Elements Of

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U N I V E R S I TAT I S O U L U E N S I S

ACTAC

TECHNICA

U N I V E R S I TAT I S O U L U E N S I S

ACTAC

TECHNICA

OULU 2010

C 362

Kari Sahlman

ELEMENTS OF

STRATEGIC TECHNOLOGY

MANAGEMENT

FACULTY OF TECHNOLOGY,

DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT,

UNIVERSITY OF OULU


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A CTA UNIVE RS ITA T I S O UL

C Techn i c a 36 2

KARI SAHLMAN

ELEMENTS OF STRATEGIC

TECHNOLOGY MANAGEMEN

Academic dissertation to be presented with

the Faculty of Technology of the Universitypubl ic defence in Tnning-sal i (Audit

Linnanmaa, on 12 August 2010, at 12 noon


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Copyright 2010

Acta Univ. Oul. C 362, 2010

Supervised byProfessor Harri Haapasalo

Reviewed by

Professor Dilek CetindamarProfessor Saku Mkinen

ISBN 978-951-42-6249-4 (Paperback)ISBN 978-951-42-6250-0 (PDF)

http://herkules.oulu.fi/isbn9789514262500/ISSN 0355-3213 (Printed)

ISSN 1796-2226 (Online)http://herkules.oulu.fi/issn03553213/


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Sahlman, Kari, Elements of strategic technology management

Faculty of Technology, Department of Industrial Engineering and Management,

Oulu, P.O.Box 4610, FI-90014 University of Oulu, Finland

Acta Univ. Oul. C 362, 2010

Oulu, Finland

Abstract

In an increasingly complex economic and social environment, high technology c

facing accelerating technological development and global technology-based compe

the critical role of technology in a competitive environment, strategic technology mimportant for enterprises. For the long-term success, companies must develop and

technological capabilities to create internal and external impacts within an amb

economic context.

In the absence of commonly agreed frameworks, elements of strategic technology

are discovered in this dissertation. The research is conducted in the context of hig

product companies, to develop a framework based on literature findings, and

qualitative information on enterprise practices.

For the framework development, integrated management theory is applied

technology management in strategic dimension. The framework consists ofstructu

and impacts categories, each having six main elements which contain several sub-c

In the research, perceptions of enterprise practitioners indicated that the entire fie

technology management is confusing and diversely practiced. The contribution of th

is benefiting practitioners by providing an outline to assist in defining and de

practices. For the main theoretical contribution, the framework unites strategic

organizational management, and technology management concepts in enterprise co

As a practical implication, it is suggested that companies should consider est

integrating strategic technology management as a distinguishing managerial discip

other organizational functions. Enterprises should consider defining and developing

structures and objectives for strategic technology management, to proactively mana

technology for competitiveness of the enterprise, and for sustainable developmen

economic environment.

In conclusion, the framework provides for scholars and practitioners a logica

elements of strategic technology management.

Keywords: strategic management, technology management


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To


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Preface

The motivation for a research has to stem from the needs of

companies and institutes involved.

In the autumn 2007, the researcher was assigned responsibility o

technology and architecture management practices for product te

Nokia Siemens Networks. The company was established in the spri

merger of Nokia Networks and Siemens Communications. The new cto start consolidation of the businesses and the companys resources

competitive business environment. The intent was to leverage the po

products and technologies as efficiently and effectively as possible. C

the researchers principal need was to gain comprehensive understan

strategic technology management is.

There are several means to acquire knowledge: learning by doi

training, reading books and conducting research. For the researche

evident that there is no single solution that would sufficiently serve

gaining knowledge on technology management. Therefore conductin

research, and making a doctoral thesis on strategic technology m

appeared feasible to increase personal knowledge on the subject.

For publicly funded institutes, like University of Oulu, it is

interact with the society to create innovations, promote competenc

and improve competitiveness of companies. Performance of un

measured, among other things, by the number of yearly graduates an

of publications. In this respect, conducting research provides oppo

publications, and also a possibility to involve the researcher in

management related courses to provide study topics and exercises for

The purpose of this dissertation is to serve the above mentioned dand to contribute to discussion on strategic technology management.


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Acknowledgements

Actually, it took some 23 years to complete this dissertation, for whic

PhD studies were remarkably intensive. Continuous learning and in

technology management related duties at Nokia and Nokia Sieme

since 1987 can in this respect be regarded as practical universit

Therefore I appreciate guidance, support and contribution of all m

colleagues and team mates during this time. For the latest stint, committed myself for three years, I wish to thank Lauri Oksan

Research at Nokia Siemens Networks, for a challenging task that he

me, and enabled participation in scientific conferences.

For the opportunity and support during my studies at the De

Industrial Engineering and Management in University of Oulu, I tha

Pekka Kess and all the personnel at the department. I thank Pe

providing me insights into strategic management.

For conducting the studies, I am indebted to my supervisor Pro

Haapasalo. We had all the time a grand plan, extremely focused para

ongoing, and we were able to proceed steadily in a timely mann

waste. To this process of becoming wiser as Harri phrases it Harr

with his respectable devotion, extraordinary conceptual talent and e

of life. The entire thesis process was really demanding, rewarding an

Thank you Harri, very much indeed.

I highly respect Dr Mike Gregory and Dr Robert Phaal from the U

Cambridge, for their ideas and work on technology management proc

During my one month study leave, I was able to make a short visit to

to work on a joint paper with Rob and his colleagues. The stud

financially supported by the Finnish Doctoral Program in Industrialand Management, which I sincerely acknowledge; it was a very mot

productive period. I also want to thank Dr Kari Hakkarainen fo

discussions on technology management. In the summer 2007,

enjoying the extra 2 weeks of summer holiday, granted after


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representatives who took part in the interviews deserve thank

time and knowledge. The almost 50 students, taking passignment during the technology management courses in the

the spring 2009, were of invaluable help in carrying out a

interviews. I want to thank warmly all of you for the good wo

For indispensable advice on writing journal papers, I wa

Editors Dr Binshan Lin from Lousiana State University,

Phusavat from Kasetsart University, Bankok, Thailand; Gunasekaran from University of Massachussets, USA;

reviewers of the papers for their constructive comments.

In many exhaustive but effective reviews Dr Pekka Belt

and Dr Matti Mttnen, the three musketeers from Universi

their insights into writing a dissertation summary. We revie

things, we read between the lines, and we even paid attentio

the dot ofet al., whether it is written in italics or in regu

practice definitely advanced the thesis summary writing

Janne and Matti, your contribution was priceless.

Pre-examiners of the thesis summary, Professor Dile

Sabanci University, Istanbul, Turkey and Professor Saku M

University of Technology, Finland also deserve many than

feedback to improve the summary.

I would like to thank my wife Jaana and our delightful b

daughters Marjo and Marjaana, as well all my relatives a

encouragement and support. Special thanks to my friend Pek

neighborhood, I always kept in mind one of the first comm

make a PhD: If you start it, you will surely finish it.

With all the good spirit enjoyed, one starts to think thawere right on their assumption that out there exists somethi

fun. And this something, undoubtedly, has incarnated in t

faithful companion, from water fetching agile tracking dog, o

Bacchus.


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List of original publications

This dissertation is based on the following publications:

I Sahlman K & Haapasalo H (2009) Elements of strategic management of

conceptual framework of enterprise practise. International Journal of Ma

Enterprise Development 7(3): 319337.

II Sahlman K & Haapasalo H (2009) Perceptions of Strategic Ma

Technology in Small High-Tech Enterprises. PICMET 2009 Proceeding

Portland, Oregon USA: 93104.

III Sahlman K & Haapasalo H (in press) Objectives of strategic ma

technology in a conceptual framework of enterprise practise. Internatio

Business Innovation and Research.

