TM.721 Business Strategy for Entrepreneur

Master of Science in Technology Management Programme

Dr. Pun-Arj ChairatanaSession 1 & 2

10 OCTOBER 2010

Course Description

• การนำ�าความร ด้านำการจั ด้การมาใช้ในำ– การบร�หารธุ�รก�จั – การว�เคราะห�สถานำการณ์� และการว�เคราะห�โอกาสทางธุ�รก�จั รวมถ"ง– การแกไขปั&ญหาและการตั ด้ส�นำใจัทางธุ�รก�จัอย่*างม+ปัระส�ทธุ�ภาพ

• โด้ย่เนำนำว�เคราะห�ในำปัระเด้.นำท+/ท นำสม ย่ เพ0/อใหม+ปัระสบการณ์�ในำการนำ�าเอาทฤษฎี+ไปัปัระย่�กตั�ใช้ในำทางปัฏิ�บ ตั�

• โด้ย่อาศั ย่เทคนำ�ค– กรณ์+ศั"กษา – ส มมนำาเช้�งปัฏิ�บ ตั�การ และ– เกมจั�าลองทางธุ�รก�จั เปั6นำตันำ

Objectivesสรางความเขาใจัตั*อ

ทฤษฎี�และองค์�ค์วามรู้��ท+/เก+/ย่วของก บ

กลยุ�ทธ์�เทค์โนโลยุ�

และนว�ตกรู้รู้มส�าหร บผู้

ปัระกอบการเทคโนำโลย่+

สรางค์วามสามารู้ถในำ

การู้ว�เค์รู้าะห์�สถานการู้ณ์� และโอกาสทางธ์�รู้ก�จ

สรางค์วามสามารู้ถในำการู้แก�ไขปั&ญห์าและ

ศั�กยุภาพการู้ต�ดส�นใจทาง

ธุ�รก�จันำว ตักรรมและ

เทคโนำโลย่+

พ ฒนำาท�กษะการู้ว�เค์รู้าะห์�และพ�ฒนากรู้ณ์�ศั.กษา

กลย่�ทธุ�ธุ�รก�จัเทคโนำโลย่+และ

นำว ตักรรม

สรางค์วามสามารู้ถในการู้ท/างานเปั0นกล�1ม

การู้ว�ดผลส�มฤทธ์�3ในการู้เรู้�ยุน• การปัฎี�ส มพ นำธุ�จัากเคร0อข*าย่ส งคม 15%– ใหสราง SOCIAL NETWORK ส�าหร บแลกเปัล+ย่นำองค�ความร และ

การท�าราย่งานำผู้*านำ ning.com / facebook / และ twitter

• การท�าราย่งานำเด้+/ย่ว 15%– พ ฒนำากรณ์+ศั"กษาด้านำกลย่�ทธุ�นำว ตักรรม

• การท�างานำกล�*ม 20%– พ ฒนำาบทว�เคราะห�ด้านำกลย่�ท�นำว ตักรรมราย่สาขาหร0ออ�ตัสาหกรรม

• การนำ�าเสนำองานำกล�*ม 20%– นำ�าเสนำอบทว�เคราะห�ด้านำกลย่�ท�นำว ตักรรมราย่สาขาหร0ออ�ตัสาหกรรม

• การสอบปัลาย่ภาค 30%

STRUCTURE OF COURSE

Foundation

Session 01: Technology, Innovation, and StrategySession 02: When Strategy Meets Creativity

Strategic innovation

Session 03: Understanding Evolution of InnovationsSession 04: Managing Strategic InnovationSession 05: Case Discussion

Strategic entrepreneurship

Session 06: Dimensions of Strategic EntrepreneurshipSession 07: Paths of Strategic EntrepreneurSession 08: Case Discussions

Strategic leadership

Session 09: Engagement of LeaderSession 10: Leadership, Envisioning, and InteractingSession 11: Case Discussions

Strategic organisationSession 12: Principles of Strategic OrganisationSession 13: Innovative VS Creative OrganisationSession 14: Case Discussions

What are the differences?

Session 01: Technology, Innovation, and Strategy

Technology

Innovation

Strategy

Technologic

al innova

tion

Innovation

strategy

Technology strate

gy

What is Technology Strategy?What is Innovation Strategy?How these strategies relate to technological innovation?

Entrepreneur

Technology

• How technology differs from knowledge and science?

• Major groups of technologies:– Emerging technologies – General purposed technologies (GPT)– Technology VS Invention– Convergence VS Divergence– Technology commercialisation– Technology and Ethics– And etc.

Innovation & Technological Innovation• …concerned with the new or the novel.• Distinction between innovation and

invention?• Is innovation technology based? – Fact1: Many of the more significant innovations

of the 20th century are organizational rather than technology based!

• On Tangibility and Intangibility...– FACT2: An innovation may therefore be a thing!

Whether artefact, product or process or indeed service, system or infrastructure

Evolution of Definition on Innovation I

• Building on Schumpeter’s useful definition between invention and innovation – “Invention implies bringing something new into

being; – innovation implies bringing something new into use”.

• Innovation has been defined as...– the successful introduction into an applied situation of

means or ends that are new to that situation.(Mohr, 1969, quoted in Cummings and O’Connell, 1978, p.34)

• Innovation means change. – Such changes can be incremental or radical,

evolutionary or revolutionary, enabling or disruptive. They can have different effects upon producers and users.

Evolution of Definition on Innovation II

The OECD, 2001:

•Innovation can be defined as the development, deployment and economic utilisation of new products, processes or services, and is an increasingly important contributor to sustained and sustainable economic growth, both at microeconomic and macroeconomic levels.

The Department

of Trade and

Industry, UK, December 2003:

•Innovation is the successful exploitation of new ideas.

