Transcript Analysis of technology management in Mobile Mediagateway’s

Analysis of technology
management in front end
stage of innovation
process
Visa Friström
T-109.5410 Technology Management in the Telecommunications Industry
3.10.2006
Agenda
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Background
Objectives
Research approach
Case
Theory
Results
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Backround
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Thesis done for LMF Ericsson’s R&D department
Product Management has increasingly transformed responsibility
to System Management
LMF Ericsson’s R&D department’s System Management has
identified the importance of technology management and has
started to implement it consciously into M-MGw development
System Management assigned new technology manager
Technology manager started to identify and implement technology
management routines
The identified management area is called TM
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Objectives
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Analyze the current technology management model and identify
possible development issues and paths in context of newest
articles on technology management.
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Identify the most important articles concerning technology
management
How is technology management perceived in the management
literature and journals?
How does the current Ericsson’s model map in their context and
what is missing? What are the dimensions that SM’s technology
management should focus on?
Provide further guidelines for TM’s development
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Research approach
 Two different approaches
– TM in context of technology management frameworks
(greater focus)
 What dimensions are missing in TM?
 Mapping of technology management routines and
issues.
– TM in context of fuzzy front end models
 How does TM’s front end elements relate to front end
theories?
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Case
 Product: Mobile Mediagateway
– Node in mobile core network
– Bridge between different transmission technologies
 Environment
– Product management responsible for the commercial and
strategic aspect (mainly situated in Sweden) (WHAT /
WHEN)
 product strategy, roadmap etc.
– System management responsible for technical aspect –
implement what product management decides (HOW)
 basic operational R&D activities
– Technology Management (TM) is created inside SM.
 Problem:
– Product management does not really understand the
technical aspect -> bad decisions on roadmaps and other
 ->need for technology management
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Case
 The main object of TM was aimed to find, investigate
and suggest new technologies to be used in order to
enhance the profitability of the current product
 TM’s suggestions would serve as an input to Mobile
MediaGateway's technology roadmap discussion
– Roadmap managed by product management
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Case
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TM is made of technology manager and four different areas that it manages
All of the management areas’ activities are in Fuzzy Front End (pre-project
activities)
Chosen management areas
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Research
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Segmented from Ericsson’s general research
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Research Mediagateway’s possible future technologies
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Participates on standardization relevant to Mediagateway
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Enables TM to realize different possibilities that technology can offer to
Mediagateway
Prototyping
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Prototypes possible future features in mediagateway that are not currently
present in roadmap
Foresighting
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Mainly implements technology foresighting through Technical Solution Area
responsibles (TSA)
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TSA’s mission is to foresight specific technology areas relevant for
mediagateway
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There is one TSA for evey technical area
Preliminary study
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Quick studies on different technical subject
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Supports TM and Product Management on selecting technologies / product
features
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Theory
 What is technology management?
– Relative concept with various interpretations
– Generally considered as
 Union between business, science and technological
know-how
 Managing the innovation process by integrating
business and engineering thinking
– Definition by European Institute of Technology Management
(EITM)
 Technology management addresses the effective
identification, selection, acquisition, development,
exploitation and protection of technologies (product,
process and infrastructural) needed to maintain [and
grow] a market position and business performance in
accordance with the company’s objectives”.
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Theory
 Two important aspects in technology management
– importance of establishing and maintaining the linkages
between technological resources and company objectives
– technology management requires effective management
processes
 Technology management is concerned with how an
organization manages all its technical activities, not just
those which are confirmed to R&D department.
 Usually product management plays an important role in
technology management
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Theory
 Innovation process
– Concepts
 Invention vs. innovation
 Types of innovation
- Incremental innovation vs. radical innovation
- Incremental innovations cover ~90% of
innovation activities (Rothwell and Gardiner)
– Innovation process divided into three subgroups:
 Fuzzy Front End (FFE)
 New Product Development (NPD)
 Commercialization
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Theory
 Innovation process
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Theory
 Cost curve
– front end plays important role in innovation process due to
it’s great impact on rest of innovation process
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Theory
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Fuzzy Front End concept defines the activities that take place
before start of NPD project
It is mainly the area between when and idea and/or opportunity
are first considered and when new product development project
can be started
Have many names: pre-project activities, upfront activities,
opening phases, front end of innovation.
