tec change

8/14/2019 Tec Change

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Strengthening SME CapacitiesStrengthening SME Capacitiesthroughthrough

Technology ManagementTechnology Management


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Business DefinitionBusiness Definition

Customer Functions (What)

Customer Group (Who)Alternative Technologies(How)

Ack.: Derek Abell - Defining the Business: Starting Point of Strategic Planning


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Building Competitive AdvantageBuilding Competitive Advantage

Around TechnologiesAround Technologies In the globalized world, mobility of theIn the globalized world, mobility of the

capital, communication and transportcapital, communication and transporttechnologies diminish competitivetechnologies diminish competitive

advantageadvantage Thus businesses have more difficultyThus businesses have more difficulty

finding ways of differentiationfinding ways of differentiation

The alternative is to be more and moreThe alternative is to be more and moreinnovative through use of technology ininnovative through use of technology inproducts, services and processesproducts, services and processes


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Build Competitive AdvantageBuild Competitive Advantage

Around TechnologiesAround Technologies Businesses must therefore build competitiveBusinesses must therefore build competitive

advantage around technologiesadvantage around technologies

Develop and implement TechnologyDevelop and implement TechnologyStrategy in the same way as the financial,Strategy in the same way as the financial,

marketing and operational strategy.marketing and operational strategy.

Integrate this strategy with the environment,Integrate this strategy with the environment,customers, suppliers and other relevantcustomers, suppliers and other relevant

agencies for the Firm.agencies for the Firm.


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The Value Chain andThe Value Chain and

TechnologyTechnology Competitive advantage is based on firm specificCompetitive advantage is based on firm specific

combination of scientific and technical knowledgecombination of scientific and technical knowledgeand know-howand know-how

leading toleading to

&&

embedded inembedded in

products, services and management systemsproducts, services and management systems

Technologies are embedded not only in productTechnologies are embedded not only in productbut in all the primary and support activities of thebut in all the primary and support activities of the

Firm.Firm.


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Competition and demanding customersCompetition and demanding customers

have shifted the balance to demand sidehave shifted the balance to demand side

Industry has been moving away fromIndustry has been moving away fromtraditional high volume / low variety modeltraditional high volume / low variety modelto low volume / high variety situation toto low volume / high variety situation toserve market nichesserve market niches

Further complications because of shortenedFurther complications because of shortened

product lifeproduct life(Each model change requires changes in plant(Each model change requires changes in plant

lay out, handling / transport, storage and skills)lay out, handling / transport, storage and skills)


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Customer Satisfaction throughCustomer Satisfaction through

Non-Price FactorsNon-Price Factors

The emerging trend is to move away fromThe emerging trend is to move away fromlow cost production to higher added valuelow cost production to higher added value

through non-price factors like design,through non-price factors like design,

quality and reliabilityquality and reliability


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Changing Basis of CompetitionChanging Basis of Competition

Non Price FactorsNon Price Factors

Customers DemandCustomers Demand

More varietyMore variety

More customizationMore customization

Frequent model changesFrequent model changes

High qualityHigh quality

Faster deliveryFaster delivery Better ServiceBetter Service

Advanced designAdvanced design


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Understanding the TechnologyUnderstanding the Technology

Management ChallengeManagement Challenge Traditional trade offs between price andTraditional trade offs between price and

quality or between price and choice arequality or between price and choice arereplaced by competitive prices and wholereplaced by competitive prices and whole

set of non-price factors.set of non-price factors. Quality used to be a differentiator earlier -Quality used to be a differentiator earlier -

now if you cannot offer quality, you cannotnow if you cannot offer quality, you cannot

be in the market.be in the market. Order Winning factors are replacingOrder Winning factors are replacing

Order Qualifying factorsOrder Qualifying factors


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Managing GlobalizationManaging Globalization

Managing TechnologyManaging Technology

Managing FinanceManaging Finance

Managing MarketManaging Market Managing Digital DivideManaging Digital Divide

Technology is the key asset for a

Firms competitiveness


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Interplay of Technology ElementsInterplay of Technology Elements

TECHNOLOGY

HARDWARE HUMAN RESOURCES

TECHNICALINFORMATION ORGANISATIONAL FRAMEWORK

STRATEGY:

SUPPORT THESE DISTINCT ELEMENTS TO IMPROVE TECHNOLOGY

CAPABILITY OF SMALL INDUSTRIES


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The Imperfect TechnologyThe Imperfect Technology

