So far I have found MBA 554 to be very interesting. I enjoyed learning about all the new technologies in the WEF 2008 and 2009 readings. Personally I have found Twitter to be very useless, although I can appreciate why some people would use it. For my purposes (which do not include marketing, selling, or advertising anything), it doesn't provide a service that text messaging, Facebook, or Myspace doesn't already provide. While it might be nice to provide people with your status updates, Myspace and Facebook already do that while offering other features that are not available through Twitter. While you cannot update Myspace through SMS messaging, Myspace Mobile is very user-friendly and works well on multiple phones and operating systems. I have found services like Mint.com to be very useful, and I have yet to have any major issues with it.
As for the actual class (specific technologies aside) I enjoy the non-rigid structure and flow of the class. I don't even mind the Wharton book too much, but only when it is in small doses at a time (1 -2 chapters).
Tuesday, February 17, 2009
Monday, February 16, 2009
Wharton Chapter 2
Wharton Chapter 2
Chapter 2 in Wharton on Managing Emerging Technologies discusses the four most common mistakes established companies make when embracing and managing emerging technologies. Incumbent companies may have an advantage over smaller companies in some ways, but they are also more susceptible to make the mistakes of delayed participation, sticking with the familiar, failure to fully commit, and lack of persistence. However, not all companies have to make these mistakes; there are guidelines to follow when working with new technologies that can help companies be successful.
The ambiguous nature of emerging technologies explains why most companies would want to embrace a “wait and see” mentality about adopting them. It is hard to determine profitability when there is currently little known. Managers and companies should try to focus on the future of the technology and what it has the potential to become instead of what it is currently.
Companies and managers are averse to risk and the unfamiliar, especially when funding, reputations, and profitability are at stake. With emerging technologies, it is easy to steer towards what is known, even though most emerging technologies involve new technologies, new ideas, and new thought processes. Different designs of an emerging technology may evolve, and companies may be faced with which design to adopt. Blue Ray and HD DVD were an example of this, and companies that decided to back the HD DVD lost out when the standard became Blue Ray.
Even when a company does decide to pursue an emerging technology, they may not adopt it with the commitment level needed to be successful. Many companies make the mistake of being too cautious, and they fail to be successful with the emerging technology. Companies may be afraid that an emerging technology will cause one of their existing products to be obsolete (creative destruction), additional funding may be hard to justify when there are no profits yet, and the company may be too busy satisfying their current customer needs to think of future needs and new markets. It is hard to “think outside the box” while trying to keep up with the everyday demands of running and operating a business. Companies are not dynamic by nature, they have their core competencies aligned with the structure and culture within the company, so when an emerging technology comes in it threatens to disrupt the synergy of the business.
If a company has invested in an emerging technology, and successfully adopted it, they can still make the mistake of lack of persistence. Profits are not always realized right away, so many companies may abandon efforts because there are no gains to show right away. The technology is usually new to the market, so profitability can take longer than expected.
Wharton says when dealing with emerging technologies and the mistakes commonly made, “the best defense may be a good offense.” Widening peripheral vision, creating a learning culture, staying flexible in strategic ways, and providing organizational autonomy can be applied to help companies avoid the common mistakes made.
Companies need to stay current with technological trends, and investigate emerging technologies that align with the company’s core competencies. Company’s need to evaluate their customers’ needs, and identify any possible future needs as well. A company must have effective, collaborative, open communication, where learning is a company-wide initiative. If a company is flexible, it is easier to make initial investments in emerging technologies, easier to adapt the business where needed, and also easier to back out if the technology does not prove to be a good fit for the business. Managing real options and fully committing when the level of uncertainty has gone down can only be achieved in a company that is flexible enough to change and modify when needed. Also, removing the emerging technology from the mainstream business can help to cut down on the business mindsets, controls, and other issues that will negatively impact the adoption of the technology.
Every emerging technology is different, so every solution and successful way to integrate it into a business will be different. The above mistakes and guidelines to avoid making the mistakes are broad concepts that can be applied loosely to every company and every emerging technology, although some may work better than others in given situations.
