Strat Mng of Tech Inn Flashcards
Why is it difficult for Org to implement Inn?
Most Organisations do not have the knowledge to understand the dynamics of Innovation or the investments needed to see Innovation throught to a commercial gain. This results in a high failure rate and increased Comp Advantage for successful Org
Why is the launch timing of a NPD development strategy important?
- Lauch time critical.
- Too late - cust go to competitor
- Earlier if going to be adopted in future (familiarity)
incremental innovation
An innovation that makes a relatively minor change from (or adjustment to) existing practices.
What is the timing of entry?
- First-mover advantage
- First-mover disadvantage
- Factors influencing Optimal timing of entry
What strategical positioning choices can management make when Analysing strategy of the business model?
- Market positioning -
- Cust to serve
- Needs vs expectations
- Channels used to reach cust
- Product positioning
- Choice of products/services
- Features of offerings
- Price
- Business network positioning
- Role of org
- Activities it performs (suppliers/producers/distributors/partners)
- Boundary positioning
- Determines markets/products/businesses no pursued
What are the objectives of the NPD?
- Max fit customer requirements
- Product must be more compelling than current standard & pricing
- Min dev cycle time
- Take too long to come to market
- Controlling dev costs
- Mng burn rate
What do we analyse under the Analysing capabilities of a business model
- Assemble resources & build capabilities to achieve goals
- Capabilities enable strat execution & future platform
- Assets in org & efficiency it’s used
- Resources provide cost model
- Capabilities enable strat execution & future platform
- Capability analysis
- Analysing processes/infrastructure
- Evaluating people & partners
- Assessing org & culture
- Evaluating leadership & governance
agglomeration technology
The benefits firms reap by locating in close geographical proximity to each other.
What is the org strategic direction?
- Assessing Org Current Direction
- External Analysis
- Porters 5 force model
- Stakeholder analysis
- Internal Analysis
- External Analysis
- Identify core competencies & capabilities
- Strategic intent
What impact does tech innovation have on society?
- Have impact due to buy/sell in society.
- To continue, org innovate
- = innovation affects society
- Create jobs
- Increase foreign investor attractiveness of country
How to create culture for innovation?
- Mng provide support & build innovation reputation
- Encourage failure & innovation time & rewards
- Resources made available
complimentors
Producers of complementary goods or services (e.g., for video game console producers such as Sony or Nintendo, game developers) are complementors
Why do we want to involve suppliers and customers in the development process?
Cust for testing, supp for knowledge on raw
Economist Robert Merton Solow (GDP)
Solow Residual. The historic rate of economic growth in GDP could not be accounted for entirely by growth in labor and capital inputs. He argued that this unaccounted-for residual growth represented technological change: Technological innovation increased the amount of output achievable from a given quantity of labor and capital.
How do we manage relationships with service providers during IT service delivery?
Better relationships
- Quicker service - quality service - Save on costs
Needs constant attention
Process set into place
- To solve problems - Problem tracking - SLA signed
Why should Org consider High-availability facilities?
- Uninterruptible electric power delivery
- Backup power systems
- Physical security
- Guards, cases, etc
- Climate control and fire suppression
- maintain temp for ideal computer running
- Network connectivity
- 2 backbone providers, run over private networks not conjested public internet
- Help desk and incident response procedures
- Staff to assist with info system support
- N+1 and N+N redundancy
- For each critical component there should be another unit standing by. Need 3 servers, should have 4.
What assets are involved?
- Financial
- Physical
- Intangible / Human
How do we manage the availability and security of IT?”
- Senior Mng
- Support & involvement of senior mng
- CIO
- IT planning, budgeting/performance, security
- System & Info owners
- Ensure controls in place for integrity/confidentiality/availability
- Business/Funcitonal Mng
- Have authority & must be aware and part of security
- ISSO
- identify, evaluate & minimise risk
- IT secutiry practitioners
- admin, network, specialists, analysts, consultants
- responsible for proper implementation of security req
- Security awareness trainers (security/subject matter proffesional)
- Users of the system
- Need to be properly trained
What have been the effects of Inn on Society?
Innovation has both negatively & positively affected Society in a growing degree over the last few years. The growth can be measure somewhat by Solow’s Risidual component in the GDP. Innovation is knowledge and can be used to improve Society greatly or if applied incorrectly do the opposite.
