MIT OpenCourseWare

http://ocw.mit.edu
15.912 Technology Strategy
Fall 2008
For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.
15.912
TechnologyStrategy
Professor Jason Davis
MIT Sloan School of Management
SeamlessMobility Whatisit?
AccordingtotheArticle:
Bringssimplicitytocomplexitybytyingeverythingtomobile
handsets
Focusesoneaseofuse
Arationaleforstayinginmanymarkets:
automotiveelectronics
hometheatres
emergencyradios
basestations
Awaytojustifynewtransitionproducts:
highspeedinternetaccessontrains
emailincars
Videophones
Cellularplanecoverage
OrganizationalContext:Whythey
devisedseamlessmobility
AccordingtotheArticle:
Resolveinternalstrifeandstrategicparalysis
Makedecisions:
Spinoffsmallerdivisions/concentrateonphones?
Retreatfromhandsets/focusnetworkequipment?
Focusoncommunications&entertainmentmarkets?
thatis,belikeNokia,Ericsson,orSamsung?
WhoamI?
NewstrategyprofessorintheMITSloanSchool
StudiedComputers&BrainsatMIT(SB)andCaltech
(MS)
GeneticEngineering@MIT
NeuralNetworkAlgorithms@Caltech
WorkedatMcKinsey,Intel,andIBMdoingtech
strategyrelatedwork
PhDinManagementSciencefromStanford
University
ResearchFocusonCollaborativeInnovation:howdopairsoffirmsmanagejoint
technologydevelopment?
Comparedrelationshipsbetween10largeITfirmsinSiliconValley,Seattle,and
PortlandthatcodevelopednewWeb2.0,mobility,andsecuritytechnologies
Caseresearchbasedon~100interviewswithexecs,managers,andengineers,
supplementedwithcomputationalmodeling
Whoareyou,andwhydidyoucome?
Needtoknowhowtodotechstrategywhenyou
graduate:workinconsulting,bigtechfirms,ornew
ventures....
Realizethattechnologywillshapemanagementinyour
nontechnologycentricindustry i.e., retail,banking,
government,etc.
Youreascientist/technologistthinkingabout
technologyentrepreneurship
Funsetofcases(Google,Apple,RedHat,etc.)and
fascinatingconcepts(innovatorsdilemma,network
effects,coopetition,complexitytheory,simplerules)
Others?
Whatisastrategyanyway?
Effectivestrategiesanswerthreekey
questions:
How will we
Create value?
How will we
Capture value?
How will we
Deliver value?
Effectivestrategiestackle3keyquestions:
Howwillwecreatevalue?
Howwillthetechnologyevolve?
Howwillthemarketchange?
Howdoweorganizeeffectively?
Howwillwecapturevalue?
Howdowecompetetogainsustainablecompetitiveadvantage?
Howshouldwecompeteifstandardsareimportant?
Howtomanagetechnologyplatforms?
Howwillwedelivervalue?
Howshouldweexecutethestrategy?
Howdowemakestrategicdecisionsandtakedecisiveaction?
Whyhaveastrategy?
Whyhaveastrategy?
1.Tomakechoicesandtakeactions
Is This Your Project Pipeline? (A Log J am)
Overcommitmentdestroys
Average
100%
Value-Added
Time on
80%
Engineering
Tasks 60%
40%
20%
0%
productivity
1 2 3 4 5 6
Number of Projects per
Engineer
TheTimingandImpactof
ManagementAttention
Phases
Knowledge Concept Basic Prototype Pilot Manufacturing
Acquisition Investigation Design Building Production Ramp-Up
High
ABILITY
TO INFLUENCE
OUTCOME
Index of
Attention and
Influence
Low
ACTUAL
ACTIVITY
MANAGEMENT
PROFILE
Whyisitsohardtokill
project#26?
Itsagoodproject!
Goodmanagerscanmeetstretchgoals
(andImagoodmanager)
Makingdifficultdecisionstakestime&energy
Itsveryhardtokillprojectswithoutastrategy
Reasonstohaveastrategy:
2.Tobeabletochangeit
AKeyFramework:
Theindustrylifecycle
Era of Ferment/
Discontinuity
Maturity
Dominant design
emerges
Incremental
Innovation
Maturity
TheIndustryLifeCycleasanScurve
Performance
Discontinuity
Takeoff
Ferment
Time
TheScurveMapsMajorTransitions
Performance
Ferment
Takeoff
Maturity
Discontinuity
Time
Thenatureoftechnicalworkchanges
Performance
We need to be
responsive & flexible
but controlled
Will it work?
Exploration, fun,
Can we make
creativity key
100,000?
And service them?
Core Ideas:
Will it work?
Forecasting S curves?
Exploration, fun,
creativity key
Time
Themarketingchallengeevolves
Performance
Stay close to your
customer really close
Who
Do we have
needs this?
any reference
customers?
Core Ideas:
Market segmentation
Who
The Innovators
Dilemma
Time
needs this?
Thewaysinwhichafirmcapturesvaluealsoevolve
dramatically
Performance
We may not be leading edge
but youd 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
Time
Speed, IP
Differentiation,
Frontier performance key
Core Ideas:
5 forces
Appropriability
Complementary assets
Theorganizationalchallengechanges
significantly
Performance
Entrepreneurial
Energy critical
Coordination &
control critical
Entrepreneurial
Energy critical
Core Ideas:
Managing the
organizational
dynamics of discontinuity
Time
15.912:TechnologyStrategyCourse Outline
Howwillwecreatevalue?
Howwillthetechnologyevolve?
Howwillthemarketchange?
Howdoweorganizeeffectively?
Howwillwecapturevalue?
Howdowecompetetogainsustainablecompetitiveadvantage?
Howshouldwecompeteifstandardsareimportant?
Howtomanagetechnologyplatforms?
Howwillwedelivervalue?
Howshouldweexecutethestrategy?
Howdowemakestrategicdecisionsandtakedecisiveaction?
Logistics
TheWaitlist
Grading:
Classattendanceandparticipation 50%
FourTwopagers 20%
Finalpaper 30%
CaseMethod+Readings&Lectures
ProfessionalStandards
Attendance
ComingonTime
BeingPreparedtoDiscussCases
Iencourageyoutoformdiscussiongroups;focusonsyllabusquestions
Ipreferyounotuselaptops
Teamwork
Aimfor3peopleteams
ForSession2:
eInk
WhatshouldeInkdonext?Whichapplicationsshouldtheytarget?
Why?
FirsttwopagerdueSession3
Findacoupleofteammates,chooseanindustry,sketchoutthe
relevantScurves
Only2pages!