MGT 302 “Management of Technology and Innovation” August 17, 2023
Chapter 1 : MTI-Its Importance Now and In the Future
Summary
Management of technology and innovation is critical to the organization. Because of innovations and
new technologies, we have historically seen the emergence of innovative organizational structures and
new ways of performing work. For example, the Industrial Revolution ushered in the functional
structure for organizations. As business moved from small craft businesses like blacksmiths to railroads,
there was a need to introduce a more complex business structure. Today, we see the innovations in
information technology changing structures to more network based with people being able to work
remotely. The changes in structure are innovations in the technology of how work is accomplished; the
innovations brought on by the invention of new products influence the technology we use and how we
use it.
Technology can be defined in a number of ways. The basic purpose of a system (such as an organization)
is to convert inputs into outputs. Therefore, we will define organizational technology as the processes
within the organization that help to convert inputs into outputs as well as the supporting evaluation and
control mechanisms. The management of technology involves the planning, implementation,
evaluation, and control of the organization’s resources and capabilities in order to create value and
competitive advantage. This involves managing:
1. Technology strategy—the logic of how technology will be used and what role technology will
have in the organization. For example, will innovation (first-to-market strategies dominate) be
the focus, or will the firm want to do things better to obtain market share and value (let others
take the initial risks)
2. Technology forecasting—the use of tools to study the environment for potential technological
changes that can both positively and negatively affect the firm’s value proposition. Digitization
of a variety of products such as watches and cameras provided great opportunities for some
firms and caused others to go bankrupt. Forecasting (or at least keeping an eye on the changes
in technology) is very important in management of technology.
3. Technology roadmapping—the process of taking an innovation or technology and trying to
build more value by looking for ways to use the technology in different markets and places.
4. Technology project portfolio—the use of portfolio techniques in development and use of
technology enhances the potential value of technologies being developed and the technologies
that are currently part of a firm’s portfolio. Disney was a leading producer of animated films.
However, Disney did not stop there—the portfolio of characters in the films are now marketed
as products and displayed in Disney theme parks, and Disney very carefully manages the
availability of the animated films.
MGT 302 “Management of Technology and Innovation” August 17, 2023
Innovation activities are an important subset of technology activities. Innovation includes “newness” in
the development and used of products and/or processes within a firm and within an industry. Invention,
new product development, and process-improvement methods are all examples of innovation.
Management of innovation includes both change management and managing organizational processes
that encourage innovation.
The management of innovation is more than just planning new products, services, brand extensions, or
technology inventions—it is about imagining, mobilizing, and competing in new ways. For the
organization, innovation management involves setting up systems and processes that allow newness
that adds value to emerge. Some firms, like Google and 3M, give some employees time during the
workweek to work on their own ideas with the hope of sparking new ideas that will add value. Google
News and 3M Post-it Notes are products that emerged from this practice. In order to manage innovation
processes successfully, the firm must undertake several activities (these can involve the study of
technologies currently in use).
1. Casting a wide net while trying to keep up with potential changes in the firm, the market, the
competition, etc. is crucial. Eastman Kodak was the dominant U.S. camera manufacturer. On
several occasions in their history they missed opportunities to take advantage of innovations in
their product line—they did not cast their net out. Land, the founder of Polaroid, went to Kodak
with his invention of instant photographs—Kodak said no. Kodak did not see the telephone as
a potential competitor until it was too late. Kodak was especially vulnerable because the firm
was a late entrant into the digital camera market. As a result of failure to cast a wide net in
keeping up with trends and innovations, Kodak went bankrupt.
2. Creating newness with existing products can expand the portfolio of value of a product. 3M has
done this with all kinds of tape and with different formats and forms of Post-it Notes. Asking
“how else can the product be altered or used?” is critical to developing platforms of products.
3. Creating a culture open to newness is critical to cultivating ideas. If the leadership of the firm
is open to ideas from all over the organization, then the firm will be more innovative. Some
large firms such as Texas Instruments encourage employees to start new businesses if TI does
not want to keep a product in house. Often, TI is the first investor and customer of these small
firms.
4. Communicating knowledge throughout the firm is important. This knowledge can be positive
and negative at first glance. For Post-it Notes, the glue used emerged from the laboratory efforts
to create a stronger glue to compete with Elmer’s Super Glue. Obviously, the outcome did not
meet the original goal, but the communication of the new formula’s characteristics—tacky and
leaves no residue—triggered other usage.
5. Changing with courage is necessary if a firm is going to manage innovation and stay
competitive. Too often firms get comfortable with where they are, narrow their focus in
studying the environment, and focus on building strength in their current market. This leads to
strategic inertia—not innovating and losing customers and market share to more innovative
companies. Just as Kodak failed to change, so did IBM—famously, the CEO of IBM was quoted
MGT 302 “Management of Technology and Innovation” August 17, 2023
as saying “who wants a computer on their desk?” as IBM continued manufacturing mainframes
while desktops and then laptops were emerging.
Organizations have to be flexible in the management of technology and innovation. Acer, in the opening
case, has used a variety of methods to acquire new technology and to innovate and expand its platforms.
When Acer started out, the management realized that being a domestic company in Taiwan was very
limiting, so they cast their net widely. They originally used internal R&D to grow. Then they expanded
their markets and their product lines through mergers and acquisitions. They have increased their
product offerings as the laptop market has matured. They are now using services platforms to continue
their expansion and growth.