IV Sahlman K & Haapasalo H (in press) Impacts of strategic management

in a conceptual framework of enterprise practice. International Journal

and Learning.

The article I is already published, and the articles III and IV have go

double blind review process and have been accepted for Journal publ

forthcoming issues.

The article II has been published in the Conference Proceeding

International Conference on Management of Engineering and

(PICMET) in August 2009.

The author of this dissertation has been the main author of all

publications. The co-author has been in the role of reviewer and ad

structure, the logic and the contents of the papers as the super

dissertation and research work.


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Table of contents

Abstract

Preface

Acknowledgements

List of original publications

Table of contents

1 Introduction 1.1 Context and purpose of the research .......................................1.2 Scope and objectives ...............................................................1.3 Research approach ..................................................................1.4 Research process .....................................................................

2 Theoretical background 2.1 Strategic management .............................................................

2.1.1 Value creation and business model ...............................2.1.2 Strategy formation and execution .................................2.1.3 Competitive strategies ..................................................2.1.4 Technology strategy ......................................................

2.2 Organizational management ....................................................2.2.1 Key concepts of organizational management ...............2.2.2 Integrated management concept ...................................

2.3 Technology management ........................................................2.3.1 Key definitions .............................................................2.3.2 Schools of technology management .............................2.3.3 Technology management frameworks ..........................

2.4 Theoretical synthesis ...............................................................3 Research contribution 3.1 Framework for strategic technology management ..................

3.2 Structures category of the framework .....................................3.3 Objectives category of the framework ....................................3.4 Impacts category of the framework .........................................


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5 Summary References Appendix

Original publications


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1 Introduction

1.1 Context and purpose of the research

During the past century, competitive, economic and social envi

become increasingly complex due to rapid proliferation of info

accelerating technological development. Already one hundred years

Schumpeter (1961) proposed that technological change inducesevolution, fusion, and disruption of industries over time. Especi

technology industries, global technology-based competition forms

managerial challenge for enterprises. The fundamental question

strategically manage product offering, value system, product

competences and capabilities in the rapidly changing business and t

environment.

The operating environment is perceived as turbulent and c

technology has a significant role in productivity, innovations and bu

development. Companies are constantly struggling in adapting to

technology changes, and optimizing investments for new opportu

marketplace. Therefore, the underlying need for companies is the

creating and executing business and technology strategies for value

sustained competitiveness.

Enterprises have evolved from single function optimization of

marketing or research & development (R&D) to a multifunctio

orientation. The need to optimize the companys return on investm

performance as a whole, calls for strategic management capability in

(Ansoff 1979, Ansoff 1987.) Several schools of thought have emerg

aspects of market dynamics, competitive positioning and planningformation (Minztberg 1978, Porter 1980). The right strategy is

enterprises because the distinctive competencies and capabilities

created and developed through the execution of the strategies, d

competitive position and success of enterprises in the marketplace (L


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Linking strategic business management with technolog

into managerial challenges in enterprises, due to the disciplines. The attribute of strategic was added to tech

during the 80s by several authors (e.g. Bhalla 1987, Anso

Strategic technology management is expected to offer a p

managing ambiguity, complexity and business dynamics

technology. Consequently, a holistic concept of strategic tech

is needed to provide clarity for practitioners in the management. Thus, researchers must be able to combine

thinking and the demands of modern high technology industr

In this dissertation, the term strategic, in the con

management, is used to emphasize the linkage of technol

strategic management. Strategic management provides the

strategic technology management, which is the focus

Furthermore, the term strategic is used to distinguish

management as an own discipline separate from, for example

and innovation management which embed technology manag

topic is handled in the strategic dimension of the structure, pr

management theory of Bleicher (2004). Thus, strategic techn

positioned apart from normative management and operative m

In companies, technology management is often e

management, which is increasingly incorporating strategic

(e.g. Drejer 1997, Edleret al., 2002). Still, the main activity o

is to organize resources and manage operational R&D wo

decades, innovation management has become an extensive r

its own. Innovation research has created knowledge on th

itself, but does not provide a comprehensive framewmanagement practice. The major concern in innovation ma

recognize the value, and how to assimilate and apply knowle

products (e.g. von Hippel 1988, Pavitt 1990, Cohen & Levin

2001). Technology management relates to innovation m


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Profound understanding and capabilities on technology man

crucial for the companies, due to the critical role of technology in execution of company strategy (e.g. Burgelman et al. 2001, Chiaro

Dodgson et al. 2008). Scholars in the field of strategic mana

technology management have been studying technology managemen

years as a discipline of its own. Nevertheless, there are no commo

theoretical and practical frameworks for technology management

1997, Phaal et al. 2000, Phaal et al. 2004, Brent & Pretorius 2008, Cal. 2009b). Technology management is typically not organized in en

distinguishable managerial function, either.

The purpose of this research is to contribute to the discussion

technology management.

Technology management is related to several scientific discip

2000, Dodgson et al. 2008). These relations and the role of tec

exemplified, for example, in research of the following areas:

social and economic objectives, outcomes and evolution of indus

organizational structures and strategic management of enterprises

knowledge, information, innovation and engineering managemen

engineering practices, methods and tools

This dissertation on strategic technology management is positionediscipline of industrial engineering and management. The context of

has a specific focus on producttechnology within high technology en

1.2 Scope and objectives

Competitive environment of enterprises involves increasing comto rapid changes in economic, social and technological circumstance

effective capability on strategic technology management is crucial fo

Current state-of-practice within high technology enterprises indicates

in knowledge and practices of strategic technology managemen


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In the absence of commonly agreed frameworks for

management, the intent of this research is to create a thdescribes elements of strategic technology management. Fo

research, and to outline the scope of the research,

management is defined as:

Strategic management of technology is manageme

activities, interacting with companys technology infras

economic environment, to contribute to formulation acompanys strategy. (Sahlman &Haapasalo 2009a)

Strategic technology management activities have to be linked

the company. The purpose is to combine technology and b

the scope of strategic management. Ordinary strategic m

typically focus on business and product aspects of a compan

technology management emphasizes the connection and

business aspects to technology subjects. The research obj

theoretical model that distinguishes elements of strategic tech

while enabling integration of the elements within the

management in an enterprise.

The research results are assumed to be applicable, i

technology enterprises. Thus, the framework is meant to aconscious and systematic development of strategic tech

practices in enterprises. The framework is also intended to p

for further amendment by scholars in the field. The gene

research can be summarized as an intention to create a theor

provide structure to the topics of strategic technology mana

presentation, communication and discussion among practitionIn order to derive adequate research questions, suitab

needed to dismantle the research problem into relevant

management. Obviously, there would have been several alter

for the study, for example, process view, capability view, an


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The integrated management model contains normative, s

operative management viewpoints to structures, objectives and beorganization. Conceptually, it provides vertical integration of normat

and operative dimensions, and horizontal integration of structures, o

outcomes of the operational activities. The principles of th

management concept are described in more details in Chapter 2.2.2.

This kind of integrated management viewpoint entity exists in o

theory, but does not exist in technology management to comprehensithe issues. Consequently, the integrated management model of Ble

was selected as the starting point for the framework development. In

the focus is to discover elements of technology management in

management dimension. From a technology management point of vie

management is assumed to contain management of operative activitie

the actual tasks of technology management, for example, man

roadmap creation, technology forecasting activity, or creation of

strategy. Normative management dimension is assumed to conta

institutional and cultural factors and policies related to technology m

for instance, whether a company has its own R&D, structure for cen

decentralization, policies towards intellectual property acquisition, pr

licensing, fostering innovative culture, or development and utilizatio

processes. Normative and operative dimensions are excluded from

this research.

