1. INNOVATION PLANNING
STRATEGIC MANAGEMENT OF TECHNOLOGY
(SHAD4023)
SEMESTER 1 2019-2020
PREPARE FOR:
ASSOCIATE PROFESSOR DR ASLAN AMAT SENIN
PREPARE BY:
AZMAN HASHIM INTERNATIONAL BUSINESS SCHOOL
UNIVERSITI TEKNOLOGI MALAYSIA
ALEEYA BT ROSLEE A16HA0008
ASYSYUARAH BT TUAH A17HA0016
NURHIMA BT HASAN A17HA0196
VISHNOVARTHAN AL PULAINTHRAN A17HA0282
ZULPADHLI BIN SALUDIN A17HA0296

2. PLAN N IN G
PREPARE FOR:
Ass. PROF DR ASLAN aMat
senin
INNOVATION
SHAD 4023

3. Issue
01
Present by ALEEYA
Pros and Cons of Internal Innovation
02
Present by NURHIMA HASSAN
Product Innovation & Process Innovation
03
Present by VISHNOVARTHAN
Basic Step In The Planning Process For Innovation
04
Present by ZULPADHLI
Technology Stages & Their Possibilities For Innovation
05
Present by ASYSYUARAH TUAH
Development Of A Climate For Internal Innovation

4. Pros and Cons of Internal Innovation

5. 1. Greater understanding of the
technology produced and how to
apply it.
2. Greater control of the process
and the outcomes.
3. Greater ability to potentially
develop the next generation of
technology.
4. Greater profit potential as a first
mover.
1. Greater time required for internal
development strategy.
2. Greater risk of failure to develop
the right product at the right time.
3. Greater competitions in releasing
the on-demand products.
Encouraging
Factors
Discouraging
Factors
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

6. Product Innovation & Process Innovation

7. INNOVATION
PRODUCT
INNOVATION
Basic Research:
Pure R&D
Applied Research:
New Product
Development
System Integration:
Product
Improvement/Market
Expansion
PROCESS
INNOVATION
Restructuring
Reengineering
TYPES OF
INNOVATION
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

8. Figure 3.1:
Types of
Research
Efforts
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

9. Basic Research : Pure R&D
 Involves the creation of new knowledge.
 Nature : Theoretical
 This knowledge can be new to the firm, or it can be an innovation
that was unknown before the effort.
 Risky, but it has the potential to provide great reward / opportunity.
 Often conducted by : Academic Institution; Government Agencies &
Specialized research.
 Ex : Laser physics; speed physics; atom chemistry; ray physics etc.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

10. Applied Research : New Product Development
 Applied Research utilizes the new knowledge developed by the Basic
Research to create new products.
 Nature : Practical
 This New Product Development lead towards the firm changing its strategic
position in the industry & gaining some measure of competitive advantage.
 Purpose : Add value to the firms & its customers in the marketplace.
 Risk : Applied Research < Basic Research
 Probability of success & high reward = Moderate
 Ex : Laser printers; Compact Discs; laser knives used in surgery; Barcode
Scanner.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

11. Sources:
• http://www.ancientpages.com/2017/01/05/on-this-day-in-history-discovery-of-x-rays-by-wilhelm-roentgen-reported-on-jan-5-1896//
• https://www.pinterest.com/pin/521502831821019783/
X-Ray produced from Cathode Ray type Discovered by
Wilhelm Röntgen in the late 1800
The Wright Brother applied Newton First
Rule when doing the aircraft experiment
at 1903

12. Who Discovered Fission?
 Almost 70 years ago, in 1938, Enrico Fermi
accidentally discovered nuclear fission when
he was experimenting.
 During his experimenting, he found that
when he bombarded uranium with a
neutron, the uranium nucleus split into
two roughly equal portions.
 This was the first nuclear fission and a huge
step forward in nuclear science.
Sources:
• https://slideplayer.com/slide/10621805/
• https://pixels.com/featured/enrico-fermi-sheila-terry.html

13. Systems Integration:
Product Improvement / Market Expansion
 Systems Integration is aimed at supporting existing business improvements in
establish products or opening new markets with an existing products.
 Risk = Low or Negative
 Reward =High
 Many firms called Systems Integration ‘Tweaking’
 Reason : It involves adjusting the ways the firm organizes its existing knowledge
to increase its leverage.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

