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  • OM0018-Unit-07-Aspects and Issues in Technology Management
  • OM0018-Unit-10-Technology Assessment
  • OM0018-Unit-11- Managing Technology ± Based Innovation

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Om 0018 OM0018-Unit-01-Introduction to
Technology Management Unit-01-Introduction to Technology Management Structure: 1.1 Introduction Objectives 1.2 Concept and Meaning of Technology and Technology Management Technology Technology management 1.3 Evolution and Growth of Technology 1.4 Role and Significance of Technology Management 1.5 Impact of Technology on Society and Business Technology and competition Key issues in managing technological innovation 1.6 Forms of Technology Process technology Product technology 1.7 Summary 1.8 Glossary 1.9 Terminal Questions 1.10 Answers 1.11 Case Study 1.1 Introduction The term ¶technology· refers to knowledge, processes or products of technological activities, according to the context in which it is used, and the term management refers to the act of getting people together to achieve a specific goal. Management refers to the process of planning, organising, staffing, directing, and controlling the activities in an organisation. Thus, we can say that management of technology/technology management includes the factor of technology in all the activities like planning, organising, resourcing and leading the organisation. In this unit, we will discuss about the technology management, which is needed in all the organisations. Different people think differently about technology. In the context of business, economists consider technology as the knowledge used in the production, commercialisation and distribution of goods and services. In this unit, we will mainly focus on defining technology, and different types of technology. We will also discuss about the evolution and growth of technology. We will analyse the role and significance of technology management. In this unit, we will also study the impact of technology on society and business. We will
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also analyse the two forms of technology that is process technology and product technology. ​ This unit will enable us to understand the concept of technology management and its impact on us. Objectives: After studying this unit, you should be able to: · Define technology. · Explain the evolution and growth of technology. · Explain the role and significance of management of technology. · Summarise the impact of technology on society and business. · Describe the two forms of technology. 1.2 Concept and Meaning of Technology and Technology Management As we are discussing about the technology management in this unit, let us first discuss the concept and meaning of technology, and then the concept of technology management. 1.2.1 Technology Technology is derived from the Greek word ´technologiaµ in which "techne" means craft and "logia" means saying. On the whole, technology means having the knowledge of making something. Types of Technology We can define technology in different aspects. The figure 1.1 shows the different technologies that are commonly opted in today·s market. Figure 1.1: Different Types of Technology Let us now briefly discuss about these technologies. · Teaching technology: We can define the technology of teaching as the technology related to systematically designed approaches. This technology includes the objectives, instructional procedures depending on the tasks that the student has to perform. · Instructional technology: As the name suggests, the instructional technology includes certain type of instructions that have to be carried out in a systematic way to achieve the objectives of the particular task. Effective instructions are brought by considering both the human and non human resources. · Assistive technology: As the name indicates, this technology is for the assisting people who want to work within a particular environment. The assistive technologies include technologies used in mechanical, electronic, or microprocessor based equipments. Assistive technologies help the disabled in different ways, such as, it: a Assists them to learn. a Makes the environment more accessible for them. a Enables them to compete in the work place. ​ a Increases their independence or improving the quality of life. · Medical technology: The medical technology refers to the technology including the inventions in the medical field. This has helped many of the individuals to stay alive. For example, artificial limbs, hip and knee implantation helps the disabled to lead a better life. There are some devices that provide respiratory assistance through oxygen supplementation and mechanical ventilation. · Information technology: We can define informational technology as the technology that helps in accessing the knowledge and resources on a wide range of topics. For example, internet is the best example of information technology. 1.2.2 Technology management Technology management means using new technology to create competitive advantage which is quite a difficult job, partly due to differing cultures in a company. Technology is often thought to be solely the domain of the scientific and engineering personnel of an organisation. Yet, successful business use of technology requires strategic decisions about technology by personnel in other functional areas, such as production, marketing, sales, finance, and so on. Thus, the two cultures ² technical and functional ² need to be bridged, and management should integrate technology strategy with business strategy. This is the essence of technology management. Many factors make up the technology development framework and there are several ways of condensing these into a manageable number of groupings or dimensions. Let us have a look at these six dimensions in the table 1.1. Table 1.1: Technology Management Dimensions Broad dimension Relevant factors Technological independence Self-reliance International trade gain Productivity gain Objectives Human need satisfaction Monitoring and control Research & Development Transfer and adaptation Activities Assessment and planning Perspective range ( > 20 years) Long range (11 - 20 years) Medium range (6 - 10 years) Time Short range (1 - 5 years) Resources (human, material, finance, facilities, energy) Constraints Technological level (knowledge, science, skill, information) ​
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Management capabilities Late starter Awareness measures Science culture creation Education and training Mechanisms Criteria R & D institution building Maximise positive and minimize negative effects These dimensions given in the table 1.1 are interlinked and a proper management of technology requires a systematic consideration of all of them. Self Assessment Questions 1. The technology that deals with the medical inventions is called as the _________________. 2. Informational technologies are the technologies that help in accessing the knowledge and resources. (True/False)? 3. Technology is derived from the Greek word _____________. Activity 1: Visit different websites and find out the definitions for technology given by different economists across the world. Hint: www.businessdictionary.com/definition/technology.html 1.3 Evolution and Growth of Technology In the previous section, we learnt about the concept and meaning of technology. Now, we will discuss about the evolution of technology, before going to the other topics about technology. The history of technology dates back to the time when humans were able to prepare some simple tools with easily available natural resources. History indicates that the advancement in technology had a major leap with the invention of the wheel. From the invention of the wheel, much usage of the technology has started. The technology in all the fields has grown to a larger extent and now we can see the technology involved in almost all the things we use in our daily life. We know that there are some advanced technologies at present which include the printing press, telephone and Internet which have helped us to communicate all over the globe. Till now we have mainly concentrated on technology management in general. Now let us learn about technology management in India. Technology management in India The Government of India is mainly focussing on the development of science and technology in the present world. The Indian industries are operating under the controlled and regulated economy. The technology management is generally lacking at the enterprise level except a few enterprises. There are many Indian companies which are able to develop and produce the internationally competitive products. The companies which use different kinds of technologies, and are excelling today, in India are the Punjab tractors, tata automobiles, amul food and certain drug and chemical industries. In the same way, there are many Research and Development (R&D) institutions which have developed and commercialised the technologies in the areas of drugs, chemicals, food technology, and computer software. ​ The productivity of the Indian industries largely depends on the technologies that are imported. Most of the technologies that are used in the Indian industries are cost effective. In July 1991, government of India introduced the new industrial policy that mainly focussed on international competitiveness, quality, efficiency and exports. This helped in the change in operating environment of the Indian industry. Because of this, very well planned technologies were developed at the enterprise level. These days, the companies are paying more attention on technology in order to be more competitive in the business market. It is not only the large scale industries that require the technology management; even the small scale industries also need a technology management to face the competitive world of today. Self Assessment Questions 4. The technology has taken its history when the humans were able to modify some natural resources to _____________. 5. The productivity of the Indian industries largely depends on the technologies that are imported. (True/False)? 6. The small scale industries also need a __________________ to face the competitive world of today. Activity 2: Suppose that you are a lecturer in a university. You want to give a lecture on the evolution of the computer technology. Prepare a lecture outline for the same. 1.4 Role and Significance of Technology Management Till now, we are familiar with the concepts of the technology and the technology management. Now let us proceed further in our discussion and move on to the role and significance of management of technology. There is rapid growth in technology starting from the invention of fire and wheel, till today. The growth rate of technology is also increasing rapidly. The technology that is applied in the production industries plays a major role in the production activities of those industries. The proper monitoring and control of the production helps in achieving good heights in the present market. We have to incorporate many of the technologies to carry out the processes in an organisation and
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compete with other companies in market. For the successful long term operation of the business sector, we need to incorporate certain factors like the technology and management of technology. We need to consider three main requirements for starting a technological innovation-based firm. These three requirements are: · Idea of technological innovation. · A potential market. · Team work in both the technological and business expertise. The three requirements mentioned above, are interlinked. The technological innovations (done in a team for adapting knowledge from different people in the organisation) need to be carried out, for gaining the potential market, which in turn closely interacts with different divisions in an industry. We know that technology plays an important role in running our business and society. We also know that advancement in the technology has greater influence on the creation of national and individual wealth. Let us have a quick overview of the role of technology from different aspects. · The technology of teaching helps to monitor the process of student learning and monitor student activities. · The instructional technology play an important role in the conventional media such as videotapes, computer assisted instruction and many other complex systems. ​ · The assistive technology helps to achieve the idiosyncratic needs of the particular individual. · The medical technology has played an important role in the human lives. It has helped to replace many of the infected organs with the new ones. · Information technology is playing a major role in the growing market today. This helps to access the knowledge and information from across the world. Self Assessment Questions 7. The advances in the technology have the greater influence on the creation of ____________ and individual wealth. 8. Methods and tools are required for managing technical ________. 9. The technological innovation has to be carried out to create competitive environment. (True/False)? Activity 3: Suppose that you are working in a company as a manager and you want to start a new project by creating a business plan. Give the necessary factors that you will consider for creating the business plan. Hint: Current business status. 1.5 Impact of Technology on Society and Business In the previous section, we studied about the role and significance of management of technology. In this section, we will study about the impact of technology on the society and business. The emerging technology has a great impact both on society as well as the business. There are many advanced technologies in the medical field which has helped to save many lives in the world. The technology behind Automated Teller Machines (ATMs) has helped people in the society to perform basic banking activities such as checking bank account balance, and withdrawing funds, even when the bank is closed. As technology is progressing, it is impacting greatly on the business too. This has helped the associated people to communicate effectively with the employees of the different offices across the globe. The advancement in the Internet technology has helped us to download different documents needed to carry out our tasks. The technologies like the web conferencing and teleconferencing are helping us to make conference calls to conduct the meetings, training sessions and so on. Let us briefly describe the effects of technologies on business: · Reduced costs of operations: Different companies use different technologies for reducing manufacturing and administrative costs. · New product and new market creation: This involves the introduction of technology for the miniaturisation of the product. This involves the technology to reduce the size, become easily portable and useful for many applications. For example, the Sony Corporation has introduced the miniaturisation technology that aimed at developing the product with high portability. · Adaptation to changes in scale and format: This focuses on how the devices support the different features. For example, the mobile can support the email, browsing and so on. · Improved customer service: This involves the introduction of technology for improving customer service. This helps to gain the market in the present competitive world. ​ · Reorganised administrative operations: This involves the effect of technology on the administrative activities. For example, the introduction of Automated Teller Machines (ATMs) in the bank has reduced the employee effort that is required of distributing the cash at the cash counter. While studying the impact of technology on society and business, we need to consider the technology and the competition which exists in the present scenario. 1.5.1
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the infrastructure plays an important role and the firms need to be more attentive for developing the new products with the more innovation. starting from creating the technical knowledge to the time it is implemented in the new business. which we will learn in the next section. innovation plays an important role. We will now see some issues related to the technologies. The management has to mange the technology thinking that technology is also a part of business. It is first to the industry. 1. This includes the activities. Innovation: This involves innovating things. Among all the four concepts that are discussed above. which are briefly described below: · Technology and long-term cycles: There are some economists who argue that technology affects growth and recession in the world economy. air-conditioning and refrigeration. a Korean shipbuilding industry has become the leader by increasing the size of the shipyards and many techniques that were incorporated to increase the productivity and capacity of the vessels.googleusercontent. This has the greater effect starting from invention of knowledge to commercialisation of products and processes based on the knowledge. Research and Research Infrastructure.scribd. The new tasks are development of the new products and creation of the new markets. Technological innovation is needed for competing in the market.5/15/13 Om 0018 Technology and competition To compete in the market. This is the main factor which affects the growth of an organisation. technological competitiveness is necessary but this alone is not sufficient. There are some key issues in managing the technological innovation. Managing technology includes four components. second to the nation and then to the whole globe. You can see some of the emerging technologies and their applications in the table 1. These include the ideas such as the types of innovation. There are many technological developments that have taken place in the society.2 Key issues in managing technological innovation We know that technology is man-made and increases the physical and mental capability of human beings. We have to manage and integrate corporate research with the management functions and strategies which are helpful for the technology management. The infrastructure is useful for maturation of the technologies. · Technology and comparative advantage: At the national level.com/doc/82954399/Om-0018 5/87 . The new hi-tech ventures include two main tasks that have to be carried out. Technology helps to give the competitive edge. Innovation.com/search?q=cache:http://www.2: Emerging Technologies and their Applications Most Important Emerging Technology Technologies Potentially made webcache. There are some of the emerging technologies that have to be dealt when you are discussing about managing technology. ​ As we have already seen managing technology involves concepts like new venture. the New ventures. sources of innovation and so on. space exploration. namely.5. the firms will have more value when it has both the comparative advantage and also the technological lead. These technological developments include development of transistors and computers. in the last two centuries. The research and development infrastructure has a greater impact on the competitive environment of our country. When the down turn starts to come up again then organisations has to invest the capital equipment that is based on the new technologies. In the ever growing economic world. The ideas of these new ventures are concerned with the growth of organisation. nuclear energy. Research Infrastructure: The technological concepts are not only confined to a particular organisation. We can say that technology is the useful tool which controls the environment and also acts as an instrument which converts the natural resources in to useful goods. Research: Research plays an important role in an organisation. innovation. and so on. In this case. and the business plan for the new project. research and R&D infrastructure. All the other companies from the world look for your organisation. Managing of research includes the organisation of research.2: Managing Technology New Ventures: The new ventures play an important role in the business. the corporation with inferior technology faces difficulty in competing with corporation with superior technology. This helps to know things better and helps to produce the products.2: Table 1. We can see these concepts depicted in the figure 1. The skills. The emerging technologies are the new technologies that are sometime considered critical for humanity·s future. research personnel and the organisation research strategy. knowledge and competitive leadership have helped them to achieve more heights. For example.2: Figure 1.

