Technology strategy in data networking industry acquisitions

• Main Author: Ohkubo, Kazuhiko, 1965-
• Other Authors: Edward B. Roberts.
• Format: Others
• Language: English
• Published: Massachusetts Institute of Technology 2005
• Subjects: Management of Technology Program.
• Online Access: http://hdl.handle.net/1721.1/9280

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2000. === Includes bibliographical references (leaves 119-123). === The telecommunications industry faces growing competition from deregulated markets and rapid technology change, and it is becoming increasingly difficult for companies to invest in an ever-widening range of technology segments such as equipment, networks, and application services. Every player needs an efficient strategy for achieving C()St effectiveness of processes and quick commercialization of innovations. In order to identify solution to these problems, this thesis focuses on technology strategies in data networking industry acquisitions. This thesis follows the acquisition efforts in recent years of two technology industry giants: Cisco Systems and Lucent Technologies. It probes the companies' motivations and rationale behind their acquisitions, the impact upon the firms' portfolio of technological competencies, and potential and actual penetration of new markets and access to new technologies as a result of the acquisitions. In addition, organizational issues posed by technology management and other subsequent effects on their core competencies are discussed. Comparative analyses of these companies led to key considerations of success/failure factors in acquisition and development (A&D) activities related to firm selection, integration, and evaluation processes. Effective formulas for A&D are summarized as they relate to critical strategic assets such as market, product, technology, value chain, IT, location, organization, people, culture, and vision. As a result of this study, the thesis produces guidelines for the technology strategy of Nippon Telegraph and Telephone Corporation (NTT). The Japanese telecom industry is currently exposed to more severe competition than ever before due to the partial breakup of NTT in July 1999. The guidelines focus on the importance of recognizing both the A&D execution model and the feasibility of the recommended formulas and execution of consistent technology strategies based on past internal/external know-how and experiences. === by Kazuhiko Ohkubo. === S.M.M.O.T.