B222A. Management technology and innovation
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1 B222A Management technology and innovation Unit Technology is represent source of Competitive advantages Growth for companies Consideration of multiple functions Challenge factors of Technological Management (TM): 1- increasing cost 2- Complexity 3- Pace (fast) of technological advancement 4- Diversity of technology sources 5- Globalization of competition تحانف 6- Alliance 7- Impact of information technology Companies must access their technology management (TM) to compete successfully by address how: 1- Recognize technological opportunities and threats and convert them into sales and profit 2- Use existing technology by effective translation of strategy into operational performance 3- Differentiate products using cost-effective technological product and process solutions 4- Identify and evaluate alternative and emerging technology that impact business and society 5- Reduce the risks unfamiliar technology 6- Use technology that supports improvement in process and information 7- Decrease the time of new product and services through effective identification and provide competitive advantages الملكية الفكرية 8- Protect and use &invest intellectual property Six Key questions must be answered to realized technology investment: 1
2 1- How do we use our technology assets? 2- How do we identify technology that will have a future Impact on our business? 3- How do we select technology for business benefit? 4- How should we acquire new technology? 5- How can we protect our technology assets? 6- How can we learn from our experience, improve our ability? Term Definition 1 Technology management (TM) It is the management of technological capabilities كفاءج to shape and accomplish the strategic and operational objective of an organization. تنسيقcoordination It is include planning, directing, control and of development and implementation of technology capabilities. 2 Intellectual Property (IP) الملكية الفكرية It is an umbrella term for various legal entitlements that attach to certain names, written and استحقاقات قانونية recorded media and innovations. 3 The TM Framework It considers technology as a resource and emphasizes the dynamic nature of the knowledge flows that must occur between the commercial and technological functions in a firm, linking to the strategy, innovation and operation process. 4 Activity It is used interchangeably with process or routine and is associated with the concept of capability 5 Technology Capabilities It consist of dynamic and operational capabilities that are a collection of routines activities to implement تنفيذ and coordinate the variety of tasks required to manage technology 6 Dynamic Capabilities قدرات ديناميكية Are the ability to reconfigure تكوين,إعادة redirect, transform and appropriately shapes and integrate existing core competencies الكفاءات with external resources and strategic and complementary مكمل assets to meet the challenges تقليد rapidly changing competition and imitation 7 Core Competencies They are competencies that are applicable to a wide variety of product and business markets are not imitable. 8 Complementary Assets األصول مكملة Are the assets, infrastructure بنية التحتية or capacities needed to support the successful commercialization and marketing of technological innovation, other than those assets fundamentally associated with that innovation. 9 Innovation Management It is discipline of managing innovation process, so that novel ideas within an organization can be successfully.نفذت implemented 10 Capability It is ability to do something (consisting of strategies and 2
3 operation activities) 11 A routine Describes a repetitive pattern of activity, a course of normative,standardized actions or procedures that are followed regularly 12 Process It is involve the transformation of inputs into output in order to achieve a managerial objective. 13 Communication Is a process of introducing a new product/services into market 14 Innovation Is doing something new such as a product, process or services including newness in the firm. It may refer to incremental,تراكمي radical جذري and revolutionary changes in thinking, technologies, products, processes, markets or organizations. 15 Technology Innovation It refers to technologically new products, services and processes. Markets or organizations. 16 Tools It is include devices for supporting action/particle application and frameworks for conceptual understanding. 17 Acquisition It is how a company obtains the technologies valuable for its business, based on the buy collaborate-make decision 18 Exploitation Entails commercialization, but first expected benefits need to be realized through the effective implementation, absorption and operation of the technology within the firm 19 Identification Is necessary for all sorts of technology-enabling, critical, pacing or emerging 20 Learning It is critical part of technology competency 21 Protection Aims to protect the intellectual assets within a firm 22 Selection Takes account of company-level strategies an issue, which requires a good grasp of strategic objectives and priorities. 23 Diversification Is a marketing strategy used by a company aiming to increase profitability through greater sales volume obtained from new products and new markets? 24 Knowledge management (KM) KM collects and manages critical knowledge in organization to increase its capacity for achieving results. 25 Patent Analysis It is a tool to convert statistical information related to patents into useful information for specific need 26 Portfolio It is centralized management of one or more portfolios Road mapping Provide an integrating framework that summarize at a high level (on one page) the various strategic elements that must be aligned to achieve the overall organizational goals 27 S-curves Are used to illustrate the life cycle of a phenomenon that starts off slowly, grows rapidly, taper, or level off and then finally declines. 28 The stage-gate Process is a project management tool for new product development 3
