Management of Change, Innovation &

Technology (MCIT)

Dr. Naveen Virmani

Associate Professor-Operations & IT

1
Customer Requirements
• Understanding customer requirements plays significant role in
introducing new products/services to the market.
• Meet customer’s expectations and customer’s satisfaction is crucial
aspect.
• Utmost concern for quality of the products & services
• Data analytics to optimize resources and business decisions
• Adopting Lean and Agile Practices to handle market dynamics and
cost reduction

2
Defining Technology
• Technology can be defined as all the knowledge, products,
processes, tools, methods, and systems employed in the creation
of goods or in providing the services.
• It is the means by which we accomplish objectives.
• Technology is the practical implementation of knowledge, a
means of aiding human endeavor.
• For example: Smart Manufacturing, IoT, AI, ML, Metaverse,
Digital Twin, Bluetooth, RFID, Sensors.

3
• https://indianexpress.com/article/business/companies/foxco
nn-rs-8800-crore-manufacturing-plant-karnataka-8844061/

4
Tesla eyes investment in India: Plans to set up electric vehicle
factory and export hub

https://www.livemint.com/companies/tesla-eyes-investment-
in-india-plans-to-set-up-electric-vehicle-factory-and-export-hub-
11689311718169.html

5
Technology
• Technology refers to the tools, equipment, methods, processes,
and systems developed through scientific knowledge and
engineering practices.
• It encompasses both tangible and intangible elements that are
designed to solve specific problems, improve efficiency, or
enhance human capabilities.
• Technology can be in the form of physical devices (like
smartphones, computers, or machinery), software (like
applications and operating systems), or even theoretical
concepts (like algorithms or scientific theories).
6
Examples: Technology
• Smartphone: A technological device that combines various features like
communication, computing, photography, and more in a single handheld
device.
• Electric Vehicle (EV): A technology that replaces traditional internal
combustion engines with electric motors to power vehicles, reducing
emissions and dependence on fossil fuels.
• Artificial Intelligence (AI): A technology that involves creating intelligent
machines capable of performing tasks that typically require human
intelligence, like speech recognition, image analysis, and decision-making.
• Blockchain: A technology used to create secure and decentralized digital
ledgers, most commonly associated with cryptocurrencies like Bitcoin, but
with broader potential applications in areas like supply chain management
and secure data sharing.
7
8
9
Why Technology?
• Technology adoption is important for several reasons, as it can
have significant impacts on various aspects of individuals' lives,
businesses, and society as a whole. Here are some key reasons
why technology adoption is important:
• Innovation and Progress

10
• Efficiency and Productivity: New technologies often streamline
processes, automate tasks, and enhance overall efficiency.
Businesses that adopt relevant technologies can improve their
productivity, reduce operational costs, and provide better
products or services to their customers.
• Competitive Advantage: Organizations that adopt the right
technologies gain a competitive edge in the market. Embracing
innovative solutions can differentiate a business from its
competitors, attracting customers and investors who are
interested in modern and efficient approaches.

11
• Enhanced Communication and Connectivity: Technology adoption
enables seamless communication and connectivity, breaking down
geographical barriers and allowing people and businesses to
collaborate
• Access to Information and Education: Technology provides easy
access to a wealth of information and educational resources and
exchange information globally.

12
Improved Quality of Life: Many technologies are designed to enhance
the quality of life for individuals. From medical advancements to smart
home devices, technology can contribute to better health, safety, and
convenience.
Environmental Sustainability: Technology adoption can lead to more
sustainable practices. For instance, renewable energy technologies help
reduce reliance on fossil fuels, while smart city solutions can optimize
resource usage and reduce environmental impact.

13
• Data-Driven Decision-Making: With the proliferation of data,
technologies like analytics, artificial intelligence, and machine
learning enable organizations to make data-driven decisions, predict
trends, and identify areas for improvement.
• Global Reach and Markets: Technology adoption facilitates
expansion into new markets. Businesses can reach customers
worldwide through e-commerce, digital marketing, and online
platforms, opening up new growth opportunities.

14
• Economic Growth: Technology-driven industries often contribute
significantly to a country's economic growth. Research and
development, technological innovation, and the creation of new
markets can drive job creation and economic prosperity.