MarketMarket Technology is a marketable commodityTechnology is a marketable commodity

Technology transfer is a commercialTechnology transfer is a commercial

transaction between seller & buyertransaction between seller & buyer Technology ownership is protected byTechnology ownership is protected by

proprietary rightsproprietary rights


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The Technology Market isThe Technology Market is

ImperfectImperfect Critical information is closely guarded andCritical information is closely guarded and

price is determined by relative bargainingprice is determined by relative bargaining

positions of the seller & buyerpositions of the seller & buyer

A buyer with high technological capabilityA buyer with high technological capability

stands a better chance of negotiatingstands a better chance of negotiating

favourable termsfavourable terms


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Technology Creation at Users EndTechnology Creation at Users End

Successful technology upgradation processSuccessful technology upgradation processwould include acquiring the knowledgewould include acquiring the knowledge

needed to face the changes and internalizingneeded to face the changes and internalizing

the knowledge so acquired.the knowledge so acquired.

Thus stress has to be on the process ofThus stress has to be on the process of

technology creation at the level of the usertechnology creation at the level of the user

rather than transfer of technology,rather than transfer of technology,

production techniques or equipment.production techniques or equipment.


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Technology Creation at Users EndTechnology Creation at Users End While transfer of technology puts the emphasis onWhile transfer of technology puts the emphasis on

the supplier, technology creation process puts thethe supplier, technology creation process puts theemphasis on the user by trying to solve a specificemphasis on the user by trying to solve a specific

problem in a given context.problem in a given context.

The supplier can deliver information and services,The supplier can deliver information and services,the user has to know his precise requirementthe user has to know his precise requirement

Thus in the technology creation process the role ofThus in the technology creation process the role ofthe user is much increased and the role of thethe user is much increased and the role of thesupplier is relatively reduced.supplier is relatively reduced.

Ack: J.D. Bandt (CNRS, France)Ack: J.D. Bandt (CNRS, France)


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Innovations DriveInnovations Drive

CompetitivenessCompetitiveness

Three dimensions around whichThree dimensions around which

developments take place in a commercialdevelopments take place in a commercial

entity :entity :

Product: new or modified,Product: new or modified,

Market: new or existing,Market: new or existing,

Technology: new or existingTechnology: new or existing

Each change in one or more of the

three dimensions will be an innovation


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The Value Chain andThe Value Chain and

TechnologyTechnology

M

AR

G

I

N

Ac

tivitie

s

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Inbound

LogisticsOperations

Outbound

Logistics

Marketing

and Sales

Service

M

A

R

G

I

N

Su

ppor

t

Primar

y

Acknowledgement - UNIDO: Guidelines for the Formulation of

Technolo Strate ies for Hi-tech Com anies


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The Dynamic Nature ofThe Dynamic Nature of

TechnologyTechnology Developing a Technology Strategy isDeveloping a Technology Strategy is

complex due to ever changing nature ofcomplex due to ever changing nature oftechnology.technology.

SimultaneousSimultaneous MARKET PULLMARKET PULL &&SCIENCE PUSHSCIENCE PUSH ensure rapid changes inensure rapid changes intechnology in various sectorstechnology in various sectors

Pace of technological change is dictated byPace of technological change is dictated byhigh investment in R&D in developedhigh investment in R&D in developedcountriescountries


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The Dynamic Nature ofThe Dynamic Nature of

TechnologyTechnology

Hitting a moving target Hitting a moving target

Dimensions of the challenge:Dimensions of the challenge:

Range of factors is increasingRange of factors is increasing

Price remains importantPrice remains important

Increasing non-price factorsIncreasing non-price factors

Changing pattern of key factorsChanging pattern of key factors

Firms need to be agile, able to react andFirms need to be agile, able to react andkeep up with changeskeep up with changes


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The treeThe tree

draws on its rootsdraws on its roots

the underlying knowledge basethe underlying knowledge base

and develops branchesand develops branches

the structured arrangement of technological knowledgethe structured arrangement of technological knowledge

on which fruiton which fruit

new products, processes and servicesnew products, processes and services can growcan grow


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Key TrendsKey Trends

Emergence of major new fieldsEmergence of major new fields BiotechnologyBiotechnology

IT & Communication technologyIT & Communication technology

New MaterialsNew Materials Micro machines / nano technologiesMicro machines / nano technologies

Integration and blurred boundariesIntegration and blurred boundaries Integration within activitiesIntegration within activities

Integration between activitiesIntegration between activities Integration between processesIntegration between processes

Integration between organisationsIntegration between organisations


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Key Trends (contd.)Key Trends (contd.)

