CHAPTER 4

CRITICAL FACTORS IN MANAGING TECHNOLOGY

By
Department of Management and Technology
Faculty of Technology Management and Business
University Tun Hussein Onn Malaysia
 CHAPTER OUTLINE
Critical Factors

The Link Between Science

and Technology

Creativity and Innovation

Bringing Innovation to Market

Technology-Price Relationship

Leaders Vs Followers
Creativity Factors
Technology is an expression of human creativity

Developing novel
Creating Marketing
products &
technology Technology
services

Invention Innovation

• Creation of a product,
• Can be a concept, product
service or process that is
or process
new to an organization
• Occur as a result of human
• Improved product, process
ingenuity and imagination
or system
 Invention vs Innovation
Invention
Concept or the creation of novel
technology
Formulation of new ideas for
product/process
New to the world
Result from human ingenuity &
imagination
Happening by chance through trial &
error to satisfy need
Example : telephone
Innovation
Process of bringing an invention to
users/ marketplace/ industrial
application
The technology need not be novel or
groundbreaking
Does not have to be new to the world
Integrate existing technology &
invention to create new /improved
products
Research & Development
Example: cell phone, smart phone
Speed of Introducing Technological
Development into Social Use
Specific technology invention innovation Speed of
changes
Aspirin 1853 1899 46
Telephone 1860 1880 26
Photography 1871 1888 17
Ballpoint Pen 1888 1938 50
Aero plane 1903 1920 17
Helicopter 1907 1938 31
B&W Television 1907 1936 29
Color Television 1925 1953 28
Electronic Computer 1945 1951 6

5
The Link Between Science and Technology
• Science:
– Deals with the understanding the laws of nature.
– Lead to discoveries of fundamental knowledge about the
world, the universe and all living things.

• Technology:
• When scientific knowledge is
applied to the things we do in
life.
 CONT’D
• Until the 19th century science and technology grew up
relatively independent of each other.

• Separate and parallel development paths followed by science

and technology have now intersected.

• In the 20th and 21st century most technologies owe their origin
to scientific discoveries.
Example of Basic Research
Scientific discoveries:
Investigation of solar system, examines
how the sun produces energy

Invention:
Solar power systems

Innovation?
EXAMPLE OF APPLIED
RESEARCH

Scientific discoveries:
Investigation of particle physics; examines how
particles in an atom interact.

Invention:
Particle detectors: Medical imaging

Innovation?
X-ray, computer tomography (CT) scan, magnetic
resonance imaging (MRI)
COMPONENTS OF AN
INNOVATION CYCLE May never be developed into
marketable products

Invention

Has no
Scientific Adopting
instantaneous Innovation
discovery invention
commercial
value

Market

Buying or ignoring the innovation

INNOVATION INTERACTIVE MODEL
Latest sciences and
technology advances in TECHNOLOGY PUSH
society
response

Idea R&D Manufacturing Marketing Commercial

Product

response

MARKET PULL
Needs in society and the
marketplace
 CREATIVITY AND INNOVATION

• Innovation associated with the creation of

value or the satisfaction of a customer need.

• Creativity is the engine of innovation –

combining two or more ideas.
 CHARACTERISTICS OF CREATIVE ENVIRONMENT
• Permits people to work in areas of their greatest
interest.
• Encourage employees to have broad contact with
stimulating colleagues.
• Allows taking moderate risk.
• Tolerates some failures and nonconformity.
• Provides appropriate rewards and recognition.
 TECHNOLOGY – PRICE RELATIONSHIP
• If knowledge gap between the company (owner of the technology) and
the customer is high, the owner can command a high price for it.

Technological
Own Knowledge

Knowledge Gap Customer Knowledge

Time or Diffusion
 LEADERS VS FOLLOWERS
• Winner are those who can bring technology to the market.

• In terms of technological innovation, a firm can be one of

three types:

1. Leader: a firm that is the first to market an innovation.

1. Follower: a firm that misses the initial wave of

capitalization on a technology, but recognizes the
technology’s impact on its business.

1. Laggard: a firm that realizes a potential for profit of a

technology, but seldom influences the technology’s use.
 ADVANTAGES OF BEING LEADER
• Name recognition
• Better market position
• A chance to define the industry standard
• A head start on the learning curve
• Protective barriers
• High profit
• Delayed customer switching
• Favorable response by outsiders
 DISADVANTAGES OF BEING LEADER
• Large cost
• Being a target for competition
• Difficult to predict demand
• Difficult to sustain the lead
STRATEGIES - LEADER

Leader sustain their leadership through:

1. Invest in R&D to continue the development of a
technology.
2. Build technological resources and assemble a
workforce with the highest technical skills.
3. Work to diffuse own technology while delaying
competitors from getting into that technology.
STRATEGIES - FOLLOWER
• Follower do not have advantages over a leader, not
committed to any special design, process, or
technology.
• Has a chance to examine a leader's product and
attack it at its weakest point.
• Lower initial investment in R&D.
• Leverage investment to experiment and improve
on what already exist.
STRATEGIES - LAGGARD
• Laggard has least chance of being effective in
influencing the directions of the technology or
standards of industry.
• Some small firms with low R&D budgets become
entrenched.
• They have opportunity, however to find niches or
to create alliances with others will help propel
their technology forward.
 GROUP DISCUSSION

• Identify a company that changed from being

a follower to being a leader.
– What was its approach?
– How long did it take?
The end.
 CONTACT ME

+60-0127421076

hadilah@uthm.edu.my

Fb:

Department of Management and Technology,

Faculty of Technology Management and Business
Universiti Tun Hussein Onn Malaysia
THANK YOU
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Johor, Malaysia

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