This document discusses key factors in managing technology, including the importance of creativity, invention, innovation, research and development. It emphasizes that managing technology requires continuous efforts to create new technologies and bring novel products and services to market. While invention generates new concepts, innovation involves integrating existing technologies into new products and systems. Both are essential for technology development and application. The document also examines types of innovation, how to foster creativity, and the importance of timing when bringing innovations to market.

1. Critical FactorsinManaging Technology Neil Esgra Critical FactorsinManaging Technology Critical FactorsinManaging Technology

2. 2/12/2011 Neil Esgra

3. The Creativity Factor Invention and Innovation

4. Technology is an expression of human creativity. Managing technology involves continuous effort in creating technology, developing novel products and service, and successfully marketing them. This requires great creativity along with a system designed to exploit it. 2/12/2011 Neil Esgra

5. It also requires an investment in research and development. R&D is a costly endeavor. It is a risky investment and therefore needs to be well managed. 2/12/2011 Neil Esgra

6. However, it is an investment in the future that cannot be neglected, nor can its value be underestimated. Technology creation and exploitation require a chain of events, starting with inventions and ending at the marketplace. 2/12/2011 Neil Esgra

7. 2/12/2011 Neil Esgra

8. Invention Invention is either a concept or the creation of a novel technology. It could be a product, a process, or a previously unknown system. The steam engine, the transistor, and the Xerox machine are examples of important inventions. A new composite material, a new manufactured product, and a new process constitute inventions. 2/12/2011 Neil Esgra

9. 2/12/2011 Neil Esgra

10. Innovation Innovation involves the creation of a product, service, or process that is new to an organization. It is the introduction into the marketplace, either by utilization or by commercialization, of a new product, service, or process. 2/12/2011 Neil Esgra

11. It does not have to be new to the world; rather, it is viewed as the first use of an idea within an organization, whether or not the idea has been adopted by other organizations already. 2/12/2011 Neil Esgra

12. The technology (or the product) need not be novel or groundbreaking. An innovation may be a change in industrial practice, which improve productivity. Successful innovation is a feat not of intellect but of will. The innovation process involves integration of existing technology and inventions to create a new or improved product, process, or system. 2/12/2011 Neil Esgra

13. 2/12/2011 Neil Esgra

14. Invention and Innovation An invention can be thought of as an event, while innovation can be thought of as a process. Inventions are not as common, and one invention usually precedes a number of innovations. Innovation represents the important connection between an idea and its exploitation or commercialization. 2/12/2011 Neil Esgra

15. Technological innovation includes “the initiation of the technical idea, the acquisition of the necessary knowledge, its transformation into usable hardware or procedure, and its introduction into society and its diffusion and adoption to the point where its impact is significant.” 2/12/2011 Neil Esgra

16. The bottom line of innovation is the market, which will buy or ignore it, thereby dictating success or failure. Management of Technology encourages invention and the management of innovation. Both are creative processes representing essential components of any technology – creation and application system. 2/12/2011 Neil Esgra

17. 2/12/2011 Neil Esgra

18. The Link BetweenScience and Technology

19. Science deals with understanding the laws of nature. This leads to the discovery of fundamental knowledge about the world, the universe, and all living things. Scientific knowledge focused on natural phenomena is neutral on the question of how this knowledge may be used. It is when scientific knowledge is applied to the things we do in life that knowledge enters the realm of technology. 2/12/2011 Neil Esgra

20. Components of an Innovation Cycle 2/12/2011 Neil Esgra

21. Types of Innovation

23. They are relatively rare and typically start outside the boundaries of a firm.

24. When they are developed within the boundaries of a firm, they signify the introduction of something that is not only new to the organization but drastically different from its existing practices.2/12/2011 Neil Esgra

26. They help companies maintain a competitive position in the marketplace.- Routine innovation is another term sometimes used to refer to the introduction of something that is new to an organization but very similar to what it had in the past. 2/12/2011 Neil Esgra

27. Creativity and Innovation

28. Innovation is associated with the creation of value or the satisfaction of a customer need. Creativity is the engine of innovation. The essence of creativity is combining two or more ideas to arrive at an entirely new one. Creativity favors the prepared mind and is often inspired by a sense of dissatisfaction with existing practice. Creativity depends on both people and environment. 2/12/2011 Neil Esgra

