MBA (T846) Final Exam Prep Flashcards
10 Strategic Schools
DPPECL PCEC
1 - Design School (block 1)
2 - Planning School (block 2)
3 - Positioning School (block 2)
4 - Entrepreneurial School (block 3)
5 - Cognitive School (block 4)
6 - Learning School (block 4)
7 - Power School (block 5)
8 - Cultural School (block 6)
9 - Environmental School (block 7)
10 - Configuration School (block 8)
Block 2
- Planning and Positioning Schools - Relationship between business and technology planning - Planning - structure, formal, logical steps, it goes through to implementation, analytical and data based, at the end it cycles through again. - Positioning - look at the end then work towards getting to that end point - TOOLS: Gregory 5 process Model (5 ovals, external and internal environments),
DPPECL PCEC
1 - Design School (block 1) 2 - Planning School (block 2) 3 - Positioning School (block 2) 4 - Entrepreneurial School (block 3) 5 - Cognitive School (block 4) 6 - Learning School (block 4) 7 - Power School (block 5) 8 - Cultural School (block 6) 9 - Environmental School (block 7) 10 - Configuration School (block 8)
Block 1
- Design School
- Technology strategy can be designed using internal and external factors
- Deliberate and emergent strategy
- Getting it wrong (No Strategy, Lost strategy / strategic drift, Wrong strategy)
- TOOLS: SWOT, STEEPV, Strategic Conversation (formal or informal)
TABLE
- Left (application, product, production)
- Top (Artefact, Knowledge, Mode of enquiry and action)
Exam Question (Part 1, Question 1)
a) explain why and organisation might audit it’s technology capabilities. Outline the questions that you would expect a technology audit to answer.
b) summarise two techniques that you might use within a technology audit. indicating how you would apply them in an example organisation, and illustrating the outcomes that you might reasonably expect.
a)
Schools: block 2
Process words: explain, outline
Tools: SWOT, Ford & Saren Tech Audit Questions
Answer: - identify strengths and weaknesses (internal.. not opportunities and threats.. those are external and future)
b)
Schools: block 2
Process words: summarise, illustrate
Tools: Value Chain analysis (B2), Classification of emerging/pacing/key/base technologies (B2), analysis meanings of tech (B1), SWOT (B1), opportunity discovery review (B3), dynamic capability (B4), Trajectory maps (B8)
Answer: - audit present not future
Exam 4/12 (Part 1, Question 1)
a)
Examine the reasons for, aims, outcomes and limitations of long- and short- term forecasting within strategic technology planning. Use an example wherever possible.
(16 marks)
b)
Briefly describe two techniques from T846 that can provide strategic technology forecasts.
(8 marks)
c)
Contrast the two techniques, with regard to circumstances in which they are more useful and less useful.
(10 marks)
a)
School:
Process Words:
Tools:
Answer:
b)
School:
Process Words:
Tools:
Answer:
c)
School:
Process Words:
Tools:
Answer:
Exam Question (Part 1, Question 2)
Imagine that you have been asked to present the colleagues of your evaluation of the likely medium- to long-term improvements in the performance of a technology on which your organisation’s strategy depends.
a) Compare the features of two analytical techniques for their contributions to your evaluation and your effective presentation of it.
b) Assess the relative effectiveness of both techniques, for your evaluation and for it’s presentation to colleagues. Outline any reservations you may have about what you have been asked to present.
a)
Schools: Block 2, Block 8
Process Words: Compare
Tools: Technology Roadmaps (B2), Technology S-Curve (B8), Trajectory Maps (B8), Learning Curves (B1)
Answer: Choose tools based on presentation, and compare.
b) Schools: Block 2, Block 8
Process Words: Outline
Tools: Technology Roadmaps (B2), Technology S-Curve (B8), Trajectory Maps (B8), Learning Curves (B1)
Answer: If you can show good and bad, that would help as there is the word “realitive”.
Exam Specimen (Part 1, Question 3)
(a) Distinguish strategic conversation from (i) strategic planning and (ii) performance conversation.
10 marks
(b) Describe at least two techniques that you believe are particularly well suited to usage in strategic conversation, and justify your belief.
24 marks
a)
School: Block 1, Block 2
Process Words: Distinguish
Tools: Strategic converstation, strategic planning, performance converstation.
Answer: Strategic converstation moves company forward. Performance converstation is external and real world as part of B8.
b)
School: Block 2
Process Words: Justify
Tools: Strategic converstation, strategic planning, performance converstation.
Answer: strategic planning is formal way of doing stratgic converstation. SWOT (B1),
Exam Specimen (Part 2, Question 4)
(a) Outline your preferred definition of organisational culture, and explain why you find it the most helpful in the context of technology strategy.
