Seminar 2 S208.pptVIP

Seminar 2Technology Strategy and Core Competence The importance of technology Internal/Task and General Environment Analysis Distinctive Competence The Value Chain Complementary Assets Continuum of Resources Sustainability What is Technology? Technology is a resource- just like human resources, financial resources Basic business function Need to develop technology strategy Serves as a basis for fundamental business strategy decisions Technology helps to answer the following questions Which distinctive technological competencies and capabilities are necessary to establish and maintain competitive advantage? What should be the investment level in technology development? How should technology and innovation be organised and managed? Resource-based View Resource-Based View – how the firm can secure the factors needed to create the core competencies and capabilities that form the basis for establishing and sustaining competitive advantage. Strategy asks the question “How do competencies and capabilities help create and sustain competitive advantage?” Connecting Technology and Strategy Different views in terms how technologically competent General Managers should be GMs need not have background in science or engineering They need to invest significant effort in learning to understand the technologies that are important to their business Identify sources of technical advice They must be able to frame the key strategic questions in relation to technology Meaning and Role of Technology Technological change has been a major driving force in shaping the way we live Technology is a major factor in gaining competitive advantage It can create whole new industries and dramatically alter the landscape in existing industries The development and innovative use of technology can give a firm DISTINCTIVE COMPETENCE that is difficult to match Meaning and Role of Technology Thus technology takes many forms, beginning with ideas, knowledge, and experience and then utilizing them to