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Technology Management

Unit 1

Learning Objectives
Understanding Science & Technology &
Discovery.
Types of Technology & Technology Portfolio
Relationship of Technology with wealth of
nations
Firms Specific Knowledge
Management of Technology at National &
Enterprise Level
Technology Life cycle

Science and Technology Defined

Science (from Latin scientia, meaning


"knowledge") is a systematic activity that builds
and organizes knowledge in the form of testable
explanations and predictions about the universe.

Science a possession of knowledge as distinguished from


ignorance or misunderstanding.
a department of systematized knowledge as an
object of study .
knowledge covering general truths or the operation
of general laws.
The study of natural phenomena .
--Websters New Collegiate Dictionary.

Technology Defined
Technology: systematic treatment of an art.
Technos meaning technique/art/ skill
logy meaning study of.
technical language
application of science
the totality of the means employed to provide
objects necessary for human sustenance and
comfort.

---Websters New Collegiate Dictionary.

Technology Definition
A few of the major definitions of technology include:
The process used to change inputs into outputs
The application of knowledge to perform work
The theoretical and practical knowledge, skills and
artifacts used to develop products as well as their
production & delivery system.
The technical means people use to improve their
surroundings
The application of science, especially to
industrial or commercial use.

Technology Definition
Technology is defined as:
The practical implementation of learning and
knowledge by individuals and organizations to
aid human endeavor.
Technology is the knowledge, products,
processes, tools and systems used in the creation
of goods or in the provision of services.

Technolo
gy Wave

technology waves
Biotechnology

ITC

Space
Environmental
technologies

mass
production

Computers
Telecomms

Advanced
materials

Software

heavy
engineering

Cars

Robotics

Airlines

Internet

Petrochemicals
Electrical &
heavy
engineering

steam power
Steam engines

Synthetic
dyes

Machine tools

Electricity

Process plants
Plastics
Motorways
Weapons
Aluminium

Railways

mechanisatio
n

Steamships
Textiles
Waterpower
Canals

1770

1840

cotton

coal

iron

transpor
t

1890

1940

steel

energy
(oil)

1990

years

microelectronicskey industries

Reproduced from Dodgson et al, The


Management of Technological Innovation.
OUP, 2008. P27.

Science and Technology: Their Natures and Relationship

Science is that form of human activity which


is devoted to: the production of theory-related knowledge
of natural phenomena
root function is to attain an enhanced
understanding of nature.

Technology is that form of human activity


which is devoted to:
the production of techniques - or technique
related intellectual products
root function is to expand the realm of practical
human possibility.

Difference between Science & Technology


SCIENCE

TECHNOLOGY

Deals with natural world.

Deals with Human made world.

Focuses on understanding scientific


laws which already hiddenly exists.

Focuses on doing-- application


oriented for finding solutions to
present problems & future
applications.

Public & Universal knowledge.

Private or Public Knowledge.

Scientific research & Discovery leads


to increase of overall scientific
knowledge.

Technology development leads to


innovation of new products, services
or processes.

Utility of Science doesnt change with


time i.e. no death/ decline stage.

Technology of product/ service or


processes undergo changes like the
biological concept of a life cycle( birth,
growth, maturity & death).

Scientific research carried out without


considering cost vs. benefit analysis.

Technology development guided


mostly by cost vs. benefit analysis.

Science useful for all.

Technology useful for specific owners/


users.

Components/ Parts/ Constituents of


Technology
Technology consists of interrelated component
elements or maps as follows:
o Technoware- hardware embodied technology.
o Humanware- Person embodied technology( skills,
experience.)
o Infoware- Documents or specifications embodying
technology including process specifications ,
prodedures , theories of know-how and know-why
o Orgaware- Includes organizations structures,
policies, internal & external linkages in and through
which technology operates as ongoing system.

Types of Technologies
Generic Technology- Common use , greater the
range of application in industries, more generic.
Basic Technology provides flexibility to
particular users.
Key Technology- Proprietary and indigenous to
the firm, provides competitive edge , Unavailable
for commercial use.

Types of Technologies
Embodied Technology- encapsulated in products
and physical equipments.
Disembodied Technology- Intangible in nature,
no particular character, involves social &
management sciences. E.g. Quality assurance
program in a factory.