(b) Compare the extent to which the culture of an example organisation has shaped its technology strategy and, conversely, the extent to which the same organisation’s technology has influenced its culture.
a)
School: Block 6
Process Words: Outline, Explain
Tools: Bowman, Cultutral dimentions
Answer: Choose any and just backup why they are helpful or not.
Explaining a preference usually entails a comparison. You would gain more marks by bringing in another definition and explaining why you prefer one over the other.
b)
School: Block 6
Process Words: Compare
Tools: Influence diagram
Answer: Go into more detail with a diagram or more examples.
Given a well-described example, the comparison of extents of influence need not take much time. You merely need to judge the relative strength of influence in both directions, gaining marks for critical thinking.
Exam Specimen (Part 2, Question 5)
With reference to an example organisation:
(a) Explain and illustrate the kinds of power and influence that the organisation’s suppliers and customers have over its technology strategy, and conversely that the organisation can exert over them by means of its technology strategy.
16 marks
(b) Discuss at least two ways in which the organisation might profitably respond to attempts by its technology suppliers to exert influence on its technology strategy. In your discussion, highlight the relative merits of each response.
17 marks
a)
School: Block 5
Process Words: Explain, Illustrate
Tools: Dimentions of power, sources of power, types of influence
Answer: Use models from course in answer
An interesting aspect of this question is that answers may vary greatly according to the example. Nevertheless, some concepts would appear in most answers, e.g. the expert power of a technical supplier.
b)
School: Block 5
Process Words: Discuss
Tools: Dimentions of power, sources of power, types of influence
Answer: Use models from course in answer
At least two interpretations of this question are possible (and you may find more). One is to respond to power with power. Block 5 makes the point that power is essentially dynamic, so that either a power struggle or actions to change the balance of power is a reasonable response. Answers in this vein ought to connect with the definitions of power in part (a) . Answers being example-based, you could let your imagination run riot as to the actions possible (e.g. discredit the expert, or poach the expert from the supplier).
A second interpretation would draw on the competitive response framework in Block 7, for which see Question 6.
Exam Specimen (Part 2, Question 6)
(a) Outline and distinguish between the types of strategic response that are available to an organisation that seeks to shape its institutional environment. Identify which responses you believe to be reactive and which proactive, indicating your reasoning.
15 marks
(b) Discuss the extent to which an example organisation would be able to be proactive in shaping its institutional environment. You will need to describe the organisation sufficiently to illustrate your answer, but no more. Indicate the sources of power that the organisation can draw upon in responding to institutional pressure.
18 marks
a)
School: Block 7 (environmental)
Process Words: Outline, Distinguish
Tools: Influence Diagrams
Answer: Focus on examples both from class and from real world.
Unusually, this is a purely conceptual question, though no doubt answers can be improved by citing technological examples. The question repays careful interpretation. It asks you to further categorise responses beyond the level reached in the block. It asks only about responses that shape the environment, so you should exclude those that shape the organisation instead. Within the remainder, it asks which are proactive (i.e. before pressure is felt) and which are reactive (after pressure is felt). You would do well to include in your answer the reasoning behind your categorisation.
b)
School: Block 7 (environmental), Block 5 (Power)
Process Words: Discuss, Describe, Illustrate
Tools: System maps, oliver (acquiesce, compromise, avoid, defy, manipulate, etc.).
Answer: Focus on more examples.
This part essentially asks you to apply the concepts that you have developed in part (a) to a real example. To answer the question, your discussion will have to show critical awareness (e.g., this concept really helps to describe what the organisation did … that one does not … perhaps it is a vague concept, because … suppose instead we look at things this way … and so on).
Note the overt request to connect with the concept of sources of power in Block 5. What kind of power might enable the organisation to succeed in shaping its institutional environment?
Exam Specimen (Part 3, Question 7)
Strategy Safari’s Positioning School offers generic strategies for positioning products in markets. Clearly many people find them helpful in the context of business strategy, but this question asks for your views on positioning in the context of technology strategy.
(a) Discuss the relevance of generic product-market strategies to an organisation’s technology strategy. In your discussion, distinguish between their relevance to technology producers and to technology users.
(b) Describe one other concept from T846 that can analyse the market position of an organisation’s technology. Discuss the use of the concept and its limitations.
a)
School: Block 2 (planning & positioning)
Process Words: Discuss, Distinguish
Tools: Meanings of technology (product, production, application), Porter,
Answer: How do the theorys help position.
If your organisation is primarily a technology user, you are likely to have a different view of the worth of positioning, because you are on the demand side of the market rather than the supply side. You might discuss by example whether such an organisation needs to take account of the positions of its potential suppliers when forming its own technology strategy.
b)
School: Block 2 (planning & positioning)
Process Words: Describe, Discuss
Tools: Marking mix, market analysis, technology frames, configuration profiles, tratretory maps
Answer: Each model would have its particular usefulness and limitations, ranging from the practicalities and cost of data collection to the political or cultural acceptability of the approach in a given organisation.
