Strategic Technology

Management
Dr Elly Philpott
Weeks 5-9

Overview
Lectures 1-4

Technology and Innovation Management

Business Strategy Overview: Theory, holistic approaches to planning

Technology audit

Technology management frameworks

Introduction to assignment 1
Lectures 5-9

Identification of innovations and emerging technologies

Selection of technologies and innovations to be pursued

Acquisition of technologies

Exploitation of technologies and innovations internal

Assignment 1 group report due teaching week 9

Introduction to assignment 2
Lectures 10-13
Assignment 1 viva week 10

Protection of technologies and innovations

Exploitation of technologies and innovations external, B2B Marketing etc

Strategic Technology Management planning, strategy and policy

Strategic Technology Management Tools and Techniques

Technology Road Mapping an environmental case study,

Scenario Planning,

Technology Intelligence
Assignment 2 due teaching week 15

Assignment 2 objectives
Independently evaluate strategy and
technology management frameworks
Demonstrate a systematic understanding
of the relationship between business
strategy and technology

Assignment 2
See assignment brief, marking grid and
TurnItIn link in the assessment area on
BREO

A more advanced TM Model

Acquisition
Management
Exploitation

Acquisition
Exploitation
Identification
Learning
Protection
Selection
Cetindamar et al 2010

TM Tools and Applications

(Adapted from Cetindemar et al)
Activities\To
ols
Acquisition

Patent
analysis

Portfolio
analysis

Road
mapping

(adapted from

Identificatio
n
Learning

Protection

Selection

*
*

Stage gate

*
*

Value
analysis

(adpated

from original)

original)

Exploitation

S-Curve

*
*

Identification of technologies

Identification of technologies
S-curve
Stage Gate Process

S-Curve
The S-curve can be used as a strategic tool to
understand the product, industry or technology
life cycle
This model provides one way of predicting the
end of an existing technology and the arrival of a
technological discontinuity
S Curves are fundamental in forming technology
strategies
They have application in acquisition, exploitation
and identification

Be S-Curve aware
The limits of a particular technology can
be predicted using knowledge of the
technologys physical limits that is
ultimate performances of all technical
approaches are limited by physical laws
The rate of the advance of technology is a
function of the amount of effort put into the
technology and follows the S-Curve

S-Curves and projects

Informative on new product/process
introduction projects
Particularly if the project involves
exploitation of a technology
Can also inform when new /alternative
technologies need identifying informs
tasks
Predict the rate of expenditure on a project
cost control

Be S-Curve aware
http://ocw.mit.edu/courses/sloan-school-ofmanagement/15-351-managing-innovationand-entrepreneurship-spring-2008/lecturenotes/01_lecture.pdf

Major advantages of S-curves

Evaluating the different stages of a
technology
Pointing out the importance of being ready
for technological discontinuities
highlighting the importance of strategic
positioning in case of a decline of gains
Giving the company the opportunity to be
the first mover within a market
Fichman and Kemerer (1993)

S-Curve process
Longitudinal data collection on the basis of
a performance metric (expenditure,
number of patents produced, etc)
Observing the evolution and plotting the
curve
Using the resulting curve for decision
making

Relating S- Curves to market

activities
Technological
and market
uncertainties
exist. Manu
requires high
skills and
general
equipment.
Threats come
from old tech
and new
market entrants

Growth
starts.
Producers
know more
about the
tech
application
and
customers
needs. Some
standardizati
on possible.
Convergenc
e of design
starts to

Competition shifts
from differentiation to
product performance
and costs. Market
segmentation clear.
Manu uses highly
specialized
equipment.
Bargaining power of
suppliers and
customers increases.

happen.

fluid

transient

specific

Relating S- Curves to possible strategy

Compete with
competitors by
making deals
with distributors
and marketing
investments to
influence
customers
perceptions.

fluid

Consolidate
the product
positioning.
Increase
production
capacity
and process
innovation.

transient

Concentrate on
serving specific
customers.
Manufacturing
equipment is now
specialised. Create
barriers to firms
planning to enter the
market through
exclusive supplier
and distribution
channels

specific

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S- Curve example
See case study (Aventis) , pg 201
Cetindamar et. al (2010)

