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The Management of Technology and Innovation: a Strategic Approach Case Name Case Authors Source Part Number Gold Peak Electronics: Kumar and Kumar Harvard Case 1, Laying the Foundation R&D Globalization from East to West Pharma Technologies Inc. Nicholls-Nixon, Harvard Case 1, Laying the Foundation White and Herbert GPS-to-GO Takes on Pillittee Richard Ivey School of 1, Laying the Foundation Garmin Business Case Amyris Biotechnologies Chess and Raffaelli Harvard Case 2, Internal Strategy Bell Canada: The VoIP White and Day Richard Ivey School of 2, Internal Strategy Challenge Business Case For the Love of Good Haggerty, Richard Ivey School of 2, Internal Strategy Food: The pLate Trace Jang and Liu Business Case Project Post-Merger Integration Freccia and Bourgeois Harvard Case 3, External Strategy at Northrop Gruman Information Technology Shilling & Smith Jeffery, Shield, Harvard Case 3, External Strategy Acquisition of Xteria Inc.: Ekici and Conley Data Center Technology Leasing Skype Eisenmann and Coles Harvard Case 3, External Strategy CQUAY Technologies Beamish and Boeh Harvard Case 4, Building Strategic MTI Corp. Success GE’s Growth Strategy: Bartlett Harvard Case 4, Building Strategic MTI The Immelt Initiative Success HCL Technologies: Ramdas, and Gajulapalli Darden Business 4, Building Strategic MTI Employee First, Publishing Case Success Customer Second MAKE IT YOURS Make It Yours, add business cases to your text. Your course is unique, create a text that refl ects it. Let us help you put together a quality Management of Technology and Innovation casebook simply, quickly, and affordably. We have aligned best-selling business cases from leading case providers such as Harvard and Ivey at the part level for this text. Create a comprehensive learning solution by adding cases into your text, or simply select cases to create a casebook. To review and select your case, please visit us online at: http://www.cengage.com/ custom/makeityours/whitebruton. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. White_IFC.indd 1 6/22/10 6:53:09 PM The Management of Technology and Innovation A Strategic Approach Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. SECOND EDITION The Management of Technology and Innovation A Strategic Approach Margaret A. White Oklahoma State University Garry D. Bruton Texas Christian University Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party may be suppressed. Edition review has deemed that any suppress ed content does not materially affect the over all learning experience. The publisher reserves the right to remove the contents from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate format, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. 52609_00_fm_pi-pxxvi.indd ii 2/1/10 11:37:43 PM The Management of Technology and © 2011, 2007 South-Western, Cengage Learning Innovation: A Strategic Approach, ALL RIGHTS RESERVED. No part of this work covered by the copyright Second Edition Margaret A. White, Garry D. Bruton herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not Vice President/Editorial Director: Jack Calhoun limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval Editor-in-Chief: Melissa Acuna systems, except as permitted under Section 107 or 108 of the 1976 United Senior Acquisitions Editor: Michele Rhoades States Copyright Act, without the prior written permission of the Developmental Editor: Erin Guendelsberger publisher. Senior Editorial Assistant: Ruth Belanger For product information and technology assistance, contact us at Marketing Manager: Nate Anderson Cengage Learning Customer & Sales Support, 1-800-354-9706 Senior Marketing Communications Manager: For permission to use material from this text or product, Jim Overly submit all requests online at www.cengage.com/permissions Content Project Manager: PreMediaGlobal Further permissions questions can be emailed to [email protected] Media Editor: Danny Bolan Senior Frontlist Buyer: Sandee Milewski Library of Congress Control Number: 2010930355 Production House/Compositor: PreMediaGlobal ISBN-13: 978-0-538-47822-9 Senior Art Director: Tippy McIntosh Senior Rights Acquisitions