Technology Transfer Management

Module 1. Signals for Change:

1.1 The Innovation Imperative
New or
improved products
or services

Maintained or
The organization improved
competitiveness

New or
improved
processes
1.1 The Innovation Imperative

Getting ahead ….

* keep abreast of developing technologies

* identify threats to present products, processes

and business

* identify opportunities to “rewrite the rules of

the game”

* act on the opportunities – “ do unto others

before they do unto you”
1.2 Understanding the challenge

Signals about potential change

1. Emergence of powerful new technologies

???
2. Increasing rate of technological process
3. Shortening technology life cycles
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4. Increasing trade liberalization
5. Increasing globalization
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6. Changing regulatory framework
7. Changing basis of competition
` ???
8. Increasing sources of competition
1.2 Understanding the challenge
It’s not only variety….
Keeping the customer satisfied with no price factors

# design

# quality

# reliability

# delivery

# service

# customization
1.2 Understanding the challenge

Changes in regulation…
Examples include:
- anti-pollution legislation
- health and safety legislation
- promotion policies
Making sense of it all….
The Firm

Lower cost producers 1. Increasing import penetration

Quality becoming 2. Markets demanding more quality

order- qualifying factor and variety

3. Increasing international competition

4. Lowering of tariff barriers

1.3 The trouble with technology…
is that it does not stand still…

Key trends:
* emergence of major new fields
* integrated and blurred boundaries
* new organizational concepts
* increasing rates of change
* increasing linkages and alliances

BUT
technology is a key source of competitive advantage.
Trends in technology…
1. Increasing rates of change- in technologies and products
2. Increasing expenditure on R&D
3. Increasing linkages and alliances to cope with complexity
4. New emphasis on parallel rather than sequential
development
1.4 Building a toolkit…

Tools to help pick up and process signals:

- SWOT analysis
- tools for forecasting
- tools for getting close to the market
- tools for technology mapping

1.5 Summary…

This module has looked at:

1. The innovative imperative
2. The range of different sources making up the
challenge
3. Tools and techniques for mapping
4. The importance of regular scanning and searching
activity
Module 2 Technology Strategy:
2.1 Introduction to Technology Strategy
This module covers…
# how the firm analyses signals of potential threats
and opportunities involving technological change
# how it chooses between different potential options
# how it plans for acquiring and implementing its
technological choices
Why technology strategy…?
= technology is important…
= … but success is not automatic
= ‘the only certainty is that the future will be
uncertain…!’
= increasing scale of technological development
= increasing globalization
= increasing complexity of technology
= increasing competition
2.1 Introduction to Technology Strategy
How does technology affect your business?
Type of innovation Strategic Advantage
Novelty Offering something
which no-one else can
Competence-shifting Rewriting the rules of
the competitive game
Complexity Difficulty of learning
about the technology
keeps entry barriers high
Robust design Basic model product or
process can be selected
over an extended life
reducing overall cost
Continuous incremental Continuous movement of
innovation the cost/ performance
frontier
2.1 Introduction to Technology Strategy
`What is technology strategy….?
“..an understanding within a corporation-manifest amongst senior
management, but diffused throughout the organization-of the
importance and potential of technology for its competitive position;
how in the future that potential is to be realised; and how this
Complements the other aspects of strategy such as finance,
marketing and personnel..”
2.2 Strategic Analysis
The five forces model…
Competitive rivalry between firms

1.Threats of substitutes
2. Bargaining power of customers
3. Threats of new entrants
4. Bargaining power of suppliers
2.2 Strategic Analysis
Competitive profiling….
- focus the business
- identify order winners
- identify market requirements
- identify internal performance
- benchmark best competitor

2.3 Strategic Choice

Fit with business strategy…
Business strategy
# which business are we in?
# why?
# what forces underly competition?
` # What is/could be our competitive advantage?
# how do we compete?
2.3 Strategic Choice
Implementation issues…
1. Is the chosen option likely to fit with the organization?
2. What can/must we do to ensure this?
3. Tools to help include simulation, feasibility studies and
pilot implementation
2.4 Strategic planning
How we make our strategic choices happen…
* resourcing the technology
* change management
* implementation plan
* dealing with issues arising after the change
2.5 Summary: This module has looked at…
1. Why we need a strategic approach
2. Strategic analysis-making sense of options
3. Strategic choice-deciding on options
4. Strategic planning- matching capabilities to plans
5. Tools and techniques
Module 3. Technology Acquisition

