Challenges in the Management of New Technologies

The following sections are included:

• Contents

• Preface

Private service firms have largely diffused in the last years as external sources of technology that are accessed by innovative companies for supporting their innovation process. This paper in particular focuses on Technical and Scientific Service (TSS) firms that basically sell technical and scientific knowledge. Examples of TSS are contract Research and Development, laboratory testing, technology consulting and product development. The purpose is to offer a preliminary insight into the business models adopted by TSS firms and analyze the resulting strategic, managerial and organizational choices. This investigation is based upon the results of an empirical study on Italian nanotech companies.

The business models of dedicated biotech enterprises currently focus on the management of inventions with the aim of entering a virtuous growth cycle based on judicious directing of R&D projects (towards the market), the choice of intellectual property to be protected and traded, as well as managing financial options. We here deepen our understanding of the technological and organizational development cycle of these firms. We base ourselves on a series of semi-structured interviews with over 110 biotechnology firms within Quebec, one of the largest bio-cluster in Canada. This exploratory field study leads us to major paradoxical observations between organizational knowledge creation within biotechnology firms and the type of financial governance that is present. It ultimately shows three different modes of development within those firms: that is, pre-entrepreneurial, entrepreneurial and managerial, each staking out the progress of biotechnology firms, and also equally marked by two transformational ruptures (teleological and creativity gaps).

This paper summarises on-going research that seeks to improve understanding and practice in the use of partnerships between technology-based start-ups and established firms, drawing upon evidence from technology-based start-ups operating in Cambridge, U.K. The paper presents the rationale for this project, and seeks to place this topic within the wider literature on the use of partnerships. From this review of existing research, the resource-based view on partnerships is identified as a useful tool to help us understand the motives and operations of the partnerships between technology start-ups and established firms. The initial case studies allow us to structure the emerging issues around the five themes. Discussion of these themes focuses thinking for the next stages of the research which will map the different approaches taken by established firms to working with technology-based start-ups, and the views of investors into technology start-ups.

Based on a field study conducted in the retail industry, this paper examines the impacts and the potential benefits generated by an RFID application in a warehousing environment. Through a detailed investigation of the underlying business processes, we will demonstrate how process optimization can be achieved when integrating RFID technology.

Broadband Internet diffusion varies widely between the OECD countries. This paper examines the influence of several factors on the diffusion of broadband Internet. The crosssectional regression models are estimated using the data on broadband Internet subscribers in the OECD countries for the years 2001 and 2004. The basic findings are that preparedness for the broadband Internet, monthly price and the local loop unbundling are the most robust factors when explaining the broadband diffusion. Income and population density do not seem to have influence on broadband Internet penetration rates. Neither is the dummy variable for government ownership of the main telecommunication operators a statistically significant predictor of broadband diffusion.

A Management of Technology (MOT) strategy analysis should be used to position this firm to remain competitive in the medical device industry and to maximize the probability for sustaining a competitive advantage. This analysis was built from MOT knowledge and experience in R&D where 'new to the world' medical device products were consistently being developed. These medical devices are now the preferred treatment by patients and the medical specialties of Interventional – Radiology, Cardiology and Neurology. This MOT strategy analysis includes: continuous scanning of landscapes, SWOT analysis, scenario analysis, understanding patient and physician needs, and balance of the firm's capabilities (current and future) for the best possible outcome. This analysis is not a one time effort but a continuous or quarterly review so that the firm remains competitive and positioned to maximize opportunities. The outcome for this firm is: 1. Understand methods of MOT strategy analysis to build innovative products and competitive lead. 2. Four key points to implement immediately.

Amid the momentum of digital convergence taking place in Korea, both between fixed and mobile networks and at the industry level, the portable Internet is quickly emerging as a leading next-generation communications service. To increase its odds for success, the portable Internet service must meet potential users' needs and deliver the kind of benefits they expect, and correspond to related preference factors and patterns of usage. In this paper, we forecast the demand for the portable Internet service, based on the results of a consumer survey, and conduct an in-depth investigation of adoption factors, to provide strategic suggestions for improving market prospects for this service.

