Download - Book Acquisition
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Technology acquisition
Technology Management
Activities and Tools
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Discuss:
What are the decision criteria for
technology acquisition?
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Acquisition channels (1)
BUY Sponsoring university research
External R&D centers
Consultants
Licensing agreements
Vendors/ suppliersAcquiring machinery or the firm
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Acquisition channels (2)
MAKE
R&D
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Acquisition channels (3)
COLLABORATE
Consortia
Joint ventures Sub-contracting
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Make or buy or collaborate decision
depends on: (Chiesa and Manzini, 1998)
1) strength of the organizations own capabilities
(relative costs)
2) respective transaction and governance costs contract price, cost of information, monitoring
performance, committing specific assets, handlingcomplexity in reaching agreements
3) dynamic transaction costs costs of persuading, negotiating, coordinating, and teaching
outside suppliers
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There is no ONE best organizational form!
The firm is not only profit maker but
innovator so it should have profits and scalenecessary to finance the overhead expenditures
requried to anticipate change and create futurevalues.
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BUY option
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The reasons behind technology
acquisition
Limited resources
Time pressure
Complementary assets Protecting image
Diversification
Supporting internal technologiesAvoid development risks
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Expected resulting impacts of
technology acquisition
productivity quality
product development cycle
labor-management relations accuracy of the information flows
production costs
flexibility (volume, machine, process,..) maintenance costs
service performance
sales
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Steps in technology acquisition
Goal setting Technology & Impact assessment
Finding technology suppliers Acquisition channel
Choosing acquisition method Contract preparation and negotiation Technology transfer Managing long-term collaboration
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Collaboration option
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Open Innovation
Research Development Commercialisation
Core Market Focus
Company
Boundaries
Products in-sourced
(e.g. Co-branding)
IP in-licensing
IP out-licensing
Technology
Spin-outs
Ideas &
Technologies
Source: Chesborough 2003 and Docherty 2006
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What are the issues when
managing external suppliers and
alliance partners?
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Issues in network design:
Aim
Partners
Duration Contract
Management
Investment / Re-engineering Division of labour
Strategy
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How to decide on the type of network?
The objective of the collaboration
The content of the collaboration
The typology of partners involved
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The content of the collaboration (Chiesa
and Manzini, 1998):
1) Definition of the content
2) Firms familiarity
3) Relevance for the firms competitive adv.4) Technology life cycle
5) Level of risk
6) Appropriability of the innovation7) Phase of the innovation process
8) Level of assets specialization
9) Divisibility of assets
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P&G Case (1)
Collaborations: Open Innovation
(Sakkab, 2002)
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P&G Case (2)
P&G is a technology-rich company: 27000patents, 4000 unique titles and 3000 new patentseach year.
It invests $1.8 billion annually on R&D.
Even though P&G use less than 10 per cent ofits own technologies in company products
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P&G Case (3)
Internal website, 18000 innovators across R&D, Engineering,Market Research, Purchasing, and Patent Divisions.
600 websites for Global Project Teams
Individual problem-solving and connection-making websites for 20Communities of Practice.
Nearly 9 million documents on line, growing daily.
Automation and artificial intelligence
the latest in webcasting and satellite technology to create an internalInnovation News Network
Conducting a deal-making/technology trading expo over 2200 ideas for new products and important new uses of P&G and
external technologies
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Identification
Internal acquisition:
R&D External acquisition
New product
dev.
New process
dev.
Other projects
new product / service equipment / solutions
Exploitation
Selection
Acquisition
Outputs
Business
strategy
Learning
Purchase
Collaborative R&D
M&A
Protection