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Strategy Process and the Management of

Technology and Innovation


What is Strategy?
• (from Greek stratēgos, "art of general")
• A plan designed to achieve a long term aim
(Oxford English Dictionary)
• The planning and directing of military activity
in a war or battle (Oxford English Dictionary)
• It is a high level plan to achieve one or more
goals under conditions of uncertainty.
(Wikipedia.org)
• The skill of making or carrying out plans to
achieve a goal (Merriam Webster Dictionary)
• A long term plan of action designed to achieve
a particular goal. (The Principles of Teaching)
• A careful plan or method for achieving a
particular goal usually over a long period of
time
“The Art of War” (Sun Tzu)

Chapter III: Strategic Attack

1. “Know your enemy and know your self and


in 100 battles, you will never in peril.”
2. “Avoid what is strong, attack what is weak”

3. “To win 100 battles is not the height of skill. To


subdue the enemy without fighting is.”
• Plan your work and work your plan

• Failing to plan is planning to fail

• Planning is foreseeing and deciding today the


actions that will lead us to our desired future.
Strategy
• is a coordinated set of actions that fulfill a
firm s objectives, purposes, and goals.
• It is a not a single act that occurs in a firm.
A good strategy provides clear answer to four key
questions: (David Kryscynski)

1. Where do we compete?
2. What unique value do we bring?
3. What resources/ capabilities do we utilize?
4. How do we sustain unique value?
Business model canvas
Types of Planning
Strategic planning.

• This is long-term planning that involves all the organization’s


management areas and its content is relatively general.

• It focuses on broad and long-lasting issues that ensure the


organization’s long-term effectiveness and survival.

• Strategic planning is the responsibility of the organization’s director


and executive levels.
Tactical planning.
• When organizations are very large, they require a link
between strategic planning and operational planning
processes.

• Tactical planning is more specific and limited


to a single direction, program, or specific programmatic
area with a medium-term scope.

• It is the responsibility of the organization’s


mid-level staff.
Operational planning
• This has a short-term scope, and is specific for the
working teams of any operational unit.

• Its focus is achieving objectives and carrying out


short-term activities.

• Operational planning corresponds to the annual


work plan.
Strategic thinking
• implies the capacity to manage interrelated
events, systems, processes, and people that
affect the organization’s actions.
• identifies the questions whose responses will
help anticipate the clients’ and the program’s
future needs.
Strategic planning
• is a structured process aimed at improving the organization’s
future performance.

• a process that entails making decisions today to obtain results


in the future; strategic thought is an essential ingredient of
strategic planning.

• process of defining long-term objectives, identifying


quantitative goals and objectives, developing strategies to
achieve said objectives, and finding resources to implement
those strategies.
Its objectives are aimed at:

• understanding the critical aspects of a current reality


in order to transform it in the future;

• creating a shared vision of what the organization’s


future should be and how to achieve it;

• selecting the appropriate strategies to achieve the


stated goals.
Through strategic planning, organizations try to:

• clearly determine where they are;

• decide where they are going;

• establish strategies to get there;

• ensure that they are following the right path;

• distinguish priority actions from non-priority actions;

• allocate resources to objectives and strategies;

• take advantage of available capacity;

• creatively address changes and new scenarios.


Five elements comprise a strategic plan:

• Define mission, vision, activities and values

• Scan the environment using a SWOT analysis

• Identify and prioritize strategic issues

• Define strategic goals and objectives

• Establish an implementation plan and schedule


• A vision statement tells everyone the type of community or
world the organization envisions for its constituency as a
result of the work of the organization.

• A mission statement describes what the organization will do,


who it will do it for and how it will achieve the vision. The
mission statement is often the only statement many people
will read about an organization.

• An activities statement describes the business or general


activities you will use to achieve the organization’s mission.

• A values statement describes the principles and beliefs that


guide the operations of the organization.
SWOT ANALYSIS
• Capabilities - ability to perform or achieve certain
actions or outcomes
– Intersection of capacity and ability

• Technical capabilities - capability of a firm or organization


to aquire (buy) new technologies and technical resources
for research and development practices and processes
• Market capabilities - Integrative processes designed to
apply collective knowledge, skills and resources of the firm
to market-related needs of the business, inabling the
business to add value to its goods and services, adapt to
market conditions, take advantage of market opportunities
competitive advantage - are conditions that allow a
company or country to produce a good or service at a
lower price or fashion for customers
allow productive entity to generate more sales or
superior margins than its competitor
variety of factors
cost structures
brand
quality of product offerings
distribution networks
intellectual property and customer support
– comparative advantage - a firms ability to produce
a good or service at a lower cost than its
competitors
• generate a larger margin on sales
– differential advantage - firms products or services
differ from its competitors
• continuous technology
– An example of continuous technology development is the
personal computer.
– It seems personal computers become lighter and more
mobile every year. These changes in technology are not a
constant progression; instead, they happen over relatively
short periods of time. Therefore, they are viewed as
continuous improvements in the technology by consumers
because there are no major changes that occur at one
time. This progression is designed to change an existing
technology but not to change its functionality. The
innovation is aimed at improving performance, function,
and/or quality at a lower cost.
radical technology
development causes a dramatic change in the way things
are done. The initial introduction of computers altered the way
information was processed and stored in organizations and by
individuals. The automobile was a radical technology when
introduced. It provided an extreme change in modes of
transportation. No longer were individuals dependent on horses,
nor were they limited to where the railroads went. In the same
way, when Henry Ford took the theory of assembly lines and
began using it to make automobiles, he radically changed how
products were made. More recently, the smart phone has
changed the way we communicate and work. For example,
iPhones and BlackBerries are widely changing many industries by
speeding complex information to other locations such as heart
monitor information instantaneously to multiple doctors and
medical centers. These radical technologies established a new
functionality and a new way of doing things in business and
society.
Types of Technology strategy
• Business activity monitoring

