University:
Massachusetts Institute of Technology
Course:
15.992 | S-Lab: Laboratory for Sustainable Business
Academic year:

2023
Views:

4

Pages:

27
Author:

montecarldj

Technology Strategy Who are you, and why did you come? What is a “strategy” anyway? Effective strategies answer three key questions: How will we Create value? How will we How will we Deliver value? Capture value? Effective strategies tackle 3 key questions: z How will we create value? – How will the technology evolve? – How will the market change? z How will we capture value? – How should we design the business model? – Where should we compete in the value chain? – How should we compete if standards are important? z How will we deliver value? – How do we manage the core business and growth simultaneously? – How do we use our strategy to drive real resource allocation? Why have a strategy? Why have a strategy? 1. To make choices Overload at PreQuip Active Projects (formal development projects by number) Resources Required for Completion (months) Months to Completion (desired) Implied Development Resource Allocation (months) This year Next year Year after that 54 123 86 286 24 8 24 12 20 4 40 38 50 92 24 14 62 36 172 0 0 23 0 22 0 352 75 215 153 29 36 9 30 18 3 48 62 40 60 29 150 13 80 93 0 120 0 95 0 0 All Other Support Activity (customer support, troubleshooting) –– –– 430 430 430 Total Development Requirements –– –– 2783 2956 2178 Available Resources (months) –– –– 960 960 960 –– 289.9 307.9 1 2 3 4 5 . . . 26 27 28 29 30 Rate of Utilization (percent) –– 226.9 Overcommitment destroys productivity Average 100% Value-Added Time on 80% Engineering Tasks 60% 40% 20% 0% 1 2 3 4 5 6 Number of Projects per Engineer The Timing and Impact of Management Attention Phases Knowledge Acquisition High Basic Design Prototype Building ABILITY TO INFLUENCE OUTCOME Index of Attention and Influence Low Concept Investigation ACTUAL MANAGEMENT ACTIVITY PROFILE Pilot Manufacturing Production Ramp-Up Why is it so hard to kill project #26? z z z It’s a “good” project! Good managers can meet stretch goals (and I’m a good manager) Making difficult decisions takes time & energy It’s very hard to kill projects without a strategy Reasons to have a strategy: 2. To be able to change it A Key Framework: The industry life cycle Era of Ferment/ Discontinuity “Dominant design” emerges Maturity Incremental Innovation The Industry Life Cycle as an S curve Performance Maturity Discontinuity Takeoff Ferment Time The S-curve Maps Major Transitions Maturity Performance Discontinuity Takeoff Ferment Time Transitions often challenge existing organizations severely Cumulate share of sales of photolithographic alignment equipment, 1962-1986, by generation Contact 44 17 Cobilt Kasper Canon P-Elmer GCA Nikon Total 61 Proximity Scanner <1 8 67 21 78 S&R (1) 75 81 99+ 7 9 10 55 S&R (2) <1 12 70 82+ But they also create major opportunity z Corning glass – Cookware to optical fiber z HP – Instrumentation to computers z IBM – Mainframes to PCs to Services z Eli Lilly – “Random” drug discovery to genetics and genomics The nature of technical work changes Performance We need to be responsive & flexible but controlled Can we make 100,000? And service them? Will it work? Exploration, fun, creativity key Will it work? Exploration, fun, creativity key Core Ideas: Forecasting S curves? Time The marketing challenge evolves Performance Stay close to your customer – really close Do we have any reference customers? Who needs this? Who needs this? Core Ideas: Market segmentation The Innovator’s Dilemma Time The ways in which a firm captures value also evolve dramatically Performance We may not be leading edge but you’d rather buy from us because… We can sell it, make it, service it, ship it Most of the time Speed, IP Differentiation, Frontier performance key Speed, IP Differentiation, Frontier performance key Core Ideas: 5 forces Appropriability Complementary assets Time The organizational challenge changes significantly Performance “Coordination & control” critical “Entrepreneurial Energy” critical “Entrepreneurial Energy” critical Core Ideas: Managing the organizational dynamics of discontinuity Time Effective strategies change over the life cycle! Technology Competition Markets Organization Maturity Takeoff Ferment Course Outline Foundational ideas: z How will we create value? – How will the technology evolve? – How will the market change? z How will we capture value? – How should we design the business model? – Where should we compete in the value chain? – How should we compete if standards are important? z How will we deliver value? – How do we manage the core business and growth simultaneously? – How do we use our strategy to drive real resource allocation? Focus of the course z How will we create value? – How will the technology evolve? – How will the market change? z How will we capture value? – How should we design the business model? – Where should we compete in the value chain? – How should we compete if standards are important? z How will we deliver value? – How do we manage the core business and growth simultaneously? – How do we use our strategy to drive real resource allocation? Key Topics: z Understanding the Evolution of Industries The Disintegrating Value Chain Competing in a Networked World z Actually doing Technology Strategy z z Logistics z The Wait List z Grading: – Class attendance and participation – “Two pagers” – Final paper z Collaboration/Academic standards z Office hours z Missed classes z The CDs 50% 20% 30%