Accordingly the research problem was approached through

questions listed in Table 1.

Table 1. Research questions and related articles.

RQ#Research questionRQ1What are the elements of strategic technology management and how to categorize th

into a framework?

RQ2What are the structures of strategic technology management as elements of theframework?


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management framework. Theoretical contributions and man

of these articles are presented in this dissertation summary.Article I lays the overall foundation for the framework, a

principles and the initial main categories. Articles II, III

describestructures, objectives and impacts categories of the f

of the framework is adopted from the integrated managem

Bleicher (2004). The overview of the framework and the re

are presented in Figure 1.

Fig. 1. Positioning of the articles in the framework as outline of th

1.3 Research approach

STRATEGIC

MANAGEMENT

STRUCTURES OBJECTIVES

NORMATIVE MANAGEMENT

OPERATIVE MANAGEMENT

ARTICLE I

ARTICLE II ARTICLE III A

STRATEGIC

MANAGEMENT




ARTICLE I

ARTICLE II ARTICLE III A


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of the scientific knowledge influence the selection of the research a

methodology. Consequently, the research approach affects the research questions. In practice, availability of time, money, researc

materials, peoples knowledge and interest in the research affect

approach.

The following rationale explains the research approach u

dissertation. The main considerations are presented in Table 2.

Table 2. Key considerations of the research approach.

Topic Approach ExplanationOntology Pragmatism Knowledge has representation in objectivistic-rati

Knowledge created is subjective and conceptual i

framework for strategic technology management.Logic of reasoning Mainly abductive Inference to find best possible explanation for theType of research

Explorative &Descriptive

Clarifying understanding, seeking insights to the s

Type of data Qualitative Using qualitative data to describe the subject.Method to obtain

dataQuestionnaire

Literature

Documents

Obtaining qualitative data on the subject through

literature study and documents of an enterprise.

Ontological perspective to the objective or subjective reality un

determines the research paradigm and the choice of theoretic

(Saunders et al. 2007). In this research, ontology is pragmatic:

provides subjective knowledge which has a representation in objec

reality. It is assumed that explicit and tangible objects represent

rationalist reality, whereas intangible objects represent informatio

reality. These objects can be, for example, products, document

information on organizational structures and objectives, informatio

economic circumstances or technological phenomena, or un-codified

The research problem and objectives of the research have to b

when selecting the research approach and making the research desi


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resources and availability of information, and due to re

enterprises to make observations, these approaches were abathe entire subject was considered to be extremely vag

hypothetical framework for deductive testing of the hyp

abductive approach was selected to gather understand

knowledge that represents the objective reality, in the form o

and perceptions of industry practitioners.

Abductive reasoning is a suitable approach in qualitativ

enables theory building through simultaneous data co

development (Dubois & Gadde 2002). The objective of abdu

gain understanding on the subject or phenomenon und

development (Arlbjrn & Halldorsson 2002). The develop

correspond empirical observations is called theory matc

combining. Thus, there is interaction during the theory d

empirical study. The iterative process contains creative elem

learning aiming to increase understanding of the subject

Dubois & Gadde 2002, Kovcs & Spens 2005). In this proce

creatively contribute on theory building by allowing the f

despite the preconceptions (Dubois & Gadde 2002). To allo

framework during abductive reasoning, inference is explored

information for possible explanation to the object under stud2002).

According to Saunders et al. (2007) exploratory and de

well suited to clarify understanding and to seek for new in

under study. In this research, literature and perceptions of en

is explored to describe elements of strategic technology

theoretical framework. In the abductive approach, the reinvolved in the research process in theory building and seekin

to the nature of the data on conceptual knowledge to be coll

researchers role in the process, the knowledge created

subjective. As theoretical frameworks and concepts of tech


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Yin 2003). Accordingly, structured interviews in high technol

companies were selected as the main method for collecting data.It was also known that certain materials concerning the topics un

were available and accessible in the company where the researcher

The materials were considered to be suitable to allow the use of t

theory method, for theory building of one part of the framework.

theory, the theory emerges from the process of data collection

(Glaser & Strauss 1967, Strauss & Gorbin 1990). In the metho

explored without a predetermined framework, although preconceptio

in order to estimate what kind of data has to be available and what as

for from the data. These aspects are the interests of the research subje

the research findings meaningful for the research purpose. Th

presented by Strauss & Gorbin (1990) allows the use of preliminary

process of finding the best explanation to the phenomenon is mainly

also acknowledges the subjective nature of the research and involv

researcher during note taking, coding, memoing and sorting. Use

theory as qualitative method for one part of the research is appro

chosen research approach.

During the research design, the methodology for collecting and

data needs to be carefully considered to ensure reliability and va

results (e.g. Yin 2003, Saunders et al. 2007). According to Bryman &in qualitative research reliability and objectivity is about depen

conformability of the results. The researcher has to consider, ar

applicable at other times, and has the researchers own subje

influenced the results. Credibility relates to the internal v

transferability is concerned with external validity of the results,

credible the results are and whether they are transferable to another enThe entire field of technology management is extensive, and

topics there exists profound knowledge, methods and practices

Therefore, the scope of this research covers the viewpoints that ar

describe and define in the framework the elements that are relevant


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1.4 Research process

The research was conducted in four major phases involving i

and university personnel and students as research assistants.

study phase, a journal article was created about the entire fra

it. The overview of the proceeding of the research is presente

Starting from the original research problem, the first

studied to gain understanding on the key concepts and

frameworks on technology management. Based on lite

integrated management theory approach was considered

framework was outlined. In order to obtain practical view

workshops were arranged to elicit conceptions of industr

workshop findings confirmed that the entire field was confus

need for a conceptual model. Also, logical consistency of the

confirmed, and accordingly, the initial entire frameworkwas After the completion of the first research phase, the resea

research questions were refined for the subsequent study ph

and the impacts categories of the framework were decided t

qualitative questionnaires in high technology enterprises. Th

was decided to be derived from the available company mate

theory method.The initial framework model was used to derive a structu

the company interviews in the second study phase. T

conducted in small to medium-sized enterprises. This clas

selected as the target group to enhance the interviewee bas

framework was reflecting conceptions of large company

interview materials were analyzed and a study report was wri

findings. Consequently, the structures category of the ini

refined and validated in this study phase.

The third study phase was conducted using the material

which the researcher works. The materials were memoran


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R&D directors. The companies in which the interviewees ha

consumer and industrial electronics, telecommunications equcontracting services and SW products for mobile commu

customers and competitors globally. In the interviews, the fra

briefly presented, and for the evaluation, the category descri

and 8 were used. The interviews were held in Finnish lan

lettered. In the evaluation, scale from not relevant (1) to

(10), and not practiced (1) to well established (10) was

results and their averages are shown in Appendix 1. The res

phase are discussed in the summary chapter of research contr

and validity of the framework is discussed in Chapter 4.3.

Finally, the summary of the dissertation was created.

industrial involvement and the materials used in the research

there were 24 experienced industry representatives from 7 co

two workshops. In phases II and IV, interviews were carried

companies and involved 41 people. In phase III, materials f

were used covering 55 meeting minutes and 125 decision

matters. In the validation phase, 5 people were interviewed.