Wharton mentioned Encyclopedia Britannica as a company that was unwilling (at least at first) to move out of their comfort zone of offering print material and offer CD ROM versions. It wasn’t until 1994 when they finally made the first CD-ROM version of the Encyclopaedia Britannica available. Since then it sounds like they have learned their lesson, they are currently embracing technology and the Internet by offering education and reference programs online (which they periodically review and upgrade), as well as offering other reference, material tailored towards students, and professionals. Their mission is “to be the worldwide leader in reference, education, and learning,” and they can’t accomplish that by not embracing the emerging technologies that directly affect their target market.
Ruby Tuesday is an example of a restaurant that continually invests in and researches emerging technologies. They are constantly looking for ways that technology can improve their kitchen operations, reservation system, and webpage. Three years ago they purchased a new software system that provided step by step food preparation for the cooks. While they had a current program in place this new one was Windows-based, in color, and displayed graphics of all the steps. It would completely replace the old one and make it obsolete. Ruby Tuesday was one of the first restaurant chains to purchase and implement the software.
As a result, it eliminated the need for kitchen managers and saved the company in extra staffing expenses, improved customer service, and cut down the average dining time because the food was prepared much quicker than before. It also eliminated the need to print hard copy instructional cooking posters, and saved the company an estimated $1 million a year. Ruby Tuesday had successfully integrated an emerging technology into their business and saved money internally, while providing a higher level of service than their competitors because of the technology.
Regardless of the business, the target market, or the technology, it pays to be a leader. Some companies will be successful and some won’t, but a company will definitely not be successful in managing emerging technologies if they don’t take a chance, early and often.
References:
Day, George and Schoemaker, Paul. (2000). Wharton on Managing Emerging Technologies. Hoboken, New Jersey: John Wily & Sons, Inc.
Encyclopaedia Britannica. http://corporate.britannica.com/company_info.html
Watson, Brian P. (2007 August). Danger Looms for Late Emerging Tech Adopters. Retrieved February 15 2009 from, http://tech-notes.info/2007/08/21/intelligence-dangers-loom-for-late-emerging-tech-adopters
Chapter 2 in Wharton on Managing Emerging Technologies discusses the four most common mistakes established companies make when embracing and managing emerging technologies. Incumbent companies may have an advantage over smaller companies in some ways, but they are also more susceptible to make the mistakes of delayed participation, sticking with the familiar, failure to fully commit, and lack of persistence. However, not all companies have to make these mistakes; there are guidelines to follow when working with new technologies that can help companies be successful.
The ambiguous nature of emerging technologies explains why most companies would want to embrace a “wait and see” mentality about adopting them. It is hard to determine profitability when there is currently little known. Managers and companies should try to focus on the future of the technology and what it has the potential to become instead of what it is currently.
Companies and managers are averse to risk and the unfamiliar, especially when funding, reputations, and profitability are at stake. With emerging technologies, it is easy to steer towards what is known, even though most emerging technologies involve new technologies, new ideas, and new thought processes. Different designs of an emerging technology may evolve, and companies may be faced with which design to adopt. Blue Ray and HD DVD were an example of this, and companies that decided to back the HD DVD lost out when the standard became Blue Ray.
Even when a company does decide to pursue an emerging technology, they may not adopt it with the commitment level needed to be successful. Many companies make the mistake of being too cautious, and they fail to be successful with the emerging technology. Companies may be afraid that an emerging technology will cause one of their existing products to be obsolete (creative destruction), additional funding may be hard to justify when there are no profits yet, and the company may be too busy satisfying their current customer needs to think of future needs and new markets. It is hard to “think outside the box” while trying to keep up with the everyday demands of running and operating a business. Companies are not dynamic by nature, they have their core competencies aligned with the structure and culture within the company, so when an emerging technology comes in it threatens to disrupt the synergy of the business.
If a company has invested in an emerging technology, and successfully adopted it, they can still make the mistake of lack of persistence. Profits are not always realized right away, so many companies may abandon efforts because there are no gains to show right away. The technology is usually new to the market, so profitability can take longer than expected.
