TECHNOLOGY MANAGEMENT Linking Technology Strategy to Competitive Strategy Aryantono Supervisor:...
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Transcript of TECHNOLOGY MANAGEMENT Linking Technology Strategy to Competitive Strategy Aryantono Supervisor:...
TECHNOLOGY TECHNOLOGY MANAGEMENTMANAGEMENT
Linking Technology Strategy to Competitive Strategy
Aryantono
Supervisor: Prof. Allan S. Carrie
• Background of Research Work» Research Problem» Research Objectives
• Theoretical Framework
• Research Design
• Model, Hypothesis and Expected Research Findings
Outline of Presentation
Technology ManagementTechnology Management
The strategic management of technology is considered among the most formidable challenges confronting companies today in their efforts to respond to global competition. Intense worldwide rivalry in many industries has highlighted the need for strategy for developing, commercialising and managing innovative technologies (Erickson, 1991).
Background of Research WorkBackground of Research Work
Background of Research WorkBackground of Research WorkIndustrial Environment - Technology StrategyIndustrial Environment - Technology Strategy
A key insight in the study of the intensely disruptiveturbulent industrial environment is that the strategic paradigmsthat work well in one environment don’t work at all in another.
The nature of competition is different among industries
What should firm do in order to maintain its competitivenessin the dynamics of competition?
Research ProblemResearch Problem
In considering the nature of competition there four categories of industries (D’Aveni, 1999). Moreover, according to Burgelman and Rosenbloom, technology strategy is forced by the environment of the industry in which it operates. Are there different approaches of technology strategy considering the nature of competitions?
The overall objective of this research is to provide a betterunderstanding about the correlation between the nature ofcompetition and strategic management of technology
The specific aims are to:
1. To determine the dimensions of technology strategy.2. To specify the firm’s competitive strategy regarding its industrial environment.3. To link those dimensions of technology strategy and competitive strategy.4. To provide a model that can show the relation within the dimensions of technology strategy in order to examine the internal consistency of the firm’s technology strategy.
Research ObjectivesResearch Objectives
Industrial EnvironmentIndustrial Environment
Competitive StrategyCompetitive Strategy
Strategic Management of TechnologyStrategic Management of Technology
Industrial categories and their ways to create or maintain strategic supremacy
Strategic choices according to create competitive advantage
• The internal consistency of a firm’s technology strategy• The dimensions of technology strategy
Theoretical FrameworkTheoretical Framework
Industrial Environment:Four Patterns of Varying Turbulence (D’Aveni, 1999)
Stable and Low
Time
Turbulence
Equilibrium
Com
pete
nce
Enh
anci
ng/
Neu
tral
Com
pete
nce
Des
troy
ing
Infrequent Disruptions
Fluidly Changing
Time
Turbulence
Fluctuating Equilibrium
Frequent Disruptions
Occasional Upheaval
Time
Turbulence
Punctuated EquilibriumChaotic
Time
Turbulence
Disequilibrium
Industrial EnvironmentIndustrial EnvironmentIndustrial categories and their ways to create or maintain
strategic supremacy (D’Aveni, 1999)
Environment Dampening Strategy of Dominant Player Disruptive Strategy of Challenger
Equilibrium Use barriers to entry Use disruption to break down the barriers
FluctuatingEquilibrium
Build around core competencies byleveraging them into many markets andenhancing them by layering newcompetencies over them
Use disruption to shift the corecompetencies needed to succeed so theincumbent’s current strengths becomeweaknesses
PunctuatedEquilibrium
Use standards to create a stable industrystructure around a standard valueproposition and then respond to majorrevolutions when necessary
Be contrarian. When the incumbent isdisrupting, win by improving andpromoting the old model, and when theincumbent is seeking stability, disrupt
Disequilibrium Use a strategy of continuous disruption tostamp out the disrupter and sustainsupremacy. The goal is to beat thedisrupter at its own game and useresources to outlast it
Disrupt the dominant firm frequently; wearit down by keeping it off balance, byattacking more intensely, more swiftly, andunpredictably, and by being more efficient.
Environment Strategic Choices
Equilibrium Creating a stable domain Single-core technology Cost efficiency, cost minimization Narrow segment
FluctuatingEquilibrium
Differentiation, unique along several dimension Continuously developing domain Searching new product and market opportunities
PunctuatedEquilibrium
Searching new product and market opportunities Maintaining traditional products and customers
Disequilibrium Creating and exploiting new product and marketopportunities
Competitive StrategyCompetitive StrategyCategories of industries and strategic choices
Strategic Management of Strategic Management of TechnologyTechnology
•The internal consistency of a firm’s technology strategyThe internal consistency of a firm’s technology strategy
•The dimensions of technology strategyThe dimensions of technology strategy
Strategic Management of Technology:Strategic Management of Technology:The ObjectivesThe Objectives
Strategic MOT is pursued to (Drejer, 1996): Enrich mutual understanding between
technology and business. Cover broader issues while at the same time
integrate it across the corporation Enrich management attention and strategic
appreciation of technology.
