Technology management
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Technology management

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The value of technology roadmaps for technology planning, technology selection, and technological innovation has become widely recognized.

The value of technology roadmaps for technology planning, technology selection, and technological innovation has become widely recognized.

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    Technology management Technology management Presentation Transcript

    • Technology Management
      A presentation to Information Technologies for the Enterprise
      Ufuk KILIÇ
      Orcas Information Technologies
      Conference, Session – 2
      April 16, 2010, Istanbul TR
    • Porter’s Five Forces Model
      An industry’s profit potential is largely determined by the intensity of competitive rivalry within that industry
    • Porter’s Five Forces Model
    • Porter’s Five Forces Model
      Entry of competitors
      • How easy or difficult is it for new entrants to start competing, which barriers exist?
      Bargaining power of suppliers
      • How strong is the position of sellers?
      • Do many potential suppliers exist or only few potential suppliers, monopoly?
      Bargaining power of buyers
      • How strong is position of buyers?
      • Can they work together in ordering large volumes?
      Rivalry among existing players
      • Does a strong competition between the existing players exist?
      • Is one player very dominant or are all equal in strength and size?
      Threat of substitutes
      • How easy can a product or service be substituted, made cheaper?
    • Porter’s Five Forces Model
      SUPPLIER POWER
      Supplier concentration
      Switching costs
      Presence of substitutes
      Threat of forward integration
      Cost relative to total purchases
      BARRIERS TO ENTRY
      Absolute cost advantages
      Proprietary learning curve
      Economies of scale
      Capital requirements
      Brand identity
      Switching costs
      Access to distribution
      DEGREE OF RIVALRY
      Exit barriers
      Industry concentration
      Fixed costs/Value added
      Industry growth
      Intermittent overcapacity
      Product differences
      Switching costs
      Brand identity
      Diversity of rivals
      Corporate stakes
      BUYER POWER
      Buyer volume
      Buyer information
      Price sensitivity
      Threat of backward integration
      Product differentiation
      Buyer concentration
      Substitutes available
      THREAT OF SUBSTITUTES
      Switching costs
      Buyer inclination to substitute
      Performance of substitutes
    • Porter’s 5 Forces: Movie Industry
      DEGREE OF RIVALRY
      Few competitors - high concentration
      High exit barriers – stockholders
      High fixed costs
      Slowing industry growth
      Intermittent overcapacity
      No real product differences
      No brand identity
    • Porter’s 5 Forces: Movie Industry
      THREAT OF NEW ENTRANTS
      No economies of scale
      Capital requirements falling – digital technology
      No brand identity
      Direct, internet distribution
    • Porter’s 5 Forces: Movie Industry
      SUPPLIER POWER
      Limited suppliers: actors, writers, directors, special effects people
      Actors command high salary
      Need limited actors for successful film – few substitutes
      Some threat of forward integration (independent studios)
      High costs relative to total purchases
    • Porter’s 5 Forces: Movie Industry
      BUYER POWER
      Buyer volume vital (1st weekend sales!)
      Buyer information strong – blogs, internet buzz
      Pricing more sensitive ($10+) / piracy!
      No studio brand loyalty
      High movie / actor loyalty
      Low consumer concentration
      High DVD buyer concentration
      Many substitutes available
    • Porter’s 5 Forces: Movie Industry
      THREAT OF SUBSTITUTES
      No switching costs for consumers
      Moderate threat of substitution by consumers
      Increasing performance of substitutes – everyone wants ‘entertainment dollars’
      Movie companies responding with new distribution (VOD, Same-day internet/theatre release, iPod, etc.)
      Week 4: Chapter 9
      Competition
    • Intellectual Property Rights
    • Intellectual Property(Creations of the Mind)
      Inventions
      Literary and artistic works
      Company and product names
      Product designs
      Commercially valuable, secret business information
    • Types of Intellectual Property
      Patents
      Trade secrets
      Copyrights
      Trademarks
    • The Value of Intellectual Property
      U.S. IP is worth between $5 trillion and $5.5 trillion equivalent to 45% of U.S. GDP and greater than the GDP of any other nation
      2002 - copyright industries (music, publishing and software) accounted for 6% of the U.S. GDP - $600 billion
      Intangibles account for 70% of the current value of equities in the U.S.
    • What is a Trade Secret?
      Any formula, pattern, physical device, idea, process or compilation of information that both:
      • Provides a competitive advantage in the market place
      • Is treated by the owner in a way that can reasonably be expected to prevent the public or competitors from learning about it
      Examples of information protectable as trade secrets:
      • Engineering technology
      • Customer lists
      • Novel laboratory processes
    • Common Trade Secret Mistake
      Failure to take precautions to ensure secrecy
      Solutions:
      Confidentiality agreements
      Business partners
      Employees/consultants
      Physical measures to ensure secrecy
      Computer system security
      Segregation of secret information
      Limited disclosure of secret information
    • What is a Patent?
      Patentable Subject Matter:
      • Any new and unobvious substance, product, apparatus, method of making something or method of doing something
      • Design Patents
      • Plant Patents
    • Inventorship
      Conception of an idea
      Formulation in the mind of a definitive way of realizing that idea (i.e. – a concrete and complete solution to a problem)
    • Who Is Not An Inventor?
