Technological Myopia 1 n Recall Marketing Myopia Failure

Technological Myopia (1) n Recall Marketing Myopia: • Failure to see customer-need-oriented business (vs product/serviceoriented business) <Too narrowly perceiving their businesses. > n What is Technological Myopia? – <Too narrowly perceiving the impact/usage of technologies. > – Counter example: HP Inkjet die mfg. • External: failure to see how tech. in other industries can affect the company • Internal: failure to appreciate how comp/industry available tech can be applied in a strategic way. – Xerox example. – GM research lab example. Sheu 1

Technological Myopia: Assessment n How to overcome Technological Myopia? • 4 -phase process: assessment, involvement, selection, integration 1) Assessment: measure the degree of T. myopia by Strategic value matrix (fig 2. 1) – isolated usage, budget needs, expense needing control <isolated operational tools> – packaged usage, operational plan, necessary expense <organized operational tools> – higher-level mgmt, tactical support for strategic plan, necessary investment <support business/operations> – senior mgmt, strategic usage to support business plan, priority investment <develop business/operations> • Fig. 2. 2. Current status of IT use. (Mc. Graw Hill Study) – What is your co. position? Sheu 2

Comparison of Maturity Level Def. Degree of T. myopia by Strategic value matrix: n strategic usage, develop, business/operations: – priority investment n support business/ operations, tactical support for str. plan: Other definition: n Strategic n Offensive n Defensive n Cost-justified n Controlled – necessary investment n organized operational tools: – necessary expense n isolated operational tools: – expense needing control Sheu 3

Technological Myopia: Involvement 2) Involvement • Ask yourself: What str. approach can give you competitive advantages? • 3 generic strategies w/ permutations – Low cost producer: via: productivity, inventory, material cost, design, . . . – Product/service differentiation: via: improved service, distri. , quality, design, . . . – Niche marketing: via: develop business opportunities, targeting MKT, better service to the niche, … • How can tech help you achieve your strategic advantages? (Use tech to help open up new opportunities. ) Sheu 4

Technological Myopia: Selection 3) Selection: • Select a strategic advantage to exploit. • Choose a strategy that makes sense for your business. • Which box is your strategic focus ? • Is there an opportunity for revolutionary change? • Start small. Use prototype. Sheu 5

Technological Myopia: Integration 4) Integration: • Integrate technology application to business strategy & corporate culture - not simple. (what is culture? ) • The biggest obstacle is corporate culture. Be very sensitive to culture. (BIG deal) • To bring about a revolutionary change, strong TOP mgmt leadership/commitment is needed. • What if CEO does not buy-in? (what is needed? ) Sheu 6