Table 3. Industrial involvement and the materials used in researc

Phase Part of the

framework

Nr. of

companies

Nr. of

persons

Nr. of

workshops

Nr. of

interviews

I Initial

framework

7 24 2 -

II Structures 18 25 - 18

III Objectives 1 - - -

IV Impacts 14 16 - 14

Validation Entireframework

5 5 5


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2 Theoretical background

Strategic technology management is related to several theoretical c

management disciplines. The body of knowledge in strategic

management is intertwined with abundant aspects of strategic m

organizational management, knowledge management, innovation

and R&D management (e.g. Steele 1989, Khalil 2000, Burgelman

Tidd et al. 2001, Schilling 2008, Dodgson et al. 2008). Each of the

large amount of detailed knowledge and diversely consistent empir

practices, concepts and theories. The entire field of technology ma

divergent, the boundaries of the concepts are blurred, and the kn

research interests differ remarkably in different parts of the world (

Teichert 2006, Cetindamar et al. 2009a). The theoretical founda

dissertation builds on the relevant concepts of strategic m

organizational management and technology management that provide

theoretical basis for the framework development. Therefore,

management, innovation management, and R&D management

excluded from the study scope. The focus of this dissertation

contributions for a strategic technology management school (see Dre

integrate business, technology and organizational aspects. The co

framework, as presented in Figure 3, is outlined essentially witstrategic management, organizational management, and existing


In the large context, people as actors in environment, society and

form various stakeholder groups, for example, scientists, engineers, e

managers, consumers and individuals that engender knowledge,

wealth through their activities. In this context, an enterprise exist

creation on the basis of a legal agreement with the government rep

society. In enterprises, managed activities of people utilize tangible r

are derived from a physical environment to produce artifacts into the

and society. To close the loop, knowledge of nature and society i


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Fig. 3. Context for creating strategic technology management fra

2.1 Strategic management

Classically, companys strategy is defined by Chand

determination of the basic, long-term goals and objectives

the adoption of courses of action and the allocation of reso

those goals. Strategic management is concerned with the c

taken by the management, to create, enhance and sustain its c

its environment, and to reach the companys objectivConceptions on what is strategy and strategic managemen

fragmented over the years (Whittington 2001, Drejer 2

According to Nag et al. (2007), amongst strategic manag

implicit consensus definition for strategic management is: T

ENTERPRISE

ENVIRONMENT

ORGANIZ

ATIO

NALMANAGEMENT

man

agers,en

gine

ers,

etc

.

ARTIFA

CTS

TECHNOL

scientists,

KNOWLE

D

STRATEGIC MANAGEMENT

entrepreneurs, consumers, etc.WEALTH

FRAMEWORK

FOR

STRATEGICTECHNOLOGY

MANAGEMENT

ENTERPRISE

ENVIRONMENT

ORGANIZ

ATIO

NALMANAGEMENT

man

agers,en

gine

ers,

etc

.

ARTIFA

CTS

TECHNOL

scientists,

KNOWLE

D


entrepreneurs, consumers, etc.WEALTH

FRAMEWORK

FOR

STRATEGICTECHNOLOGY

MANAGEMENT


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management, people; knowledge, outcomes, and value creation, wh

reflection to the context of the framework for strategic technology maStrategic technology management attempts to address techno

matters contained in the field of strategic management. In the scope

management, Pilkington & Teichert (2006) identify seven research

core disciplines for technology management: strategy and technolo

technology management systems; sources of competitive strategy; m

operations and new product development; knowledge managemen

and patents management; life-cycles and discontinuities. In this dis

interest point is in linking strategy and technology by means

technology management within strategic management of an enter

following, strategic management themes of value creation and busi

strategy formation and execution, competitive strategies and technol

are discussed to form the theoretical foundation from a strategic

literature perspective, for the strategic technology management

development.

2.1.1 Value creation and business model

The purpose of an enterprise is to create value throughout the val

customers, owners, personnel and society (Ansoff 1979). In macscope technology and innovations within the value creation systems

source for productivity, economic growth and increasing weal

economic environment (Solow 1957, Denison 1962, Nelson & Winte

Council 1987). Furthermore, companies are affected by continuous t

developments and innovations that are changing the value creation

lead to the evolution of entire industries.For value creation, a company has to define and execute the strat

to develop the required capabilities regarding to customer, financ

processes and learning perspectives (Kaplan & Norton 2004). Thro

and execution of a certain strategy, the company is actually structurin


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The composition and involvement of technology in e

model elements determine the objects and aspects that management is concerned with in the enterprise context.

macro-economic scope, the paramount interest in s

management is to proactively manage technology of an ent

value creation, and survival amongst business model ch

evolution that are enabled by advancements in technology.

2.1.2 Strategy formation and execution

Strategy is crucial for value creation, long term success

company. Nevertheless, there is no common agreement o

strategy is and how to establish a successful strategy (e.g. Mi

1996, Markides 1998, Grant 2003). The main perspectives t

are the distinctive characteristics regarding to the strateg

rationale and focus of the strategy. The defined meta sch

rational, evolutionary, processual and systemic (Whittington

al. (2005) have defined and described three prescriptive

design, planning and positioning, and seven descriptive

entrepreneurial, cognitive, learning, power, cultural,

configuration. There is no clear empirical evidence which strprovides the best outcomes and how companies actually c

(Grant 2003). The main debate is about whether a succes

planned or should it be emergent.

During strategy formation, technology aspects must be co

technology is involved in all activities that constitute the com

(Porter 1985). Therefore, business and product strategy has matters, for instance, business and technology strategies h

ensure companys performance and competitiveness, or alter

strategy has to be derived from the business strategy (e.g. Bu

Momaya & Ajitabh 2005, Mei & Nie 2008, Dodgson et al. 20


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In the fast changing and unreliably predictable business and

environment, another challenge for the companies is management cfirms technological evolution (Ansoff 1987). Proliferation of tech

innovations in the market place, as well management of product lif

product substitution, enabled by technology, has to be mastered in co

Dewar & Dutton 1986, Foster 1986, Anderson & Tushman 1990,

Christensen 1997, Scott 2000). Therefore, due to the critical role of t

strategies of a company, the conduct of strategic technology ma

inevitable. These constituents of the business environment increas

complexity of strategy making and strategy execution (e.g. Bossid

2002, Mankins & Steele 2005, Sull 2007, Kaplan & Norton 2008).

2.1.3 Competitive strategies

For achieving its mission, long term goals and objectives in th

company executes a strategy, which may be prescribed or emergent.

approach to a companys strategy, as formed by Chandler (1962)

(1965), is based on rational analysis, separation of strategy m

execution, and profit maximization as the main goal of strategy. C

thinking is that companies have to consider also social, political, en

risks, security, sustainability and business continuation related aspstrategies and technology management (Thomsen & Pedersen 20

Pretorius 2008). The strategy determines the distinctive comp

capabilities that are critical for the companys success in execution o

and achieving the companys mission amongst competition (Learned

The main school of thought about competitive strategy is Porter

approach, which is about attempting to achieve a sustainable advantage for the company by preserving what is distinctive about

within the industry (Porter 1996). This means performing different

rivals, or doing things differently compared to rivals. Fundam

competitive scope and source of competitive advantage determines


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It has been argued that a competitive advantage canno

changing environment, and that it is the dynamic capabilitiecompanys success (Leonard-Barton 1992, Teeceet al. 1997,

2000). Dynamic capabilities are the organizational and s

which management develops, integrates and reconfigures th

the company has (Grant 1996). The resources are the p

organizational assets that a company utilizes for its valu

(Wernerfelt 1984). Strategies that are not resource based will

a turbulent industry environment. Eisenhardt & Martin (200

that resource based strategy collapses in unpredictable high

technology-based industries, knowledge is the major sou

advantage and success, and knowledge as a strategic resour

management paradigm for enterprises (e.g. Grant 1996, Hi

2008).

2.1.4 Technology strategy

Technology has to be connected with the firms business str

importance and relation of technologies to the companys

strategy. Also, technology must be connected to the firms

services and processes throughout its value chain activitieMeyer & Lehnerd 1997, Cooperet al. 1998, Burgelman e

2008, Dodgson et al. 2008).

