TECHNOLOGY AND

INNOVATION Lesson #2
By Shashank Verma

MANAGEMENT
AGENDA
1. Corporate Technology Strategy
2. Analysis for Technology Strategy
3. Realisation of New Technology
4. Adoption on New (Manufacturing) Technologies
Corporate Technology Strategy
CORPORATE TECHNOLOGY
STRATEGY
The following decisions:
- What: What technologies are strategically important?
- Position: How to position the firm relative to technology
development?
- Cost - How much to spend on R&D?
CORPORATE TECHNOLOGY
STRATEGY
Formulating technology strategy
- What are the organisation’s core technologies?
- How should the firm position itself relative to technology development
- Should the firm seek to establish a technology standard?
- Why do technological discontinuities arise?
Organizing for technology strategy
- What are the risks and rewards of strategic alliances as a means to
developing new technology?
- How much should the firm invest in research and development relative to
competition?
- How can human capital be managed to produce superior technology?
 TECHNOLOGY STRATGY
TYPES

Market Pioneers Quick Followers Late Entrants

Be the first one to develop Be the first ones to Enter late once the
the technology copy the leader and market has been
provide cheaper and validated and
Work on cutting edge better alternatives standards have been
research established
Eg: Samsung
Eg: Apple, Tesla, SpaceX Eg: Microsoft (touch
phone)
TECHNOLOGY STRATEGY –
WHY PIONEER?
Advantages
- Market Leadership: Pioneers can establish themselves as market leaders, setting standards and shaping
customer expectations.
- Monopoly Power: Pioneers may enjoy a temporary monopoly, allowing them to set higher prices and achieve
higher profit margins.
Market Pioneers
- Early Customer Loyalty: By being the first, pioneers can build a loyal customer base before competitors enter
the market.
- Technological Leadership: Pioneers are often seen as innovators and thought leaders, enhancing their
reputation.-

Disadvantages
- Market Uncertainty: There is a risk that the market may not respond positively to the new product or
technology.
- R&D Expenses: Significant investment in research and development is required to create new products or
technologies.
- Rapid Obsolescence: Rapid advancements in technology can quickly render a pioneer’s innovation obsolete.- T
- Second-Mover Advantage: Followers can often capitalize on the pioneer's market education efforts and
introduce better or cheaper alternatives.
TECHNOLOGY STRATEGY –
WHY QUICK FOLLOWER?
Advantages
- Reduced Risk: Proven market for the new product, avoid investments on failed
innovations
- Cost efficiency: Lower R&D costs (reverse engineer successful innovation), learn from
the mistakes of first movers Quick Followers

- Improved products: Can improve the product by adding new features

- Market Timing – Can enter the market, as it scales and as the technology has
matured

Risk
- Dependence on Leaders: Relying on leaders to set market trends can limit a
company's ability to establish its own identity and vision
- Crowded Market: By the time a quick follower enters, the market may already be
crowded, making it harder to gain significant market share.
- Customer Loyalty: First movers often establish strong customer loyalty, making it
TECHNOLOGY STRATEGY –
WHY QUICK FOLLOWER?
Advantages
- Market Validation: By entering late, companies can be assured of the market demand and avoid the
uncertainty faced by early entrants.
- Learning from Pioneers: Late entrants can learn from the successes and failures of early movers,
allowing them to create more refined and - competitive products. Late Entrants
- Lower Market Entry Costs: Market entry costs might be lower as infrastructure and distribution channels
are already in place.
- Better Market Analysis: Late entrants have the advantage of comprehensive market analysis, allowing
for better strategic planning and positioning.
Disadvantages
- High Competition: Entering a saturated market means facing intense competition from established
players.
- Lower Visibility: Established brands already have strong visibility and recognition, making it harder for
late entrants to stand out.
- Regulatory Hurdles: Early movers might have influenced regulatory standards, creating barriers for new
entrants.
- Lower Profit Margins: Late entrants might need to compete on price to attract customers, leading to
lower profit margins.
Analysis of Technology Strategy
ANALYSIS OF
TECHNOLOGY STRATEGY
How do you analyse a new technology:

SWOT PEST PORTER’S FIVE FORCES

ANALYSIS OF
TECHNOLOGY STRATEGY -
SWOT
STRENGTHS WEAKNESSES
Helps evaluates internal
capabilities and external
factors