New organisational conceptsNew organisational concepts

Cellular organisationCellular organisation

Lean ManufacturingLean Manufacturing

IncreasingIncreasing

rates of change in technologies and productsrates of change in technologies and products

expenditure on R&Dexpenditure on R&D

linkages and alliances to coop with complexitylinkages and alliances to coop with complexity

Parallel rather than sequential developmentParallel rather than sequential development


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Technology MappingTechnology Mapping

Can use

but need

to keep

track of

best

sources of

supply

Invest in

R&D

MUSTMAINTAIN

Keep

close

watch

Keep

watching

Basic Proprietary Pacing Emerging

Possible future

products /

processes

Planned new

products /

processes

Core products /processes

Basic / Generic Technologies, Proprietary Technologies,Basic / Generic Technologies, Proprietary Technologies,

Pacing Technologies and Emerging TechnologiesPacing Technologies and Emerging Technologies


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Managing TechnologyManaging TechnologyIn order to grow organisations do not just have toIn order to grow organisations do not just have to

build technological competence they are alsobuild technological competence they are alsohave to learn how to do this effectively.have to learn how to do this effectively.

What are the best ways for acquiring andWhat are the best ways for acquiring and

deploying knowledge?deploying knowledge? How can it be done with a high chance of success?How can it be done with a high chance of success?

How can the learning processes around anHow can the learning processes around an

organisation be integrated and captured?organisation be integrated and captured?


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Concept

Reflection

Experience

Experiment


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Tools and mechanisms for effectiveTools and mechanisms for effective

learning of technology managementlearning of technology management

Pilot projectsMeasurement

DocumentationTraining and

development

Project evaluation

Designed

experiments and

simulations

Formal planning

reviews

Structured audits

R & D activitiesNew structures

and processdesigns

Benchmarking

Capture

experience on

video, via diaries

project records,etc.

Sharing

experience via

display, direct

exchange, etc.

Testing and

prototyping

Theories and

models

Post project

reviews

ExperienceExperimentConceptualiseReflection

Ack:- Learning Cycle (Kolb & Fry)


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Impact of Technological ChangeImpact of Technological Change

Technological change allows firms toTechnological change allows firms to

produce the same rate of output using fewerproduce the same rate of output using fewer

inputsinputs

Technological change may be input neutral,Technological change may be input neutral,

labour saving or capital savinglabour saving or capital saving

Single most source of economic growth inSingle most source of economic growth in

the USA has been Technological Changethe USA has been Technological Change


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Response Strategy to cope withResponse Strategy to cope with

ChangeChange Positioning :Positioning :

Is the SME dependent on a single largeIs the SME dependent on a single largecompany?company?

Is the SME dependent on a large number ofIs the SME dependent on a large number ofsmall customers?small customers?

Is the SME vulnerable from a supplierIs the SME vulnerable from a supplierperspective?perspective?

What are the risks and the opportunities to thisWhat are the risks and the opportunities to thisposition being engendered by the newposition being engendered by the newcommercial context as identified?commercial context as identified?


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Change (Contd.)Change (Contd.) ProcessesProcesses

What is the process that is used in the manufacture of theWhat is the process that is used in the manufacture of theproduct?product?

Do we clearly understand it?Do we clearly understand it?

Is there a different way of achieving the same end result?Is there a different way of achieving the same end result? What are the elements and chemicals used in itsWhat are the elements and chemicals used in its

manufacture?manufacture?

What are the environmental resources used?What are the environmental resources used?

Is there a licensing implication in the process?Is there a licensing implication in the process?

Are there risks from the stakeholder circle?Are there risks from the stakeholder circle?

Is the process amenable to change?Is the process amenable to change?

What type of precaution, prevention and elimination ideasWhat type of precaution, prevention and elimination ideascould be generated?could be generated?


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Change (Contd.)Change (Contd.) ProductsProducts

What product is the company making?What product is the company making?

Is that product environmentally acceptable?Is that product environmentally acceptable?

Are there short-, medium-, or long-term risks inAre there short-, medium-, or long-term risks in

the continuation of this product?the continuation of this product?

Should this product be re-designed to takeShould this product be re-designed to take

account of the environmental issue?account of the environmental issue? What are the risks and what are theWhat are the risks and what are the

opportunities presented?opportunities presented?