Low employee morale
Increase mistakes by employees
technology spillover
A positive externality from R&D resulting from the spread of knowledge across organizational or regional boundaries.
Delayed solutions
Solutions too late, delays ongoing processes
Why do we need to secure the infrastructure?
rivalry / hackers / end-users /customers
Fight threats
Rework
- Disruption creates hole that ripples over system
- Total costs difficult to find
- Increase costs & Lower morale
What impact does IT have on capabilities?
Capabilities is catalyst in transforming IT related resources => Higher value
innovation
The practical implementation of an idea into a new device or process.
What is the difference between the sequential and partly parallel dev process in NPD?
- Sequential - moving from 1 stage to another in order
- Parallel - Some/All dev activities overlap
How do we mng incident and disaster recovery?
- Share information
- More info to Incident Mng Process = resolve quicker
- Integrate with other IT processes
- Linking Incident Mng with Problem Mng & Configure Mng
- => More share info & quicker resolve
- Configure = pick up before problem
- Problem mng = eliminate root casues
- Automate
- High priority
- Minimises errors
What tools do we need to measure the NPD performance?
- Identify which projects met goals & why
- Benchmark org performance against competitor/own past progress
- Improve resource allocation/compensation emply
- Refine future inn strat
How to create more success when we are managing IT service delivery?
Service strategy
- See relationship of service/system/business/process
- Ensures services meet business req
Service design
- Hels create policies/architecture & designs of IT services
Service transition
- Ensures continuity
Service operation
- Cost of service is designed/predicted/validated
- In Service design & transition
- No value until service in operation
Continual service improvement (CSI)
- Measures of optimization identified in continual service improvements
How do we analyse what impacts IT has on opportunities in a business model?
- Scanning the environment
- Identify/determine trends
- Evaluate opportunity
- Can IT change basis of competition
- Can IT change nature of relationship & balance of power buyer/seller
- Can IT build barriers to entry
- Can IT raise switching costs
- Can IT add value to existing products or create new
What are some new service models when managing IT service delivery?
Geographical, process vs which computer adv
How do we manage innovation across borders?
- Centre-for-global strategy
- Innovation at central hub, then diffused through company
- Local-for-local strategy
- Inn in each division tailored for local market
- Locally leveraged strategy
- Inn in each division, but try to unify or use for whole comp
- Globally linked strategy
- Inn decentralised, centrally coordinated for global needs
technology clusters
Regional clusters of firms that have a connection to a common technol- ogy, and may engage in buyer, supplier, and complementor relationships, as well as research collaboration.
Waste
Nonvalue, incomplete product/service, noone interested
idea
Something imagined or pictured in the mind.
externalities
Costs (or benefits) that are borne
(or reaped) by individuals
other than those responsible for creating them. Thus, if a business emits pollutants in a community, it imposes a nega- tive externality on the community members; if a business builds a park in a commu- nity, it creates a positive external- ity for community members.
applied research
Research targeted at increasing knowledge for a specific applica- tion or need.
How do we construct NPD teams?
Consider how size of team will influence flexibility, costs, coordination, communication
Name the different NPD team structures?
- Functional teams
- Lightweight teams
- Heavy weight teams
- Autonomous teams
Barriers/Catalysts for innovation?
Barriers
- Constraints - Fin/Resource/Talent/Time/
- Risk aversion
- Bureaucracy & Misdirection & Miscommunication
- No incentives/training/autonomy/communications/support
Catalysts
- Mng support/modeling behaviour/innovative strat development
- Autonomy/Tolerance for risk/Clear targets
- Invest Talent/Right Teams/Communication
How do we analyse what impacts IT has on strategy in a business model?
- Determine IT in product market/business network/boudary position
- To explain how IT drives differentiation, sustainable adv & development of assets
- IT impact over time
technology tranjectory
The path a technology takes through its life- time. This path may refer to its rate of performance improvement, its rate
of diffusion, or other change of interest.
What is essential in governance of the IT function?
Essentials of enterprise governance
- Establish lines of responsibility, authority and communicaitons
- Establish policies, standards, measures & internal control mech
- To assist others to do their jobs
- Establish policies, standards, measures & internal control mech
Why is the pricing of a NPD development strategy important?
