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Case Studies - Technology Management

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    CASE STUDIESCASE STUDIES

    TECHNOLOGICALTECHNOLOGICAL

    MANAGEMENT.MANAGEMENT.

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    LESSONS from XEROX: the BEGINNING:

    This case describes the Anatomy of Innovation

    Process.

    Demonstrates the difference between

    scientific discoveries and Technological

    Innovation.

    The Inventor- Carlson ,an ordinary man hadjust a vision, an empirical approach , a passion

    for his idea and persistence to lead to such a

    major technological Innovation .

    Battelle supported this idea with a Process,

    relevant Knowledge, talent and Scientificapproach.

    Haloids Wilson brought Entrepreneurship to

    the Innovation by funding the research and

    protecting the Technology by a Trade name.

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    Financial support by third parties/ Govern Bodies

    (US Army) is the catalyst that propels new ideas

    towards Development and Marketing. For Revolutionary Innovations, Market surveys

    and predictions can not be trusted to give

    accurate demand forecast . ( Xerox 914 Copy

    Machine sold 200,000 as against prediction of

    3000 nos. only. It was thought to be only a

    Product concept).

    From first Xerox machine of 1949 to Xerox 914 it

    took several Innovations to bring it to

    acceptable product in marketplace. Technological Innovation coupled with

    Marketing Innovation ( a leasing & pricing

    structure by Peter McColough) facilitated

    Customer acceptance of the Product.

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    Once the technology was well developed,

    accepted by the Market and diffused, a huge

    explosion in the copies produced and soldfollowed.

    The success of an Innovation depends on its

    marketability and customer satisfaction.

    From the prototype to the customersacceptance of the Product may warrant

    multiple generation of innovations.

    Innovations one or more champions to create

    them and introduce them to the market.

    Successful Innovations need a combinations of

    factors including Vision, persistence, technical

    skill, business acumen, good intuitive sense

    and of course good luck.

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    A MODEL FOR TECHNOLOGICAL INNOVATION IN

    BIOMEDICAL DEVICES :

    Generation of Ideas

    Production

    Product design, prototypeDeveloment & Testing Designing the manufacturingProcess.

    Regulatory approval &

    Patenting.

    Marketing

    Testing feasibility of Ideas

    Customer

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    GENERATION OF IDEAS:

    Intrapreneurs

    R & D Depts.

    Researchers

    Biomedical Industry

    University &

    Research labs

    Biomedical

    Industry

    Healthcare Sector

    Marketing &

    Sales.

    Patents.

    BiomedicalEngineers.

    Healthcare

    Professionals

    Physicians

    MARKET PULL

    TECHNOLOGY

    PUSH

    Generation

    Of

    Ideas

    Entrepreneurs

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    PRODUCT DESIGN, DEVELOPMENT& TESTING.

    PRODUCT DESIGN,PROTOTYPE

    DEVELOPMENT &

    TESTING.

    COST / FUNCTIONRELATIONSHIP

    QUALITY EXPANDABILITY

    TECHNOLOGYSIMPLICITY &

    EASE OF USE

    COST

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    LESSONS from XEROX AFTER THE INVENSION.

    Lack of a committed Champion in MOT could lead

    to its downfall. Wrong Vision statement inconsistent with its

    core competence would take the organization to

    a wrong direction spelling disaster.

    Excellent Product innovation may fail due to

    proper marketing effort.

    Research groups with freedom from daily defined

    assignments are more creative.

    Locating R & D ventures away from the main

    corporate centre gives a research team freedomto innovate.

    Too close & too many control points throttle

    innovation.

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    Bureaucratic management can seriously hindertechnological innovation.

    Top managements focus on short term financialobjectives may be detrimental to the realization ofthe long term objective or Vision.

    Synergy and cooperation between research armand the Product development arm of a company

    are essential for the successful push ofTechnology.

    Synergy and cooperation between R & D,Production and Marketing are essential forsuccessful commercialization of Technology.

    Focus on QUALITY and TQM is mandatory fororganizations for its survival and businessexcellence.

    Entrepreneurship & not professionalism is key forperformance in a Technology oriented

    organization.

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    COMMENTS ON XEROGRAPHY: CarlsonS radical innovation & new Technology

    was valued by the customer and created a newMarket.

    Hence 914 Copier a single Xerox Product becamethe industry standard .

    Xerox became the leader in copying Industry and

    got benefited by tremendous growth and enormousProfit.

    Once the technology was recognized, Xerox shiftedfrom radical innovation to incremental & Processinnovation. Attitude towards Business & innovation

    became callous and relaxed. Competitors were growing as Technology matured.

    By 1975 , Xeroxs market share and revenue werelost to new competitors like Canon, Sharp,Panasonic etc. whose Quality was inching higher

    and cost getting lower.

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    The reason for failure was the managements overconcern with bottom line and it did not have theentrepreneurial skills to foster developments in an

    entirely new arena. Turning round Xerox back to leadership position in1990s Chairman and CEO Allaire introduced drasticchanges in the way Xerox did business.

    Xerox redefined its strategic Vision towards

    creating The Document Company. Allaire integrated Xeroxs core competence and

    technology together and gave it a modern TQMoriented new approach for competitive edge withcustomers.

    Xerox induced in its employees entrepreneurialskill to compete in a highly volatile competitivetechnological environment.

    Strategic thinking, TQM orientation, result orientedteam work, ability to delegate and empowerment

    skills are highly appreciated in the new structure.

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    TECHNOLOGICAL INNOVATION- the MACRO LEVEL.

    Scientific discoveries and technologicalbreakthroughs have a potential for changing theway people live and do business.

    The process of technological innovation in a regionspur major economic growth and change its entire

    socioeconomic landscape . The BRITISH MIDLANDS and SILICON Valley

    has strikingly similar features and circumstancesto foster such socioeconomic growth.

    Both the areas had common lessons to learn which

    are detailed hereafter: Creative people who tend to depart from mundane

    and the status quo usually advance innovations.

    Entrepreneurs drive innovations with support fromskilled technologists.

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    Both areas were predominantly in habitated by

    nonconformists free from established or forced

    customs or practices. They believed in freedom of thinking & trade.

    They believed in education, having contacts and

    sharing knowledge with like minded thinkers.

    Innovators tend to be drawn from the ranks ofthose with no investments or vested interest in the

    established order.

    For large scale innovation in a region freedom of

    thought and entrepreneurial spirit is essential.

    The exchange of information among groups fromvarious disciplines are important.

    For the process of technological innovation, when

    conditions are ripe for mental interaction in the

    existence of infrastructure, innovations flourish.

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    Both LUNAR SOCIETY(1776) in the British

    Midlands ( Burmingham) & The HOME BREW

    COMPUTER CLUB(1970) IN Silicon Valley helped

    to:

    Exchange of ideas.

    Support member activities.

    Share information across disciplines.

    Share information across Industry.

    Exhibit Business Strategy.

    Produce real entrepreneurs.

    Create role models.

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