Identification of innovation and

emerging technologies
E.g., IPS2 report

Stage gate (Cooper, 1988, 1990)

A new product idea goes through stages
and gates before the decision to launch is
made
Each stage is cross-functional
Each stage has inputs, criteria and outputs
There are 13 critical product innovation
activities that need to be managed

Stage gate process

1. Initial screening
2. Preliminary market
assessment
3. Preliminary technical
assessment
4. Detailed market
study/marketing
research
5. Business/ financial
analysis

6. Product development
7. In house product testing
8. Customer tests of
products
9. Test market/ trial sell
10. Trial production
11. Pre-commercialization
business analysis
12. Production start up
13. Market launch

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TM Tools and Applications

Activities\To
ols
Acquisition

Patent
analysis

Portfolio
analysis

Exploitation

Road
mapping

Identificatio
n

Protection

Selection

Stage gate

Learning

S-Curve

*
*

Value
analysis

*
*

*
*

Selection of technologies

Selection of technologies
Value analysis
Portfolio analysis

Value analysis
Focuses on providing the required
functions at the lowest overall cost

Calculating Net Present Value

(NPV) (discounted cash flow)
PVbenefits=Cn/(1 + i)n
Where Cn = value of investment in n years,
I = discounting rate
NPV=PVbenefits-PVcosts now
NPV must be greater than zero for a
project to go ahead at a given discounting
rate

Example
If a project requires expenditure of 100,
000 now and will yield 200, 000 in 6
years, how will the manager evaluate
whether or not this is viable? (Assume a
10% discount rate ( interest rate from
bank))
What are the uncertainties in such a
calculation? How can a company
minimise there uncertainties?

Portfolio analysis
a dynamic decision process that
includes a constant updating and revising
of a companys active new technology
projects
(Cooper et al. 1999)

Portfolio analysis - continued

Provides the criteria for go/ kill decisions on
individual projects
Works on the assumption that risk can be
optimised
Provides the necessary marriage and focus
between strategic objectives and operational
instruction
Does not generally take into account project
decisions based on political, environmental and
macro-economic pressures

Different types of portfolio

analysis

Financial
Probablistic
Black Scholes
Strategic alignment
Scoring
Analytical Hierarchy
Behavioural (consensus)

Financial Portfolio analysis the

process
Divide projects into product/process
categories
Sort and prioritise projects in each
category based on NPV, internal rate of
return, payback
Decide resources to be distributed
Cross functional teams must rate the
projects within each group
Resources can then be assigned

Probabilistic Portfolio analysis

Analyses the outcomes of alternative
paths through combinations of projects
using potential payoff and probability of
success
Uses network analysis, PERT principles or
Monte Carlo analysis
See presentations on PERT and
MonteCarlo analysis

Representing A Portfolio: showing

the risk and reward in one place

Probability of Success

0.6
Feb
May

Jan
0.2

10

NPV

30

50

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Black Scholes options pricing

theory applied to Portfolio analysis
Applies to individual projects
Considers risks at different stages of the
project
Considers the financial consequences of
failure at different stages of the project

Strategic approaches to Portfolio

analysis
Projects are grouped as to their type e.g.,
NPI, process improvements, maintenance,
fundamental research
Management decides on the distribution of
funds based on individual alignment of
project type with business strategy

Scoring models for Portfolio

analysis
Company allocates a weighting to each
project based on importance to company
sustainable competitiveness
Company derives criteria for selection
between projects
Criteria and weighting then used to
prioritize projects

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Directed reading
Ford and Saren, Chapter 11, Identifying
and evaluating the options for technology
strategy in specific situations

Analytical hierarchy approaches to

portfolio management
Determine the relative importance of each
criterion
Then projects are compared to reach a
ranking of alternatives

Behavioural approaches to
Portfolio analysis
In the absence of sufficient quantitative
information i.e., for early stage projects,
methods such as Delphi method are used
to obtain consensus between managers

Portfolio analysis trends

What is being done well?

Who does portfolio management well?

