PROJECT-DRIVEN TECHNOLOGY STRATEGY: KNOWLEDGE <=> TECHNOLOGY
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1 Project Management Institute PROJECT-DRIVEN TECHNOLOGY STRATEGY: KNOWLEDGE <=> TECHNOLOGY Robert N. McGrath, PhD, PMP
2 Table of Contents List of Figures List of Tables and Exhibits List of Abbreviations and Acronyms Acknowledgements Introduction ix xi xiii xv xvii PART I Technological Innovation and Evolutionary Theories 1 Overview.' Chapter 1 Entrepreneurship and Technological Innovation 3 Introduction 3 Joseph Schumpeter Entrepreneurship ' 4 Technology and Competence 7 The Locus of Innovation ; 8 Schumpeter and Project Management 9 Summary...:' 10 Chapter 1 Takeaways 10 Questions for Discussion : 11 Chapter 1 Appendix Entrepreneurship in Bureaucratic Settings 11 Chapter 2 Technology Life Cycles 17 Introduction 17 Technology S-Curves 17 Technological Discontinuities 19 Technology Cycles 20 Summary ; 23 Chapter 2 Takeaways 23 Questions for Discussion TTTTT 24 Chapter 3 Product Life Cycles 25 Introduction ; 25 A Marketing View of Technological Innovation 26 Performance/Price Ratios 26 The Product Life Cycle (PLC) 27 New Product Development [ 28 The Introduction Phase 28 Market Adoption and Diffusion '. 30 Relative Advantage of the Product : 30 Compatibility With Existing Experiences and Values
3 IV Complexity of the Technology 31 Divisibility 31 Communicability 32 The Growth Phase 32 Key Marketing Factors 32 Production Issues During the PLC 33 Forecasting 34 Facility Capacity and Location 34 Process Selection Z 36 Facility Layout 37 The Transition to Maturity and the Maturity Phase 38 The Decline Phase, Summary 40 Chapter 3 Takeaways 40 Questions for Discussion 41 Chapter 3 Appendix Technology-Driven Production Cost Structures 41 Chapter 4 Industry Life Cycles 45 Introduction 45 Industry Life Cycle 47 Introduction Phase 47 Growth Phase 48 Standards and Dominant Designs, Revisited 49 Transition to Maturity and Industry Maturity 50 Industry Decline : 51 Disruptive Innovation and Industry Rejuvenation 51 A Holistic View of Technology, Product, and Industry 54 Technology Emergence 54 Appropriability Regime 55 Era of Ferment: Dominant Designs Re-revisited 55 Collateral Assets 56 Regulation and Government Intervention 56 Communication Among Consumers and Producer 56 Era of Incremental Change..56 Summary 56 Chapter 4 Takeaways ;...57 Questions for Discussion Chapter 4 Appendix Information-Dense Products and Network Externalities Part II Strategic Management and Technology 61 Overview 61 Chapter 5 Sustainable Competitive Advantage 65 Introduction 65 Strategic Management Theory and Technology 65 The Prevailing Executive View 66 Business strategy 66 Vision and Mission." 68 Terms of Value 69 Value 69 Value-Added Value Chains 70 Supply Chains 70
4 Monopoly and Market Power Summary Chapter 5 Takeaways 73 Questions for Discussion 73 Chapter 5 Appendix Competitive Advantage 74 Chapter 6 Strategic Analysis 77 Introduction 77 Five Economic Forces that Structure Industry Profitability.7 78 Rivalry 79 Bargaining Power of Buyers 80 Bargaining Power of Suppliers 80 Threat of Entry 80 Threat of Substitution 81 Recap 81 The Resource-Based View...: 82 Into the Black Box 82 Competence and Core Competence. 83 Capabilities and Routines 84 Core Rigidities and Dynamic Capabilities 84 RBV Analysis ; 86 Summary 87 Chapter 6 Takeaways r. 88 Questions for Discussion 89 Chapter 6 Appendix Adding Value Throughout a Supply Chain 89 Chapter 7 Supply Chain Organization 93 Introduction : Costs of Organizing. 94 Vertical Integration 95 Opportunism and Agency 96 Asset specificity.- 96 Adverse selection 96 Moral hazard 97 Supply Chain Competition: Firm-Level Appropriation Supply Chain Collaboration: Supply Chain Appropriability ; Rationales for Contractual Choices 102 Summary Chapter 7 Takeaways Questions for Discussion 105 Chapter 7 Appendix Competing Supply Chains 105 Part III Business Strategy and Project Strategy, 107 Overview 107 Chapter 8 Capitalism and Capital Appreciation 109 Introduction 109 Economic Philosophy and Technology 110 Capital Projects and Return on Investment Ill Economic Value Added r. 113 Summary Chapter 8 Takeaways 115 Questions for Discussion 115
