
Technology leadership strategy :
-Technology as a primary driver for competitive advantage
-Maintaining both development and deployment continuously
Niche Strategy :
- focus on Critical technology only.
- selective development
- deployment towards exploiting strength in selective area
Follower Strategy :
- Focus on deployment
- Technology is not primary driver for competitive advantage
- Risk avoidance
Technology rationalisation :
- Maintaining adequate technology level only
- Focus on other aspects of value chain to compete in market.
Technology leader views appropriation as a future source of competitive advantage
whereas Follower focus on acquisition of capabilities as sub-ordinate to their
corporate strategy.
Firms following niche strategy adopt innovative first to Market strategy whereas
leaders often adopt second to market with leapfrog or superior version, etc.
Framework for strategy formulation
Environmental
Assessment
Technology intelligence
Profiling competitive domains
Identifying profit sites
Competitive
position of the
Firm
Technology inventory
Profiling firms position
Charting Technological
requirements
Strategic
Diagnosis
Formulation
of
Technology
Strategy
Mode of
implementation
Implementation
IP Strategy
Organisation
