MANAGEMENT OF TECHNOLOGY Managing Effectively in Technology-Intensive Organizations Hans J. Thamhain WILEY John Wiley & Sons, Inc. This book is printed on acid-free paper. @ Copyright 0 2005 by John Wiley & Sons, Inc. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail:
[email protected] Limit of LiabilityDisclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-PublicationData: Thamhain, Hans J. (Hans Jurgen), 1936Management of Technology: managing effectively in technology-intensive organizations / Hans Thamhain. p. cm. ISBN- 13: 978-0-471-41551-0 (cloth) ISBN-10: 0-471-41551-0 (cloth) 1. High technology industries-Management. 2. Information technology-Management. 3. Technological innovations-Management. I. Title. HD62.37.T49 2005 6584~22 2005004374 Printed in the United States of America 10 9 8 7 6 5 4 3 2 CONTENTS xi Preface 1 2 1 Challenges of Managing in High-Technology 1.1 Managing in Today’s High-Tech Business Environment I 2 1.2 MOT Scope and Focus I 3 1.3 Developing a Formal Definition I 5 1.4 The Special Role of Engineering Management I 7 1.5 Global Dimensions I 8 1.6 Impact of Internet and e-Commerce I 10 1.7 Technology and Society I 11 1.8 Future Trends I 12 1.9 Summary of Key Points and Conclusions I 13 1.10 Crit