15
 Critical
success
factors for
AI adoption

16
17
Innovation
• Innovation, on the other hand, is the process of creating,
developing, and implementing new ideas, concepts, products,
or processes that result in significant improvements or
advancements.
• It involves the application of creativity and inventive thinking
to bring about meaningful changes, often involving the
utilization of existing technologies in novel ways. Innovation
can occur in various domains, including business, science, art,
and social systems.

18
Examples: Innovation
• Uber: An innovative ride-sharing service that leveraged the existing
technology of smartphones and GPS to create a convenient platform for
connecting drivers with riders.
• Netflix: An innovative streaming platform that transformed the way
people consume entertainment by leveraging the internet to provide on-
demand access to movies and TV shows.
• Airbnb: An innovative platform that allows individuals to rent out their
homes or spare rooms to travelers, disrupting the traditional hotel
industry by utilizing the sharing economy concept.
• Tesla Autopilot: An innovative advancement in the electric vehicle
industry, utilizing advanced sensors and AI algorithms to enable semi-
autonomous driving capabilities.
19
Innovation
• Process of using knowledge to solve a problem

• Innovation is different from invention, which is the discovery of

new idea, because it involves more than just coming up with an
idea about how to use knowledge to solve a problem.

20
Technological Innovation
• Use of knowledge to apply tools, materials, processes, and
techniques to come up with new solutions to problems.

• Technological Innovation is now the most important driver of

competitive success.

• Many organizations invest in research and development with

the goal of coming up with an innovative new product or
process that will give them an advantage over their
competitors.
21
• Advances in information technology also played a role in
speeding the pace of innovation.

• Computer aided design and computer-aided manufacturing

have made it easier and faster for firms to design and produce
new products, while flexible manufacturing technologies have
made system agile and shorter production runs economical.

22
Technological Innovation
• It has become important part of the process by which
companies in many industries generate competitive advantage,
making it a crucial part of firm strategy.

• In recent years, many companies have increased their level of

technological innovation to produce a greater variety of new
products, and to introduce those new products to a market
faster.

23
• Technological Innovations can come from any kind of technical
knowledge, from knowledge of computer science to knowledge
of biology to knowledge of new materials etc.

24
Why Technological Innovation is Important
• Technological Innovation is important source of value creation.

• Technological Innovation has tremendous economic impact.

• It also have profound effect on the creation of wealth for

individual entrepreneurs and corporate shareholders.
• Technological innovation is also important because it has a
major impact on our lives.

25
• Internet of Things (IoT): The interconnection of everyday
objects and devices through the internet, allowing them to
collect and exchange data. This innovation has led to smart
homes, connected appliances, wearable devices, and more.

• 5G Technology: The fifth generation of wireless communication

technology, providing significantly faster data speeds, reduced
latency, and the potential to enable new applications like
remote surgery and autonomous vehicles.

26
• Artificial Intelligence (AI) in Healthcare: AI applications in
medical diagnostics, drug discovery, and patient care have led
to innovations like AI-assisted diagnosis, personalized
medicine, and predictive analytics.

27
Evolution of Industry 4.0
https://www.youtube.com/watch?v=IMmnSZ7U1qM&t=83s

28
S-Curve of Technology Life Cycle

29
Emerging Phase: Technology is very new to market
• Performance index is less
• Lot of R & D goes on
• Lot of iteration with respect to technology goes on
Growth Stage
• Performance is relatively more
• R & D efforts are more
• Performance index gets increased

30
Mature Stage
• Performance index of technology cannot go a particular
benchmark however more effort, cost or investment are put.
• New technologies considered to be superior technologies then
only they will survive.

31
Emerging Technologies: AI, EV, ML, Digital Twin, Industry 4.0,
Metaverse
Growth Technologies: Solar, Wind, E-Commerce
Mature: LEDs, Petrol and Diesel Engines
Saturated: FAX machines, Film cameras

32
New Inventions that will blow your mind
https://www.youtube.com/watch?v=78iLznY0ae4

33
Order Winners and Order Qualifiers

34
Order Winners:
• Order winners are the unique qualities or characteristics of a
product or service that directly contribute to a customer's
decision to purchase it over alternatives.
• These are the factors that set a product or service apart from its
competitors and give a company a competitive edge.
• Order winners are specific attributes that customers consider as
a primary reason for choosing one product or service over
another.

