Mastering Technology and Innovation Management

Definition of Technology

Technology is the body of knowledge and information specific to an activity that can be used systematically for the design, development, manufacture, and marketing of products or services, including the appropriate application of techniques associated with overall management.

Invention vs. Innovation

Invention is the act of creating something that does not exist. Innovation refers to the process by which new ideas are conceived, subsequently developed, and finally introduced to the market as new goods and services.

Technology Classifications

Technologies can be classified into three main types:

• Fundamental Technologies: Closest to scientific principles.
• Generic Technologies: Intermediate in nature.
• Application Technologies: Used for practical treatments.

Technology Assessment Methods

Two primary forms of technology assessment include:

• Toolkit Assessment: Operability & Functionality

  Aims to determine if a technology works and achieves the desired result in terms of operability, reliability, functionality, and other performance metrics.

• Economic Assessment: Profitability Analysis

  Evaluates if the technology generates the expected profit for the company.

Innovation: Definition and Concept

Innovation encompasses all technical, industrial, and commercial stages that lead to the successful launch of new products or the commercial use of new technical processes in the market.

Understanding Industrial Dematuration

Industrial dematuration refers to the stage of decline that follows maturity and saturation in an industry or product lifecycle. Factors contributing to this decline may include the failure to relaunch products, a lack of technological improvement, or insufficient marketing efforts.

Phases of the Innovation Process

The innovation process typically involves the following phases:

1. Generating Ideas
2. Basic Research
3. Applied Research
4. Development
5. Prototyping
6. Standardization
7. Manufacturing
8. Marketing

Goal of Innovation Management

The ultimate goal of innovation management is to build one or more sustainable competitive advantages for an organization.

Key Determinants of Competitiveness

Three crucial determinants of competitiveness are:

• Price
• Quality
• Productivity Change

Cost Strategy and Process Relationship

A significant relationship exists between cost strategy and processes. A successful cost strategy is achieved by effectively optimizing and aligning business processes.

Technology Strategy Types

Organizations can adopt various technology strategies, including:

• Technology Leadership
• Follower Strategy
• Niche Strategy
• Joint Venture
• Acquiring Technology
• Technology Conversion

Benchmarking: A Key Technique

Yes, benchmarking is a valuable technique that allows organizations to identify potential technologies relevant to other industries or research institutions, fostering learning and adaptation.

Impact of Continuous Innovation

While essential, continuous innovation can lead to a challenge: organizations may lose some benefits derived from accumulated experience. This is because the time between one change and another becomes shorter, consequently allowing less time to develop deep expertise and optimize processes based on long-term experience.

Quality's Role in Business Strategy

Quality plays a pivotal role in the formulation of business strategy. It enables the production of goods and/or services at more economical levels while ensuring full customer satisfaction.

Organizational Culture: Attitude Towards Risk

In an organizational culture, the proper attitude is one of comprehension and proactive risk assessment. If the person(s) responsible for a project do not encourage or are not held accountable for discouraging initiative, it would undermine that culture, thereby restricting individual initiative and creativity.