The document discusses strategic planning and management of technology using the ARENA framework. It presents the ARENA framework which consists of three layers - the corporate, business, and function layers. It then provides examples of different business actions companies can take at each layer, such as skimming, storming, flooding, and piercing, to introduce, establish, and grow new technologies. It also discusses frameworks for assessing technologies based on their impact and importance, as well as challenges that can arise when development cycles do not align with product life cycles.

1. Management-Of-Technology Copyright © 2001 Alex Coman
The ARENA Genome: Harmonic Strategic Planning
Refinement Stages:
Arena, Focus, Action
Create Strategy
Corporate Layer:
Portfolio Businesses
Arena Layers: Maximize Value
Corporate, Business Layer:
Business
Business Positioning Products by
Function- Market Strategy ACTION
Define Hierarchy Function Layer:
Process, Project and Product
Agile value drive
Dynamic Vectors:
Change, Vision, Scenario.
Leader Navigates
Prof. Jacob A. Frankel, Chairman of Sovereign Advisory Group and Global Financial Institutions Group,
Merrill Lynch: JIT inventory management will help quick recovery.
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2. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Skimming (Type I disruptive
Focus: Returning R&D investment, Innovation) production capacity, Limited demand
Constrained
PC Processors VCRs Cell Phone
$ D $ D $ D
Matsushita
Orange
Cellcom
Cyrix K6 Sony
P III
VHS
Celeron Beta
Chasm
486 Niche
Products Satellite
Athlon P IV Beeper Iridium`
$819->$352 Ampex
Power PC Cost Pelephone
Diversification, $50K
Cow Cannibalization
Advantage
Adoption Rate Skim
Utility Follower
Capacity
Cost
Learning Curve Niche Distributors IBM
Leader
Effect
Moor’s Law Hong Kong
Effect
Gillette /Time Mass
Costs-4%/Y Quantity Market /Time
Quantity
Hedged Skimming:
Tang, RDC, Velcro
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3. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action:
Focus: Maximizing revenues during patent duration; Rigid demand
Storming
Storming Storming Storming
Pharmaceutical
$ D $ D 2.Follower: IBM effect
$ D 3. Open Architecture
Sensor
Mach3 Me Too:No Name
Divide
2. Excel Outsourcing
1. +35% Hong Kong Effect Compaq
Generic Ethical (+60%) Devoted Follower
Viagra
Prozak Atra 1.Leader: Apple
Closed Architecture
Self sufficient
Motorola Intel
Patent
Price
1st Mac OS Apple Apple MS, Lotus IBM
50% 2nd SW Computer Peripherals DOS/SW Computer Peripherals
50% Digital
Time Apple IBM++ Compaq
Distributors HP Dealers
IBM Cluster
Education Business
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4. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action:
Focus: Market share leadership (Eyeballs, Hits); Lock-in+Oligopoly+Value added
Flooding
Sony: $279+ Leveraged
Flooding RealNetworks Dumping
Nintendo: Dolphin Dumping
$ D IBM+3D by ArtX $ D $ D
Ford MS Xbox
Levittown 1. Server
$299.99 Navigator
Diners’ ($125) Sony 1. Client
Zara Launch: 2.
Navigator Acrobat
IKEA 800K games, Explorer
McDonalds 1.5M@2001 NT
$500M marketing budget
Hybrid Car
Dumping Economies of Scale
$ D Utility/User
2.Toyota
Honda
Total Cost
Users
Bob Metcalf’s
1.
I Network Externalities
B
M
W
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hi www.coman.org ARENA