3.1 Technology Acquisition Options

Acquiring the technology to support the strategic plan…

Internal sources
- Tacit knowledge
- Internal R&D

External sources
- Purchasing
- Licensing

Combination of internal and external

- Reverse engineering
- Strategic partnership
3.2 Choosing Appropriate Options
Combination of internal and external sources…
ADVANTAGES DISADVANTAGES
* share risks * reduced technological growth
* share costs * implementation problems
* can result in exclusivity * have to share information
* reduced time to market
3.2 Choosing Appropriate Options
Choosing the best source option for your company
Assess the advantages and disadvantages
# company technological growth
# exclusivity/competitive advantage
# Company capability
# Time to market
# Risk of failure
# Costs/ affordability
Consider all and choose the best overall option
3.1 Technology Acquisition Options

Options: Continuum from purely Internal to External

1. Seizing tacit knowledge

2. Internal R&D
3. Internal R&D with networking
4. Reverse engineering
5. Convert Acquisition with Internal R&D
` 6. Convert Acquisition
7. Technology Transfer and Absorption
8. Contract R&D
9. R&D Strategic Partnership
10. Licensing
11. Purchasing
12. Joint venture
13. Acquisition of Company with Technology
3.3 Technology Acquisition Options Details
Option 1- Seizing tacit knowledge

Advantages & Benefits

- knowledge exists in company. So low cost, low risk
-Improve other processes
- Don’t lose when person leaves
- Improve employee moral

Disadvantages & Risks

- More people on learning curves
- Documentation, training costs

Cost factors
-Extra staffing while learning
-Documentation
3.4 Summary…
There are internal, external and combination
internal/external sources of technology

Companies need to assess the advantage and disadvantages of all

resources considering:

- Company technological growth

- Exclusivity/competitive advantages
- Company capability
- Time to market
- Risk of failure
- Costs/affordability
-Appropriately-timed technology acquisition from the
appropriate sources can have impressive results
Module 4 Implementing Technology

4.1 Introduction

Concepts…

1. Technology implementation is a project with a beginning

and an end
2. Effective, cross-functional core teams are needed to drive
projects
3. Action-oriented phase reviews are needed to direct and
empower teams
4. Concisely documented structured development process is
needed to provide teams with a common road map
5. Integrated set of development tools and techniques
improve project speed and efficiency
4.1 Introduction
Technology Implementation Projects…
1. Technology Development
- Managing Internal activities (R&D)
- Managing External Technology Acquisition
2. Installing Developed Technology
- Implementing a new product
- Implementing a new process
4.2 Technology Development Projects…
#Use a seven-stage process to
1. Drive out uncertainty 2. Have informed Decision Making
* Idea
* Preliminary Assessment
* Concept
* Development
* Testing
* Trial
* Launch # At each stage, decisions are necessary
4.3 Developed Technology Projects
Implementing developed-process technology…
Different than technology development

- different type of people

- much less technical uncertainty
- much more people uncertainty
- training essential part of project
- have to deal with continuing normal business

