tools for assessing technical capabilities within firms:
DESCRIPTION
TRANSCRIPT
Tools for A
ssessing Technical
Capabilities w
ithin Firm
s:E
xamples from
Germ
an and Sw
iss Corporations
Presentation at the O
EC
D W
orkshop on"T
he Developm
ent of Practical T
ools forIm
proving the Innovation Perform
anceof F
irms"
OE
CD
, Paris, June 30, 1997
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
Prof. D
r. Alexander G
erybadzeC
enter for International Managem
ent and InnovationU
niversity of Hohenheim
D-70599 S
tuttgartT
el. 0
04
9-7
11
-45
9 3
24
9F
ax 0
04
9-7
11
-45
9 3
44
6E
-mail agerybad@
uni-hohenheim.de
•M
aster Curriculum
on International Managem
ent with F
ocus on- International M
anagement of T
echnology
- Com
petence-based Strategy in T
ransnational Corporations
•R
esearch Projects and D
atabases- International R
&D
and Innovation Study (Interis-S
tudy)- B
enchmarking M
anagement of T
echnology at the Corporate Level (S
MT
C)
- Distributed C
ompetence M
etric (DC
M)
- Core C
ompetence A
ssessment (C
CA
)
•C
lose Collaboration w
ith Corporations in G
erman-speaking C
ountries/D
evelopment and Im
plementation of S
trategic Managem
ent of Technology
••R
efinement of C
oncepts and Tools for "M
anaging Com
petences Across
Institutional Boundaries"
- Distributed C
ompetences w
ithin Firm
s (Com
petence-based Team
s)- D
istributed Com
petences across Firm
s (Com
petence-Alliances)
Introduction to the Center for International
Managem
ent and Innovation
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 2
Technological C
apabilities in Multi-T
echnologyand M
ulti-Product F
irms
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 3
R&
DP
rojectsT
echnologiesP
roductB
usinessU
nit/D
ivision
Markets/
Custom
erG
roups
Project
Ideas
Technology S
trategyP
rod
uct S
trate
gy
Business S
trategy
-Idea G
eneration-P
roject S
election
Pro
ject
Allocation
-Many/few
Pro
jects
-Radical vs.
incremental
Pro
jects
-Project P
ort- folio
Technology
Program
Alloc.
-Many/few
T
echnologies-S
trategic Im-
po
rtan
ce o
f T.
-Technology
Po
rtfolio
an
d P
rogram
Product P
laning-M
any/few P
roducts-P
roduct Focus
-Product A
rchi- tecture and D
esign-P
roduct Port-
folio
Organisational
Decisions
-Form
ation of B
us. U
nits
-Reportling
Lines-Interdepart- m
ental Com
- m
unication
Decisions for
Selection of
Particular
Markets and
Custom
erG
roups/Mar-
keting andS
ervice Stra-
tegy
Technological C
ompetences: T
he Ability to D
eploy Com
plexB
undles of Resources in a D
irected, Value-E
nhancing Mode
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 4
Core F
ocus for M
anagement of T
echnology
Com
plementary
Com
petences in:
Production M
arketing/
Product
Design
Business S
trategies/Strategic
Planning/M
arketingIdea G
eneration Process/C
reativity/N
ew P
roject Idenfication
R&
DP
rojectsT
echnologiesP
roductB
usinessU
nit/D
ivision
Markets/
Custom
erG
roups
Project
Ideas
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 5
Assessing T
echnological Capabilities on the B
asis of theirS
trategic Fit w
ith Custom
er Needs/K
ey Product A
ttributes
Technologie
sR
&D
Projects
Custom
erN
eeds andR
equirements
Configuration
of Product and S
er-vice A
ttributes
Key S
uccess Factors/
Key P
roduct Attributes
External S
ystem of
Dem
and Articulation
Step 3:
Evaluation of R
&D
and Technological
Capabilities
Step 2:
Product D
esign/A
nalysis of Com
pe-tence and S
ervice C
onfiguration
Step 1:
Need A
ssessment/
Analysis of P
otentialP
roblem S
olution andP
otential for Value
Creation
External S
ystem of
R&
D and Innovation
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 6
Technologies, B
usiness Unit S
trategy and Corporate
Strategy m
ust be Closely Interconnected
Corporate
Strategy (C
S)
and Vision
Analysis of K
eyS
uccess Factors and
Business P
rocesses (AS
)
Analysis of
Technological
Capabilities (A
T)
Business S
trategy (B
S)
Technology
Strategy (T
S)
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 7
Procedure for A
ssessing Technological C
ompetencies B
asedon C
ustomer R
equirements and K
ey Success F
actors
Evaluation of T
echnologyP
osition and Com
petitive Position
Generic T
echnologyS
trategy
Segm
entation, Custom
er Require-
ments and K
ey Success F
actors
Technology P
rogram Im
plemen-
tation (Build-or-B
uy Decisions etc.)