Wharton says when dealing with emerging technologies and the mistakes commonly made, “the best defense may be a good offense.” Widening peripheral vision, creating a learning culture, staying flexible in strategic ways, and providing organizational autonomy can be applied to help companies avoid the common mistakes made.
Companies need to stay current with technological trends, and investigate emerging technologies that align with the company’s core competencies. Company’s need to evaluate their customers’ needs, and identify any possible future needs as well. A company must have effective, collaborative, open communication, where learning is a company-wide initiative. If a company is flexible, it is easier to make initial investments in emerging technologies, easier to adapt the business where needed, and also easier to back out if the technology does not prove to be a good fit for the business. Managing real options and fully committing when the level of uncertainty has gone down can only be achieved in a company that is flexible enough to change and modify when needed. Also, removing the emerging technology from the mainstream business can help to cut down on the business mindsets, controls, and other issues that will negatively impact the adoption of the technology.
Every emerging technology is different, so every solution and successful way to integrate it into a business will be different. The above mistakes and guidelines to avoid making the mistakes are broad concepts that can be applied loosely to every company and every emerging technology, although some may work better than others in given situations.
Wharton mentioned Encyclopedia Britannica as a company that was unwilling (at least at first) to move out of their comfort zone of offering print material and offer CD ROM versions. It wasn’t until 1994 when they finally made the first CD-ROM version of the Encyclopaedia Britannica available. Since then it sounds like they have learned their lesson, they are currently embracing technology and the Internet by offering education and reference programs online (which they periodically review and upgrade), as well as offering other reference, material tailored towards students, and professionals. Their mission is “to be the worldwide leader in reference, education, and learning,” and they can’t accomplish that by not embracing the emerging technologies that directly affect their target market.
Ruby Tuesday is an example of a restaurant that continually invests in and researches emerging technologies. They are constantly looking for ways that technology can improve their kitchen operations, reservation system, and webpage. Three years ago they purchased a new software system that provided step by step food preparation for the cooks. While they had a current program in place this new one was Windows-based, in color, and displayed graphics of all the steps. It would completely replace the old one and make it obsolete. Ruby Tuesday was one of the first restaurant chains to purchase and implement the software.
As a result, it eliminated the need for kitchen managers and saved the company in extra staffing expenses, improved customer service, and cut down the average dining time because the food was prepared much quicker than before. It also eliminated the need to print hard copy instructional cooking posters, and saved the company an estimated $1 million a year. Ruby Tuesday had successfully integrated an emerging technology into their business and saved money internally, while providing a higher level of service than their competitors because of the technology.
Regardless of the business, the target market, or the technology, it pays to be a leader. Some companies will be successful and some won’t, but a company will definitely not be successful in managing emerging technologies if they don’t take a chance, early and often.
References:
Day, George and Schoemaker, Paul. (2000). Wharton on Managing Emerging Technologies. Hoboken, New Jersey: John Wily & Sons, Inc.
Encyclopaedia Britannica. http://corporate.britannica.com/company_info.html
Watson, Brian P. (2007 August). Danger Looms for Late Emerging Tech Adopters. Retrieved February 15 2009 from, http://tech-notes.info/2007/08/21/intelligence-dangers-loom-for-late-emerging-tech-adopters
Tuesday, February 10, 2009
Wharton Preface and Chapter One
Summary
Wharton on Managing Emerging Technologies discusses the challenges departments, companies, and managers face in regards to managing emerging technologies. Never before have these technologies had such an impact on the way businesses are internally structured and run, technology is analyzed and used, and products are developed for ambiguous markets. An emerging technology is defined by the authors as “science-based innovations that have the potential to create a new industry or transform an existing one. The knowledge base is expanding, the application to existing markets is undergoing innovation, or new markets are being tapped or created.” This book gives a broad, management top down approach to the unique issues present when managing these technologies.