com/doc/82954399/Om-0018 6/87 . environment and social values. Some think that technology has destroyed many of the jobs. such as new technologies. But software includes the know-how technique and the procedure that is involved with that. destruction of natural cycles. We can see that many of the countries that are poor though they are very rich in the resources. and equilibrium Air Water Pollution. destruction of marine life. The hardware again is of two types. Information technology includes both the hardware and software.3: Important Implications of Technological World Various human Need factors Positive effect of Technology Control of temperature. We know that information technology plays an important role in the present competitive market and artificial intelligence is the subset of information technology. and fishing grounds Food Shelter webcache. skills and experience. The second type in the hardware is the production tool type like instruments. The technology is viewed in a different way by different people. frequent flooding Chemical contaminations and diseases. Some think that technology is a source of wealth.scribd. technological base is very small or due to the resources that are getting depleted because of the export to other countries. The hardware includes the physical products and components associated with the product. One is related to the end-use product type like the automobiles. Technology is improving the poorest of the poor. variety and supply Negative effect of Technology Pollution. Table 1. control of supply. aluminium Jet engines.com/search?q=cache:http://www. Ensures connectivity everywhere. control of food quality. temperature and impurity Improved agricultural productivity. It is possible for us to achieve the basic human needs in this technological world. sea).5/15/13 Om 0018 Obsolete applications Involves the creation of intelligent devices that can replace the human brain for many tasks. Rockets Wired communication The emerging technologies given in the table 1. The software technology is also of two types. Artificial intelligence can create the human brain and replace many of the tasks. Stronger and lighter materials. sinking of cities. computers and televisions.3. Artificial intelligence Human brain Biotechnology Nanomaterials Scramjet Wireless communication Evolution Steel.2 play a major role in the present world. Let us see the implications of technological applications (positive effects and negative effects) with respect to various human need factors shown in the table 1. well-being. There are many ways of classifying the human needs. machinery and equipments. impurities and quantity Increasing supply source (ground.googleusercontent. ​ We live in the technological world that is helpful in satisfying the human needs. humidity. Artificial intelligence is that category of computer science which is related to making computers behave like humans. forests. Very fast air travel. One of the software type is the "know-how" type such as the processes techniques and next is the "know-why" type technology that includes the knowledge. modifying species to fit for a purpose. destruction of wildlife. Involves the creation of species. The poorness is due to the increasing population.

side effects of medical care medications Increased contact. destructive education Tension between blue-collar and white-collar workers.com/doc/82954399/Om-0018 7/87 . noise. remote-controlled) Efficient production of high quality clothing and apparel Exploitations of non-renewable resources and consumer appeal Warfare Clothing Health Reduction in mortality. congestion.googleusercontent. improved audio. Technology indicates the ____________ and competitiveness of the country. reduced need for Culture shock. strikes Communication Transportation Education Work Institution Information Depersonalization of human being in Creation of systematized. co-ordination of physical movement. drug abuses. depletion of energy and highly productive large complex organizations. nuclear.sabotage by disruptive forces. increase in life Population explosion. resources. and land Better means for storing and dissemination of knowledge Much specialization and automation possible. break in family expectancy. solar and nuclear depletion of energy resources Freedom from one set of constraints (Physical stresses) Creation of new set of constraints (Psychological stresses) Freedom Self Assessment Questions 10. Expand ATM. better utility services social living. destruction of the and land uses beauty of Nature Accumulation of means of warfare Development of civilian technologies and the menace of large-scale destruction of life. enhanced human power Tremendous improvement in processing.scribd. air.5/15/13 Om 0018 Improved living quarters and materials Artificial surroundings and antiof construction. Activity 4: Consider that you are a webcache. risk of bioas by-products of war technologies weapons and nuclear war (space. efficient and the quest for efficiency and productivity. 11. innumerable industrial wastes. accidents and deaths Brain-washing through mass media. crime ​ of voluminous information and misuse of information power Energy Development of alternative sources of Threat of nuclear plant accidents. exploitation of natural other natural resources. increased inequality. better structure. storing and disseminating Privacy and security concerns. increased women employment Pollution.com/search?q=cache:http://www. (True/False)? 12. controlled birth. energy ± fossil. Innovation involves innovating things. raising video transmission false aspirations Improved mobility of people and goods through water.

com/search?q=cache:http://www. 1. Firstly. strengths and weakness in a common language. road maps play an important role in linking the marketing strategy to product plans and then product plans to the technology plans. identifying needs.6 Forms of Technology In the previous section. the product technology. 1. then we can accommodate more transistors in less space. the process technology. Measured in Nanometres The features of the chip are measured in micrometers. size is measured in nanometres. we will emphasise on two different forms of technology. which are necessary for all the industries. process technology. the roadmaps link the strategic choices based on the competitive environment to the product evolution and future implementation. The roadmaps help for the longer term planning and help to improve the communication and ownership of plans. since there are roadmaps for several product lines. The size of the other features of the transistor is measured as the ratio of channel length.1 Process technology The process technology is the technology that is used to create and deliver products and services.2 Product technology As we are now familiar with one of the forms of technology. the process technology was referred to as the length of the silicon channel between the source and drain of the field effect transistor (FET). Prepare a list of the factors that are considered in managing technology. namely. Hint: Process technology. switch very faster. that have to be assigned in each step of the planning process. Let us understand process technology by taking the example of digital integrated circuits. we studied the concept and meaning of both the technology and technology management. We also saw the great impact of technology on society and business. product plans and technology plans. We can measure the technology used in the digital integrated circuits in the following manner. The roadmaps also help in team thinking prioritywise. · Enabling corporate-level technology plans: We can see the roadmaps for simple needs that are met by a single development program. This helps totally in achieving the strategic ​ objective. Let us start with the process technology. Let us have a look at the main functions of the roadmaps in the product technology.5/15/13 Om 0018 manager in a company and you want to manage a technology that is newly incorporated. We use product technology to define the plan for the evolution of a product. We analysed that we require business plans to start any new project. The ______________ refers to the methods that are used for making the silicon chips. Self Assessment Questions 13.com/doc/82954399/Om-0018 8/87 . that is. there can 90nm length but the width of the gate terminal can be only 50 nm. Product technology is used to define the plan for the evolution of a product. the process technology refers to the methods that are used for making silicon chips.googleusercontent. But in the present world. But. 1. In the digital integrated circuits. In the earlier ages. This aims at reducing the size of the integrated circuits. This brings down the size of the transistors and other components. The needs are identified by cross roadmaps by analysing the database of roadmaps. then they require lesser energy. In this technology. The process technology of 3 micrometer is called as a "technology node" or "process node" that is called as the silicon chip with three micrometers in size. 14. in a 90 nm. It has grown to the larger extent because of which we are in the super computer era at present. The other features can be larger or smaller than the channel size. When the chips.scribd. and product technology. we require new technologies to be webcache. After linking this. it links the product plans to the technology implementation plans. The functions of the roadmaps are: · Linking strategy to product plans to technology plans: The people involved in the creation of strategies. we analysed the impact of technology on society and business. that is. gaps. In this section. We can say that the goal of the process technology is to evolve new technologies methodologies for assisting human-centered cooperative activities. Product technology helps us in linking the business strategies with the evolution of the product features. 1. We briefly described the topics related to the technology management. (True/False)? 15. let us have a brief discussion on another form of technology. These roadmaps help the corporate for planning. We also discussed that to compete with market in the present world. Hint: Innovation.6. the roadmaps mainly concentrate on linking. The process technology of 3 micrometer is called as _________. If the size of the transistors is small. Activity 5: Prepare a list of the different forms of technology that is commonly used in Indian industries. will create them independently.7 Summary In this unit. For example.6. We analysed that technology has evolved from the time when fire was invented.

11 Case Study Case Study on the Inclusion of New Technology This case study is about the incorporation of the technology in the Xerox company. In 1990. There was a great time for the company from the early 1960¶s to the 21st century when many of the technologies introduced and the laser printers all came to the use. We also studied different forms of technology. 4. 4. multi beam lasers and micro-electro-mechanical systems which has revolutionised the Xerox industry. Refer section 1. Refer section 1. Murthy became the CEO and then he concentrated aggressively on improving the profitability. Results The Xerox company is now technologically improved a lot.3 Evolution and Growth of Technology. Define the term technology. 2. The act of introducing something for the first time. it experienced a dip due to corporate crisis and the Chief Executive Officer (CEO) also died. Resources 9. 2. In the year 2000. A business enterprise that includes some kind of risk in expecting the gain. The act of providing electricity. Questions: 1. Briefly describe the two forms of technology. Economic growth 13. 1. 1. In three decades it came with the new technologies and brought the good will and prestige to the Xerox company but the profit was very less. the XYZ research centre that was set up by the Xerox company was separated from the parent company as a separate entity. True 6. Explain briefly the impact of technology on the business. Technologia 4. Medical technology 2. Write a short note on evolution and growth of technology. True 12. In the 21st century the XYZ research centre was aimed to work on innovative ideas and produce products like the blue lasers. Refer section 1. Understanding the conflicting structure and culture issues involved in managing the innovation successfully. The process technology aims at reducing the size of the integrated circuits.5/15/13 Om 0018 incorporated with our product. ​ OM0018-Unit-02-Technology Acquisition Unit-02-Technology Acquisition Structure: 2. Technology node or process node ​ Terminal Questions 1. Refer section 1. The road maps that are used for analysing the database of the roadmaps. Technology Management 7.5 Impact of Technology on Society and Business.5 Impact of Technology on Society and Business. semi conductor device which has the capability to amplify and controls the flow of electric current. True 15. What was the main aim of New CEO Murthy? Hint: Profitability. Process technology 14. 1.9 Terminal Questions A small electronic. True 3.scribd.3 webcache. A structural or behavioural characteristic distinctive to an individual or group. 1. What are the challenges faced by the XYZ research centre? Hint: Understanding the culture of the organisation 2. 3. Challenges: 1. The company took a massive restructuring program to maintain stability in the company. Explain briefly about Managing technology. Refer section 1. Automated Teller Machine 11.1 Introduction Objectives 2. and product technology. True 10.googleusercontent. To study about the ways in which the organisation lost its opportunities in the past and the way that it has to be restructured to meet the needs of the future.10 Answers Self Assessment Questions 1.2 Technology Acquisition 2.8 Glossary Term Commercialisation Innovation Ventures Description The act of involving something in commerce.com/doc/82954399/Om-0018 9/87 . Simple tools 5. 2. The detailed explanation of the plan which helps to determine the course of action. The unit of length in metric system that is equal to one millionth (10-6) of a meter. After this incident.2 Concept and Meaning of Technology. National 8. 5.6 Forms of Technology. 3. namely. The new organisation called as the XYZ Ltd was expected to provide the research services and innovative products to the industry leaders in different areas. First it was thought to combine with the other companies but later it was considered as a wholly owned subsidiary of Xerox. ​ Transistor Electrification Micrometer Roadmap Cross roadmap Idiosyncratic 1. and the product technology links the business strategies with the evolution of the product features. 5. process technology.com/search?q=cache:http://www.