- Survival price strat - cover var&fixed costs
- ST, but good LT value
- Max current profit - determine costs & max ROI + profit
- Focus on current performance, but LT sacrifices
radical innovation
An innovation that is very new and different from prior solutions.
What is needed for new IT capabilities
Discover new & improve existing (competitive edge)
How do we analyse the value created for all stakeholders?
- Org expected to add value to ROI (profit)
- Use ROE
Why is it problematic to measure impact of IT on the org?
- No baseline to assess new improvements
- Current system analysis can improve efficiencies without new IT systems
- New tech can be intimidating to staff => false negative
- New tech not used at all => anti-new-tech mindset
How do we protect innovation?
Appropriability
- Ability to capture rents from innovation
- Determined = How quickly can be copied
Patents, trademarks & copyrights
- Patent = property right protects process/machine/manufactured - Trademark = Distinguish source of a good - Copyright = Protect works of authorship
What is the Innovation Funnel
This refers to the “funnel-like” effect Innovation ideas experience. At the top many innovation ideas are considered and systematically reduced throughout the Org planning & implementation phases.
Why is the distribution of a NPD development strategy important?
Method
- Direct sales
- More control (pricing, sell process, service)
- Catalogue
- Intermediaries (reps, wholesalers, retailers)
Accelerate
- Alliances distributors - Bundling relationships - Contracts & Sponsorship - Guarantees & consignment
Fines & Penalties
SLA not followed
How do we manage legacy problems found in IT service delivery?
- Tech problems
- Residual process complexity
- Local adaptation
- Nonstandard data definitions
How do we increase the success of IT governance of the IT function?
Busines value of IT
- IT must create value, better governance needed.
- Service quality, cost control, project delivery
- Process improvements
Recognition of IT impact
- Firms depended-ness on IT - IT projects risk must be controlled
IT as an enabler of corporate goverance and compliance
- Due to globalisation, most firms are forced implement IT governance
What tools can we use to improve the NPD process?
- Stage-gate process
- Quality func deployment - house of quality
- Design for manufacturing
- Computer-aided design
What types of business are there?
- Creators
- Distributors
- Landlords
- Brokers
What type of patterns can we get for innovation?
- Product vs Process Innovation
- Radical vs Incremental Innovation
- Competence-Enchancing vs Competence-Destroying Innovation
- Architectural vs Component Innovation
What are the 3 main parts of a business model?
Analysing strategy
Analysing Capabilities
Analysing the value created for all stakeholders
Which structure do we choose to organise for Innovation?
Comparisons:
- Mechanistic VS Organic structure
- - Mech = High degree of formalisation/standard
- -- Causing automation to be easier
- -- Not suitable for Innovation
- Organic
- - Low formalisation
- - No clear descriptions for positions
- Size VS structure
- Ambidextrous Org
What is the game plan? What choices can management make when Analysing strategy of the business model?
- Attract cust
- Compete successful
- Grow org
- Mng org architecture
- Develop required dynamic capabilities
- Achieve performance targets
tactic knowledge
Knowledge that cannot be readily codified (docu- mented in writ- ten form)
Why is the marketing of a NPD development strategy important? (7)
- Advertising
- Promotion
- Publicity
- Public relations
- Press releases
- Reputation
- Credible commitment
individuals creativity
function of his or her intellectual abilities, knowl- edge, style of thinking, personality, motivation, and environment, ability to look at problems in unconventional ways, the ability to analyze which ideas are worth pursuing and which are not, and the ability to articulate those ideas to others and convince others that the ideas
How do we organise the structural dimensions of the firm?
- Dimensions
- Formalisation = Degree firm arranges systems to strucutre behaviour of group
- Standardisation = Degree activities are uniformed
- Centralisation = Degree authorisation kept at top level
- Decentralisation = Degree decision making pushed down
What series of choices can show management which opportunities to pursue when Analysing strategy of the business model?
- Choices - Products to sell
- Choices - Which markets to enter
- Choices - How org differentiates
How do we design IT governance? (7)
- intentional but minimalist design
- board-level leadership
- broad-based executive involvement
- clear ownership but broad participation
- enforcement of execution but accommodating exceptions
- defining benefits and target expectations
- aiming for evolution instead of revolution in implantation
competence- enhancing (-destroying) innovation
An innovation that builds on (renders obso- lete) existing knowledge and skills. Whether an innovation
is competence enhancing or competence destroying de- pends on whose perspective is being taken. An innovation can be competence enhancing to one firm, while com- petence destroy- ing for another.
science park
Regional dis- tricts, typically set up by govern- ment, to foster R&D collabora- tion between government, universities, and private firms.