Analysis of T
echnologicalC
apabilities
CS
BS
AS
TS
AT
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 8
Technology U
nbundling and Com
petence Decom
position/T
he Case of A
utomobiles and A
utomotive S
upply
Autom
otiveS
ystemS
ubsystemC
omponent/M
oduleT
echnology
Passenger
Car
Body
Engine
Drive-
train
Electronics
Other
Transm
ission
Clutch
Differential
Driveshaft
Wheel-
Bearing
Metal
Materials
Surface
Technology
LaserT
echnology
CIM
Com
positeM
aterials
Value-A
ddedand R
ent thatcan be A
ppro-priated by a F
irmusing this parti-cular
Technology
High
Low
Pacing
Technologies
Key
Technologies
Base
Technologies
Diffusion of this P
articular Technology
within R
elevant Industry Group
Technology A
ppliedby E
arly Innovatorson a T
rial Basis
Em
bryonicT
echnologies
Pre-C
ompetitive
Basic R
esearchT
echnology isK
ey for Com
pe-titive S
uccess
Basis of C
ompeti-
tion in Industry, W
idely used, No
competitive
Differentiation
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 9
Analysis of K
ey, Pacing and B
ase Technologies
Pre-P
aradimatic P
haseP
aradigmatic P
hase
Custom
er Require-
ments 1997
Custom
er Requirem
ents 2000 ("Tom
orrow")
Custom
er Requirem
ents 2001-2005 ("Future")
Key S
uccessF
actors
Key P
erformance
Characteristics
KS
FK
SF
KS
FK
SF
..
*******
********
TT
TT
TT
T
Technologies
1 2
34
56
N
**
**********
********
**
**
Key T
echnologies
1234
KP
CK
PC
KP
CK
PC
.
1234
Identification of Key, P
acing and Base
Technologies
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
0
*** Very strong Im
pact of T
echnology on KS
F/K
PC
** Strong Im
pact* S
ome Im
pact
Key-T
echnologies• A
pplication Engineering
• Test and M
easurement
• CIM
• Flexible M
anfacturing• T
ool Technology
Pacing-T
echnologies• Laser T
echnology• C
omposite M
aterials• Integration W
heelbearingB
ase Technologies
• Integration Differential
• Casting T
echnology• S
urface Technology
• Wheelbearing T
echnology
strongm
ediumw
eakC
CC
C1
23
K. . .
(3-5)
(2-4)
(1-3)
542444333454
344244333424
544342243445
334232241425
433231121414
Technology P
osition for
- Key T
echnologies- P
acing Technologies
- Base T
echnologies
Overall S
core for T
echnological Capabilities
Evaluation of a F
irm's T
echnology Position and its P
rofile ofT
echnological Capabilities
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
1
Technologies
Weighting
Factor
Techological
Capability of
our Com
pany
Technological C
apabilities of Major
Com
petitorsR
elative Technology P
osition
Technology P
osition
strongm
ediumw
eak
strong
medium
weak
Technological
LeadershipT
echnologicalP
resenceA
kquisition
Technological
Joint Venture
Technological
Rationalisation
Technological
Draw
-back
Technological
Rationalisation
Technological
Niche
Com
petitiveP
osition
Technology S
trategies must be B
ased on the Evaluation of a C
ompany's
Technology and C
ompetitive P
osition
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
2
Type of
Technolgy
Technology P
osition
Em
bryonicT
echnologies(E
T)
weak
medium
strong
Pacing
Technologies
(PT
)
Base
Technologies
(BT
)
Key
Technologies
(KT
)
12
34
5
T16
T11
T16
T17
T18
T7
T8
T9
T10
T1
T6
T5 T
2 T
4
T3
T12
T15
T13
T14
Technological C
apabilities Differentiated by
Strategic T
ypes of Technologies
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
3
Type of
Technolgy
Technology P
osition
Em
bryonicT
echnologies(E
T)
weak
medium
strong
Pacing
Technologies
(PT
)
Base
Technologies
(BT
)
Key
Technologies
(KT
)
12
34
5
10-20
50-70
10-20
10
Size represents percentage of R
&D
Budget A
llocated to this T
ype
of T
ech
no
log
y30
R&
D B
udget Breakdow
n in Selected Large
Germ
an Corporations
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
4
Type of
Technolgy
Technology P
osition
Em
bryonicT
echnologies(E
T)
weak
medium
strong
Pacing
Technologies
(PT
)
Base
Technologies
(BT
)
Key
Technologies
(KT
)
12
34
5
Shaded area represents ideal type of com
petence distribution. Weaknesses
(left of shaded zone) and Overshooting/"G
old-plating" (right of shaded zone sh
ou
ld b
e o
verco
me
10
30
40
20
Technology Leadership S
trategy only Feasible for S
trong andB
alanced Capability P
rofiles
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
5
Generic
Technology-S
trategy
Com
petitiveP
ositionT
echnologyP
osition
Type of
Technology
Assessm
ent ofT
echnologicalC
apabilities
Generic O
ptions forB
uilding and LeveragingC
ompetences
Types of T
echnologicalB
uild-or-Buy/K
eep-or-S
ell Decisions
Relative S
trenghtsR
elated to thisC
ompetence
Strategic
Importance of
Com
petence
Technological B
uild-or-Buy and K
eep-or-Sell S
trategies to be De-
rived on Basis of T
echnology Strategy and C
ompetence P
rofile
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
6
Build or
Buy?