Use of both quantitative and qualitative

measures
Having well established / implemented
decision criteria
PPM well aligned with regular P&C
processes
PPM Process, Organization and
Governance

Pharma / Healthcare is the best performing

industry
Organizations executing mostly R&D
projects do well
Organizations doing mostly IT projects are
below average

Which are the main areas needing

improvement?

Insufficient integration of PPM and resource

management
Portfolio not well aligned with strategy;
strategy unclear
Risk considerations/elements not reflected
explicitly
Portfolio management not aligned across
tiers/functions
Benefits management frequently not
executed

Source: NNC and Value Creation Associates, 2011

TM Tools and Applications

Activities\To
ols

Acquisition

Patent
analysis

Portfolio
analysis

Exploitation

Road
mapping

Identificatio
n

Protection

Selection

*
*

Stage gate

Learning

S-Curve

*
*

Value
analysis

*
*

*
*

Acquisition of technologies

Acquisition mechanisms

Buy
Take equity stake in another organization
License technology
Franchise
Joint Venture
Partnerships
Collaboration - reciprocal arrangements
Etc.

Exercise
Think of a business organisation that you
are familiar with. What acquisition
mechanism does it use?
Try searching keyword combinations of
the acquisition mechanisms in the
previous slide and the business name.

Deciding whether to acquire

technologies
Patent analysis
Portfolio analysis
Value analysis

Patent analysis exercise

What is a patent?
Where would I go to file a patent or to
search for patents in a particular area, in
the UK? In Europe? Outside of Europe?

Patents and Intellectual Property

A patent is a set of rights granted by the
government to a legal entity who is the inventor
or their assignee for a fixed period of time in
exchange for a disclosure of the invention
(Abraham and Moitra, 2001)

Why disclose? Why not keep it a secret?

Other problems?
See Dyson handout.
Other forms of IP protection exist.

Other forms of IP protection

Petty patent/Utility Model for mainly product,
technology
Design registration Visual appearance, not
functionality
Trademark registration name, logo, sound,
odour
Copyright Artistic works, computer programs
Trade secrets
Domain names
Scientific publications
Know how

Patent search
See: http://www.ipo.gov.uk/ipinsight.htm
https://www.gov.uk/government/publications/ipinsight-june-2014
Used to see whether something already exists,
whether your technology is novel; to understand
whether there is sufficient difference between
your technology and what others are doing
important for differentiation strategies

Patent search exercise

Think about your assignment brief. Identify
the technologies involved and try a patent
search
Is patent searching a useful method for
identifying key players? Competitors?
Potential partners?
What are the limitations of doing this for
your technology?

Patent analysis
A method of gathering competitor intelligence
Used in acquisition, identification and protection
Number of patents filed indicates the technological
outputs of a company
Monitoring the number of patents produced over time
allows the application of an S-Curve and therefore the
forecasting of saturation.
Analysis of trends i.e., changes in the content of
technical details, indicates the trajectory of a technology
Can be used to determine the strengths and
weaknesses of a competitor
Can be used to identify key resources of a competitor

Patent analysis the process

Patent search, categorization,
visualisation, integration
Categorisation by IPC or USPC, cocitation, co-word or co-classification
analysis. This allows groupings of patents
(Hint find a patent for your technology, what IPC or USPC is it? Use
this code to find other similar patents)

A company with a large number of cited

patents is likely to be critical to the
technology

Critical players exercise

Who are the critical players in your
technology? Why do you think this is?

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Problems with patent analysis

Patenting not only protects but also draws the
attention of bigger companies and or potential
counterfeiters
SMEs are reluctant to patent due to process
costs and defence costs against larger
companies who may infringe patents
Support in this area varies from country to
country
SMEs in the UK are notable for their lack of
patents compared with other European countries

Ref
See
Anthony F. Breitzman and Mary Ellen
Mogee (2002), The many applications
of patent analysis, Journal of
Information Science 2002 28: 187
DOI: 10.1177/016555150202800302

Top 20 companies in Europe by

numbers of patents filed

Top 20 companies in Europe by

numbers of patents filed
Where is:

Why are they not here?

