Technological environment

Features of technology Impact of technology on

Society Business organization Economic effects of technology

Management of technology Status of technology in India

Technology policy Institutional and other facilities to promote science and technology

J.K. Gilberth defines technology as a systematic application of scientific or other organized knowledge to practical task. Technology helps convert ideas into useful products.

Technology enabled people to generate, preserve and distribute energy, discover new materials, save lives, introduce machines to do work of human beings, increase living standard, probe deep into seas and space in search of new treasures and much more.

Difference between science and technology

Science In pursuit of knowledge People involved known as scientists. Motivating factor is to satisfy curiosity.

Technology In pursuit of socioeconomic gains People involved known as engineers. Motivating factors is to bring out need satisfying products.

Features of technology

Used as one of the basic resource as land and human capital It is dynamic by nature. Its effects are wide spread. It is self reinforcing. Is a complex system.

Technology and society

High expectations of consumers. System complexity. Social change It directly changes the patterns of social life.

Technology and economy

Increased productivity. Need to spend on R &D Technology discontinuity. Firm should carry out cost benefit analysis of whether to develop their own R&D or outsource technology? Make decisions on product innovation or process innovations.

Jobs tend to become more intellectual. Problem of techno structure.

Traditional incentive fail to motivate. Retention is a problem Difficulty in placing people in a pattern.

Need for bio-professional and multinational managers.

Increased regulation and stiff opposition Insatiable demand for capital. Rise and decline of products and organization. Business boundaries redefined. Technological change in the form of process and materials innovations may contribute to other businesses or industries too.

For multi product companies technological change may bring multiple impacts.

Plant level or business level implications

Technology and organization structure Fear of risk Resistance to change.

It may occur due to low profits and reduced growth rate Powerful labour resistance to changes in methods Small size or fragmented activities.

Sizable investments in long life single use facilities. Psychological and social commitments to existing products, processes and organization.

Factors affecting the selection of technology

Product competitiveness and market potential. Customer preference. Speed of introduction of new products and processes. Comparative study of technology gap between India and outside.

Availability of technology for import in strategic area. Suitability of technology in the context of organizational culture. Outflow of resources, foreign exchanges etc.

Mechanisms of technology transfer

Technology is transferred from one country to other through a wide variety of mechanisms. Non commercial mechanism International commercial transactions.

Non commercial mechanism

Exchange of information through persons attending international seminars and conferences. Education and training at foreign universities. Exchange of information through technical cooperation programmes of international organizations.

Commercial means of technology transfer

Direct investment by foreign companies. Collaboration agreements. Exports of parts.

Technology transfer process:

Two phase process: Technology selection Absorption phase.

The first stage is selection of technology. This need basically technical expertise to evaluate and determine the suitability of technology and consideration of social background. The selection of technology also depends on national policy.

Absorption phase

This phase can be divided into 3 steps: Information transfer Adaptation Adoption or ingestion period.

Technical information includes: Design Tools and other spare parts required. Quality standards. Collaborators practice. Dissemination process Earlier experiences.

From where to get information?

Technical literature Trained people Conferences.

Adaptation stage

A systematic adaptation of designs. Adequate information on local materials and capabilities of suppliers are to be obtained in case of components which are to be replaced at subsequent stage. In case of substitute materials the materials are to be obtained, tested and approve before use in production.

Inspection plans must be adequate. Process capability of the machines is to de determined for the different components. Adequate QC and testing equipment must be identified and procured in time. Proper record of field performance and analysis are to be ensured.