Technology Management

DISCOVERY

INVENTION

INNOVATION

TECHNOLOGY

Unearthing, sighting, finding(Find out or learn about a place, fact

etc. for the first time)

Creation, development(Make or design that did not exist

before)

Novelty, originality(Make changes or introduce new

things)

Skill, Know-how, expertise(Scientific study and use of mechanical

arts and applied sciences)

Scientific Discovery

Invention

Innovation

Technology

The atom

Machine to split the atom

Splitting the atom(Invention

+Exploitation)

Atom Bomb

TECHNOLOGY The branch of knowledge that deals with

industrial arts, applied science, or engineering. The processes used to change inputs into outputs. The application of knowledge to perform work. The theoretical and practical knowledge, skills,

and artifacts that can be used to develop products as well as their production and delivery system.

The application of science , especially for industrial or commercial objectives and the entire body of methods and materials used to achieve such objectives.

TECHNOLOGY (Defn)

We define technology as the practical implementation of learning and knowledge by individuals and organizations to aid human endeavor. Technology is the knowledge, product, tools , and systems used in creation of goods or in the provision of services.

SYSTEMS VIEW OF IMPLEMENTING TECHNOLOGY

INPUTS

HumanPhysicalFinancialInformation

TRANSFORMATIONAL PROCESS

Management Input Operations Production Integration of ideas and

actions

OUTPUTS

ProductsServicesLessons Learned

ORGANIZATIONAL ENVIRONMENT

FEEDBACK LOOPS

TYPES OF TECHNOLOGY

• New Technology

A new technology is newly introduced or implemented technology that has an explicit impact on the way a company produces products or provides services (Software).

• Emerging TechnologyAny technology that is not yet fully commercialized but will become so within five years (Genetic engineering, Nanotechnology).

• High Technology

– Advanced or sophisticated technologies.- employs highly educated people (scientists & engineers)

- its technology is changing at a faster rate than that of other industries- it competes with technological innovation- high levels of R&D expenditure- it has the potential to use technology for rapid growth, and its survival is

threatened by the emergence of competing technology

• Low Technology

Low technologies are utilized by a wide variety of industries having the following characteristics

- Employ people with low levels of education or skill, manual or semiautomatic operations, low levels of research expenditure, etc.

• Appropriate Technology

A good match between the technology utilized and the resources for its optimal use. The technology could be of any level – low, medium, or high.

• Tacit Technology

 Kind of knowledge that is difficult to transfer to another person by means of writing it down or verbalizing it e.g. design and use complex equipment requires all sorts of knowledge that is not always known explicitly, even by expert practitioners

• Codified technology

 To organize or arrange systematically, especially in writing

LEVELS OF DEVELOPMENT

Individual develop ideas, theories, or perspectives that are known only to them or their colleagues or the groups to which they belong. This tacit knowledge may be derived from their experiences, experimentation, or imagination.

The second level consists of tacit knowledge that is verified and codified through a scientific process of experimentation.

Finally, a level of development where the knowledge is put to use – physically embodied in products, services, or procedures.

Intuitive/Tacit

Codify / Verify

Science Formalized Knowledge

Develop

Physically Embodied Products and Processes

TECHNOLOGY AS SOCIALLY CONSTRUCTED

Technology development at all levels is a process of social construction. The development is the outcome of individuals making choices, individually and collectively. Thus four characteristics of technology are:

Opportunity (Opportunity for improvement triggers technology development)

Appropriability (Technology developed due to economic motives)

Transferability (Technology and Knowledge Transfer is not smooth)

Resources (Technology development consumes resources)

MANAGEMENT OF TECHNOLOGY

Management of technology is defined as “linking of engineering, science and management disciplines to plan, develop, and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organization. ”

Management of technology and

Innovation (Strategic and operational)

Engineering activities

Production and operation

procedures

Socio-Technical Systems Design

Group and Team Behavior

Manager’s Experience

and Organization

al History

Financial System

Management Science

Techniques

Decision-Making

Processes

MANAGEMENT OF TECHNOLOGY AND INNOVATION

Areas Influencing the MOT

• Socio-technical systems design• Group and Team behaviour• Managers’ experience and organizational history• Decision-making process• Management science techniques• Financial systems• Engineering activities• Production and Operations Procedures

MANAGEMENT OF TECHNOLOGY

Mgt. of technology is an interdisciplinary field that integrates science, engineering, and management knowledge and practice.

Managing technology implies managing the systems that enable the creating, acquiring, and exploitation of technology.

It involves assuming responsibility for creating, acquiring, and spinning out technology to aid human endeavors and satisfy customers’ needs.

The ideas incorporated in the preceding definitions are: The emphasis in the management of technology is to accomplish the goals of an organization and the value creation for investors is the primary goal of technology management in corporations. It focuses on the development of technological capability and its implementation or deployment in products and services.TM is linked to other management activities such as marketing or manufacturing.

MANAGEMENT OF TECHNOLOGY

IMPORTANCE OF MANAGING TECHNOLOGY

The National Task Force on Technology has listed five specific reasons individuals and organizations should be concerned about the management of technology

• The rapid pace of technological change demands a cross discipline approach if economic development is to occur in an effective and efficient manner to take advantage of technological opportunities.

• The rapid pace of technological development and the increasing sophistication of consumers have shortened product life cycles. The result of these factors is a need for organizations to be more proactive in the management of technology.

• There is a need to cut product development times as well as to develop more flexibility in organizations. The lead-time from idea to market is being reduced by the emergence of new or altered technologies.

• Increasing international competition demands that organizations must maximize competitiveness by effectively using new technologies.

• As technology changes, the tools of management must change, but the process of determining what those new tools should be is in its infancy.

TWO COMPLEMENTARY PERSPECTIVES IN MANAGEMENT

MARKET BASED VIEWS

Traditionally, business firms are defined by the markets they serve: Who are our customers? Which of their needs are we seeking to serve?

During 1970’s and the 1980’s most management literature and practices were concerned about the industry environment of the firm, its competitive positioning relative to rivals, and how it satisfied its customers. This perspective came to be known as market-based perspective.

RESOURCE –BASED VIEW

When external environment is in state of flux, the firm itself in terms of its bundle of resources and capabilities , may be a much more stable basis on which to define its identity.

To develop ideas about the management of technology within an open system view, we will employ four major concepts:

The firm as a value chain

Industries as competitive domain

Forms of technological change

Value creation and competitive advantage

INDUSTRIES AS COMPETITIVE DOMAINS

We can distinguish industries into three categories

Capacity-driven industries

Customer-driven industries

Knowledge driven industries

FORMS OF TECHNOLOGICAL CHANGE

Process technology Includes work methods , equipments,

distribution, and logistics

Product technology Elements of technology embodied in the product

and services

VALUE CREATION AND COMPETITIVE ADVANTAGE

Value Creation

Competitive Advantage

IMPORTANT QUESTIONS

1) Define Technology.2) Discuss the levels of technology development?3) Technology Development is a process of social

construction. Discuss.4) What are the characteristics of technology?5) What is meant by Management of technology?6) What do you understand by Resource-based views and

Market-based views in management of technology?7) Value chain provides a mechanism to capture the cost

structure of the firm. Discuss.8) Distinguish between Process technology and Product

technology.9) What do you mean by Value creation and Competitive

edge?