4 29 Value Analysis Value engineering is an interdisciplinary problem-solving activity for improving the value of the functions required to accomplish the goal or objective of any product, process, services or organization. 30 Open Innovation System It refers to how, in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but can buy or license processes or inventions from other companies. TM is attempts to combine 1- hard aspect of technology science and engineering 2- & soft dimensions such as processes enabling effective application Technological changes are continuously creating new challenge and opportunities for new product, service, process and organizational development and industrial diversification. An appropriate understanding of TM is dynamic capabilities theory. Three main reasons explain why dynamic capabilities theory could enhance تؼزيز the understanding of TM (technology Management) 1- It is not specific technological innovations but it is a capability to generate a stream of product, service and process changes that matter for long term firm تدفق /تيار performance. 2- It is possible to observe the dynamics is taking place in the organization of firm since the unit of analyze is the capabilities 3- Dynamic capabilities theory considers the market or product as object of strategic reconstruction انتشكيم.إػادج Thus emphasize the key role of strategic management in إػادج تكوين (restructuring) and reconfiguring دمج appropriately adapting, integrating internal and external organizational skills, resources and functional competencies towards a changing environment. 4
5 Technology capabilities improve or develop products, processes and existing technology as well as generate new knowledge and skills in response to the competitive business environment. Capability might be dynamic or operational. Dynamic capabilities build, integrate or reconfigure تكوين,إػادج operational capability. Which it defines as: A high level routine (collection of routines) that together with it implementing input flows confers upon an organization management a set of decision options for producing significant outputs of a particular type. Technology management is combinations of resources and processes can be developed, deployed and protected for each TM activity. A Collection of activities to design, produce, deliver and support its products and services. Individual activities are a reflection of their history, strategy, resources, approach to implementing their strategy and underlying economic of activities themselves. Dynamic capabilities are certainly distinctive in their details; specific dynamic capabilities show common features that are associated with effective processes across firms. The TM Framework to set the context: TM discipline نظام has developed from research and development (R&D) to strategic technology management There are three dimensions from research and development (R&D) to strategic technology management. 1. Scope (R&D) corporate and strategic focus 2. View technology (as tools, system or source of value in business and associated issue such as product development of other technologies) 3. Integration of technology Innovation theme is present in almost all areas of management as well as in TM. However, the dominance of one topic starts to misrepresent the TM field. Innovation management tools based on understanding that innovation management is related to 5
6 six specific areas in management of technological innovation. 1. R&D R&D central lab known (global R&D Centre s, global innovation Centre s) 2. New product development 3. Commercial of innovation 4. Operations and production 5. Technological collaboration 6. Technology strategy The central idea behind open innovations is a world of widely distributed knowledge, companies cannot produce and tolerate تحمم to rely entirely on their own research, but should instead buy or license processes or inventions from other companies. Internal inventions is not being used in a firm s business should be taken outside the companies. الفوائد الجانبية through mechanism such as licensing and spin-offs The fact of Innovation is not limited to technology. Because, For example, Amazon s offering of book delivery over the internet was service related to innovation. So, the innovation management is the successful implementation of novel ideas within organization Technology innovations are increasingly intertwined تتشاتك with other innovation types. There is a need to have a TM framework that will draw boundaries and clarify the relationships between TM and other management principle TM framework will draws boundaries and clarify the relationships between TM and other management principles. TM framework is shown in figure 1.1 on page 7. TM activities: اكتساب 1. Acquisition استغالل 2. Exploitation 6
