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Jakki J. Mohr
Technology is ubiquitous
Substitution of knowledge and information for physical assets Massive investments in information technology Enhanced productivity Falling prices for technology Faster growth and lower inflation at the same time
Jakki Mohr, 2001
Volatile Relies on constant stream of innovation Dot-com crashes Stock market effects Global effects
Definitions of High-Tech
Definitions of Technology:
the practical application of knowledge especially in a particular area (e.g., engineering) a manner of accomplishing a task especially using technical processes, methods, or knowledge (e.g., new technologies for information storage) scientific technology involving the production or use of advanced or sophisticated devices (as in computers or electronics)
Jakki Mohr, 2001
Definitions of Technology:
Government Perspective
Used by the Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and the National Science Foundation
Jakki Mohr, 2001
131 211 281 282 283 284 285 286 287 289 291 299 335 355
Industry
Computer and office equipment............................................................... Electrical industrial apparatus.................................................................. Communications equipment .................................................................... Electronic components and accessories.................................................. Motor vehicles and equipment................................................................. Aircraft and parts ..................................................................................... Guided missiles, space vehicles, parts .................................................... Search and navigation equipment ........................................................... Measuring and controlling devices........................................................... Medical instruments and supplies............................................................ Photographic equipment and supplies..................................................... Computer and data-processing services ................................................. Engineering and architectural services .................................................... Research and testing services................................................................. Management and public relations ............................................................ 2 Services, n.e.c. ......................................................................................
Industry
Level II industries .................................................................................. Miscellaneous textile goods ..................................................................... Pulp mills ................................................................................................. Miscellaneous converted paper products ................................................ 2 Ordnance and accessories, n.e.c. .......................................................... Engines and turbines ............................................................................... General industrial machinery ................................................................... 2 Industrial machines, n.e.c. ..................................................................... Household audio and video equipment.................................................... Miscellaneous electrical equipment and supplies .................................... Miscellaneous transportation equipment .................................................
1 See text for definition of Level I and Level II industries. 2 n.e.c. = not elsewhere classified
Some industries are R&D intensive (i.e., hightech), but new products are not revolutionary
Ex: Cigarettes
Definitions of Technology:
Market Uncertainty:
ambiguity about the type and extent of customer needs that can be satisfied by a particular technology Consumer fear, uncertainty and doubt (FUD) Customer needs change rapidly and unpredictably Customer anxiety over the lack of standards and dominant design Uncertainty over the pace of adoption Uncertainty over/inability to forecast market size
Jakki Mohr, 2001
Technology Uncertainty:
not knowing whether the technology or the company can deliver on its promise Uncertainty over whether the new innovation will function as promised Uncertainty over timetable for new product development Ambiguity over whether the supplier will be able to fix customer problems with the technology Concerns over unanticipated/unintended consequences Concerns over obsolescence
Jakki Mohr, 2001
Competitive Volatility:
changes in competitors, offerings, strategies Uncertainty over who will be future competitors Uncertainty over the rules of the game (i.e., competitive strategies and tactics) Uncertainty over product form competition
competition between product classes vs. between different brands of the same product
Technological Uncertainty
Competitive Volatility
Ex: How much to charge for licensing the rights to a wasteeating microbe?
Suppliers
Car Manufacturers
Car Dealers
Customers
personal consumption
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Often, technological innovations occur at upstream (i.e., supplier) levels in the supply chain Such innovations may radically affect the manufacturing process or the inner workings of a product, but End-user behavior may not be significantly affected Examples: cars, food, computing, hair styling, Internet
Jakki Mohr, 2001
Continuum of Innovations
Incremental
Extension of existing product or process Product characteristics welldefined Competitive advantage on low cost production Often developed in response to specific market need "Demand-side" market
Radical
New technology creates new market R&D invention in the lab
Superior functional performance over "old" technology Specific market opportunity or need of only secondary concern "Supply-side" market
Jakki Mohr, 2001
Mismatch: Shadow
Contingency Theory
Marketing Strategy New Product Success
R&D/Marketing Interaction
Type of Marketing Research
Selective demand; build image May be premium More competitive Jakki Mohr, 2001
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High-Tech Firm
Internal Considerations (Ch. 2, 3, 4) Core Competencies/Core Rigidities Funding Considerations Market Orientation Relationship Marketing R&D/Marketing Interactions Planning Process (Ch. 12)
Customers
Understanding Customers (Ch. 5,6) High-tech Research Forecasting Customer Decision-Making Adoption Diffusion of Innovations Target Marketing