Management of Technology

Prof.V.Seshadri SVKMs NMIMS

Colaba RMD goes hi-tech for an accurate forecast - TOI Jan 23rd. 2011
The Colaba regional metrological department (RMD) has embraced advanced technology to give Mumbaikars the latest weather updates. Doppler Radar Digital Synergie system Manual, numerical, digital, satellite, sensor input sources Collation of the coded data onto a server, decoding, integration and analysis is done by the computer based new digital synergie system
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Technology behind new products

TOI Jan 23rd. 2011 Product
Smart Cane

Technology
Echolocation; Li ion battery; AD conversion; transducer; IC; Silion chip Echolocation; AD conversion; transducer; IC; Silion chip

Purpose
Guide blind persons

Ultrasonic Haptic Helmet

Mine workers; Fire fighters, Blind people

Bionic Eye sensor device Video signal processing, Enables those suffering Ophthalmology, from Retintis microprocessor, sensors pigmentosa to see
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Emerging Technology
source -Advanced Materials and Processes of ASM International, USA-Dec 2010

Leaf skeleton made into iron carbide by a coating process, which gives it the magnetic and conducting properties of iron carbide Super strong Aluminum by treating 7075 aluminum to create nano meter sized cluster of atoms within the grains and at grain boundaries. The new material was twice as strong as Aluminum 7075 while retaining ductility. Strongest organic nano material: Used a simple dipeptide, consisting of 2 amino-acids , to form spherical nano structures. This is the first bio inspired nano material known to date that is mechanically as strong as steel. Applications include bullet proof vests, space vehicles, aviation and replacing metallic medical implants.
V.Seshadri MOT Ref 1 Ch 1& 2 4

Find your voice again Voice Prosthesis

HT 24th Jan 2011

It is a one way valve that directs air from the lungs into the mouth during expiration It consists of a membrane, a coating of anti microbial agents such as Silver Oxide. Patient who is unable to speak due to throat cancer can now do so thanks to the new device.

V.Seshadri MOT Ref 1 Ch 1& 2

Technology
the practical application of science to commerce or industry the discipline dealing with the art or science of applying scientific knowledge to practical problems Refers to the theoretical and practical knowledge, skills and artifacts that can be used to develop products, process and services as well as production and delivery systems
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Technology contd.
Technology can be defined as all the knowledge, products, processes, tools, methods and systems employed in the creation of goods or in providing services. Technology can be embodied in people, materials, cognitive and physical processes, plant, equipment and tools Criteria for success of a technology is technical rather than commercial.
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Technology -contd
Technologies are the outcome of development activities undertaken to put inventions and discoveries to practical use. The invention of the transistor(1947), I.C. (1959) and Microprocessor ( 1971) gave rise to successive generations of new technologies in the semiconductor industry that in turn led new applications in the telecom , computing and automation areas.
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MOT 1/2
1. It is an inter-disciplinary field that integrates Science, Engineering and Management knowledge and practice. 2. Focus is on technology as a primary factor in wealth creation encompassing knowledge, intellectual capital, effective exploitation of resources, preservation of environment, raising standard of living, improving quality of life apart from generating money. 3. Managing technology implies managing the systems that enable the creation, acquisition and exploitation of technology
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MOT 2/2
4. Research, Inventions and development are essential components of MOT 5. Technology generates wealth when it is commercialized or used to achieve a desired strategic or operational objective for an organization.

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The interdisciplinary nature of MOT

MOT treats technology as the seed of the wealth creation system. Important aspects of this system are: a) Natural Science b) Social Science c) Industrial practice d) Business theory e) Engineering
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Basic Concepts contd.