What are innovation projects?
- Development budget
- Project selection
- Discounted cash-flow methods
- Real options
What different NPD team structures are there?
- Functional teams
- Work in func dept, but meet with group.
- <10% spent on project
- Temp
- Lightweight teams
- Work in func dept, but meet more often
- Temp & <50% on project
- Have project mng & support admin
- Heavy weight teams
- Not in func dept
- Autonomous teams
- All team members work only on project
- Have full control - Resources/rewards/etc
creativity
The ability to produce novel and useful work.
basic research
Research tar- geted at increas- ing scientific knowledge for its own sake. It may or may not have any long- term commercial application.
How do we manage risk through incremental outsourcing when managing IT service delivery?
Rework Delayed solutions Fines & Penalties Legal exposure Service outage Waste Security breaches Low employee morale Dissatisfied customers
technological innovation
The act of introducing a new device, method, or material for application to commercial or practical objectives.
How do we manage the sources of implementation risk of IT project delivery?
Project size
- Bigger the project, the bigger the risk
Experience with technology
- Project risk increase, when team unfamiliar
Requirement volatility
- Req can change drastically from what is expected at start
absorptive capacity
The ability of an organization to recognize, assim- ilate, and utilize new knowledge.
What is the scope of IT governance?
IT governance
- Attainment of strat goals - Efficient operation - Reliable measurement - Compliance mng
Elements of Governance system
- Leadership roles - Org strucutres - Business processes - Standards - Measures of compliance
How do we estimate the availability of IT?
Firms should increase reliability -> increase resources (allocated)
What are collaboration strategies? And what are the benefits/costs of collaborating
- Reasons to go Solo
- Availability of capabilities
- Protecting proprietary technologies
- Controlling technology development & use
- Building & renewing capabilities
- Advantages of Collaboration
- Acquire skills/resources quickly
- Outsource to partner
- Source of experience/learning
- Share risk/rewards
- Create shared standard
What are the benefits of effective IT governance?
- Ensures IT supports business goals, max ROI, mng risks
- Assist in greater ROE
- Leads to cost reductions
- Direct impact on customer retention
- Security risks lower
- Firms spend less on compliance efforts
- Addresses legacies, outdated tech, inadequate security
Why is the licensing and compatibility of a NPD development strategy important?
- Decide tech compatibility with other firms
- Compatible firms => Leverage value of tech
- Backward compatibility to older tech
What are the key elements of the NPD development strategy?
- Launch Timing
- Licensing & compatibility
- Pricing
- Distribution
- Marketing
How do we manage large scale outsourcing arrangements in IT service delivery?
- Cost savings
- Dissatisfaction with existing IT capabilities
- Desire to focus firm’s strat
- Access to skills & talent
- New dynamics
How do we organise for innovation?
- Size & structural dimensions of firm
- Structural dimensions of firm
- Managing innovation across borders
How do we manage NDP teams?
- Construct NPD teams
- Structure of NPD teams
What threats does the Org need to fight?
- Security policies
- Firewalls
- Authentication
- Encryption
- Patching & change managment
- Intrusion detection & network montoring
- More
- Make deliberate security decisions
- security is a moving target
- practise discipline change mng
- educating users
- deploying multilevel measures as can afford
component (modular) innovation
An innovation to one or more components that does not significantly affect the overall configuration of the system.
What are the questions we have to ask to understand the elements of a business model?
- What does business do?
- How it makes money?
What is the purpose of a NPD strategy and plan?
Define deployment strat & plan for software application/system
discontinuous technology (disruptive)
A technology that fulfills a similar market need by building on an entirely new knowledge base. (Propeller to Jet engines)
What are the sources to innovation?
- Individuals such as entrepreneurs
- Society
- Public research
- Companies
- Industry
- Community
- Collaborative Networks - Technological Clusters
- Collaborative Networks - Technological Spilovers
science-push
This approach assumed that innovation proceeded linearly from scientific discovery, to invention, to engineering, then manu- facturing activities, and finally marketing. Little application in real world
What are benefits/costs of Innovation?
