AEM1200_0209ToPost - AEM1200 Introduction to Business...

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Unformatted text preview: AEM1200, Introduction to Business Management. AEM1200, Monday 2/9 Technology and Innovation Technology and Economic Growth Types of Innovation The Innovation Process ΔY = f (ΔK, ΔL, innovation) K, Kondratieff Waves Kondratieff Definitions Definitions Technology The application of scientific and engineering The knowledge to achieve a practical result. knowledge Research An orderly approach to the revelation of new An knowledge about the Universe. knowledge Development The application, expansion and interconnection of The scientific and engineering knowledge to generate technology. technology. Areas of Rapid Technological Development Areas Information and Communication Technology Internet Software Cellular telephony Biotechnology Genomics Agriculture Genetically modified organisms Biological sciences Nanotechnology Energy / Sustainability / Recycling and reuse / Energy total product life cycle total Technology Cycle A cycle that begins with the “birth” of a new technology and ends when that technology reaches its limits and is replaced by a newer, better technology. Innovation Streams: Technology Cycles over Time Technological Substitution Era of Incremental Change (2) Technological Discontinuity (2) Variation Selection Dominant Design (2) Era of Ferment (2) Technological Discontinuity (1) Era of Incremental Change (1) Variation Selection Dominant Design (1) Era of Ferment (1) “Disruptive” Technologies Technologies and products that, while being Technologies “good enough”, offer qualitative improvements in other areas of performance; other Discount stores Internet PDA’s Innovation that expands on product characteristics Innovation and value propositions already in place; and Fundamental changes in product characteristics or Fundamental value propositions. value Incremental innovation Radical innovation The Four Principles of Disruptive Technology Technology Companies depend on customers and Companies investors for resources; investors Small markets don’t solve the growth needs Small of large companies; of Market’s that don’t exist can’t be analyzed; Technology supply may not equal market Technology demand. demand. Sources of Technology Sources Internal R&D Joint Ventures Contract out Licensing Purchase Purchase of the company developing the Purchase technology. technology Driving Forces for Innovation Driving Market pull Technology push Competition References / Recommended reading References “The Economics of Industrial Innovation”, The Freeman and Soete, 1997 Freeman “The Innovators’ Dilemma”, Christensen, 1997 “Mastering the Dynamics of Innovation”, Mastering Utterback, 1994 Utterback, Survey “Innovation in Industry”, The Economist, Survey February 18th, 1999 February Take-aways Take-aways The biggest single source of economic growth The and prosperity is technological innovation, carried on in business organizations; carried There are various types of technological There innovation innovation Product vs. Process Innovation Incremental vs. Radical vs. Disruptive Innovation The process of technological innovation is The complex, and requires purposeful management and adequate resources. and ...
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