Design and Implementation
of
Technology Strategy:
Transforming Invention to Innovation
Lecture by:
by:
Djadja.Sardjana@gmail.com
27-Jul-09
27-Jul- IMT MM-Biztel
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Design and Implementation
of
Technology Strategy:
Transforming Invention to Innovation
Definition and Scope
IBM
30s
27-Jul-09
27-Jul- IMT MM-Biztel
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Definition
- Invention
- Innovation
- Innovation diffusion
- Innovation as part of Entrepreneurship Soul

Definition
An invention is an object, process, or
technique which displays an element of
novelty.
- Invention
Inventions may be concepts, physical
- Innovation devices or any other set of things that
facilitate an action.
- Innovation diffusion
- Innovation as part of Entrepreneurship Soul
The invention of a new product or process
occurs within what could be called the
techno-scientific sphere and it can remain
there forever.

Inventors

Definition
Innovation = the introduction of something new
- Change
- Invention
An innovation is an invention that has been put into
practice. Innovation occurs when someone uses an
- Innovation invention - or uses existing tools in a new way - to
change how things work
- Innovation diffusion
- Innovation as part of Entrepreneurship Soul

Innovation
„Innovation is the doing of new things or the doing of things that are
already being done in a new way… Innovation is a process by which
new products and techniques are introduced into the economic
system.“(Schumpeter
system.“(Schumpeter 1947)
“the first commercialization of an idea” (Fagerberg 2004)
idea”
An innovation is the implementation of a new or significantly improved
product, or process, a new marketing method, or a new organisational
method in business practice, workplance organisation or external
relations (OECD)
Innovation is an invention that has been successfully implementated
and introduced in the market

Features of Innovation
Novelty:
Innovation is something new
• Function
• Technic
• Design (?)
Implementation:
Innovation is introduced into market
Modification:
A innovation should cause a change/improvement

Innovator
To be able to turn an invention into an
innovation, a firm normally needs to combin e
several types of knowledge, capabilities, skills
and resources
An innovator is the person or organizational unit
responsible for combining the factors necessary

Innovators
Apple vs
Microsoft
5m

And this is not Innovation
Ceasing to use a process, a marketing method or an
organisation method, or to market a product
Simple capital replacement or extension
Changes resulting purely from factor prices
Customisation
Regular seasonal and other cyclical changes

Definition
- Invention
- Innovation
- Innovation diffusion / adoption
Is The spreading of innovations
new ideas and technology through society
- Entrepreneurship

Diffusion of innovation
Everett Rogers: Diffusion of Innovations (1962)
„An innovation is an idea perceived as new by the
individual.
Diffusion is the process by which an innovation
spreads…
Adoption is the decision to continue full use of an
innovation.”
innovation.”
5 Adopters‘ categories:
Innovators (2,5%)
Early adopters (13,5%)
Early majority (34%)
Late majority (34%)
Laggards (16%) Diffusion
3m57

Diffusion
The spread of a new product or process
throughout society or markets
Important process that enables an
innovation to contribute to economic
growth and welfare
Focus on adoption of innovations
Macro perspective

Innovation Diffusion

Definition
- Change
- Invention
- Innovation
- Innovation diffusion / adoption
- Innovation as part of Entrepreneurship Soul
Entrepreneurship is the practice of starting
new organizations, particularly new businesses
generally in response to identified opportunities.

Innovation as part of
Entrepreneurship Soul
“Entrepreneurial spirit” to innovate (Schumpeter)
Entrepreneurship as risk taking (Knight, Drucker, Hart,
Stevenson and Dial)
An entrepreneur is a person who undertakes and
operates a new enterprise or venture, and assumes
some accountability for the inherent risks
Entrepreneurship = starting a new businesses

Design and Implementation
of
Technology Strategy:
Transforming Invention to Innovation
BMW
1m05
Success and Failure
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80s: Success and Failure in new Product Development
Philiform - Philips

Innovators and Followers
(Teece)
Teece)
Success Failure
Follower IBM KODAK
personal computer instant photography
DUPONT EMI
Innovator teflon scanner

Innovators and Followers
Apply with the no
Likely failure
dominant design?
Supplementing no
Look for a partner
resources available?
Can the intellectual no
Likely failure
property be protected?
Likely to succeed

Success Factor Grading
1 Not so important Number of responses
2 Fairly important
0 2 4 6 8 10 12 14
3 Very important
Superior product
Strong market orientation
International orientation
More predevelopment
Sharp and early product definition
Properly executed launch
Organisational structure and climate
Top management support
Success Factors
Technological and Marketing synergy
Aim at attractive markets
Sharper project selection
Project control / Quality of execution
The resources must be in place
Speed
Stage gate system
Protection of intellectual property
Dominant design
Secure access to Complementary assets
Consumer Innovator / Lead users
Learning
Non-product advantage

Cassette Deck
Development time: two years.
The competitor develops a new deck in just half a year.
Now what?