Types of Technologies
System Technology- other technologies evolve
by combining information technology for
development of different applications. E.g.
computer-aided flexible manufacturing system
Infra Technology- group of technologies which
support R & D, manufacturing & marketing
functions in the industry.

Types of Technologies
Hybrid Technology- technology evolves by combining
features of different technologies. Hybrid technology
combines a rechargeable energy source (i.e. a battery) with a
combustible source (I.e. an engine). Hybrid technology is
employed in vehicles such as cars, buses and trucks to cut
fuel costs and to meet goals for emissions reductions.
Implementation done on a more wide scale basis, for
example, in fleets, ships, and trains.
Emerging Technology- technology is under advanced
development stage , probability indicates high technical
success. E.g. Bio-genetics, Nanotechnology.

Technology Portfolio
Numerous technologies are embodied in a
portfolio of technology, e.g. products or
manufacturing processes, automobile
technology.
Technologies are interrelated and influence each
other.
Technology portfolio needs proper management
by the organization.

Understanding Technology and its


Relationship with Wealth of Nations
Nations become competitive globally if updated with
technological progress & advancement.
Keeping abreast with technological advancement crucial
for economic progress.
Technology directly influences success & growth of
business enterprises, economic growth & wealth of nations.
E.g. Japan known for technology leader in electronics.
United States known for technology leader in
biotechnology and pharmaceutical technologies, and
indeed every major technology.
China known for green technologies.

Firms Specific Knowledge


Includes intangible assets such as:
Technical expertise
Technical Know-how
Process Know-how or patents.

Firm Specific knowledge provides competitive


and operational advantage to firms.
It enables business enterprise to move to foreign
markets & become successful.

What is S Curve of Technology


Evolution
S curve of technological evolution summarizes four major
stages in the evolution of performance characteristics:

1. Emergence : when the new technology comes into


existence, but shows little improvement in its
performance characteristics

2. Rapid Improvement : When performance


characteristics improve at an accelerating pace

3. Declining Improvement: When the pace of


improvement declines

4. Maturity: When further improvements become very


difficult to achieve

Performance Characteristics

What is S Curve of Technology


Evolution?

Stage
1

Stage
2

Stage
3

Time

Stage
4

What is S Curve of Technology


Evolution
S curve shape of technological evolution occurs due to following
reasons / effects:

Learning processes which, in the first stage, generates


more or less stable design & process and in the second
stage generates rapid improvements

Technology Limits Once a technology reaches full


potential, technology limits come into play during later
stages. These technology limits are also known a
technology frontiers as called by Dosi. In later stages,
radical breakthrough occurs, as a result new technology
emerges which replaces existing technology, This is known
as Technology Progression

The performance of the newer technology initially is lower


than that of the older technology, but because of their
relative positions on their respective S-curves, the
performance of the newer technology soon surpasses that of
the older.

Performance Characteristics

What is S Curve of Technology


Evolution?
Technology
Progression

Physical limits of technology <Technolo


gy
Regime 2
Technolo
gy
Regime 1
>
Time

Technology Life Cycle


Technology life cycle consists of various phases:
1. Technology development- Basic Technology
2. Technology Application- Technology+ Applications
3. Application Launch- Technology + Application+ Product
Launch
4. Application Growth- Technology + Application + Rise in
product sales
5. Technology Maturity- Technology + Application + Fall in
product sales
6. Degraded technology- Minimal product sales + Loss of
application + Alternative Technology.

Technology Management
Technology Management (MOT) is concerned with the :

Planning
Assessment of technological capabilities
Development
Implementation

MOT is used to accomplish central planning goals and


priorities of a nation.
MOT is used to accomplish strategic and operational
objectives of an organization.

Technology Management
Technology Management can also be defined as
the integrated planning, design, optimization,
operation and control of technological products,
processes and services,
Management of the use of technology for human
advantage
Technology Management is set of management
disciplines that allows organizations to manage
its technological fundamentals to create
competitive advantage.