Advantages of technology acquisition There are some advantages that are associated with the acquisition of technology. Objectives: After studying this unit. The technology acquisition causes the _____________ in the organisation that affects many of the employees in an organisation.com/doc/82954399/Om-0018 10/87 . · Cite the reasons compelling a company for obtaining a new technology. the evolution and growth of technology. 2. Acquisition helps us to get the complementary products that help for the success of the organisation.8 Glossary 2. all the efforts and planning need to be focused on the problems of technology acquisition. we will study the different alternatives for acquiring new technologies. for long.6 Measures of Scale and Mechanisms for Acquiring Technologies Economy of scale or Scale economy Levels of scale The measurement of scale Factors affecting the choice of scale 2. · The technology acquisition causes the confusing and disruptive process in the organisation. This unit will also give us an overview of the reasons that compel the company for acquiring technology.7 Summary 2. Acquiring technology is helpful for evaluating and managing the technology. · Our understanding of the topic will be incomplete. This unit will familiarise us with acquisition of technology which plays an important role in managing the planning process in an organisation. By now.2 Technology Acquisition As we are familiar with the term technology. and operator training. let us now study the meaning of technology acquisition. demonstration. 2. role and significance of management of technology. · Explain different measures of scale and different mechanisms for acquiring technologies. This external knowledge involves incorporation of knowledge into machinery and equipment. We have also seen the impact of technology on society and business and the different forms of technology that are process technology and product technology. This also includes activities which help supplier of equipment in the process of Technology acquisition. (True/ False)? 3. Self Assessment Questions 1. and as such. In this unit we will study about the alternatives for acquiring new technologies.1 Introduction Previous unit familiarised us with the concept of technology.googleusercontent. · Acquisition helps for the improvement of research and development centres. The operational skills include plant-commissioning. So. you should be able to: · Explain the meaning of technology acquisition.scribd. Disadvantages of technology acquisition · The technology acquisition causes the change process in an organisation that affects many of the employees of that organisation.3 Alternatives for Acquiring New Technologies ​ As we are now familiar with ¶technology acquisition·. if we study only the advantages and leave the disadvantages. We know that a new technology is often acquired in an embodied form along with the equipment and facilities. · Acquisition helps us to acquire more revenue because of the new technologies that are incorporated.4 Reasons Compelling a Company for Obtaining a New Technology 2. fewer webcache.10 Answers 2.11 Case Study 2.5/15/13 Om 0018 Alternatives for Acquiring New Technologies 2. · Acquisition helps us to get the complementary products that help for the success of the organisation. This unit will enable us to analyse the importance of technology acquisition and its relation with management. Generally. Acquiring technology involves the purchase of external technology and knowledge without getting co operation from the source. let us now have a look at the disadvantages of the technology acquisition. We are presently living in the competitive world.com/search?q=cache:http://www. we can define technology acquisition as the process that requires the strategic planning. 2. The acquisition of a new technology arises from the need to implement a corporate technology strategy. We will also learn about the way to manage the acquired technology and different measures of scale and mechanisms for acquiring technology. Now let us have a brief discussion on the advantages and disadvantages of technology acquisition.9 Terminal Questions 2. Technology acquisition is the process that requires the strategic ________. · Describe how acquired technology should be managed. We can acquire this external knowledge by hiring the people those who have the basic knowledge of new technology. we are familiar with technology acquisition. The technology managers have less time. ​ · State the available options/alternatives for acquiring new technologies. The organisations have to use the advanced technologies to remain in competitive market of today. We also need to carry out further application development work by establishing operational skills.5 Management of Acquired Technology 2. and is more time consuming and complicated.

the operations can be effectively integrated and that there is no undue loss of key staff. Technology acquisition is mainly designed for the business-to-business technology acquisition. · Technology acquisition helps for enhancing the productivity of an organisation. · Obtain license for use of technology: We know that the term license means the purchase of access. webcache. we learnt in brief about the different alternatives for acquiring new technology. in the same way. Now let us discuss about the reasons which compel a company for obtaining a new technology. products or services. (True/ False)? 9. · Technology acquisition depends on the policy environment.com/doc/82954399/Om-0018 11/87 . In such times.4 Reasons Compelling a Company for Obtaining a New Technology In the previous section. The membership of the research gets more attraction when the risks are high and the costs are heavy. The different alternatives are: · Develop technology in-house: This involves development of the technology within the house. It can be anything from the right to use a particular patent to a complete package. The fastest way of bridging the technology gap is through collaborations. · Enter into joint ventures: We know that many of the companies share the costs of the new technology. (True/False)? 2. The membership of the research gets more attraction when the risks are low and the costs are also low. the company has to make an estimate of the financial costs that are associated with the Research and Development (R&D) and the cost of the opportunities that are associated with R&D. Technology acquisition helps for enhancing the ________ of an organisation. The following explains the reasons that compel the company for technology acquisition. 6. ​ · Technology acquisition is the process by which a company acquires the rights to use and exploit a technology for the purpose of improving or renewing processes. Technology acquisition helps to bridge the gap in ________ in the developing countries like India.googleusercontent. · Technology acquisition helps to bridge the gap in technology.com/search?q=cache:http://www. the benefits are also shared. In this. it has to make decisions related to the acquisition of the technology. Whenever a company wants to adapt the new technologies. The use of new technologies plays an important role in the industry. It will be better. The term license means the purchase of __________. technology comes from a university or research organisation. Acquiring the technology from outside company is more costlier than acquiring technology from the R&D of the same company. The acquisition of technology becomes critical when the market lead time and competition is more. The company has to see the experience of its R&D for the actual need of acquiring the knowledge. This also assesses the suitability of the employees for the new project. It does not include retailed or mass market off the shelf software which is generally governed by non-negotiable "shrink wrapped" licences.scribd. In this case it is the purchase of access to the proprietary technology. · Buy the firm that has the technology: We have to invest for the introduction of the technology. if we develop the new technologies from the in-house R&D. proven and ready to use. The company planning for technology acquisition has to make the agreement between the two companies and even the details of the costs are also present as part of the application. We can gain experience by keeping in touch with other companies. The experience makes use of techniques more effectively. There will be existence of very good relationship between the key supplier and the major customer. The dependence of the company on the collaboration is bad and we should have the self-reliance in the company every time. The origin of the technology can take place in any area but it has ton be tested. There are many alternatives for acquiring the internal and external technologies. Sometimes the economic policies do not allow the foreign countries to sell their goods and services in the domestic market. in the developing countries like India. It is also important that following the purchase. the foreign companies can get the financial returns only through the collaboration and selling the raw materials and components. · Education and training: The soft skills required for the new project are developed by the training programs in the organisation. 5. Self Assessment Questions 7.5/15/13 Om 0018 resources and more problems for the implementation of the technology. The soft skills required for the new project are developed by the ______________ in the organisation. In few cases. which includes know-how agreements. commissioning assistance for new plant and processes and the provision of updated designs and other technical information. · Technology acquisition is mainly designed for business-to-business technology acquisition. 8. Self Assessment Questions 4.

the firm analyses the technology and takes the decision whether to accept or reject the technology.1: Factors of Feasibility The figure 2. · Because of the nature of its acquisition. Managing things play an important role in an organisation. we learnt about the reasons compelling a company for obtaining a new technology. · Space requirement: This involves checking whether it can accommodate the technology. · Availability and maintainability: This checks the availability and maintenance of new technology in the organisation.googleusercontent. · Contract negotiations can be time consuming. Therefore. We have analysed from these factors that the company choose the technology depending on the feasibility of the technology. 2. we have seen the factors that have to be kept in mind. so that it helps in choosing the alternatives. Techno-economic criteria and multiple criteria. They require diplomatic skills and careful record-keeping. Once the strategic decision has been made to acquire a technology from outside the company. the transfer constituents vary in type and character. Let us briefly describe these factors. Figure 2. In many of the cases.5/15/13 Om 0018 Activity 1: Consider that you are the team manager in the company and the company is planning for the acquiring technology. while his colleagues need to have engineering application and change management skills. the company will not consider a single technology. ​ Evaluation of technology The evaluation of technology is necessary in managing the acquisitions of technology. · Raw materials requirement: The raw materials that are required both quantitatively and qualitatively to adapt the new technology is found out. This topic of evaluation of technology is considered in the next few paragraphs. · Infrastructural changes required: This involves the requirements related to the infrastructure. The investment is required for all the technologies that are introduced. The managing technology should also consider the evaluation of technology. we will study about the management of technology acquisition. especially its capability of managing the transfer activity. Prepare a list of the reasons that are forcing to go for acquisition of technology. but it considers the alternate technologies and chooses the best one. If the transfer is from a different culture. The project manager must be at a senior level. In this section.1. Evaluation based on feasibility: The evaluation based on technology feasibility involves the evaluation process that decides whether the technology is suitable for the organisation or not.com/doc/82954399/Om-0018 12/87 . · Capital investment required: This helps us to decide whether to invest in the technology or not. Even the technologies that are required also require management. Hint: Bridge the gap in technology. they are evaluated on the basis of some criteria like Economic criteria. Let us firstly discuss about the evaluation based on the technical feasibility.1 shows the Factors of Feasibility. Effective technology acquisition is often based on a longer-term relationship. transferred process technology needs to be handled with even more care than indigenous technological change. It is important that all affected company staff appreciate the nature and reasons for the acquisition. The Evaluation can be done based on the feasibility or based upon some criteria for managing the acquisition. This checks whether the organisation possess the infrastructure to take the new technology or not. Let us see the factors that are considered in the evaluation based on technology feasibility as shown in the figure 2. The following are the important factors that have to be kept in mind for managing the acquisition. · The role and management of technology within the company needs to be assessed.com/search?q=cache:http://www.scribd. In managing the acquisition technology. When there are more than one technologies. the management of that acquisition becomes important. · Life of the equipment: This involves finding the life of the equipment. · The corporate objectives include capability and the technology transfer track record of the prospective transferor. · Manual difficulty: The manual difficulty involves finding the skills that are required in acquiring technology. Based on these factors. · Clear technical and contract specifications are essential. · The allocation of appropriate staff for the transfer and application of the technology is done. Because of the nature of the technology and its integration with intellectual property. we have the technology choice model which considers the different webcache. · Capacity: This involves the capacity of an organisation to adopt the new technology. special attention has to be given in detail and the meaning of language.5 Management of Acquired Technology In the previous section.

​ 12. Evaluation becomes necessary not only for choosing appropriate technology. Expand PROMETHEE. in addition to economic and technical criteria. which is essential for technology choice-making. but also for verifying whether the technology in question is suitable to the environment or not. An index is then prepared by normalising the quantitative parameter values and by the addition of the values of all parameters. Economic criterion is the most popular method as it involves the _________. and Preference organization method for enrichment evaluation (PROMETHEE). 2. in addition to the economic and technical criteria. and social. it has become essential to evaluate alternate technologies using multiple criteria such as environmental. no doubt. · Techno-economic criteria: Techno-economic criteria involve the verification of technical feasibility.com/doc/82954399/Om-0018 13/87 . and social. Therefore. You have to check the feasibility of technology. This plays an important role in management of acquired technologies. The technology choice model is an integrated model which considers different criteria with different scale of evaluation. Hint: Manual difficulty. Personnel requirement. (True/False)? Activity 2: Suppose that you are the team lead in the company and the company has decided to go for the acquisition of the new technology. In this section. 11. The commonly used economic criteria method is the discounted cash flow method and parameters are the present worth or the internal rate of return.2. However. Space requirement. We can see many of the methods in the multi-criteria decision making. The multiple methods include Simple weighted average method. these monetary values can also be adjusted for inflation which is not a normal practice.6 Measures of Scale and Mechanisms for Acquiring Technologies In the previous section.googleusercontent. yyyyyy · Multiple criteria: We have to evaluate the alternate technologies using multiple criteria such as environmental. where the world is more concerned about the degrading environment. These are helpful in the selection of suitable technology for an organisation. Elimination and choice translation algorithm (ELECTRE). Figure 2. there is no formal procedure for evaluation of weights. The people among webcache. The alternative technologies are compared for a specified set of parameters such as: Raw material requirement. technical feasibility is also verified when the technologies are complex. The technology choice model criteria are shown in the figure 2. Technologies are evaluated taking in consideration of the competing technologies and these are evaluated independently.5/15/13 Om 0018 technologies with equal evaluation. Technology selection is required in all the industries of the present world. Now. The qualitative parameters are qualified over the scale from 0-10 as that in social sciences. Capacity per unit time. we will study about the measures of scale and mechanisms for acquiring technologies. Material handling requirement. In addition to economic feasibility. we can find that some are quantitative and some are qualitative. They are. It is said that a technology. which became popular or which was found to be the most successful technology in a country may not be suitable to another country.2: Technology Choice Model Criteria Let us briefly explain these three criteria of technology choice model. mining societies. and so on. necessary but are not enough to evaluate technologies in the present situation. we have learnt about management of acquired technology. Technology choice model ​ The technology choice model is an integrated model which considers different criteria with uniform scale of evaluation. Among these parameters. However in these methods. Useful life.com/search?q=cache:http://www. List the feasibility factors that you will follow for the same. let us study about the Technology choice model. The discount is generally made assuming a minimum attractive rate of return (MARR). Both economic evaluation and techno-economic feasibility are the conventional methods of the choice model. Self Assessment Questions 10. · Economic criteria: Economic criterion is the most popular method as it involves the monetary value and expresses the benefit in terms of monetary value. Let us study the multiple criteria.scribd.

