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FACTORS influencing TECHNOLOGICAL INNOVATION:FACTORS influencing TECHNOLOGICAL INNOVATION:

The presence of Scientific Knowledge.The presence of Scientific Knowledge.

The level of maturity of the underlying science.The level of maturity of the underlying science.

The type of Technology and the phase of its Life Cycle.The type of Technology and the phase of its Life Cycle.

The extent of R & D in Technology.The extent of R & D in Technology.

The level of Investment in Technology.The level of Investment in Technology.

The level of Political Commitment.The level of Political Commitment.

The ability to burrow from the related Technologies.The ability to burrow from the related Technologies.

Diffusion rate & Pattern.Diffusion rate & Pattern.

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CURRENT CHANGING PARDIGM INCURRENT CHANGING PARDIGM IN

TECHNOLOGICAL INNOVATION :TECHNOLOGICAL INNOVATION :

Changing World environment.Changing World environment.Removal of Trade barriers and implementation ofRemoval of Trade barriers and implementation ofWTO.WTO.

Information Technology revolution .Information Technology revolution .

Improvements in communication.Improvements in communication.Multiple site continuous R & D 24 hrs. a day.Multiple site continuous R & D 24 hrs. a day.

Time to market.Time to market.

Shorter Product and service life cycle.Shorter Product and service life cycle.

Push for Education.Push for Education.Changes in Institutional interactionsChanges in Institutional interactions Co operations &Co operations &alliances between country, Industry, Governments,alliances between country, Industry, Governments,Universities, Scientific agencies etc.Universities, Scientific agencies etc.

Changing in Organizational structureChanging in Organizational structure TechnologicalTechnological

Innovations become feasible by team work,Innovations become feasible by team work,

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Infusion of resources into technological developmentInfusion of resources into technological developmentand penetration is requirement for continued progress.and penetration is requirement for continued progress.

THE SPEED OF TECHNOLOGICAL CHANGE ANDTHE SPEED OF TECHNOLOGICAL CHANGE ANDTHE CORRESPONDING HIGH COSTTHE CORRESPONDING HIGH COSTASSOCIATED WITH TECHNOLOGICALASSOCIATED WITH TECHNOLOGICAL

DEVELOPMENT ARE LEADING TODEVELOPMENT ARE LEADING TOCOOPERATION & ALLIANCES BECOMINGCOOPERATION & ALLIANCES BECOMINGFUNDAMENTAL ASPECT OF TECHNOLOGICALFUNDAMENTAL ASPECT OF TECHNOLOGICALINNOVATION.INNOVATION.

MOT IS ENTREPRENEURSHIP OF CREATING ANMOT IS ENTREPRENEURSHIP OF CREATING ANENVIRONMENT THAT FOSTERS SCIENTIFICENVIRONMENT THAT FOSTERS SCIENTIFICDISCOVERIES & TECHNOLOGICALDISCOVERIES & TECHNOLOGICALDEVELOPMENT IN LINE WITH MARKET DEMANDDEVELOPMENT IN LINE WITH MARKET DEMAND

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TECHNOLOGY STRATEGY ;TECHNOLOGY STRATEGY ;

Strategy involves envisioning and planning for theStrategy involves envisioning and planning for the

future and envising an action plan to achieve the longfuture and envising an action plan to achieve the longterm Objective.term Objective.

TECHNOLOGY VISION

TECHNOLOGY MISSION

TECHNOLOGY GOALS& OBJECTIVES

OPPORTUNITY & THREAT vis-aVis ENVIRONMENT

STRENGTH & WEAKNESSVis-a-vis COMPETITION

STRATEGIC ACTIONPLAN

STRATEGIC IMPLEME-NTATION.

STRATEGIC EVALUA-

TION & FEEDBACK

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MATRIX TO AID ACQUISITION DECISIONMATRIX TO AID ACQUISITION DECISION

QUALITY

Low High

High

PRICE

Low

MAYBEMAYBE ACQUIREACQUIRE

AVOIDAVOID MAYBEMAYBE

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PRODUCT EVALUATION MATRIX(3M)PRODUCT EVALUATION MATRIX(3M)

BUSINESS COMPETITIVE POSITION

NO

PRODUCT NEWTO THEWORLD

KNOWN

NEW

YES

Consider acquiringConsider acquiringMarketingMarketingexpertiseexpertise

Most Promising.Most Promising.

Least PromisingLeast Promising

Inventors encourInventors encour--

ged to go outsideged to go outside

3M.3M.

Should fit into oneShould fit into one

Of the existingOf the existing

Divisions.Divisions.

