MANAGEMENT
of
TECHNOLOGY
The Key to Competitiveness and Wealth
Creation
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Tarek Khalil | Ravi Shankar
The Process of
Technological
Innovation
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
JUGAAD: A NEW TERM FOR
CONSTRAINT-BASED
INNOVATION
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
What is common in these terms: Jugaad, constraint-basedinnovation, frugal-innovation, inclusive-innovation,
reverse-innovation, and Gandhian-innovation? All these
have same connotation in the area of Innovation
Management
They mean innovation that relies mainly on ingenuity in
product, process and people to solve a business problem
or product redesign by creative improvisation rather than
too much of sophisticated scientific and technological
breakthroughs
Jugaad, in local Indian languageHindi, means innovation
by which technological products/processes or systems are
customised at low prices and high volumes
JUGAAD: A NEW TERM FOR
CONSTRAINT-BASED INNOVATION
(Contd.)
The aim of Jugaad is to serve million of customers at the 'bottom of
the pyramid' by making their lives better
India is credited for numerous local innovations of Jugaad-type.
On Indian roads, one can always see scooter or motorcycle engines
used to drive a big cart. Similarly, one can find scooter engines being
used to pump-out water for irrigation purposes in an Indian village,
where electric supply is quite erratic
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Bajaj, a major auto manufacturer in India, probably for the first time
in world, came out with a commercially successful design of threewheeler for Indian roads and traffic conditions
JUGAAD: A NEW TERM FOR
CONSTRAINT-BASED INNOVATION
(Contd.)
Why is Jugaad-type of innovation very common in
India?
However, for Jugaad to kick-off, it requires creativity
with some kind of technological diversity in local talents
A few questions for discussion are as follows:
Can Jugaad be a part of formal strategy for innovation?
Is Jugaad a fit case for patent and protection?
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
According to Gopalkrishnan (2010), it is due to a lethal
combination of five Cs available in our society, namely
chaos, challenge, creativity, communication and
canalization
STAGES OF TECHNOLOGICAL
INNOVATION
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Eight Stages of Technological Innovation
PROCESS OF TECHNOLOGICAL
INNOVATION
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Process of Technological Innovation
INNOVATION CHAIN
EQUATION
Using a chemical analogy, Martin (1994) illustrates the
technological innovation process as a chain equation
The innovation chain equation reveals the important role
of entrepreneurship in connecting ideas to the
marketplace
The Innovation Chain Equation
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
A commercially successful innovation is the product of a
sustained chain reaction
DEFINITIONS FOR COMPONENTS OF
THE PROCESS OF TECHNOLOGICAL
INNOVATION
Science: How things are
Management: How to get things done
Technology management: Doing things
Entrepreneurship: Doing things to make money
Innovation: Doing entrepreneurship
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Technology: How to do things
ENTREPRENEURSHIP
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Technological progress is frequently sparked by entrepreneurs and
entrepreneurial spirit
Successful entrepreneurs with business savvy have a staying power
unlike those who are only creative and thrive on chaos
Once an entrepreneur, always an entrepreneur
Entrepreneurs play a key role in creating and advancing technology
and in sparking economic growth and job creation
Entrepreneurship, however, is not limited to individuals or small
companies
Entrepreneurship within the confines of an organization is
frequently referred to as intrapreneurship (internal
entrepreneurship )
External entrepreneurship is the individual entrepreneurial process
of combining resources discovered in the environment with the
entrepreneurs very unique resources to create a new combination
that is basically independent of all other resource combinations
ENTREPRENEURIAL VERSUS
STEWARDSHIP MANAGEMENT
Source: Paradi (1994)
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Personal Characteristics of Managers
THE MANAGEMENT
RENEWAL CYCLE
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Management Renewal Cycle
VENTURES IN LARGE
ORGANIZATIONS
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
One approach used by large organizations in order to
implement a new venture or move a project forward is to
create an effective management team known as the
venture team
A venture team requires strong leadership, excellent
technical skills, and wide representation of functions,
including manufacturing, marketing, finance, and
production
The team leader becomes the product/process champion
and assumes leadership over technical matters
Physically locating the team away from the companys
main operations is a common practice
TECHNOLOGICAL INNOVATION
THE MACRO LEVEL
The British Midlands
Entrepreneurs mostly drive innovations with support from skilled
technologists
Non-conformist Quakers in the eighteenth century made significant
contributions; for example, Darby founded the steel industry, and
Ransome invented the self-sharpening ploughshare and introduced
the idea of interchangeable parts in its manufacture in the early 1800s
The Lunar Society members exchanged ideas, supported each others
activities, and shared information across disciplines and industry
boundaries
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Industrial Revolution was forged by people who moved to the
British Midlands primarily to escape religious persecution
TECHNOLOGICAL INNOVATION
THE MACRO LEVEL (Contd.)
Silicon Valley in U.S.
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chronology of the
Important Inventions,
Events, and People in
The Microelectronics
High Technology
Industry
TECHNOLOGICAL INNOVATION
THE MACRO LEVEL (Contd.)
The Home Brew Computer Club
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
An informal group that met regularly at Stanford and exchanged
ideas in an open forum
The interaction of this group paralleled the interaction of the
Lunar Society in the eighteenth century
This antiestablishment mindset was another fuelling factor for
entrepreneurial fever and is reminiscent of the era of the
rebellious Quakers of the British Midlands
Steve Jobs and Steve Wozniak of Apple Computer benefited
from the meetings of the Home Brew Computer Club
By 1983, there were 85 semiconductor firms and more than 3,000
firms in microelectronics in Silicon Valley (Larsen and Rogers,
1984)
FACTORS INFLUENCING
TECHNOLOGICAL INNOVATION
The presence of scientific knowledge
The type of technology and the phase of its life cycle
The level of investment in technology
The level of political commitment
The ability to borrow advances from related technologies
The diffusion rate and patterns
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The level of maturity of the underlying science
OTHER FACTORS INFLUENCING
TECHNOLOGICAL INNOVATION
The changing world environment
Improvements in communication
Multiple-site continuous R&D
Time to market
The push for education
Changes in institutional interactions
Country and country
Industry and industry
Government and industry
Industry and/or university and scientific agency
Changes in organizational structures
Infusion of resources into technological development and
penetration
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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