In order to effectively react into technological changes,

capable of assessing dynamics of the life-cycle of the tec

intends to use, and recognize events that may lead into disru

& Tushman 1990, Henderson & Clark 1990, Christensen 19characteristics of technology have to be evaluated, devel

across the company, according to its technology, product and

Technology strategy is one of the key elements in

management. Technology strategy serves as the basis for b


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and importance of a technology strategy is often recognized in comp

existence of an explicit technology strategy varies even in highcompanies (Kropsu-Vehkaper et al. 2009).

The definition and purpose of technology strategy is quite unified

although every author has their own flavor in the definition. The a

varies enormously depending on industry, enterprise business cont

life-stage (Pavitt 1990). According to definition by Burgelman et

technology strategy is concerned with linking technology with

competitive strategies, and this can be the basis of the overall s

fundamental to integrate all areas of management of technological in

a coherent whole. Technology strategycomprises of the definition,

and use of those technological competencies that constitute the

competitive advantage (Dodgson et al. 2008).

Strategic approach for developing and leveraging technology de

competitive strategy that the company is pursuing. Depending on th

strategic intent, competitive position, resources and capabilities, it ha

strategic choices on how to direct its investments in technology, and

technology with business strategy. Competence and capability view t

strategy requires a company to take a position in its value cha

Accordingly, this leads into a need to balance investments in re

capabilities, and into decisions to consolidate, differentiate or div(Dodgson et al. 2008.).

Factors shaping the technology strategy comprise of internal

integrative and generative forces. These forces are in inter

organizational and industry context, strategic actions and technolo

(Burgelman et al. 2001). Determinants of technology strategy are pre

Figure 4.

Technology

Strategic

action

Organization

context

Internal

forces

Technology MarTechnology

Strategic

action

Organization

context

Internal

forces

Technology Mar


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Technical capabilities and competitive advantage of a comp

technology evolution, maturity, life-cycles, and compdestroying technological disruptions (e.g. Rothaermel &

industry structures, dominant designs (Utterback & Ab

complementary assets availability, standards, intellectual pro

protection have an essential impact to the pursued tech

business attractiveness.

In internal environment, strategic actions must overcom

and to react on external signals about technology evo

opportunities. Organizational context deals with manage

address exploitation of opportunities within existing st

opportunities that require strategy changes. The ability to

two is characterized by organizational agility and the culture

Kosonen 2008).

2.2 Organizational management

2.2.1 Key concepts of organizational management

Company management needs to define and conduct initia

objectives and long term goals to fulfill the mission of

initiatives are completed in organizations through people wh

through the management process. The generic functions of

are planning, organizing, leading and controlling (Robbins

Galbraith (1977: 3) defines organization as Organization

people and groups of people in order to achieve some share

division of labor, integrated by information-based continuously through time. Since the start of industrial rev

models of management and organizations have been deve

about division of work, decision-making, organizational stru

and peoples behavior and motivation in organization (e g M


37/82

tasks and integration or coordination. The division of tasks can

function, process, and knowledge (Mintzberg 1983). The generorganizing are functional, divisional, matrix, and networks (

Integration or coordination is about management of activities that

various parts of an organization and co-ordination is needed to ac

organizations overall task (Mintzberg 1983).

Organizational structures and functional specialization hav

difficulties to work across the functional barriers. Consequently,

optimal degree of functional de-centralization versus integration or c

is a challenge in organizational design (Sherman 2004, Turkulain

addition to organizational design challenges, managers are also chall

need to possess a variety of competences, for conducting the mana

Managers in organizations need technical, human and conceptua

competences, and the relative importance of the skills varies a

managers level in organization (Katz 1974), which means that at th

of organization technical skills are emphasized.

Over the decades of the last century, companies have evolved

function orientation to multi-functional strategic orientation (Ansoff

movement is induced by increasingly accelerating industry evolution

of new business opportunities, and disruptions in the competitiv

driven by complex and indefinite technological development.optimization of a single function, companies need to strategically

align goals and actions of functional units across the company (e.g.

OReilly 1996, Swinket al. 2007). This involves the companys ma

consider comprehensively, not only manufacturing, marketing,

research or engineering functions, but also attitudes, skills, deci

information systems, organizational structures and planning

accommodate the changes in business environment (An

Transformation to multifunctional strategic orientation implies c

strategically manage technology, for instance, anticipate technolog

evaluate business potential and risks of technologies, control pro


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2.2.2 Integrated management concept

Ambiguous business environment sets high standards for en

to cope with complexity and to adapt to changes. In

situations, management needs to make the right assessment a

which may have a long-term impact to company operation

react is short due to dynamics in environment, decisions ha

limited information available, and final outcomes of the d

predict (March & Simon 1993). The amount of incontinuously, and information proliferates globally, causin

technology and business processes. In the global perspective

demographical, political and environmental aspects have

company endeavors. These changes necessitate a compreh

enterprise management.

Integrated management concept of Bleicher (2004) atsystematic method into management thinking and decis

integrated approach to enterprise management, the main obj

survival and development capabilities for an enterprise, to av

to the problems, and to see dependencies of an organizationa

is non-prescriptive as the actual contents depend on the con

in. The integrated management model is presented in Figure 5

In this conceptual model, the networked interactions of

form the entity. The model is composed of the dimensions o

and operative management. Normative and strategic dimensi

outlines and plans. Operative management is about directing

of the activities according to the plans. The managerial dim

separated, based on differences in the problem areas that co

has to deal with. Conceptually, there is interaction betw

including feedback between the plans and execution. Nor

covers general goals of a company in the form of legal

policies, norms and governance rules that intend to secure the


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Fig. 5. Conceptual integrated management model.

Each of the management dimensions has horizontally integrated

activities, structures and behavior, which all need to be aligned an

STRUCTURES OBJECTIVES BEHAVI


ENTERPRISE

STRUCTURE

MISSION

POLICIES

ENTERPR

CULTURE



PLANS

PROBLESOLVIN

BEHAVI

ACTIVITIES

TASKS

CO-OPERA

AND

PERFORM

BEHAVIOR

MANAGEMENT PHILOSOPHY

ENTERPRISE VISION

ORGANIZATIONSTRUCTURES

MANAGEMENT

SYSTEMS

ORGANIZATIONAL

PROCESSES

STEERING

SYSTEMS

HORIZONTAL INTEGRATION

VERT

ICALINTEGRATION



ENTERPRISE

STRUCTURE

MISSION

POLICIES

ENTERPR

CULTURE



PLANS

PROBLESOLVIN

BEHAVI

ACTIVITIES

TASKS

CO-OPERA

AND

PERFORM

BEHAVIOR


ENTERPRISE VISION


MANAGEMENT

SYSTEMS

ORGANIZATIONAL

PROCESSES

STEERING

SYSTEMS


VERT

ICALINTEGRATION



ENTERPRISE

STRUCTURE

MISSION

POLICIES

ENTERPR

CULTURE



PLANS

PROBLESOLVIN

BEHAVI

ACTIVITIES

TASKS

CO-OPERA

AND

PERFORM

BEHAVIOR


ENTERPRISE VISION


MANAGEMENT

SYSTEMS

ORGANIZATIONAL

PROCESSES

STEERING

SYSTEMS


VERT

ICALINTEGRATION


40/82

governance structure of a company in the normative dime

structure and management systems in the strategic dimen

steering structures in the operative dimension. The path

represented as the company culture at a normative dimensio

behavior of people in a company when strategic and operat

are handled. This is manifested in roles and problem-solving

The task of the strategic management dimension is to in

in the operative management dimension. At the operative di

represented as work performance and co-operation capabi

activities are performed. Through these mechanisms, hor

integration of normative, strategic and operative dimension

structures, objectives and behavior, are realized. (Bleicher 20

As a summary, the integrated management concept prov

analysis of the managerial problem fields, and it establishe

analyze managerial dimensions and the aspects of each of also offers a progression model for conception of the solutio

the context of enterprise development, and assists in self-ref

positioning the situations and intentions. In this rese

management model is adopted to provide viewpoints reg

objectives and impacts categories of strategic management di

2.3 Technology management

2.3.1 Key definitions

The definition and understanding of the term technology is so

In general, every term has its formal expression and inten

semantic associated to the term, and extension that re

associated to the term (Niiniluoto 1980: 118). Every author

technology has their own intention and knowledge about th

of the term. Consequently, definitions used in literature have


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knowledge (Webster 2010). Burgelman et al. (2001: 4) defines te

technology refers to theoretical and practical knowledge, skills and

can be used to develop products and services as well their pro

delivery systems. Technology can be embodied in people, materials, c

physical processes, plant, equipment, and tools. The definition of B

al. (2001) is applied in this dissertation.

