T e c h n o l o g i c a l BPT 3113 – Management of Technology
Chapter Outline • Introduction • Concept and Nature of Innovation • Types of Innovation • Sources of Innovation • Models of Innovation • Innovation Process • Influencing Factors
Lesson Outcomes • Explain the concept, components and characteristics of innovation • Describe the models and sources of innovation • Know the stages in the innovation process • Identify the factors that contribute to successful innovation
Introduction • Managing technology involves continuous effort in creating technology, developing novel products and services, and successfully marketing them • It requires: • Great creativity • Investment in R&D Labs Marketplace
Concept and Nature of Innovation • Invention is an idea for a novel product or process • Innovation is the introduction of new products, processes or services into the market place • Technological innovation begins with invention – a sub-set of innovation • The process of technological innovation is a complex set of activities that transforms ideas and scientific knowledge into physical reality and real-world applications - converts knowledge into useful products and services that have socioeconomic impact.
Concept and Nature of Innovation • Characteristics of organizational innovation are as follows: • An innovation must be... • A tangible product, process or procedure within an organization • New to the social setting within which it is introduced • Intentional rather than accidental • A challenging change • Aimed at predicting benefit to the organization • Public in its effects
Models of Innovation • Fundamental components of the model are the same but the nature of the business may dictate variations in implementation techniques.
Models of Innovation Martin (1994) illustrate the technological innovation process as a chain equation • Reveals the important role of entrepreneurship in connecting ideas to the marketplace • The management role in the innovation chain emphasizes: • The need for stability and control at a certain phase of the innovation process • A formalized managerial structure tends to produce incremental and process innovations more than radical innovations
Models of Innovation Mills (1996) provided very simplified but interesting definitions for several components of the process of technological innovation known as minimalist definitions. • Science : How things are. • Technology : How to do things. • Management : How to get things done. • Technology management : Doing things. • Entrepreneurship : Doing things to make money • Innovation : Doing entrepreneurship
Innovation Process 8 Stages of Technological Innovation
8 Stages of Technological Innovation • Basic Research • Increase our general understanding of the laws of nature • Generating knowledge over a long period of time • May or may not result in specific application • Applied Research • Directed toward solving one or more of society’s problems (specific problems) • Eg.: research conducted to develop a drug for treating a known disease • Technology Development • Human activity that converts knowledge and ideas into physical hardware, software or service - prototype • Technology Implementation • Set of activities associated with introducing a product into the marketplace – success commercial introduction
8 Stages of Technological Innovation • Production / Manufacturing • Set of activities associated with the widespread conversion of design concepts or ideas into products and services – production control, logistic • Marketing • Set of activities that ensures that consumers embrace the technology – promotion, distribution strategy • Proliferation / Diffusion • Strategy that ensure the widespread use of the technology and its dominance in the marketplace • Depends on methods of exploiting the technology • Technology enhancement • Set of activities associated with maintaining a competitive edge for the technology - increases the life cycle of the technology
Critical Trajectories Impacting The Innovation Process • Border crossings (national and sectorial) • Increasing of science-technology articles with international co-authorship and also between academic and government • Emergence of complex technologies • Fit to and cause from diverse demands, perspectives, approaches and contexts • Age of knowledge and distributed intelligence, KDI • Network of knowledge – integration of knowledge from different sources and domains across space and time • Learning and intelligent systems - exploring the human behavior in collaboration with machines • Computing challenges - exploit the numeric barrier
Influencing Factors • The presence of scientific knowledge – technological change is dependent on scientific discoveries • The level of maturity of the underlying science – a wide base of knowledge enhances technological development • The type of technology and the phase of its life cycle – innovation rate is high for emerging and growing technology • The level of investment in technology – technological development is connected to the level of R&D funding • The level of political commitment – the pace of innovation is sensitive to high level policy decisions • The ability to borrow advances from related technologies – advances in communication technology are dependent on satellite components • The diffusion rate and patterns - a technology that is widely diffused in the market may delay other technologies from entry
Influencing Factors • Recognition to Technology • Time to Market • Multiple-site continuous R&D • Improvements in Communication • The Push for Education • Changes in Institutional Interactions • Changes in Organizational Structure
Summary • Technological innovation is a sub-set of innovation • Technological innovations may arise from sources within or outside the organization • Innovation process has been viewed as a sequence of separable stages • Two basic variations of innovation models are technology push and market pull