Strategic Technology

Management
Weeks 10-13

Overview
Lectures 1-4

Technology and Innovation Management

Business Strategy Overview: Theory, holistic approaches to planning

Technology audit

Technology management frameworks

Introduction to assignment 1
Lectures 5-9

Identification of innovations and emerging technologies

Selection of technologies and innovations to be pursued

Acquisition of technologies

Exploitation of technologies and innovations internal

Assignment 1 group report due teaching week 9

Introduction to assignment 2
Lectures 10-13
Assignment 1 viva week 10

Protection of technologies and innovations

Exploitation of technologies and innovations external, B2B Marketing etc

Strategic Technology Management planning, strategy and policy

Strategic Technology Management Tools and Techniques

Technology Road Mapping an environmental case study,

Scenario Planning,

Technology Intelligence
Assignment 2 due teaching week 15

TM Tools and Applications

Activities\To
ols

Patent
analysis

Portfolio
analysis

Acquisition

Exploitation

Road
mapping

Identificatio
n

Protection

Selection

*
*

Stage gate

Learning

S-Curve

*
*

Value
analysis

*
*

*
*

What influences a firms ability to

innovate?

Absorptive capacity is the ability of a firm to identify, assimilate and

exploit knowledge from the external environment
Cohen and Levinthal (1989)
Network involvement. The impact of networks varies by industrial
sector (Freel, 2003); Different geographies of networks are
important for different types of innovation
Local networks influence process innovation
National networks have a positive impact on service innovation
International networks are important for product innovation
(Abrei, 2008)

What influences a firms ability to

continue innovating?

Learning

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

Learning and exploitation

Our failure to learn can influence our
ability to exploit
Consider the case of Nano Materials and
Production technologies (NMP) in Europe

Investment is ok

Source: Oxford research AS and Austria Institute for

SMEs: Ex-post evaluation of NMP (FP 6), 2010

But we fail to exploit

Source: Oxford research AS and Austria Institute for SMEs:

Ex-post evaluation of NMP (FP 6), 2010

Why do you think Europe fails to

exploit its IP?
Clue think about theoretical models
what is required for successful innovation?

Why?

Hurdles that hamper the introduction of NMP in the EU are

widespread:
- limited know-how in the companies (SMEs) and understanding in
the public
- low technology transfer between academia and industry
- legal framework (bureaucracy, no specific support on
national/regional level)
- IPR issues (patent costs etc.)
- low private equity financing (VC etc.)
- high risk research
- high development costs
- complex funding programmes
- limited skilled labour with a multidisciplinary scientific background
etc.

Types of Exploitation
Business to Customer (B2C)
Business to Business (B2B)
Business to other ( public body, charity,
Not for profit etc)

Regarding Nano Materials and Production

technologies (NMP), which type of exploitation
is relevant?

B2B Marketing via online networks

Linked IN - http://uk.linkedin.com/
Cambridge Network http://www.cambridgenetwork.co.uk/home/
Business Forum http://www.ukbusinessforums.co.uk/forums/
Knowledge Transfer Networkshttps://connect.innovateuk.org/web/guest/home
Facebook
Twitter

Exercise
Explore the networks mentioned. How do
they differ?
Pick an online B2B website
Join the website
Search for technology-related groups
Join a relevant discussion group / forum

Exploitation continued
How do people find your technologies?
Technology Intelligence

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

20

Exploitation continued
How do you ensure you keep abreast of
what customers want / need?

Lead users (Von Hippel)

See the active use of lead users at 3M
http://www.youtube.com/watch?
v=tNKrX1QxN6U&list=PLD4C0E9AEDF08
5119

Brokering
The activities of a third party bringing together the
inventor with the exploiter
Example = Innovation Relay Centre (IRC)
http://www.south-norfolk.gov.uk/business/1499.asp
http://www.theknowledgenetwork.co.uk/directorydetails.a
sp?no=148
See overview of IRC network in supplementary reading
Example = Enterprise Europe
See: http://www.enterprise-europenetwork.ec.europa.eu/index_en.htm
Other private brokers exist

Recommended reading
Case 6 _Lipitor: The Worlds Best-selling
Drug (2008), Pages 400-404, Afua (2009)
How did the regulatory environment and
the companys lack of access to marketing
channels impact its decision to externally
exploit its new drug?

What happens when we have

a buyer for our technology?
The Due Diligence process

Due Diligence process

(buying and selling technologies)
Needs to involve the following:
Agree a provisional price and terms
Agree a DD period
Define the technology and associated assets/resources, including
third party dependencies
Review employment terms and conditions
Review outstanding litigation / ownership
Review major contracts and orders
Review IT systems and other technology
Review environmental issues
Review commercial management including customer service,
research and development, and marketing (e.g., life and sales
projections)

Revise or amend the price

Finalise terms

Scenario planning
Scenarios are internally consistent
descriptions of alternative possible futures,
based upon different assumptions and
interpretations of the driving forces of
change.
Ringland, G., (2006), Scenario Planning, second edition, John Wiley & Sons,
Chichester.

Scenario planning the process

1. Forecasting techniques are used to identify
critical indicators
2. Reasons for behaviour of indicators are
examined (regression)
3. Future events which impact on indicators are
identified
4. Best , worst and most likely scenarios are
planned
5. Impact of each is assessed on the business

Forecasting
3 main types of forecasting
Direct forecasting
Correlative forecasting
Structural forecasting

Direct forecasting
Involves expert opinion (e.g. Delphi
survey, nominal group approaches)
Nature-time series analysis
Trend extrapolation
Growth curves
Life Cycle substitution

Correlative forecasting

Scenarios
Lead-lag indicators
Cross impact studies
Technical progress studies
Functions analogies

Structural forecasting

Causal models
Regression analysis
Relevance trees
Mission flow diagrams
Morphology simulation models
Deterministic stochastic gaming

Scenario planning
Marketers expressing the future: Scenario planning for
marketing action by Pattinson, Hugh M.; Sood, Suresh
C.. Futures, May 2010, Vol. 42 Issue: Number 4 p417426,
Strategic Planning of Future Products with Product
Scenarios, by Grienitz, V., ; Blume, V., International
Journal of Innovation and Technology Management,
September 2010, Vol. 7 Issue: Number 3 p237-246, 10p
Renewable energy technology portfolio planning with
scenario analysis: A case study for Taiwan by Chen, TserYieth; Yu, Oliver S.; Hsu, George Jyh-yih; Hsu, FangMing; Sung, Wei-Nown. Energy Policy, August 2009

Exploitation and
Standardization

Tushman-Rosenkopf Technology
Life Cycle Model
Uncertainty, complexity and stage of evolution
dictate the degree to which a firm can influence
an industry standard
Technological discontinuity (disruptive
innovation) leads to an era of ferment
(uncertainty) leads to a dominant design leads to
an era of incremental change
This model suggest that technological progress
depends on factors other than those internal to
the technology.

Exercise - Consider the case of

electric cars
Read the supplementary materials on electric
cars
What are the non-technological factors affecting
the slow uptake of electric cars?

 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

Exercise - Standards bodies

Consider how the exploitation of new
smart materials e.g., for smart clothing,
might be affected by current standards.