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Change (Contd.)Change (Contd.) TechnologiesTechnologies

Have technologies moved on?Have technologies moved on?

Is there an opportunity to innovate withIs there an opportunity to innovate with

technology?technology?

Is there room to modify existing technologies?Is there room to modify existing technologies?

Could these technologies be better used?Could these technologies be better used?

Is operator training adequate?Is operator training adequate?

What are the risks in opportunities?What are the risks in opportunities?


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Change (Contd.)Change (Contd.) CompetitorsCompetitors

Who are the enterprises competitors?Who are the enterprises competitors?

Who are the local, national and internationalWho are the local, national and international

competitors?competitors? What are these competitors doing?What are these competitors doing?

Are they designing products and processes for theAre they designing products and processes for the

environment?environment?

Are they marketing their products in an innovative way?Are they marketing their products in an innovative way?

Are they driving down costs through environmentalAre they driving down costs through environmental

innovation?innovation?

What risks do I face in comparison to my competitors?What risks do I face in comparison to my competitors?


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TECHNOLOGY CLIMATETECHNOLOGY CLIMATE

Uniform measures for technologyUniform measures for technologyupgradation may not succeed even in theupgradation may not succeed even in thesame sector of industry as measures adoptedsame sector of industry as measures adopted

at different places can yield different resultsat different places can yield different resultsdue to technology climate being differentdue to technology climate being differentfrom one region to another and from onefrom one region to another and from onesector to another. In a supportivesector to another. In a supportive

technology climate, better results would betechnology climate, better results would beobtained than in a less supportive climate.obtained than in a less supportive climate.

li i lQ li F i D l


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Quality Function DeploymentQuality Function DeploymentAllocating Design & Mfg. Resources to FeaturesAllocating Design & Mfg. Resources to Features

Most Valued by CustomerMost Valued by Customer

313

15

0

50

8

70

42

80

48

336

0

70

20

10

100

42

64

30

329

30

0

30

20

90

35

64

60

Total

50103Feature 8

01007Feature 7

10465Feature 6

45102Feature 5

710910Performance 4

6657Performance 3

10888Operating Cost

85106Price

Competitor Bs

Score Total

Competitor As

Score Total

Your Product

Score Total

Customer

Weightage

Product Feature

Ack. QFD Institute


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Accessing New TechnologiesAccessing New Technologies

Literature shows eleven ways to access new technologiesLiterature shows eleven ways to access new technologies

2.2. In-house R&DIn-house R&D

3.3. Non-equity R&D joint venturesNon-equity R&D joint ventures

4.4. Equity R&D joint venturesEquity R&D joint ventures

5.5. Equity R&D consortiaEquity R&D consortia

6.6. Sub-contracted R&DSub-contracted R&D

7.7. License purchaseLicense purchase

8.8. Patent purchasePatent purchase

9.9. License swapLicense swap

10.10. Specialists recruitmentSpecialists recruitment

11.11. Firm take-overFirm take-over

12.12. Joint take-overJoint take-over


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Science Technology Innovation

Best of Institution-Industry Linkages

Key Factors of Change


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R&D labs &

Institutions

Technology

Innovation

Industry

Best Practices

Industry-Institution Linkages


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PROBLEMPROBLEM

How to introduce market oriented behavior into theHow to introduce market oriented behavior into the

R&D system?R&D system?

RESULTING INRESULTING IN

Improvement in the level of commercialization ofImprovement in the level of commercialization of

R&DR&Dresultsresults


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IMPROVE THE LINKAGES BETWEENIMPROVE THE LINKAGES BETWEEN

PRODUCTION SECTOR AND R&DPRODUCTION SECTOR AND R&D

INSTITUTIONS THROUGHINSTITUTIONS THROUGH

Establishment of technology promotionEstablishment of technology promotioncenters.centers.

Increased participation of end users in theIncreased participation of end users in thedecision making process .decision making process .


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Develop / Improve linkages between basic &Develop / Improve linkages between basic &

applied research through cooperative relationshipapplied research through cooperative relationship

with industrial enterprises.with industrial enterprises.

Combine the production capabilities (engineeringCombine the production capabilities (engineering

/tech) of the enterprises with the intellectual/tech) of the enterprises with the intellectual

capabilities of research organizations.capabilities of research organizations.

Developing Technology LinkagesDeveloping Technology Linkages


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Establish applied research companies to take up contractEstablish applied research companies to take up contractresearch for private companies.research for private companies.