Account Manager, ISBN-10: 0-538-47822-5 Text: Mardell Glinski Schultz Cover and Internal Designer: Craig Ramsdell, South-Western Cengage Learning Ramsdell Design 5191 Natorp Boulevard Cover Image: Henk Badenhorst/iStock Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit school.cengage.com Printed in the United States of America 1234567813121110 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Dedicated to: Our students and teachers for sharing the learning voyage with us and Our families and friends for inspiring us to pursue the voyage Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. BRIEF CONTENTS PREFACE xv ABOUT THE AUTHORS xx ACKNOWLEDGMENTS xxi PART 1 Laying the Foundation 1 General Electric: Changing with the Times 2 1 Management of Technology and Innovation: An Overview 6 2 Strategy Process and the Management of Technology and Innovation 31 APPENDIX 1 Social Responsibility and Management of Technology and Innovation 69 PART 2 Innovation: Internal Strategy 83 GlaxoSmithKline: Successful Internal Innovation 84 3 Innovation: Planning 89 4 Internal Innovation: Implementation 121 5 Innovation: Evaluation and Control 151 APPENDIX 2 Innovation: Project Management and New Product Development 181 vi Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. BRIEF CONTENTS vii PART 3 Obtaining Technology: External Strategy 199 Acer Group: A Family of Brands 200 6 Obtaining Technology: Planning 204 7 Obtaining Technology: Implementation 231 8 Obtaining Technology: Evaluation and Control 261 APPENDIX 3 Managing Platforms and Portfolios of Technology 291 PART 4 Building Strategic MTI Success 305 Google: A Pattern of Success 306 9 Building Capabilities for MTI Success 310 10 Organizational Learning and Knowledge Management 338 APPENDIX 4 Waves of Innovation and Predicting the Future 363 GLOSSARY 376 INDEX 382 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. CONTENTS PREFACE xv ABOUT THE AUTHORS xx ACKNOWLEDGMENTS xxi PART 1 Laying the Foundation General Electric: Changing with the Times 2 GE: The Firm s History 2 Overview of Part One 5 1 Management of Technology and Innovation: An Overview 6 Overview 6 Introduction 7 Importance of Technology and Innovation to Business 7 Importance of Technology and Innovation to Society 9 Technology and Innovation Do Not Stand Still 10 The Study of Technology, Innovation, and Its Management 10 The Technology and Innovation Imperative Is Organization-wide 10 The Technological and Innovation Imperative Is Worldwide 12 Value Creation Is the Key 13 Key Definitions of Technology 14 Definition of Technology 14 Definition of Management of Technology 15 The Importance of Managing Technology 17 The Process of Managing Technology 17 Making Decisions for Managing Technology 18 Tools for Managing Technology 19 viii Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. CONTENTS ix Key Definitions of Innovation 19 Definition of Innovation 19 Definition of Management of Innovation 20 The Process of Managing Innovation 21 Making Decisions for Managing Innovation 21 Tools for Managing Innovation 23 Structuring the Examination of MTI 24 Strategy Perspective 24 Making Strategic Decisions 24 Strategic Tools for Managers 25 Organization of the Text 25 Summary 26 2 Strategy Process and the Management of Technology and Innovation 31 Overview 31 Introduction 32 What Is Strategy? 33 Centrality of MTI in Strategic Management 33 Integrating MTI and Strategy 34 Technology and Competitive Advantage 36 Continuous versus Radical Technology 36 Maturing Process of Technology 38 Offensive versus Defensive Technology 40 The Strategic Process in MTI 41 Planning 42 Implementation 55 Evaluation and Control 59 The Next Steps in Integrating MTI and Strategy 60 Net Present Value 61 Payback Period 62 Summary 62 APPENDIX 1 Social Responsibility and Management of Technology and Innovation 69 Three Broad Social Responsibility Issues 69 Strategies for Ethically Building Value-Added 79 Summary 80 PART 2 Innovation: Internal Strategy GlaxoSmithKline: Successful Internal Innovation 84 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. x CONTENTS GlaxoSmithKline: The Firm s History 84 Overview
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