7 3. Identification 4. Learning 5. Protection 6. Selection Three core business process: 1-strategy 2-innovation 3-operations TM framework offer many advantages: 1. TM activities might operate in any business process, department or business system level. 2. It also indicates that the specific TM issues faced by firms depend on the context (internal &external). (Organizational structure, systems, infrastructure, culture and structure) 3. Time dimension concerns synchronizing مزامنح technological developments and capabilities with business requirements. 4. TM framework is in line with dynamic capabilities framework. 5. Framework considers technology as a resource. Why the technology base of a company represents the technological knowledge that needs to be turned into products, processes and services through the technological capabilities. 6. The framework emphasizes the dynamic nature of the knowledge must occur between the commercial and technological functions in the firm, linking to the strategy, innovation and operational processes. An appropriate balance between market Pull (requirement) and technology push (capabilities). Managers need to link markets and technology through various mechanisms (including traditional communication channels, cross-functional teams, meeting, management tools, business processes, staff transfers and training) 7
8 TM activities behind technological capabilities: It is focuses on management of technology to be a professional task in micro-level. The first step is to use the framework and dynamic capabilities. The firm s knowledge base includes it technological competencies as well as its knowledge of customer needs and suppliers capabilities. These competencies reflect individual skills and experiences as well as distinctive way of doing thing inside the organization. Capabilities are gradually accumulated متزاكم through various processes, procedures, routines and structures. Managers can benefit from TM framework and its grouping of TM activities. Particular circumstances, resources and purpose. TM activities are to achieve four key learning objectives: تخصيصه من قثم أي 1-the core set of generic TM activities can be customized by any organization (manufacturing or services) and applicable at any level (R&D unit, business unit and at any منظمح size either SMEs or large firms) 2-Knowing the main TM activities can reduce confusion between TM and other management activities (Innovation management) 3-Linear and limited perceptions اإلدراك on TM activities can be replaced with a dynamic view that emphasizes the link between activities. 4-managers as well as engineers and management students who want to pursue careers in TM can consider what skills and knowledge are necessary to manage technology. Brief literature overview: five generic TM processes operate model: (five-process model) اكتساب 1. Acquisition استغالل 2. Exploitation 3. Identification 8
9 4. Protection 5. Selection Six generic TM activities اكتساب 1- Acquisition It is how a company obtains the technologies valuable for its business, based on the buy collaborate-make decision. Technologies might be developed internally, or form of collaboration and external developers. استغالل 2- Exploitation Needs and require commercialization, but first expected benefits need to be realized through the effective implementation, absorption وامتصاص and operation of the technology within the firm. Technology transfer from external company to internal manufacturing department. Exploitation process includes incremental developments,تراكمي process improvements and marketing. 3- Identification Is necessary for all sorts of technology-enabling, critical, pacing سزػح or emerging at all stages of development and market life cycle. Identification includes search, auditing, data collection and intelligence process. 4-Learning It is critical part of technology competency. It is involves reflections on technology projects and processes carried out within and outside the firm. 9
10 5-Protection تسجيم تزاءاخ االختزاع It is aims to protect the intellectual assets within a firm such as patenting &staff retention. It is Knowledge and expertise entrenched تزسيخ (link) in products and manufacturing system. 6-selection Takes account of company-level strategies an issue, which requires a good grasp of strategic objectives and priorities developed at business strategy level. A TM capability does not include the innovation capability for two main reasons: 1-innovation capability is ability to shape and manage multiple capabilities that are integrated within the innovation system. Depending on innovation type, that required technological knowledge set and the way they interact with each other will differ as well. For example; acquisition Innovation activity deals with product, service, process and organizational innovations in a company. 2-TM activities will change over the life cycle of a firm for many reasons 1- Product diversification 2- Complexities of technology Nonlinearity of firm activities: TM activities corresponding to each technology capability are presented as individual process like pieces of a jigsaw puzzle. نؼثح تزكية قطغ The aim of a jigsaw puzzle is to avoid enforcing a hierarchy of processes and avoid one model fits all. a jigsaw puzzle representation is emphasize TM as Art, where technology managers need to identify which processes are required and find ways of making them work properly together. 10
