INTRODUCTION TO TECHNOLOGY MANAGEMENT

1. Definition of technology.

Ans : Technology can be defined as all the knowledge , products, processes, tools, methods, and systems
employed in the creation of goods or in providing service. In simple term, technology is the way we do things. It is
the means by which we accomplish objectives.

2. What are the various components of technology?

Ans : The various components of technology are as follows :

a) Hardware : The physical structure and logical layout of the equipment or machinery that is to be
used to carry out the required tasks.

b) Software : The knowledge of how to use the hardware in order to carry out the required tasks.

c) Brainware : The reasons for using the technology in a particular way. This may be referred to as
the Know-Why.

d) Know-How: The learned or acquired knowledge of or technical skill regarding how to do things
well. Know-how maybe a result of experience, transfer of knowledge, or hands on practice. People
acquire technical know-how by receiving formal or informal education or training or by working closely
with an expert in a certain field. Know-how can also be acquired through a recognized method of
technology transfer.

3. What are the classifications of technology?

And : Technology can be classified into several ways. They are;

a) New Technology : A new technology is any newly introduced or implemented technology that
has an explicit impact on the way a company produces products or provide services. One example is
new computer software introduced to develop engineering drawings and thus replace manual drafting.
Another example is an internet website designed to market the company’s products. The technology
doses not have to be new to the world, only to the company. It could have been developed years ago and
used by others, but it is classified as new whenever introduced for the first time in a new situation. New
Technology has a profound effect on improving productivity and maintaining a competitive business
enterprise.

b) Emerging Technology : An emerging technology is any technology that is not yet fully
commercialized but will become so within about 5 years. It maybe currently in limited use, but is
expected to evolove significantly. Eg ; Genetic Engineering, Nano Technology, Super Conductivity and
the Internet as a replacement for the personal computer. Emerging technologies create new industries
and may make existing ones obsolete. They have the potential of triggering large changes in institutions
and in society itself.
c) High Technology : The term high technology refers to advanced or sophisticated technologies.
High technologies are utilized by a wide variety of industries having certain characteristics. A company
is classifies as high tech if it fits the following discriptions :

1. It employs highly educated people.

2. Its technology is changing at a faster rate than that of other industries.

3. It competes with technological innovation

4. It has high level of research – and development expenditure.

5. It has the potential to use technology for rabid growth, and its survival is threathned by
the emergence competing technology.

d) Low Technology : The term low technology refers to technologies that have permeated large
segments of human society. Low technologies are utilized by a wide variety of industries having the
following characteristics ;

1. They employ people with relatively low levels of education or skill.

2. They use manual or semi automatic operations.

3. They have low evels of research expenditure (Below industry average)

4. The technology base used is stable with little change.

5. The products produced are mostly of the type that satisfy basic human needs such as
food, shelter, clothing and basic human services.

e) Medium technology : The term medium technology comprises a wide set of technologies that fall
between high and low technologies. It usually refers to mature technologies that are more amenable than
others to technology transfer. Eg; Consumer products and the automotive industry.

f) Appropriate Technology : The term appropriate technology is used to indicate a good match
between the technology utilized and the resources required for its optimal use. The technology could be
of any level – low, medium or high. Eg; To use high technology when there is a lack of necessary
infrastructure or skilled personnel. This is a dilemma faced by many developing countries that want to
transfer technology used in more industrialized countries. They may push for that acquisition of high
technology in cases where a medium – level technology would be more effective. Utilizing the
appropriate level of technology results in better use of labor resources and better production efficiency.

g) Codified Versus Tacit Technology : Technology can be preserved and effectively transferred
among users if it is expressed in a coded form. An engineering drawing is a coded form expressing
shape, dimension, and tolerances about a product. A computer program of an optimization algorithm is
acodified form that preserves and transmits knowledge about that algorithm.

