Industrial Management

MAY-JUN 2015

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may/june 2015 23 company, recently ceased production of the Wii video game console. The console debuted in 2006 and revolu- tionized the video gaming world with its motion-sensor technology. It was groundbreaking and paved the way for Xbox Kinect and Sony's PlayStation Move. However, Nintendo did not keep up with its competitors in the way of high-definition graphics, and Xbox and Sony outsold the Wii to the point where Nintendo decided that shutting down production was its best option. To excel in technology management, a manager needs to adapt to market changes and, referencing Porter's advice again, decide what not to do. "A company's search for competitive advantage through information technology often also spreads to affect industry structure as competitors imitate the leader's strategic innova- tions," Porter wrote. Although this example of Nintendo is not exactly "information technology," it demonstrates that imitation does occur, competitive advantage must be rediscovered, and companies may need to alter their strategy to adapt to competition. Nintendo has moved on from the Wii console and shifted focus toward the Wii U. The Wii U's difference is that, unlike its competitors, it uses a tablet-like device in gameplay. It is still too early to tell if the Wii U will be an example of excellence in technology management. Angela Ahrendts: Burberry, Apple and excellence Amazon was a case that demonstrated that adapting to customer buying behavior is part of excellence in technology management. Burberry, the iconic London fashion label, tripled its revenue in 2012-2013 under the reins of CEO Angela Ahrendts. Ahrendts has been an excellent manager. She was mindful of her customers and used the technology behind social media to market the brand to her target demographics and create a "coolness" factor around Burberry. In addition to marketing, flagship stores added to the coolness factor by having sales associates use iPads when assisting customers. Special technology sewn into some clothing triggers store mirrors to transform into screens and display catwalk images, and Burberry led the way in customers being able to order pieces straight from the catwalk. Ahrendts has left Burberry to move to Apple. She continued using her experience and expertise in fashion and adapting it to trends in technology with the development of the Apple Watch. Wearable technology is the next big VCR. This later was replaced by DVDs played in a DVD player. Now, many customers are using the Internet to stream media. Amazon partnered with Viacom Inc. and Discovery Communications Inc. to be a part of the streaming media business. This is yet another example of how Amazon pursues excellence in management technology by adapting to the ever-changing market and staying in tune with customer buying behavior and continuously using technology to create a competitive advantage. Jeff Bezos, CEO of Amazon, is continuing to develop new ways to serve customers better. The latest innovations are the new mini- helicopter-like drones. Depending upon how research and development proceed (not to mention regulatory permission), these drones could be used to deliver customer orders. They may turn out to be a bird's worst nightmare. Nintendo: Game over Innovation in the field of technology involves being bold and taking risks to capitalize on a first-move advantage. Throughout the years, there have been several blunders. Some of them include the video telephone, Apple's Open Doc software, Windows Millennium Edition, Sony's PS Vita, Ultra 3-D televi- sions and a slew of other examples. As Gray wrote: "Projects are often approached with trepidation by both IT [department] and business leadership, memories of the latest large-scale project failure fresh in their minds from the business press, or perhaps a sting- ingly painful implementation within their own company." In the pursuit of excellence, management must recognize when its products are no longer benefiting their organization and when it may be time to move on. It is also beneficial for management to have a high degree of openness and resiliency to combat the inevitable failed projects that come with the technology territory. Nintendo, a famous video game Management must recognize when its products are no longer benefiting their organization.

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