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Company Portfolio Matrix:Company Portfolio Matrix:

MARKET DOMINANCE

LOW

LOW

MARKETGROWTH

HIGH

HIGH

PROBLEMPROBLEMCHILDRENCHILDREN

STARSSTARS

DOGSDOGS CASH COWCASH COW

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STARSSTARS

CONTINUE PRODUCT DEVELOPMENT EFFORT.CONTINUE PRODUCT DEVELOPMENT EFFORT.FOCUS ON COMPETENCIES THAT GAVE COMPETITIVEFOCUS ON COMPETENCIES THAT GAVE COMPETITIVEADVANTAGE.ADVANTAGE.

CONTINUE MARKET DEVELOPMENT & MARKETCONTINUE MARKET DEVELOPMENT & MARKETPENETRATION.PENETRATION.

CONSIDER VERTICAL INTEGRATION.CONSIDER VERTICAL INTEGRATION.

CONSIDER BUSINESS OR PRODUCT DIVERSIFICATIONCONSIDER BUSINESS OR PRODUCT DIVERSIFICATIONTO REDUCE RISKS OF ONE PRODCUT LINE NOT DOINGTO REDUCE RISKS OF ONE PRODCUT LINE NOT DOINGWELL.WELL.

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PROBLEM CHILDREN :PROBLEM CHILDREN :

RE EVALUATE THEIR MARKETING & TECHNOLOGICALRE EVALUATE THEIR MARKETING & TECHNOLOGICALSTRATEGIES.STRATEGIES.

AGRESSIVELY PERSUE MARKET DEVELOPMENT &AGRESSIVELY PERSUE MARKET DEVELOPMENT &MARKET PENETRATION.MARKET PENETRATION.

GO FOR INTEGRATION OF ACTIVITIES.GO FOR INTEGRATION OF ACTIVITIES.

DIVEST TO ACQUIRE FUNDS.DIVEST TO ACQUIRE FUNDS.JOINT VENTURES WITH MARKET LEADRERS.JOINT VENTURES WITH MARKET LEADRERS.

COLLABORATION WITH A FOREIGN PARTNERSCOLLABORATION WITH A FOREIGN PARTNERSSEEKING ENTRY NIN THE COUNTRY.SEEKING ENTRY NIN THE COUNTRY.

IF NOTHING WORKS LIQUIDATE TO REDUCE LOSSES.IF NOTHING WORKS LIQUIDATE TO REDUCE LOSSES.

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DOGS ;DOGS ;

COMPANIES WITH WEAK TECHNOLOGIES.COMPANIES WITH WEAK TECHNOLOGIES.COMPETE IN SLOW GROWTH INDUSTRIES.COMPETE IN SLOW GROWTH INDUSTRIES.

SHOULD HAVE AGGRESSIVE STRATEGIES TOSHOULD HAVE AGGRESSIVE STRATEGIES TOAVOID FURTHER DRAIN IN THEIR RESOURCESAVOID FURTHER DRAIN IN THEIR RESOURCESAND REVERSE DIRECTION OF BUSINESS.AND REVERSE DIRECTION OF BUSINESS.

Reengineering of business to reduce cost andReengineering of business to reduce cost andlook for viable alternative businesses or Products.look for viable alternative businesses or Products.

LOOK FOR INNOVATIONS TO SAVE COMPANY.LOOK FOR INNOVATIONS TO SAVE COMPANY.

If nothing works look for liquidation .If nothing works look for liquidation .

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CASH COWS :CASH COWS :

STRONG COMPANIES IN SLOW GROWTHSTRONG COMPANIES IN SLOW GROWTH

MARKETS.MARKETS.

SHOULD DEVERSIFY THEIR PRODUCTS ORSHOULD DEVERSIFY THEIR PRODUCTS ORACTIVITIES IN HIGHER GROWTH AREAS.ACTIVITIES IN HIGHER GROWTH AREAS.

PERSUE JOINT VENTURES.PERSUE JOINT VENTURES.

UTILIZE MARKET SEGMENTATION STRATEGIES.UTILIZE MARKET SEGMENTATION STRATEGIES.PERSUE DEFENSIVE R & D TO KEEP THEIRPERSUE DEFENSIVE R & D TO KEEP THEIRPRODUCTS COMPETITIVE.PRODUCTS COMPETITIVE.