Scientific Research: Investigation carried out for a certain purpose using scientific tools and based on scientific laws Basic Scientific Research: Activities involved in generating new knowledge about physical, biological and social phenomena. Applied Scientific Research: Activities geared towards solving particular technical problem.
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Technology -contd
Technology consists of three interdependent, codetermining and equally important components: 1. Hardware 2. Software 3. Brain ware (know-why) Know-how could be considered as the fourth component. Zeleny (1986)
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Technology vs Business
The pool of knowledge available to Society is a major source for creating business enterprises. Technology shows the way how goods and services can be produced. The technologies that exist in a business are the technological assets of that business. They constitute the collective knowledge and technical capabilities of that business enterprise and includes its people, equipments, systems, tools etc.
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Critical factors in MOT

The most critical factor in technology is human creativity The creation of technology; developing new products/processes/services with this technology and successfully deploying. marketing them calls for great creativity along with the system to exploit it and the needed investment/resources.
MOT - Prof.V.Seshadri Ref 1 Ch 3 15

Technology Price Relationship

MOT - Prof.V.Seshadri Ref 1 Ch 3

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Technology gap Price relationship

P R I C E
TECHNOLOGY GAP
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Technology gap Price relationship

OwnOwn Knowledge Knowledge Customer Knowledge

Technological Knowledge

Time or Diffusion
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Example: Netscape
Netscape Ltd. is a software company heavily involved in developing internet browsers, navigators, server software and applications. It was started by technocrats and is listed on NASDAQ stock exchange. Its assets are in software and internet based technologies and very little capital and other physical assets or holdings. It is a classic example of a successful technology driven company
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Levels of technology activities in a firm

1. Cognitive knowledge or know-what 2. Advanced skill or know-how 3. System understanding or know-why 4. Self motivated creativity or carewhy

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Classification of Technology
1. New Technology (laser for eye surgery) 2. Emerging Technology ( superconductivity, genetic engineering,) 3. High Technology (cloud computing, stem cell technology) 4. Low Technology/Medium Technology 5. Appropriate Technology 6. Codified vs Tacit Technology
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High Technology company

It employs highly educated people. Professionals, PhDs Rapid change in technology compared to competitors Competes with technological innovations Has high levels of R&D expenditures Has the potential to use technology for rapid growth
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Low Technology Company

Employ people with relatively low level of education/skill. Emphasis is on experience. Use manual or semi-automatic operations Have low levels of research expenditure (below industry standards) Technology base used is stable with little change Products are usually of the basic type.
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Codified vs Tacit
Codified: Know-how information is well documented and clearly explained. Tacit: It involves the Know-why part which is, quite often, not explained or documented. It is harder, more difficult and time consuming to transfer tacit knowledge. Knowledge of both codified and tacit knowledge is essential to acquire mastery in a technology.
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The pace of technology change

The magnitude and speed of technological change in recent years have been phenominal. Technological change is the primary factor influencing economic growth and prosperity. It has impacted employment patterns and Societal changes. US employment figures: 1900 1950 Agriculture (85%) 1950_ 1990 Manufacturing (73%) Agri ( 3%) 1990 2000 IT & Services (80%); Manu ( 15%)
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Changing equations
Scope: Fixed assembly line to flexible mass customized - production lines. Customer focus Competition: US vs Soviet Block to Western vs China & India to European Union Trade Blocks: G 7, SAARC, EU, G7 GATT, NAFTA, WTO

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National Competitiveness
A nation needs to establish sound economic systems to foster competitiveness and the ability to trade with other nations. Technological capabilities are based on factors such as education, R&D, technology transfer. Global trade is governed by International agreements based on WTO or bilateral. It also depends on market dynamics and supply-demand laws. Creating a National competitive strategy depends on the harmonious integration of economics, technology and trades systems An effective public policy should be based on this.
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Technology and Sustainable growth

Technological Capabilities Economic System Competitive Enterprises Sustainable economic growth
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Trade

Historical Perspective
Technology has always played a major role in creating wealth of nations and influencing standard of living and quality of life. Thus the progress of civilization is identified by the dominant technology of the age.

