P AR T O N E

Laying the Foundation

Chapter

Management of
Technology and
Innovation:
An Overview

PowerPoint Presentation by Charlie Cook

The University of West Alabama
2007 Thomson/South-Western. All rights reserved.

Overview
Issues addressed in this chapter include:
The significance of technology, innovation, and their

management
The meaning of technology
The process of managing technology
The meaning of innovation
The process of managing innovation
The structure of this examination of the management

of technology and innovation

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Opening Comments
Alan Greenspan (former Federal Reserve Chair)
described the latter half of the 1990s as a
pivotal period in American economic history.
New technologies that evolved from the cumulative

innovations of the past half century brought dramatic

changes in the way goods and services are produced
and distributed.
Examples:

Increasing use of the Internet

A flood of startups

Vast changes in production and distribution networks

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Insourcing: The Other Side of the

Movement of Jobs to the U.S.
U.S. jobs created by foreign firms in the U.S. pay, on average,
19.1% more than what U.S. firms pay their employees.
U.S. subsidiaries of foreign companies employ a record-high 6.4
million Americans.
New foreign direct investment in the United States more than
doubled in 2003, to $82 billion, according to recent Department of
Commerce figures.
34% of jobs at U.S. subsidiaries are in manufacturing - more than
double the proportion of manufacturing at all U.S. companies.
During the past 15 years, manufacturing insourced jobs grew by
82%at an annual rate of 5.5%while manufacturing outsourced
jobs grew by 23%, or at a 1.5% annual rate.

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Sources of Differences and Similarities

Regulatory Institutions
The laws and regulations in a given country

Normative Institutions
The norms of various industries and professions

Cognitive Institutions
Influences that come from the broader society and

shape an individuals behaviormost commonly, the

culture of a country

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FIGURE 1.1

Process to Be ManagedDiscovery to
Application

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FIGURE 1.2

Systems View of Organizations

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Technology (as defined in this text)

The practical implementation of learning and
knowledge by individuals and organizations to
aid human endeavor.
It is the knowledge, products, processes, tools,
and systems used in the creation of goods or in
the provision of services.

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FIGURE 1.3

Areas Influencing the Management of

Technology
and Innovation

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Management of Technology (as

defined in this text)
The linking of different disciplines to plan,
develop, implement, monitor, and control
technological capabilities to shape and
accomplish the strategic objectives of the
organization.

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Cycle Encouraging MTI

Price Pressure
to Lower Prices

Use
Better Technology

Firms must focus on

greater efficiency
to maintain profits

Better Pricing
Information

More
Customers

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Innovation Defined (Rubenstein)

The process whereby new and improved
products, processes, material, and services are
developed and transferred to a plant and/or
market where they are appropriate.
Just-in-time (JIT) Inventory Management
A process innovation that ensures the inputs into a

production process are there just as they are needed

for the process.
Such a process innovation allows firms to save on
storage and capital costs.

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FIGURE 1.4

Innovation Categories

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Management of Innovation Defined

A comprehensive approach to managerial
problem solving and action based on an
integrative problem solving framework, and an
understanding of the linkages between
innovation streams, organizational teams, and
organization evolution.
It is about implementationmanaging politics,

control, and individual resistance to change.

The manager is an architect/engineer,

politician/network builder, and artist/scientist

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The Process Of Managing Innovation

Managing the Innovation Process
Separate funds for innovation
Periodically review informal proposals using a group

outside of line management

Provide clear direction on studies to be done and
follow-ups that are expected
Engage in boundary-spanning activities to learn from
and to gain understanding of what others are doing
Set realistic expectations
Provide a supportive atmosphere for debugging and
exploring variations as well as appropriate resources
for maintenance and service

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Management of Innovation
Characteristics of individual that enhance the
initiative that sparks innovation:
Asking questions to identify problems and

opportunities
Learning new skills
Taking risks and being proactive
Aligning strong personal beliefs and values with the

organizations values and goals

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FIGURE 1.5

Cyclical Innovation Process Model

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Actions in the Management of

Technology
Work with things already there
Maintain and/or upgrade products/processes
Manage and control of the knowledge, equipment, and processes in
an organization
Analyze whether or not knowledge, equipment, and processes are
up to date.
Direct the acquisition and development of knowledge, skills,
processes, etc. to meet objectives and gain competitive advantage.
Continually produce a successful technical product
It is about existing technology, continuous improvement,
optimization

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Actions in Management of Innovation

MOT that encompasses MOI:
Requires fostering an environment where innovative thought and

work are encouraged

Includes identification, creation, and marketing of a new

product/process/technology
Is how we lead our company from existing process to something

better and faster.

Involves proactively searching for ways to better technical

products.
Manages the process of invention+exploitation
Must encourage creative thinking and a willingness to take risks

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Strategic Management Defined

The effort by a firm to analyze its environment
and its own strengths and weaknesses and then
consciously choose the competitive path it wants
to follow.
Key Functions in the Strategy Process:
Plan
Implement
Control/Evaluate

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FIGURE 1.6

Organization of
This Book

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Managerial Guidelines:
To be proactive rather than reactive a firm
should:
Designate clear technology leadersindividuals who

champion change.
Know how the processes can work to help and to

hinder the development of new technology.

Assess objectively where your firm is on the

technology curve.
Assess the strengths and weaknesses of your

personnel and your approach to the management of

technology and innovation.
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Managerial Guidelines: (contd)

Set realistic priorities.
Develop excellent infrastructure to help find and take

advantage of potential opportunities.

Understand what the tasks are and how they are

connected and disconnected.

Be systematic in your search and assessment

processes, but review the system thoroughly to be

sure it is still applicable.
Savor every victory and learn from every failure.
Be confident that once you have made a decision, it is

a decision that will move you in the right direction.

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Key Terms

capabilities
cognitive institutions
innovation
just-in-time (JIT)
inventory management
management of
innovation
management of
technology
normative institutions

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platform
pulling
pushing
radio frequency
identification (RFID)
regulatory institutions
strategic management
systems view
technology

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