“Fuzzy” is used to describe the chaotic and unpredictable phases
prior any product development
Organizations excelling in Fuzzy Front End management are more
likely to win the innovation competition
Cooper and Kleinschmidt study: only 7% of total NPD money
spent in Fuzzy Front End.
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Theory
 Effort / budget spent on Front End activities
– Not enough according to experts
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Theory
 Stage-gate by Robert Cooper
Fuzzy Front End
/ Product
Concept
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Theory
 Fuzzy Front End divided into operative and strategic
level
(Poskela et al)
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Theory
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TM’s position in innovation process
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Theory
 Operative and strategic level integration mechanisms
(Poskela et al)
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Theory
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Removing Fuzziness from Front End (some ideas)
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Identify activities that are pre-project activities
Systemize and create management processes
 e.g. some gate approach such as stage-gate
 Level of control should depend on type of innovation
- incremental -> more control
- radical -> less control (more creativity)
Collaborative culture that enoguraes knowledge creating,
inovation and creativity
Systemized idea capture and handling
 e.g. idea bank
Early involvement of business champion
Integrate business thinking into research
Early customer involvement!
 Methods
- Voice of customer
- Camping out with customer
- Lead user method
- Rapid prototypes + workshops
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Background Theory
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Innovator’s dilemma
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How to prepare for future disruptive technologies?
 e.g. Technology Foresighting
Problem of dualism
“Weak signals”
 companies that exist in changing business
environments need to be attentive to “weak signals”
 When a new technology threat or opportunity appears
on the horizon the information of it is first very vague but
progressively evolves into more precise information.
 “weak signal” is “a factor for change hardly perceptible
at present, but which will constitute a strong trend in the
future
Technological
Substitution 3
Technological
Discontinuity
Technological
Substitution 2
Technological
Discontinuity
Technological
Discontinuity
VARIATION
Era of
Era of
Incremental
Ferment (1)
Change (1)
SELECTION
VARIATION
Era of
Era of
Incremental
Ferment (2)
Change (2)
SELECTION
VARIATION
Era of
Era of
Incremental
Ferment (3)
Change (3)
SELECTION
Dominant
Design (3)
Dominant
Design (2)
Dominant
Design (1)
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Theory – Technology management
 Three levels of technology management
– Corporate
 e.g. How many R&D centers? Hw to gain access to
technology?
– Business (strategic)
 e.g R&D portfolio management
– Operational
 e.g. project selection and evaluation
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Theory – Technology
management
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Gregory’s model for technology management (ISAEP)
Served as basis for many technology management frameworks and definitions
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Identification
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identify technologies that are not currently part of technology base of company but that
could have an impact on current and future business.
Selection
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selection is about choosing between various different technologies those that should be
supported by the organization (e.g. by using portfolio methods, expert judgments, pilot
studies etc.).
Acquisition
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acquisition is concerned about access to needed technologies and their integration into the
organization. This includes activities such as R&D, licensing, joint venture and
organizational learning
Exploitation
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exploitation is about systematic conversion of technologies into marketable product or
realization of their value though sale, license or joint venture
Protection
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protection is about recognizing and protecting the commercial advantage which control of
key technologies can offer.
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Theory – Technology management
 R. Phaal’s technology management framework
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Theory – Technology
management
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Evolved from Gregrory’s model
Indentified three business processes (Strategy, Innovation, and Operations) where
the ISAEP processes work
Aim of technology management according to the framework
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Manage the balance betwen market pull and technlogy push
Manage the relation between technical and commercial perspective
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especially the communication between them
Integration on technology management processes (ISAEP) and core business
processes
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The aim of efficient technology management is to ensure that technological
issues are integrated appropriately into the business processes.
The importance of establishing and maintaining the linkages between technological
resources and company objectives and that technology management requires
effective management processes
R. Phaal identifies technology roadmapping as one the most important tools for
technology management.
