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C362etukansi.fm Page 1 Monday, June 21, 2010 10:58 AMC 362OULU 2010U N I V E R S I T Y O F O U L U P. O. B . 7 5 0 0 F I - 9 0 0 1 4 U N I V E R S I T Y O F O U L U F I N L A N DU N I V E R S I TAT I SS E R I E SSCIENTIAE RERUM NATURALIUMProfessor Mikko SiponenHUMANIORAUniversity Lecturer Elise KärkkäinenTECHNICAACTAUNNIIVVEERRSSIITTATATIISS OOUULLUUEENNSSIISSUKari SahlmanE D I T O R SKari SahlmanABCDEFGO U L U E N S I SACTAA C TAC 362ELEMENTS OFSTRATEGIC TECHNOLOGYMANAGEMENTProfessor Pentti KarjalainenMEDICAProfessor Helvi KyngäsSCIENTIAE RERUM SOCIALIUMSenior Researcher Eila EstolaSCRIPTA ACADEMICAInformation officer Tiina PistokoskiOECONOMICAUniversity Lecturer Seppo ErikssonEDITOR IN CHIEFUniversity Lecturer Seppo ErikssonPUBLICATIONS EDITORPublications Editor Kirsti NurkkalaISBN 978-951-42-6249-4 (Paperback)ISBN 978-951-42-6250-0 (PDF)ISSN 0355-3213 (Print)ISSN 1796-2226 (Online)FACULTY OF TECHNOLOGY,DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT,UNIVERSITY OF OULUCTECHNICATECHNICA

ACTA UNIVERSITATIS OULUENSISC Te c h n i c a 3 6 2KARI SAHLMANELEMENTS OF STRATEGICTECHNOLOGY MANAGEMENTAcademic dissertation to be presented with the assent ofthe Faculty of Technology of the University of Oulu forpublic defence in Tönning-sali (Auditorium L4),Linnanmaa, on 12 August 2010, at 12 noonU N I V E R S I T Y O F O U L U, O U L U 2 0 1 0

Copyright 2010Acta Univ. Oul. C 362, 2010Supervised byProfessor Harri HaapasaloReviewed byProfessor Dilek CetindamarProfessor Saku MäkinenISBN 978-951-42-6249-4 (Paperback)ISBN 978-951-42-6250-0 N 0355-3213 (Printed)ISSN 1796-2226 (Online)http://herkules.oulu.fi/issn03553213/Cover designRaimo AhonenJUVENES PRINTTAMPERE 2010

Sahlman, Kari, Elements of strategic technology managementFaculty of Technology, Department of Industrial Engineering and Management, University ofOulu, P.O.Box 4610, FI-90014 University of Oulu, FinlandActa Univ. Oul. C 362, 2010Oulu, FinlandAbstractIn an increasingly complex economic and social environment, high technology companies arefacing accelerating technological development and global technology-based competition. Due tothe critical role of technology in a competitive environment, strategic technology management isimportant for enterprises. For the long-term success, companies must develop and sustain theirtechnological capabilities to create internal and external impacts within an ambiguous socioeconomic context.In the absence of commonly agreed frameworks, elements of strategic technology managementare discovered in this dissertation. The research is conducted in the context of high technologyproduct companies, to develop a framework based on literature findings, and by obtainingqualitative information on enterprise practices.For the framework development, integrated management theory is applied to considertechnology management in strategic dimension. The framework consists of structures, objectivesand impacts categories, each having six main elements which contain several sub-classes.In the research, perceptions of enterprise practitioners indicated that the entire field of strategictechnology management is confusing and diversely practiced. The contribution of this dissertationis benefiting practitioners by providing an outline to assist in defining and developing thepractices. For the main theoretical contribution, the framework unites strategic management,organizational management, and technology management concepts in enterprise context.As a practical implication, it is suggested that companies should consider establishing andintegrating strategic technology management as a distinguishing managerial discipline amongstother organizational functions. Enterprises should consider defining and developing the necessarystructures and objectives for strategic technology management, to proactively manage impacts oftechnology for competitiveness of the enterprise, and for sustainable development of its socioeconomic environment.In conclusion, the framework provides for scholars and practitioners a logical structure toelements of strategic technology management.Keywords: strategic management, technology management