      Individuals that merely act as technicians under the direction of the actual inventors
    • What Constitutes Public Disclosure?
      Websites
      Advertisements
      Publications
      Discussions/Presentations – not under confidentiality agreement
    • The Easiest Way to Protect Your Invention
      January 1, 2009 – Disclose
      January 2, 2009 – Patent
      BAD
    • The Easiest Way to Protect Your Invention
      January 1, 2009 – Patent
      January 2, 2009 – Disclose
      GOOD
    • What is a Copyright?
      • Protects certain works that meet the following requirements:
      - Original
      - Sufficiently creative
      - “Fixed in a tangible medium of expression”
      • Protects “expression” of ideas, not ideas
      • Registration not necessary but affords additional rights
      - Legal presumptions of copyright ownership
      - Right to recover statutory (presumed damages)
      - Right to recover attorneys’ fees
    • What is a Copyright (cont.)?
      • Examples of copyrightable works: Literary works, musical works, sound recordings, motion pictures, sculptures, paintings
      • Grants “author” of the work the exclusive right to:
      • Make copies
      • Make changes to
      • Distribute
      • Publicly perform (e.g., choreographic works)
      • Publicly display (e.g., sculptural works)
      • Life of a Copyright is Long
      • Author’s life plus 70 years (works made for hire is 95 years from publication or 120 years from creation)
    • Copyright Notices
      Example: ©2007 Archer & Greiner, P.C. All Rights Reserved
      Use of notice not required
      Registration not necessary to use notice
    • Common Copyright Mistake
      “Work for Hire” Doctrine - Absent agreement to the contrary:
      Copyright in work created by an employee within scope of employment is owned by employer
      Copyright in work created by a third party is owned by the third party
      Solution: Written agreements confirming copyright ownership
      Website developers
      Marketing/PR Agency
      Software/technology developers
    • Copyright Infringement
      Unauthorized copying of copyrighted work resulting in a “substantially similar” work
      Can be exact copying of small portion of copyrighted work
      Can be substantial paraphrasing of copyrighted work
      “Fair Use” Defense
    • What is a Trademark?
      An indicator of the source of goods (trademarks) or services (service mark)
      “Any word, name, symbol, or device, or any combination that is used to identify and distinguish the goods of one seller from goods manufactured or sold by others, and to indicate the source of the goods.”
      Examples of trademarks:
      Archer & Greiner
      Coca-Cola
      ExxonMobil
    • What is a Trademark (cont.)?
      Like copyrights, registration not necessary but affords additional rights
      Legal presumptions of copyright ownership
      Right to recover treble damages
      Right to recover attorneys fees
      Trademark rights generally exist for as long as trademark is used in commerce
    • Trademark Notices
      Examples:
      ARCHER & GREINER®
      ARCHER & GREINER™
      Use of notice not required
      Registration not necessary to use notice
    • Trademark Infringement
      Generally prohibited from using a mark that is confusingly similar in use and appearance to another party’s mark
      Use may be prohibited even if two trademarks are not the same
      Use may be permitted even if two trademarks are identical
    • Common Trademark Mistakes
      Registration of a corporate name or domain name does not mean the name does not infringe a third party’s trademark rights
      .
      Solutions: .
      Trademark availability search .
      Review of registered and unregistered marks
      Trademark registration .
      Helpful but not necessary for protection . (like copyrights)
    • Technology Transfer to Developing Countries
      Source: UNCTAD Series on Technology Transfer & Development
    • Why is it needed?
      • Research & Development which gives birth to new technology is capital intensive
      • Incubation of new technology is time consuming and at times takes decades to be commercially viable
      • Developing nations often lack the infrastructure for developing new technologies
    • What is in for the Developed Nations?
      • Lower cost of labour
      • Tax benefits from host country
      • Extended technology life cycle
      • Spreading various risks over a large geographical area
      • Exploitations of host countries’ natural resources
      • Global presence and over all increase in turnover
      • Strategic trade & investment initiatives
      • Reduction of Carbon Footprint in Home country
      • … and many more...
    • Measures of Technology Transfer to Developing Nations
      Financing of Technology Transfer
      Training
      Partnerships & Alliances(Public Private Partnership Programs)
      Support for equipment purchase or licensing(FDI)
    • Financing of Technology Transfer
      Direct financing of technology transfer related activities such as
      Purchase of Equipment
      Licensing of particular technology
      Training of operators & maintenance personnel
      Adaptation of technologies to suit local conditions & standards
      Feasibility studies, project planning, etc.
    • Examples
      Canada Brazil & Southern Cone-Canada Technology Transfer Fund supports organisations in Argentina, Brazil, Chile, Uruguay, Paraguay
      C. T. Gas, Brazil
      Private Sector Development Program of Danida (Denmark)
      Best Foods Ltd. of Bangladesh
    • Transfer of Technology through FDI
      • FDI is one of the channels of technology transfer
      • Bring along new opportunities and challenges that may encourage suppliers to innovate
      • Direct trainings to suppliers and retailers of their product and services
      • Facilitate movement of manpower between firms thereby inducing higher efficiencies in utilisation of resources
    • Matchmaking and Provision of Information on Technologies
      • Information over-load is the biggest challenge
      • Which technology to choose and which to reject??