The goal of this study was to explore how scenario analysis may be used in evaluating the future business environment of an emerging technology, namely Grid computing, that also contains features of a disruptive technology. Grid computing may change the traditional product-based computing to service-based activities which would have a major impact on the industry. The scenarios were created in an expert workshop in Geneva in December 2003. Four environmental, explorative scenarios in the 2010 timeframe were designed, by firstly identifying the main driving forces and evaluating their uncertainty and impact. The most important driving forces that emerged in voting were the issues of security and value creation, and they formed the dimensions for the scenarios to be created: strong added value vs. publicly supported development, and mistrust concerning the security issues vs. blind trust. The scenarios were named Brave New World, Commercial Dodo, Trust Me, and Dead Duck. After refining the scenarios, they were approved by the expert workshop participants. The scenarios brought up various issues that will have to be solved before the commercialization of Grid services. Because of its flexibility, scenario analysis was regarded as a suitable method for examining the complexity related to the future of Grid computing.

In order to achieve a better understanding of the computer services as a catalyst of innovation for local economies, some issues have to be addressed, as follows: a) the links between the processes of innovation, and the cognitive exchanges underpinning such processes; b) the peculiar operational methods and activities performed by computer services; and c) the constraints and problems that can hinder the use of such services in a specific local context. The paper assumes a perspective that considers the spread of an innovation as a process of knowledge transfer and dissemination, and applies it to a case-study investigation about the role of innovation agents played by some computer services companies in the North-east of Italy.

Customers are demanding lower prices, a larger range of products and faster product innovation. Despite steady streams of advanced technologies developed to support product development many companies find it difficult to achieve the full potential of these as practical advices on selecting and implementing new technology are rare (Boer and Krabbendam, 1998). On the basis of case studies within the highly competitive fashion business the aim of this paper is to present strategic as well as practical aspects on how a company can improve time to market of styling objects (optical frames).

In the past five years e-government initiatives have gained tremendous momentum and as a result governments worldwide are actively pursuing them. The implementation methodologies currently available view the implementation process as a progressive technological build-up resulting eventually in cost savings. It is important, however, that these methodologies take into consideration value-addition as early as possible. This paper presents the case of Dubai Municipality (DM) which has taken value-centric steps that have led to successful implementations and high acceptance rate. These steps are: 1) Developing effectiveness measures to track and measure value added; 2) Identifying high value services to both customers and the government; 3) Selecting services that are highly visible as well as less complex to implement first from a list of high value services; 4) Developing services through an all inclusive process in which the stakeholders are both involved and contribute to defining the final product; and 5) Providing training and support after implementation. These value-centric steps are generic and can be incorporated in any implementation process to add value that uses technology effectively to enhance service quality and reduce costs.

The Internet provides a global network infrastructure that is shifting business models, strategies and processes. Many authors reflect on the importance of incorporating e-business into the firm's global strategy. This paper deals with these issues in discussing the introduction of e-business activities by General Motors Brazil, specifically in connection with the launch of the Celta, an entry-level car designed to be sold on the Internet. A key to successful Internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and CIO. The importance of integration between employees on the business side and in information technology (IT) is highlighted in the context of GM Brazil's strategic objective to increase its market share for lower-price cars.

In today's rapidly evolving world, companies need to constantly adjust their business models to changes in their environment. A good approach to evolving business models strikes a balance between capitalizing on new opportunities, and preserving investments in existing business processes. In this chapter, we argue that the User Requirements Notation (URN) provides such an approach. URN supports the modeling and analysis of user requirements in the form of goals and scenarios. Goals can be used to model high-level business (as well as system-level) objectives, and scenarios to describe the business processes to meet those goals. The approach is lightweight, and allows the quick evaluation of business model alternatives. Business models are represented in terms of actors and their dependencies, which correspond to value flows between the actors. Those value flows can subsequently be refined into business process activities. The approach gives business managers a tool for the systematic and incremental evolution of business model alternatives for their organizations. It allows them to model the strategic options available to them, and the conditions for their successful application.