2 Levels of scale Now.3. material cost per unit of output. We can call it as the corporate level and all the functions in this are related to the corporate scale. which play an important role in mentioning the different hierarchies. Generally.6. This involves the co-operation among organisations. the increased size is not without problems. · Market restrictions: There are market restrictions with the new technologies in which there are some technologies that are applicable only for the few markets. ​ Figure 2. it is observed that as the size increases. economic status. We can define scale as the level of planned production capacity that has determined the extent to which specialisation has been applied in the sub-division of the component tasks and facilities of a unified operation. Financial value of daily or annual output. we will now study about the measurement of scale. This is called as the industrial level.6. 2. Even in competitive environment. it is necessary to determine the scale of proposed operation. This involves the use of several separate units. We can achieve economies of scale by: · Specialisation of technology. In many situations. So. differ in their culture. 2. However.1 Economy of scale or Scale economy We know that every organisation requires scale of economy to run the business and for the evaluation of the acquired technologies. it is easier for us to understand the levels of scale. It was also found that the capital investment per unit of output. Let us have a brief discussion on these measures below: · Absolute measures of scale: The absolute measures of scale include the measures like: Number of people employed. Physical mass or volume of daily or annual throughput. Physical area or volume occupied in an organisation. · Rationalisation and standardisation of the new technology. When this proportion is not in harmony. · Unemployment: The introduction of new technology reduces the employees needed in the organisation.com/search?q=cache:http://www. it is difficult to provide a single measure of scale.5/15/13 Om 0018 countries. attitudes. The introduction of new technology has much use of the machines and reduces the man power that is needed. education. · Level 3: Level 3 is the scale of a single organisation. fuel cost per unit of output and so on. · The performance measure of scale: The performance measure of scale includes the factors that are related to the performance of the organisation. · Level 1: Level 1 is the scale of a single unit of physical equipment called as the engineering level or unit level. We can call it as the plant level. are lower with large size. Let us see some disadvantages associated with the present large scale industries are: · Environmental problems: After the introduction of new technology there can be some problems that effect the environment.googleusercontent. now we will demonstrate the scale economy. before determining the alternative technologies. We can divide the problem of scale into the five hierarchies of levels. · Relative measures of scale: The relative measures of scale include the measurement of factors like: yyyyy Size of unit being considered. This is the scale of a single plant or factory. Financial value of the capital employed.6. common pressures and the perception of common interests foster co-operative behaviour at the industry level. · Level 5: Level 5 is the scale at the national or society level. even within the large countries. We can even take the size of production or quantity of service that provides a break as economy of scale. Scale is not merely size but size with proportions and consequences.3 The measurement of scale After studying the different levels in the scale. it creates problems.com/doc/82954399/Om-0018 14/87 . as given in the figure 2. as we know the economy of scale. 2.3: The Hierarchies of Levels Let us now have an overview of these hierarchical levels of scale.scribd. The performance measure of scale includes the measures like: webcache. · Level 2: Level 2 involves the arrangement of several product lines at a single site. Size of largest existing unit. · Concentration on production. the cost per unit decreases. This involves the process of determining the functions and purposes to determine the measures. However. We can call the scale of single product line as the product level because the product deals with single level. · Level 4: Level 4 is the scale of total industry or the industrial complex.

scribd. Generally. Time / year capacity: This involves the capacity of the organisation to produce the product. a generic model is developed here: Yt = a tb (or) Yt = c Xtd Where. whereas the factors that cause the decrease of scale are mainly external factors. social factors like unemployment and the economic factors. · Engineering ² Economic systems: This involves the use of analytical models to determine the choice of optimal size. let us now discuss about them. Self Assessment Questions y webcache. ice-creams are perishable and so on. This helps to compete with the other industries in the market. Technological development: This also appears to be engineering approaches but deals with dimensional analysis and models of growth. but there have been some crossindustry generalisations. The output depends on the input that is fed in to the process. the decision is crucial at the time of procuring the equipment. ​ Own market share: This involves the market share of the target competitor. We can use any of the following approaches to solve problems of scale.5/15/13 Om 0018 yy yy Output of useful goods: This involves the resources that are given as the input for the process. you must be able to distinguish between conclusions specific to that industry and you can decide the application of those products. scale characteristics and the costs of alternatives on the optimal size and optimal mix. where as the ¶pk· is the variable cost. In engineering analysis. Constant ¶a· is the fixed cost.4 Factors affecting the choice of scale There are many factors that affect the choice of scale. The factors include the political factors. For example. Now theoretical base is explained for values of ¶K· but empirical results are better.com/search?q=cache:http://www. · Engineering Generalisation: Engineering aspects tend to be industry specific. desired Return on Investment (ROI). These are explained as follows. the factors that favour the increase of scale are mainly internal to the firm. The cost.Output approach is one of the prominent techniques of econometrics. Additional capacity may not cost more if purchased at the beginning instead of a low capacity one but it may be very costly to add that capacity later.the size of the largest unit at time t Xt cumulative production up to t. ¶k· is obtained from empirical studies and recorded for a wide variety of processes and equipments. This considers the effect of market growth. Yt .com/doc/82954399/Om-0018 15/87 . Social Science and organizational scale: It says that the scale also depends upon the size and form of the organization. and a.googleusercontent. So. This specifically deals with the evolution over a time period of the relationships between the key features of engineering systems. After learning about the measures of scale. it is incomplete if we leave the factors that affect the choice of scale and the optimum scale approaches to solve the problems of scale. Studies reveal that there is a close relationship between the organisational form adopted and the phases of development of industry. This involves the concepts like social science and organisation scale and the control theory. here. d are constants for the particular technology. Therefore.6. y 2. This involves the capital that has to be invested. is expressed as: Cost = constant x capacity C = a + pk Here. rather than considering the plant design and operation. · Industrial economics and econometrics: This approach uses static economic models and U-shaped cost curves more generalised using standard regression techniques to fit various parameters. c. While approaching the scale of such a product. · Industry-specific approach: In this approach. We may initially use a balance between these two. electricity cannot be stored. b. Input . it is assumed that the problem of scale is technical and industry specific. y Control theory: This concept involves the analytical models to control the strategies. Computer simulation models underlying interactions consider it as a dynamic and stochastic system and use control strategies. to determine the optimum scale.

We also studied the different alternatives for acquiring new technologies. Refer section 2. Industry 15. 2. ​ 4. It can be through the purchase of shares or assets. The group of products that are developed by the organisation that are closely related in terms of use. You have to see the performance measure of the scale.1 Economy of scale. Refer section 2. Monetary value 11. production and marketing requirements. False 13. Give the reasons that compel a company to go for the new technology. 15.2 Technology Acquisition. Refer section 2. We have also discussed about the measures of scale and the levels of scale that is given in the hierarchical way. The activity that converts the installed hard-ware of a new plant into operational activity. Planning 2. True 3.7 Summary In this unit. education and training. Productivity 10.8 Glossary Term Description The purchase of one corporation by the other. Acquisition Proprietary technology Corporate technology strategy Plant-commissioning Operator training Shrink wrapped licensee Product lines 2. The special training given in the organisation for the individuals to learn the specific skills. 2. (True/ False)? ​ Activity 3: Consider that you are working in the company that has acquired technology from the external sources. techno-economic criteria and multiple criteria.5/15/13 Om 0018 13. Preference Organization method for Enrichment Evaluation 12. True 9. Terminal Questions 1. 2.6.scribd. 2. enter into joint ventures. 3. List the factors that are involved in the performance measure of scale. We know that when we planned to acquire the knowledge from outside then it needs to be managed properly. Technology 8. One way of evaluating is the evaluation based on the feasibility and the other way is by the technology choice model that considers the three criteria.com/doc/82954399/Om-0018 16/87 .10 Answers Self Assessment Questions 1. Level 2 in the levels of Scale is called as the plant level. What do you mean by technology acquisition? 2.googleusercontent. Acquiring technology involves the purchase of external technology and knowledge without the co operation of the source. Explain any two alternatives for acquiring new technologies. Industrial economics and econometrics uses economic models. 3. (True/False)? 14. True 14. which is the process that requires the strategic planning. This is the private technology that is owned by the particular company. we learnt about the technology acquisition. These different alternatives include develop technology in-house. These criteria include the economic criteria. Explain in brief about evaluation based on feasibility.com/search?q=cache:http://www. 2. since the technology acquisition helps the industry in many ways especially in the field of R&D. Training programs 6.11 Case Study Case study on acquisition of webcache. buy the firm that has technology. We also analysed the reasons that compel the company for the technology acquisition. Change process 4. The end user agreement that is enclosed with software in plastic wrapped packaging. 5. The plan that integrates the strategies of whole business within the organisation in terms of technology. obtain license for use of technology. 4.4 Reasons Compelling a Company for Obtaining a New Technology. This also requires the evaluation of the technology that can be done in different ways. Refer section 2. False 7.5 Management of Acquired Technology. Access 5. Write a short note on economy of scale. 5.9 Terminal Questions 1.3 Alternatives for Acquiring New Technologies. True. Industry-specific approach assumes that the problem of scale is technical and ________specific. Hint: Output of useful goods. Refer section 2.

They did not focus on the structures of the organisation. let us first define ¶forecasting·. 3. This involved the introduction of technology. This involved a decision that has to be made for whether to develop the technology internally or buy the technology from the external resources. What are the challenges faced by the company in developing the R&D of the company? Hint: Cost of R&D. then it is key technology with high feasibility and can work on itself. for the development of an industry. traditional forecasts used to deal with the speed and power. Questions: 1. including the availability and level of external resources depending on the political situation and the ​ cost of technology acquisition. Otherwise.2 Concept of Technology Forecasting Before we start our discussion on ¶technology forecasting·. It has undergone many of the challenges mainly in improving the R&D of the company. In this case.8 Glossary 3. Previous unit also familiarised us with the alternatives for acquiring new technologies. · The cost of the R&D became more than that was expected. · Relate planning and forecasting. Objectives: After studying this unit. We can define technology forecasting as the process that predicts the future characteristics and timing of technology. Generally. ¶forecasting· refers to the prediction of future on the basis of available information. The ABC company team developed the feasibility attractiveness map. In this unit. we are familiar with the concept of technology acquisition.2 Concept of Technology Forecasting Characteristics of technology forecasting Technology forecast method Principles of technology forecasting 3.1 Introduction Objectives 3. The parameters like feasibility and attractiveness are considered in preparing the map. The team of ABC company has developed morin matrix segmentation which has three regions.com/search?q=cache:http://www. The analysis of methods was carried out and an algorithm was developed to select both priorities of technologies. The map was developed for both the technologies. you should be able to: · Define technology forecasting. OM0018-Unit-03-Technology Forecasting Unit-03-Technology Forecasting Structure: 3.scribd. The technology which has the majority score in both the parameters is the resulted one and that technology is chosen for the acquisition. advantages and disadvantages of technology acquisition.5 Forecasting Methods and Techniques 3. 2.4 Need and Role of Technology Forecasting 3.7 Summary 3.10 Answers 3.googleusercontent. It was assumed that inventions of the future are not easy to predict.3 Technology Forecasting Process ​ 3. They are: · The shortage of those employees who know the new technology. · Justify the need for technology forecasting. The forecasters were not focussed on evaluation of the forecast process. The technology forecasting is done by considering the webcache. If the technology is able to occur in region A. We also learnt about the management of acquired technology that is required in all companies.1 Introduction By now. In the early days. We will also study about the role of forecasting in planning process. we are going to define technology forecasting and discuss about the need for technology forecasting. But the company was successful in managing the new technology with the available staff and the cost by seeing some other alternatives of the same quality product. · Examine the role of forecasting in planning process.com/doc/82954399/Om-0018 17/87 . We are also going to discuss the different forecasting methods and techniques. Results: The company has chosen the acquisition of technology internally by devolving the R&D of the company. it has to go for the external resource. What was the step taken by the company to reduce the cost of R&D? Hint: Alternative.9 Terminal Questions 3. Based on all the factors. We have also discussed about the measures of scale and mechanisms for acquiring technology. the critical factors were chosen. At last we will see how to relate planning and forecasting. it has set priority to go for internal development of R&D. This helped the company for placing itself in the competitive market.6 Planning and Forecasting 3. it has to look the political situation of the country and it should also consider the cost of internal R&D.11 Case Study 3.5/15/13 Om 0018 technology This case study deals with the technology acquisition using the priority setting method in the ABC company. · Describe and apply different forecasting methods and techniques. Even to develop it internally. and the reasons compelling a company for obtaining new technologies.

