Open Course Ware
Management of Technology (2006)

Author/Editor :                          Aynampudi Subbarao
Books published by Author:      Management of Technology Change (1993)
                                                Corporate R&D and Innovation (1995)

Authors Papers:                        http://ssrn/author=853788
Authors Public profile:              http://www.linkedin.com/in/indiainvents

Module 1: Globalization and Value creation

What explains the rise of the emerging world's true global leaders, which operate diverse businesses profitably, at scale and in a wide range of geographies? The emerging markets with demanding yet price sensitive customers, high cost of inputs leading to thrifty use of resources, challenging distribution environment, HRD practices turning employers into finishing schools and the dynamic environment enabled (determined) companies develop the distinctive capabilities they need to compete successfully elsewhere. Globalizing firms in the emerging markets as recipients’ of technology appeared to be gaping at the strategic hole but several of them credited with indomitable spirit crossed the valley of death by leveraging their learning in the home market. Each of them first forged distinctive capabilities in the difficult circumstances of its home market and then mastered the art of transferring its business DNA: the core skills and supporting organizational culture that help it make money, reliably, in diverse markets. This module covers the fascinating journey of globalizing Indian firms, a new breed of MNCs from emerging markets.

Module 2: Knowledge the basis of competition

In a global knowledge economy, the touchstone of competitiveness is the capacity for innovation and all governments have taken up the onerous task of fostering a culture of innovation in their nations but innovation cannot be arranged by fiat. It is the individuals and organization that create a knowledge society by learning how to learn. Knowledge societies are about capabilities to identify, produce, process, transform, disseminate and use information to build and apply knowledge for human development. Tomorrow’s jobs will be more and more a matter of producing, exchanging and transforming information or knowledge. Our societies will be wholly engaged in assimilating a continuous flow of new knowledge. The demand for learning will be greater than ever, but its expression will be different: the object will no longer be an apprenticeship in one specific type of activity, which scientific and technological progress may very well make obsolete in no time. In an innovation society, the demand for knowledge will be in terms of ever-recurring needs for re-skilling. This module unmasking the fundamentals of knowledge conversion to Technology will help the readers to learn  `how to learn’.

Module 3: Value creation from Technology licensing

In the era of globalizing world economy, competitiveness of nations depend crucially on the speed of acquiring, absorbing and effectively utilizing new technology vis-à-vis their global competitors. Technology in the form of creative application of existing technical knowledge or generation and application of new technical knowledge results in productivity improvements. Learning is not an automatic outcome of technology transfer is borne out by several studies, the significant understanding of a licensor's technology took place in product areas where the licensee hoped to be technically active in the future. Often, technologically active firms have more than one partner, gaining an advantage depends on ability to meaningfully integrate separate efforts. Less discussed but critical is the role played by expatriate employees of licensor in facilitating/ obstructing learning at recipients end. Globalization, apart from compressing product life cycle/ technology lie cycle also severely shorted technology cooperation periods making exit scenarios an essential part of technology transfer negotiations.

Module 4: Value Creation from Technology Partnering

The past few decades witnessed an unprecedented growth in the use of alternative forms of organization, with value of alliances, mergers and acquisitions crossing trillion dollar volumes. As a result, the traditionally independent self-contained organization seems to have evolved into an organization that replaces part of its internal growth by growth through means of mergers, acquisitions and strategic alliances. Corporate alliances thus have become central to many business models, most large companies reporting between 30 to 100 alliances. Managers of globalizing firms from emerging economies now have to learn about alliance management and develop networking capabilities. Most firms like Indian firms start the journey with M&A and later move up to take technology alliances. The Strategy, Structure and Systems of these two formats cannot be more dissimilar. When, technology access replaces market access as drivers of global expansion, getting into several technology alliances becomes imperative. The entry strategy and learning strategy need to be clearly articulated, they would get an entry into an existing alliance in area where they have established core competence. But research indicates that firms that create a portfolio of alliances with complementary partners perform significantly better than firms which concentrate their alliances in fields in which a firm already has established core competencies. It is a tight rope walk one needs to practice.

Module 5: Value Capture with IPR

Patent litigation is the new growth industry. According to the American Intellectual Property Law Association, in cases where between $1 million and $25 million is at risk, a patent owner should expect to spend more than $2 million to litigate a patent through trial and appeal. Where more than $25 million is at risk, costs climb above $4 million. All this, to litigate a patent that an attorney likely wrote in a week or two, and that the U.S. Patent and Trademark Office probably spent less than 20 hours examining. Few challenges strike deeper fear in the heart of businesspeople today than the prospect of patent litigation. Patent owners fear staggering legal fees, and the risk that their key patents could be found invalid. Accused infringers fear, that their key products could be found infringing, shutting them down. Patent literacy is as important as management education or technical education. It has also become an integral part of firm strategy. One can expand to an unknown territory without knowing the local language or culture but certainly not with ignorance of that nation’s laws on IPR.

Module 6: Value Delivery thro Product Innovations

 Success of imitators (fast second) in grabbing market leadership in many product-markets required reengineering innovation strategy. From exclusive, all in-house efforts, product developments now encompass component level innovations of others (even competitors) with innovating firm focusing on integration, competitive advantage and delivery. Nothing illustrates it better than i-pod the icon of product innovation. Globalizing firms from emerging markets have mastered process innovations relatively easily but product innovation, a deliberate yet dicey effort, proves a challenge- the last mile in business leadership. Replication of Silicon Valley eco-system in emerging markets needs leadership vision, venture funds, advanced skill sets and a culture encouraging & rewarding creativity. Thousand flowers breed million weeds. Can emerging economies develop cost effective mechanisms to cope with this (perceived) wasteful effort?

Module 7: Value Delivery thro Organisational Innovations

Adoption of organizational innovations has proved to be very demanding, requiring CEO to lead from front. Unlike technological innovations these new practices embrace the entire work force and competitors ensure that goal posts are mobile. Change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result. Benchmarking is an important way to improve operational efficiency, but it is not a tool for strategic decision making. When competitors all try to play exactly the same game, declining margins are bound to follow. Indian software firms have not benchmarked and adopted global best practices; they generated their unique delivery model, now becoming template for many service industries. Studies have shown that significant productivity improvements can result from changing routines that were ingrained in previous technology, a legacy problem for developed markets. Can it be a first mover advantage for emerging MNCs?

Module 8: Timing it right with Technology Forecasting

Bell curve of product life cycle has not prepared firms to forecast free fall of product sales, increasingly common phenomena. Technology forecasting techniques pioneered as military games have come to corporate board room. Managers need tools to learn what a competitor will do, also known as foreknowledge, not what the competitor has done. Successful prediction conveys power but full scale foreknowledge is not available, the best of the breed has to settle for foresight. Forecasting flourished in the twentieth century because it attempted to provide investors, corporations and governments with tools for making decisions. Later, Critical Futures Studies (CFS) gave rise to ascendancy of scenario building. Forecasting was an attempt to assert control and a measure of certainty over an unknown future. Scenarios are an attempt to explore diversity within the forward view. Starting point is environment scanning; all of our scanning is undertaken through perceptual filters. It is all about filters, mindsets and world views. We tend to see what we expect to see, so any framework which helps to expand our perceptions will help us to become more attuned to more of the world out there.