35
• For example, if a company's primary selling point is fast
delivery, and customers are willing to pay a premium for this,
then fast delivery becomes an order winner for that company.
Other examples of order winners include superior product
quality, unique features, exceptional customer service, and
brand reputation.

36
Order Qualifiers:
• Order qualifiers are the minimal requirements that a product or
service must meet to be considered by customers. These are the
basic criteria that a product must satisfy to even be in
contention for a purchase. Order qualifiers are essentially the
prerequisites for consideration.

37
Example of Order Qualifiers
Automobile Industry: Safety features (e.g., airbags, antilock
brakes), Fuel efficiency, Reliability and durability, Regulatory
compliance (meeting emission standards)
Fast Food Industry: Food safety and hygiene standards, Timely
service, Menu variety, Clean and inviting atmosphere

38
Difference among order qualifier and order
winning
• In essence, order qualifiers represent the baseline expectations
customers have for a product or service. Meeting these
qualifiers is necessary, but it's the order winners that
differentiate a product or service and lead to a competitive
advantage.

39
How Apple Is Organized for Innovation: The
Functional Organization
https:// www.youtube.com/watch?v=5hENFA3CJUY&t=27s

40
Netflix
https://www.youtube.com/watch?v=bUFVJKwZYP4

41
Porter Five Force Model

42
Technology Strategy
• Technology strategy has to deal much more with issues of uncertainty than general
business strategy because technological change is highly uncertain.
• Technology strategy involves the creation of new products and services that are
sometimes new to the world, which demand different mechanisms for assessing
market needs and designing products than is the case with general business
strategy.
• Making decisions about technology projects requires the use of different decision-
making tools than is the case with nontechnology projects.
• Technological change opens up opportunities for new, high growth businesses in
ways not possible in other settings

43
Technology Strategy
• Technology strategy refers to the high-level plan and approach
that an organization develops to leverage technology in order to
achieve its business goals and objectives.
• It outlines how technology will be used as a competitive
advantage, innovation driver, and enabler of organizational
growth.
• A well-defined technology strategy aligns an organization's
technological investments and initiatives with its overall
business strategy.

44
Key Components of a Technology Strategy
• Business Alignment: The technology strategy should be closely
aligned with the overall business goals and objectives. It should
address how technology can support and enhance the core
activities of the organization.

• Goals and Objectives: Clearly define the specific goals and

objectives that the technology strategy aims to achieve. These
might include improving operational efficiency, enhancing
customer experience, enabling innovation, reducing costs, or
entering new markets.
45
• Innovation and Differentiation: Identify how technology can
be used to create a competitive advantage. This could involve
developing unique products or services, adopting emerging
technologies, or creating new business models.

• Technology Roadmap: Develop a roadmap that outlines the

timeline for implementing various technology initiatives. This
could include upgrading existing systems, adopting new
technologies, or building custom solutions

46
• Risk Management: Identify potential risks and challenges
associated with technology adoption and implementation.
Develop strategies to mitigate these risks and ensure the
security and stability of technology solutions.

• Scalability and Flexibility: Ensure that the chosen technology

solutions are scalable and flexible enough to accommodate
future growth and changes in business requirements.

47
• Integration and Interoperability: Address how different
technology systems and solutions will integrate with each other.
Compatibility and interoperability are crucial to ensure
seamless operations.

• Data Strategy: Outline how data will be collected, managed,

analyzed, and used to derive insights that inform business
decisions. This might include considerations for data privacy,
security, and compliance.

48
• Change Management: Develop plans to manage the
organizational changes that come with the adoption of new
technologies. This includes training employees, communicating
changes, and addressing any resistance to change.

• Measuring Success: Define key performance indicators (KPIs)

to measure the success and impact of the technology strategy.
This could include metrics related to ROI, customer satisfaction,
efficiency gains, and innovation outcomes.

49
Technology Audit

50
Technology Timing Strategy
• Continuum approach rather discrete types

• One or more strategies simultaneously

51
Cost Leadership Strategy:
• This strategy aims to become the low-cost producer in the
industry while maintaining acceptable quality. It focuses on
reducing costs in order to offer products or services at a lower
price than competitors.