14. Sources:
• https://wiki.metropolia.fi/display/Physics/Laser+technology%2C+definition%2C+applications%2C+and+challenges
• https://tmc.gov.in/m_events/Upload/10092018_6/5th%20Laser%20Course%202018.pdf
Laser from Physic Laser knives for surgery Better Laser knives for surgery
Cathode Ray physics X-Ray Better X-Ray that can
see Soft Tissue

15. Sources:
• http://hyperphysics.phy-astr.gsu.edu/hbase/Newt.html
• https://i-love-png.com/580b585b2edbce24c47b2d0b.html
• https://www.koreanair.com/global/en/traveling/aircraft-info.html
Newton’s Law
Applied to Aircraft
Better Airplane

16. PROCESS INNOVATION
To increase the efficiencies / the effectiveness of an
organization.
PURPOSE :
Because changes in processes require the
organization & individuals to adapt to the innovations
& thus can lead to opposition in the organization.
WHY?
Process innovation helps to improve the output-to-
input ratio of the firms.
EFFECT :
Restructuring and Reengineering
EFFORTS :
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

17. Restructuring
• Concerns to shareholder Well - being rather than emplo
yee well-being
• Other names: Downsizing, rightsizing and Delayering.
• Involves reducing the sites of the firm in terms of No. of
employees, No. of divisions or units & No. of hierarchical
levels in the firm’s organizational structure.
• This reduction in size intended to improve both efficienci
es & effectiveness.
PROCESS
INNOVATION
Reengineering
• Concerns more with employee & customer well-being than s
hareholder well-being.
• Other names: Process Management and Process Redesign.
• Involves reconfiguring / redesigning work, jobs, processes for
the purpose of improving cost, quantity, service & speed.
• The focus of reengineering is changing the way work is carri
ed out.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

18. Restructuring
Major reason restructuring is needed:
1) Information is not reaching the proper people to make
timely decisions.
- This Leads to slow decision making.
2) Missed opportunities or unexpected threats appearing
3) Disruption in the environment that has stressed the firm
PROCESS
INNOVATION
Reengineering
According to Bennis & Mische, 5 specific goals of Reengineering:
1) Increasing productivity
2) Optimizing value to shareholders.
3) Achieving quantum results.
4) Consolidating functions.
5) Eliminating unnecessary levels & work
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

19. Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

20. Sources:
• https://www.stickpng.com/img/icons-logos-emojis/iconic-brands/malaysia-airlines-logo

21. Sources:
• https://www.stickpng.com/img/icons-logos-emojis/iconic-brands/malaysia-airlines-logo
• https://smartn.co.uk/product/nest-learning-thermostat-3rd-generation/

23. Basic Step In The Planning Process
For Innovation

24. BASIC STEPS
SPECIFIC
TACTICS
SET
STRATEGY
GOALS
&OBJECTIVE
MISSIONVISION
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

25. APPLICATION
IDENTIFICATION
CRITICAL
IMPLICATION
STRUCTURING
CONNECTING
PROMOTING
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

26. FACTORS THAT AID
CREATIVITY
ORGANIZATION
WIDE ISSUE
POLITICAL ISSUE
1.Adventuring
2.Confronting
3.Portfolio Of Skills
1.Communication
2.Rewards System
3.Organizational
Assumptions
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

27. Technology Stages & Their Possibilities
For Innovation

28. TECHNOLOGYSTAGES & PLANNING
• For the firm, the
natural progression
of the technology
along its life cycle
requires
adjustments in
planning during each
stage.
01
• Each of the four
stages is described
next as well as how the
planning for innovative
activities differs at each
stage.
03
• Manager should be
aware of such stages
and have planning
processes consistent
with the life cycle of
the technology and
the major product
02
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

29. The new scientific trends, breakthroughs, and
developments must be closely monitored.
At start-up, external groups are very important.
The firm is looking for opportunities in the
environment, and contacts with external groups
are critical to identify those opportunities and
understand how to take advantage of them.
The Importance
Must educate both potential investors and potential
users of their products about the promise in the
technology. The strategic actions for this stage focus on
R&D activities and new product development.
Educate potential investors and potential users
STAR UP
1
.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

30. Example
You’re still building it, and a Beta version is ready
to be tested by early adopters. This is also known
as the “bleeding edge”, it’s when revenues are low
and you’re pouring money into its development –
most likely out of your own pocket.
What to do: Get early adopters on board and get
as much feedback as possible. Hone out all the
bugs and get ready to ship it.
Sources:
• https://www.shutterstock.com/image-photo/hand-turning-process-knob-concept-software-437225251

