Technology Management

DISCOVERY

Unearthing, sighting, finding

(Find out or learn about a place, fact
etc. for the first time)

INVENTION

Creation, development
(Make or design that did not exist
before)

INNOVATION

Novelty, originality
(Make changes or introduce new
things)

TECHNOLOGY

Skill, Know-how, expertise

(Scientific study and use of mechanical
arts and applied sciences)

Scientific
Discovery

The atom

Invention

Machine to split
the atom

Innovation

Technology

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

ORGANIZATIONAL ENVIRONMENT
INPUTS
Human
Physical
Financial
Information

TRANSFORMATIONAL
PROCESS

Management Input
Operations
Production
Integration of ideas and
actions

FEEDBACK LOOPS

OUTPUTS
Products
Services
Lessons Learned

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 Technology
Any 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

Engineering
activities
Financial
System
Management
Science
Techniques

Production
and operation
procedures

Management of
technology and
Innovation
(Strategic and
operational)
DecisionMaking
Processes

Managers
Experience
and
Organization
al History

Socio-Technical
Systems Design
Group and
Team Behavior

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.

MANAGEMENT OF TECHNOLOGY

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.

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 1970s and the 1980s 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?