In order to do that, it is essential to examine MOTbased on what firms aim to achieve by their doing.Such an examination helps us to identify the endsof MOT and their relationship.
Strategic Management of TechnologyStrategic Management of TechnologyThe Ends of MOTThe Ends of MOT
By analysing the literature, it can be argued that theends of MOT can be defined as follows:
1. Objectives: R&D and Organisation.
2. Opportunities: Internal and External.
3. Resources: Human and Technology.
Strategic Management of TechnologyStrategic Management of TechnologyThe PerspectiveThe Perspective
Moreover, Strategic MOT can be viewed by using twoperspectives: Purpose/ throughput process(es). In regard to this
perspective, Strategic MOT concerns to develop anddirect technology, in the light of a firm’s objectives,opportunities and resources.
Structure/inter-organisational relationship. Inregard to this perspective Strategic MOT is concernedwith the flexibility of organisation, regardingtechnological change. Integration, co-ordination andinter-organisational relationship are perceived as astrategic consideration of MOT. Again, such factors aredefined in the light of a firm’s objectives, opportunitiesand resources.
Strategic Management of Technology:Strategic Management of Technology:The DefinitionThe Definition
Concerning the ends of MOT, strategic MOT processcan be defined as the continuing redefinition andachievement or exploitation of a firm’s technologicalopportunities, objectives, resources and themaintenance of appropriate relationship betweenthem.
With the above consideration in mind, The StrategicMOT can be shown in diagrammatic form in thefollowing figure:
Opportunities
•R&D
•Organisatio
n•Technology
•Human
•Internal•External
Res
ourc
esO
bjectives
(re)
defin
ing
and
mat
chin
g
a fir
m's
tech
nolo
gica
l
obje
ctiv
es a
nd o
ppor
tuni
ties
(re)defining and matching
a firm's resources to
opportunities
(re)defining and maintainingthe relationship betweenobjectives and resources
Perspectives
Pur
pose
Str
uctu
re
Pers
pect
ives
PurposeStructure
PerspectivesPurpose
Structure
The Dimensions of Technology Strategy:The Perspective on Strategic MOT - The
characteristics OF MOT
Characteristics of MOTPerspective Acquisition
ManagementExploitationManagement
PurposeTechnological
thrust
Type oftechnological
innovation
StructureAcquisition
methodExploitation
method
The Dimensions of Technology Strategy:Objectives - Resources
Objectives
ResourcesHuman Technology
R&DContinuous
DevelopmentProgram
Technologicalinvestment
OrganisationOrganisational
structureTechnological
competence
Technology Human
5. TechnologicalInvestment
7. Continuous Dev.Program
R&D
6. TechnologicalCompetence
8. OrganisationalStructure
Org.
Opportunities1. Technological Thrust
2. Acquisition Method
3. Technological
Innovation
4. Exploitation M
ethod
•R&D
•Organisatio
n•Technology
•Human
•Internal•External
Res
ourc
esO
bjectives
Industrial competition, competitive strategy,technology strategy
Model
Survey/interview
Descriptive analysis
Literature ReviewLiterature Review
Model BuildingModel Building
Data CollectingData Collecting
Testing and AnalysisTesting and Analysis
ConclusionConclusion
Research DesignResearch Design
Model Building
TechnologyTechnologyStrategyStrategy
TechnologyTechnologyStrategyStrategy
The nature of competitionsThe nature of competitionsThe nature of competitionsThe nature of competitions
Competitive StrategyCompetitive StrategyCompetitive StrategyCompetitive Strategy
Model, Hypothesis and Expected Research Findings
Dimensions
EnvironmentEquilibrium
FluctuatingEquilibrium
PunctuatedEquilibrium
Disequilibrium
Technological Thrust
Acquisition Method
Technological Innovation
Exploitation Method
R&D Investment
Technological Competence
Continuous DevelopmentProgram
Organisational Structure
Model, Hypothesis and Expected Research Findings:
examples
Dimensions
EnvironmentEquilibrium
FluctuatingEquilibrium
PunctuatedEquilibrium
Disequilibrium
Technological Thrust less currentclose to state
of-the-art
close tostate of-the-art
as state-of-the-art
Acquisition Method License-InContracted-
Out R&DJointVenture
Internal R&D
Technological InnovationContinuousincrementalinnovation
Robust designCompetence-shifting
Novelty Competence-
shifting
Exploitation Method License-Out Joint Venture
Contracted-OutManufactureor Marketing
Employ In OwnProduction orProduct