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MARKETING/ TECHNICAL COMPETENCEMARKETING/ TECHNICAL COMPETENCEMarket competenceMarket competence

// TECHNOLOGICALTECHNOLOGICAL

competencecompetence

HIGHHIGH MEDIUMEDIU

MM

LOWLOW

High cuttingHigh cutting

EdgeEdge

StarStar SuccessSuccess Doubt?Doubt?

MediumMedium

StateState--ofof--thethe--artart

SuccessSuccess Doubt?Doubt? FailureFailure

LowLow

ObsoleteObsolete

Doubt?Doubt? FailureFailure DisasteDisasterr

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PORTERs THEORY ON TECHNICAL STRATEGY TO DERIVEPORTERs THEORY ON TECHNICAL STRATEGY TO DERIVE

COMPETITIVE EDGE IN THE MARKET :COMPETITIVE EDGE IN THE MARKET :

Technology can be used to out all business activities toTechnology can be used to out all business activities tooffer customer long term value addition.offer customer long term value addition.

Porter proposes to formulate aPorter proposes to formulate a TechnologyTechnology develop &develop &maintain a competitive advantage by carryingmaintain a competitive advantage by carrying

StrategyStrategy using following steps:using following steps:Identify all the distinct Technologies and subIdentify all the distinct Technologies and sub--technologies in a value chain.technologies in a value chain.

Identify potentially relevant Technologies in otherIdentify potentially relevant Technologies in other

industries or under scientific development.industries or under scientific development.Determine the path of change of key Technologies.Determine the path of change of key Technologies.

Determine which Technologies and potentialDetermine which Technologies and potentialTechnological changes are most significant forTechnological changes are most significant forcompetitive advantage and industry structure.competitive advantage and industry structure.

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Assess a firms relative capabilities in importantAssess a firms relative capabilities in importantTechnologies and cost of making improvements.Technologies and cost of making improvements.

Select a Technological strategy , encompassingSelect a Technological strategy , encompassingall important Technologies that reinforces theall important Technologies that reinforces thefirms overall competitive strategy.firms overall competitive strategy.

Reinforce businessReinforce business--unit Technology strategies atunit Technology strategies atthe corporate level.the corporate level.

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THE VEHICLE FOR CREATING WEALTH:THE VEHICLE FOR CREATING WEALTH:

STRATEGY

TECHNOLOGY

PRODUCTIVITY

MARKETING

WEALTHCREATION

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CORE COMPETENCIES :CORE COMPETENCIES :

CORE COMPETENCIES ARE COLLECTIVE SET OFCORE COMPETENCIES ARE COLLECTIVE SET OF

KNOWLEDGE, SKILLS & TECHNOLOGIES A COMPANYKNOWLEDGE, SKILLS & TECHNOLOGIES A COMPANYAPPLIES TO ADD VALUE FOR ITS CUSTOMERS TOAPPLIES TO ADD VALUE FOR ITS CUSTOMERS TODERIVE THE COMPETITIVE ADVANTAGE IN THEDERIVE THE COMPETITIVE ADVANTAGE IN THEMARKET PLACE.MARKET PLACE.

FEATURES OF CORE COMPETENCIES:FEATURES OF CORE COMPETENCIES:

- Provide distinctive competitive advantage to theOrganization.

-- CORE COMPETENCIES are difficult for competitors toCORE COMPETENCIES are difficult for competitors toimitate.imitate.

-- CORE COMPETENCIES make significant contribution byCORE COMPETENCIES make significant contribution byway of Value addition to the end products offered byway of Value addition to the end products offered bythethe Organization.

- They provide access to wide variety of markets.

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EXPLOITATION OF CORE COMPETENCIES :EXPLOITATION OF CORE COMPETENCIES :

1. Clearly identify the1. Clearly identify the CORE COMPETENCIES ;CORE COMPETENCIES ;

-- What it does best.What it does best.

-- What it can do which no other company can do better.What it can do which no other company can do better.

-- What will permit it achieve bestWhat will permit it achieve best--inin--thethe--worldworld--status instatus inregard to what it does.regard to what it does.

2. Develop the plan to fully exploit the2. Develop the plan to fully exploit the CORE COMPETENCIES.CORE COMPETENCIES.

3. Develop, cultivate & enhance the companys3. Develop, cultivate & enhance the companys CORECORECOMPETENCIES.COMPETENCIES.

4. Deploy CORE COMPETENCIES as widely as possible4. Deploy CORE COMPETENCIES as widely as possiblethroughput the companys Products & Services.throughput the companys Products & Services.

5. Align all other activities in the company Around the5. Align all other activities in the company Around theareas of CORE COMPETENCIES to create Synergy .areas of CORE COMPETENCIES to create Synergy .When synergy exists, whole is greater than the parts.When synergy exists, whole is greater than the parts.