The sale of high-tech New Zealand companies to offshore buyers has attracted much criticism as it is assumed that the sale is bad for New Zealand. This paper explores the drivers that contribute to the sale by the founder entrepreneurs of ten companies since 1996. The literature on entrepreneur/founder sale tends to focus on the lack of skills of the entrepreneur to take the company to the next stage of growth as the key factor in their departure. The case studies show that the driving forces are much more diverse. The analysis suggests that the sale to offshore buyers may be a necessary growth transition that enables companies to resource the next phase of growth. Labeling this the "growing global" transition, it is argued that such sales are external validation of New Zealand's technology and companies and that the entrepreneurs and companies need to be supported through such transitions.

In recent cases of industrial dynamics and technological change, the acquisition of technologies is often not based on strategic choice, but can rather be regarded as a required operation in order to tackle risks in emerging phases of consolidation. In particular, the phenomenon of technological convergence is examined as a special case for acquisition of technologies. Introduced by a discussion of drivers for such a convergence, its implications on technology and innovation management practices are investigated. Special focus is laid onto the resulting impact in terms of business model convergence, where creative destruction might lead to severe disruptions in the competitive environment. Based on these reflections, two scenarios for acquisition approaches are introduced. In the first scenario, the convergence causes the current internal competencies to be merged with external ones, resulting in an emerging dominant design, from of which the firm holds a critical resource stake. In the second scenario, the firm's internal competencies remain outside the emerging dominant design. Especially in the latter scenario, the relevance of dynamic capabilities in managerial actions is underlined. The argumentation is illustrated by using the case of telecommunication industry actors in tackling convergence challenges, and in implementing practices for acquisition of technologies and related competencies.

This study focuses on the process for aligning project management with business strategy. We conducted a case study research with a total of 9 projects in 7 organizations across industries, leading to a theoretical framework for such the alignment process. We found that there are processes at the strategic level to interpret the business strategy into the context of project management. These processes include strategic planning and project portfolio management. A project is then selected into the project portfolio to fulfill business needs, and it is executed through a project life cycle process. As the project progresses, a stage gate is a major mechanism to ensure the quality of the alignment throughout its life cycle.

Investing in new product development is a strategic option for companies that want to adapt to constant changes in customer preferences, anticipate new product releases of rival companies and/or respond to them, make use of technological opportunities and increase market share. This investment can be undertaken directly, through R&D, licensing of technologies or copying; however, there are other means to develop products based on cooperation between companies in the production chain, through partnerships.

Since the mid 1990s, the global aircraft industry has been creating new solutions for product development. Risk-sharing partnerships with suppliers began to be established in an attempt to reduce investments and, consequentially, the dependence on loans. Companies focused their development and manufacturing activities on specific and strategically interesting areas. The partners began not only to invest in tooling, engineering and infrastructure, but also to participate more directly in the projects, in the investments and design activities, acquiring rights to future sales income of products. This contractual modality, called risk-sharing partnership, is the focus of this study.

Specifically, this article analyzes the risk-sharing partnerships made by Embraer during projects for the ERJ-170/190 aircraft group. It also aims to justify these partnerships, considering the current global aircraft market conditions, evaluating the critical success factors, requirements and macro-economic conditions which supported the adoption of this new policy. Embraer is frequently studied and quoted as a successful example of a Brazilian business enterprise. This analysis may be a starting point to evaluate whether the business partnership model is useful to improve performance of Brazilian firms belonging to other industrial segments.

In this article two key propositions are made: (1) There is a definite limit to the level of efficiency that can be achieved in any part of a business; and (2) The number of processes in a business available for companies to excel in is either finite or it increases very slowly.

Knowledge management seems to have become a ubiquitous phenomenon both in the academic as well as in the corporate world. However, according to the authors, there has not been any comprehensive and holistic empirical study of the current status and practices of knowledge management in corporations. Therefore, based on our recent global study on knowledge management and organizational learning in multinational companies (MNCs), this paper wants to make up for this shortcoming in knowledge management research. In nine renowned MNCs, three interviews with respondents from the top and upper management level were conducted in the headquarters and in two different subsidiaries respectively. Thus, both quantitative and qualitative data from 81 interviews in total were earned. This paper focuses on the use of knowledge management tools and shows that not all tools have the same impact, and some of them even influenced knowledge management processes negatively.