5. Management-Of-Technology Copyright © 2001 Alex Coman
Market
consolidationWeb surfing in US, 50% of time:
March 1999, 50B Mins: 11 sites (60%=110)
March 2001, 73B Mins: 4 sites (60%= 14)
32% America Online Time Warner
1918 Oil Foreign 7.5% Microsoft
Model T Crisis 1/3 7.2% Yahoo
3.6% Napster
10 Disk drive Market
0
Competitors
80
60
40
20
1980 1982 1984 1986 1988 1990 1991
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6. Management-Of-Technology Copyright © 2001 Alex Coman
Low Cost Positive
Loop
Differentiation Low
Cost Price Cost/unit
Market Demand: Production Function:
Price Elasticity 3 2 Economies of Scale
1:Skimming 5
Dumping
Quantity 4 Quantity
Sold Manufactured
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7. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Piercing / Guerilla (Type II disruptive
Focus: Penetrating through niche, transforming non-entity into recognized brand
Innovation)
S.E. Asian Guerilla Linux Guerilla
$ D $ D
2.Red Hat
1.Shareware
Copy Left: Gnu, Ada
Dependable-Quality Earth-Moving-Equipment
Strong service and Support
Worldwide Availability
Strong, Loyal Full Line of Local Global Premium
Dealer Network Quality Products Assembly Volume Price
High R&D High Plant Low
Retail Margins Investment Investment Cost
Low Low
Dividends Debt High
Margins
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8. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Komatsu’s strategic Roll-out – Skinning the
Maru-C: “Encircle Caterpillar”
Cat
Protect home market against Caterpillar (’81:50% world earth-moving equipment vs.16%)
Licensing deals with: Cummins Engine, International Harvester.
Acquire technology and establish benchmarks.
Project Ace: Advance quality of small and medium-sized bulldozers above Caterpillar’s
Quality Circles companywide to provide training for all employees
Reduce cost while maintaining quality
Cost Down
Total Cost Down
Make Komatsu an international enterprise and build export markets
Develop Eastern bloc countries
Komatsu Europe marketing subsidiary established
Komatsu America established
Project B to improve durability and reliability and reduce cost of large bulldozers
Project C to improve payloaders
Project D to improve Hydraulic excavators
Establish presale and service department to assist construction projects in newly
industrializing countries
Respond to external shocks that threaten markets
V-10 program to reduce costs by 10%; reduce parts by 20%.
¥180 program to budget companywide for ¥180/$ when exchange rate was ¥240/$
Response to Oil Crisis: Project E establish teams to redouble cost and quality efforts.
Create new products and markets
Accelerate product development to expand line.
Future and Frontiers program to identify new businesses based on society’s needs
and company know-how.
EPOCHS: reconcile greater product variety with improved production efficiencies.
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(’84:Caterpillar=43% world earth-moving equipment vs.Komatsu=25%) ARENA

9. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action
How Has Compaq Stayed on Top of the Server Industry?, HBR
ProLiant 1000 ProLiant 1000
SystemPro ProSignia Rack Mountable
High
Relative
Level
Low Tim
1989 1990 1991 1992 1993 1994 e
Configurability
Manageability
Expandability
Application Compatibility
File and Print Compatibility
Performance
Price
Expandability
Application Compatibility
File and Print Compatibility
Performance
Price
Storability
Servicability
Security
Reliability
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10. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Strategic
Grid
US Office of Patents commissioner: “Everything that can be invented has been invented”,
1899 recommendation that his office be abolished.
Factory Strategic
High
Present ATM, Airline Bank
Strategic
Impact of Support Turnover
Technology Low Restaurant, Municipality, Bookstore, Insurance,
Hospital Broker
Low High
Strategic Grid Future
Strategic Impact of Technology
Disa
er
s
l P ow
tion
Strategic R ea
Importance
Importance
ppo
ct a
Fa
r
xpe
ve
ct
intm
or
o
Window of
tE
y
rn
ent
Tu
a
Support Opportunity
Gre
Time Time
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11. Management-Of-Technology Copyright © 2001 Alex Coman
Qualcomm 1999 annual Report p. 23
Mobile-Station-Modem Phone Chipsets 6th Generation MSM
50% Smaller; 300Hrs Sand by
Mixed signal; USB data interface
Features MSM3100
MSM5000
2x voice capacity
Faster data rates<153.6kbps
iMSM Family
High Data Rate technology<2.4Mbps
Internet; support3rd party OS/Apps
5th Generation MSM
200 hours standby
Faster data rates<86kbps
IS-95A/95B Compliant
MSM3000
4th Generation MSM
Highly cost effective
MSM2300
3rd Generation MSM
Used in QCP800 phone
MSM2
2nd Generation MSM
Chipset Developed
1st Generation MSM MSM1
R&D begins
Time/
90 91 92 93 94 95 96 97 98 99 Release
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12. Management-Of-Technology Copyright © 2001 Alex Coman
Wave PLM
Features/
Function Points
NT: Most Demanding Tasks
Windows CE User/Info Dir, Intelli-mirror
NT4.0: Large Data Proc.
1997 update: Cluster
1.6M copies
NT3.51: Web Server
No need for special SW
NT3.5: Faster, Stable
SOHO 2000: Premium,
93 NT3.1: 32 bit Professional,
29K copies Small Business
98: HTML editor
95: TCP/IP
Apr 92: Win 3.1: Screensaver,
TrueType
Mar 93:MS-DOS 6
4.1 5 Disk Backup & Compression
88: DOS 4
92 93 94 95 96 97 98 99 00 Time/Release
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13. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Float-glass process substitution
W.Europe
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14. Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Supply/Demand Chasm
20Typical Time Horizons by Industry, Mid-to-Late 1980s
Transportation
Transportation
Systems
Communications
Systems
Development Cycle (years)
16
Military &Forestry, Oil
12 Weapons Gas Reserves
Pharmaceuticals
Biotechnology
,Chemicals Mining
8 Paper
Photographic
Metal Products
Automobile
4 Medical&Dental Lodging
Computers Hotels
&Fashion Electronics Publishing Foods
Software
Textiles
Silicon Retailing&EntertainmentTobacco
Foundries
00
Financial 4 8 12 16 20
-Services Approximate Life Cycle of Products (years)
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