Definition and importance of technology and innovation management Pun-arj Chairatana NoviScape Group pac@noviscape.com
SKILLS ACQUIRED • • • • •
A critical knowledge of the key issues related to technology and innovation management discipline An appreciation of why technological innovation management is so difficult and complicate. An understanding of emerging innovation management issues, and the relationship between scientific inventions, innovation, and the market. An understanding of the differences between tangible and intangible assets and investment in the transforming knowledge based economy An understanding of issues related to new technology and new combination of emerging businesses.
SKILLS ACQUIRED • An appreciation of the key organizational characteristics for effective technological and innovation management. • An appreciation of the innovative organization, and infrastructure. • An understanding of issues related to innovation in turbulent versus changing institutional, market, and technical environments. • Appreciate special problems associated with innovation in entrepreneurial environments and networks of small and big firms.
MODULE LECTURE TIMETABLE Establishing The Framework
Time
Week 1-2 1-15 Jun 2003
Definition and importance of technology and innovation management
6 working hours
Week 3-4 16-29 Jun 2003
Innovation and Technological change
6 working hours
Week 4-5 15 Mar 2003
Firm, Technology and Organisational Change
6 working hours
Week 6-7 22 Mar 2003
Innovation & Entrepreneurship
6 working hours
Week 8-9 29 Mar 2003
Technology Strategy
6 working hours
Week 10-11 5 April 2003
R&D Management
6 working hours
Week 12 3 May 2003
Final Examination
Notes
Exam
Content • The new challenges of technology & innovation management • Key issues in technology & innovation management • Innovation as management process • Q&A
Paradigm Shift of economic growth Easy to reproduce
Difficult to reproduce
Tangible Assets Production capital
Natural capital
Intangible Assets
Social capital
Intellectual capital
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1. What is innovation? • Innovation (To Exploit new ideas for economic and social benefits) ≠Invention (To Conceive the idea recombine existing resource)
• Entrepreneur ≠Capitalist (Success on debts) • Entrepreneur ≠ Manager (May “Settle down”)
3. Innovation as management process • TIM involves trying to manage something which is inherently complex and risky • Some of these complex systems have been described as a different form of industrial production and services, requiring different management approaches • Risk is determined by a number of considerations • Important factors in the TIM include unpredictability, cost, and appropriability.
TAXONOMY OF INNOVATION INNOVATION
Tangible Innovation
Product Innovation
Technological Process Innovation
Intangible Innovation
Process Innovation
Organisational Process Innovation
The Uncertain Worlds Technological uncertainty
Technical Problem-solving To Enter/capture Established Market
2. “Large Modern corporation” (internal Economies)
In
3. “Systems/Networks of innovation” (External Economies) High
“Custom Tailor”
Low
Risk
“The Representative Firm” “Rational Economic man” “Static” “Predictable” “Faceless Markets”
Risk
n io at ov n
Stable/ ”Ready made” Markets
1. “Heroic Entrepreneur”
Stable/Standardised Technology
Commercial Uncertainty (Market creation)
Creating/Securing New Market For “old” Technology
Environmental uncertainty and organisational response New response needed
Placid environments and stable industrial structures which new entrants can exploit through technological change to ‘re-write the rule of the game’. Examples include telephone banking and insurance
Fast changing environments – e.g. IT, biotechnology, etc. where major re-drawing of industry structure is taking place. Innovation is essential for old Players to survive, but new opportunities also emerging High uncertainty
Low uncertainty Placid environments where need for innovation may not be perceived as high. Stable conditions and market structures may provide a sense of false security since new technology or other changes can bring about industry transformation. Risk is that by the time the need for Change has been identified it may be too late for existing players to react
Fast changing environments where it appears that existing players can continue to dominate through applying proven responses. Risk of being caught out by this approach – for example, IBM with the shift to networks and decline of mainframes, and the ‘Big 3’ US Japanese competition
Old response appropriate Source: Managing Innovation: Integrating Technological, Market and Organisational Change, 1997
Key Issues in Technology &Innovation Management ภภŕ¸
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Sources of Innovation Research & Development
Suppliers
Organisational
Alliances
Innovation But It
Spin Offs: • Venture Creation • New Business Units
Customers
The need to manage technology and innovation • Today’s environment is rich in opportunities for technological change. It is a time of technological revolution. • Success with technological change is by no means automatic. • Failure rates are often high! • Simply having the technological available and money to pay for it is no guarantee of success.
ภ(Science, Technology and Innovation, STI)
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What is Technology Management? • “The effective management of technological change” • How can we manage more effectively the process of changing our products and services • The ways in which they are created and delivered products and services
What is Technology Management? “…Technology Management is the timely creation and improvement of the products and productive capability of the corporation. The problems of managing technology…divide into two parts; encouraging invention and managing successful innovation…” F. Betz
What is Technology Management? “The effective management of technological Change” “Technology Management is a link of engineering, science, and management disciplines to plan, develop, and implement technological capabilities to shape and accomplish the strategic and operational objective of an organisation...” The US National Research Council
What is innovation management? Market Change
INNOVATION MANAGEMENT
Organisational Change
Technological Change
Innovation Management? • Innovation is essential to the survival and growth of all organisations. • Innovation is a process. • Managing the process is by no means easy. • There are plenty of obstacles which get in the way of successful implementation of good ideas.
The Emergence of Technology & Innovation Management â&#x20AC;˘ To develop and sustain competitive advantage that allow firms or individual to meet their objectives by using technological innovation as means to response to market, organisational and technological change.
Can we manage innovation? • There is certainly no easy recipe for successful innovation. • But it is possible to find an underlying pattern of success. • Most of the majority of innovation failures are due to some weakness in the way process is managed. • Anyway, we live in the uncertain worlds
Two key ingredient of Successful innovation • Technical resources – People, equipment, knowledge, money, etc.
• The capabilities in the organisation to manage them. – Routines: “the way we do things around here” • A result of repetition and reinforcement Organisation Culture Learning
Routines
Successful innovation management • To build routines but also to recognise when and how to destroy them and allow new ones to emerge • To build and improve effective routines • Learning comes from recognising and understanding effective routines (whether developed in-house or observed in another enterprise) • Then, facilitate their emergence across the organisation
Main texts and assignment • Read Chapter 1 & 2 • Group study (5-6 students) • Small discussion and learning team • Web board and Q&A • Tech news and Innovation updates