Exam Specimen (Part 3, Question 8)
Imagine that the head of technology in a sister organisation describes her frustration at being unable to persuade her (usually supportive) bosses to adopt and improve a radical new technology, which she is convinced will eventually enable them to give customers market-leading value. There is no suggestion of incompetence or bad intent on anyone’s part. She has heard of something called ‘core rigidity’ and wonders whether her bosses are suffering from it.
(a) Explain to your colleague the concept of core rigidity, and outline the kind of evidence that might diagnose its presence or absence.
(b) Describe at least one other possible explanation of your colleague’s problem, using concepts from T846. In your description, outline the kind of evidence or analysis that might support or oppose the explanation.
a)
School: Block 4 (Cognitive and Learning)
Process Words: Eplain, Outline
Tools: Core regidity
Answer: The sister company got it wrong.. must clarify what core regidity really is.
The perplexing paradox in managing core capabilities is that they are core rigidities. That is, a firm’s strengths are also – simultaneously – its weaknesses.
In outlining the kind of evidence that you would look for, you would demonstrate your ability to apply the concept of core capability and rigidity. There is no right answer, but potential symptoms would include mindless routine in key processes, managerial systems that block development, values contrary to a new technology, skills made redundant by a new technology, insularity, and a culture that discourages challenges.
b)
School: Block 8
Process Words: Describe, Outline
Tools: New value network (B8),
Answer:
Following this approach, models and techniques from the elements of the course in your review would be good candidates for outlining the evidence you might need. Taking just one instance, the phrase ‘radical new technology’ suggests an architectural innovation that may require a new value network (Block 8 Section 3.2.3). This could be analysed by comparing the old and new performance architecture/regime. If the old architecture/regime had become a fixed ‘way we do things around here’ and could not be changed, the organisation (rather than your colleagues’ bosses) would indeed have a core rigidity. In this instance you would be able to connect the two parts of the answer.
Exam Specimen (Part 3, Question 9)
It has been said that the best approaches to strategy formation combine deliberate planning with emergence. Explain how technology strategy formation can be designed to incorporate deliberate and emergent processes. Illustrate your answer with examples.
a)
School: Block 1, Block 2
Process Words: Explain, Illustrate
Tools: Any.. open ended question
Answer:
It is best to start with definitions. In this instance, you would define deliberate and emergent strategy formation. The key distinction is that deliberate strategy is associated with anticipated outcomes, emergent strategy with unanticipated outcomes. Here are some instances where different perspectives can contribute.
Block 1 Figure 3 shows how deliberate and emergent strategy can coexist in general. It might be useful to annotate it with the facts of a particular example.
Block 2 Box 7 suggests several mechanisms whereby strategic planning can allow for emergent strategy:
• a shift from forecasting to scenario planning
• less documentation and more strategic conversation focused round a few
key performance variables
• decentralise planning responsibilities to line managers and business unit plans
• shorter time horizons, especially in the downstream value chain
T846 SPECIMEN EXAMINATION PAPER WITH GUIDANCE 12
• set broad goals rather than detailed plans.
It might be interesting to consider whether these actions would have the desired effect within a particular organisation’s culture (or whether, for instance, they would be subverted or rejected).
Gregory 5 Process Model of Tech Mgmt
B2) 5 ovals
ISA / EP
I
P S
E A
Identification
Selection
Acquistion
Exploitation
Protection
Leonard dimensions of a core dynamic capability
B4) onion
PIEI / PMSV
P
I I
E
Problem Solving
Implementing and Integrating
Experimenting and Prototyping
Importing Knowledge
Physical Systems
Managerial Systems
Skills & Knowledge
Value
Handy Sources of Power
B5) List
PRPEP
physical power
resource power
position power
expert power
personal power
Porter’s 5 Forces
B2) 5 boxes
EBSS / CR
E
S CR B
S
New Entrants
Buyers
Substitutes
Suppliers
Competitors
Rivalry
Morgan Organisations and modes of Political Rule
B5) List
ABTC / RDDD
Autocracy
Bureaucracy
Technocracy
Codetermination
Representative democracy
Direct democracy
Process Word (Analyse)
Resolve into its component parts, examine critically or minutely.
Process Word (Assess)
Determine the value of, weight up - see also Evaluate
Process Word (Compare and contrast)
find some points of common ground between two or more items and show where or how they are different.
Process Word (Compare)
Look for and show the similarities and differences between examples, perhaps reach a conclusion about which is preferable and justify this.
Process Word (Contrast)
Set in opposition in order to bring out the differences - you may also note that there are similarities.