Solutions:
• Concurrent Engineering
• Modular design and Platform design
• Marketeers and Engineers work together in an
early stage
• Rapid prototyping

Stage-
Stage-Gate according to Cooper

portfolio
management

Cooperation in the network economy
R&D, complementary
Access to knowledge
1. Access to knowledge technology,
share know how
market knowledge,
Access to new markets
2. Access to new markets
local party required
scale,
Efficiency
3. Efficiency
specialised partner
Clients do do not want
4. Clients not want
satisfy a need,
products, but tailored
products, but tailored
not a demand
solutions
solutions

Managing Diversity
• from ‘gold seeking’ to synergy with
market, product/application, technology
• PLUS operations fit
• PLUS cultural, human, strategic fit soft aspects
• yet complementary in competencies!

How to make a company more innovative?
a. An innovative company should create an
environment of learning and experimenting,
rather than planning.
b. HQ should facilitate the initiatives from
BUs, rather than direct BUs.
c. Venturing is not ‘just’ for getting new business,
but more and more to create new options.
d. Key to getting knowledge and strengthening
own competencies are strategic alliances.
e. Business teams which strongly disagree (yet
believe in a common objective) are more
innovative than a too well structured set up.

Leadership
Creative 9 Learning
and will to
climate organization
10 innovate
1
Customer 8
focus
High
involvement in 10 factors for
Joe Tidd et al., Managing Appropriate
structure
innovation Innovation, Wiley, 2008 and 2
7
an innovative
on, Chapter 11: Building
the Innovative Organization
Organization Key
Extensive
6 3 individuals
communication
5 4
Stretching
Effective team
individual
capabilities
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Some useful books: Conceptual (C), Instrumental (In), Reader (R)
1. Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 1980, 1986 and 1992. C, In.
2. Preston G. Smith and Donald G. Reinertsen, Developing Products in Half the Time, New Rules, New Tools, New
York, Van Nostrand Reinhold, 1991. Second ed. in 1998. In.
3. Steven C. Wheelwright and Kim B. Clark, Revolutionizing Product Development, Quantum Leaps in Speed,
Efficiency, and Quality, New York, The Free Press, 1992. In.
4. Gary Hamel and C.K. Prahalad, Competing for the Future, Breakthrough Strategies for seizing control of your
industry and creating the markets of tomorrow, Harvard Business School Press, 1994. C.
5. Stewart Bray, Total Innovation, How to Develop the Products that your Customers want, Pitman Publ./Pearson,
London, 1995. In.
6. Robert A. Burgelman et al. The Strategic Management of Technology and Innovation, 2nd ed., Irwin, 2007. C, R.
7. Robert A. Burgelman , Modesto A. Maidique and Steven C. Wheelwright, Strategic Management of Technology
and Innovation, second ed., Irwin, 2008. C, R.
8. R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt, Portfolio Management for New Products, Hamilton, Ontario,
McMaster University, 1997. In.
9. Joe Tidd et al., Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 1997.
Second ed. 2001. C.
10. Robert G. Cooper: Winning at New Products, Accelerating the Process from Idea to Launch, Addison-Wesley,
1993. Third ed. in 2001. In.
11. V.K. Narayanan, Managing Technology and Innovation for Competitive Advantage, Prentice-Hall, 2001. C.
12. Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston,
MA, Harvard Business School Press, 2003. C.
13. David Probert et al., Bringing Technology and Innovation into the Boardroom, Strategy, Innovation and
Competences for Business Value, European Institute for Technology and Innovation
Management/Palgrave/MacMillan, 2004. C, R.
14. Melissa A. Schilling: Strategic Management of Technological Innovation, McGraw-Hill/Irwin, New York, 2005. C.

Design and Implementation
of
Technology Strategy:
Transforming Invention to Innovation
Conclusion & Final Words
Burgelman
Innovation
3m42
27-Jul-09
27-Jul- IMT MM-Biztel
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