Successfully managing emerging technologies is critical to the success of any company, whether it already has a large presence in the market or whether it is a new entrant. Large companies may have more available resources, financial advantages, and other advantages over smaller, lesser known companies, but when managing emerging technologies that is not always an advantage. Large companies are more inclined to be more resistant to change, unable to gain the skills and knowledge that are needed, and reluctant to take a chance on a new technology that is unproven and new.
With the rate of technological progress accelerating more rapidly than ever before, companies cannot be as successful with the “fast-follower” strategy as they used to be. Companies need to change that mindset and be more proactive as opposed to reactive when embracing emerging technologies. New technologies may not fit into the current core competencies of a business so they made need to adapt to remain competitive. Although the future lifespan and profitability of an existing technology is unknown, there are factors that can be studied and applied to break down some of the ambiguity.
The change needed in the way a business functions and operates has made managing emerging technologies a different game than managing existing technologies. If managers do not recognize that the strategy is different, they will never be able to compete. Shifts in thinking include - a move to a dynamic organizational context, adaptive strategy planning, iterative and informal resource allocation, market exploration, and flexible technology research.
In addition to changing the thought process regarding business practices and existing technologies, businesses must also change the way they move towards adapting emerging technologies. Extensive knowledge in the area of interest, understanding the target market’s needs and habits, experimenting with prototypes or first-generation products, and slowly easing into the market can be employed to help cut down on risk and uncertainty. Also understanding any government rules or regulations affecting the market, using “knowledge networks,” using dynamic planning, and adjusting financial assessments to reflect the future profitability can help as well.
While there are frameworks, approaches, and perspectives to help better manage emerging technologies, there will always be a high level of difficulty and discrepancy. There will always be failures despite proper management, core competencies can be leveraged, but should not hold a business back, risks must be taken but can evaluated first, and while rivalry between companies is increased, collaboration is also embraced. Identifying, understanding, and overcoming or adapting to these challenges is what makes a business successful at managing emerging technologies.
Research Update
I found it interesting that Apple Computer thought it would master the PDA (personal digital assitant) field with the Newton. The Palm Pilot by Palm computing actually moved into the head position, but even since then the market leader has shifted many times. Many different companies have entered the PDA market since then (Sony and HP, to name a few) but with the increase demands for mobile communication, the demand for a PDA is diminishing. This increased demand for communication, email, and the functions of a PDA and the desire have all of these available in one place led to the merging of a cell phone and PDA to create a smartphone or pocket pc. These are devices that offer data capability (for email, web browsing, etc.), full phone and voice features, while managing contacts and calendars. They come in a variety of models and features, full key boards, slide out keyboards, on screen keyboards, touch screens, etc. Palm is one company that has adapted to the new emerging technology of a smartphone, for instance, when I looked at their webpage (http://www.palm.com/) they didn’t even advertise any standard PDA’s. The Homepage and main “Shop” page had only smartphones displayed, and offered many different options - full QWERTY keyboards, no keyboards, Palm OS, Windows OS, touch screens. This a good example of Palm using their core competencies - extensive knowledge of the target market and the way customers use and interact with the product - to their advantage when adapting to the changing environment of PDA to smartphone use.
Analysis
Wharton on Managing Emerging Technologies was written in 2000, and since then we’ve seen new products enter and shape the market. While some of the products mentioned in the book are sunseting, or even obsolete these days, I do find it accurate to say that the principles applied to managing the technologies hold true today. This illustrates that even though the future profitability, return, and lifespan of an emerging technology may not be known, there are still standard, non specific (at least in regards to a specific technology) guidelines that can be applied to successfully manage emerging technologies.
Resources
Day, George and Schoemaker, Paul. (2000). Wharton on Managing Emerging Technologies. Hoboken, New Jersey: John Wily & Sons, Inc.
