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MGMT 544 Technology Management. Portland State University Dr. S. Perot Session 4. Class #4 - Agenda Designing and Implementing a Technology Strategy. Current News Items Student Presentations Discuss Readings (SMTI) Reading II-3 Management Criteria for Effective Innovation

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mgmt 544 technology management

MGMT 544Technology Management

Portland State University

Dr. S. Perot

Session 4

class 4 agenda designing and implementing a technology strategy
Class #4 - AgendaDesigning and Implementing a Technology Strategy
  • Current News Items
  • Student Presentations
  • Discuss Readings
    • (SMTI) Reading II-3 Management Criteria for Effective Innovation
    • (SMTI) Reading II-4A Exploring the Limits of Technology S-Curve. Part I: Component Technologies
    • (SMTI) Reading II-4B Exploring the Limits of the Technology S-Curve. Part II: Architectural Technologies
  • Break
  • Case Discussion
      • II-5 Charles Schwab & Co. Inc, in 1999
session goals
Session Goals
  • Develop a conceptual framework for assessing the technological capabilities of a business organization
  • Develop awareness of the range, scope, and complexity of the issues and problems related to strategic management of technology and innovation
  • Develop awareness of basic technological forecasting concepts, methods and techniques and applications
technology strategy
Technology Strategy

Answers the questions….

  • What technological capabilities are necessary for our SCA’s?
  • What technologies are needed to build / be part of our core products?
  • To what degree should we invest in technology development?
  • Should we “make”, “borrow” or “buy” technologies?
  • When and how should a new technology be launched into the market?
  • How should technology and innovation be organized and managed?
fundamental units of technology
7 Dimensions of product acceptability

Functional performance

Acquisition Costs

Ease-of-use characteristics

Operating Costs




Technology Demand Elasticities

Role of price in determining demand

Absolute elasticity represents responsiveness of total market demand to improvements in function, ease of use, reliability and cost

Relative elasticity market share shifts due to competitors new products better performance

Fundamental Units of Technology
determinants of success
Determinants of Success
  • Technology determinants are quality and significance
    • Eliminate core physical constraints of existing technology and determine significance
    • Identify new constraints – limit effectiveness
    • Determine qualitative technical balance --overall value determined by comparing first two items
new product context rate of adoption and profitability
New Product Context Rate of adoption and profitability
  • Determine if end product enhanced – functional performance or reliability improved?
  • Does the innovation enhance product value?
business assessment
Business Assessment
  • Determine impact on current business operations – supplier relationships, distributor, etc…
  • Identify any new business operations needed to support innovation
  • Determine marketplace adoption-- Demand
  • Is cost of delivering the product reduced?– Supply
  • Determine if latent demand expansion or price elasticity characterize new markets
    • If lower price per unit, market expansion hard to obtain
    • If market is driven by dramatic change in product effectiveness, increase in revenues more likely
review of charles schwab co
Review of Charles Schwab & Co.
  • Assemble into your project teams
  • Answer the following questions
  • Select a team spokesperson to share your answers and facilitate questions
  • Discussion Questions
    • What were the key factors underlying Schwab’s competitive advantage up until the mid-1990s? How have these factors reinforced each other?
    • Up until the mid-1990s, how did Schwab position itself in the brokerage industry? How did Schwab impact the industry?
    • In 2001, what should Schwab do to protect and leverage its strategic position in the brokerage industry? Please prepare an action plan.
tonight s take away
Tonight’s Take Away
  • Determine the rate of change in your industry
  • Can you use this data to project the rate of future change?
  • How fast must one company move to gain competitive advantage?
suggested reading
Suggested Reading
  • Philip B. Evans and Thomas S. Wurster, “Strategy and the New Economics of Information”, Harvard Business Review, September-October 1997
  • Don Tapscott, Alex Lowy, David Ticoll, Blueprint for the Digital Economy, Creating Wealth in the Era of E-Business, McGraw Hill, 1998