amar kjr nayak/ib/ximb

Amar KJR Nayak/IB/XIMB

America’s Best Offerings: Some Selected Examples

Product / Services Manufacturers

Amusement Parks ?

Anticholesterol drugs ?

Artificial heart valves ?

Bulldozers ?




Amusement Parks Walt Disney

Anticholesterol drugs Merck

Artificial heart valves St. Jude Medical

Bulldozers Caterpillar


DEVELOPMENT OF TECHNOLOGY A COMPARISON

Competitiveness of Nations

USDominance

Triadic ?

• Japan• W. Europe• U.S. ?

1945

1970

1990

2010

Source: Wharton Executive Program in Kitakyushu, Prof. Graham Mitchell, 2001


DEVELOPMENT OF TECHNOLOGY A COMPARISON

Competitiveness of Nations

USDominance

Triadic Global

• Japan• W. Europe• U.S.

• U.S.• Japan• SE Asia• Europe• E. Europe• S. America etc.

1945

1970

1990

2010

Source: Wharton Executive Program in Kitakyushu, Prof. Graham Mitchell, 2001




Car rental Avis, Hertz

Communication satellites General Electric, Hughes Aircraft

Fiber optics Corning

CT scanners General Electric




Fast food Burger King, McDonald’s, Pizza Hut

Geophysical equipment and services

Halliburton, Western Geophysical

Industrial controls Honeywell

Large tractors, combines

J. I. Case, Deere




Large aircraft Boeing

Management consulting Boston Consulting Group, Booz Allen, McKinsey

Massive parallel supercomputers

Intel, Thinking Machines

Pianos Steinway & Sons




Power boats Brunswickm Cigarette, Outboard Marine

Razors Gillette

Soft drinks Coca-Cola, Pepsi Co.

Ultra light Utility Helicopters

Robinson Helicopters


US Share of World GDP, 1950 – 1992Based on 1985 Prices

U.S. Share of World GDP, 1950-1992

39.8

3024.2 23.3 23.5 24.1

0

10

20

30

40

50

a b c d e f

Year

Perc

en

tag

e

a = 1950 b = 1960 c = 1970 d = 1980 e = 1990 f = 1992Source: National Bureau for Economic Research, March, 1997


R&D Facilities of Foreign Companies in USA

Industry Jap. Ger. Fran. Nether-

lands

Swiss Korea U.K. Canada Others

Computers 24 2 2 2 0 6 0 1 5

Comp. Software 35 3 0 2 0 1 8 3 1

Semiconductors 18 2 0 2 0 10 0 0 0

Telecom 16 4 2 0 1 1 3 3 4

Optoelectronics 10 2 0 0 0 0 3 0 5

HDTV/Electronics 33 5 3 1 1 5 9 1 3

Drugs/biotech 26 26 7 5 15 2 15 0 20

Chemicals/rubber 25 27 14 6 7 1 19 7 9

Metals 9 2 4 0 1 0 5 2 4

Automotive 31 8 2 2 0 4 0 5 2

Machinery 5 3 4 0 2 0 6 3 6

Instrumentation / medical devices

6 7 3 3 6 0 19 2 7

Food / Consumer goods, misc.

10 6 1 9 8 1 12 5 10

Source: 1998 Data, Wharton Executive Program


OTHER DEVELOPMENTS IN TECHNOLOGY

The cost of arriving late to marketPg. 274, Text 10

Design changes using concurrent engineering v/s sequential engineering

Reduction in lead times of product development: Japan, Europe & U.S.

Information and communications technologies (ICT)


OTHER DEVELOPMENTS IN TECHNOLOGY

Challenges & Opportunities

Internet Business – Hurdle of language to Japanese companies

Systematic Gathering, Organizing, Processing,

and Using of information (7/11 Stores)

Netherlands – Mobile Phones


International Strategy in Technology & R&D

SCIENCE V/S TECHNOLOGY

RESEARCH V/S DEVELOPMENT

Key Characteristic

PATH DEPENDENT


Evolution Process

Product Innovation -> Dominant Design -> Process Innovation

Technology as a strategic asset

New functions

New features

Greater reliability

Lower costs


Technology is one of the underlying reasons for the existence of a

product life cycle

Components of Technology Strategy

Technology Audit

Sourcing New Technology

Exploiting Technology

Protecting the Competitive Advantage


INNOVATION AUDIT

Innovation Process Audit: Length & Depth of Company Experience

Innovation Comparison Audit With Competition


SOURCING NEW TECHNOLOGYTechnology categories

Category Description Investment Level

Base Technological foundation of business; widely available to competitors

Needs little

Key Technologies with the greatest impact on competitive performance

Systematically built


SOURCING NEW TECHNOLOGYTechnology categories

Category Description Investment Level

Pacing Technologies in early development which have the demonstrated potential to alter the basis of competition

Selective investment

Emerging Technologies with long term promise to alter the basis of competition.

Monitored


Optimum entry methods for new technologies

Decreasing familiarity with technology

•Internal development

•Acquisitions

• Internal development

• Acquisitions

• licensing

•Joint ventures


EXPLOITING NEW TECHNOLOGY

Location of R&D

A qualified policy of centralization in R&D

Transfer of knowledge from host to home


EXPLOITING NEW TECHNOLOGY

Location of R&D

Modification of products developed by parents for local use

Transfer for organizational learning

(Methe & Yoshihava)


PROTECTING TECHNOLOGY

Patent

Exclusive right to the benefits of the technology (20 years in US)

Trade secret

Lengthy, Complex Contractual Agreements

Umbrella Contracts

Technology Strategy in Action


A Case

Sharp Corporation

http://sharp-world.com/worldwide/index.html

http://sharp-world.com/worldwide/index.html

SHARPAbout the Company

Establish in the year 1912 by Tokuji Hayakawa.