Keep or
Sell?
Strategic
Importance
of Technological
Com
petence
Relative S
trength of a Unit related to a
Particular T
echnological Com
petence
High
weak
strong
Low
Sourcing-in of E
xternalT
echnologicalC
apabilities
Technological C
oope-ration or Licensicy of
Technological K
now-how
(sp
ecific F
orm
de
pe
nd
en
to
n T
ech
no
log
y S
trate
gy)
Strong In-house
R&
D and C
ompetence
Leveraging (Priorities and
Level of Com
petence de-p
en
de
nt o
n T
ech
no
log
yS
trate
gy)
Acquisition of
Technological C
apabilities/B
uild-up of Com
petence Inhouse R
equired (D
ep
en
din
g o
n T
ech
no
-lo
gy S
trate
gy)
Generic B
uild-or-Buy and K
eep-or-Sell-S
trategies
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
7
Privileged
Product P
osition C
om
pa
ny A
Un
iqu
e T
ech
no
- logical C
apabilitiesC
om
pa
ny A
Privileged
Product P
osition C
om
pa
ny B
Un
iqu
e T
ech
no
-logical C
apabilities C
om
pa
ny B
Technological C
ooperation of C
ompanies A
and B
Stro
ng
A
ccess to Lead M
arke
t
Weak
Position
in L
ea
dM
arke
t
Com
petence Alliances and C
onsortia Dynam
ics/T
he Case of M
edical Implants
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
8
Product
Architectur
Com
pany A
Technological
Capabilities
Com
pany AC
eramics
Poly-
ethylene
Com
po-sites
Shaft
Hipjoint
Implant
Aceta-
bulumC
oxae
Cortex
Caput
Metal-
Alloys
Casting
Forging
Sintering
Technological C
apabilities' Profile in M
edial Implants - P
artnershipA
rrangement betw
een Com
pany A and B
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 1
9
Product-
Architecture
Com
pany B
Technological
Capabilities
Com
pany B
Poly-
ethylen
Com
po-sites
Shaft
Hipjoint
Implant
Aceta-
bulumC
oxae
Cortex
Caput
Metal-
Alloys
Surface
Techno-logy
Pow
derM
etall-urgy
Sintering
Ceram
ics
•W
ell-proven Tools have been D
eveloped and Implem
ented for- P
rofiling Technological C
apabilities for Vertical S
upplier-User R
elationships- D
istributed Com
petences within S
trategic Alliances
- Distributed C
ompetences for U
nits/Locations within F
irms
•S
imilar C
oncepts can be Applied for R
esearch Centers, U
niversities andT
echnology Policy. P
roblems:
- Reform
ulation of "Custom
er" Concept
- Multi-C
onstituencies- N
o clear-cut Strategies D
efined
•M
ost Existing M
ethods for Measuring Innovation P
erformance are R
esearch-D
riven and Input-Oriented
•C
ritical Need A
ssessment and "H
ouse-of-Quality"/S
MT
Concepts to be
Developed for "B
asic Research"
Can Innovation R
esearch and R&
D P
olicy Learnfrom
Technology M
anagement w
ithin Firm
s?
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 2
0
International Managem
ent & Innovation
PR
ÄS
97
10
.PP
T P
ag
e 5
Technological C
apabilities and Com
petenceB
oundaries of the FirmK
ompetenzen und K
ern-Leistungsbereicheder U
nternehmung (Integration)
Auß
erhalb des schraffierten Bereichs:
Kom
petenzen und Leistungsbereiche auß
erhalb der Unternehm
ung (Kooperation bzw
. Zukauf)
R&
DP
rojectsT
echnologiesP
roductB
usinessU
nit/D
ivision
Markets/
Custom
erG
roups
Project
Ideas