Promote horizontal linkages among firms - adoptPromote horizontal linkages among firms - adopt

consortium approach for setting up common R&Dconsortium approach for setting up common R&Dfacilities.facilities.

Competing enterprises within and across national bordersCompeting enterprises within and across national borders

are forming strategic alliances for joint R&Dare forming strategic alliances for joint R&D.(European.(Europeannetworks like ESPIRIT for information technology, RACEnetworks like ESPIRIT for information technology, RACEin telecom, BRITE in manufacturing technology, EUREKAin telecom, BRITE in manufacturing technology, EUREKAin high technologyin high technology))



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Encourage inter company strategic alliances extending toEncourage inter company strategic alliances extending todeveloped countries. e.gdeveloped countries. e.g

Singapore govt. initiated Digital Media Consortium bringingSingapore govt. initiated Digital Media Consortium bringing

together three public research institutes and three local multimediatogether three public research institutes and three local multimedia

companies to collaborate with Media Lab at MIT,USA.companies to collaborate with Media Lab at MIT,USA.

Power PC Consortium in Taiwan collaborating with Motorola &Power PC Consortium in Taiwan collaborating with Motorola &IBM to develop personal computer products using Power PCIBM to develop personal computer products using Power PC

microprocessor.microprocessor.

Network RNetwork R&D systems in the region to disseminate&D systems in the region to disseminateinformation at national level about new technologies forinformation at national level about new technologies for

small &medium enterprises.small &medium enterprises.



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Create dedicated web portals facilitatingCreate dedicated web portals facilitatingtechnology searchtechnology search

DDevelop suitable entrepreneurial courses for scientists andevelop suitable entrepreneurial courses for scientists andresearch personnel.research personnel.

Encourage secondment of research personnel toEncourage secondment of research personnel toindustryindustry particularly during commercialization ofparticularly during commercialization ofresearch projects.research projects.

Establish Science & Technology parks and businessEstablish Science & Technology parks and businessincubators.incubators.



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TTechnology blending can create new markets.echnology blending can create new markets. (Integration(Integration

of newly emerging technologies with traditionalof newly emerging technologies with traditional

technologies)technologies)

Legal framework - no linkages can work without strongLegal framework - no linkages can work without strong

government support.government support.

Reward risk takers and utilize the dynamism of privateReward risk takers and utilize the dynamism of private

sectorsector


International Cooperation InitiativesInternational Cooperation Initiatives


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International Cooperation InitiativesInternational Cooperation Initiatives

Identify strong and viable Indian Enterprises andIdentify strong and viable Indian Enterprises andplay upon their strengthsplay upon their strengths

Thrust is on sustainablepartnerships

and not on one-way transactions

I t ti l S t I iti tiI t ti l S t I iti ti


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International Support InitiativesInternational Support Initiatives

Strengthening the present activities:Strengthening the present activities:

Exchange of Business/Technology missionsExchange of Business/Technology missionswith various countries.with various countries.

Facilitating Enterprise to EnterpriseFacilitating Enterprise to Enterprisecooperation, JVs, Technology Transfer &cooperation, JVs, Technology Transfer &other forms of sustainable collaboration.other forms of sustainable collaboration.

International Partner Institutions


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Small Business Corporation (Formerly known as Small & MediumIndustry Promotion Corporation - SMIPC), South Korea

Bundesverband Mitteistandische Wirtschaft (BVMW), Germany

Confederation Of Small Industries (CONFAPI), Italy

Israel SMEs Authority , Israel (Formerly SBAI)

Taipei World Trade Center (TWTC), Taiwan

Social Fund for Development (SFD), Egypt

Proposed model for PDTCs Fostering Industry Institution


49/50

Regional Pole

or Technology

Management

Center

Project 1 P 2 P 3 P n

Technology

Pole I

Technology

Pole II

Technology

Pole n

Universities

Research Labs

High TechCompanies

Training

Fund

Mobilization

Govt./Localbody relation

Specialized projects

Data & Information

Center Intranet

Proposed model for PDTCs Fostering Industry-Institution

Linkages


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AcknowledgementAcknowledgement

Material in this presentation has been takenMaterial in this presentation has been takenfrom various UNIDO publications includingfrom various UNIDO publications including

UNIDO - ICS Trieste Manual onUNIDO - ICS Trieste Manual on

Technology ManagementTechnology Management

tec change

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