5 VI Chapter 9 Capitalizing Projects 117 Introduction 117 Determining the Need for Project Management 118 Business Plan vs. Business Case 120 Capital Structure 121 Capital Asset Pricing Model and the Project Hurdle Rate 126 Payback vs. ROI 131 Appraising Projects in Progress 132 The Venture Capital Model ^ 132 Phase Gates 133 Projects as Options 133 Project Funnels 134 Summary 135 Chapter 9 Takeaways 135 Questions for Discussion 136 Chapter 9 Appendix Business Case Format (Heerkens, 2006) 136 Chapter 10 Project Management Knowledge Areas Introduction 139 Project Management and Technology Strategy 140 Project Integration Management 144 Project Charter 144 Statement of Work (SOW) 145 Project Management Plan 145 Change Control 145 Project Scope Management 145 Project Scope Statement 146 Work Breakdown Structure 146 Project Time Management: Schedule and Critical Path 147 Project Cost Management: Budget and Earned Value 148 Summary 150 Chapter 10 Takeaways 151 Questions for Discussion 151 Chapter 10 Appendix Project Management Institute/PMBOK Guide Terms and Definitions ' 152 Chapter 11 Project Management Knowledge Areas II. ; 155 Introduction 155 Project Quality Management 156 Project Human Resources Management 157 Bureaucracy 158 The Functional Organization 160 Pure Project Organization 160 Matrix Organizations : 160 The Project RAM 162 Project Communication Management : 162 Codified and Tacit Knowledge 163 Project Risk Management 165 Reliability as a Management Principle Risk Strategies 168 Project Procurement Management :..169 Summary 171 Chapter 11 Takeaways 171
6 vn Questions for Discussion 172 Chapter 11 Appendix Large Capital Projects 172 Chapter 12 Project Strategies for Generic Competitive Advantage 179 Introduction 179 Generic Advantage of Projects 180 Differentiation 181 Low Cost Best Cost r. 191 Focus as Moderator 192 Summary 193 Chapter 12 Takeaways 193 Questions for Discussion 195 Chapter 12 Appendix Deliberate vs. Emergent Strategy 195 Part IV Managing Multiple Projects 199 Introduction 199 Chapter 13 Dynamic Innovation Capability 201 Introduction Organization Theory and Project Management Practice 202 The PMI View 202 The Strong Matrix 204 The Weak Matrix 205 The Project Management Office 206 The PMO as a Dynamic Capability 210 The Project Knowledge Management Organization (Project KMO) 211 Project Management Maturity 212 Summary 212 Chapter 13 Takeaways : 215 Questions for Discussion 216 Chapter 13 Appendix Demystifying Synergy 216 Chapter 14 Corporate Renewal 219 Introduction 219 The Corporate View 220 Stakeholders, Stockholders, and the Board of Directors 221 De-Maturing 223 Internal Corporate Venturing 224 Summary 228 Chapter 14 Takeaways 228 Discussion Questions 228 Chapter 15 The Global Context 231 Introduction 231 Globalization Forces 232 Unlimited Globalization 232 Limited Globalization 234 Common Critiques 234 Advantage in a Knowledge-Driven World 235 Stages of Development 235 Productivity 237 Finding Competitive Advantage in Comparative Advantage 238
7 Strategies 240 Challenges for Project Management 241 Summary 243 Chapter 15 Takeaways 243 Questions for Discussion 244 Chapter 15 Appendix Hypothetical Supply Chain 244 Chapter 16 Summary and Conclusion 247 Appendix Study of Electric Vehicles Bibliography 275 Index 287 vm
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