Process Word (Criticise)
Make a judgement backed by a reasoned discussion of the evidence involved, describe the merit of theories or opinions or the truth of assertions.
Process Word (Define)
Give the exact meaning of a word or phrase, perhaps examine different possible or often used definitions.
Process Word (Describe)
Give a detailed account of
Process Word (Discuss)
explain, then give two sides of the issue and any implications.
Tool (Ansoff Matrix) - Block 2
Define: Explores four different ways of achieving market growth.
The last of these criteria can be considered with the assistance of the model provided by the Ansoff matrix. A company seeking to expand its business (increased sales) has essentially four choices of product/market strategy, according to the Ansoff matrix (Figure 11).
Tools (Chiesa’s model of technology strategy) - Block 2
Define: A model of how some organisations develp technology strategy.
Triangle
Context Foresight (down)
Selection (bi-dir)
Tech Strategy (in)
Timing (bi) Acquisition (bi)
Comparison of models
Each model of technology strategy that you have met so far covers some of the same ground, but each stresses different elements, possibly to the detriment of others. The Gregory model, for example, does not make ‘timing’ an explicit component, nor does it show how technology strategy could be linked to business strategy effectively. The Chiesa model also does not explicitly show the links to business strategy although the ideas are certainly present when one unpicks the detail of context foresight for example (where market demand for applications appears). Nor does the Chiesa model separate issues of technology acquisition, exploitation and protection. The Zahra model does not unpack the contents of technology strategy as it focuses on links to competitive strategy. None of the models indicates the significance of the nature of the planning process to strategy making. None of these models could be described as ‘wrong’, yet each may have shortcomings, depending on the use to which it is to be put.
BENIFITS
LIMITATIONS
Tool (BCG Growth - Share Matrix) - Block 2
Define: a model to think about planning a portfolio of products.
For example, portfolio analysis using the BCG matrix (see Strategy Safari,pp. 94–7) requires quantitative estimation of market share and growth rate. For those organisations operating in niche markets, market share is a fairly meaningless concept, as such organisations would claim to have 100% of a very narrowly defined market.
BENIFITS
It aims to help manage the matrix product portfolio as a whole, to
achieve balance between new products requiring investment and mature products generating cash.
It identifies products that ought to be eliminated from the portfolio.
LIMITATIONS
matrix product portfolio as a whole, to
achieve balance between new products requiring investment and mature products generating cash.
It identifies products that ought to be eliminated from the portfolio.
Experience Shows there is benefit in high curve production volumes to achieve
cost advantage, so it is worthwhile for firms to cut prices to gain market share early.
PIMS Makes data available to allow database organisations to learn from the
past experience of others.
Drawbacks
It only assesses two dimensions, market growth and relative market share so may provide misleading conclusions, and lead to elimination of products that have other value to the organisation.
Market share is not always an appropriate measure of success e.g. a small firm may operate successfully in a niche market, essentially possessing only a small share of the overall market. Much depends on how ‘market’ is defined.
Tool (Competitive Web Analysis) - Block 2
Define: A tool to compre an organisation’s strengths against it’s competitors.
Determine the main effectiveness characteristics for the industry from the point of view of the customer. (Some form of market research might be appropriate) A typical set which is fairly widely applicable is as follows:
product (including service) features:
primary – main features relating to basic purpose of product
secondary – features which differentiate product from those of competitors
tertiary – only apparent after purchase – may pre-dipose customer to repeat purchase
grade – degree of conformance to specification and the tightness of the specification
availability – length of wait between decision to buy and use of the product
price – including cost of ownership and disposal
response time – time needed for new product development
sales and general competence – sales force competence, marketing effort, etc.
Tool (Decision Tree Analysis) - Block 2
Define: a method of determining outcomes based on liklihood factors.
Decision analysis employs the type of tree structure we met earlier to structure and evaluate complex investment decisions. The aim is to place
a monetary value on each of the possible outcomes of each decision, and assign a probability of that outcome occurring.
Consequently the dynamic management of real options is essential. There are
three key activities.
1 Monitoring progress: information on project progress needs to be regularly updated so that options can be exercised at the right time or deferred as appropriate. The nature of the R&D results will determine whether and when further technical development and/or commercial development activities are needed, for example. When decisions are structured the main areas of uncertainty (i.e. those elements with large impacts on the rest of the tree) should be identified so that particularly close attention can be paid to these.
2 Testing and updating assumptions: as mentioned above, those aspects of the decision tree with particularly large impacts on the rest, together with
other key assumptions (perhaps about factors in the external environment), need to be identified at the outset and re-evaluated at appropriate intervals. This should include when key milestones are reached or when other events trigger re-evaluation. An unexpected outcome, or competitor activity might provide such triggers. A complete revision of the decision tree may be needed after such a review.