11 Any process might be starting point the integer s number of TM activities to take place. The flexibility of a jigsaw puzzle concept indicates that each organization will have a specific element to show their own individual picture. For example, large organization considered with R&D activity which it includes all elements in the TM activities model. But, if organization without R&D and the innovation is incremental that corresponding activities will be different. Innovation models focus on two critical concerns: 1- Their static nature and their deterministic approach 2- The non-linear feature of innovation activities has been highlighted. TM model avoids these two criticisms: The new models help to draw the boundaries between different disciplines and TM activities by proposing two categories: 1- primary/core 2- supporting activities Activities supporting TM: It is the relationship between TM and other management activities (supporting activities). 1- Project management It is a managerial activities associated with all types of projects such as (product development). Each TM activities has project. 2- Knowledge management (KM) It is widely used term for managing the knowledge accumulated in a company including nontechnology-based knowledge. Knowledge constitutes on recognition (know-what), capacity to act (know-how) and understanding (know-why). All TM processes are involved knowledge and adopting KM practices. 11
12 3- Innovation management It is involved with various innovations being financial, organizational and technological. It share common ground with TM or converting all sorts of innovation. Supporting activities will vary from case to case depend on the company size, objectives and technology characteristic. TM Tools: TM tools are used in carrying out TM activities. It consider of using a variety of terms used interchangeably such as; (tools, techniques, procedures, processes, models, maps, frameworks) Definition: It is include devices for supporting action/particle application and frameworks for conceptual understanding. Eight categories of TM methodologies tools (list of TM tools) 1- TM framework 2- General and policy research 3- Information systems 4- Information and communication technology 5- Artificial انذكاء االصطناػيintelligence / expert systems 6- Database technology 7- Modeling 8- Statistic technology These categories are connected with actual application. List of applications mentioned for the TM framework category are: 1- Computer integrated manufacturing 2- Construction project management 3- Business process re-engineering 4- Project appraisal 5- Product design 6- Space disaster management 7- Technology assessment 8- Process design 9- Engineering design 10- Knowledge management 12
13 Six headings on the basis of different TM tools functions in the company: (Temaguide list) ) انقياسbenchmarking 1- Tools for external information analysis (technology forecast and 2- Tools for internal information analysis (skills & innovation audit) 3- Tools calculated workload and resources needed in projects (project management and portfolio سنذاخ تجاريح management) 4- Tools to manage working together (interface management & networking) 5- Idea creation and problem solving techniques ( creativity and value analysis) 6- Tools related to improving efficiency and flexibility (lean thinking and continuous improvement) Problem in understanding TM for two reasons: 1- Level of tools applicable to TM activities make difficult to grasp 2- The wide chain of tools from common and collective analysis used in market analysis Four major disciplines show the wide chain سلسلة of TM: 1- Management of technology-centered knowledge Management procedures associated with use and invest of technological resources. Examples: technology acquisition, exploitation استغالل transfer, new product development, project management, entrepreneurship, technology forecasting and planning, innovation and R&D management, knowledge management, IP management and strategic management of technology. 2- Knowledge of corporate functions: It is classic business functions such as; marketing, finance accounting, operation, management, information systems, human resource management and business strategy. 3- Technology centered knowledge Topics are related to specific technology fields or critical technology areas. Examples: information and computer technology (ICT), essential and emerging technologies, manufacturing technology and production technologies. 13
14 4- Knowledge of supporting discipline It is important supporting such as; National policy framework, economics, general system theory, risk analysis, environmental management, ethics human behavior, quantities methods, legal issues, research methods and statistics. Three criteria as the basis for selecting the tools suggested in its study: 1- The level of standardization of a tool 2- The level of knowledge involved in the process 3- The free accessibility of a tools (No restriction of copyright or license) Objective best-practice model: It is a concept use, flexible, allowing best fit to current situation and need of the company to integrate with other tools, processes and systems, result in quantifiable improvement and support communication and buy-in. Thus we believe that basis of describing the six core tools of TM is Simplicity and flexibility of use Degree of availability Standardization level Dynamic in nature Applicable in all TM activities Six Tools listed in the table page Patent analysis 2- Portfolio management 3- Road mapping 4- S-curve 5- Stage gate 6- Value analysis Each tool with two major activities to which it widely applied 14
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