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5 Technology Management Figure 2: Technology management vs. innovation management (Source: Brockhoff, 1999) 5.3.3 Technology Categories Categorizing a company’s technologies is of outstanding relevance for corporate strategic management. By such a classification, not only can valuable inferences on their particular relevance be made but also insights into their future development can be provided (compare chapter 5.4). In principle, the categorization of technologies can be carried out based upon different criteria. In line with this training module, categories related to diffusion rate and value creation were discussed (see fig. 3). FUTURE TECHNOLOGY: As the name implies, these are the promising technologies of the future and therefore the subject of corporate technological foresight (compare chapter 5.6). Thus, future technologies are usually only relevant to research-intensive companies as extensive preliminary work in basic research is required. This kind of technology consequently bears extreme uncertainty of its potential to competitive advantage. Figure 3: Technology categories related to diffusion rate and value creation (Source: Strebel, 2003) PACKING TECHNOLOGY: These are emerging technologies which already bear considerable potential to further development but still have a vaguely defined field of application as well as no dominant design. Packing technologies are adopted only by a few cutting-edge companies due to given uncertainty of their technical feasibility and capability as well as potential to competitive advantage. KEY TECHNOLOGY: This kind of technology is still rather new, but is already increasingly used in the respective industry due to considerable potential to further development and competitive differentiation. Nevertheless, key technologies are usually not yet widespread, which implies they are limited only to leading companies. Still mastered differently in industry, they allow differentiation between competitors. BASIC TECHNOLOGY: These are technically mature technologies which are mastered by all competitors in the respective industry. Basic technologies are rather important for corporate continuity, but no longer bear substantial competitive advantage as they represent the norm (or minimum requirement) in industry. 5.4 Technological Dynamics Given that the technological environment of a company is subject to persistent changes, it is one of the basic challenges of corporate technology management to describe, explain and forecast technological developments. Technological potential can be built or relieved on time only with sufficient knowledge about the course of technological developments. 55
KNOWLEDGE FOR BUSINESS IN BORDER REGIONS 5.4.1 Technology Life Cycle Models Based upon the biological evolutionary model the technology life cycle model enables a systematic identification and observation of certain technological developments, thus allowing strategic planning of internal R&D. The concept of life cycle with its conventional phases of birth, adolescence, adulthood and old age and its premise of a limited length of life can be applied to different entities such as enterprises, industries and products but as well to technologies. Thus, the different maturity stages of a specific technology are the subject of analysis within the technology life cycle models. A technology life cycle can be visualized graphically by revealing the development of a certain technology over time, measured by means of specific performance variables (e.g. speed of microprocessors). In practice, most technological developments do not occur in a linear way, but are rather characterized by leaps and phases of stronger or shorter growth and stagnation. As a general rule, this usually results in an S-shaped course (see fig. 4). Examples originate from authors like A. D. Little as well as Ford and Ryan, which both directly integrate the time-factor by means of the abscissa. The technology life cycle model according to A. D. Little is explained in detail as follows. 5.4.2 Technology Life Cycle Model according to A. D. Little This model particularly points to the correlation between the current position of a certain technology on its life cycle curve (maturity level) and its remaining competitive potential. On the basis of the technologies’ four phases of life (which are: Embryonic, Growth, Mature, Aging) an additional classification into three technology categories can be derived. The model of A. D. Little specifically provides us with several indicators which allow an easy determination of a technology’s present maturity stage (see fig. 4). With this typification, each technology can be quickly classified in terms of its remaining competitive potential. Figure 4: Phases of a technology life cycle in the concept acc. to A. D. Little (According to: Little, 1981; Tiefel, 2007) 5.4.3 The S-curve concept according to McKinsey The S-curve concept according to McKinsey basically highlights the augmentation of a technology’s capability subject to cumulative R&D expenses and time. As can be seen in figure 5, the time-factor gets integrated into the model only indirectly via the cumulated R&D expenses. Let it be again noted, that a technology’s capability doesn’t usually increase in a linear way to the R&D expenses, but is rather S-shaped. Whereas in the early phase of a technology life cycle an increase in cumulative R&D expenses will only result in little performance improvements notably greater improvements can be expected in the subsequent boom-phase with the same R&D-effort. As figure 5 points out, technology converges a viability or performance limit over time, which means that R&D-efficiency decreases when approaching this limit. Thus, additional expenses lead to an ever shorter increase in capability. At the latest at this point a strategic decision is needed to determine whether the given R&D budget should still be invested in 56
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Spoštovani! Pred vami je priročni
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KAZALO VSEBINE Module 1: Technology
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