Technology management is defined by several authors and i

National Research Council of U.S.A. (1987) and European

Technology and Innovation Management (2010). Gregory (1995) ha

definition based on a generic process view to technology mana

generic processes of identification, selection, acquisition, expl

protection are also included in the definition of European Institute o

and Innovation Management. Cetindamaret al. (2009b) have sum

definitions of several authors (e.g. Roberts 1988, Gregory 1995, Rus

Dodgson et al. 2008, Levin & Barnard 2008). Cetindamar et concludes that there might be a consensus about the core process

technology management. On the other hand, the scope of technology

is diversely enhanced by, for example, strategy, knowledge, learnin

resource, competence, capability, innovations, product develo

commercialization views.

There exists several definitions and differing understandingsknowledge management. In simple terms, knowledge manageme

managing what we know (Wilson 2002). In this dissertation,

management is understood as identification, creation, codifying,

sharing of knowledge to make it available for business purposes of a

To avoid confusion, it is necessary to differentiate technology mana

knowledge management: technology management is concerned w

apply and utilize knowledge for business needs and purposes.

2.3.2 Schools of technology management


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technology management. The philosophy of the so called

management regards research, development and techn

instruments for long-term competitiveness and innovations (e

It emphasizes formulation of explicit technology strategy

technology with corporate and business strategy. Current

themes are concerned on knowledge acquisition and diffusi

and open innovation (Chiaromonte 2003, Chesbrough 2006, L

The scope of the innovation management school

innovation in the entire company, from ideas to comm

innovation management school of technology management,

as changing but predictable, to justify the use of tools and m

technology forecasting. This is to anticipate technolo

opportunities to create innovations by a managed innov

company. Discontinuous, radical, really new, incremental an

process, product and service innovations (Garcia & Galantocategorized, and sources of innovation are known (von Hippe

The effect of technological and market contingencies to inn

would still need better characterization (Tidd 2001). The sco

planning school is to manage technology across the com

environment using, for instance, forecasting, portfolio analy

method, and road mapping to plan and react to technologicbusiness environment (e.g. Andreasen & Hein 1987, Coopere

Thestrategic technology managementschool can be divi

based, organization and technology-based, and integrated

management schools that intend to combine technology with

and strategy (Drejer 1997). In technology-based strategic tech

school, technology is seen as a starting point for strateg

organization and technology-based school, the emphasis is

human resources and organizational performance measures

integrated strategic technology management school, the in

combine and decide technology and business issues in th


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2.3.3 Technology management frameworks

Frameworks are generally used to present and communicate ideas or

structured way to support understanding of the topic under study. Fo

the applicable viewpoints that a framework should provide, Phaal e

refers to a meta-framework of Shehabuddeen (2001) that represent

applied, dynamic and static dimensions to the topics to be pre

framework. Necessary abstraction, practicality, position of the el

interaction of the elements can be presented in a framework thdimensions. A variety of theoretical, commercial and practical fram

presenting ideas related to technology management have been depicte

et al. 2000, Talonen 2008). The main types of existing technology

frameworks and their key characteristics are presented in Table 4.

Each of the framework types represents a partial solution to th

what are the elements of strategic technology management. PTeichert (2006) and Brockhoff (2003) give an explanation that the r

ambiguity of the field of technology management can be traced bac

roots to management of R&D laboratories, and that the positioning

amongst other disciplines, has been difficult due to its intertwined nat

The underlying skeleton of the framework types indicate an app

attempts are made to define the key processes, functions, routines,

tools for specific technology management activities. Secondly,

management activities are presented as a discipline that needs to b

with the core business processes, and with market and business str

enterprise.

A third approach is to manage knowledge flows of a company

in other processes to link technology as a resource for reachi

objectives, or to manage technology specifically as part of innova

product development processes. An integrated management appr

fields of technology management in normative, strategic an

dimensions of organizational management from perspectives o


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Table 4. Main types of technology management frameworks.

Type

Characteristics

Generic process model Generic five process models: identification, selectionacquisition, exploitation and protection.

Generic five processes and learning seen as dynam

capability.

Technology management

functionsKey functions related to technology management:

technology strategy, road mapping, development,

information and knowledge management, acquisitio

transfer, forecasting, product development, life-cycle

management, commercialization.

Technology management

routinesKey routines: producing scientific and technological

knowledge, transforming knowledge into working

artifacts, matching artifacts with user requirements,

providing organizational support.

Integration of technology

management activity to

business processes

Five best practices to integrate technology planning

with business planning: planning, involvement,

commitment, buy-in, accountability.

Generic framework integrating technology

management core processes to processes of strateg

innovation and operations.

Technology strategy

approachTechnology strategy creation and implementation

regarding to definition of core and complementary

technologies, competencies, make/buy decisions,environment analysis, planning.

Integrated management

conceptTechnology management as a task of general

management: normative (vision, know-how

acquisition, decision-making, policies, innovation

culture creation); strategic (planning, organizational

design, make/buy, alliances creation), operative (R&

goals, motivation, tasks fulfillment)

Innovation funnel Integrating New Product Development from conceptto commercialization, through knowledge flows and

decision-making within commercial/market and

networked technology/resource/R&D perspectives.


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Due to complexity of the field, and dependency on industry

framework types are quite generic. There exists profound kn

generalized theories on phenomena about technological developmen

diffusion, dominant designs, innovations, and about role of core com

dynamic capabilities in enterprises (e.g. Utterback & Abernathy 1975

Anderson & Tushman 1990, Rogers 2003, von Hippel 1988, Praha

1990, Teece et al. 1997). On the other hand, specific practices

developed, for example, on technology forecasting, road mappin

management, evaluation, benchmarking, selection, patenting, licens

grids and strategy making (see e.g. Phaal et al. 2006). Nevertheless,

frameworks present a comprehensive view to the entire field.

2.4 Theoretical synthesis

Technology imposes managerial challenges due to the high level odynamics and profound effects on company strategy, busin

competitiveness, capabilities, and execution of strategy for sustain

success. Table 5 presents the essential concepts from strategic m

organizational managementand technology managementtheories for

strategic technology management framework.

Key findings from strategic management theories that are framework development include: the scope of strategic management

value creation for its stakeholders, role of technology in value creat

models, and as a source for productivity increase. In addition, t

capabilities are important for formulating and executing competitive

socio-economic context, the need for strategic technology manageme

in enterprises is justified by the major impact of technology fo

development and wealth creation. From organizational management

integrated management concept is adopted for the framework develop

Structures, objectives and impacts categories in strategic

dimension are considered to provide the necessary viewpoints for th


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Table 5. Key theoretical concepts for strategic technology manag

Theoreticaltopic

Key concepts for creation of strategic technologymanagement framework

Main re

Strategic

management

Definition of strategy. Chandle

Scope of strategic management. Nag et

Technology as a major source for economic growth

and productivity.

