Type:
Instructor Manual
Resource:
Technology Strategy for Managers and Entrepreneurs
Edition:
1st Edition
Author(s):
Scott A. Shane
CHAPTER 1 INTRODUCTION LEARNING OBJECTIVES: After reading this chapter, you should be able to: 1. Define technological innovation, explain why it is important, and describe how firms use it to achieve their objectives. 2. Describe how technological innovation occurs, and explain the effects that it has on individuals, firms, and society. 3. Define technology strategy, and explain why it is important for entrepreneurs and managers to develop technology strategies. 4. Describe the approach to technology strategy taken in the book, and explain why that approach is important. 5. Identify the core areas of technology strategy, and spell out how these different areas of technology strategy affect businesses. 6. Describe how the core areas of technology strategy differ for new and established firms, and explain why these types of firms need to take different approaches to technology strategy.
CHAPTER SUMMARY The chapter focuses on providing the reader with an introduction to the importance of technology innovation. In addition, the chapter defines several of the main point associated with technology, innovation and invention. Several reasons why technology innovation is important for the company and society are also covered. Technology strategy is also defined. The reasons why technology strategy is important are also Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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covered. The chapter ends by discussing the purpose of the book and providing a brief review of the information covered in the remaining chapters.
CHAPTER/LECTURE OUTLINE Introduction What Is Technological Innovation? Defining Technology Defining Innovation Defining Technological Innovation Why Technological Innovation Is Important Getting Down to Business: Remembering Process Development Why Technology Strategy? Purpose of the Book Approach to Technology Strategy Technology Strategy in Start-ups and Large, Established Firms A Preview of the Chapters Understanding Technological Change Meeting the Needs of Customers Capturing the Value from Innovation Developing a Technology Strategy Implementing a Technology Strategy
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ANSWERS TO DISCUSSION QUESTIONS 1.
What is technology? What are some examples of different types of new technology? What do they have in common? How are they different? Technology is much broader than just information technology. It is the
application of tools, materials, processes and techniques to human activity. Certainly, information technology – the use of zeros and ones in digital form on computers – is an important technology, but there are many other important technologies as well. Biologically-based technologies, such as those used to create new drugs or to clean up pollution, are also important. Similarly, mechanically-based technologies, such as those that make pumps or valves, matter. New materials, such as those in new ceramic composites, are valuable too. New technologies include new microorganisms, new mechanical devices, new materials, and a variety of other products and processes. The term “technology” refers to any application of tools, materials, processes and techniques to human activity.
2.
What is technological innovation? Why is it important to firms? Technological innovation is the use of knowledge to apply tools, materials,
processes and techniques to come up with new solutions to problems. Technological innovation can be planned or accidental. Sometimes the use of technical knowledge to solve problems is purposeful. Other times technological innovation isn’t the result of a deliberate attempt to solve a particular problem. Technological innovation is an important source of value creation. The application of knowledge to human activity allows for the more efficient production of
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existing products and services. Because of the importance of technological innovation to value creation, technological change has tremendous economic impact. Technological innovation is also important because it has a profound effect on the creation of wealth for individual entrepreneurs and corporate shareholders. Technological innovation is also important because it has a major impact on our lives as people. Designing an effective technology strategy entails the creation of new technology products and processes that provide benefit to your firm while minimizing the adverse effects of technological change on your customers and society at large. Many companies have run into trouble when they have made use of technology to achieve a competitive advantage and that technology has had adverse consequences.
3.
What is technology strategy? Why do firms in high technology industries need to develop technology strategies? Technology strategy is the approach that a firm takes to obtaining and using
technology to achieve a new competitive advantage, or to defend an existing technologyoriented competitive advantage against erosion. Technology strategy is important to learn for several reasons. Specifically, technology strategy is different from overall business strategy in several important ways: 1.
Technology strategy has to deal much more with issues of
uncertainty than general business strategy because technological change is highly uncertain. A very small portion of new technology ideas result in new products or processes.
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