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Case Assignment 4

The document discusses how a firm's internal activities, such as absorptive capacity and internal scanning, influence its ability to acquire external technology. It highlights the opportunities of open innovation for R&D, including reduced costs, diverse knowledge acquisition, and faster time-to-market. Additionally, it emphasizes the importance of embedding transferred technology into core routines to ensure effective utilization and long-term productivity.

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Gideon Tyree
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14 views4 pages

Case Assignment 4

The document discusses how a firm's internal activities, such as absorptive capacity and internal scanning, influence its ability to acquire external technology. It highlights the opportunities of open innovation for R&D, including reduced costs, diverse knowledge acquisition, and faster time-to-market. Additionally, it emphasizes the importance of embedding transferred technology into core routines to ensure effective utilization and long-term productivity.

Uploaded by

Gideon Tyree
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Middle Tennessee State University

Engineering Management Theory and Application- ET 6810

Instructor: Dr. Misa Faezipour


Email: [email protected]

Case Assignment 4

Team-3

Gideon Tyree, Robert MacLaney, Mahina Ahmed Pranti, Deshi DeWalt

Gideon Tyree:[email protected]
Robert MacLaney:[email protected]
Mahina Ahmed Pranti:[email protected]
Deshi DeWalt: [email protected]
1. Explain how a firm’s internal activities affect its ability to acquire external technology.
A firm’s internal activities greatly influence its ability to acquire external technology in several
ways:
 Absorptive Capacity: An organization's prior expertise, experience, and skills determine
its capacity to successfully adopt, integrate, and apply foreign technologies. It may be
challenging for the business to evaluate or implement new technology if it lacks sufficient
prior expertise or experience in related fields.
 Internal Scanning and Awareness: Businesses that use internal scanning to
methodically assess their needs, strengths, and weaknesses are better able to identify the
external technologies that will best support them in achieving their goals. It is simpler to
target relevant external innovations when one is aware of internal capabilities.
 Receptive Environment: When it comes to adopting new technology, a company's
culture, openness, and adaptability are crucial. An environment that is flexible can more
easily incorporate new technologies, whereas one that is rigid or compartmentalized may
reject outside ideas.
 Existing R&D and Learning Procedures: Companies with robust R&D departments
and ongoing learning procedures are more adept at incorporating outside innovations into
ongoing initiatives and modifying them to suit their goods or services.
 Collaboration and Networking: Engaging in internal activities that promote global
networking, like attending conferences, collaborating, and sharing knowledge, makes it
easier to identify and employ external technologies.
In brief, a company's capacity to obtain and profit from outside technology is determined by its
self-awareness, receptivity to new concepts, and the strength of its learning and research and
development systems.

2. What opportunities does ‘open innovation’ offer to the R&D function?


Open innovation offers several key opportunities to the R&D function:
1. Reduces Workload and Cost: Open innovation reduces the workload on and expense of
an individual R&D department by allowing them to collaborate with other companies’
R&D departments and build on the innovations of others. It also allows companies to
still profit from technologies even if they have not originated them themselves and allows
them to focus on effective business models rather than sinking all their resources into the
innovation arms race.
2. Obtaining Diverse Knowledge and Experience: Open innovation broadens the body of
knowledge by introducing fresh viewpoints and state-of-the-art innovations from sources
outside the company. This may result in more innovative solutions and quicker problem-
solving.
3. Faster Time-to-Market: Businesses can shorten development cycles and bring items to
market more quickly by utilizing embryonic or external technology rather than
developing everything in-house.

4. Increasing the Value of Internal Innovations: Open innovation enables businesses to


sell or license technologies they have created but do not intend to make commercially
available. This implies that inventions are not wasted and can produce income.
5. Focus on Business Models: Open innovation allows businesses to concentrate on
developing successful business models around modern technologies, whether they are
created internally or purchased from outside sources, rather than engaging in a never-
ending race of discovery.

In summary, by lowering expenses, boosting productivity, and facilitating greater access to


outside knowledge and experience, open innovation revolutionizes the function of R&D.
Utilizing underutilized internal technology, accelerating product development, and concentrating
on developing robust business models instead of just competing in technological advancement
are all made possible by it. In a market that is changing quickly, open innovation helps R&D
departments maintain a competitive edge and generate ongoing growth by promoting
cooperation and exploiting both internal and external resources. An example: Procter &
Gamble’s success through their “Connect + Develop” program.

3. Explain why any technology transferred to an organization needs to be embedded into its core
routines.
Technology transferred to an organization needs to be embedded into its core routines:
An organization's core routines must incorporate technology since they
embody the organization's established procedures, practices, and methods
of operation. Enhanced productivity and ongoing creativity result from the
seamless integration of technology into these routines, which guarantees
consistent application, effective utilization, and continuous development.
For example, a manufacturing business that uses cutting-edge robotic
automation technology created by a university. The technology may be
underutilized or implemented inconsistently if the business merely purchases
it without integrating it into its production processes, such as standard
operating procedures for assembly lines, maintenance schedules, and quality
control methods. However, the corporation guarantees that personnel are
educated to efficiently operate and maintain the robots, that the technology
complies with current quality standards, and that production processes are
optimized to maximize productivity by incorporating the technology into its
fundamental routines.
This integration ensures that technology contributes to long-term
productivity and innovation rather than being a novelty or neglected asset by
transforming it from isolated information into systemic knowledge. Thus,
integrating technology into daily tasks is crucial to realize its full potential
and attain long-term business success.

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