3 Exercising options: the continuous updating described above provides the basis for management decisions to exercise, defer or abandon options. As previously discussed, options often have limited windows of opportunity: an option exercised too late may have little or no value.
Tool (Diffusion Process) - Block 2
Define: A model for considering adoption of new products / technologies in the marketplace.
Reducing the level of customer-perceived risk is therefore a necessary strategy, although not all customers will be as risk averse as others. Figure 14 shows
the well-known pattern associated with the uptake of new products. The most risk averse customers are likely to be ‘laggards’, who wait until the product has proved itself (and price has fallen) to reduce risk associated with
the purchase.
Tools (Dimensions of strategic-planning processes) - Block 2
Table Dimension (CFFF PC) Definition
- Comprehensiveness (exhaustive)
- Formalisation (formal, structures, techniques)
- Focus (balance between control
- accounting and creativity - entrepreneurial)
- Flow (top-down or bottom-up)
- Participation (covers all, it’s about involvement)
- Consistency (high frequency of cycles)
The first four of these dimensions are associated with ‘rationality’ – the tendency of a planning system to be analytical, visible and well organised; and the last two ‘adaptability’ – the capability of the planning system to learn, to alert managers to changing organisational and/or environmental conditions that impact on strategy.
BENEIFTS
LIMITATIONS
Tool (Gregory Five Processes) - Block 2
Define:
Five Process Model of Technology Management
- 5 ovals overlapping
- External environment outside the ovals, in the middle is the internal environment
- Identification (Top.. technology assessment, pre-selection framework, market scanning, information management)
- Selection, (Strategic implications, competitive analysis, technology forecasting, decision criteria & process, monitoring
- Acquisition (make-buy, internal R&D, project mgmt, ..)
- Exploitation (customer supplier network, incremental development, product management, complementary assists)
- Protection (options for protection, establish strategy, monitor effectiveness)
Comparison against Sethi
From the point of view of strategic technology planning, my view is that the following aspects, for example, are not well represented in the Gregory model:
l the need for integration of technology planning with other aspects of business planning: so as to ensure technology is used effectively to generate value for the organisation
l the dynamic nature of technology planning: the need to adjust plans according to circumstances that develop over time; and all the questions concerning timing that need to be addressed such as when (rather than how) a particular technology should be acquired or exploited
l the processes and techniques to be used to carry out technology management: these need to be selected to suit the context and purpose.
BENIFITS
LIMITATIONS
Tool (Marketing Mix) - Block 2
Define: Factors affecting customer motivation and behaviour.
Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. 4 P’s.
- Product
- Price
- Promotion
- Place
Marketing mix is ‘the combination of marketing inputs that affect customer motivation and behaviour. These inputs traditionally encompass four controllable variables ‘the 4 Ps’: product, price, promotion and place. The list has subsequently been extended to 7 Ps, the additions being people, process and ‘‘physical evidence’’.’ (Chartered Institute of Marketing, 2004).

Tool (Meanings of technology) - Block 1
Application
Product
Production
vs.
Artefact
Knowledge
Mode of enquiry and action
Tool (Porter’s 5 Forces) - Block 2
Define: A model for exploring aspects of an industry and how attractive it is.
- Threat of New Entrants. An industry is like a club in which firms gain admittance by overcoming certain “barriers to entry,” such as economies of scale, basic capital requirements, and customer loyalty to established brands. High barriers encourage a cozy club in which competition is friendly; low barriers lead to a highly competitive group in which little can be taken for granted.
- Bargaining Power of Firm’s Suppliers. Since suppliers wish to charge the highest prices for their products, a power struggle naturally arises between firms and their suppliers. The advantage goes to the side which has more choices as well as less to lose if the relationship ends—for example, the firm that need not sell the bulk of its output to one customer, or the one that makes a unique product with no close substitutes.
- Bargaining Power of Firm’s Customers. A firm’s customers wish to get prices down or quality up. Their ability to do so depends on how much they buy, how well informed they are, their willingness to ex- periment with alternatives, and so on.
- Threat 0/Substitute Products. There is an old saying that nobody is ir- replaceable. Competition depends on the extent to which products in one industry are replaceable by ones from another. Postal services compete with courier services, which compete with fax machines, which compete with electronic mail, and so on. When one industry innovates, another can suffer.
- Intensity of Rivalry Among Competing Firms. All of the previous fac- tors converge on rivalry, which to Porter is a cross between active warfare and peaceful diplomacy. Firms jockey for position. They may attack each other, or tacitly agree to coexist, perhaps even form alliances. This depends on the factors discussed above. For example, the threat of substitutes may drive firms to band together, while se- vere competition may erupt in industries where buyers and suppliers are of relatively equal power.
Tool (Porter’s value chain) - Block 2
Define: A means fo breaking down the activities within a business.