we have to determine the purpose of the forecast that the project has to serve.googleusercontent. We require the following information in this case of forecast. We can divide the information into four elements. The technology forecasting is done at the early stage of the project life cycle. The forecaster has to take the historical examples in order to forecast in a better way. · Analysis of new technologies that may change the strategies: This analysis helps to evaluate the improvements that a new technology offers for its internal strategies. · A technological forecast also relates to useful machines. The substitution analysis is helpful for the growth of the company. technical specifications including energy efficiency.. ​ Thus. let us now learn how to represent the technology in the form of quantitative terms. In this. safety. The forecaster need to have clear idea of the organisational goals and goals of the units for which the forecasting is prepared. We know that technology considers both hardware and software. since they depend more on personal tastes rather than on technological capability. The forecasting process helps in effective management of technology. so on). · Evaluation of the present value of technology being developed: It is common that we provide the monetary value to the technology during its development. In this regard. or techniques. and long-term. This involves the way profitability of a company is affected by competing and non-competing technologies. The technical ​ parameters include the parameters like the inlet temperature. the technological forecasting is nothing but the future characteristics of useful machines. environmental. We will now discuss these steps: · Selecting information requirements: In this first step in deciding the technology forecast project. we consider ¶when· and ¶to what extent· the technology will be commercialised. The hardware includes the mechanical or physical hardware and software includes the procedures and methods for organising the human activity. temperature. The complexities in technical. procedures. 3. Use of technology forecast in the evaluation process involves the analysis.5/15/13 Om 0018 parameters. · A technological forecast relates to certain characteristics such as levels of technical performance (e.2 Technology forecast method There are some steps in deciding the technology forecast method. The technology forecasting does not have any law because of the complexities that are associated with the systems. power. · The technology being forecast (Qualitative element): This involves definition of ¶what to forecast· in the technology. The decisions made at the early stage influence the subsequent time of that project. processes. products.the output: The data that is collected for the forecasting process defines the amount of information that is contained in the technology forecast. there are some characteristics that are associated with technology forecasting. It also defines whether it is forecasting a single approach of technology or the common technology. picture phone.scribd. For example. attributes and capabilities of technology. There are both the functional and the technical parameters with this. emission levels.2.com/search?q=cache:http://www. · The characteristics of the technology (Quantitative approach): As we have defined what to forecast. We will now discuss them briefly. The functional parameters are related directly to the user. Forecasting consists of the strength and weakness of the empirical sciences. costs. Technological forecasting is an attempt to predict the way things are going to be done. In particular. the substitution of copper cable with the optical fibre cable. so on). this is intended to exclude the items intended for pleasure or amusement from the domain of technological forecasting. · A technology forecast can be for short-term. Technology forecast also helps in setting the strategies for different technologies. We cannot mix both the webcache. attributes and parameters. Technology helps to improve the overall schedule of the R&D. · Assistance in the management of R&D: The forecast helps to set the realistic goals for product or process of R&D project. economical and ethical contexts are very difficult to remove. compression ratio. medium-term. rate of technological advances (introduction of paperless office. speed. procedures or techniques.2.g. · Evaluation of the new products that can present threats or opportunities: The evaluation is done to verify whether the new product is causing the threats or causing the opportunities. we can say that technology forecasting deals with the prediction of future technological capabilities.1 Characteristics of technology forecasting Generally. new materials. 3.com/doc/82954399/Om-0018 18/87 . · The elements of a forecast . · The rate at which new technologies replace the old one: This tells the rate at which the new technology replaces the old technology.

3 Technology Forecasting Process In the previous section. · Time: While making any decisions regarding technology. Lastly the resources that are required to define the forecast are identified. · Judgement: This involves the judgement that has to be taken by the forecaster when there is no data about the past. we will discuss about the principles of technology forecasting. The time of forecasting is concerned with the time the condition or event occurs in the future. Self Assessment Questions 1.2. · Do not use judgement to revise predictions from cross-sectional forecasting models that contain relevant information: We should avoid judgemental revisions and include the available information about job of a candidate in a quantitative model. so that we can have the optimum result at least. desiring for the outcome. All the forecasts mainly depend on the assumptions. · Forecasts provided by efficient markets are optimal: Most of the times. The forecasting process Twiss[2] has suggested some general elements for the technology forecast process. The forecasting process involves three elements that are shown in the figure 3.1.googleusercontent. so the decision-maker of the forecast will gather the information like the assumptions and data. This insight helps to merge divergent thinking with creativity. (True/False)? 3. ​ Figure 3.5/15/13 Om 0018 technical and functional parameters. we have to consider the time when we are forecasting for any of the project. This probability factor defines the probability of achieving the fixed level capacity of an organisation. that are associated with rational approach to predict the future. Let us now discuss some principles of the technology forecasting. · Data: As many of the forecasting techniques depend on the past and are developed on the basis of past.com/doc/82954399/Om-0018 19/87 .2: The Components of Technological Forecasting Process Let us now briefly explain these six phases.1: The Forecasting Process As we can see in the figure 3. It is required to forecast for the future. · webcache.scribd. we will discuss the technology forecasting process. · Assumptions: We can consider the assumptions to set the real factors. there are some uncertainities associated with the forecast. According to our working definitions. We provide the _____________to the technology during its development. The first element is the input that has to be fed for the process. 3. Hint: Forecasting resources-the input. and feeds the information to the second element named as ¶forecasting techniques· which will process depending on the output that it has to contain. Now. we learnt about principles of technology forecasting. as given in the figure 3. All the forecasts mainly depend on the assumptions. we will discuss them briefly. · Probability: Usually. Figure 3. Predicting the _________ is an essential element of the planning process 2.3 Principles of technology forecasting Till now.2. · Use the longest time series available: The principle of using longest time series involves using the longest time that is available and this conflict with using more relevant data. Now. that there are three elements involved in the forecasting process. so we need proper data that represents the technological performances of the past.1. the forecast that is developed on the past fails and this has to be developed on the basis of the present markets.the input: We have already defined what to forecast and what is required from the forecast.com/search?q=cache:http://www. We have to use our minds and knowledge to form the relationship with forecast. Explain the principles of forecasting process. · Correct for biases in judgemental forecasts: The judgemental forecasts are strongly influenced by the biases. such as. we have studied about the technology forecasting and its characteristics. 3. ​ Activity 1: Consider that you are working in ABC Company as the team lead and you have to carry out the technology forecasting. Now let us learn about the inputs that have to be fed as the resources to get the needs satisfied. This involves the requirements that we have to fed. the main function of the technology is "[3]to lead the decision making process towards profitable solutions with minimum uncertainties. · Econometric forecasting models should be fairly simple: There should be simplicity in the forecasting models. · Forecasting resources .µ We can study technology forecasting in six phases. · Insight: This is helpful to start the qualitative element of the forecast. · Theory should precede analysis of data in developing econometric models: The research on [1]parole predictions concluded that the theory should precede the development of predictive models.

The four steps in defining the boundaries include defining of the key functions and futures. There are three human resources. There are different processes that are associated with the evaluation of the results of the forecast. Suggest the phases in which you will carry out the technology forecasting process. · The next step in the analysis and develop TF is the ¶analysis of limitation of resources·.5/15/13 Om 0018 Identification of needs: This is the first phase in technology forecasting process. The core team performs the activities like defining references. information and experience. In this section. we learnt about the technology forecasting along with the diagram. This helps mainly in all the projects. The major sources of information and data are identified in this phase. The core team co-ordinates the efforts of experts from team. (True/ False)? 6. · Define objectives: This is the third phase in technology forecasting. writing documents. defining criticalto-X features. we will analyse the need for technology forecasting. The roles of each human resource are carefully prepared and explained. · The next step in the analysis and develop TF involves. involves definition of other four steps that are clearly shown in the diagram. Our R&D uses the traditional method of evaluating the result of forecast.googleusercontent. We use normative forecast. The last step in this involves mapping of obtained contradictions as a network. This helps to find the resources that are less and causes problems on the map. · Perform analysis and develop Technology Forecast (TF): This is the fourth phase in the technology forecasting process. defining system in relation with the laws of system incompleteness and energy conductivity. We have seen the developing of TRF using the contradiction networking. social and environmental contexts and lastly the analysis of the drivers and barriers for the development of the system. components of system and opposite values of features. Prepare project phase involves the forecasting activities that are planned and _________ are allocated. in turn. clients. · After completing the definition of the boundaries. · Application of TF: The last phase in the technological forecast is the ¶application of TF·. defining the system in terms of technological. Hint: Application of TF. · Validate results: The fifth phase in the technology forecasting process is to ¶validate results·. · In this phase. build the time diagram·. · Prepare project: This is the second phase in technology forecasting process. We have to capitalise this set of problems. The different order of critical to X features is developed by considering the different contexts. The first step in this. the forecasting activities that are planned and resources are allocated. This. creating the structure of the forecast and filling it. is reformulating the technological barriers into the contradictions. and third step involves the revising and reformulating the collected contradictions to match with ​ the critical to X features. and role of technology forecasting in webcache. 3. we start with defining the boundaries of the technological system that has to be forecasted.4 Need and Role of Technology Forecasting In the previous section. a thorough analysis is done in order to make sure the relevance of technology forecasting. we get a shape of problem and also the contradiction network. Normative is used when the desirable future is not seen. Self Assessment Questions 4. The next step is. This also includes the four steps as shown in the figure 3. external participants and clients which help to develop an entire forecast.com/search?q=cache:http://www. The external participants help in providing data.2. This also helps in determining the time delays of the activities. This is the central part of the present research. In this phase. This includes both the normative and exploratory forecast. when the desirable future is seen and the normative forecast focus on finding the path. This uses the results that we get after the problem mapping.scribd. R&D helps to get the raw materials and solve the problem. 5. This includes the customer satisfaction with the results of TF. After identifying the expected outputs and the objectives of the future. This depends mainly on the needs and the formulated objectives. This phase ends with a decision of technology forecast. This phase once again goes through the objectives that are defined in the first and second phases. in a company.com/doc/82954399/Om-0018 20/87 . core tem and external participants. The client includes both customer and user of technology forecast. This phase decides the dimensions of the forecast. Application of TF depends mainly on the needs and formulated ________. The network consists of critical-to-X features. We can do peer review with the external experts and our colleagues in between working hours of the forecast to make the evaluation easy. from the present to the desirable state. Activity 2: Consider that you are the manager involved in the process of forecasting.

