Integrating Technology and Strategy A General Management Perspective

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Integrating Technology and Strategy A General
Management Perspective
2
Outline

• Introduction
• Key concepts concerning technological innovation
  and their interrelations
• The integration of technology with business and
  corporate strategy
• A framework for auditing and assessing the firms
  innovation capabilities
• Conclusion

3
Introduction

• To deal with issues of technology and innovation
• Key task of the general manager
• Acquire, develop, and allocate an organizations
  resources
• Develop and exploit the firms capacity for
  innovation

4
Outline

• Introduction
• Key concepts concerning technological innovation
  and their interrelations
• The integration of technology with business and
  corporate strategy
• A framework for auditing and assessing the firms
  innovation capabilities
• Conclusion

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The Relationships among Key Concepts Concerning
Technological Innovation
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Outline

• Introduction
• Key concepts concerning technological innovation
  and their interrelations
• The integration of technology with business and
  corporate strategy
• A framework for auditing and assessing the firms
  innovation capabilities
• Conclusion

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Integrating Technology and Strategy

• Perspectives on strategy
• Positive view
• Normative view

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Generic Strategy
Overall cost leadership
Overall differentiation
overall
Focus-segmentcost leadership
Focus-segment differentiation
focus
The areas of competition
The way of creating the value
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Generic Strategy
Overall costleadership Overall differentiation Overall differentiation Focus-segment cost leadership Focus-segmentdifferentiation
Technological policies Technological policies Technological policies Technological policies Technological policies Technological policies
Product technological change Product development to reduce product cost Product development to reduce product cost Product development to enhance quality Product development to support only enough performance Product design to meet exactly the needs of particular segment
Process technological change Process development to enhance economies of scale Process development to enhance economies of scale Process development to support high tolerances Process development to tune production to segment needs Process development to tune production to segment need
IBM
Benetton
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The Product / Technology Matrix
Product A Product B ??? Product N
Technology 1 ()
Technology 2
Technology 3
???
Technology K
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Developing the Technology Portfolio
Draw
Bet
Warrant the firms full commitment
Be positionedambiguously
Technology importance
Cash in
Fold
Should be examined carefully
Reconsider its investments
Relative technology position
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Matching Business Technology Portfolios
Business
Technology
Attractiveness
Importance
B
A
A
B
Competitive position
Position
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Representative Technologies in a Firms Value
Chain
Transportation technology Material handling technology Basic product technology Machine tool technology Transportation technology Packaging technology Media technology Audio video recording technology Diagnostic and testing Information system
Inbound logistics Operations Outbound logistics Marketing sales Service
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Technology Life Cycle Competitive Advantages
Importance of Technologies for Competitive
Advantages
Life Cycle
Have not yet demonstrated potential for changing
the basis of competition.
Emerging Technologies
Have demonstrated potential for changing the
basis of competition.
Packing Technologies
Are embedded in and enable product/process. Have
major impact on value-added stream. Allow
proprietary/patented positions.
Key Technologies
Have minor impact on value-added stream common
to all competitors commodity.
Base Technologies
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Outline

• Introduction
• Key concepts concerning technological innovation
  and their interrelations
• The integration of technology with business and
  corporate strategy
• A framework for auditing and assessing the firms
  innovation capabilities
• Conclusion

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Innovative Capabilities Audit Framework

• Innovative Capabilities
• The comprehensive set of characteristics of an
  organization that facilitate and support
  innovation strategies.
• Business Unit
• Corporate

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Business Unit Level
Resource availability
Understanding competitors innovative strategies
and industry evolution
Understanding business unit technological environ
ment
Business unit innovative strategies
Business unit structural and cultural context
Business unit strategic management capacity
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Corporate Level
Resource availability and allocation
Understanding competitors innovative strategies
and multi-industry evolution
Understanding corporate technological environment
Corporate innovative strategies
Corporate structural and cultural context
Corporate strategic management capacity
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Outline

• Introduction
• Key concepts concerning technological innovation
  and their interrelations
• The integration of technology with business and
  corporate strategy
• A framework for auditing and assessing the firms
  innovation capabilities
• Conclusion

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Conclusions

• Leadership