This work is the result of a field research on software development projects organizations in order to see if there is a relationship between project performance and project management maturity of the organization. The concept of maturity in project management, which arises with proposals for maturity models in project management (Goldsmith, 1997; Ibbs and Kwak, 2000; Fincher and Levin, 1997; Schlichter, 2001), is very closely linked to two other models: the Capability Maturity Model (CMM), developed by Carnegie Mellon University, which deals with software development processes, and PMBoK (Project Management Body of Knowledge). In this work maturity is understood as being the degree to which the project management processes are formalized. Project performance was assessed using the project performance dimensions suggested by Shenhar: project efficiency (the observance of costs and timescales) and customer satisfaction (which refers to the technical quality and use of the product that is developed). The organizations that composed the sample was divided in two groups. One of the groups was composed of the less mature organizations and the other group was composed of mature organizations. After comparing the performance of the projects executed in these two groups it was found a significant difference regarding the performance dimension "client satisfaction".

Embraer is a Brazilian aircraft manufacturer and a global leader in the market for regional commuter aircraft. Among the factors that explain its success is the organizational structure used to coordinate large volumes of material and human resources located in several countries and various different firms for the conception, design and construction of new aircraft to meet market needs competitively in terms of lead times, pricing and performance. The article analyzes this structure, which consists of a hierarchy of cells operating through an international matrix with multiple axes. The use of cells represents an important addition to the virtues of the matrix structure. The matrix promotes an adequate division of labor between routine and project requirements, while cells assure the integration of the sophisticated competencies necessary to achieve high performance in large-scale projects, in terms of quality and time at all levels of the product tree for a complex product requiring the participation of many individuals with different specialties and belonging to different organizations.

R&D outsourcing is becoming one of the most important strategies for manufacturing companies. We conducted a study of R&D outsourcing in the manufacturing industry to clarify and conceptualize the current circumstances. The research was conducted through a case study, namely, the PS2 of Sony, mainly for fact-finding purposes to clarify what we could learn from this cutting-edge case. Our findings can be summarized as follows:

(1) R&D outsourcing has been increasing quantitatively. Furthermore, the quality of R&D outsourcing will progress because it is based on building strategy. Timing is a condition for achieving the strategy.

(2) The organizational structure and management are conditions for achieving the strategy.

(3) R&D outsourcing is part of the strategy of acquiring technology.

(4) R&D strategy is locating above R&D outsourcing and business strategy is locating above R&D strategy respectively. R&D outsourcing is subject to such a strategic structure.

This paper contributes to the understanding of generalized strategic science and technology (S&T) planning and development through the application of a new process model to the research and technology initiatives of the U.S. Army Tank-Automotive Research, Development and Engineering Center (TARDEC). A reflective case study is used to document how the organization refocused and formalized its previous method of S&T planning and development to more relevantly and responsively support: (a) the present war on terrorism, (b) the need for near-term solutions to deployed military system operational capability gaps, and (c) maintenance of a future perspective and technology development competency. For model creation, a middle management steering group and action teams were formed (under change management sponsorship of a champion) to formulate and implement an improved process model considered essential to near- and longer-term organizational success and the ever-present goal of providing "Superior Technology for a Superior Army." A technology manager can use elements of this paper and its described approach and methodology, derived strategic S&T planning and development model, and identified implications (challenges, lessons learned, and success measures and evaluation criteria) to more effectively and efficiently review, assess, and revise as needed the S&T initiatives of other organizations.

Co-evolutionary dynamism between innovation and the institutional systems is decisive for an innovation driven economy. This economy may stagnate if institutional systems can not adapt to innovations and Japan's current economy is one example. Japan's system of MOT indigenously incorporates an explicit function which induces this co-evolutionary dynamism and enabled Japan achieving a conspicuous economic development.