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Evolution by Age of Technology SBI SENE SIB

STONE BRONZE IRON

STEAM

ELECTRICITY

NUCLEAR

ELECTRONIC

SPACE

INFORMATION

BIO-TECH
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Technology = the engine for economic growth of nations

Robert Solow, a MIT professor(1987 Nobel Prize in Economics) Technical progress accounted for more than half the economic growth in the USA In a study ( France, Japan, Germany and U.S.) on relative contributions to economic growth of three main factors: Technical progress: 50%; Capital: 45%; Labor 5%
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The Long Wave Cycle 1/2

After the Industrial Revolution the economies of western countries went through major economic expansion followed by depression. These fluctuations repeated once in every 30 years (approximately) and this phenomenon is known as the long wave or long economic cycle Breakthroughs in new Technologies result in a surge of inventions which trigger business opportunities and building up of Capital contribute substantially to the growth phase.
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The Long Wave Cycle

1. Discoveries in Science creates a base for technological innovations. 2. Radical and basic technological innovations trigger new inventions in products, processes and services 3. These create new markets and new Industries 4. The new industries continue creating newer products, expanding the markets further
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The Long Wave Cycle

5. As the technology matures, there is a surge in new entrants and intense competition results in generating excess capacity. 6. This results in reduction in reduction in profitability of companies, which results in increased business failures and unemployment. 7. This leads to economic turmoil in financial markets leading to depression 8. New breakthroughs occur in technologies which provide the basis for new economic progress triggering the next long wave cycle.
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The Long Wave Cycle the Technology implications (Betz)

1. Cutting edge technology is behind the long wave of economic activity 2. High technology products displace old technology when there is justification for performance and cost 3. Technology life cycles of industries affect long cycles in the national economy 4. New technology comes from science which come from new discoveries in nature. 5. A new technology when created will begin a new wave.
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The Long Wave Cycle the Technology implications

As technological innovations become more and more fast paced, the long wave cycles become shorter and shorter. Emerging technologies are promising new and uncharted areas of products and processes. New economies defy compartmentalized traditional measurement methods. Growth in investments in areas like corporate software, cellular phones, e-mails, automated banking and plastic money all defy traditional measurement methods
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Evolution of Production technology

Late 1800s Fredrick Taylor Scientific management principles Early 1900S Henry Ford Mass production; planning, inventory control, time & motion study, queuing and modeling. 1920s, 1930s SQC, TQM, Process Quality theory WWII Material Handling systems, Productivity, Operations Research
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Evolution of Production technology

1950s Digital Computer; Simulation techniques, Information age. 1970s Personal Computers; total systems design; Materials Technology 1980s - Information technology, Bio technology, genetic engineering, genetics, robotics, manufacturing processes, organizational theories, Management of Technology
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Evolution of Product Technology

Technology can be associated with new Products, Processes & Services Product developments have revolutionized the world in the past two centuries. They have impacted economic growth and prosperity and improved the quality of life

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Evolution of Production Technology

Early 1800 Agriculture

Late 1800
Industrial Revolution

Early 1900
Org Concepts; Motion Study

1920:Production Controls,SQC

1940:Productivity, Tool design, Inventory theory

1950: OR; Network techniques, Computerization

1960: Teleprocessing, Automation, Simulation

1970: Personal Computing, Behavioral Teory

1980: MOT, Telecom & IT revolution

2000: Bio technology, Genetic Engineering, Nano technology

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Evolution of Product Technology

1793-1829 - Cotton Gin, Steam Powered locomotive 1830-1900: Telegraph (Morse), Vulcanized Rubber, Safety Lift ( OTIS) IC Engine, Radio,

1901- 1939: A/C. First Flight, Model T; FM Radio, Jet Engine, Xerox, Helicopter

1970: Microprocessor, Recombinant DNA, Laser Pronter, MRI Scanner, Space Shuttle, Scanning/Tunneling microscope

1950-1969: Sputnik (USSR), IC; Operable Laser, First man in space; Kevlar, Fiber Optics

1940 -1949 :Color TV, Digital Computer Transistor, Jet airliner, Instant Camera,

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Technology & National Economy

Developed economies are identified with countries that properly use technology for the creation of wealth. It is the use of appropriate technology effectively that really creates new opportunities and wealth. USA was the leading economy of the world in the 20th century which was the centre of all technological advancements in the world. Japan and Germany are examples of such countries in the late 20th century China and the Asian Tiger Countries ( Korea, Taiwan, Singapore, Malaysia) are in the forefront in the last decade. India is a most promising rising giant in the world in the second decade of the 21ST century.
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