• Business rules

• Decision automation

• Event processing

• Self service

• Robotics

• Communication Technology

• Machine Automation

• Modernization

• Process Automation
Business activity monitoring
a type of information technology that is used to
monitor business processes in real time. Such data is
typically aggregated into a condensed report that
displays key performance indicator. In many cases,
these are designed for managers across an organization
with views corresponding to each manager's goals.
Interfaces may also provide drill down capabilities. For
example, an executive manager may be able to view a
particular indicator at the organizational, department,
team or individual level
A Key Performance Indicator (KPI) is a
measurable value that demonstrates how effectively a
company is achieving key business objectives.
Organizations use KPIs to evaluate their success at
reaching targets.
Business rules
a way to represent business processes,
policies and procedures as a series
of conditional statements that may be
represented as text or a decision tree. They are
commonly used to train employees, support
decision making and automate business
processes.
Decision Automation

• use of software to automatically make


choices in business. It is distinct from a
decision support system because the software
can actually make decisions instead of just
offering information to humans who then
make decisions. Decision automation makes
choices based on preprogrammed business
rules
• For example, an elevator may be configured to
go to the restaurant floor of a hotel when it's
not busy. In other cases, complex
algorithms may be used to implement
decision making such as an elevator that
automatically optimizes its behavior for the
traffic patterns of a building.
Event Processing

• An event is anything that happens that is


significant to an enterprise. Event processing
is the capture, enrichment, formatting and
emission of events, the subsequent routing
and any further processing of emitted events
(sometimes in combination with other
events), and the consumption of the
processed events.
Self Service

• is a business strategy that automates


customer service by providing customers with
tools to serve themselves. It is typically
designed to reduce costs and may offer
benefits such as 24/7 service, elimination of
waiting time and increased functionality. Self
service technologies include bank machines,
ticket machines, vending machines, websites
and mobile applications that offer customer
services.
Robotics

• Robots are a class of machine that have


autonomous capabilities, meaning that they
can do things independently of external
control. They range from relatively dump
machines that are dedicated to a repetitive
task such as welding to sophisticated
machines that self-learn and self-improve.
Communication Technology

• Communication tools such as voice, text chat,


email and shared visual environments.
Machine Automation

• Machine automation is any information


technology that is designed to control the
work of machines. Many modern machines
have some form of computer control built into
them. In many cases, machines are also
integrated with business systems that provide
control inputs. For example, a machine may
be controlled by a factory automation system
that manages a production line.
Process Automation

• is any information system that's designed to


achieve business efficiencies by automating
decision making, business logic, user
interactions and/or physical tasks such as
manufacturing.
• Offensive Technology
– is not being used by competitors so that it gains a
competitive advantage.
– come from lower costs for the firm or from
providing value more effectively or efficiently to
customers.
• Defensive Technology
– obtain technology that others already employ.
– making the purchase in this situation feels it must
employ that technology to be competitive.
– This use of technology will not give the firm an
advantage, but it allows the business to match its
competitors.
– a firm acquires or employs a particular
technology to block its use by others.
Technology Assessment
• Estimating the effect of new products and
processes on the operations of a firm, other
firms, society, and the environment.
• Technology Assessment can be defined as a
study of impact of new technology and
steering possibilities
Technology that first leads on the
market
Technological Failure
Havilland Comet
First commercial jet airliner first flight
in 1952
Early crashes due to metal fatigue
2 comets crashed in 1954
Aircraft was withdrawn and had to be
redesigned..

Where do things go wrong?


Technology did not work at all
Paul Hermann Muller, DDT
Invented DDT (Dichlorodiphenyltrichloro
ethane ) in 1939 Against, insects and diseases such as malaria
and typhus
Won the 1948 Nobel Prize in Medicine
Accumulation in the environment and in organisms,
threatened bird species etc. This lead to the banning of DDT
in the 70’s and 80’s in western countries.

Where do things go wrong?

It did much more


Technology Assessment Defined
(early view)
Technology Assessment is an attempt to
establish an early warning system to detect,
control, and direct technological changes and
developments so as to maximize the public good
while minimizing the public risk