(Week 11) A03. Dimensions and Contents of ... - KOCW

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Prof. Dr. SSL {IDEA, STEM, RF, FP, C, LDV} / p. 1

•Course Code: 166125-01

•Course Name: Management of Technology

•Period: Spring 2017

•Lecturer: Prof. Dr. LEE, Sync Sangwon

•Department: Information & Electronic Commerce

•University: WONKWANG

A03. Dimensions and Contents of Technology Strategy Management of Technology

• 3.1. Concepts of Technology Strategy

• 3.2. Issues of Strategic MOT

• 3.3. Realities of Technology Strategy

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• Strategy (M. Porter)

• Companies must be flexible to respond rapidly to competitive and market changes.

• Competitive Strategy

• We should distinguish between operational effectiveness and strategy.

• Operating effectiveness

• Operating effectiveness means performing similar activities better than rivals perform them.

• Rapid diffusion of best practices

• Competitive convergence

• Strategy

• Strategic positioning means performing different things

• Performing different activities from rivals

• Performing similar activities in different ways

• Operational effectiveness is important but not enough.

• Rapid diffusion of best practices

• Competitive convergence

• Competitive strategy is about “being different”.

3.1. Concepts of Technology Strategy

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• Strategic Importance of Technology

•①Technology as competitive weapon

•②Technology as strategy driver

• Supporting

• Driving

•①Technology as competitive weapon

• Technology could decide competitive power of product/service.

•Core technology

• Technology could heighten entry barrier of a new enterprise.

• Technology could be a competitive weapon to destroy entry barrier of existing enterprises and to enter a new business.

3.1. Concepts of Technology Strategy

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• Supporting

• Technology strategy could be a means to achieve management strategy.

• Procedure

•①Understanding market

•②Understanding competitive points and KSF(Key Success Factor)

•③Understanding core technology

•④Understanding competitive power of core technology

•⑤Establishing technology strategy

•⑥Unifying technology strategy and management strategy

• Driving

• Technology strategy could play a role to lead management strategy.

• Procedure

•①Acquiring technology

•②Understanding applicable potential

•③Understanding KSF and technology competitive power

•④Deciding target applications and market

•⑤Establishing technology strategy

•⑥Establishing management strategy

3.1. Concepts of Technology Strategy

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• Importance of Technology as Substitute

• Porter’s 5 forces analysis model (or competitive advatage model)

• Industry competitors

• Suppliers

• Buyers

• New entrants

• Substitutes (or complements)

• Importance of Technology as Substitute

• Types of competitiveness

• Competitiveness among industries

• Competitiveness among technologies

• Competitiveness among standards

• Competitiveness among enterprises

3.1. Concepts of Technology Strategy

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• Roles of Technology in Technology Strategy

•①Dimension of technology effects

•②Bargaining power of technology and industry structure factors

•③Survival inequation

•①Dimension of technology effects

• Product innovation

• Improving product value

• Differentiating product

• Process innovation

• Pursuing economy of scale

• Achieving general cost advantage

• Acquiring basic/core technology

• Pursuing economy of scope

• Improving technology productivity and competitive power

• Implementing entry barrier

• Heightening entry barrier of new entrants

• Heightening switching cost of new buyers

3.1. Concepts of Technology Strategy

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•②Technology & bargaining powers

• Technology & bargaining power of suppliers

• Reducing purchasing necessity from powerful suppliers

• Useful for rear integration

• Technology & bargaining power of buyers

• Affecting product differentiation and switching cost

• Useful for front integration

• Technology & bargaining power of new entrants

• Strengthening/weakening entry barrier

• Technology & bargaining power of substitutes

• Introducing new products with low price and switching cost

• Technology & bargaining power of industry rivals

• Affecting price competition, differentiation, and removing barrier

• Technology & scope of industry

• Expanding, reducing, and specializing the scope of industry

•③Survival inequation

• Satisfying consumers/producers

• Consumer benefit = product value – production price

•Generating purchasing when value > price

• Producer profit = product price – product cost

•Generating production when price > cost

• Leading innovations

• Product innovation  value creation (economy of scope)

• Process innovation cost reduction (economy of scale)

3.1. Concepts of Technology Strategy

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• Scope of Technology Strategy

• Strategy = goal + means + action

• Scope of Technology Strategy (Ford)

•①Strategy for technology acquisition

•②Strategy for technology management

•③Strategy for technology exploitation

3.1. Concepts of Technology Strategy

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•①Strategy for technology acquisition

• Make in-house development, imitation

• Buy outsourcing, OI(Open Innovation), C&D(Connect & Development)

• M&A M&A(Merger and Acquisition)

•②Strategy for technology management

• Technology accumulation technology/knowledge management systems

• Technology evaluation technology/competiveness assessment

• Technology security technology security, human resource management

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•③Strategy for technology exploitation

• Sell licensing-out

• Department CVU(Corporate Venture Unit), ICV(Internal Corporate Venture)

• Incorporate spin-out