Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2004. / Includes bibliographical references (leaves 87-88). / With the dawning of the digital era, many home electronic products are emerging. One of the fastest growing and most wide-spread products in the market is the DVD player. Few digital products have achieved as fast a market penetration, and with as rapid a price drop, as the DVD player. This thesis touches on the product development strategy for my company, LG Electronics, in terms of short-range and mid (long)-range plan, specifically on means to sustain and keep the profit margin reasonable in spite of the current competitive market situation. The system dynamics tool is used as a method of analysis and assessment on the current DVD player market situation. Based on the results of the analysis, I propose the following strategies, in terms of products and technologies, for LG Electronics to maintain sustainable growth in the industry. Firstly, in terms of mid-range plan, the company should broaden its DVD product scope and make profit by adding value. Secondly, in terms of long-range plan, the company should draw a big picture for further growth by taking into account the development of new disruptive technologies and products in the industry. / by Sung Hwan Kim. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2004. / Includes bibliographical references (leaves 102-106). / In order to survive, the steel industry has undergone traumatic changes in the last years. A thirty years old overcapacity combined with a slow growing market led to a steadily eroding profitability of steel companies, particularly in developed economies. These factors determined an industry profile delineated by a relentless quest for cost cutting and efficient operations. Regarding innovation, the approach of the steel industry has been reactive, basically following market requirements. The industry has historically found itself far from its customers businesses and has struggled to find innovative products and services that could meet an unperceived or unarticulated need so as to propose higher value and grow its market. Two important customers of the steel industry are the oil and gas and the automotive industries, two mature businesses as well. Even when changes in these two steel users have also been relatively slow, the more recent technological trends analyzed in this work suggest an upcoming faster pace of change. This thesis examines these recent technological trends in the oil and gas and automotive industries with regards to the potential impact in the steel industry. Some of the technological gaps that might be encountered in those trends are visited, in particular where substitution of lighter materials for steel is a possible avenue. Other cases where the new technological trend may affect consumption of steel are also analyzed. Following these lines, the thesis goes on analyzing the steel general approach to innovation and R&D and speculates on provocative alternatives to that approach that could put the industry in a better position for the future. / by Marco M. Tivelli. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2001. / Includes bibliographical references (leaves 202-221). / Responsive, affordable space transportation, using reusable launch vehicles (RL Vs) to place payloads into orbit at a fraction of today's exorbitant costs, will become a reality within the next few decades. As the railroads unlocked the American West, and as the modern airplane shrank our planet, reusable launch vehicles will open space with vast scientific, commercial, humanistic, and military payoffs. The large amount of financing required for commercial RLV development coupled with significant market risk, the employment of a myriad of high-risk technologies, the lack of Federal assistance beyond early stage RLV technology development, and numerous other barriers to entry have greatly undermined successful RLV system development. Historically, the U.S. government has stepped into the fray of past transportation technology and infrastructure development with investments and funding incentives. Over the past two decades, however, the U.S. government's record in RLV development has been dismal, characterized by repeated attempts to leapfrog critical technologies rather than applying a pragmatic, stepping stone, "build a little, fly a little" approach that was so successfully utilized in experimental aircraft development a few decades before. Despite a number of failed launch vehicle development endeavors since the development of the Space Shuttle, a wave of private entrepreneurial firms are currently attempting to develop innovative reusable launch vehicle concepts independently of the U.S. government. Originally bolstered by a late 1990s bullish low Earth orbit (LEO) market, the success of these endeavors may be destined to echo that of an analogous wave of failed entrepreneurial expendable launch vehicle development efforts from a few years before, especially now that the LEO market has declined so drastically. This thesis addresses several aspects of the development of reusable launch vehicles. Demand for space launch is examined, with attention on commercial satellite trends and emerging markets. Space launch supply is assessed, with discussion of the current situation of launch vehicle over-capacity and high global competition. Several reusable and expendable launch vehicle development programs are examined, including the efforts of both small entrepreneurial ventures and large national programs. An introduction to barriers to entrepreneurial RLV development is also presented, focusing on legitimacy issues and the problems of financing such high-risk ventures. Finally, technology and market entry competitive strategies for entrepreneurial RLV ventures are discussed and recommendations offered. / by Harry Karasopoulos. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2001. / Includes bibliographical references (leaf 78). / Several major differences in managerial philosophy and methodology can be seen between Western firms and Japanese firms nowadays. The importance of "Knowledge Management" is one example. As systematized and practiced in many Western firms, knowledge management is known as "management based on knowledge assets" and includes the skillful use of cutting-edge information technology to facilitate externalizing and sharing employees' tacit knowledge, thereby successfully increasing their intangible assets and corporate value. In spite of possessing traditional knowledge exchange systems characterized by face-to-face interactions in local communities, majority of Japanese organizations have been unaware of the significance of their knowledge assets. Today, most Japanese firms have suffered through at least ten years of extended recession, and thus have experienced a significant outflow of their knowledge as a result of cost-reduction and restructuring programs. The Japanese oil industry in which I work is one such lamentable example. Rather than focusing on a broad discussion of ideal knowledge management systems, I have focused on designing a practical knowledge sharing process for Japan Energy Corporation and its franchised dealers who run a network of more than 5,000 gas stations. Specifically, I have designed a framework of vertical-and-horizontal knowledge sharing within Japan Energy Corporation and its recently reorganized 11 retail subsidiary dealers named JOMO NETs. I discuss the issue from the perspective of the key knowledge players, design a supportive IT system, and identify other effective enablers such as a new incentive system and remodeling of routines, all focused on creating a system that will blend with the traditional Japanese organizational culture and understand the disciplines of past studies and practices, yet ultimately succeed by retaining valuable knowledge in a technologically advanced knowledge system that is accessible to all who need it. In addition, I propose a path for transforming Japan Energy's entire oil retail group into a true knowledge organization by transferring accumulated knowledge within its subsidiaries to its independent dealers as substitutes for monetary resources. This will serve to reinforce JEC's partnerships, and ultimately feed back to end consumers at gas stations to enhance the company's brand value and overall competitiveness. / by Daisuke Oka. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2003. / Includes bibliographical references (leaves 108-110). / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / In this study, we investigate and discuss IT investment and related issues in the Japanese banking industry. And we insist that banks should take account of technology trend as one of heavy IT users and switch long-term-strategy and IT-migration-strategy appropriately in order to make the best of IT. First of all, we show some back grounds of Japanese banking industry and IT revolution. Next, we show three case studies of a Japanese bank. We will find that, over the last ten years, Japanese banks have been struggling with deregulation, the IT revolution and the long resection of the Japanese economy. These external changes have made corporate strategies and traditional information systems are obsolete and inefficient. After then, we analyze IT investment allocation issues in the banking industry. As summary of our analysis, we show some key success factors and recommendation to a Japanese bank. Finally, Japanese banks should always consider Long-Term Strategy with a long-time viewpoint; during the period of IT migration, they should find a path in which they should follow based on IT Migration Strategy. / by Tatsuya Taniai. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2000. / Includes bibliographical references (leaves 97-102). / This thesis develops a framework for valuing projects in research, development and engineering (R,D&E) environments using real options valuation (ROV) concepts. It proves that the often-used discounted cash flow (DCF) techniques do not properly capture the uncertainty and flexibility of platform projects in technology-intensive industries. First the thesis presents the technology strategy that relates to value creation, value delivery, and value harvesting in high-tech companies. Analysis of the innovation dynamics models concludes that a sustainable competitive advantage in high-tech firms is most successfully achieved via high appropriability and development of a large set of complementary assets. The thesis also shows that a firm should use a mix of those assets depending on the technology development stage. Next the thesis investigates profit extraction in depth. The thesis describes how real options theory can be used to value most representative projects in technology-intensive firms, such as creation of intellectual property, development of breakthrough technology, and acquisition of platform technology. Based on ~ literature survey and the character of the last two projects analyzed, it is argued that multi-staged investment outlays are most accurately analyzed by using compound real options. An analytical compound options model is introduced and successfully implemented to value two real-life technology projects. Along with a mathematical analysis of the call on call options model, the thesis shows a proper way to discretionize investment outlays to perform an accurate valuation. ROV of technology cases with embedded options characteristics has significant strategic · consequences for high-tech firms. In the final part the thesis presents an approach to value , and dynamically manage a portfolio of high uncertainty technology projects. It is argued that R,D&E management can use ROV techniques to improve a sustainable competitive position and optimally develop its mid- and long-term technology strategy. The thesis discusses in-depth the managerial implication of ROV and the necessary ingredients to implement the real options framework into the corporate strategy. / by Piotr J. Wesolowski. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2004. / Includes bibliographical references (leaves 63-70). / In recent years we have seen a confluence of science and technology that portends great impact to business strategy and product development. Just as physicists, chemists and biologists have extended their knowledge to other fields in pursuit of their own research, so, too, must senior business managers extend beyond competency in finance and marketing to comprehend fundamental scientific principles in order to make strategic business decisions. In addition to technical knowledge specific to their particular industry, successful leaders of the very near future will have to understand the ebb and flow of new technology discoveries "emerging" from the lab to the market, and will skillfully leverage these dynamics to navigate their companies through waves of innovation. The speed of scientific discovery and the convergence of multiple technologies to influence a single product create a compelling argument for corporate investigation of a range of emerging technologies and tracking of developments in multiple industries. "Technical intelligence" is knowledge, derived from analysis of appropriate metrics, trends and activities, which informs strategic planning and decision-making. This research surveys the academic literature and examines some methods and tools for gathering and employing technical intelligence. We conclude that an amalgamation of strategic evaluation methods, but especially scanning and monitoring, can and should be used to effectively develop an objective, simple, and descriptive view of technology emergence that captures activity, momentum, and ultimately, viability, of emerging technology over time. / by Ellen M. Brockley. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2004. / Includes bibliographical references (p. 98-102). / Combining an understanding of the technical progress and potential of semiconductor light emitting materials with an analysis of market adoption reveals useful insights into challenges and opportunities in the growing field of solid state lighting. The integration of discrete LEDs into solid state lighting systems is identified as a critical area of both technical and business development and the key to creating useful products and expanding new markets. Analysis of conventional and emerging optosemiconductor lighting industries highlights important differences of influence within the value chain. For solid state lighting, the significance of system integration shifts control away from large LED manufacturers and closer to the end user. Special focus on companies pursuing the system integrator role compares strategies for technology based niche players with strategies for joint venture companies formed by alliances of large lighting and semiconductor companies. Based on technology capability, industry conditions, and historical analogy, solid state lighting is projected to achieve wider adoption primarily through the growth of new applications and markets, not through the substitution of existing lighting business. / by Timothy L. Kelly. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2003. / Includes bibliographical references (leaves 58-59). / The importance of "star scientists" in new biotechnology venture formation has been studied by many scholars. However, it is not clear to degree to which their involvement leads to a successful venture. This study examines the importance of the Scientific Advisory Board (SAB), management and venture capital firms during new biotechnology venture creation. In particular, this study has determined if MIT and MIT-Harvard licensed technology companies are able to attract SAB members from top institutions, Board of Directors and CEOs from top pharmaceutical and biotechnology companies as well as top-tier venture capital firms, compared to other biotechnology start-ups in Massachusetts. The results of the study confirm that MIT-Harvard licensed technology companies are able to attract top tier people and venture capital investment during an economic boom as well as the downturn, and this reinforces the proposition that firms are "born" great, rather then achieve greatness at least in terms of the constellation of people who join the firm. / by Ali Yeyinmen. / S.M.M.O.T.

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2002. / Includes bibliographical references (leaves 120-121). / The pharmaceutical industry is now confronted with a discontinuous time period, especially in terms of its technology. In order to maintain their advantageous positions in the industry, pharmaceutical companies have to invest not only in internal R&D but also in external sources, since technologies in the industry are too broad to enable a company to cover all of the new technologies. Allotment of investment in internal and external R&D, however, is hard to determine; moreover, the selection of targets and styles of external technology acquisition by pharmaceutical companies requires deep deliberation on all the scientific and business aspects. In this thesis, I have analyzed the correlation between technology acquisition activities and the internal technological strength, or product development, in nine pharmaceutical companies in three countries: U.S., Japan, and Germany. Styles of technology acquisition deals vary among the three countries. German companies showed the most aggressive technology acquisition strategies in overall technology deals. U.S. companies exhibit strong technology acquisition strategies with prominent equity investment deals. Japanese companies were discreet about their technology acquisition deals, although they showed a similar degree of eagerness for product acquisition. The number of technology acquisition deals by Japanese companies, however, has increased during the past two or three years. A positive correlation between the number of all deals and product development (the number of pre-clinical drug candidates) was detected. On the other hand, there is no clear correlation between technology creation deals or technology frontier deals and product development. In order to assimilate the growing amount of external property, pharmaceutical companies must consider setting up an appropriate management organization because the deals between biotech enterprises and pharmaceutical companies involve dissimilar organizations in terms of culture, size, power, and expertise. I studied the organization of alliance management in Eli Lilly as an example. / by Hiroya Muranishi. / S.M.M.O.T.