The value chain displays total value, and consists of value activities and margin. Value activities are the physically and technologically distinct activities a firm performs. These are the building blocks by which a firm creates a product valuable to its buyers. Margin is the difference between total value and the collective cost of performing the value activities.
The word “margin” on the right side of Porter’s figure indicates that firms achieve profit margins based on how the value chain is managed.
Economic value can dominate for commercial service enterprise, as it would for a manufacturing organisation. More complex notions of value need to be taken into account for public sector services, e.g. value to society; ethical values.
2 Problems with traditional VCA:
l Value activities as labelled in traditional value chain diagram are not always appropriate; e.g. inbound/outbound logistics are difficult to define in service organisations. Porter intended that his generic Value Chain should be applicable across all sectors, and advocates applying judgement to define and order a suitable set of activities. ‘Everything a firm does should be captured in a primary or support activity. Value activity labels are arbitrary and should be chosen to provide the best insight into the business’ (Porter, 1985, p. 48).
l The traditional approach to VCA considers only economic value which at first sight seems inappropriate/inadequate to analyse public sector organisations. However economic value has two components: revenue and costs. Cost-based assessments of value are relevant to the public sector.
l It is conceivable that value chain analysis could be applied using non- economic assessments of value, as the tool is primarily a qualitative one in any case. Thus the Inland Revenue might assess the impact of internet technology on its business in terms of the cost savings associated with not handling paper tax returns as well as in terms of the enhanced customer perceived value of the convenience of on-line submissions. Reduced costs in this area could provide more funding for other value activities such as chasing defaulters and thereby provide more value from the IR service to government and society as a whole.
3 For example, the (primary) value chain activities for an airline have been identified as (Porter, 1985, p. 108):
l ticket counter operations l gate operations
l aircraft operations
l on-board service
l baggage handling
l ticket offices.
4 Once the value chain itself has been defined it is straightforward to analyse the impacts that technology can have on each element of the value chain, in the same way as is described in ‘Strategy and the Internet’.
Tool (Probert Link Tech Mgmt. into Bus. Planning) - Block 2
Business Planning (Top) Right down arrows
- Acquisition planning
- R&D Projects & Acquisitions
Technology Base (Bottom) Left Up arrows
- Technology audit
- Gap Analysis, Benchmarking, Forecasting
FAR LEFT: External (Markets, Competitors, Technologies)
BENIFITS
LIMITATIONS
Tool (Risk Prioritisation Model) - Block 2
Define: a simple matrix to identify risks which the business is most exposed to.
This could be a quantitative risk assessment (as may be needed in complex safety-related risk contexts), but in many cases a qualitative approach such as use of the matrix in Figure 29 may well be adequate.
Tool (Scenario Planning) - Block 2
Define: a technique for exploring long range strategies.
When contemplating the future, it is useful to consider three classes of knowledge:
1 Things we know we know.
2 Things we know we don’t know.
3 Things we don’t know we don’t know.
Scenario planning is a clear manifestation of the importance of the process of strategic decision making. The technique’s benefits probably lie more in its ability to expand managers’ horizons than in the formal outcomes, the scenarios themselves.
A variety of methods to support technology planning is used: project management, environmental scanning (including patent searches), brainstorming, QFD, and scenario planning were all cited, for example, but each by a minority (13% at most) of respondents. Very few (2%) stated that they used technology road mapping techniques. 17% of respondents said they used no tools to support technology planning.
The strategic conversation has both formal and informal elements: the formal includes planning activities such as strategy reviews and project evaluations; the informal includes chance corridor meetings, friends working together, spontaneous expressions of concern and so on. Scenario planning is usually singled out as providing an excellent framework and strong stimulus for strategic conversation, but more ad hoc approaches may be equally effective.
Tool (Sethi Integration of Tech & Bus Planning) - Block 2
General Planning Model (Top workflow)
- Mission
- Goals
- Objectives
- Policies
- Programmes
- Plans
- Implementation
Strategic Management of Technology (Bottom Workflow)
Input (current tech profile, scenarios, tech forecasting)
- Technology situation assessment
- Portfolio development
- Tech & corp integration
- Tech investment priorities
Comparison with Gregory model
Consider two of the models of technology strategy or technology planning that you have met so far, the Gregory model (Figure 3) and the Sethi model (Figure 5), in the Introduction to this block. How well do these models reflect the list of questions that the technology plan needs to address? From the point of view of strategic technology planning, my view is that the following aspects, for example, are not well represented in the Gregory model:
* the need for integration of technology planning with other aspects of business planning: so as to ensure technology is used effectively to generate value for the organisation
* the dynamic nature of technology planning: the need to adjust plans according to circumstances that develop over time; and all the questions concerning timing that need to be addressed such as when (rather than how) a particular technology should be acquired or exploited
* the processes and techniques to be used to carry out technology management: these need to be selected to suit the context and purpose.