• Example: Walmart is known for its cost leadership strategy. It

operates on thin profit margins while offering a wide range of
products at competitive prices.

52
Differentiation Strategy:
The differentiation strategy focuses on creating unique and
distinct products or services that stand out from competitors. It
emphasizes quality, innovation, design, and other factors that
make the product or service unique.

Example: Apple implements a differentiation strategy by

designing products with distinctive features, user-friendly
interfaces, and a strong focus on aesthetics.

53
Focus Strategy:
In a focus strategy, a company narrows its focus to a specific
market segment or niche and tailors its products or services to
meet the needs of that segment more effectively than broad-
market competitors.

Example: Rolex employs a focus strategy by targeting the luxury

watch market, catering to consumers seeking high-end,
prestigious timepieces.

54
Innovation Strategy:
• An innovation strategy focuses on continuous research and
development to create new and improved products, services, or
processes that can give the company a competitive advantage.

• Example: Tesla is known for its innovation strategy in the

electric vehicle market, constantly pushing the boundaries of
electric vehicle technology.

55
Joint Venture Strategy:
• In a joint venture, two or more companies collaborate to achieve
a common goal, often entering new markets or combining
resources for mutual benefit.

• Example: Sony and Ericsson formed a joint venture called Sony

Ericsson to produce mobile phones, combining Sony's brand
and Ericsson's expertise in telecommunications.

56
Blue Ocean Strategy:
• The blue ocean strategy involves creating a new market space
or industry with little to no competition, rather than competing
within an existing market (red ocean) characterized by fierce
competition.

57
Vertical Integration Strategy:

• Vertical integration involves controlling different stages of the

supply chain, either backward (toward suppliers) or forward
(toward customers). This strategy can improve efficiency and
control over processes.

• Example: Amazon practices both backward and forward

vertical integration by owning warehouses and distribution
networks (forward) and offering cloud computing services
(backward).

58
Types of Innovation
• Product Innovation
• Process Innovation
• Customer Service Innovation

59
Frugal Innovation
• One that sees resource constraints not as liability but as
opportunity

• Frugal organizations don’t seek to wow customers with

technically sophisticated products, but instead strive to create
good quality solutions that deliver the greatest value to
customers at lowest cost.

60
Frugal Innovation
https://csrbox.org/India_CSR_products_ModRoof_63

61
62
5 Steps in Change Management
https://www.youtube.com/watch?v=wxVgd8h1svU

63
Change Need Analysis

64
65
66
Important Technological Innovations

67
Product Variety, Volume and Innovativeness
History of Industrial Revolutions
68
Factors Contributing to Wealth Creation

69
• In 1970’s and 1980’s, U.S Industries were losing competitive
advantage, mainly due to Japanese and other Asian and
European Country Products.
• The National Research Council (NRC) (1987) report, it was the
link between technology creation and business exploitation that
was perceived as inefficient in many private and government
owned organizations.
• The effective combination of technology and business, and
brining technology in to marketplace in the form of products
and services, creates wealth.
70
Frugal Innovation
https://www.youtube.com/watch?v=s-S0HZeXe-k

• Doing More with Less

https://mitticool.com/shop/

71
• Hossain et al. (2016; p. 133) define “frugal innovation as a resource
scarce solution (i.e., product, service, process, or business model) that
is designed and implemented despite financial, technological, material
or other resource constraints, whereby the final outcome is
significantly cheaper than competitive offerings (if available) and is
good enough to meet the basic needs of customers.

72
Innovation Funnel

73
• Majority of effort and money invested in technological
innovations comes from industrial firms.
• Most innovative ideas do not lead to launch successful new
products.
• Many projects do not result in technically feasible products, and
those that do, many fails to earn a commercial return.
• According to study, combined data from prior studies of
innovation success rates with data on patents, venture capital
funding and surveys, it takes 3000 raw ideas to produce one
significantly new and successful commercial product.
74
Product Life Cycle

75
76
Types of Innovations
• Product versus process innovation
• Radical versus incremental innovation
• Competence enhancing versus competence destroying
innovation
• Architectural versus Component innovation

77
Product versus process innovation

• Product innovation involves creating new or improved

products or services that meet customer needs, address market
gaps, or introduce novel features. This type of innovation aims
to enhance the value that a business offers to its customers
• Examples: The introduction of a new smartphone model with
advanced features, a new flavor of a food product, or a software
application with enhanced capabilities are examples of product
innovation.

