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Obtaining Technology - Implementation

This chapter focuses on implementing an external technology acquisition. It discusses initial questions management must address, such as how to meet short-term customer commitments during integration and where the primary focus should be. It also covers requirements for key activities like knowledge transfer and integration speed. Finally, it discusses four critical elements of implementation: developing a strategy for critical activities, addressing people issues, ensuring fit within the organization, and executing the integration plan.

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Eric Eugenio
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921 views13 pages

Obtaining Technology - Implementation

This chapter focuses on implementing an external technology acquisition. It discusses initial questions management must address, such as how to meet short-term customer commitments during integration and where the primary focus should be. It also covers requirements for key activities like knowledge transfer and integration speed. Finally, it discusses four critical elements of implementation: developing a strategy for critical activities, addressing people issues, ensuring fit within the organization, and executing the integration plan.

Uploaded by

Eric Eugenio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 7

Obtaining Technology:
Implementation

Eric Eugenio
MEM611 G18-0279
OVERVIEW
Part 3 – Obtaining Technology: External strategy
Acer Group : A Family of Brands
Chapter 6 – Obtaining Technology: Planning
Chapter 7 - Obtaining Technology: Implementation1
Chapter 8 - Obtaining Technology: Evaluation and Control
2
Appendix 3 – Managing Platforms and Portfolios of Technology

After the planning stage of technology acquisition, the next stage will be
more crucial as most mergers fail as a result of inability to implement the
acquisition.

This presentation will focus on the key questions that management needs
to carefully address at the initial phase and how to deal with the 4 critical
elements of implementation.

1 White, Burton, The Management of Technology and Innovation 2e,. 2011 p.231-260
What Should We Be Doing Now?

Initial 1st Identify the proper timing of short-term and long term
actions

Questions 2nd
What Are The Requirements for Key Activities?
Identify the amount of knowledge transfer, degree,
and speed of integration for key activities

3rd
What and Whom to Delegate?
Identify best persons to do specific tasks/activities. 3

?
1st What Should We Be Doing Now?

1. How will the external effort to obtain innovation


capability or technology affect customers?

How does the organization keep short-term


commitments to customers while the internal
chaos of blending takes place?
Video 4
2. How do organizational priorities change
following the externally focused
activity?

3. Where should the primary focus of the


organization be during the external effort to
obtain innovation or technology?
2nd What Are The Requirements for Key Activities?

1. Amount of knowledge transfer required

2. Degree of integration needed

3. Necessary speed of Integration Video 5


3rd What and Whom to Delegate?

1. Trap of Compromise : The goal is to get the 3. Trap of System Superiority : The choice should
best from each organization not compromise be who is best, not the seniority of the person.

2. Trap of Misplaced Beliefs : If the purpose is 4. Trap of Not Blending : Sometimes individuals in a
gaining technological advantage, stay focused merger/acquisition
on that unless other compelling information or alliance may believe that keeping things 6
causes a need to look in a different separate will work and help
direction. everyone feel comfortable.
4 KEY IMPLEMENTATION ELEMENTS

Develop strategy for Addressing


Blending or creating ‘fit’ critical activities and Fit between people
within an organization people-related
deliver in timely manner issues

Leadership Alignment
Integration Execution

7
FOUR
Key 8

Implementation
ELEMENTS
CASE STUDY
IBM / PwC Acquisition
- In 2002, IBM bought PwC Consulting for $3.5 -A large number of problems faced the potential merger:
billion in cash and stock. (1) IBM operates as a typical corporation ;
-IBM envisioned the acquisition as part of its PwC was a partnership
(2) PwC involved with consulting/solutions for clients;
IBM Global Systems unit, Business Integration
Services (BIS) division. IBM focused on infrastructure issues. 9
(3) PwC clients might be concerned that IBM products
- IBM hoped to gain specific skills including ERP would be stressed over other products, which may
(enterprise resource planning), CRM (customer actually serve their needs better.
relationship management), and SCM (supply
chain management) from PwC.

+
CASE STUDY
Strategy
- IBM established a 3-stage process (stage 1 and 2 in 2002. stage 3 in 2003)
Stage 1 : Closing the deal, establish basic operating model, unit name
and it’s president. IBM ‘s key asset is their people so they offered retention
10
incentives packages to key employees to stay

Stage 2: Created details on operating models and develop teams for the
integration of key areas .

Stage 2: Integration of IT systems of the 2 firms and the actual


integration of the business units.
CASE STUDY
Outcome
- The new head of the IBM Global Systems unit was an IBM person
- PwC leaders played significant roles on key positions
- 5,000 (mostly IBM persons) out of 80,000 employees of the new
integrated unit were laid off which helped ease the integration with PwC
11
workers.
- The IBM Global Systems units operated as freestanding business. In fact,
45% of servers in IBM (GS) data centers are non-IBM
- Overall positive results. IBM Global Systems, Inc. is now the largest IT
service provider in the world
ESSILOR

1962 – SL becomes ESSEL


1969 - SIL and LOR merged to create SILOR

2014:
1849–1972: 1972: October 1, 2018:
Acquisition of
Essel and Silor Beginning The Birth of 12
Transitions
Rivalry of Essilor EssilorLuxottica
Optical Inc.

1995 – Acquisition of GENTEX OPTICS


2000 – R&D Partnership with NIKON
2010 – Acquisition of Shamir Optical and Signet Armorlite
2011 – Acquired 50% of Wanxin Optical
2014 – 100% Acquisition of Transitions Optical

https://www.essilor.com/en/the-group/history/near-170-years-history/
THANKS!
Any questions?
13

You can find me at:


[email protected]
+639165928245

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