Rewards: Protect Firm Margins. Lower Costs. More flexible. Econ of scale possible for shorter Production runs. Ability to offer more to customer.
What are the biggest rivalry/hacker/end-user/customer threats?
- DoS
- Intrusion
- Viruses & worms
What are project champions in NPD?
Ind making decisive contribution, making progress & gaining support from senior mng
gross domestic product (GDP)
The total annual output of an economy as measured by its final purchase price.
technology transfer office
Offices designed to facilitate the transfer of tech- nology developed in a research environment to an environment where it can be commercially applied.
intranet
A private net- work, accessible only to author- ized individuals. It is like the Internet but operates only within (“intra”) the organization.
Security breaches
- Tech services should have security branches
- Applies when change is needed
What is the topology of all business models?
- Intuitively sensible - Group like org & compare to not-like org
- Grouped by how activities create value
- Names of category should be self-explaining
- Comprehensive
- Systematic
- Defined clearly
- Systematic rules, not objective
- Conceptually elegant
- Sleek, simple, self-evident
What do we analyse under the Analysing strategy of a business model
Game Plan -> Mng choices, how to
Strat - Series of choices determine opp can pursue & potential
Strat positioning
knowledge brokers
Individuals or organizations that transfer information from one domain to another in which it can be usefully applied.
complex knowledge
Knowledge
that has many underlying com- ponents, or many interdependen- cies between those compo- nents, or both.
architectural innovation
An innovation that changes the overall design of a system or the way its components interact with each other.
Why is governance needed of the IT function?
Should be govern, so it can be controlled
development
Activities that apply knowledge to produce useful devices, materi- als, or processes.
What should be in the NPD deploy documents?
- Deployment strategy
- Formulate deployment approach / Early in project
- Deployment plan
- Detailed schedule/resources/tech support info
Why is there an increase in innovation in last 5 years?
Innovation has increased in the last 5 years due to an increased global world and increased sophisticated innovations, which further increase the speed to discover the next innovation
technology diffusion
The spread of a technology through a population.
demand-pull
This approach argued that innovation was driven by the perceived demand of potential users. Research staff would develop new products in efforts to respond to customer problems or suggestions. This view, however, was also criticized as being too simplis- tic
How do we manage the new product development (NPD) process?
- Objectives of the NPD
- Sequential VS partly parallel dev process
- Project Champions
- Involving custs & suppliers in dev process
- Tools for improving NPD process
- Tools for measuring NPD performance
What is tech innovation?
act of introducing a new device, method or material for application to commercial or practical objectives.
Dissatisfied customers
Devastating for a service delivery firm
How do we manage the project execution of IT project delivery?
Execution should be inline with approved project plan
- Task execution - Measuring the progress of project - Reporting the project status - Exercising mng controls
Project should be mapped
Need measures
- Performance
- Risk
- Controlling change
Processes (executing/controlling/planning) interchangable
Legal exposure
- Infringements, risk of exposure
- High levels - compliance, reliance, security
- Service outage
- Not receiving service as expected, leading to loss
How do we analyse what impacts IT has on capabilities in a business model?
Capabilties IT builds to execute strat
What are successes if using Innovation & failures if we do not use it?
Success: Increase sales. Failure: Become Obsolete
What are the lifespans of current technology?
Product Life Cycles have decreased: Software (4-6months), Hardware (12-24months), Appliances (18-36months)
What tips are needed when evaluating the impact of IT on the Org? (6)
- Begin evaluation with “theory of change” (staff mindset on new tech)
- Clarity of purpose - NB! (what tech is expected to do, why, to whom)
- Define scope of efforts - clear understanding of limitations (more calls, but not better service)
- Basic grounding in Info Tech is prerequisite. Mng must have basic knowledge to comprehend
- Trusted impartial tech assistance = very valuable. (Advisors, not sales)
- Training. New tech useless without training.
incubators
Institutions designed to nur- ture the devel- opment of new businesses that might otherwise lack access to adequate funding or advice.
How to apply leadership to the IT function?
Understanding the role of IT in the firm
- Support
- IT supports day-to-day operations
- Factory
- Processing easy due to IT
- Eliminates defects
- Turnaround
- Firms adapt quickly due to IT
- Strategic
- IT sustains firms business operation & promote future transformation