This tool is helpful to

understand the viability of
a technology
OPPORTUNITIES THREATS
 ANALYSIS OF
TECHNOLOGY STRATEGY -
PEST POLITICAL

Helps understand the macro-

environmental factors
affecting a technology

ECONOMIC SOCIAL

This tool is helpful to

understand the
LEGAL
attractiveness of a
ANALYSIS OF
TECHNOLOGY STRATEGY –
PORTER’S 5 FORCES
Analyses the
competitive forces
within an industry

This tool is helpful to

understand the
dynamics of an
EXAMPLE
Do a SWOT ANALYSIS for Generative AI Technology
TECHNOLOGY PORTFOLIO
Which technologies to invest in and which ones to not invest in

High Any idea what the Tata Group’s

strategy has been?
DECIDE BET
Either the company is No.1 or No. 2
Technology’s
or they are out
importance

FOLD CASH IN

Low

Low High
Organization’s
Position in the Technology
 TECHNOLOGY PORTFOLIO
Business Technology

High High
A A

Attractiveness Importance

B B

Low Low

Low Low High

High Position
Position

What should company do about the technology supporting its Product A?

Invest in technology A to become strong in it, as it is strategic
Analysis of Technology Realisation
TECHNOLOGY REALISATION
WHAT IS TECHNOLOGY
REALISATION?
TECHNOLOGY REALISATION

MARKET READY PRODUCT

IDEA
TECHNOLOGY REALISATION
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Prototype Pilot Scaling
Feasiblity Commercia
Ideation Developme Testing and and
Analysis lisation
nt Iteraion Diffusion

Generating Technical, Creating Running Launching Strategies

ideas and financial, and testing pilot the for scaling
selecting and prototypes programs technology up and
viable market . and in the achieving
concepts. feasibility. iterating market. widesprea
based on d adoption
feedback.
Adoption of New Technologies (including Manufacturing)
 ADOPTION OF NEW
TECHNOLOGIES
1. Factors influencing technology adoption

Technology Organisational Environmental

 ADOPTION OF NEW
TECHNOLOGIES
1. Factors influencing technology adoption

Technology Organisational Environmental

Innovation: Degree of newness and breakthrough potential

of the technology.
Compatibility: How well the new technology integrates with
existing systems.
Complexity: Ease of use and implementation of the
technology.
 ADOPTION OF NEW
TECHNOLOGIES
1. Factors influencing technology adoption

Technology Organisational Environmental

Leadership Support: Commitment and vision of the

leadership team.
Company Culture: Openness to change and innovation
within the organization.
Resource Availability: Financial, technical, and human
resources needed for implementation.
 ADOPTION OF NEW
TECHNOLOGIES
1. Factors influencing technology adoption

Technology Organisational Environmental

Market Demand: Need for the technology in the market.

Competition: Pressure to adopt new technologies to stay
ahead.
Regulatory Environment: Compliance with industry
standards and regulations.
 ADOPTION OF NEW
TECHNOLOGIES
2. Process of Technology Adoption

Awareness Recognizing the need and potential of a new technology

 ADOPTION OF NEW
TECHNOLOGIES
2. Process of Technology Adoption

Interest Gathering information and

understanding the technology’s
benefits
Awareness
 ADOPTION OF NEW
TECHNOLOGIES
2. Process of Technology Adoption

Assessing the technology’s fit for

Evaluation
the organization and its potential
ROI
Interest

Awareness
 ADOPTION OF NEW
TECHNOLOGIES
2. Process of Technology Adoption

Testing the technology

Trial
in a controlled
environment
Evaluation

Interest

Awareness
 ADOPTION OF NEW
TECHNOLOGIES
2. Process of Technology Adoption
Fully integrating
Adoption
the technology
into the
manufacturing
Trial
process

Evaluation

Interest

Awareness
ADOPTION OF NEW
TECHNOLOGIES
Challenges in Technology Adoption:

High Costs Resistance to Change Integration Issues

Initial Employees may Difficulty in

investment be hesitant to integrating new
and ongoing adopt new technologies with
maintenance technologies due existing systems
costs can be to fear of the and processes.
significant. unknown or job