Technology Selection

1. 1
TECHNOLOGY MANAGEMENT
BTMU 1023
Lecture 10
Technology Selection

2. At the end of the lesson, the student should be able to
• Define technology selection
• Identify the key processes in selecting technologies among alternatives
• Recognize the strategic decision elements involved in selecting
capabilities.
2
Lesson outcome

3. •Selection is a process for making decisions that
takes into account important strategic issues.
•Selection starts with a solid understanding of
strategic goals
•Selection capability requires evaluating markets
and competitors in order to identify or develop a
relevant business model
3
Definition

4. Decision about technology strategy( Lecture 4)
become inputs to operational plans for functions
such as marketing and finance.
It also leads to decisions about which technology to
create, which ones to acquire, which ones to
collaborate, which ones to utilize or remove, and
how to keep protect technology.
4
Definition

5. 1 Technology audit
2 Forecast the technology
3 Analyze and forecast the environment
4 Analyze and forecast the market/user
5 Analyze the organization
6 Develop the mission
7 Design organizational actions
8 Implementation
Strategic
analysis
Strategic
choice
Exploitation
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Selection processes

6. •Utilize the information from the identification
process ( lecture 9)
•Potential technological decisions can be made
based on information about competencies,
capabilities, assets, environment, as well as goals
and expectations from the company.
•Before making any decisions, an assessment of the
technological gaps and opportunities needs to be
carried out.
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Strategic analysis

7. Gap analysis
• A gap analysis is a method in which a company compares its
current performance to its expected or desired
performance.
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8. • Analyze the competitive position of the company with
respect to its technology.
• It is necessary to conduct a gap analysis relating to the
competitiveness of technology and its impact on the overall
competitiveness of a company.
• If a company has a strong competitive position but weak in
technology, it needs to invest in a certain technology to
support its market dominance.
• https://youtu.be/sJAth8-O_gY?si=N_9l-qv1r4Y5-S_X
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Gap analysis

9. • Another tool that is commonly used together with gap
analysis in the selection process is value analysis.
• While gap analysis reveals the gap or what is missing in the
process, value analysis identify the value of the work that
the process does while making sure that the processes
produce the most value and stay in line with the company's
overall objectives.
• A value analysis analyses the value of a process. It
calculates the value of any given business process using
criteria such as cost and duration.
https://youtu.be/TT6tVH6cDMM?si=rFK-Cx6PiyuXMLaf
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Value analysis

10. After strategic analysis is carried out, firms go
through a process where they make decisions
based on available choices.
Decision makers must decide :
• which gap to tackle or
•Which innovation to be carried out for the value
set offered to the customer or
•Which opportunity to take advantage of.
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Strategic choice

11. Strategic choice
•Failed strategic choice 1
• Motorola’s $5bn Iridium satellite telephone
venture failed because it did not attract sufficient
users.
•Plus it didn’t break the complaints of high costs
and heavy handsets; in other words, its
identification of a market need was incorrect.
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12. • Failed strategic choice 2
• Hewlett Packard (HP) is a technology company specializing
in hardware and software development.
• Merger between HP and Compaq to form HPQ
• Failure due to cultural incompatibility. Lack of time to
compare and sync their system software to determine
where they were compatible and where improvements
were required.
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Strategic choice

13. • Successful strategic choice
• A positive example of the importance of strategic choices
is Apple’s I-phone.
• Although Apple is a computer company, it identified an
opportunity in the phone business and polled together
technological and organizational competencies to deliver a
new product that challenged the existing phone industry.
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Strategic choice

14. • Successful strategic choice
• investing in the right technologies that have allowed
AirAsia to build a robust digital infrastructure.
• In 2020, AirAsia launched Redbeat Academy to provide
staff with digital training. The goal is to improve skills in AI,
machine learning, data analysis, and cloud infrastructure
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Strategic choice

15. 15
Make/buy/collaborate decision
The "make or buy" decision is a strategic decision that
businesses must make when deciding whether to develop
technology in-house or purchase it from an outside supplier.

16. 16
Make/buy/collaborate decision
Make Buy
Resources such as capabilities,
expertise , budget are available
inhouse
Lack or resources such as
expertise, knowledge.
Market price is higher than
production cost
Reduce risk.
More control over quality and
delivery times.
Flexibility in terms of meeting
customer demands and
changing market conditions.

17. If technologies are critical or new, and the cost of their development is
high, then alliance/collaborations might be the best strategy for
acquiring technologies.
The make-buy-collaborate decision is complicated because of the
dynamic nature of technological change. This is why, when setting its
strategy, the firm needs to focus on value-creation more than anything
else.
For example, when IKEA introduced its modular furniture model, it
changed the roles of agents in the value chain: the customers became
transporters and assemblers of the products then purchased.
(collaboration with the customers)
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Make/buy/collaborate decision

18. 18
Collaboration strategy/ Strategic
partnership

19. • The process behind make-buy-collaborate decision may involve
considerations related to :
• IPR- intellectual property right
• Intellectual property rights, the legal structure for protecting innovations
from being copied,( Lecture 11)
• Complementary assets
• are capabilities that help the producer/innovator achieve the needs of the
market: sales, marketing, after-sales service.
• Dominant design
• de facto standard
• the one that wins the approval of the market, the standard to which rivals
and innovators have to seek if they want to command a sizeable market
share.
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Make/buy/collaborate decision

20. 20
Examples of dominant design
Qwerty keyboard
Automobile
Television

21. •Discuss one application of gap analysis in your life.
•How can make/buy/collaboration decision be
addressed?
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Discussion questions

22. References
1. Cetindamar, D., Phaal, R., & Probert, D.
(2016). Technology management: activities and
tools. Macmillan International Higher Education.
2. Other sources from the internet
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