To Bacchus

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PrefaceThe motivation for a research has to stem from the needs of the people,companies and institutes involved.In the autumn 2007, the researcher was assigned responsibility on developingtechnology and architecture management practices for product technology inNokia Siemens Networks. The company was established in the spring 2007 as amerger of Nokia Networks and Siemens Communications. The new company hadto start consolidation of the businesses and the company’s resources in a fiercelycompetitive business environment. The intent was to leverage the portfolio of theproducts and technologies as efficiently and effectively as possible. Consequently,the researcher’s principal need was to gain comprehensive understanding on whatstrategic technology management is.There are several means to acquire knowledge: learning by doing, attendingtraining, reading books and conducting research. For the researcher, it becameevident that there is no single solution that would sufficiently serve the need ofgaining knowledge on technology management. Therefore conducting studies andresearch, and making a doctoral thesis on strategic technology management,appeared feasible to increase personal knowledge on the subject.For publicly funded institutes, like University of Oulu, it is important tointeract with the society to create innovations, promote competences of peopleand improve competitiveness of companies. Performance of universities ismeasured, among other things, by the number of yearly graduates and the numberof publications. In this respect, conducting research provides opportunities forpublications, and also a possibility to involve the researcher in technologymanagement related courses to provide study topics and exercises for the students.The purpose of this dissertation is to serve the above mentioned diverse needs,and to contribute to discussion on strategic technology management.7

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AcknowledgementsActually, it took some 23 years to complete this dissertation, for which the formalPhD studies were remarkably intensive. Continuous learning and involvement intechnology management related duties at Nokia and Nokia Siemens Networkssince 1987 can in this respect be regarded as practical university education.Therefore I appreciate guidance, support and contribution of all my superiors,colleagues and team mates during this time. For the latest stint, for which Icommitted myself for three years, I wish to thank Lauri Oksanen, Head ofResearch at Nokia Siemens Networks, for a challenging task that he assigned tome, and enabled participation in scientific conferences.For the opportunity and support during my studies at the Department ofIndustrial Engineering and Management in University of Oulu, I thank ProfessorPekka Kess and all the personnel at the department. I thank Pekka also forproviding me insights into strategic management.For conducting the studies, I am indebted to my supervisor Professor HarriHaapasalo. We had all the time a grand plan, extremely focused parallel activitiesongoing, and we were able to proceed steadily in a timely manner banishingwaste. To this process of becoming wiser – as Harri phrases it – Harri contributedwith his respectable devotion, extraordinary conceptual talent and exuberant joyof life. The entire thesis process was really demanding, rewarding and enjoyable.Thank you Harri, very much indeed.I highly respect Dr Mike Gregory and Dr Robert Phaal from the University ofCambridge, for their ideas and work on technology management process concepts.During my one month study leave, I was able to make a short visit to Cambridge,to work on a joint paper with Rob and his colleagues. The study leave wasfinancially supported by the Finnish Doctoral Program in Industrial Engineeringand Management, which I sincerely acknowledge; it was a very motivating and aproductive period. I also want to thank Dr Kari Hakkarainen for interestingdiscussions on technology management. In the summer 2007, when I wasenjoying the extra 2 weeks of summer holiday, granted after 20 years ofemployment at Nokia, I read Kari’s dissertation on strategic technologymanagement, which inspired me to consider trying to write one of my own.For acting as a tutor in my early study phase, and for all the support, I amgrateful to Hanna Kropsu-Vehkaperä who made an enormous effort inarrangements of the first company interviews. I also want to thank MarjutUusitalo for her assistance in arranging the second interviews. All company9

representatives who took part in the interviews deserve thanks for providing theirtime and knowledge. The almost 50 students, taking part in the researchassignment during the technology management courses in the autumn 2008 and inthe spring 2009, were of invaluable help in carrying out and documenting theinterviews. I want to thank warmly all of you for the good work.For indispensable advice on writing journal papers, I want to thank the ChiefEditors Dr Binshan Lin from Lousiana State University, USA; Dr KongkitiPhusavat from Kasetsart University, Bankok, Thailand; Professor AngappaGunasekaran from University of Massachussets, USA; and the anonymousreviewers of the papers for their constructive comments.In many exhaustive but effective reviews Dr Pekka Belt, Dr Janne Härkönenand Dr Matti Möttönen, the three musketeers from University of Oulu, providedtheir insights into writing a dissertation summary. We reviewed large and smallthings, we read between the lines, and we even paid attention to the comma afterthe dot of et al., whether it is written in italics or in regular font. The reviewpractice definitely advanced the thesis summary writing significantly. Pekka,Janne and Matti, your contribution was priceless.Pre-examiners of the thesis summary, Professor Dilek Cetindamar fromSabanci University, Istanbul, Turkey and Professor Saku Mäkinen from TampereUniversity of Technology, Finland also deserve many thanks for their valuablefeedback to improve the summary.I would like to thank my wife Jaana and our delightful black belt level skilleddaughters Marjo and Marjaana, as well all my relatives and friends for theirencouragement and support. Special thanks to my friend Pekka Seppänen and hisneighborhood, I always kept in mind one of the first comments to my plan tomake a PhD: “If you start it, you will surely finish it”.With all the good spirit enjoyed, one starts to think that the ancient cultureswere right on their assumption that out there exists something taking care of thefun. And this something, undoubtedly, has incarnated in the form of the mostfaithful companion, from water fetching agile tracking dog, our beloved poodle –Bacchus.Now it is time to turn the page, and as always in life: move on.Oulu, May 201010Kari Sahlman