They use it to: · Identify and evaluate new technology-based products. All companies including large as well as small depend on technology forecasting for their survival. Technology forecasting helps us in finding out the opportunities at earlier stage. This helps us in projecting the future technical and market developments. · Formulate strategic models for future development. 8. and to evaluate the significance of these opportunities. (True/False)? 9.com/doc/82954399/Om-0018 21/87 . as the pressure on R&D planning is increasing. ​ Role of Forecasting in Planning Process As we have already analysed the need for technology forecasting. · The forecast furnishes warning signals. · Identify critical technologies and gaps. · Exploratory Methods: Exploratory methods are primarily concerned with the analysis of historical data. and not to force us to accept a particular decision. · Project market adoption rates for new technologies. The forecast serves as an input to the process of making plans and decisions. This method assumes that the experience and education of experts is sufficient to forecast the vectors of expansion and evaluation in a specific field. it is usually assumed that progress is evolutionary and that technological progress is not random. · The forecast provides a reference standard for the plan. and so on are plotted against time. Many different industries utilise technology forecasting for different purposes. Since. the survival of smaller companies depends on technological innovation by using appropriate methods of technology forecasting. which can alert the decision maker that it will not be possible to continue present activities. technology forecasting has become popular in the corporate world. Let us see these methods and techniques in the figure 3. The exploratory methods include methods like the intuitive forecasting. Large companies are using technology forecasting for centralising the efforts of R&D and planning for developments of new products. This also involves the uncovering of the fundamental differences in webcache. we are mainly focussing on the corporate strategies. Today. economic performance.scribd. it does not demand an impossible rate of progress. Let us briefly describe these roles. at the same time. · Define market needs for new technologies. exploratory.3: Different Technology Forecasting Methods We will now briefly describe the different forecasting methods and techniques depicted in the figure 3.com/search?q=cache:http://www. Note that the purpose of the forecast is to improve the quality of our decisions related to selection of an alternative from available alternatives. The plan can thus be compared with the forecast at any point in time. The intuitive method mainly involves two techniques that are the Delphi technique and the opinion polls technique. which are. We can classify the technology forecasting methods into two methods. we learnt about the role of forecasting in planning process. it is possible to generate characteristic curves or patterns from the data and from these patterns forecasts can be made with varying degrees of certainty. The technology forecasting is needed for the long-term planning process. · Make better technology investment decisions and projecting technology advances by providing information. if desired. growth curves and technology monitoring. it is not possible to go. · The forecast describes the alternatives which are open and can be chosen from. · The forecast serves as an input to the process of making plans and decisions. or. and normative forecasting methods. technical parameters. so that the plan can be made to take full advantage of such rates. Selected attributes such as functional performance.5 Forecasting Methods and Techniques In the previous section. to determine that it can still be fulfilled. The technology forecasting is helpful for the _________planning process.googleusercontent. · The forecast identifies limits beyond which. because of changes in the forecast.3. we will now discuss the role of forecasting in planning process. it has to be changed. conversely. · The forecast establishes feasible rates of progress. · Intuitive forecasting: This is the most widely used forecasting method. ​ Figure 3.5/15/13 Om 0018 planning process. Self Assessment Questions 7. Let us study these methods and techniques in brief. 3. extrapolation. Need for technology forecasting Today. Let us now study about the different forecasting methods and techniques. -Delphi technique: The Delphi technique involves the comparisons of expert projections of future technical developments. The forecast provides a _________standard for the plan. These methods include some techniques too. · The forecast indicates possibilities which might be achieved. 3. Forecasting plays many roles in planning.

simple and inexpensive. · Growth curves: This is another method included in exploratory methods. The normative methods include the three methods. The planning and forecasting provides us the tools webcache. · Technology monitoring: Technology monitoring is also an exploratory method. relevance trees. The normative approach includes the well organised attempts to allocate the money. we can derive the performance requirements for every relevant technology and we can use the same as normative forecasts.com/doc/82954399/Om-0018 22/87 . that might affect the technology forecast of the future. This includes the historical trends of a particular period of time and these trends are extended for the future. We will now discuss the normative methods of forecasting. · Mission flow diagrams: The mission flow diagram indicates the mapping of all the substitute routes or sequences for finishing a given task. ​ · Extrapolation technique: The extrapolation is the most usual method of forecasting in exploratory methods. -Gompertz curve: The gompertz curve uses the pearl curve to show the pattern in which the maturing technologies approach the development limits. 3. morphological analysis and mission flow diagrams. when there is some competitive situation between the two technologies with same growth rates. Your manager has asked you to list the different technology forecasting methods. Prepare a ​ list of such methods that you will follow. we will learn about the planning and forecasting. The normative forecasting provides the budgetary decision in the technological area.scribd. This is based on analysis and meaning of signals of change. We can define this method as a method that looks after the monitoring of the technologies. In this tree.com/search?q=cache:http://www. This technique involves the joint assessment of different ideas. Pearl curves are produced. namely. -Pearl curve: The pearl curve is an inhibitive model of technology growth. manpower and the other resources. This technique also identifies the unconventional ideas. Linear extrapolation gives the good results when this is extended approximately as the linear function and not too far behind the known data. Then. This is reliable. The extrapolation method involves the ____________ of the present methods for the future also. · Normative Methods: We have discussed about the exploratory methods and techniques. This involves the breaking down of main task into smaller tasks and treating all the individual tasks separately and finding the solutions for that. 11. · Morphological analysis: Morphological analysis involves systematic evaluation of all possible combination of solutions to the individual parts of a system. The growth curves are reformulated from a time basis to an observation basis. This includes the numerous time series of growth behaviour that are collected and categorised according to data characteristics. We can classify the techniques in extrapolation as the linear extrapolation and the exponential extrapolation. -Linear extrapolation: The linear extrapolation involves the creation of tangent line at the end of known data and then extending the line beyond that limit. -Exponential extrapolation: The exponential extrapolation is the nonlinear extrapolation. Growth curve assumes the good continuity between the past and future and they are incapable of predicting the breakthroughs. Hint: Morphological analysis.googleusercontent. Activity 3: Consider that you are working under the manager who is incharge of technology forecasting in the company. This technique also helps us in knowing the new technologies and evaluating many of the options of the new technologies. In this section. · Relevance tree: The relevance tree includes the hierarchical listing of the tasks and the alternatives. The extrapolation method involves the extension of the present methods for the future. Self Assessment Questions 10.5/15/13 Om 0018 opinion. on a rational basis. This is the preferred model for the technology adoptions that are driven by the technical superiority of the new technology. The relevance tree is helpful for all the planners to systematically assess all the interlinked technologies. we consider each branch as a goal. we have learnt in detail about the methods that are involved in the technology forecasting. (True/False)? 12. We need to determine the important steps on each route and also identify the problems and costs related with each route. -Opinion polls: The opinion poll technique involves the opinion of different experts. The pearl curve is an inhibitive model of technology. Exploratory techniques are primarily concerned with the analysis of _________ data. The growth curve includes the pearl curve and gompertz curve techniques.6 Planning and Forecasting In the previous section.

Forecasts for 10-20 years (a long time for the emergence of totally new technologies). Nowadays we have found that there is time lag between the lead time of the event and occurrence of that event. There are a large number of phenomena whose outcomes can now be predicted easily. In such situations. In business forecasting. the onset of hunger. whereas in technological forecasting it is on the behavioural issues. they were of little value in helping organisations to realize those possibilities or achieve greater success. but it is viewed with relative importance. Explain in brief about the six phases in technology webcache.9 Terminal Questions 1. planning can play an important role. Charles Babbage not only predicted the need for computers. whereas technological forecasting uses more qualitative techniques. as can be speed of a falling object. business forecasting uses more qualitative techniques. 2. preparation of project. Similarly. We also studied the technology forecasting methods including the exploratory and normative methods. but forecasting applies directly to the former. The evolution of science has increased the understanding of various aspects of the environment and consequent by the predictability of many events.5/15/13 Om 0018 that anticipate demands and respond quickly when the demand changes. We also discussed about the planning and forecasting process that helps to communicate through the entire supply chain. A lay person may question the validity and efficacy of a discipline aimed at predicting an uncertain future. It is not that business forecasting does not use qualitative techniques. while decision making applies directly to the latter.com/doc/82954399/Om-0018 23/87 . customers. 3. Planning is the link that integrates them. Self Assessment Questions 13.googleusercontent. rainy weather. in the mid 1800s. Long-term technological forecasts Medium-term technological forecasts Normative Reformulating Short-term technological forecasts 3. The _________ is the main reason for planning and forecasting. Describe some characteristics of technology forecasting. To draw a line between business forecasting and technological forecasting. defining objectives of technology forecasting. nuclear energy and travel to the moon. The sunrise can be predicted. but also proposed the design of computer. Jules Verne correctly predicted such developments on submarines. In fact. Forecasts for 2-10 years.8 Glossary Term Inhibitive Description It means holding back.7 Summary In this unit. This lead time is the main reason for planning and forecasting. there is no need for planning. 3. ​ We also noticed that technology forecasting helps to find the opportunities at the earlier stage of the project. and competitors) and controllable internal events (such as marketing or manufacturing decisions with the firm). 14. business forecasting uses more quantitative techniques.scribd. More than 100 years ago. thirst of fatigue. depending on the duration of forecasts. and many other events. In spite of the accuracy of these forecasts. which is the prediction of technology. the stress is on physical quantities. it should be recognized that substantial progress has been made in forecasting over the past several centuries. If the lead time is zero or very small. validating the results and applying technology forecasting. forecasting is needed to determine when an event will occur or a need arise. Planning and forecasting allows us to communicate through the entire ___________. Different projects use technology forecasting in different ways. The act of developing again. so that appropriate actions can be taken. We also analysed that the main aim of technology forecasting is to lead the decision making process towards profitable solutions with less number of uncertainties. (True/False)? 15. we discussed about the technology forecasting.com/search?q=cache:http://www. governments. Planning and forecasting allows us to communicate through the entire supply chain of a company. We also studied the six different phases of technology forecasting including identification of needs. If the lead time is long and the outcome of the final event is conditional on identifiable factors. To draw a line between business forecasting and technological forecasting. it also depends on the factors forecasted. Successful forecasting is not always directly useful to managers and others. However. Pertains to giving norms or rules. We should also know the distinction between uncontrollable external events (originating with the national economy. Forecasts for usually one year or less. analysing and developing technology forecasting. The success of a company depends on both the types of events.

5 Role of Forecasting in Planning Process. we will learn about the technology strategy. False 6. Objectives 7. This helped to satisfy the customer to the larger extent. but the ABC company didn¶t have any other that facility. Historical 13. We will also9 study about the innovation management and the components of competitive advantage. Resources 5. Long-term 8.com/doc/82954399/Om-0018 24/87 . Objectives: After studying this unit. you must be familiar with technology forecasting and the need for technology forecasting.7 Glossary 4. The point of sale forecasts requires more processing power. 5. This platform helped to gain more competitive advantage over the other products in the present market . What are the main advantages of introduction of the windows azure platform? Hint: Competitive advantage. The windows azure platform aims at providing the excellent foundation for the online product and service offerings. · Explain competitive advantage.3 Technology Forecasting Process. Supply chain Terminal Questions 1. which involves the strategies that have to be followed for managing the technology. 6. Reference ​ 10. We know that a webcache.10 Case Study 4. Results: The introduction of the windows azure has mainly helped to improve the processing power Questions: 1. What are the challenges faced by the ABC company? ​ Hint: Processing Power.11 Case Study This case study is about improving the forecasting abilities of an ABC software development company.1 Introduction Objectives 4.googleusercontent. Refer to section 3. There was also an increase in the information technology of the field. The competitive advantage helps to capture the competitive market. Monetary value 4.4 Competitive Advantage Components of competitive advantage Creating competitive advantage using value chain 4. This unit will enable us to analyse that technology strategies help us to maintain the competitive advantage. Challenges: The ABC company in the point of sale was not having more processing power. Give a short note on planning and forecasting. Refer section 3.2 Technology Strategy Let us first understand the concept ¶technology strategy·.4 Need for Technology Forecasting. 6. In order to facilitate more processing power. Explain the different forecasting methods.1 Introduction By now. Explain in brief about the need for technology forecasting. demand and call volume forecasts for more than 200 customers.2 Concept of Technology Forecasting. previous unit also familiarised us with the different forecasting methods and techniques and also with the relation of the planning and forecasting process. True 3. Refer section 3. Refer section 3. 3. 2. 3. 3.scribd. · State how to evaluate/assess the TM in an organisation. 3. The ABC Company forecasted that it requires the 10 times more capacity of the presently required storage. False 15.9 Answers 4. True 12. Write a short note on the role of technology forecasting in planning process. 2. 5. Extension 11. OM0018-Unit-04-Technology Strategy and Competitiveness Unit-04-Technology Strategy and Competitiveness Structure: 4.5 Technology Management Evaluation or Assessment 4.10 Answers Self Assessment Questions 1. We will analyse how a firm can create competitive advantage using value chain. Future 2. True 9. 4.7 Planning and Forecasting.3 Innovation Management 4.2 Technology Strategy Technology strategy and management Elements of an accessible technology strategy 4. you should be able to: · Explain the technology strategy and innovation management. The company has added more CPU servers because of the increasing demands and it also wanted to expand its business into new markets. · Mention the components of competitive advantage. There were more demands for the CPU. We will also see how to evaluate the technology management in an organisation. · Create competitive advantage using value chain. Refer section 3. Lead time 14. The company has introduced a windows azure platform that is able to provide the unlimited processing and storage capacity. ​ In this unit. Apart from this. 4.com/search?q=cache:http://www. Refer section 3. the cost effective solution was developed. The ABC company delivers the sales.6 Forecasting Methods and Techniques. 4.5/15/13 Om 0018 forecasting process.6 Summary 4.8 Terminal Questions 4.

