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Technology Strategy

Technology Strategy. What is a Successful Technology Strategy?. VALUE CREATION. VALUE DELIVERY. VALUE CAPTURE. Effective Strategies Answer 3 Key Questions:. How will we Create value?. How will we Deliver value?. How will we Capture value?. Successful strategies are dynamic.

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Technology Strategy

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  1. Technology Strategy

  2. What is a Successful Technology Strategy? VALUECREATION VALUE DELIVERY VALUE CAPTURE

  3. Effective Strategies Answer 3 Key Questions: How will we Create value? How will we Deliver value? How will we Capture value?

  4. Successful strategies are dynamic How will we Create value? How will we Deliver value? How will we Capture value?

  5. And have real resources inplace behind them….

  6. Why have a strategy? 1. To make choices

  7. Overcommitment destroysproductivity

  8. Why is it so hard to killproject #26? • It’s a “good” project! • Good managers can meet stretch goals (and I’m a good manager) • Making difficult decisions takes time & energy It’s very hard to kill projects without a strategy

  9. Reasons to have a strategy: 2. To be able to change it

  10. A Key Framework: The industry life cycle Era of Ferment/ Disruption “Dominant design” emerges Maturity Incremental Innovation

  11. The Industry Life Cycle as an S curve Maturity Performance Takeoff Discontinuity Ferment Time

  12. The S-curve Maps Major Transitions Performance Maturity Discontinuity Takeoff Ferment Time

  13. Transitions often challenge existing organizations severely

  14. But they also create major opportunity • Corning glass – Cookware to optical fiber • HP – Instrumentation to computers • IBM – Mainframes to PCs to Services • Merck – “Random” drug discovery to genetics and genomics

  15. Understanding the life cycle is critical since itshapes strategic choices: Technology Competition Markets Organization Maturity Takeoff Ferment

  16. Course Outline: • How will we create value? – PDAs, EMI and the Cat Scanner • How will we capture value? – Surface Logix, Abgenix, Ember, Mercury • How will we deliver value? – Siemens, Intel, Synthes, XTV, P&G, Alza/Ciba • Actually Doing Strategy – Kirkham Instruments, Kodak, Nokia

  17. S curves and Technological trajectories • Read: Foster, R. (1986). "The S-curve: A New Forecasting Tool." • Think: What determines the limits of an S curve? Can such limits be determined ex post? How would one determine what to map on the vertical axis of an S curve? • Try: On the course web site you will find an excel program that contains performance specifications for nearly every PDA ever introduced. Draw one or more S curves for the industry. Speculate about the ndustry’s future evolution.

  18. Next class:First 2 page paper due the following week. • Use the next class to choose an industryor firm. • Plot and describe the relevant S curve(s) for your industry. Is the industry likely to be subject to “natural technological limits”? Why or why not? Has it experienced “discontinuities”? Is it likely to do so soon?

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