Apple?
Microsoft?
3M?

Read 100 top

innovative companies

TM Tools and Applications

Activities\To
ols
Acquisition

Patent
analysis

Portfolio
analysis

Exploitation

Road
mapping

Identificatio
n

Protection

Selection

*
*

Stage gate

Value
analysis

Learning

S-Curve

*
*

*
*

Exploitation of technologies

Exploitation of technologies
Can be internal you productise your
technology yourself and find markets and
conduct sales
Can be external other organisation/s
productise your technology
We will look at internal then external

Exploitation of technologies
Roadmapping (used for internal and
external exploitation)
S-Curve (internal and external
exploitation)

Technology road
mapping
Motorola 1970s
A roadmap is an extended look at the
future of a chosen field of inquiry
composed from the collective knowledge
and imagination of the brightest drivers of
change in the field
Consists of a number of charts (one chart
per page)

Motorola Roadmap Matrix

- summary of product plans and technology forecast
Year
Tuning
Selectivity

1982

Push button

Display

1984

1985

1987

1988

LEDs

1991

Voice actuated

Data

Maps

3u CMOS

1u CMOS

Liquid crystal

Vehicular LAN

Fluorescence
Single wire

Digital modulation

PRODUCTS

1990

Digital signal processors

Paging
5u CMOS

1989

Touch pad - Synthesizers

SAWs

Stereo
Linear

1986

Push button - Synthesizers

Ceramic resonators

Subcarrier function
IC technology

1983

Glass fibre
500 kHz bandwidth

RECEIVER 1

RECEIVER 2

RECEIVER 3

Stereo

Plus:

Plus:

Scan

Personal
paging

Seek

NEXT GENERATION

FUTURE GENERATION

Plus:

A NEW SERVICE

Stock market
Road information
Remote
amplifiers
Remote controls

Super Hi Fi
Local maps
Willyard & McClees, 1987

International Technology Roadmap for Semiconductors, 2001

http://public.itrs.net/
Red brick wall

Lucent Technologies technology roadmapping approac

Source: Richard Albright The Albright Strategy Group, www.albrightstrategy.com

Generic roadmap - links resources to objectives

Layers connect:
Past
Market / Customers / Competitors /
Environment / Industry /
Business / Trends / Drivers / Threats /
Objectives / Milestones / Strategy
Products / Services / Applications /
Services / Capabilities / Performance /
Features / Components / Families /
Processes / Systems / Platforms /
Opportunities / Requirements / Risks
Technology /
Competences /
Knowledge
Other resources:
Skills / Partnerships / Suppliers /
Facilities / Infrastructure / Organisation /
Standards / Science / Finance / R&D Projects

Now

Plans

Future

Vision

Time
(know-when)
purpose
(know-why)

delivery
(know-what)

resources
(know-how)

Roadmapping - Planning for the Future

Time
M1

Market

P1

Product

Resources

P2

P3
P4

T1

Technology

R&D
programmes

M2

T2
T3

RD 1

RD 2

T4
RD 4

RD 3

RD 6
RD 5

Capital investment / finance

Supply chain
Staff / skills

Roadmapping - Links future to present

Time
M1

Market

P1

Product

Technology

R&D
programmes

Resources

M2

Where are
we now?
T1

RD 1

P2

P3
P4

Where do
we want
to go?

How can
we get
there?
T2

T3

RD 2

T4

RD 4

RD 3

RD 6

RD 5

Capital investment / finance

Supply chain
Staff / skills

The Road Mapping process

Activity 1 - develop first cut roadmap

Aims

Map knowledge and perspectives (on the

technology area) onto roadmap chart (issues on Yaxis, timeline on X-axis)
Identify and share key emerging issues

Roadmapping ethos
First-cut roadmap
Participatory

story

Quick
Exploratory
Creative

canvas

Active

Capture, structure and share knowledge

- know-why
- know-what
- know-how
- know-when
- know-who
- know-where

plans, forecasts,
issues, links,
challenges,
questions,
speculation

First-cut roadmap
Supplement information from introductory presentations

Consider all layers of roadmap

history, current plans, events, external actions,
future possibilities, issues, vision
Write 2-3 post-it notes each
place on roadmap (and share with group)
continue to populate roadmap
Identify key strategic issues relating to industrial needs
and academic expertise (arrow post-it notes)