It goes without saying that the majority of the results of R&D have not necessarily commercialized. It's also pointed that R&D activities need to be diversified to produce high-added value products and services. However, firms face a dilemma about the simultaneous solution in efficiency and diversification of R&D because of the trade-off between them. In order to find the optimal solution to these questions, firms must choose their R&D subjects carefully. This will involve adoption of new and emerging R&D subjects and suspension of existing or irrelevant ones, derived from continually changing market needs and technology trends. This paper discusses the R&D activities of Japanese firms, based on the hypothesis that firms need to be adaptable when selecting R&D subjects to produce products and services effectively and continuously. R&D adaptability is defined as the capability to adapt businesses to the environment by responding to technological opportunities flexibly and by selecting R&D subjects correctly with self-assessment. Comparative empirical analyses are conducted focusing on the co-evolution between such adaptability and the institutions in selected countries. In addition, analyses are also conducted to identify the institutional factors governing the competitiveness of these countries.

As part of our continuous studies on the strategic approach to project management, this study focuses on combining the two worlds— project and business— by deriving specific and appropriate project strategies in line with business strategies or objectives. In this preliminary study, we centered our attention on the strategies of projects in pharmaceutical industry. The results of this research illustrated that project strategies existed in an implicit way and were used in managing projects for better business results. Two types of project strategies were found. One is the "Product advantage/Schedule driven strategy," which leads a project team to focus on the product quality/competitive advantage and project schedule. The other type is the "Efficiency driven strategy," focusing on the project schedule to increase the efficiency and productivity of the company. These research results are very encouraging since they are a basis for our future study on project strategy typologies. In addition they can be used in building the foundation for adding project strategic planning to traditional project planning practice, which are still focused on operations and mostly on "getting the job done."

As the economy in many emerging countries is on the rise, innovative enterprises are confronted with technology know-how theft and product imitations from those countries. Especially SMEs are facing problems in enforcing their legal and also legitimate claims on their intellectual property and know-how. In addition, technology firms are under pressure due to fierce competition with competitors in technological eye height. As intellectual property rights seem to become a blunt sword, a bigger picture on know-how-based competitive advantages in technology-driven firms is needed. To answer this challenge, a holistic approach to technology know-how protection is recommended.

This paper reviews and compares major technology forecasting methods for multi-national enterprises (MNEs) and then presents a case for using a decision-focused scenario approach to manage the inherently irreducible uncertainties for forecasting the complex technology innovation and adoption process in a volatile MNE business environment.

In this paper, we adopt the project management methodology to provide a checklist for managing the risks that could affect the standard development process as well as the quality of the final standard. We show how the adoption of these management techniques can help improve the quality of standards.

Innovation represents a major strategic element, critical to the development of the company. Management has to routinely evaluate company's capability with respect to innovation. Even if innovation systems adopted by enterprises are specific, a methodology for measuring the innovative process is warranted. In this paper we propose an evaluation methodology regardless of the industry specifics. It is based on an innovative pilot model, which contains 13 practices, developed in our laboratory. In this paper, a comparison is presented between an in-house methodology called IPI (Innovation Potentiality Index) and two multiple criteria methods (Electre and AHP) to measure the innovation process capacity of companies. IPI defined their strong and weak points regarding to several indicators. The result of our research leads to an evaluation tool allowing both a local and global comparison between companies issued from the same industrial field or not.

Chief Technology Officers need guidance when they allocate resources to different technology programs. The starting point for making the right choice is to audit all the technology projects. A distinction has to be made between controllable criteria and non-controllable criteria. Controllable criteria refer to the accumulated competencies and assets that depend on a firm's behaviour and decisions. Uncontrollable criteria refer to the intrinsic potential, the appeal or attractiveness, of one given technology that does not depend on the firm's action. A list of 32 criteria for auditing "technological competitiveness" and "technological attractiveness" is discussed and accompanied with appropriate measurement.

History shows us that in the cost/performance ratio of any given product has decreased continuously. This may wrongly have led us to the conclusion that improvements can continue infinitely at the current pace. Our proposition is that we trust a mental picture that is not consistent with the future level of potential improvements in technology and business, which in turn has repercussions for societal change.