Zellen, Barry. (2005 Feb 25). PDAs, Phoned & Smart Devices. Retrieved February 10 2009, From http://wirelessinnovator.com/index.php?articleID=4522§ionID=7
Wharton on Managing Emerging Technologies discusses the challenges departments, companies, and managers face in regards to managing emerging technologies. Never before have these technologies had such an impact on the way businesses are internally structured and run, technology is analyzed and used, and products are developed for ambiguous markets. An emerging technology is defined by the authors as “science-based innovations that have the potential to create a new industry or transform an existing one. The knowledge base is expanding, the application to existing markets is undergoing innovation, or new markets are being tapped or created.” This book gives a broad, management top down approach to the unique issues present when managing these technologies.
Successfully managing emerging technologies is critical to the success of any company, whether it already has a large presence in the market or whether it is a new entrant. Large companies may have more available resources, financial advantages, and other advantages over smaller, lesser known companies, but when managing emerging technologies that is not always an advantage. Large companies are more inclined to be more resistant to change, unable to gain the skills and knowledge that are needed, and reluctant to take a chance on a new technology that is unproven and new.
With the rate of technological progress accelerating more rapidly than ever before, companies cannot be as successful with the “fast-follower” strategy as they used to be. Companies need to change that mindset and be more proactive as opposed to reactive when embracing emerging technologies. New technologies may not fit into the current core competencies of a business so they made need to adapt to remain competitive. Although the future lifespan and profitability of an existing technology is unknown, there are factors that can be studied and applied to break down some of the ambiguity.
The change needed in the way a business functions and operates has made managing emerging technologies a different game than managing existing technologies. If managers do not recognize that the strategy is different, they will never be able to compete. Shifts in thinking include - a move to a dynamic organizational context, adaptive strategy planning, iterative and informal resource allocation, market exploration, and flexible technology research.
In addition to changing the thought process regarding business practices and existing technologies, businesses must also change the way they move towards adapting emerging technologies. Extensive knowledge in the area of interest, understanding the target market’s needs and habits, experimenting with prototypes or first-generation products, and slowly easing into the market can be employed to help cut down on risk and uncertainty. Also understanding any government rules or regulations affecting the market, using “knowledge networks,” using dynamic planning, and adjusting financial assessments to reflect the future profitability can help as well.
While there are frameworks, approaches, and perspectives to help better manage emerging technologies, there will always be a high level of difficulty and discrepancy. There will always be failures despite proper management, core competencies can be leveraged, but should not hold a business back, risks must be taken but can evaluated first, and while rivalry between companies is increased, collaboration is also embraced. Identifying, understanding, and overcoming or adapting to these challenges is what makes a business successful at managing emerging technologies.
Research Update
I found it interesting that Apple Computer thought it would master the PDA (personal digital assitant) field with the Newton. The Palm Pilot by Palm computing actually moved into the head position, but even since then the market leader has shifted many times. Many different companies have entered the PDA market since then (Sony and HP, to name a few) but with the increase demands for mobile communication, the demand for a PDA is diminishing. This increased demand for communication, email, and the functions of a PDA and the desire have all of these available in one place led to the merging of a cell phone and PDA to create a smartphone or pocket pc. These are devices that offer data capability (for email, web browsing, etc.), full phone and voice features, while managing contacts and calendars. They come in a variety of models and features, full key boards, slide out keyboards, on screen keyboards, touch screens, etc. Palm is one company that has adapted to the new emerging technology of a smartphone, for instance, when I looked at their webpage (http://www.palm.com/) they didn’t even advertise any standard PDA’s. The Homepage and main “Shop” page had only smartphones displayed, and offered many different options - full QWERTY keyboards, no keyboards, Palm OS, Windows OS, touch screens. This a good example of Palm using their core competencies - extensive knowledge of the target market and the way customers use and interact with the product - to their advantage when adapting to the changing environment of PDA to smartphone use.
Analysis
Wharton on Managing Emerging Technologies was written in 2000, and since then we’ve seen new products enter and shape the market. While some of the products mentioned in the book are sunseting, or even obsolete these days, I do find it accurate to say that the principles applied to managing the technologies hold true today. This illustrates that even though the future profitability, return, and lifespan of an emerging technology may not be known, there are still standard, non specific (at least in regards to a specific technology) guidelines that can be applied to successfully manage emerging technologies.