– Bridges the gap between technical and commercial aspect
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Theory – Technology management
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Roadmap - efficient tool for technology management
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Betters communication between commercial and technical sides
Contributes to integration of business and technology and to the
definition of technology strategy
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Theory – Technology management
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Levin et al’ study on technology management routines
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Technology managers in various companies identified the following routines
as vital for technology management
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Theory – Technology management
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24 Critical Technology Management Issues by Scott et al (2000)
1.Strategic planning for technology products
2.New Product Project Selection
3.Organizational Learning about technology
4.Technology Core Competencies
5.Cycle Time Reduction
6.Creating a Conducive Culture
7.Coordination and Management of NPD teams
8.Technology Trends and Paradigm Shifts
9.Involvement of Marketing Groups
13.Organization Structure for R&D
14.Alliances/Partnerships Between Technology Companies
15.Within-Company Technology Diffusion and Transfer
16.Using High-Tech for Competitive Advantage
17.Involvement of Manufacturing in NPD
18.Globalization of Product Development Processes
19.Resource Allocations to High-Tech Activities
20.Establishing a “Technology Vision”
21.Productivity of Product Development Activities
22.Rewarding and Educating Technical Personnel’
23.Project Continuance/Discontinuance
24.Oversight of High-Tech Activities
10Customer Supplier Involvement
11.Senior Managers’ Involvement in Technology
12.Soft Skills for Technical Personnel
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Results - conclusions
Strengts in TM
– Acknowledged importance of technology management
– Identified importance of front end stage in direction of
technology development
– TM’s objective to find, study and suggest technologies for
Mobile Mediagateway’s roadmap discussion is the same
idealogy as in ISAEP and FFE processes.
– Use of technology roadmapping as long term planning
– Chosen elements and the objective of TM is very much
managing technology from technical perspective, but not
necessary technology management as perceived in
literature.
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Results - conclusions
Weaknesses in TM (1/2)
– TM has misunderstood the concept of technology
management to some extent –business/commercial aspect
lacking
– Integration of strategic level and operative level of Fuzzy
Front End not working
 Communication between Product management and
TM not effective..TM unaware of all product
management’s activities
 Product management (commercial aspect) not
enough capable in technical matters and thereby is
unable make balanced decisions
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Results - conclusions
Weaknesses in TM (2/2)
– Technology management routines and issues are present in
M-MGw’s innovation process but not identified and
managed as whole
– Technology management importance as managing the
balance between technology push and market pull, and
integrating and managing ISAEP processes not
acknowledged and understood
– Fuzzy Front End really Fuzzy – no gate management or
other methods
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Results - conclusion
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Future development direction of TM is suggested to be
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implementing the full aspect of technology management as integrator of
commercial and technological sides
and serve through TM’s technological expertise, and knowledge on
commercial aspect to guide the factors that control Mediagateway’s eventual
direction.
This happens by
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Creating better interfaces and relations with
 Product Management and other commercially valid units inside
Ericsson
 Market (customers) .
Managing technology roadmap to input product and technology
direction
Creating technology strategy linked to business strategy
Identify and mangage activities in ISAEP processes
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Results -suggestions
 Fuzzy front-end
– Start applying a systemized and controlled approach to
front end since product development is about incremental
innovation
– Direct market involvement in the technical side
 Early prototyping with customers
- Lead user method considered
 Direct contact to sales and marketing unit
– Include business thinking in research and manage the level
of control
– Study whether Fuzzy Front End would need more effort and
money
 Currently little over 7% of budget goes to Fuzzy
Front End
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Results - suggestions
 Technology management
– Identify and manage means of communication between
commercial and technical sides
– Identify market pull in order to manage the balance
between market pull and technology push
– Identify technology management activities and manage
them in ISAEP processes
– Involvement and input to project selection (last phase
before NPD)
 Centrepiece of technology management
– Create own technology roadmap for long term planning
– Include foresighting in long term roadmapping (TSA)
– Create technology strategy and link it to business
strategy
– Understand product strategy (e.g. What is platform’s
defining technology)
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Questions?
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Results -suggestions
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Lead user method (Von Hippel)
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Laying the foundation by identifying the target market and
the type and level of innovations desired by key stakeholders
within the company
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Determining technology trends by inquiring from the experts
from the field that they are exploring
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Identifying lead users by networking process to identify and
learn from users at the leading edge of the target market and
related markets.
Group member collect information that helps them to identify
especially promising innovation and ideas that might contribute to
the development of breakthrough products. Teams already
become forming preliminary product ideas and to assess the
business potential of theses concepts.
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Developing the breakthroughs by developing the preliminary
concepts toward completion. The team hosts a workshop with
several lead users, a half-dozen in-house marketing and technical
people, and the lead user team itself.
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