The Neglect of Technology Management

The economic and industrial problems of the past ten years have raised serious questions about the way managers are trained. Critics have suggested that business schools should do a better job in such areas as manufacturing management, ethics, human resource management, and long term financial analysis. John Crisp argues that in a competitive world, the effective management of technological innovation is a key activity. From his perspective , managers of industrial enterprises in Australia, and elsewhere, have a legacy of attitudes, sensitivities, and techniques which leaves them ill-equipped to deal with the new competition. His proposals for improving the education of managers are provocative.     

Developing a strategic marketing orientation in a large industrial firm

This article outlines the approach one firm, Parker Hannifin, has taken during the past three years to begin the development of a marketing/strategic planning orientation throughout the 80 plus business units of the corporation.     

Wizards and Champions: The Kingdom of New Venture Management

We have learned recently that the stories of King Arthur and his Round Table may be more fact than fable. There is certainly more fact than fable in the story told here by Irving Calish and Donald Gamache. They deal with the realities of managing new ventures.     

Generalizing industrial buying: A longitudinal study

This paper expands and updates a major survey conducted in 1970 by Scientific American, Inc. Both surveys were designed to measure the influence of key corporate groups or departments on the purchasing decision. Despite major differences in the two samples, there was very good agreement between the two surveys. All the Kendall's rank correlation coefficients were significant at the 0.05 level. The purchasing department continues to play a key role in the purchase of materials, component parts, and equipment, especially when it comes to taking advantage of new price differentials, surveying available makes, and choosing suppliers. The applications of the results are explored in two short cases.     

Similarities in industrial procurement across four countries

This article reports on a cross-sectional, longitudinal, and comparative study of industrial buyer behavior. The study points to clear similarities in industrial purchasing between buyers in two industries in four countries. It also shows similarities in results using the same instrument taken in studies several years apart and points to generalizations about the involvement of different departments in the purchase of a variety of product types in different international markets.     

Forecasting Market Size and Market Growth Rates for New Products

How many times is a forecast of a technological development correct? According to many experienced managers, it almost never is. Then what good is a forecast? A forecast helps make important innovation decisions, according to Brian C. Twiss. He argues that precision in forecasting a technological development is seldom needed for purposes of long-term planning and that any innovation so marginal that small errors in forecasting will make a big difference should not be considered anyway. Twiss suggests that technology forecasting can be of real value once it is accepted that it is essentially concerned with modeling human behavior. This is the unexpected viewpoint that Twiss presents in this article. He explains how to develop and how to use a technology forecast in long-range planning.     

Reaffirming the management ethic in industrial firms

These then are the ground rules underlying what I call “the manegement ethic.”They are based on common sense, logic, and a sense of fair play—but then, that is quite simply what good management is all about. There is nothing original about these ideas; nor, as can be seen from the following quotation, is there anything new about them.We trained hard—but it seemed that every time we were beginning to form up into teams, we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing. And what a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency and demoralization.     

Competitor analysis: Some practical approaches

Analysis of the intentions and capabilities of key competitors is an essential component of effective business strategy. This article places major emphasis on the often neglected area of competitive cost analysis. An overview of secondary and primary sources, including competitors themselves, is provided. Case examples illustrate the use of these sources in analyzing key strategic cost differentials between a company and its competitors. New approaches to competitor cost analysis are reviewed: 1) statistical techniques estimate fixed and variable components of cost; and 2) an analytical “force-out” technique estimates categorical costs (materials, wages, selling costs, etc.).     

Get Ready for Innovation by Invasion

From many years of field research in West Germany and the United States, and especially from a recent study of relatively mature firms in Ohio, Gerhard Mensch has become aware of the disruption caused by the invasion of industries by new technologies from the outside. He sees the frequency of these invasions increasing in coming years for reasons that go beyond technological matters to the pressures for change coming from the capital markets. In this Perspective , he suggests the invasions can be countered and the capital markets satisfied by giving a more prominent role to the innovation manager in the strategy development process.     

