An analysis of the strategic management of technology in the context of the organizational life-cycle

Abstract

High-technology, new-economy firms seem to operate under different rules than their old-economy counterparts. The fast pace of disruptive invention, rapid product development cycles, short product market life and intense, frequently unanticipated competition drive technology strategies. Organizational growth and tight labor markets for talented employees influence technology capacity and capabilities. Valuation and profitability measurements seem to violate long-standing financial trends. All these reinforce a perception that these firms represent a radical departure from the stoic, traditional organization. This thesis explores the product development and organizational history of a leading high technology firm, Sun Microsystems. Using a model based upon the organizational life cycle and principles of systems architecture, we capture the common and unique characteristics of how the firm is dealing with changing markets, technology, complexity and growth. The study tests the hypothesis that, while Sun competes in a fast-paced arena, many problems experienced during periods of rapid growth are, in fact, endemic to any organization under similar circumstances. As this hypothesis holds, we look at current technology and process initiatives in the company to assess whether they are appropriately addressing the right issues.