Strategic Management of Technology


SMOT means managing :
product, service or process technologies of an
organization from a long range perspective.
Technology development, acquisition and
absorption spread over long time periods right
from R & D to manufacturing and marketing.
It impacts all areas & functions of organizations.
High risk is involved in the development,
acquisition & absorption of the technology .

Strategic Management of Technology


Strategic management helps in reducing
unnecessary costs at each stage.
Value addition can be further done by
developing better products/ services.
Strategic Technology Management System
(STMS) calls for adopting systems approach in
the organization on long term basis.

Management of Technology at
National Level
Main objective at national level is to
Assure nations and business firms to gain
technological competitiveness internationally.
Maintain strong position in international business
on a long term basis.

Domain of Technology Management at


National level

Developing appropriate technology strategy for the nation.


Forecasting technological changes.
Development of renewable energy technologies.
Sustainable economic growth.
Knowledge management.
Managing external technology acquisitions.
Managing technology absorption.
Performance measurement of new technology.
Technology & environment management.
Technology, health & societal management.

Management of Technology at
Enterprise Level
Main objective at enterprise level is to
Assure that business firms gain & maintain strong
hold in their core technologies relevant to its
product-market relationship.
Technologies should support the firms
competitive strategies.

Domain of Technology Management at


Enterprise level
Developing technology strategy viz-a-viz
competitors.
Forecasting technological changes.
Management of Technology portfolio.
Technology Innovation.
Knowledge management.
Implementation of new technology.
Technology transfer and absorption.
Strategic Management of Technology.

Strategic Management of Technology


Technology
Creation
Technology
Decline

Technology
Monitoring

Technology
Assesment

Technology
Maturity

Technology
Utilization

Technology
Transfer
Technology
Acceptance

Strategic Management of Technology


1. Technology Creation
Involves creation & generation of new
technologies.
Following activities are involved:

Creativity & invention


Innovation
Senior management commitment
Developing supportive corporate culture

Strategic Management of Technology


2. Technology Monitoring
Trends & changes are observed before
implementing new technology.
Following activities are involved:
Installing & developing information systems.
Performing competitive analysis
Customers & suppliers interfaces to understand
market & technological changes
People links like internal staff & research bodies
understand technological changes.

Strategic Management of Technology


3. Technology Assessment
Following activities are involved:
Understanding directions of markets in terms of
technology.
Integration of technology & business planning.
Customer interfaces to assess commercial
feasibility of prospective technologies.
Assessing contributions of technology projects to
business strategy.

These activities enable the organization to plan


for the future.

Strategic Management of Technology


4. Technology Transfer
. Leads to transfer of technology from external
to own R& D and then to production.
. Involves following activities

Develop or acquire technology by forming


strategic alliances.
Usage of product design teams & get benefits of
planned technological change.
Involving people across the organization

Strategic Management of Technology


5. Technology Acceptance
This phase calls for acceptance of technology as
a beneficial change.
Following activities are involved:

Supportive organizational design & structures


Supportive corporate culture
Senior management commitment
Assessment of impacts of technological change
in organization.
Reducing adverse effects & barriers in the
change.

Strategic Management of Technology


5. Technology Acceptance
This phase calls for acceptance of technology as
a beneficial change.
Following activities are involved:

Supportive organizational design & structures


Supportive corporate culture
Senior management commitment
Assessment of impacts of technological change
in organization.
Reducing adverse effects & barriers in the
change.

Strategic Management of Technology


6. Technology utilization
Following activities are involved:
Effective project management
Process technologies to support & facilitate
maximum utilization
Supportive marketing strategies
Using feedback for improvement

This phase leads to technology growth as there is


increase in sales.

Strategic Management of Technology


7. Technology maturity
This phase involves analysis of existing
technology .
It involves study of following indicators:
Efficiency contributed by current technologies in
attaining organizational goals.
Market stability in terms of volumes/ sales
Rise of substitutes in the marketplace
Diminished returns on investment
Decline of market share
Loss of competitiveness in the marketplace.

Strategic Management of Technology


8. Technology Decline
This is the last phase in which :
a technology and its related products/ services/
processes/ application show a sharp decline in
usage.
Technology degrades and becomes obsolete.
Cycle re-starts- New technology opportunities
created.

Thank You.

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