tm -1 technology management & competitive advantage jason c. h. chen, ph.d. professor of mis...
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TM -1
Technology Management & Competitive Advantage
Jason C. H. Chen, Ph.D.Professor of MIS
School of Business AdministrationGonzaga UniversitySpokane, WA [email protected]
TM -2
Environmental Drivers
EnvironmentalDrivers
Timecompression
TechnologyIntegration
Globalization
TM -3
Management Decision and Competitive Advantage
Value Drivers
ManagementDecision
Speed
Value
to learn, adapt,innovate
( )
Technology
Innovation
Competitive Advantage
Revenue generation
Costreduction
Costavoidance
Creating Value & Agent of Change
TM -4
Views on Technology andTechnology Management
Technology(forefront of the change)
(productivity gains)Technology Management
1. accomplish goals of an organization2. development of technological capability and its implementation or deployment in products and processes3. link to other management activities, e.g., marketing or manufacturing
Definition: Technology management focuses on the principles of strategy and organization involved in technology choices, guided by the purpose of creating value for investors.
1.Opportunity2. Appropriability3. Transferability4. Resources
TM -5
Views on Technology andTechnology Management (cont’d)
Technology(forefront of the change)
(productivity gains)Technology Management
1. Market-based2. Resource-based
1. Value chain2. Industries as competitive domain3. Forms of technological change4. Value creation
ComplementaryPerspectives
KeyConcepts
TM -6
Views on Technology andTechnology Management (cont’d)
Technology(forefront of the change)
(productivity gains)Technology Management
ComplementaryPerspectives
KeyConcepts
Value
TM -7
Table 1.1 Market-based and Resource-Based Views
Dimension Resource-BasedMarket-Based
Drivers of strategy Customers and competitors
Unique resources
Derivatives Resources Market opportunities
Strategy profile Positional Core competencies
Appropriate context Mature markets Dynamic markets
TM -8
Figure. Evolution of Management of Technology
1950 1970 1980 1990s & Beyond
R&DManagement
New venturedivisions
Linking tobusiness
Broader visionof technology
Outsourcing
Tools to assessvalue
Internal markets
Allocation of Funds to projects
Scientists &engineers
Leadership
Innovation Management
Differentorganizational arrangements
Managementof
Innovation
TechnologyStrategy
Value-BasedManagement
Era of Plentiful Resources Era of Accountability
Chief Technology Officer/Chief Information Officer/Chief Value Officer
R&D Manager
TM -9
Figure. Management of Technology
WHY
HOWWHAT
Management of Technology
TechnologyStrategy
Organization &Management
Purpose: value-driven
TechnologyChoices
principle principle
guided by
guided byguided by
Deployment in Products/Services
focus
Development of Technological Capability
focus
TM -10
Figure: Levels of Knowledge/Development
Intuitive/Tacit
Codify,Verify
Develop
Physically EmbodiedProducts, Services and Processes
ScienceFormalized Knowledge
TM -11
FIVE COMPETITIVE FORCES MODEL
THE FIRMTRADITIONAL COMPETITORS
NEW MARKET ENTRANTS
SUPPLIERS
SUBSTITUTE PRODUCTS & SERVICES
CUSTOMERS
Threats
Bargaining power
N
TM -12
Value Chain Model and its Activities
Inbound Logistics
OperationsOutbound
Logistics
Marketingand Sales
Services
Administrative and Other Indirect Value Added
Administrative and Other Indirect Value Added
Primary Activities
Support Activities
TM -13
Manufacturing Industry Value Chain Product and Service Flow
Research and Development
EngineeringProduction
and Manufacturing
Marketing Sales and
DistributionService
Primary Activities
Dr. Chen, The Trends of the Information Systems Technology
Administrative and Other Indirect Value Added
Administrative and Other Indirect Value Added
Support Activities
N
TM -14
Manufacturing Industry Value Chain Product and Service Flow
Research and Development
EngineeringProduction
and Manufacturing
Marketing Sales and
DistributionService
Primary Activities
Dr. Chen, The Trends of the Information Systems Technology
Administrative and Other Indirect Value Added
Administrative and Other Indirect Value Added
Support Activities
N
TM -15
The Value Chain
Com
petitive
Adv
anta
ge
(Value)
N
TM -16
Examples of the Value Chain
NDr. Chen, The Trends of the Information Systems Technology
TM -17
Views on Technology andTechnology Management (cont’d)
Technology(forefront of the change)
(productivity gains)Technology Management
ComplementaryPerspectives
KeyConcepts
Value
IT Planning: The Relationship Between Business, IS, and IT Strategies
TM -19
Project Management and the Role of CTO/CIO
Value Drivers
ManagementDecision
Speed
Value
to learn, adapt,innovate
( )
Technology
Innovation
Competitive Advantage
Revenue generation
Costreduction
Costavoidance
Creating Value & Agent of Change