78
Process Innovation:
• Process innovation involves improving the methods, systems, and
procedures by which a business operates internally. The goal is to
make operations more efficient, cost-effective, and streamlined.
Examples:
• Lean Production: Adoption of lean principles to eliminate waste,
optimize resource utilization, and streamline production processes.
• Six Sigma: Application of Six Sigma methodologies to identify and
eliminate defects in processes, leading to improved quality and
reduced variability.

79
Radical versus incremental innovation

• Radical innovation involves introducing significant and transformative

changes that depart from existing norms, practices, and technologies.
It often leads to the creation of entirely new products, services, or
business models.
• Incremental innovation involves making gradual and small-scale
improvements to existing products, processes, or services. It builds
upon the organization's current capabilities and knowledge.

80
Examples of Radical Innovations:
Smartphones: The development of smartphones, such as the
iPhone, transformed mobile communication. Smartphones
combined features like calling, texting, internet browsing, and
apps into a single device, changing how people interact with
technology.

Electric Vehicles: The automotive industry is experiencing a

radical shift with the widespread adoption of electric vehicles
(EVs). Companies like Tesla have driven innovation in battery
technology, design, and sustainable transportation.

81
Examples of Incremental Innovations: The regular updates and
enhancements made to smartphones, such as improving camera
quality or battery life, are examples of incremental innovation.

82
Architectural versus Component innovation
• Architectural Innovation: Architectural innovation involves making
significant changes to the overall structure, design, or framework of a
product, system, or organization.
• It often involves reconfiguring how different components or parts of
the system interact with each other.
• This type of innovation can lead to major shifts in the way things work
and can have profound effects on the performance and capabilities of
the entire system.
Key Points: Holistic Change, Disruption, High Risk and High Reward

83
• Examples of Architectural Innovation: : Transitioning from
traditional brick-and-mortar retail to an online e-commerce platform,
or moving from internal combustion engines to electric powertrains in
automobiles, are examples of architectural innovation.

84
Component Innovation: Component innovation focuses on improving
or upgrading individual components or elements within a system while
keeping the overall architecture relatively unchanged. This type of
innovation aims to enhance specific features, functionalities, or
characteristics of the system without altering its core structure.
Key Points: Focused Improvement, Incremental Changes, Lower Risk

85
• Examples of Component Innovation: Upgrading a smartphone's
camera technology, improving the battery life of an electric vehicle, or
enhancing the processing power of a computer are examples of
component innovation.

86
Competence enhancing versus competence
destroying innovation

• Competence enhancing innovation refers to innovations that leverage

and expand an organization's existing knowledge, skills, and
capabilities. These innovations often build upon the organization's
core strengths and expertise.
• Competence destroying innovation, on the other hand, refers to
innovations that disrupt an organization's existing competencies and
render them less relevant or even obsolete. These innovations
introduce new approaches or technologies that fundamentally change
the way the organization operates.
87
Examples of Competence Enhancing
Smartphone Camera Improvements: Smartphone manufacturers
regularly release new models with enhanced camera capabilities, such as
better low-light performance, improved image stabilization, and higher
resolution. These incremental improvements build on the manufacturers'
existing competence in mobile technology and photography.
Automotive Fuel Efficiency: Car manufacturers continually refine their
vehicles to improve fuel efficiency. These advancements often involve
optimizing engines, reducing aerodynamic drag, and using lightweight
materials, all of which leverage the manufacturers' existing automotive
engineering expertise.

88
Competence Destroying Innovation Examples:
• Ride-Sharing Services: The emergence of ride-sharing services like
Uber and Lyft disrupted traditional taxi and transportation industries.
These services introduced a new business model that leveraged
technology and changed how people access transportation services.
• Streaming Services vs. Traditional TV: Streaming services like
Netflix and Hulu disrupted the traditional television broadcasting
model by providing on-demand content over the internet. This shift
required traditional broadcasters to adapt to the changing consumer
preferences and technological landscape

89
Change Management
ADKAR MODEL
Lewin's Change Management Model
Kotter's 8-Step Change Model
McKinsey 7-S Framework
• https://www.youtube.com/watch?v=MKfuCdxpF4I