      • This is especially true where technologies change rapidly
      • United Sates – Asia Environmental Partnership (US-AEP) is one such body which aids developing countries to determine the best solution
    • Example
      • Removal of arsenic from drinking water in India
      • US-AEP worked with Central Ground Water Board & Rajiv Gandhi Drinking Water Mission
      • India purchased $4Million worth of treatment equipment from Apryon Technologies and Water Systems International
      • Apryon sells an integrated water treatment system that provides safe water on demand (8-12 liters per minute), easy to maintain & runs without electricity.
    • Promoting Public Private Partnerships
      PPP present an opportunity for combining
      Entrepreneurial, innovative & efficiency of private firms
      Flexibility of public institutions to deliver services in neglected areas
    • Example
    • Access to Venture Capital & Technology Transfer
      VC provides
      Support for product development
      Commercialisation of the product
      Management support
      Business & Marketing strategies
      Matchmaking services
    • Example
      Aureous Capital Fund supports SMEs in developing countries
      Aureous East Africa invested $4 million in Shelys Pharmaceuticals of Tanzania
      Development banks are examples of VC
    • International Alliances and ToT
      • Global business environment has led to formation of network involving partners in different countries
      • These networks reduce risks and share the costs associated with development of new products
      • Such arrangements are important in the area of financing and technology
    • Examples
      Human Genome project
      International Rice Genome Project
      Australian Centre for International Agriculture Research
    • Measures to Improve Host Country Absorptive & Technological Capacity
      • Some developed countries support human resource development in developing countries
      • They provide scholarships for higher education in their home countries
      • Also provide research and equipment support to academic, research and professional institutions in developing countries
    • Technology Policies
    • Need for Technology Policy
      • Need for technology policy is made by two things
      • Market failures that call for remedial action to restore equilibrium
      • Ability of the Government to undertake measures so that benefits of intervention exceed their costs
      • Technology policy is only justified where market failures are clearly established and investment is able to create net social benefit
    • Technology Policy
      Domains of Technology Policy
    • Skills
      Skills are essential pre-requisites for national competitiveness and technological mastery
      Competitive advantage of developing countries lies in their low cost labour. In the long run, countries have to raise skill levels to grow in open and competitive markets
    • Technological Effort: Research & Development
      According to “technological gap” theory innovation is essential to trade & competitiveness
      Countries that innovate, gain an advantage & export to countries which are lagging technologically
    • Research & Development Funding
    • Internalised Technology Transfer
      • FDI is an efficient way of transferring technology
      • Transnational Corporations are important investment agents
      • FDI can directly increase technology stocks by providing machinery, equipment as well as technological assistance and know-how
      • For many new technologies, internalised transfers are preferred, since innovators resist technological transfers to unrelated parties
    • “Externalised” Technology Transfer
      This is through transfer licensing and arm’s length purchases of know-how, patents, blueprints, etc.
      Licensing - is an agreement to transfer the exclusive rights to use technology from the innovator to the licensee in exchange for payments of royalty and licence fees
    • Infrastructure
      It is an essential pre-requisite for both individual firms’ and national competitiveness
      Includes technological infrastructure in telephone mainlines, personal computers, mobile phones, optical fiber networks, Internet hosts, etc.
    • Indian Technology Policy
    • Aims
      attain technological competence and self-reliance, to reduce vulnerability, particularly in strategic and critical areas, making the maximum use of indigenous resources;
      b) provide the maximum gainful and satisfying employment to all strata of society, with emphasis on the employment of women and weaker sections of society;
      c) use traditional skills and capabilities, making them commercially competitive;
      d) ensure the correct mix between mass production technologies and production by the masses;
      e) ensure maximum development with minimum capital outlay;
    • Aims
      f) identify obsolescence of technology in use and arrange for modernization of both equipment and technology;
      g) develop technologies which are internationally competitive, particularly those with export potential;
      h) improve production speedily through greater efficiency and fuller utilization of existing capabilities, and enhance the quality and reliability of performance and output;
      reduce demands on energy, particularly energy from non-renewable sources;
      j) ensure harmony with the environment, preserve the ecological balance and improve the quality of the habitat; and
      k) recycle waste material and make full utilization of by-products.
    • Objectives
      • Self Reliance
      • In a country of India’s size and endowments, self-reliance is inescapable and must be at the very heart of technological development
      • We must aim at major technological break-through in the shortest possible time for the development of indigenous technology appropriate to national priorities and resources
      • For this, the role of different agencies will be identified, responsibilities assigned and the necessary linkages established
    • Objectives
      Strengthening the Technology Base in
      R&D
      Education & training
      Skilled manpower
      Newly emerging areas such as information and material science, electronics & biotechnology
    • Questions?
      Thank You
      Ufuk KILIÇ
      Learn with us at ufukkilic.net
      Thoughts on business, technology, mobile, culture, design, and living life well.