Tacit technology is non – articulated knowledge. There is no uniformity in the way it is

presented or expressed to a large group of people. It is usually based on experiences and
therefore remains within the minds of its developers. The technology developers are the ones
who have the know – how in question.Transfer of tacit technology occurs by close contact
and interaction between the source and the host. Apprenticeship programs may serve as
avehicle for transferring the tacit nuances of specific professions or fields.
 Codified technology, on the other hand, allows people to know how technology works but
not necessarily why it works in a certain way. The brainware maybe part of the tacit
knowledge kept in the minds of developers and shaped by their experiences during the
development process. Transfer of technology is easier when the technology is a condifed
form. It is harder, less precise, and more time consuming to transfer tacit technology. A
complete mastery of the technology requires an understating of both the explicit codified
knowledge knowledge and the non- explicit tacit knowledge.

4) Management of technology a brief note.

Ans : Management of technology (MOT ) is an interdisciplinary field that integrates science, engineering, and
management knowledge and practice. The focus is on technology as the primay factor in wealth creation. Wealth creation
involves more than just money ; it may encompass factors such as enhancement of knowledge, intellectual capital,
effective exploitation of resources, preservation of the natural environment and other factors that may contribute to raising
the standard and quality of life.

Managing technology implies, managing the syatems that enable the creation , acquisition and exploitation
of technology. It involves assuming responsibility for creating, acquiring, and spinning out technology to aid human
endeavors and satisfy customer needs. Research, invensions, and development are essential components in technology
creation and the enhancement of technological progress. However, more important for the creating of wealth is the
exploitation or commercialization of technology. It is only when technology is connected with a customer that its benefits
are realized. A customer is a beneficiary and could be an individual a corporation, or a government entity such as defense
estabilishment. An invention made and put on a shelf is not contributing to wealth. An idea that emerges and is not
exploited, even if it was patented, does not bring monetary returns. Technogloy generates wealth when it is commercialized
or used to achieve a desired strategic or operational objective for an organization.

5) What are the factor which contributes to wealth creation?

Ans : The factors which contributes to wealth creation are;

1. Technology.

2. Labor

3. Capital

4. Natural resources

5. Public and environmental policy

6. Market

6) Why management of technology?

Ans : With fast pace of change in the present world scenario, new technology emerge and the dynamics of trade
shifts, hence Management systems must also shift to cope with the change. These shifts carry a totally new
paradigm for business. The nature of this change can be examined since the end of World War II.

The World : Post World War II

World War II created a new order in the world. The industrialized countries dominated the scene. They had the
mahore share of the world’s productive capactity. Technology – based products were sold at home and all over the
planet, creating great wealth for countries such as the united stated, Britain, and France. Many industries flourished
and companies such as ford, General Motors, General electric, AT&T,IBM and Westinghouse became
conglomerates. The years after the war were the golden years of western industry. The Post War era was a period of
relative technological stability. The concept of the factory, which emerged in the 1800s, had become well
established. Labor was divided mainly into blue – collar and white – collar workers. Industry owners and mangers
created management systems with well defined functions such as design, manufacturing, finance, accounting,
marketing, and distribution.

The World Today

The most pronounced difference between the world today and the world of yesteryear is the rapid pace of
technological change. This pace is combined with variation in the scop of technology deployment. Global
competition is also relatively new. Competition among nations has intensified in the 1980s and 1990s compounded
by the emergence of new countries on the “playing field”. This contributes to acontinuous shift in the balance of
economic power. With the end of the cold war, a new world order has emerged. Most countries pursue free global
trade, and trade blocs and becoming a defining feature of the time.

1. The pace of technological change : The magnitude and speed of technological change in recent years
have been phenomenal. A very rapid rate of technological innovation is making it imperative to consider
technology as the primary factor influencing economic growth and prosperity. The US national science
and technology council has noted that “Technology is reshaping our world at a speed unimaginable just
a few decades ago”.

Technological changes have been of such magnitude that it is difficult for individuals, and
often for institution, to follow them . In several technological sectors, such as the information
sector, more changes have occurred in the last few decades than in the previous few thousand
years. The rate of change is increasing exponentially. Nations, industries, and individuals
must develop their capabilities to keep abreast of technological changes and to harness
technology.