29. A creative environment has the following characteristics: Permits people to work in areas of their greatest interest. Encourages employees to have broad contact with stimulating colleagues. Allows taking moderate risks. Tolerates some failures and nonconformity. Provides appropriate rewards and recognition. 2/12/2011 Neil Esgra

30. The following characteristics exists in creative people who can convert their thoughts into innovation: The ability to produce a large number of ideas quickly. The ability to generate original and unusual ideas. Conceptual fluency The ability to standout and be a little deviant from others. Interest in the problem one faces. 2/12/2011 Neil Esgra

31. the ability to separate source from the content in evaluating information. Perseverance in following problems wherever they lead. Suspension of judgement and no early commitment. The willingness to spend time analyzing and exploring. A genuine regard for intellectual and cognitive matters. 2/12/2011 Neil Esgra

32. Bringing Innovation to the Market Bringing Innovation to the Market

33. The manipulation of the different stages of the innovation cycle’s sequence of events is an important and effective weapon. The sooner an innovation reaches the marketplace, the sooner a company can reap its rewards. However, a company that owns a technological innovation may want either to delay or to speed up the diffusion of technology in the marketplace in order to exploit its benefits 2/12/2011 Neil Esgra

34. Technology – Price Relationship

35. When an entity such as a company has a technological advantage, it is able to command a premium price for its technology. The magnitude of this premium is dependent on the value of the technology to customers. If the knowledge gap between company and the customer is high, the owner can command a high price for it. However, as the customer gains experience with the technology, the knowledge gap shrinks. 2/12/2011 Neil Esgra

36. The Timing Factor The Osborne Computer Company

37. One of the factors of vital concern in proper management of technology is the timely creation and introduction into the marketplace. Equally important is the introduction of follow – up technology that will improve performance. Continuous improvement of products and the production capability of the corporation are vital to the firm’s health and survival. Actions must be taken at the right time if an enterprise is to succeed in a competitive marketplace. 2/12/2011 Neil Esgra

38. The Osborne Computer Corporation 2/12/2011 Neil Esgra

39. For manufacturing and service organizations, time – based competition (TBC) is an important competitive weapon for achieving world – class status. TBC focuses on the entire value – delivery system to reduce the time required to deliver a product or service. Manufacturing organizations have switched to just – in – time (JIT) systems to compress time wasted in production and facilitate quick response to customer demands 2/12/2011 Neil Esgra

40. The Vision to Change Strategy The Vision to Change Strategy IBM and the Development of the PC Microsoft and the Internet

41. When a company has a strong market and its revenues are good, management tends to lose sight of environmental changes that may affect the company’s competitive position and sometime’s even its survival. It is very common for managers to be drawn into the routine day – to – day problems of running a business. This can make them lose their vision for change and enthusiasm for innovation. 2/12/2011 Neil Esgra

42. Short term successes can mask the need for change. The old adage “ If it’s not broken, don’t fix it” may lead management to maintain the status quo. In today’s world of fast – paced technological change, this can be a very dangerous posture to take, an attitude that can lead to loss of competitiveness. 2/12/2011 Neil Esgra

43. IBM and the Development of the PC Microsoft and the Internet 2/12/2011 Neil Esgra

44. Managing Change

45. The key issue for management in the current environment is how to utilize the existing capabilities of the organization to take advantage of the possibilities. The only thing certain is change. 2/12/2011 Neil Esgra

46. Productivity, Effectiveness, and Competitiveness

47. Productivity or efficiency in operation implies doing things right. Effectiveness implies the ability to achieve goals. Competitiveness indicates the standing of a company in relation to a known group. Managers are encourage to keep an eye on the future without neglecting the need to continue optimizing current options. 2/12/2011 Neil Esgra

48. Leaders versus Followers A Leader: is a firm that is the first to market an innovation. A Follower: is a firm that misses the initial wave of capitalization on the technology but recognizes the technology’s impact on it business. 2/12/2011 Neil Esgra

49. Advantages of Being a Leader Name recognition Better market position A chance to define the industry standard A head start on the leaning curve Protective barriers High profit Delayed customer switching Favorable response by outsiders 2/12/2011 Neil Esgra

50. Time is the only critic without ambition.-- John Steinbeck 2/12/2011 Neil Esgra