The name comes from an innovation, the "Ever Sharp" automatic pencil from 1915.

Tokuji Hayakawa began his business with just 50 yen -- equivalent to 150,000 yen in 1992 – including a 40 yen loan.

In May, 1949 the company was listed for the first time on the Osaka Stock Exchange.

In 1956 there were "three sacred treasures" in Japan: the washing machine, the refrigerator and the television

The company began setting up independent regional sales subsidiaries across Japan in 1958

In 1962, the company's first overseas sales subsidiary -- Sharp Electronics Corporation (SEC) -- was established in New York City.

Company’s revenue in the year 2005 was ¥ 2,539,859 million

SHARPProfile of SHARP Corporation

Business Creed Sincerity and Creativity

Established 1912

Capital Stock ¥ 204, 066 Million (March, ‘00)

Employees 60,200(April, ‘00) Domestic: 32,170 Overseas: 28,030

Revenue 1998 (ending March 1999) 2005 (ending March 2006)(Consolidated in million) ¥ 1,745,537 ¥2,539,859

SHARP

Development of Key Technologies that Support the Digital New Life21

Human Interface

Voice InterfaceImage Interface Technology – Content digitizing technology

Energy / Environments

Solar Cell Panel / Solar Cell Home Energy Supply SystemRecycle System – e.g. Recycling resin

Device

Electronics Devices – e.g. Semiconductor lasersMobile Communication Devices – e.g. Very low power consumption LSI for mobile gears

Network Technology

Home Network Technology – e.g. 1394 POF, MMAC, Millimeter-wave Image TransmissionMobile Network Technology – e.g. Application specific terminalsNetwork Service Technology

Next Generation Display

-- e.g. Next generation HR-TFT (reflective LC display) for Mobile Application

SHARP

ConsumerProducts

67%

Information/CommunicationProducts 24%

Devices 9%

ConsumerProducts

48%


Devices27%

ConsumerProducts

40%


Devices28%

ConsumerProducts

35%

Information/Communication

Products32%

Devices33%

ConsumerProducts

27%

Consumer Products

28%


Products36%

Devices36%


Products36%

Devices37%

1985 1995 1998 1999 2001 2005

Transition of Business Structure

Revenue¥1,216,048

Mil

Revenue¥ 1,650,708

Mil

Revenue¥ 1,745,537

Mil.

Revenue¥ 1,854,774

Mil.

Revenue¥ 2,012,858

Mil.

Revenue¥ 2,539,859

Mil

SHARP

New Spiral Evolution of LCD Technologies, Devices and Products

Products/Systems

LCD View CamLCD Projector

Wall – mount TVColor Zaurus (Color PDA)Mebius (Color note PC)

Thin calculatorsWith LCDs

Scientific calculators, word processorsPocket computers, electronics translators.

Development of MultimediaNext – generationAV Communication

Information systemsHDTV

DSM LCDsEarly 1970s

Next generation LCDsFilm LCDs Low temperature

P-Si TFTFerroelectric LCDs

Plastic LCDs

PALCCGS TFT

TN LCDs(dot-matrix)

STN LCDs DST LCDsLarge-screen TFT color LCDs

(14’’ 17’’ 24’’)

Thin

Motion pictures

Large screen/High definition

High speedResponse

Early 1980s ~ 1990s

Early 1970s

~ 2000 ~

Late 1970s ~ early1980s

~2000s~ Late70s~early80sLate 80s~early 90s

Products/systems

colorLarge screen

Thin/light weight

Low price

High contrast Wide viewing angle

Low drive voltageLow power consumption

Early 1970s

Low power consumption

DevicesProducts/Systems

SHARPR & D Meetings

Corporate Management Meeting

Corporate R & D Meeting

Technical Review Meeting

“GLOBAL BADGE” SPECIAL – PROJECT TEAMS

[Business Operation Groups][Corporate R & D Group]

R & D Strategy

Mid to Long TermBusiness Strategy

R & D Strategy Meeting

Laboratories/Business DivisionsLaboratories

R & D Promotion Meeting

R & D Plan Reviewing

Mid to Long Term R & D Strategy

SHARP“GOLD BADGE” Special – Project Team

OBJECTIVE

ORGANIZATION

TERM

CHARACTERISTICS

“Gold Badge” Special – Project Team were established in order to bring strategicProducts into the marketplace as fast as possible

•Operated by one leader per team.•Bringing members from Corporate R & D Group, Production Technology Group, Products Groups, and Components Groups.•Integrating relevant Sharp technologies.

•The team receives a top priority in the allocation of manpower and facilities.•Members wear a badge the same as the president’s badge (gold color)•Operated by Sharp headquarters’ budget.

1 ~ 1.5 Years

SHARPGlobal R & D Activities

R & D activities in Japan

•R & D for key technologies which will contribute to Creating a whole new market arena.

•Development of Highly Value – added products

Sharp Laboratories of America

R & D of new technologies utilizing the most advanced Technology of American in the multimedia field based on its infrastructure and market needs

Sharp Laboratories of Europe

Contributing to creating new business through R & D Activities utilizing advanced key technologies in the U.K and Europe

Example•Next Generation LCD display•Multilingual Machine Translation System

Example•Digital Image Processing•Multimedia Communication Technology•Information Processing Technology

R & D Strategy Meeting, Joint Development Project, Global Interchange of Human Resources and so forth

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