The European Commission,

March

2003:

•Innovation is the successful production, assimilation and exploitation of novelty in the economic and social spheres.

FORA, Denmark:

•Innovation is the development of products, production processes, services and concepts which are new to the activity in question.

Strategy

• Military origin, • A plan of action designed to achieve a particular goal. • Originally usage of strategy is distinct from tactics.

– Strategy: How different engagements are linked? The terms and conditions that it is fought on and whether it should be fought at all is a matter of strategy

– Tactics: The conduct of an engagement. How battle or competition are fought is a matter of tactics.

• The four levels of economic strategy are– Economic goals or growth strategy, – Corporate strategy, – Operations, and – Tactics.

Technology Strategy

• Objective(s), principles and tactics relate to the technologies that the organisation uses.

• It focuses on the technologies, people who directly manage such technologies.

• It can be implied to – Organisational behavior towards technology decision – Technology and resource allocation– Technological human resource management– Technological interface– Value creation through technologies– R&D management – And etc.

Innovation Strategy:Application for Thai Value Creation

Figure 5.3: Innovation Value Chains of Selected Agricultural Biotechnology Products in Thailand

RICE

SHRIMP

CASSAVA

HIGH YIELDED SEEDS(Hybrid Rice Breeding)

AROMATIC RICE(High quality rice)

MOLECULAR DETECTION TOOL & TECH FOR VIRUSES

DISEASES FREE SHRIMP(Yellow-head & White-spot)

CONVENTIONAL HYBRIDISATION

DEVELOPED CASSAVA VARIETY

DISEASE RESISTANCE GENETIC SEEDS

TRANSGENIC RICE

DOMESTICATED BROODSTOCK TECH

SPECIFIC PATHOGEN-FREE (SPF-BROODSTOCK)

WASTE & ENERGY UTILISING TECH

WASTE & ENERGY MANAGEMENT

PROCESS

RICE GENOME SEQUENCING

NEUTRACEUTICALS RICE

STARCH BIOSYNTHESIS TECHNOLOGY

NEW CASSAVA VARIETY

Source: Tantichaoen, M. and developed from BIOTEC DATABASE

14Copyright © 2006 Pun-Arj Chairatana

Innovation, Entrepreneur, and Strategy

• Much of existing innovation theories have developed and derived from studies of large manufacturing firms in advanced markets and mainly concerned with the successful of product innovation.

• Theories of entrepreneurship focus on small business creation, our scopes here are– Application of key existing theories on

innovation and entrepreneurship.– Learning by doing

Bright idea, Burst model

• Mr. M. was a bright young PhD scientist with a patent on a new algorithm for monitoring social network activity and predicting the early onset of a tipping point and trend.

• He was convinced of the value of his idea and took it to market having sold his car, borrowed money form family and friends and taken out a large loan.

• He went bankrupt despite having a demonstration version which the investors he showed it to were impressed by.

• Why might his failure be linked to having a partial model of how innovation works, and how could he avoid making the same mistake in the future?

Knowledge, Strategy, and Innovation

• How does innovation operate as a knowledge creation and transfer process?

• If innovation is increasingly a matter of knowledge management, what sorts of challenges does this approach pose for managing the process?

• How can knowledge be used to provide competitive advantage in a competitive market-place – and how might this advantage be protected and preserved?

• How does innovation contribute to competitive advantage? Support your answer with illustrations from both manufacturing and services.

New Paradigm, New Rules

• Does innovation matter for public services? Using examples indicate how and where it can be an important strategic issue.

• You are a newly-appointed director for a small charity which supports homeless people. How could innovation improve the ways in which your charity operates?

• Innovation can take many forms. Give examples of product/service, process, position and paradigm (mental model) innovations.

• The low-cost airline approach has massively changed the way people choose and use air travel, and has been both a source of growth for new players and a life-threatening challenge for some existing players. What types of innovation have been involved in this?

Session 02: When Strategy Meets Creativity

Strategy

Creativity

Content

Outcome

Process

A Definition Framework of Creativity

Creativity

Process• Toleratin

g contradictions + Bisociative thinking

Content• Innovatio

n + lasting value

Outcome• Rethinkin

g problems + transforming contexts

• Uncreative strategy– Creative can’t be planned

directly– Bisocication– Plurality– Mistakes and accidents– Slack– Expectation– Imagine– Competitive tension– Heroic leadership by

individual– Creativity is not

innovation

Five Creative Connections for the

FutureCreative strategy

requires the integration of

Innovation

Entrepreneurship

Leadership and

Organisation.

Creative strategy

incorporates an approach to

innovation that harnesses

both Creation

and

Discovery

Creative strategy

utilises an approach to

entrepreneurship that

promotes bothDiligence

and

Dilettantism

Creative strategy

draws upon an approach to

leadership based upon being able

To envision the big picture for the future andTo

interact in the

present

Creative strategy

involves an approach to

organisation that focuses

that Activities of others

and Encourages them to roam

into pastures

new.

Association versus Bisociation (Koestler

1976:113)Habit (association)• Association with the

confines of a given matrix

• Guidance by pre-conscious or extra-conscious processes

• Dynamic equilibrium• Rigid to flexible variations

on the theme• Repetitiveness• Conservative

Originality (bisociation)• Bisociation of

independent matrices• Guidance by sub-

conscious processes normally under restraint

• Activation of regenerative potentials

• Super-flexibility• Novelty• Destructive-constructive

Assignments 1

• Sector innovation patterns• Innovation success and failure• Strategic advantage through

innovation

This short case exercises requires the student to investigate1) Patterns of innovation in the industry, 2) Highlighting patterns of continuous evolution punctuated by discontinuous shifts. 3) discussion of industry dynamics and the role which innovation plays in shaping these over time.

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