1. CHAPTER 12 Strategic
Issues in Managing
Technology and
Innovation
STRATEGIC MANAGEMENT & BUSINESS POLICY
10TH EDITION
THOMAS L. WHEELEN
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J. DAVID HUNGER
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2. Executive Fear over loss of Innovation
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3. Executive Fear over loss of Innovation
A survey of business executives conducted by fortune with the consulting
firm integral, inc. Revealed the percentages of those responding either
agree or strongly agree to the following five statements
Your company has recently lost relatively low – value customers in small
market niches or low – endmarket segments
Your organization passes up groth opportunities it would have pursued
when the company was smaller because the opportunities are now, too
small to be interesting
There is a disconnect between the kind of innovations your frontline troops
suggest and the types of innovations upper management invests in
When your organization sees a potentially disruptive technology, it defines
it as a technical problem (will our customers accept the product) instead of
a market problem
New entrants have exploited opportunities where uncertainty over market
size and customer needs resulted in inaction by your company
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4. Technology and Innovation
The Role of Management –
–Innovation
–Management of technology
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5. Technology and Innovation
Environmental Scanning –
–External Scanning
•New developments in technology
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6. Technology and Innovation
Impact of Stakeholders on Innovation –
–Lead Users Process
•Lay the foundation
•Determine the trends
•Identify lead users
•Develop the breakthrough
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7. Technology and Innovation
Impact of Stakeholders on Innovation –
–Market Research
–New Product Acquisition
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8. Technology and Innovation
Environmental Scanning –
–Internal Scanning
•Resource development
•Experimentation
•Risk taking
•New ideas
•Autonomous project teams
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9. Technology and Innovation
Environmental Scanning –
–Resource Allocation Issues
•R&D intensity
•Time to market issues
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10. Product & Process R&D Innovation Life Cycle
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11. Technology and Innovation
Outsourcing Technology –
–Low significant to competitive advantage
–Supplier has proprietary technology
–Supplier’s better
–Strategy based on design not development
–Requires special expertise
–Requires new people and resources
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12. Technology and Innovation
Intellectual property –
–Special knowledge used in new product or
process
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13. Technology and Innovation
Technological Competence
–Absorptive capacity
–Technological competence
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14. Categories of Innovation
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15. Product/Market Evolution Portfolio Matrix
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16. Stages of New Product Development
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17. Technology & Innovation
Innovative Organizations –
–Positive attitude toward change
–Decentralized decision making
–Informal structure
–Interconnectedness
–Organizational slack
–Large size
–System openness
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18. Designs for Corporate Entrepreneurship
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19. Evaluation and Control
Techniques –
–Stage-gate process
–House of quality
–Index of R&D effectiveness
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20. House of Quality
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