Nelson

Consideration of technology with respect to

sustainability aspects in companys socio-economic

environment.

Thomse

Critical role of technology in the business model

creation.

Suikki e

(2006)

Management control over firms technology evolution,

complexity of technology dimension in strategy

execution.

Ansoff (

Resource based strategy view on enterprise. Werner

Technology strategy has to be connected with firms

business and product strategy.

Burgelm

Organizational

managementFunctions of management: planning, organizing,

leading and control.

Robbins

Multifunctional strategic orientation of an enterprise. Ansoff (

Integrated management concept. Bleiche

Technology

managementDefinition of technology. Burgelm

Definition of technology management and key

processes.

Gregory

Strategic technology management school. Burgelm

et al. (2

Underlying knowledge on phenomena, methods,

tools and role of technological development,

forecasting, diffusion, innovations, dominant designs,

core competences and dynamic capabilities instrategic technology management and business

success of enterprises.

Utterba

Anderso

von Hip

Hamel ((1997),

Technology management is regarded as an own manageria


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3 Research contribution

In this chapter, the research contributions of the individual researc

presented. The entire research subject is outlined in the first article

the overall framework. The following three articles discuss and e

framework in more detail, focusing on the categories identified in the

Each category is further divided into six elements. In each article

framework model and the respective framework category is describ

Also, each article discusses theoretical contribution and managerial respectively. Due to practical reasons, in the scope of this diss

technology management related matters are covered to identify

strategic technology management without deeply diving into each o

topics, specifically.

3.1 Framework for strategic technology management

In the first article, the foundation for the framework development is

the article therefore answers the research question 1. Based on th

management model of Bleicher (2004), and by amending previo

Tschirky (1991) and Luggen & Tschirky (2003), elements

management of technology are divided into three categories

objectives and impacts. In addition, the article discusses how the

relates to company strategy, and defines strategic technology manage

Strategic management of technology is planning, organizing,

controlling of technological activities, interacting with compan

apply knowledge, structures, resources and socio-economic env

contribute to formulation and execution of the companys basigoals and objectives, and adoption of courses of action and the a

resources necessary for those goals.

The categories of the initial framework are presented in Figure 6. In t


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Fig. 6. Initial framework for strategic technology management.

The structures category contains a logical process view ovestarting point to consider is the artifacts needed for the

management. The respective processes, methods and too

artifacts are described. Governance structures are needed to

for decision-making and for managing the use of processes a

these artifacts. Organizational structures are needed for plan

of strategic management activities. The form of organizat

companys business context, size and principles for c

centralization of the businesses and functions. Technology m

organized as a distinguishing function. In addition to

companies also utilize various types of collaboration netwo

fifth main element of the structures category.

The objectives category contains objectives that confor

business strategy. The strategic objectives are reflecting

strategies which require different types of objectives to techn

The companys product offering requires diverse qualitat

objectives with respect to the needed qualities of the entire t



STRATEGIC

MANAGEMENT




STRATEGIC

MANAGEMENT




STRATEGIC

MANAGEMENT



49/82

environmental impacts. Intangible outcomes accumulate as un

codified knowledge which form the companys technological capabil

3.2 Structures category of the framework

In the second article, thestructures category is elaborated to answe

research question. The categorization of the framework elements is e

validated based on perceptions of practitioners in small to m

enterprises. The summary of the elements in the structures cate

framework is presented in Table 6.

Table 6. Structures category of the framework (Sahlman & Haapa

published by permission of Inderscience).

Main element Definition

Artifacts Information, documents, reports, plans, prescriptions as the outcomperformed processes of technology management.

Processes Procedures and practices performed to transform inputs into artifa


Methods, tools, IT

systems

Techniques and tools to perform tasks of the procedures and prac

technology management. Information systems for processing and

generated in the processes of technology management.

Governance Management structure, definition of authorization and policies for d

making of technology management topics.

Organizational

functions

Managerial disciplines of an organization for planning, organizing,

monitoring technology management functions.

Collaboration

networks

Stakeholder organizations involved in the company's processes of

management.

In the elaborated framework, the main class of methods, tools and

technology systems was separated from processes to better reflect p

logical categorization. Logically, the processes of technology manag

methods and tools to produce artifacts in the form of documents and

on plans, portfolios, repositories and guidelines. Information tec


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managing the activities that utilize the processes, were also d

networks include various stakeholders that are involve

technology management and constitute a collaborative par

infrastructure of a company. For most of the elements that

structures category of the framework, there exists separately

and body of knowledge, which have been excluded from

dissertation.

3.3 Objectives category of the framework

The third article presents the objectives category of the fram

the third research question. The elements in the categor

technology management related decisions of a large

equipment manufacturing company. The summary of the o

presented in Table 7.The elements discovered in the article consist of produc

chain related objectives, objectives for technology asse

imposed by technology and objectives related to internal a

Qualitative and quantitative properties of technology mu

product offering objectives, which are enabled by techno

products. The products and technologies must enable compefor the company and its customers. This is to meet socia

expectations, for example, energy efficiency, and the fundam

user needs must be satisfied. These all cause many-s

technology. Business model aspects determine the technolo

for value chain positioning, supplier dependency, and scope

technologies. Objectives for the properties of technology a

offering related targets. Additionally, scope, scale and t

aspects must be considered in the objectives setting for

Furthermore, uniqueness and standards compliancy has to be

Consequently, technology asset base determines also


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Finally, objectives related to industry relations are concerned with

standardization, licensing, intellectual property, supplier and

strategies and policies.

Table 7. Objectives category of the framework (Sahlman & Haapasalo



Product offering Objectives for product offering enabled by technology e.g. cost, pe

capacity, quality, reliability, availability, maintainability, and commo

Value chain Value chain related objectives for technology supply e.g. business

scale of technology use, position in value chain, revenue logic, sup

technology change cost.

Technology assets Objectives for technology assets e.g. scope, scale of deployment,

products, life-cycle state, performance, and compliancy to internal

standards.

Productivity Objectives for productivity enabled by technology e.g. technology p

and scale, life-cycle position, operating expenses, capital expense

scale of competence and resources to develop and maintain the te

base.

Internal policies Objectives for internal policies, standards, processes and practices

and internal standards definition and deployment, best practices di

harmonization of practices, agility and adaptability of technology cr

Industry relations Objectives for industry relations e.g. compliancy to regulations, sta

facto standards, standardization strategy and policy, IPR, licensing

strategy, extend of supplier base, publications, collaboration with in

creation and support of technology ecosystems.

In general, the discovered elements conform to the purpose and goal

management, in terms of objectives setting for value creation, bus

development of technological capabilities, and competitive positio

by technology.

3.4 Impacts category of the framework


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created by technologies manifested in products and servi

delivers.

Table 8. Impacts category of the framework (Sahlman & Ha



Tangible outcomes Impacts of technology management by technology ma

products and services.

Business model impacts Impacts of technology management to the companys

system, industry clusters, revenue logic, value creatio

Knowledge based

impacts

Impacts of technology management on skills, compet

knowledge and wisdom embodied in people and ente

Transitional and dynamic

impacts

Impacts of technology management that can be obse

market and environment.

Socio-economic impacts Impacts of technology management on social welfare

Environmental impacts Impacts of technology management to natural resourc

materials exploitation and waste.