Yet. It is important for us to clarify the budget decisions and see that the funds are allocated appropriately. We can see that there are three aspects of relationship between the management and technology strategy. 4. not only products can be improved. Figure 4. let us learn about the relationship between the technology strategy and management. We have to restate the accessible technology vision.5/15/13 Om 0018 strategy is a long term view that describes a high level framework. We can define technology strategy as a planning document that explains how technology should be utilised as part of an organisation·s overall business strategy.1. but all the organisations will not gain the positive competitive advantage from the technologies. developing superior products and pursuing learning curve and cost leadership. and some companies deduct these expenses from the individual technology budgets of each department. and technology is only one factor among them.googleusercontent. An accessible technology strategy includes some elements. consistent focus on a core technological competency. but also manufacturing process can be improved in future generations of technology.2. The decision making process involves many problems in sustaining and building competitive advantage.1.1 Technology strategy and management After studying the meaning of technology strategy. · The management checks whether there is any chance of discerning the technology strategy. The central idea here is that a business can be developed around a long-term. ​ The role of management in building competitive advantage for an organisation. · Vision statement: This involves the creation of a unique statement that defines the role of accessible technology in the organisation and how it supports the organisation·s overall vision of accessible technology objectives. depends on the technology strategy.com/doc/82954399/Om-0018 25/87 . and others do not. This explains which expenses should become a part of overall technology purchase. The managers play an important role in the decision making process of the technology. to lead in both innovating new-technology products and improving manufacturing quality and lowering cost of these products. The objectives use the vision of the accessible technology. These are: · The view of management of the impact of general management on the business and business strategy.2.com/search?q=cache:http://www. This is mainly helpful in integrating the technology into the business plan and business. In particular. What it means. · The management checks whether there is any chance of discerning particular orientation towards new markets. some firms effectively use technology as a competitive advantage.scribd. 4.1: Elements of an Accessible Strategy We will now have a brief discussion on the elements depicted in figure 4. technology intensity introduces the layer of complexity. and describes the funding resources. if the organisational vision already provides the foundation for creating accessible objectives. · Objectives: The objectives define the success metrics and clarify the details of vision statement. it has been management·s ability to foster corporate core technical competencies. It also makes sure that the accessible technology strategy is aligned with the business needs. One important factor in the successful use of technology is the role of general management in technology strategy. In the case of competitive markets. Now. With this. There are many factors in competition. This high level framework describes where the organisation needs to be in the future years. Let us have a look at these elements in figure 4. · Ownership: The ownership defines the responsibilities of the team members webcache. Most of the organisations use technologies in product and services· generation. The document is usually created by an organisation·s technology manager and should be designed to support the organisation·s overall business plan. and which should come under a separate budget. is to have a core corporate technical competency. ​ · Expenses and budget: This involves the clarification that is done in regard to the expenses. Some organisations include the assistive technology product costs in the main centralised accommodation budget.2 Elements of an accessible technology strategy Till now we have seen how the technology strategy and the management are related. The accessible technology strategy defines how the technology fits within the organisation. It is better to understand the intended strategy of general management. we will study about the elements of an accessible strategy.

Two postulates are easily accommodated by conventional strategic management: · A firm·s competitiveness is defined largely by specific competitive advantages. List the elements that you will see in accessing the technology strategy. This involves the use of creative ideas of an organisation·s employees that brings new innovations to the market place. Innovation management is the __________ processes that help the organisations in developing new and improved products. Managing technology plays an important role in the competitive success of an organisation in the free market economy. Any platform should encourage for the learning activity as a core feature. Managing technology plays an important role webcache.com/search?q=cache:http://www. Successes and failures are also obvious at the firm level.com/doc/82954399/Om-0018 26/87 . This section will familiarise us with ¶innovation management·. and a management system controlling the innovation process. 4. The innovation involves all the managers from different departments. In a simplified view. Activity 1: Consider that you are the project manager in the ABC Company and you want to access the technology strategy. Hint: Vision Statement. Self Assessment Questions 1. an electronic suggestion scheme. The best practices and tools are applied consistently and appropriately across the organisation. services and business processes. The successful innovation culture consists of all the aspects of a business. The management of the innovation system need to be given to the ____________________ to control the overall system of innovation. ​ Innovation is managed through some sort of platform or application. at three levels. technologydriven impacts are obvious. we will now study about the competitive advantage. There are many examples for technology driven systems that include the solid state devices that had replaced the vacuum tubes and aircrafts that had replaced the railroads. Vision statement involves the creation of a _________ statement that defines the role of accessible technology in the organisation. Technology strategy is a _____________that explains how technology should be utilised as part of an organisation·s overall business strategy. and these aspects have to be managed effectively and efficiently like any other core business. In order to create culture of continuous innovation. The management team also see that some staff members in the organisation are rewarded for the innovative ideas they put in. · A primary purpose of strategic management is creation of competitive advantages. The ownership also plans the execution of the project. At industry levels. Innovation can be built into business. Innovation is often small.googleusercontent. (True/False)? 6. Technology·s ability to redefine competitiveness at all levels has long been recognised by philosophers.4 Competitive Advantage After innovation management. The objectives define the success metrics and clarify the details of vision statement. 5. 2. Installing the innovation culture in any of the company has leaders and teams with ability and commitment.scribd. This needs to be integrated at the strategic and operational levels. innovation should not be only limited to the big ground breaking ideas. scholars. In business. We can define ¶competitive advantage· as the condition in which a company operates in a more efficient manner and higher quality when compared to its competitors in the market. creative workshops and product based companies. incremental changes to products.5/15/13 Om 0018 in the project. There are two types of innovation tools that are. The activities of the innovation need to be driven by the strategy and current business imperatives. quickly and efficiently. and businesspeople from Adam Smith to John Kenneth Galbraith to Michael Porter to Bill Gates. (True/False)? 3. The management of the innovation system need to be given to the senior management to control the overall system of innovation. services and processes. Self Assessment Questions 4.3 Innovation Management Previous section familiarised us with technology strategy. There should be one committee to see whether the execution of the plan is moving correctly or not. We can define ¶innovation management· as the systematic processes that help the organisations in developing new and improved products. the organisation requires leadership and commitment from the senior management team. 4. This needs to be planned and managed as a core business covering all parts of a business. The successful innovation culture consists of only few aspects of a business. The senior management need to encourage the innovative ideas from the staff. The three levels are the annual business planning process. we can measure the competitiveness of a company by the economic rents derived from certain capabilities (bundles of combined know-how and resources) which it possesses. quarterly innovation and day-to-day activities.

The customers purchase the products or services for the second time. conformance to specifications. without regard necessarily to either reliability or performance. two different ways to achieve high reliability. There are. · Quality: Quality is another term that is widely used so much that hawse have to ask what is meant specifically by a customer who claims to have purchased a particular product or service over competing alternatives because of its higher quality. · Customer Service: Customer service enhances the utility of a product or the social relationships that complement its sale and use. rework. Having made this assertion. trade-ins. It is not.5/15/13 Om 0018 in making decisions and policies that contribute to the firm·s competitive advantage. The range of performance dimensions is much wider for final consumers. if they find that the products are more reliable. they will know about the time of the lower price and they can gain the advantage.scribd. under normal conditions of use. The customers look into some factors of the product when they are taking the products or services. the costs from waste. For industrial customers operating in a just-in-time mode.com/doc/82954399/Om-0018 27/87 . property or characteristic of a product that are valued by the customer. Improving reliability also covers costs such as the investments needed to inspect or build it in. training of employees. Performance has multiple dimensions depending on the specific product or service and the customer or market segment. people will often prefer natural leather or wood materials to plastics or other synthetic materials because of their higher quality.e. promised level. such as. leasing. i. ​ · Availability: Availability is a time-related competitive advantage.. purity and uniformity might be relevant performance dimensions. however. All other things being equal.googleusercontent. and service-maintenance contracts. if possible. Firms with new products which have no competing alternatives available until competitors can copy or catch up to or leap-frog over them. For example. In this framework. There are costs that result from poor reliability. · Reliability: Reliability is the ability of a product or service to perform at a specified. availability translates into dependable delivery at precisely the scheduled time. ​ We can recognise the competitive advantage of the organisation by seeing at the way they deliver the products. over a reasonable useful life. etc. These factors also affect the competitive advantage of the organisation.) that enable the customer to purchase the webcache. Let us briefly describe these factors. quality will refer to one of two different meanings that are given below: ð Higher reliability at a given level of performance. warranties. Traditional forms of customer service include applications engineering. scrap. normally the price is important. One is by inspecting the product and by identifying and removing defects from the product-services stream before they reach the customer. have a special availability advantage. The customer compares the performance of the product with its competitors before making an order for the purchase. if it does not meet the customer expectations. In the latter case. it should produce significant savings in all the cost categories resulting from poor reliability. In the case of process industry customers. dimensional tolerances are a performance dimension that is often cited along with surface finish (corrosion resistance-durability). expected to perform at levels higher than what was promised. · Performance: Performance level is referred to a feature. we must recognise that there is an aesthetic dimension to quality as well. Most of the times. The other is.com/search?q=cache:http://www. by improving production processes and getting them under control. One must be careful to point out that from the customer·s perspective. and product liability. and are with fewer defects as compared to the products used for the first time. and so on. ð Higher level of performance. Financing services (time payments. For industrial customers of fabricated parts. weight. the customers does not know the previous price of the product in the market. · Price: A lower price is perhaps the most obvious reason why customers choose one product or service over competing alternatives. A product or service is said to be defective. however. There is a possibility for the lower price due to international competition or internal or government subsidies. when they go for long-term arrangements with the suppliers. loss of customer goodwill. If we talk about industrial customers. many customers would prefer the competitive alternative that is available soonest instantaneously. getting production processes under control may require process simplification and redesign or the implementation of an effective statistical process control (SPC) program. but if done well.

or achieve one of the other competitive advantages that customer·s value. 4. better customer service. · Awareness: Awareness is a factor in all other competitive advantages. time and financial commitments. ​ · Identify your targets: It involves the identification of the customers. product driven to the pro-active. · Better and faster: It is not a good marketing plan if we cannot maintain the competitive advantage.com/search?q=cache:http://www. in order to monitor the progress and deal with unexpected changes.4. sooner availability. The company has to buy the needs and the efforts must be shifted from the reactive. market driven orientation. even if one product or service has a lower price.com/doc/82954399/Om-0018 28/87 . they may choose it because of the comfort level that knowledge brings them compared to the relative uncertainty of the alternatives.scribd. · The marketing budget: This component of competitive advantage involves the budgeting plan. for example. We have to ensure that our marketing budget webcache. · Stability: Stability of long-term relationships probably applies only in very specific situations where-again-that stability provides a comfort level to customers which they prefer over the relative uncertainty of short-term or temporary supplier-customer relationships. We know that development of the strategic marketing plan is very difficult in the present competitive market. so that we get more enthusiasm and new ideas and increased results. you need to create an action calendar. On the other hand.5/15/13 Om 0018 product are also included. aggressive programming and innovative point of sale material. The operational roadmap becomes the valuable tool as it concentrates on achieving the specified goals and targeted buyers. ð Lastly. In the present competitive market of today the marketing opportunities are more time sensitive. we will now study about its components. which are: ð We have to estimate the time frame for each objective over the next year·s calendar. a possible reason in its own right why customers choose one product or service over competing alternatives. as well as. packaging and stylish quality. they cannot influence customers· choices. ð It is important to involve the skilled members of your staff in preparing the action map. although even industrial customers may be turned off by a product·s unattractive appearance. Attractiveness obviously encompasses style and has an aesthetic component that transcends the annual style changes of. in the case of strategic materials or-recently-petroleum. The winning competitor must have either the lowest price or the highest reliability. Customers of today expect high reliability and low prices. There are some components that are associated with the competitive advantage. If the knowledge is positive and is repeatedly reinforced through experience and marketing or advertising activities. The market driven companies also develop the marketing plans with some objectives and goals. ð It is important to check the frame regularly. higher performance. greater reliability. · The marketing driven companies focus on consumer awareness by promotion like advertising. and we should know the season·s conflicts that would arise in the future and affect the staff. or more attractive designs than competing alternatives but customers are not aware of these facts. The market driven companies listen to the customers and they focus at production decisions like quantities. If customers simply know more about one product or service than competing alternatives. the fashion apparel industry.googleusercontent. · Action calendar: After finalising the objectives and strategies. · Market driven versus marketing driven: market driven companies are the companies that aim at fulfilling the customer needs and they play a major role in the production planning.1 Components of competitive advantage As we are studying about competitive advantage. although what is perceived as being attractive may have some cultural basis. We prepare this plan by considering the previous year·s expenditures. Good customer service can also make up for a lot of customer ill will caused by product defects. This stability may also apply to long-term social relationships between customers and suppliers in cases where customers value the relationship itself apart from the product or service the supplier is providing. the stability of long-term supply contracts may be preferred by a customer over temporary supply arrangements that offer lower prices or other advantages. · Attractiveness: Attractiveness applies principally to consumer products. There are some guidelines in creating the action calendar. you have to adjust with the action calendar that is prepared. and it depends on the cash flow requirements and the net profit. brand-name loyalty may be created in customers who continue to choose it apart from any objective evaluation of the actual facts. For example.