Technological changes in the 20th century has significantly influenced employment patterns
and societal change. During the early 1900s, 85% of the US work force was involoved in
agriculture. This figures now stands at less than 3%. However, the US is still the world’s
largest producer of agricultural products. This production efficiency is due in great part to
technology. In the 1950s a large proportion of the US work force shifted to manufacturing ;
production technology had expanded job opportunities and absorbed about 73% of the work
force. Now this sector account for only about 15% of US employment. Still the net output of
the manufacturing sector increase due to improvement in technology. In the 1990s
information technology, leading the technology revolution, contributed to another shift in
employmet – this time toward the service sector, which now accounts for about 80% of the
work force. Such changes will continue to happen but at a faster rate as the world moves into
the 21st century. Technology will continue to be the base for economic growth. At the
national or the company level, competing by means of technology is no longer a matter of
choice but a matter of survival in the global market pace.

With the high rate of change in technology, successful managers are those who embrace
change for the benefit of the organization. A manager’s role, in a predictable, relatively
stable technological environment, is to optimize the use of available resources. In a dynamic
environment of fast – paced technological change, a manager’s job expands beyond the
traditional role of manging available resources to a new role of managing change. A manager
should be able to manage with technology as well as managed the innovation process.
2. The Change in Scope : In conjunction with the rapid pace of technological change, there has
been a change in market behavior. Customers are now demanding choice and expect high quality
products. In the early 20th century, Henry Ford introduced his Model T. To drive the cost down and
make the automobile affordable to the masses he introduced the concept of the assembly line, and mass
production was born. Ford is credited with saying that he would produce any colour car a customer
wanted as long as it was black. Ford’s thinking would not be as popular with todays customers. Today’s
gooda are produced to meet customers particular needs and demands. Such luxury has fortunately
become affordable because of advances in technology.

The rapid change in technology combined with customer’s new attitude has forced a move
away from the use of fixed production lines. Flexibility and the ability to quickly respond to
change is the name of the game. The use of modern computers and software makes possible
such flexibility. Deployment of technology has shifted from focusing on economies of scale
to focusing on economies of scope or of integration. Modern corporation must be able to
change from one type of economy to another in a timely manner. Modern technology enables
them to do so. The emergence of internet technology has permitted the growth of mass
customization where a customer selects the features desired in a product online. The producer
develops the system capable of meeting the customers demands.

3. Changes in Competition : Relatively new global competition is intensifying each day. The
economies of Germany and Japan have been revitalized since World War II. New countries are entering
the game : Taiwan, Korea, Singapore and more recently China have emerged as a strong competitors.
The map of the world’s industrial production has shifted, and there are new rules for the new
competitors.

4. Trade Blocs : Countries are entering into agreements that create trade blocs. It is no longer
good enough for the united states to be able to compete with one country, such as France or England or
Germany ; Todays new competitor may be a large bloc of nations, such as the European Union or the
Pacific Rim countries. The international Trade Blocs are changing the way the game is played and won.
Commerce is a global activity that acquires global understanding ; It is influenced by new agreements
and rules, such as the General Agreement on Tariffs and Trade (GATT), and the North American Free
Trade Agreement (NAFTA). This trend in the global market place is creating a new model for
competition among nations and industries..

The global changes have forced a new attitude in government and corporate policies. The US
office of technology policy indicates such a change ; The Federal Government now views
technology as an integral part of its global strategy for economic growth. The three Prongs of
that strategy are ; Economic, Trade and Technology. National as well as industry
competitiveness depends on the integration of this three areas of activity.

National competitiveness requires the establishment of a sound economic system, strong

technological capabilities and the ability to trade with other nations. The economic system
consist of many components, including Banking and Financial institutions, the stock market
and regulatory agencies. Technological capabilities are based on any factors, including
education, research and development, and technology transfer. Global trade is governed by
international agreements, negotiated under the auspices of the World Trade Organization
(WTO) or among groups of nations. In addition, trade is dependent on market dynamics and
the laws of supply and demand.
 Creating a national competitiveness strategy depends on the harmonious integration of
economics, technology and trade systems. Industry competitiveness is dependent on the
intersection of these three major systems.