Post-it protocol
If possible, indicate known / likely date (or period)

- if ongoing trend, estimate when it is likely to become importan

Use arrow to indicate ongoing trend

Indicate uncertainty
or speculation with ?
Show
important
linkages

Date

Summarise issue,
?
writing clearly
Quantify (or estimate), if possible
Spell out acronyms

Note:
If an issue is (or is potentially)
important then it should be on
the roadmap
There are no hard-and-fast rules
about content or format
The goal is to capture (and share)
an effective and true picture of
the key aspects of the system

Example of technology road mapping in

the environmental sector
See: (2005)
Philpott, E., Barnard, M., Supporting
Emerging environmental clusters: evidence from one EU
region, proceedings of ISBE Illuminating
Entrepreneurship the theory and practice of enterprise
creation and development, Blackpool, November

Roadmap template for i10 SEEK

2005

Market &
Business
Trends &
Drivers
Applications,
Products,
Services &
Systems
Technology,
Science &
Know-how
Resources

+1 year

+3 years

+10 years

+20 years Vision

Industry, market & business factors that influence development of environmental

sector applications, products, services, processes and technology:
- Social, technological, economic, environmental & political trends & drivers
- Global, UK & regional perspectives

Development and evolution of environmental sector applications, products,

services, processes and systems
- Capabilities, functionality and performance
- Manufacturing, operations, distribution & logistics

Development and evolution of supporting technology, science and know-how

Development and evolution of other resources

(cross faculty expertise, skills, networks, finance, government & Europe support..)

Schematic technology roadmap

First-cut roadmap

Activity 2 - develop sub-roadmaps

Aims:
Map more specific areas, e.g., for the environmental sector
the areas were chosen as:
End of pipe solutions, Leaner/cleaner technology, Natural resource
management & renewable energy

Giving consideration to:

Key market and business trends & drivers

Application, product, service, process and system performance &

functional requirements
Technology, science and resource options & requirements

Activity 2 - continued.
Actions:
Add stickers to large chart from activity 1
- what is key for your sub-area?

Work on own smaller chart

Prepare to feedback to wider group (one flipchart or overhead per
group)
Story of roadmap layers (high level narrative)
Links between layers and connections to overall roadmap
Contribution to workshop aims

Example of sub roadmap 1 (End of Pipe)

Example of sub roadmap 2 (Leaner and Cleaner)

Example of sub roadmap 3 (Natural resources and

renewables)

Narrative roadmap - schematic

2004 2005

Phase 2

Product development

Phase 2

Service development
Option Phase 2

Process development

Phase 2

Enabler

Technology development

Phase 2

Risk
Resources /
Other

2013

Capital, suppliers, partners, skills, etc.

Vision

Vision

Barrier

Business
goal

Decision
Technology

2006 2007

Market
target

Question

Strategy (key)

Product / Service / System Business

Market

2004

Feedback & Discussion

10 minute feedback from each group
Story of roadmap layers (high level narrative)
Links between layers and connections to overall roadmap
Contribution to workshop aims

Discussion

Idaho National Engineering and Environmental Laboratory, emi-web.inel.gov/roadmap/factsheet.pdf

Limitations of road mapping

Broad scope and complexity of issues
addressed means it can be difficult to manage
Uncertainties associated with the future
Gaps in available knowledge
Clarifying the business context (requires a
degree of self audit and market knowledge)
Alignment to strategy and updating when
strategy changes (See presentation by next
external speaker)

TM Tools and Applications

Activities\To
ols
Acquisition

Patent
analysis

Portfolio
analysis

Exploitation

Road
mapping

Identificatio
n

Protection

Selection

*
*

Stage gate

Value
analysis

Learning

S-Curve

*
*

*
*

Success factors for new product /

new service development

 2009 John Wiley & Sons Ltd.

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 2009 John Wiley & Sons Ltd.

www.wileyeurope.com/college/tidd

97