The Sethi model, in contrast, shows interaction between technology and business planning, and identifies several specific techniques to be applied, but does not identify the different types of technology management decision (identification, selection and so on) that form part of technology strategy development.
It is always possible to identify aspects of detail that are not explicit in a model. After all, any model is a simplified representation of reality. It is clearly crucial to use an appropriate model for the purpose, so that attention is given to the important elements. Later in Part 1 you will be asked to develop a more comprehensive model of technology strategy as an aid to planning. First, though, it is necessary to say something about planning processes and their contribution to strategy making.
BENIFITS
LIMITATIONS
Tool (Six Markets model of Relationship Marking) - Block 2
Define: for considering relationships which the organisation needs to establsih and nurture in the market.
The philosophy of relationship marketing is based on the principle that it makes sense to focus on retaining customers as well as to attract new ones.
The relationship marketing concept extends beyond customer markets.
The Six Markets model of relationship marketing in Figure 15 (Christopher et al., 1991) identifies other stakeholder groupings that need to be considered. The planning function needs to identify all the critical relationships that the organisation must establish and nurture.
Examples of relationships include:
Relationships with customers/users provides better understanding of the customer/user needs and wants of goods and services and should therefore promote deployment of technology in a way that adds value for the customer.
Relationships with suppliers might lead to collaborative technology development of value to all parties.
Relationships with regulators (Influence Markets in 6-markets model) provides opportunity to influence regulation (often an issue for new technology applications) so that as advantageous a business environment as possible exists for future technology exploitation.
Drawbacks:
costs associated with building/maintaining good relationships
a tendency to rely too much on messages from the marketplace (although note the wider scope of relationship marketing defined by the Six Markets model) and become too market-led.
Tool (STEEPV) - Block 1
DESCRIPTION
Social
Technological
Economic
Ecological / Environmental
Political
Values
Group method (recently including online groups/networks)
• Attractive & emerging framework for brainstorming sessions
• Involve structured-freethinking (to articulate ideas using the STEEPV framework)
• All ideas should be captured
• Individual ideas should not be discussed
• After collection of all ideas the group should discuss on:
– clustering ideas;
– prioritising ideas, and
– identifying ‘wild ideas’ (usually the most difficult task).
BENIFITS
* New / better solutions (freethinking)
• New / better problem definition
• Help reducing conflict
(new / better visions help participants understanding different perspectives on problems)
• All ideas have equal status (before prioritisation)
• Participants feel owners/part of the process
LIMITATIONS
* Unworkable ideas
• Results depend on the skill of facilitator to keep discussion alive
• Strong antagonist / inflexible positions may not allow consideration of some ideas
• Strong or important personalities can control or drive discussion on their on interest
Tool (Strategy Clock) - Block 2
Define: Explores different ways of positioning the business in relation to added value and price level.
Strong market focus is more explicit in the Strategy Clock model.
More variants are included in the Clock model. The possibility of hybrid approaches (i.e. equivalent to simultaneous cost-leadership and differentiation) is acknowledged. This does, though, result in a more complex model that may be more difficult to understand.
By identifying strategies that are likely to be unsuccessful the Clock model helps point out potential strategic pitfalls to managers e.g. cost leadership strategies that provide low value resulting in the need to discount prices too much to be justified by the amount of cost reduction that is achievable.
Tool (SWOT) - Block 1
DESCRIPTION
- Strengths
- Weaknesses
- Opportunities
- Threats
1) list internal capabilities (strengths & weaknesses) and external possibilities (opportunities & threats)
BENIFITS
Benefits of SWOT analysis
The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don’t have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant or business adviser.
Another advantage of a SWOT analysis is that it concentrates on the most important factors affecting your business. Using a SWOT, you can:
understand your business better
address weaknesses
deter threats
capitalise on opportunities
take advantage of your strengths
develop business goals and strategies for achieving them.
Limitations of SWOT analysis
When you are conducting a SWOT analysis, you should keep in mind that it is only one stage of the business planning process. For complex issues, you will usually need to conduct more in-depth research and analysis to make decisions.
Keep in mind that a SWOT analysis only covers issues that can definitely be considered a strength, weakness, opportunity or threat. Because of this, it’s difficult to address uncertain or two-sided factors, such as factors that could either be a strength or a weakness or both, with a SWOT analysis (e.g. you might have a prominent location, but the lease may be expensive).
LIMITATIONS
A SWOT analysis may be limited because it:
doesn’t prioritise issues
doesn’t provide solutions or offer alternative decisions
can generate too many ideas but not help you choose which one is best
can produce a lot of information, but not all of it is useful.