7) The Evolution of Production Technology

Ans : In the first millennium of the Christian calendar, before the Age of Enlightenment, there were very
few prevalent technologies. Society was predominantly agriculture. Products were developed by artisans, and manual labor
dominated. The industrial Revolution and the introduction of steam power late in the second millennium changed
everything. The concept of the factory was born. Workers now assemble in one place to develop production rather than
working individually in small shops.

In the late 1800s Frederick Taylore introduced the scientific method into factory administration. Taylor’s
approach led to improved efficiency throught the concept of analyzing and designing work. He introduced the idea that
management should design the work and workers execute it. The concept of standard time was created to enable
management to exercise control over production. Problem areas pertaining to work were identified and scientifically
analyzed ; alternative solutions were evaluated ; and the best alternative was selected and implemented. Incentive systems
were also introduced to raise productivity. Taylor’s approach ushered in the scientific management process.

Henry Ford introduced the assembly line and specialization of workers in the early 1900s. He believed that
producing just few standardized products would increase efficiency in the system. Thus the concepts of the assembly line
and economy of scale were born. Although these concepts are still in use in modern industry, advances in technology and
in the market place are creating changes in what was once a dominant model. Flexibility, agility and economy of scope
are the trends in modern manufacturing.

Motion study was introduced in the early 1900s by Frank and Lillian Gilgreth ( Gilbreth, 1911 ; Niebel,
1988). They advocated reducing wasted movements and finding the best way to do the job. Their methods were
implemented in the construction industry and later found their way into factories. Taylor’s and Gilbreth’s work formed the
basis of the discipline of methods engineering, which profoundly improved the efficiency of operation.

Great diversification of shops and factories occurred as the industrial age progress. Many different products
were produced in the same facility, requiring scheduling activities. Disciplines such as planning, inventory control,
queuing, and modeling were developed. The pace of development increased during World War I, following an observed
pattern in which technological developments are expedited in times of war.

During the 1920s and 1930s concepts of statistical quality control were introduced. Shewhart created
control charts and was followed Deming and Juran, who became active in statistical quality control and quality theory.

World War II brought the necessity of efficient material – handling systems, improvement in productivity,
wider applications of statistics, and operations research.

In the 1950s the digital computer emerged, allowing simulation and better efficiency in the solution of
complex numerical problems. The computer innovations ushered in the information age and created a revolution in science
and technology and its association explosion of knowledge as the second millennium ends and the world moves into the
third millennium.

Today, development in material technology, information technology, generic engineering, bioengineering,

communications, robotics, manufacturing processes, and organizational theory are but some of the emerging areas in the
technology arena. Their impact on society and on our way of life is expected to be immense.

8) The Evolution of Product Technology

 Ans : Technology can be associated with products, production, service, or marketing. Product innovations
of the past two centuries have had a profound effect on the world, transforming the way people live and work.
Technologies converted into products have contributed to economic growth and prosperity and improved the
overall quality of life for many of the world’s people.

Innovation in power generation toward the end of the eighteenth century brought with it products
such as the seamboat and the steam-powered locomotive. Innovations in radio signal and electric power generation
and transmission in the 19th century brought applications in communication products such as the radio, the
telephone, and the telegraph. The 20th century was a watershed in the introduction of new products. The air
conditioner, the automobile, and the airplane developed in the early part of the century and changed our way and
quality of life forever. The electronic age and the introduction of computers in the middle part of the 20th century
vastly expanded the knowledge base. Many innovative products were introduced in that time period, including the
television, transistor radio, jet engine, copy machine and mainframe computer.

From the 1950s to the 1970s we witnessed the production of integrated circuit boards, spaceships,
laser products, satellites, composite-materials and fiber optic communication equipment. Technologies of the 1980s
brought MRI scanning equipment for the health care sector, new drugs to fight cancer, diabetes, and genetic
disorders; vaccines; and the development of growth hormones. The revolution in information technology toward the
end of the 20th century has produced an explosion of knowledge. Harnessing this knowledge to create products and
services is the challenge currently facing countries and industries alike. Software products, telecommunication
equipment, semiconductors, and genetically engineered products are but a few of exciting new developments that
are evoloving