Adapting Your Technological Base: The Organizational Challenge

Abstract

A common mistake in assessing an organization's technological base is narrowing the review to matters of technical competence. Managers need a framework for assessing the much broader question of how well their organizations are positioned to derive competitive advantage from technology. A step-by-step guide is presented that leads managers through the 4 components of the technological base: 1. technological assets, 2. organizational assets, 3. external assets, and 4. project management. Case studies of organizations in the defense industry illustrate how 2 companies' strategies for moving into a new business were shaped by the strengths and weaknesses of their respective technological bases. Of the 4 dimensions, it is usually the organizational assets that prove to be the limiting element. A hierarchy was found among the organizational assets: 1. skills, 2. procedures, 3. structure, 4. strategy, and 5. culture.