Impacts to business model related matters are realized by th

in terms of added value and customer needs fulfillm

competitive positioning and created business benefits are af

and productivity enabled by technology. R&D investment de

technology creation efforts, utilization of value chain cocreation of the technology eco-systems and clusters. Invest

activities within the value chain influence on the evolution o

models and value chains. Thus, competitiveness, levels

fragmentation of value chains change over time. Throug

codified and codified knowledge is accumulated within valu

ultimately determine capabilities of companies and value

competitive environment. Finally, it is the value chains th

companies alone. Tangible products and services, on the

dynamic impacts in the market place in the form of inno

leadership technology life cycles and other attributes of tec


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3.5 Elements of strategic technology management

After completion of each of the categories, the entire framework was

interviewing experienced industry practitioners evaluating relevance

state of each element of the framework. Evaluation results are

Appendix 1.

Evaluation of the elements mostly scored on average from

Methods, tools and IT systems were evaluated least relevant, on av

due to one respondent not seeing them as relevant in his compalthough he stated that the bigger the company is, the more relevant

knowledge of substance is more relevant than tools. Relevance of soc

and environmental impacts was also evaluated low at 7.2 and 6.0

nevertheless, the topics were understood, and their importance

increase. Relevance of value chain related objectives was seen not v

one interviewee because his companys value chain position is stable

no intent to change the position. For the same company, the indu

were not seen relevant either, due to the focused scope of the compan

The perceived current state of practice of the elements was eval

from 6.2 to 7.6 indicating that the interviewees were not quite satis

matters are implemented in practice. The lowest score was on arti

which may indicate that practices are not systematic or outcomes

documented. The highest score was on collaboration networks at 8

that the networked operational model for globally operating com

necessity.

The interviewees were able to associate the elements to busine

The linkage of business needs and enterprise strategy to technology

was acknowledged. On average, all of the elements were seen relev

substance was understood. It was stated that strategic technology and R&D management are typically practiced in own silos in en

technology management is embedded in R&D, which effective

gaining the whole picture. It was also stated that it is important to


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making, improve follow-up on technology strategy execut

productivity by some 20%, e.g., from 60% to 80% of optimal

The strategic importance of technology in creation a

company strategy was brought up. Technology should be s

satisfy the market needs. It was emphasized that mar

development are too often technology driven, and the rea

considered. The utilization of the framework was unders

consideration of the desired impacts for setting the strategi

realized by the structures. Thus, the framework was seen a

providing necessary viewpoints on the relevant issues.

Key questions on benefits of strategic technology manag

whether there is evidence on what is its impact to competitiv

best practices for formal organization of technology m

companies, and whether strategic technology management

factor for a technology-based company. It was stated thatbecoming easier, product lifecycles are shortening, and

anticipate technological development. Therefore, mark

technology management was seen as important.

In conclusion, the four articles of this dissertation form

strategic technology management. Article I presented

framework, and the three categories ofstructures, objective

studied in articles II, III and IV. The articles answer the resea

and 4 respectively. During the research, some 250 classes a

identified for the eighteen main elements. Elements of the

follow mainly a process and organizational view over

objectives category elements conform to strategic manage

value creation, business models and competitiveness. Th

elements represent internal and external, tangible and intang

the company, and in its socio-economic environment. In

framework was recognized to contain relevant element

considerations, interest and discussion on the topics. A


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Fig. 7. Elements of strategic technology management.



STRATEGIC

MANAGEMENT

ARTIFACTS

METHODS, TOOLS,

IT SYSTEMS

PROCESSES

GOVERNANCE

STRUCTURES

ORGANIZATIONAL

FUNCTIONS

COLLABORATION

NETWORKS

PRODUCT OFFERING

OBJECTIVES

OBJECTIVES FOR

TECHNOLOGY ASSETS

VALUE CHAIN

OBJECTIVES

OBJECTIVES FOR

INTERNAL POLICIES

PRODUCTIVITY

OBJECTIVES

OBJECTIVES FOR

INDUSTRY RELATIONS

T

I

KNOW

I

BUSI

I

SOCI

I

TRAN

DYNA

ENVI

I

STRUCTURES OBJECTIVES IM



STRATEGIC

MANAGEMENT

ARTIFACTS

METHODS, TOOLS,

IT SYSTEMS

PROCESSES

GOVERNANCE

STRUCTURES

ORGANIZATIONAL

FUNCTIONS

COLLABORATION

NETWORKS

PRODUCT OFFERING

OBJECTIVES

OBJECTIVES FOR

TECHNOLOGY ASSETS

VALUE CHAIN

OBJECTIVES

OBJECTIVES FOR

INTERNAL POLICIES

PRODUCTIVITY

OBJECTIVES

OBJECTIVES FOR

INDUSTRY RELATIONS

T

I

KNOW

I

BUSI

I

SOCI

I

TRAN

DYNA

ENVI

I

STRUCTURES OBJECTIVES IM


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4 Discussion

4.1 Theoretical implications

In this dissertation, the research problem is approached by d

framework that describes elements of strategic technology manag

developed theoretical framework describes the elements as c

structures, objectives and impacts in strategic dimension. The new

contribution of this dissertation includes the framework mod

organizational theory on strategic technology management, and com

of technology management. Table 9 summarizes the theoretical cont

implications of the research phases that constitute the entire framewor

The framework builds on the integrated management theory

(2004), and enhances previous models developed by Tschirky (1991)

& Tschirky (2003). Other types of existing strategic technology models are typically focused on certain aspects of technology mana

Table 4), for instance, process, function, routines, activity, methods o

or they are focused on constituents of technology strategies. In exist

and theoretical models, technology related phenomena, impact

economic environment, as well as impacts of technology to comp

model and competitiveness are covered as separate but intertwined Khalil 2000, Dodgson et al. 2008). Also, an extension to Gregorys

process model is suggested by proposing process areas of strate

technology development, and technology disposal. Moreover, c

solutions to the challenges in strategy execution emphasize setting o

organizations and management of strategic initiatives portfolio (e.g

Steele 2005, Mankins & Steele 2006, Kaplan & Norton 2005), instea

to transform strategic business objectives into strategic objectives for

In this respect, the developed framework complements the existin

providing an integrated approach with the standpoints tostructure

and impacts as element categories of the framework for strategic


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considerations of horizontal and vertical integration of th

elements.

Table 9. Summary of theoretical contributions and implications.

Phase # Theoretical contributions Theoretical implicationsI Defining of strategic technology

management in enterprise context.

Outlining a conceptual framework for

strategic technology management.

Combines definitions of

technology and strategy

Framework for strategic

created. Enhances prev

II Defining the structures category of theframework.

Structures for strategic

in enterprises context c

Enhancement of Grego

model (identification, se

exploitation, protection)

developmentand dispo

suggested.

III Defining the objectives category of theframework.

Objectives for strategic

in enterprise context ca

Introduces the need of

strategic business obje

objectives for technolog

IV Defining the impacts category of theframework.

Impacts of strategic tec

enterprise context categ

Connects in the form of

internal and external inf

technology manageme

environment.

Validation,

Dissertation

Summary

Concluding the entire framework for

strategic technology management.

Unites concepts of stra

organizational manage

management into a fram

technology manageme

Builds a basis for a logi

technology manageme

enhancement.


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offering objectives and tangible impacts; value chain objectives a

model impacts. As another example, collaboration networks and o

industry relations, as well as socio-economic and environmental

interrelated. Organizational functions, governance structures,

objectives and internal policies form also an example cluster

Examples of these element clusters are presented in Figure 8. As a co

framework provides a theoretical frame for presentation, commu

discussion of strategic technology management topics. It also provi

structure for further research and elaboration of the individualelements and their interrelations as an integrated entity.

Fig. 8. Examples of element clusters in the framework.

ARTIFACTS

METHODS, TOOLS,

IT SYSTEMS

PROCESSES

GOVERNANCE

STRUCTURES

ORGANIZATIONAL

FUNCTIONS

COLLABOR

Elements Of

Documents

Transcript of Elements Of