Tool (Technology Acquisition Routes) - Block 2
Define: Alternative approaches for an organisation to gain the technoogy it believes it requires.
Internal development
R&D either in a central facility or devolved to different business units within the organisation. Different organisations define R&D in different ways. The standard definition is: ‘creative work undertaken on a systematic basis in order to increase the stock of knowledge and the use of this stock of knowledge to devise new applications’ (DTI, 2000).
Includes ‘internal venturing’ – a separate unit with an entrepreneurial remit is set up to develop new businesses and products. Remains within the full control of the organisation but can have a different culture and be relatively free of constraints that apply to the rest of the business.
BENIFITS
Complete control of development processes and subsequent exploitation
ownership of all revenues/profits and rights to technology competitive advantage from proprietary (unique) technology
leadership position possible
effective to build on existing competences.
LIMITATIONS
High cost.
High risk.
Long timescales.
Tendency for continuation of existing patterns of
R&D and danger of being locked in to outdated technology.
Tool (Technology Pioneer / Technology Imitator) - Block 2
Define: exploring the pros and cons of being first to market / first to use.
Strategies: organisations should not aim to choose a particular generic strategy and then stick slavishly to it. E.g. It may be necessary for an organisation to be a technology pioneer in some circumstances and an imitator in others. Each organisation needs to have its own unique position, and devise ways of using technology that achieve its overall business aims.
BENIFITS - Pioneer
Novelty and differentiation allow premium prices to be charged and higher margins achieved.
Opportunity to become the customer-preferred supplier by shaping customer preferences, with lasting benefit after entry of competitors, especially if high switching costs (for the customer) can be ‘built-in’.
Establishment of de facto standards that later entrants must comply with.
Greater likelihood of opportunity for ownership of intellectual property such as patents.
Reputation for technology and innovation.
BENIFITS - Imitator
Opportunity to learn from market and technical experience of pioneers.
Lower risk of investing in developments that do not ultimately succeed in the marketplace.
Benefiting from market development achieved by pioneers.
Opportunity to choose a competitive position in relation to that adopted by the pioneer (e.g. more focused on a specific market segment).
Lower R&D costs.
LIMITATIONS - Pioneer
High costs of R&D.
High levels of risk of market or technical failure
Becoming locked into a technology superseded by later developments
Early mistakes (e.g. ‘bugs’) may be exploited by imitators.
Changing market demand
LIMITATIONS - Imitator
Inability to charge premium prices for ‘me too’ products.
Difficulty or high cost of access to technology owned elsewhere.
Difficulty of gaining market share already captured by pioneers.
Tool (Technology Roadmaps) - Block 2
Define: considers an approach to integrate technology with business planning.
Technology road-mapping is a comprehensive tool to help firms better understand their markets and make informed technology investment decisions. It is a planning process – led by the industry – which can assist firms to identify their future product, service and technology needs and to evaluate and select the technology alternatives to meet them.
BENIFITS
The flexibility that this affords the teams charged with their production. They need not be constrained by rigid guidelines but can design their methods to suit their needs and circumstances.
The multiplicity of approaches that this might engender provides opportunity for sharing of experience and good practice between Business Areas and companies, with the aim of continuous improvement.
LIMITATIONS
The difference in methods used e.g. to analyse markets may lead to variation in the quality of the various road-maps produced, and lack of comparability of the outputs.
The difference in presentation of the road-maps may hinder comparability and the ability of the corporate function to identify common needs for technology development.
Tools (Zahra model of strategic technology planning) - Block 2
The Zahra model identifies one aspect of the dynamic nature of technology planning: that the balance between technology and competitive strategy changes over time, with technology strategy driving business strategy at some times and vice versa at others. There are other aspects too.
First, and most simplistically, all strategy must be dynamic because of the long timescales to which strategic plans relate.
Second, there are several questions relating to the timing of technology exploitation and acquisition that need to be addressed by the technology plan.
Third, there is always the issue of the technological breakthrough.
Technology plans must therefore be capable of adaptation on a continuous basis.
Clearly, then the dynamic nature of technology planning needs to be reflected in any worthwhile model of technology strategy. The model described in
Box 9 includes ‘timing’ as a specific component.
Grid broken into triangles Strategic Tech Mgmt should be viewed as a “dyad” or on-going two-way process between business and tech strategy Four characteristics that determine competitive advantage
1) competitive & tech strategy influence each other in continuous loop
2) emphases changes over time, competitive or tech in the lead for a period
3) competitive strategy leads based on learning (implementation of strategy)
4) formal and autonomous efforts fit competitive and tech strategies together
Grid
5 6 7 8
1 2 3 4
Left (L to H) Firm’s technological capabilities
Bottom (L to H) Rate of Technological change in industry
High (2,4,5,7) or Low (1,3,6,8)
Technological Heterogeneity across firms
