Ch. 15 LO

Learning Objective – Chapter 15 LO1 – Decisions about technology and innovation are strategic, and managers need to approach them systematically. Assessing the technology needs of a company usually begins with benchmarking. Benchmarking compares the organization’s practices and technologies with those of other companies. Then the company will look at the environment through scanning’s. These scanning’s focus on what can be done and what is currently being developed. Both of these practices still might not be enough to stay ahead of the innovation curve and use disruptive innovation which refers to a process by which a product, service or business model takes root initially in simple applications at the bottom of a market and them moves “up market.” Managers should make an effort to be aware of disruptive innovation that could potentially displace established competitors in their industry. LO2 – After managers have thoroughly analyzed their organization’s current technological position, they can plan how to develop or exploit emerging technologies. Managers must consider several criteria when planning how to develop or exploit emerging technologies. To begin a manager must consider the market potential. Many innovations are stimulated by external demand for new goods and services. Next they should consider whether technological innovations are even feasible. After that they must carefully consider whether there is a good financial incentive for doing so. Then they must link technology and innovation strategies to their organization’s core capabilities. Finally, a manger must decide whether to adopt technological innovations while also taking into account the culture of the organization, the interests of managers, and the expectations of stakeholders. LO3 – Developing new technology may conjure up visions of scientists and product developers working in research and development laboratories. In many industries, the primary sources of new technology are the organizations that actually use it. However, new sources can come from suppliers, manufacturers, users, other industries, universities, and overseas companies. Essentially, the question of how to acquire new technology is a make-or-buy decision which is the question an organization asks itself about whether to acquire new technology from an outside source of develop it itself. These questions include if it is important in terms of competitive advantage that the technology remain proprietary, are the time, skills, and resources for internal development available, and is the technology readily available outside the company? The answers to these questions guide the manager to the most appropriate technology acquisition option. LO4 – Successful innovation is a lot more than a great idea. A study found that the lack of good ideas is hardly ever the obstacle to profitable innovation. Organizing for innovation involves unleashing the creative energies of employees while directing their efforts toward meeting market needs in a timely manner. Companies can unleash creativity by establishing a culture that values intrapreneurship, accept and even celebrate failures as a sign of innovation, and reinforce innovation through goal setting, rewards, and stories of creative employees. A powerful tool for managing technology and innovations is the development project. A development project is a focused organizational effort to create a new project or process via technological advances. These development projects typically feature a special cross-functional team that works together on an overall concept or idea.

LO5 – Managers today want, or should want, their organizations to become world-class. Being world-class requires applying the best and latest knowledge and ideas and having the ability to operate at the highest standards of any place anywhere. In order to get to world-class a company must build their organization for sustainable, long-term greatness. Great companies have strong core values in which they believe deeply, and they express and live the values consistently. They are driven by goals and have the ability to change continuously by driving for progress. A company must also replace the “tyranny of the or” with the “genius of the and.” The genius of the “and” is that multiple important goals can be achieved simultaneously and synergistically. World-class companies create high-value products and earn superior profits over the long run and that is what every company should be striving for.

LO6 – Change happens, constantly and unpredictably. And competitive advantage you may have depends on particular circumstances at a particular time, but circumstances change. Effective change management occurs when the organization moves from its current state to a desired future state without excessive cost to the organization or its people. People don’t like change for reasons such as inertia, poor timing, surprise, peer pressure, and management tactics. Motivating people to change often requires three basic stages that include unfreezing, moving, and refreezing. Managers can also use education and communication, participation and involvement, facilitation and support, negotiation and rewards, manipulation and cooptation, and explicit and implicit coercion. Each approach to managing resistance has advantages and disadvantages. Finally, managers must lead the change in order to establish a sense of urgency to their peers in order to maximize efficiency.

LO7 – Most change is reactive. A better way to change is to be proactive. Reactive change means responding to pressure after a problem has arisen. Preparing for an uncertain future requires a proactive approach. Proactive change means anticipating and preparing for an uncertain future. It implies being a leader and creating the future you want. People can proactively forge the future by being a shaper more than an adapter. An adapter takes the current industry structure and its future evolution as givens and choose where to compete. People can also actively manage their careers and their personal development, and become an active leader and a lifelong learner. Being willing to seek new challenges, and reflect honestly on success and failures is key to creating a successful future.