This document is a chapter from a university course on entrepreneurship. It discusses the process of technological innovation over several stages: basic research, applied research, technology development, implementation, production, and marketing. It describes each stage in detail. It also discusses the roles of entrepreneurship and management in innovation and how organizations balance these approaches over a technology's lifecycle. The chapter assignment asks students to present case studies on innovation examples in small groups.

1. CS443 Course
Introduction To Entrepreneurship
p p
Spring 2009, Modern Science & Arts University
Chapter Five: The Process of Technological Innovation
Instructor:
Al-Motaz Bellah Alaa Al-Agamawi
Chapter Source, “chapter six: the process of technological innovation” from “customized
management of technology” book, by Tarek Khalil, 2000, McGraw-Hill Companies, Inc.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

2. Technological Innovation
2
The process of technological
e p ocess o ec o og ca
innovation is a complex set of activities
that transforms ideas and scientific
knowledge into physical reality and
real-world applications.
It is a process that converts knowledge
into useful products and services that
have socioeconomic impact.
It requires the integration of
q g
inventions and existing technologies to
bring innovations to the marketplace.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

3. Stages of Technological Innovation
3
Basic research: This is research for the sa e of increasing our general understanding
as c esea c : s s esea c o e sake o c eas g ou ge e a u de s a d g
of the laws of nature. It is a process of generating knowledge over a long period of
time. It mayor may not result in specific application.
society s
Applied research: This is research directed toward solving one or more of society's
problems. An example is research conducted to develop a drug for treating a known
disease. Basic and applied research advance science by systematically building
knowledge on previous knowledge.
Technology development: This is a human activity that converts knowledge and
ideas into physical hardware , software, or service . It may involve demonstrating the
p y , y g
feasibility of an idea. verifying a design concept. or building and testing a prototype.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

4. Stages of Technological Innovation
4
Technology implementation: This is the se o ac v es associated w introducing a
ec o ogy p e e a o : s s e set of activities assoc a ed with oduc g
product into the marketplace. Technology implementation involves the first operational
use of an idea or a product by society. It entails the activities associated with ensuring
the successful commercial introduction of the product or service . such as cost safety and
cost, safety,
environmental considerations.
Production: This is the set of activities associated with the wide spread conversion of
design concepts or ideas into products and services. Production involves manufacluring,
production control, logistics, and distribution.
Marketing: This is the set of activities that ensures that consumers embrace the
g
technology. It entails market assessment, distribution strategy. promotion , and the
gauging of consumers' behavior.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

5. Stages of Technological Innovation
5
Proliferation: This is the strategy and associated activities that ensure the widespread
o e a o : s s e s a egy a d assoc a ed ac v es a e su e e w desp ead
use of the technology and its dominance in the marketplace. Proliferation depends on
methods o f exploiting the technology and on the practice used for marketing the
technology.
technology
Technology enhancement: This is the se t o f activities associated with maintaining
a competitive edge for the technology. It entails improving the technology, developing
new generations or new applications for the technology, improving quality, reducing
cost, and meeting customers ' special need s. Technology enhancement increases the life
cycle of the technology.
y gy
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

6. The Process of Technological Innovation
6
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

7. The Innovation Chain Equation
7
Using a chemical analogy. Martin ( 1994) illustrates the technological innovation
h i ti
process as a chain equation.
A commercially successful innovation is the product of a sustained chain reaction. It
requires synthesis o f know ledge and expertise, entrepreneurial spirit, management
skills, recognized social need , and a supportive environment.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

8. The Innovation Chain Equation
8
The innovation chain equation reveals the important role of entrepreneurship in
connecting ideas to the marketplace.
When a technological turbulence takes place because of a scientific discovery or an
engineering development. it creates a loosely defined product structure.
It takes entrepreneurial and technical competencies, experimentation and creative
work, processes to solidly de fine the product.
It takes persistence and willingness t t k risk t b i th product t th
t k it d illi to take i k to bring the d t to the
marketplace.
These arc the conditions of entrepreneurial culture, young mindset, and heterogeneous
population- the type of conditions that lead to radical innovation .
The management role in the innovation chain emphasizes the need for stability and
co o a certain p ase
control at a ce a phase o f the innovation process.
e ova o p ocess.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

9. The Innovation Chain Equation
9
It permits running operations efficiently in order to achieve commercial success.
Formalized management takes a defined, product and connects it to a market using a
set of structured functions, formalized procedures, engineered work processes, defined
roles for employees, and safer capabilities.
Mill s (1996) provided very simplified but interesting definitions for several
components of the process of technological innovation . He called them minimalist
definitions:
d fi iti
Science: How things are.
Technology: How to do things.
Management : How to get things done.
Technology management: Doing things .
Entrepreneurship: Doing things to make money.
ep e eu s p: o g gs o a e o ey.
Innovation: Doing entrepreneurship.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

10. Entrepreneurial Versus Stewardship Management
10
Organizations are created to transfer knowledge or technology to the marketplace.
The structure the organization provides a system to integrate the resources required
to exploit the knowledge.
The objective of management is to guide the organization toward achieving its
mission while optimizing the use of resources.
Organizations can be managed in a highly structured, rigidly standardized way or in
loosely d fi d L format, entrepreneurial way.
l l defined. Less f t t i l
The former is associated with professional management, the latter with the
entrepreneurial management style.
In the early phase of technology development, an entrepreneurial style management
is needed.
An entrepreneurial sp creates disturbance in the system and helps organizations
e ep e eu a spirit c ea es d s u ba ce e sys e a d e ps o ga a o s
create new technology cycles or discontinue existing ones.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

11. Entrepreneurial Versus Stewardship Management
11
Once technology life cycle
is in the full growth phase or
in the maturity phase,
stewardship or professional
management may be needed
to exercise control over
operations.
ti
Successful organization
must be able to embrace
elements of these two
managerial styles.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

12. The Management Renewal Cycle
12
Apple came to view Steve Jobs its
founder, as too demanding and as spending
too much of its resources pursuing new ideas
that did not contribute positively to the
bottom line in the short ,run.
Apple hired A new CEO, Scully, who
agreed with Apple's b d to force Jobs out
d ith A l board t f J b t
and to foster a more orderly management
style to sustain progress.
Scully’s strength was in marketing, having
spent two decades in PepsiCo before joining
app e.
apple.
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

13. Chapter Assignment…
Assignment Deadline: After three weeks.
13
Class will be divided into four groups each group will take one of the following (note each group
ill have only 15 min to demonstrate its presentation)
will h l ):
Xerox Before, Xerox After,
Each group must present the case study as stated in the book, defending the point of view.
Each group presentation must align with the case study .
Through Searching the internet, prepare a presentation about one of the above cases from the case
point of view…
Prepare the presentation following the same logical sequence as the case study.
Apply all the concept, cycles, processes on the case for example and not limited to:
Creativity process, key people in innovation, success factor of entrepreneurship, product
life cycle, leaders and followers, competition at different p
y , , p phases, diffusion, stewardship…
, , p
Include all your references and source of information.
Include as much graph, diagrams and video as possible. Minimum Text per slide.
Assignment: case 1 page 108 and case 2 page 130
A i t d 130.
Book, Customized Management of Technology, Dr. Tarek Khalil
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi

14. 14
Q&A…
The Process of Technological Innovation Chapter 5 By: Motaz Al-Agamawi