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Develop an optimal plan for TechnologyDevelop an optimal plan for Technologyintegration and Outsourcing if necessary.integration and Outsourcing if necessary.

Build barriers to competitors entry intoBuild barriers to competitors entry intocompanys areas ofcompanys areas ofCORE COMPETENCIES.CORE COMPETENCIES.

Overcome temptations for short term gainsOvercome temptations for short term gainsrather than long term strategic positioning.rather than long term strategic positioning.

Integrate with CORE COMPETENCIES the ProductIntegrate with CORE COMPETENCIES the ProductTechnology, Production Technology, MarketingTechnology, Production Technology, MarketingTechnology and Disposal Technology withTechnology and Disposal Technology withBusiness Strategy as explained earlier to attainBusiness Strategy as explained earlier to attainMarket leadership and business Excellence.Market leadership and business Excellence.

Decide onDecide on LEVEL OF INTEGRATIONLEVEL OF INTEGRATIONneeded forneeded forits Operation based on realistic Technologies andits Operation based on realistic Technologies andBusiness decision making criteria.Business decision making criteria.

Be aware of the emerging Technology that canBe aware of the emerging Technology that canimpact the business.impact the business.

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STRATEGIC QUESTIONS :STRATEGIC QUESTIONS :

To what extent is TECHNOLOGY RELEVANT TO THETo what extent is TECHNOLOGY RELEVANT TO THE

BUSINESS ?BUSINESS ?

Which Business Strategies need TECHNOLOGY ?Which Business Strategies need TECHNOLOGY ?

Where will we get the required TECHNOLOGY ?Where will we get the required TECHNOLOGY ?

What are the core TECHNOLOGIES needed by theWhat are the core TECHNOLOGIES needed by the

business ?business ?Where shall we focus our Research effort ?Where shall we focus our Research effort ?

What Strategic options are provided by theWhat Strategic options are provided by theTECHNOLOGY ?TECHNOLOGY ?

How much is the Value addition done by theHow much is the Value addition done by theTECHNOLOGY ?TECHNOLOGY ?

Will it give a competitive advantage at the MarketWill it give a competitive advantage at the Marketplace.place.

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TECHNOLOGICAL PLANNING :TECHNOLOGICAL PLANNING :

It could be either a process of Top to bottom planningIt could be either a process of Top to bottom planningor starting from the operational steps work backwardsor starting from the operational steps work backwardsto do Bottomto do Bottom--up Planning.up Planning.

Input to the Planning is the Technological andInput to the Planning is the Technological andMarketing Knowledge.Marketing Knowledge.

Forecast the technology in terms of emergingForecast the technology in terms of emergingtechnology, substitute products and existing technologytechnology, substitute products and existing technology

Analyze and forecast the environment in terms of theAnalyze and forecast the environment in terms of theThreats and opportunities.Threats and opportunities.

Analyze and forecast the Market and consumers inAnalyze and forecast the Market and consumers in

terms of their needs, expectations, preferences andterms of their needs, expectations, preferences andavailable products and services and how they areavailable products and services and how they arefulfilling the consumers needs.fulfilling the consumers needs.

Analyze and reengineer the organization in terms of itsAnalyze and reengineer the organization in terms of itsStrengths, Weaknesses and available resources.Strengths, Weaknesses and available resources.

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Develop the Vision and the Mission. Break it6 up intoDevelop the Vision and the Mission. Break it6 up intoimmediate Quality Objectives and Goals. This will bringimmediate Quality Objectives and Goals. This will bring

the entire organization with a common integratedthe entire organization with a common integratedunidirectional objective.unidirectional objective.

Design the organizational action in terms ofDesign the organizational action in terms ofTechnological planning by optimum utilization ofTechnological planning by optimum utilization ofresources, market leadership, business excellenceresources, market leadership, business excellence

aimed towards attainment of the organizationalaimed towards attainment of the organizationalobjective.objective.

Put the Plan into operations by implementing actionPut the Plan into operations by implementing actionsteps, following schedule and budget.steps, following schedule and budget.

Define the control points and assess the performanceDefine the control points and assess the performanceand progress of the plan. Monitoring is very useful.and progress of the plan. Monitoring is very useful.Technological market place are dynamic and each firmTechnological market place are dynamic and each firmmust maintain a knowledge base of changes andmust maintain a knowledge base of changes andcustomers reactions to them.customers reactions to them.

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TECHNOLOGY AUDIT :TECHNOLOGY AUDIT :

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