Need a stage- gate process similar to technology development

- distinct project with beginning and end

- GO/NO-GO decision
- schedule
- responsibility
4.3 Developed Technology Projects
Tools for developed technology implementation
- Flow Chart
- Project Milestone Status Report
- Gantt Chart
- Complex Network Diagram
- S- Curve (Schedule and Costs)
- Work-Breakdown Structure
- Project Team Meetings
- Communication to Rest of Organization
Modify plans to fit reality
4.4 Implementation Problems
Barriers to technology transfer…
1. Systems of promoters
2. Characteristics of the technology
3. Needs of the user
4. Capabilities of the R&D
Technologies transfer success/ failures
4.4 Implementation Problems
Technology development project problems…
Understanding costs, risks, benefits
Problems Solutions
Costs, risks and benefits undefined Undertake activities to
define involve marketing,
manufacturing
Researchers did not think in terms of Involve in strategic
planning, Set goals, gates
Insist on cost, time budgets
Constantly revise estimates
Manage project with
stage-gate
Managers do not understand Communicate risks, benefits
Technology development Use stage-gate process
Key to success Two-way communication
and stage-gate process
Competitive and technology strategy- a case study of TELCO
Read the case carefully and answer the following questions:
3. Describe in brief the growth of Indian automobile industry
which can be divided into four phases
2. What was the driving force behind adopting strategy
TELCO? What is a mix of the strategies used?
3. What are the basic elements of the competitive strategies of
TELCO?
4. Describe in brief technology strategies used by TELCO to enter
new markets or to derive economics of scope or to reduce
product development cycle time?
5. In your opinion, whether the strategies adopted by TELCO for
sustaining competitiveness after liberalization were relevant?
Support your response with reasoning.
6. What are the reasons for success of TELCO’s technology and
business strategy?
4.5 Project Organization
Selecting project managers…
- Management capability (KEY)
- Technical talent
- Ability to persuade and negotiate
Project manager’s role…
- Influence in selecting members of the team
- Control over the project budget
- Development of parts of the project plan
- Accountability
- Performance evaluation
Developing effective project organization– building team
- locate team members offices as close as possible to
each other
- Stress developing relationship
- Recognize each member’s accomplishments
- Assign tasks fairly
 - Make task objectives realistic
- Run team meetings effectively
- Provide after-hours recreation opportunities
4.6 Parallel implementation
Traditional linear approach to bringing new products to
market….
Problems Concept
-Length of time
-Design ping-pong Design
- Finger-pointing
- Rivalry, lack-of-trust Manufacturing

Distribution

Sale
4.6 Parallel implementation
Promises of concurrent (simultaneous) engineering…
- Rapid time to market
- Distinctive new products
- Fewer engineering changes
- Fewer manufacturing start-up problems
- More manufacturability product . lower
manufacturing costs
- Quality excellence in process and product
lower warranty costs
4.7 Change Management
The elements of change…
- Processes have to be designed,defined, piloted,
tested, and refined
- Staff have to be trained
- Culture has to be reshaped
-Organizational structure has to be modified
 - Reward systems have to be updated
- Affected customers and suppliers have to be
consulted/informed
- New management monitoring and control systems
have to be designed and implemented
4.7 Change Management
The realities of change– obstacles…

Existing Resistance Desired

Infrastructure Operational infrastructure
pressures
Fatigue
Failure
Interruption
Finance
Complexity
4.8 From Plan to Action
Projection implementation…

Project Launch
- testing
- preparation
-roll-out
- refinement

Timing

Life after the Launch

-making it stick
-program management
- more on communication
4.8 From Plan to Action
Preparation – Developed Technology
- Communication to customers
- Data migration
- Physical layout
- Work flow document
- Publicize-internal and external

Preparation – Developing Technology

- Physical layout
- Work flow documents
- Publicize – internal
4.8 From Plan to Action
Roll out
- Migration or cut-over option
- Timing
- Maintain existing service
 - Initial versus final staffing levels
- Contingency plans
- Wind –up the old
- New measures, forms
- Inspiration
- Support from Process and Project designers
4.9 Summary
Module 4 covered…
- Implementing Technology Development Projects
- Implementing Developed Technology Projects
- Implementation problems
- Project organization
- Parallel implementation
- Change management
- From plan to action
Module 5 Learning to improve Technology Management:

5.1 Introduction:
This module covers…
# the overall process of learning and the need to develop a
complete learning cycle.
# specific tools and techniques to facilitate learning from
technology management projects.
# mechanisms for enabling the process to take place.

5.2 Learning to improve Technology Management:

In order to grow organizations do not just have to build
technological competence – they also have to learn how to do this
effectively.
* what are the best ways for acquiring and developing
knowledge?
* How can it be done with a chance of success?
 # How can the learning processes around an organization
be integrated and captured?
These are all questions about managing the process of
technological change.

5.3 Mechanisms for learning

Different types of learning…

so we have two types of learning to consider:
(1) technological learning to capture and
accumulate technological competence
(2) organizational learning to develop routines
and for managing the process of technological
change
Technological competence
-learning about technology

Management Competence
- learning about how to learn
5.4 Continuous Improvement:
Problem Solving Cycle:
Identify

Review Define

Implement Explore

Select
5.5 Technology Management Audit:
What to look for…
- signals for scanning

- technology strategy

- acquisition of technology

- implementation

- learning

- supporting organizational context- internal

- supporting organizational context- external

5.6 Summary:

This module has covered:

* the need for learning and development of:

- technology competence
- ability to manage the process

* the underlying learning cycle which must be developed

* tools for enabling effective learning from technology

management projects

* mechanisms to support all parts of the learning cycle