Unit V

 Technology strategy is the revealed pattern in the

technology choices of firms.
 The choices involve the commitment of resources for the
appropriation, maintenance, deployment, and abandonment
of technological capabilities.
 These choices determine the character and extent of the
firms’ principal technical capabilities and the set of
available product and process platforms.
Strategic
Diagnosis

Formulation
of Techy
Strategy

Crafting an
Implementation
Approach

Execution
 Formulation Crafting an
Strategic
of Techy Implementation Execution
Diagnosis
Strategy Approach

 Strategic Diagnosis:
◦ Environmental Assessment
 Technology Intelligence
 Profiling Competitive Domain
 Identifying Profit Sites
◦ Competitive Position of Firm
 Technology Inventory
 Firms’ Competitive Positions
 Techy Requirements
 Formulation Crafting an
Strategic
of Techy Implementation Execution
Diagnosis
Strategy Approach

 Formulation of Techy Strategy:

 Appropriation of Technology

 Deployment in Products

 Deployment in Value Chain

 Formulation Crafting an
Strategic
of Techy Implementation Execution
Diagnosis
Strategy Approach

 Crafting an Implementation Approach:

 Mode of Implementation

 Organisational Strategy

 Intellectual Property Strategy

 The technology related information that is useful
and utilized by firms during strategic decision
making.
 Most strategic decisions require two kinds of
external intelligence:
◦ Technology related
◦ Market related
 Descriptions of technology-related changes
currently taking place,
 Potential changes in the future, and
 Alternative descriptions of future change.
 It provides an understanding of current and
potential changes taking place in the
environment.
 It provides important information for
strategic decision makers.
 It facilitates and fosters strategic thinking in
organisations.
 Macro level Intelligence

 Industry level Intelligence

 Programme/ Project level Intelligence

1. Scanning the environment to detect ongoing and
emerging change,
2. Monitoring specific environmental trends and
patterns to determine their evolution,
3. Forecasting the future direction of environmental
changes, and
4. Assessing the current and future environmental
changes for their strategy and organizational
implications.
 MONITORING

SCANNING FORECASTING

ASSESSMENT

Fig: Steps in Gathering Techy. Intelligence

Delphi Technique
S-Curve Approach
Scenario
Morphological Analysis
 Delphi Technique

◦ Rather than meeting physically to debate the

question, the experts are kept apart so that their

judgements will not be influenced by social

pressure or by other aspects of small group

behaviour.
 S-Curve Approach Nuclear Rockets
1000000

◦ It implies a slow start,

100000
Jet Aircraft
steep growth and then a
10000
Prop.
plateau; characterising Aircraft
1000 Autos
Pony Trains
many technological 100
Express

developments. 1800 1850 1900 1950 1970 2000

Fig: S-Curves in Transportation

 Scenarios

◦ Scenarios represent hypothetical descriptions of the

sequences of future events and trends, that is, plausible

alternative futures.

◦ They typically include trends, patterns, events, assumptions

pertaining to these, conditions in the current envt., and the

dynamics that lead from the current state of the envt. to

some future state.

 Morphological Analysis

◦ This analysis concerns itself with the development of the

practical application of basic methods that will allow us to

discover and analyse the structural interrelations among

objects, phenomena, and concepts and to explore the

results gained for the construction of a sound world.

 Domains of Technology Choices (i.e. Techy Business

Connection)

1. Techy Appropriation or Commitments to build techl

capabilities

2. Deployment in products or Commitments to exploit techl

capabilities through new product devt.

3. Deployment in Value Chains or Commitments to exploit

techl capabilities in operations.

 The decision influence the ability to create new business

 It embraces both software and hardware.

 Appropriate techy capabilities are needed by firms for several

reasons:

◦ Acquisition of technology capabilities for survival.

◦ Acquisition of capabilities enables firms to manage value chain.

◦ Enables firms to redesign existing products or to develop new product.

 Activity in the value chain use techy to combine

components and Human Resource to produce output.

 Inbound Outbound Marketing &
Operations Service
Logistics Logistics Sales

Information System Technology

Firm
Planning & Budgeting Technology
Infrastructure
Office Technology

Training Technology
HR
Motivation Research
Management
Information System Technology

Product Technology
Technology Software Development Tools
Computer-Aided Design
Development Information System Technology
Pilot Plant Technology

Information System Technology

Procurement Communication System Technology
Transportation System Technology
Transportation, Basic Process, Transportation, Media, Audio & Diagnostic &
Matl Handling, Materials, Matl Handling, Video Recording, Testing, Commn
Storage & Machine Tools, Packaging, Commn System, System, Inforn
Preservation, Packaging, Commn System, Inforn System System
Example Commn System, Maintenance Inforn System
Testing, Inforn Methods Testing,
System Bldg.
Design/Oprn