ENM4103

Technology and Innovation

Management
Spring 2022-2023
ASSIST. PROF. DR. ÇAĞLAR SİVRİ
Class 1 - Agenda
• Who am I?
• Who are you?
• Syllabus
• Lecture 1
Who am I?
• Ph.D. in Engineering
• Worked in Textile Industry, R&D Companies and International
Education (UK, Sweden, Czechia).
• Research interests: R&D and its management, Innovation and
Technology Management, New Product Development.
Course Description
• This course is designed to lead the student to
understand the importance and the nature of
management of Technology and Innovation. To this
aim, theoretical approaches and practical applications
of innovation and technology management will be
discussed.
Required Reading
• White and Bruton (2011), The Management of Technology and
Innovation: A Strategic Approach
• Trott, P. (2013) Innovation Management & New product
development 5ed., Pearson
Science
Science is an organized, hierarchical activity that investigates
nature and human nature by experiment and observation.
Its goals are explanation, understanding, prediction, and control.
It tests its theories by logical, mathematical, and technological
means.
Science is shaped by social forces and historical change.
While seeking objectivity, science also shapes culture.
 What is Technology?
A discourse or treatise on an art or arts;
The scientific study of the practical or industrial arts.
Techne (art, craft, skill), Logos (word).

Some other attempts at definitions:

• A system based on the application of knowledge, manifested in physical objects and
organizational forms, for the attainment of specific goals —Volti
• Cumulative sum of means used to satisfy human needs and desires and to solve specific
problems —Markert
• The sum total of systems of machines and techniques that underlie a civilization —Nye
• Not merely a system of machines with certain functions, but an expression of a social
world —Nye
• The production of superfluities – today as in the Paleolithic age —Ortega y Gasset
• “The seeping false-hearted death” —DeLillo
Technology and Innovation
• Innovation
• change in method or technology
• positive, useful departure from previous ways of doing things.

17-8
Forces Driving
Technological Development
1. Must be a need, or demand, for the technology
2. Meeting the need must be theoretically possible, and the
knowledge to do so must be available from basic science
3. Must be able to convert the scientific knowledge into practice
in both engineering and economic terms

17-9
Forces Driving
Technological Development
4. The funding, skilled labor, time, space, and other resources needed
to develop the technology must be available
5. Entrepreneurial initiative is needed to identify and pull all the
necessary elements together.

17-10
Technology Life Cycle
• Technology life cycle
• A predictable pattern followed by a technological innovation, from its
inception and development to market saturation and replacement.

17-11
Advantages and Disadvantages of
Technology Leadership

17-12
Technology Followership
• A manager’s decision on when to adopt new technology also depends
on the potential benefits of the new technology, as well as the
organization’s technology skills
• Following the technology leader can save development expense

17-13
Measuring Current Technologies
• Emerging technologies are still • Pacing technologies have yet to
under development and thus are prove their full value but have
unproved the potential to alter the rules of
competition by providing
significant advantage

17-14
Measuring Current Technologies
• Key technologies have proved • Base technologies are those that
effective, but they also provide a are commonplace in the
strategic advantage because not industry; everyone must have
everyone uses them them to be able to operate

17-15
Assessing External
Technological Trends
• Benchmarking
• the process of comparing the organization’s practices and technologies with
those of other companies

17-16
Assessing External
Technological Trends
• Scanning
• focuses on what can be done and what is being developed
• places greater emphasis on identifying and monitoring the sources of new
technologies for an industry

17-17
Technology and Managerial Roles
• Chief information officer (CIO)
• executive in charge of information technology strategy and development.
• coordinates the technological efforts of the various business units
• identifies ways that technology can support the company’s strategy
• supervises new-technology development

17-18
Technology and Managerial Roles
• Technical innovator
• A person who develops a new technology or has the key skills to install and
operate the technology
• Product champion
• A person who promotes a new technology throughout the organization in an
effort to obtain acceptance of and support for it.

17-19
Technology and Managerial Roles
• Executive champion
• An executive who supports a new
technology and protects the
product champion of the
innovation.

17-20
Organizing for Innovation
• Development project
• A focused organizational effort to create a new product or process via
technological advances

17-21
Organizing for Innovation
• Sociotechnical systems
• An approach to job design that attempts to redesign tasks to optimize
operation of a new technology while preserving employees’ interpersonal
relationships and other human aspects of the work

17-22
 Importance of Technological Innovation
• Technological innovation now the single most important
driver of competitive success in many industries
• Many firms earn over one-third of sales on products
developed within last five years
• Globalization has increased competitive pressure
• Product innovations help firms protect margins by offering
new, differentiated features.
• Apple produces more than 100 models of its products that differ in
size, color and other features
• Process innovations help make manufacturing more
efficient.

23
Importance of Technological Innovation
• Advances in information technology have enabled faster
innovation
• CAD/CAM systems enable rapid design and shorter
production runs

• Importance of innovation and advances in information

technology have lead to:
• Shorter product lifecycles (more rapid product
obsolescence)
• More rapid new product introductions
• Greater market segmentation

24
Why Innovation Is Becoming
More Important
• Technology is changing fast, new products come from new
competitors
• Fast changing environment, product lifetimes shorter, need to
replace products sooner
• Products are increasingly difficult to differentiate
• Customers are more sophisticated, segmented and demanding, and
expect more in terms of customization, newness, quality and price
• Customers have more choice
• Apparently separate technologies come together
• Markets forming and changing fast
• With markets and technology changing fast, and good ideas quickly
copied, there is continual pressure to devise new and better
products, processes and services faster
25
 Impact on Society

• The aggregate impact of technological innovation can be

seen in GDP (gross domestic product – the total annual
output of an economy).
• The average GDP per capita for the world has risen
steadily since 1971, particularly in the developed
economies
• Economist Robert Solow showed that the growth in GDP
was not solely on growth in labor and capital inputs but
technological changes as well (Nobel prize 1981)
• GDP relates to improved quality of life and thus
technological innovation has a positive impact on society

26
 Impact on Society

• Innovation enables a wider range of goods and services

to be delivered to people worldwide
• More efficient food production, improved medical
technologies, better transportation,etc.
• Increases Gross Domestic Product by making labor and
capital more effective and efficient
• However, may result in negative externalities,
• E.g., pollution, erosion, antibiotic-resistant bacteria

27