Resources
Day, George and Schoemaker, Paul. (2000). Wharton on Managing Emerging Technologies. Hoboken, New Jersey: John Wily & Sons, Inc.
Zellen, Barry. (2005 Feb 25). PDAs, Phoned & Smart Devices. Retrieved February 10 2009, From http://wirelessinnovator.com/index.php?articleID=4522§ionID=7
Thursday, January 22, 2009
MBA 554 Spring
Week 1 January 22nd – 28th
Last week in class Twitter and Microblogging were mentioned as an emerging technology. I am familiar with social networking (facebook, myspace, etc.), but I had never heard of Twitter before. It sounded like an interesting concept, text messaging meets Myspace “Status” (minus the emoticon for your mood though). I logged on (www.twitter.com), created an account (can be found at http://twitter.com/Zimmies) and tried to figure out the use behind positing 140 character “Tweets” on “What Am I Doing?” At first it looked like fun way to pass time, but I wasn’t sure about how useful it would be. While it was nice to reconnect with some people from high school I hadn’t seen in years, I didn’t really care that they were “Shopping at Costco” or “Getting ready for a night on the town.”
Still, Twitter seems to be very popular, so I was bound and determined to find a practical use for it. I did what I always do when I need information – I did a Google search on “Twitter uses.” Not surprisingly, I found a lot of matches.
After reading through article after article, I found some good information and I’ll admit that I can understand the purpose behind Twitter. While some people do use it to update others on their status, there are many others (including news providers such as CNN and NY Times) who use it to distribute information. You just have to follow the right people. It is extremely easy to update/distribute information to a large group of people in seconds, and it’s also very easy to ask for information about any issue, new technology, etc. in seconds as well.
So, while Twitter will not replace my use of instant messaging, text messaging, and myspace, I do look forward to getting more familiar with it and getting good information from it.
Here are websites that had useful information on Twitter/Mircoblogging:
http://www.toprankblog.com/2008/05/top-10-twitter-uses/
http://www.lifehack.org/articles/lifehack/5-ways-to-use-twitter-for-good.html
http://www.insidecrm.com/features/101-twitter-uses-052008/
http://www.disruptiveconversations.com/2007/12/the-10-ways-i-l.html
Last week in class Twitter and Microblogging were mentioned as an emerging technology. I am familiar with social networking (facebook, myspace, etc.), but I had never heard of Twitter before. It sounded like an interesting concept, text messaging meets Myspace “Status” (minus the emoticon for your mood though). I logged on (www.twitter.com), created an account (can be found at http://twitter.com/Zimmies) and tried to figure out the use behind positing 140 character “Tweets” on “What Am I Doing?” At first it looked like fun way to pass time, but I wasn’t sure about how useful it would be. While it was nice to reconnect with some people from high school I hadn’t seen in years, I didn’t really care that they were “Shopping at Costco” or “Getting ready for a night on the town.”
Still, Twitter seems to be very popular, so I was bound and determined to find a practical use for it. I did what I always do when I need information – I did a Google search on “Twitter uses.” Not surprisingly, I found a lot of matches.
After reading through article after article, I found some good information and I’ll admit that I can understand the purpose behind Twitter. While some people do use it to update others on their status, there are many others (including news providers such as CNN and NY Times) who use it to distribute information. You just have to follow the right people. It is extremely easy to update/distribute information to a large group of people in seconds, and it’s also very easy to ask for information about any issue, new technology, etc. in seconds as well.
So, while Twitter will not replace my use of instant messaging, text messaging, and myspace, I do look forward to getting more familiar with it and getting good information from it.
Here are websites that had useful information on Twitter/Mircoblogging:
http://www.toprankblog.com/2008/05/top-10-twitter-uses/
http://www.lifehack.org/articles/lifehack/5-ways-to-use-twitter-for-good.html
http://www.insidecrm.com/features/101-twitter-uses-052008/
http://www.disruptiveconversations.com/2007/12/the-10-ways-i-l.html
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