Mass production systems have been the dominant paradigm in manufacturing industries for the past century. Such systems rely on energy-intensive transformation processes. They require transformed materials which are product specific. They reach high levels of efficiency through centralization and large scale facilities. Considering raises concerns. Such systems have so far proven to be cost-effective but counter-productive from an environmental perspective. The concept of organic production systems has been envisaged by some researchers as a promising alternative. Organic production systems are defined as small-scale and decentralized production facilities, located close to the market they serve. Such systems rely on small and flexible manufacturing equipment and make use of modular materials that can be used, or reused, to make a wide range of products. The present paper explores the applicability of organic production systems to the particular industrial settings of SMEs.

The present article identifies the factors responsible for systemic competitiveness of a plywood industry located in Palmas, State of Paraná – Brazil. Our research is based on the German Development Institute model (GDI), which analyses the systemic competitiveness through the connections and interdependences between the meta, macro, meso and micro economic aspects. The research results identified and classified the key-factors responsible for the systemic competitiveness, those factor associations and the factors that jeopardize such industry growth and increased penetration in the foreign and domestic markets.

In this article, the results of an international survey on Sustainable Development (SD) as an aspect of business management are presented. 95 companies, listed in internationally known indices, are evaluated based on homepages and sustainability reports concerning their integration of ecological and social aspects as well as a super-ordinate "generic" dimension. The analysis has been made to find out specific regional trends and variations between industries on the implementation of SD aspects. Distinct regional differences could be distinguished concerning emphasis being put on the SD dimensions. Apart from regional differences also (enormous) industry-typical variations became obvious concerning SD as aspect of the management.

Requirements of different stakeholders force companies to pay attention to environmental aspects of their business and to improve corporate environmental performance. In addition, every organization has to develop its own competitive edge. Due to its influence on economic success, mainly through the impact on invested capital and product quality, the efficient and effective use of plants and production equipment is an important aspect of corporate success. The contribution of maintenance management for increasing corporate environmental performance is discussed in this article. Based on the concept of Total Productive Maintenance (TPM) a framework for environmental consideration is proposed. As example of maintenance prevention an integrated assessment tool, which combines simultaneous economic, maintenance and environmental aspects, is presented.

Bringing sustainability issues into the boardroom of companies is a central and important issue for a successful development of sustainable societies. The concept of Sustainable Business Management allows the integration of sustainability aspects into corporate activities; but it has to be embedded in a management system. Basically there is no special management system required, but it is advantageous to take an integrated and holistic management approach like Generic Management as basis.

This paper studies changes in the Company-School relationship given the business and social paradigm changes from the Industrial Age to the Knowledge Age. It considers and evaluates a new model for the Company-School relationship. The proposed model is based in the concept of Business and Vocational School as processes. The proposed model considers tree drive factors for an effective relationship between Business and Vocational School. These drive factor influence the process of knowledge absorption, courses planning, courses evaluation, structures organization and joint technology development. A case study is planned to validate this model.

This paper aims to study the role played by short messages services (SMS) in the reinforcement of social and emotional links in teenagers and young adults communities. The paper is based on a qualitative research carried out during the year of 2004 in Rio de Janeiro with twenty teenagers and young adults, between 16 and 25 years old, users of SMS, who were submitted to in-depth interviews. Results suggest that short messages play a major role in the teenagers and young adults identity building process. Faced with an uncertain future and a high level of urban violence, these consumers use short messages to keep permanent contact with other young people, usually a small number of correspondents with whom they exchange a large number of messages daily, most of them composed with very few words (like: "are you there?"). This permanent contact with others seems to be used as a tool to increase self-confidence and emotional comfort.

Developing technology is the answer of the human being to the changing environment. Nowadays nobody doubts that innovation is the driving force for an enterprise, and a country. An important competence for innovation is creativity. Creativity is a core characteristic of a human being. The individual bears knowledge, abilities, and competences. Which role does an individual play in Management of Technology? What can we learn from artists? At the beginning of an innovation there is the idea, a WHAT. Bringing the idea to life is a question of HOW. At the end we get once more a WHAT but shaped by the HOW. The human being needs his individual creativity, enthusiasm, knowledge, methods and craft, social competence and the will to find the way to the goal through the whole process. This contribution will give one possible approach to the role of an individual in Management of Technology.

The following sections are included:

• Author Index