31. Many of the start-ups either fail or are purchased
by other firms.
• The firm focuses internally to ensure that its
structures and processes are consistent with its
growth.
• The firm s emphasis in innovation planning shifts to
product improvement or adjustment during this
stage.
• This phase of technology requires that the firm
improve its product and its production.
• The firm is larger and has a greater concern for
efficiency.
• Process innovation becomes more important as the firm
positions itself for the mature stage of the technology
growth
2
.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

32. Planning process, these two
domains gain even greater
importance.
The flow of organizational
communication is focused
more internally in maturity
than in an early-stage
industry.
Maturity stage, the
organizational emphasis
moves even more to an
efficiency focus. Thus,
process innovation planning
becomes more important.
Take smartphones for example;
every year Apple, Samsung and
HTC refresh their flagship devices
to attract more sales and maintain
revenue levels.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

33. 04
0302
01
Focus becomes avoiding
losses
01
02 Looking for synergies to
support continuation of the
technology
03 During the decline stage, the
internal structures and
processes of the firm
become even more
important.
4.
Aging or Decline
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

34. Example:
The Audio Industry
Let’s use the audio industry as an example.
• At start, at the ferment stage, there was the Cassette
tape which was invented by Phillips.
• Then, at the Takeoff phase, Sony has invented the
Walkman that had the ability to answer the customers’
demand of listening to their Cassette outside. As a
result of Sony’s success, the market have arrived at its
maturity as a number of competitors manufactured
similar devices (Phillips, Sony, TDK, Maxwell, etc.)
• The Discontinuity phase appeared when Sony and
Phillips have developed the compact disk and by
doing so, disrupted the market and started a new S-
Curve.

36. Development Of A Climate
For Internal Innovation

37. Intro
Factors:
• Rapid technological ▲
• ↑ global competition
• Economic uncertainty
Company need to be able:
• to generate new ideas to
fuel growth.
• to increase both the of the
innovation process.
Key ↑ Innovation E&E
• Creating a climate of
creativity,
• or a place where new
ideas are invented &
• applicable innovation
results.
Research & Experience
• organizational climate is
an effective predictor of
creative performance &
further,
• that creative people are
especially influenced by
climate.
Source: By DANIEL RUSSELL https://leaderonomics.com/leadership/hard-talk/10-influencing-factors-to-creating-a-climate-for-innovation

38. SOURCE: https://www.youtube.com/watch?v=CLlX9yJZosk&t=6s
VIDEO
1

39. • Other firms have tried similar programs and
have not been successful with their
innovation strategy.
• Failed because they did not have a
climate that supports innovation.
• If the climate is not suitable, the initial efforts
to plan for the innovation will not succeed
nor will the later efforts at
implementation.
• Climate for planning is more likely to
develop if the manager keeps in mind
several myths about innovation that are
widely held but not true.
• These myths need to be recognized
initially if the climate for innovation is to be
established.
Development Climate
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

40. Figure 3.6:
Myths about Innovation
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)
Ideas are the key to innovation. Innovation has a single critical moment. Only big ideas are useful to focus on for innovation
1 2 3

41. Ideas
key to innovation
Idea Are
Important
reality, many brilliant
ideas that are never
discussed or even
presented.
Past
Experience &
Expectations
may lead managers to
reject a good idea that
is presented for some
basic reason
1
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

42. in the organization that
encourages the presentation
of new ideas & potential
innovations must be
encouraged if planning for
innovation is to succeed.
Climate
important in the planning
process because it is at this
stage that new approaches are
typically discussed & integrated
into the organization s efforts.
This climate is particularly
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

43. The eureka moment with big product
discovery is limited.
Instead, innovation & the planning for
innovation are a long-term process that
help the organization maintain focus while
changing & adapting, as necessary.
innovationhas a
single critical moment
2
Image credit: Shutterstock

44. VIDEO
2
VIDEO
3

45. The planning process is not a one-time effort
that produces all the answers.
Instead, it is a long process where plans
are made, changed, and then adapted
again.
Planning must be an active, living process that
incorporates many views and then makes
adjustments.
Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

46. CASE STUDY

47. Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

48. Source: The Management of Technology and Innovation A Strategic Approach (2nd Edition)

49. Thank You
ANY QUESTION?