Key managerial factors in new venture departments

Two clusters of factors —the “corporate strategic posture” and the New Venture Department (NVD) “political posture” — appear to determine the direction of an NVD's evolution. The “corporate strategic posture” refers to the cycles of diversification and consolidation that typically characterize corporate growth. A corporation's “strategic posture” at any given point in time can be positioned on a continuum, one end of which is a “diversifying” posture, while the other end is a “consolidating” posture.     

Technology development: Determining what to forecast

This article discusses a proven conceptual technique for identifying, classifying, and relating the very large number of complex factors, known and unknown, that enter into venture analysis decisions. Frameworks for reducing complexities to manageable options are proposed. These frameworks highlight areas where additional knowledge— or even invention—is necessary. Planning managers may thus determine their present technological position (where they are in the scheme of the present state of the art), map out possible future developments, reduce the risk of future shock, and determine which alternative should be the subject of in-depth technological forecasts.     

How New Product Strategies Impact on Performance

What is involved in a successful new product program? Is it high spending on risky R&D? Is it close contact with customers? Is it the overall competitive strength of the firm? Well, it might be any of these things, and more, according to Robert G. Cooper, depending on your definition of success. In an exhaustive examination of the new product strategies and performances of 122 industrial products firms, Cooper found that the strategy that a firm elects for its new product program is closely linked to the performance results that firm achieves. But what's performance? Cooper's analysis uncovered three different and independent ways of viewing new product performance. He brings some clarity to the meaning of a “high-performance” product innovation program, but there's a catch—the strategies leading to high performance in one direction are quite different from the strategies leading to positive results by other measures. In his summing up, Professor Cooper proposes sets of generalized strategies—guides to action—that product innovation managers should consider.     

Creating Brand Names That Work

When it comes to brands, what's in a name is everything—a product is not a brand until you name it. What you call your product makes a difference. In addition to making the product yours and no one else's, a good brand name can create a competitive edge by being memorable, by communicating the special qualities of the product, and by setting the stage for a line of future products. Lorna Opatow brings practical experience to this article in which she identifies the problems and the promises in choosing brand names, and then provides guidelines for creating, developing, and evaluating them prior to testing for market acceptance.     

Purposes and analysis of industrial package design

A simplified analysis is presented of the physsical phenomena and mechanical stresses involved in schock and vibration hazards which lead to concealed damages. The role of industrial packaging design in reducing the destructive mechanical stresses to harmless levels is discussed. Consideration is also given to the factors to which contribute to an optimal package design based on a compromise between the cost of occasional concealed damage and the cost of extra protection achieved by the liberal use of expensive packaging designs.     

Forecasting sales trends in the solid state industry

Through a study of the relationships between factors in the macro economy and solid state domestic sales, and with the use of econometric models, the solid state industry is attempting to forecast future business turns, both positive and negative, that affect long-term operations and profitability.     

Shippers' transportation choice processes under deregulation

Deregulation of the motor carrier industry affords an opportunity to better understand industrial choice processes during a period of significant environmental uncertainty. Partial validation of a decision process model and the managerial implications of that model are presented.     

Rethink Strategy or Perish

Not long ago, the telecommunications industry was a dusty strategic backwater of little interest, primarily concerned with proprietary technologies and enjoying a protected status. Not any more; the application of silicon and software to telecom has obliterated entry barriers, forced open the market, and, according to Mariann Jelinek, created a whole new strategic situation. Telecom is now a highly competitive, innovative, high-technology industry, with a worldwide market. Professor Jelinek suggests that the key to understanding the shift lies in comprehending the new technologies being applied and understanding their impact on the traditional markets and missions of the firms that use them. The lessons of these changes are important for all managers, especially those in mature industries, since microelectronics and software applications seem to know no industry boundaries. They are invading our lives on all sides.