legal and quality management. · Marketing and sales: Marketing sales include the activities like getting buyers to purchase the product. finance. This includes giving the finished product to customer. This both webcache. According to [1]Michael E Porter.for analyzing the sources of competitive advantage. development and compensation of employees. persuade customers to buy the outputs (marketing and sales). and general management. if the performance of one activity affects the other activity. accounting. Primary activities constitute the processes by which firms receive inputs (inbound logistics). We can further divide the primary activities into five activities. We can use Porter·s value chain. warehousing and inventory control of input materials that has to be supplied for the process. These activities can be viewed as "overhead" but many of the organisations used them to develop the competitive advantage.com/search?q=cache:http://www. the value chain is "a systematic way of examining all the activities a firm performs and how they interact«. This includes the activities such as finance. advertising.2 Creating competitive advantage using value chain After studying about the components of competitive advantage. · Outbound logistics: These are the activities that satisfy the customer. dealing with personnel ​ (human resource management). and other activities which support the entire organisation rather than individual activities (firm infrastructure). · Human resource management: These activities are related to human resources. There need to be proper coordination and optimisation of the linked activities. · Support activities: These activities. developing new and improved ways of doing activities (technology development). pricing. and support customers in using the outputs (service). · Procurement: This is the activity that provides the raw materials and other inputs that are required for the value creating activities. ​ Till now we have learnt about the primary activities. · Operations: The operations are the value creating activities that has the ability to transform the inputs into the final product. The two activities are primary activities and the support activities. Figure 4. repair services and so on. · Firm infrastructure: This includes the activities that are related to the infrastructure of an organisation. This includes the activities like warehousing. The value system The firm·s value chain links to the value chains of upstream suppliers and downstream buyers. A linkage will be present.2. to organize all the activities of a firm. technology development activities that are used as a support for the value chain activities. Now let us now learn about the support activities in the value chain activities. putting sign boards and so on. 4.com/doc/82954399/Om-0018 29/87 .scribd. This includes the activities like recruiting. promotion.2. · Inbound logistics: It includes the activities like receiving. After the identification of the activities of the value chain. are the activities which support many of the processes. Value chain analysis After defining the activities differently in the chain. We can classify the support activities into four activities.googleusercontent. · Technology management: These are the activities that are related to the research and development activities.2: Value Chain Activities As per figure 4. These activities play an important role in developing the competitive advantage. You can see these value chain activities in figure 4. · Primary activities: The goal of primary activities is to create the value that is more than the cost of providing the product or service and generates the profit margin. the value chain analysis takes place. Now let us study in brief about the primary activities. provide those outputs to customers (outbound logistics). The better understandings of the linkages helps in make or buy decisions. The value chain plays an important role in making the outsourcing decisions. · Service: Service activities are the activities that maintain and increase the products value including customer support. primarily there are two activities associated with the value chain activities. as the name indicates.5/15/13 Om 0018 adequately supports the marketing objectives that we want. order fulfilment and so on. Support activities are processes which provide support to the primary activities and to each other in terms of purchasing inputs (procurement)." Michael porter has identified many of the activities that are common to all firms. into categories of primary and support activities. let us now study about creating the competitive advantage using the value chain. convert those inputs into outputs (operations).4. we have to define the linkages between these activities.

5 Technology Management Evaluation or Assessment After a detailed discussion on competitive advantage. We can achieve this by comparing the technological capabilities with its market competitors.com/doc/82954399/Om-0018 30/87 . The operational roadmap is the valuable tool as it concentrates on achieving the specified goals and targeted buyers. This involves some variables. ð Expenses of technical innovation sustained in other technical functions. The development of the competitive advantage of the organisation depends on the value chain system. Prepare a list of the tasks that you will follow to evaluate the technology management. ð Allocation of funds. ð To what extent the competence will be critical in future competition. A firm·s competitiveness is defined largely by specific _____________. This helps in evaluating the importance of different technologies in the competitive environment. There are some main tasks associated with the technology assessment. · Identification of the technologies involved: The identification of the technologies involved in technology assessment includes the identification of the technological knowledge and skills. Activity 2: ​ Suppose that you are working in the company as a team lead and your company is planning to gain the competitive advantage. Activity 3: Suppose you are manager in the company. expenses and budget and also the ownership. ð Assessing the technologies that have impact on the future: The second criterion is to include the technologies that may have impact in the future. technologies used in design phase of the product.com/search?q=cache:http://www. Your manager has asked you to list the activities involved in the value chain process. 11. We have to consider some factors while doing analysis. The support technologies are used to perform certain activity in the enterprise. These criteria are: ð The detailed analysis of the organisation·s technological structure: This includes the detailed analysis of the organisation·s technology structure. ð Human resources.6 Summary In this unit. we will now discuss about the technology management evaluation or assessment. s The identification of the support technologies that are used to perform certain activity in the enterprise. which include the vision statement. We have to follow some criteria to identify the technologies. as given below: ð Research and development funding. objectives.5/15/13 Om 0018 activities result in the larger stream activities known as the value system. The technological knowledge and skills influence the position of the organisation in the present as well as the future market. Technology forecasting helps us to identify the emerging technologies. s The identification of the production process technologies that are used. · Analysis of the competitive impact of technologies: This involves the analysis of the competitive importance of each technology in the market. we have made an effort to understand the technology strategy and competitiveness. Let us briefly describe these tasks. The competitive impact analysis provides an overall assessment of the _____________________ of each technology. We can define technology assessment as the process of assessment that aims at collecting information about the present and future state of technology development.googleusercontent. We discussed that the technology strategy explains how the technology has to be utilised as a part of total business strategy. ð Equipment and tools. The competitive impact analysis provides an overall assessment of the competitive importance of each technology. This also helps in finding the strength of a firm in each technology.scribd. 4. Self Assessment Questions 10. We analysed that accessible technology strategy has some elements. Hint: Technology capability assessment. This include: s The identification of the product technologies such as the technologies in the product. webcache. 8. Self Assessment Questions 7. Outbound logistics are the activities that satisfy the _____________. We also analysed the relation between technology strategy and management. Prepare the list for the same. We also had a brief discussion on the innovation management. These factors are: ð To what extent the technologies are relevant to sustaining organisation·s competitive factors. 4. ð Patents and other intellectual properties. (True/False)? 9. Hint: Support activities. We can call these future technologies as the emerging technologies. (True/False)? 12. This also helps in identifying the technologies that are used in the value chain activities. ​ · Technological capability assessment: The technology capability analysis provides the capability of an organisation in each technology. Technology assessment is the process of _________________ that aims at collecting the information about the present and future state of technology development.

· In overall the certified employees helped to gain the competitive advantage. True 9. The company was mainly focussing on the technical advantage with its unique organisation structure and the business development approach. True 3.com/search?q=cache:http://www.2 Technology Adoption 5.2 Technology Strategy. Write a short note on technology strategy. Briefly explain the technology management evaluation.scribd. Systematic 5.3 Technology Diffusion Importance of technology diffusion Perspectives of innovation diffusion webcache. Refer section 4.3 Innovation Management. 5. To gain the competitive advantage with Microsoft corporation this company employee has to learn how the technologies work and also the new skills and technologies. OM0018-Unit-05-Technology Adoption. There was more amount of finance that was spent on training the employees.com/doc/82954399/Om-0018 31/87 . 5. Questions: 1.7 Glossary Term Innovation management Framework Aesthetic Statistical process control (SPC) program Description It is the management of the new inventions and discoveries. It is the branch of philosophy that deals with the nature of beauty. False 6. Results: The company came with big success in gaining the competitive advantage. the identification of technology. · The company was able to capture the new market with the new technologies. we analysed that the innovation is managed through some sort of platform or application. Refer section 4. 2. The application of methods to find the variability of the processes. What are the components of competitive advantage? 4. Planning document 2. and the senior management has to take care of innovation process. True 12. It has rewarded the certified individuals with the high salary hikes.8 Terminal Questions 1. There are some benefits as the number of certified employee¶s increased in the company. ​ Finally. We also discussed about the creation of the competitive advantage by value chain process. We have seen the competitive advantage that plays an important role in today·s competitive market. The benefits are: · Improved customer satisfaction since the certified team was able to provide the quality product. Refer section 4. How did the ABC Company gain the competitive advantage? Hint: Training the employees about the new technologies. Customer 10. 4. The value chain process included the primary and support activities. 4. Assessment ​ 11. Then the company now it¶s able to capture the competitive market. that is. Many of the employees got certified with Microsoft those who had very good basic technical knowledge. we have seen the assessment of the technology management that included three tasks. Unique 4. 4. Competitive importance Terminal Questions 1.googleusercontent. Explain the activities of competitive advantage. 3. We also understood that we can build innovation at three levels. What are the benefits that the ABC Company got after the increase of the certified employees in the ABC Company? Hint: Captured the new market.5 Technology Management Evaluation. Refer section 4.5/15/13 Om 0018 While discussing. 4. Senior management 7. This also recruited the new employees those who have the passion to learn new technologies.4 Competitive Advantage. The founders of the ABC company had a vision to build the competitive advantage of the organisation around delivering technologies for the new world.1 Introduction Objectives 5. Diffusion and Absorption Structure: 5. Diffusion and Absorption Unit-05-Technology Adoption. 4. 2. analysis of competitive impact of the technologies and also the technological capability assessment. 3.4 Competitive Advantage. Refer section 4. It refers to the rigid structure containing something.10 Case Study Case Study on Gaining Competitive Advantage This case study is about increasing the competitive advantage of the ABC company in the software market.9 Answers Self Assessment Questions 1. Explain in brief about the innovation management. Competitive advantages 8. ​ 2.

googleusercontent. the prevailing systems have to modified and the existing work processes. So. you should be able to: · Explain the technology adoption and technology adoption plan.12 Case Study 5. · Technology is based on imported raw materials. which makes it more difficult. · Explain the technology diffusion.com/doc/82954399/Om-0018 32/87 . 5. technology cannot spread. In the previous unit. in an ongoing enterprise. We studied about the innovation management. We will also learn about the technology adoption plan that is needed for the implementation of the technology plan. We know that the technology adoption. Whereas. From the last few years.4 Technology Absorption Role of technology absorption Benefits of technology absorption Constraints in technology absorption 5.10 Terminal Questions 5. we can define ¶adoption of technology· or ¶technology adoption· as the successful implementation of technology. we cannot get any of the technologies and without the diffusion. · Insufficient use of technology caused by the local labour. · Discuss the issues involved in management of technology absorption and government initiatives. raw materials. we will study about them. We will discuss about the technology absorption and constraints in the technology absorption.scribd. · Describe Indian experience in technology absorption efforts. We also discussed about the components of competitive advantage and analysed how to create competitive advantage using value chain. human resources. We will also study about technology diffusion. due to the explosive growth of new technologies worldwide. you must be familiar with the concepts of technology strategy and competitiveness.8 Summary 5. Other general reasons that he identified were: · High cost of transfer. in this unit. We will also understand the issues related to technology absorption and the experience of India in technology absorption.11 Answers 5. Adoption is relatively easy in a new enterprise as compared to an ​ ongoing firm. Simon (1978) opined that many technologies that were transferred from developed to developing countries were not successfully adapted. As we know that planning is webcache. Now. He studied the causes for inappropriateness of various technologies that were transferred from developed to developing countries.5/15/13 Om 0018 process Activities necessary for diffusion process 5. This unit will enable us to understand that without the use of technology adoption. business and consumer marketplaces have been exposed to the widespread use of the personal computer.5 Technology Package and Technological Dependence 5. · Environmental pollution problems. it is easy to adapt to the acquired technology. and even marketing. working environment and culture may have to be changed. we discussed about the technology strategy and elements of accessible technology strategy. the Internet.com/search?q=cache:http://www. diffusion and absorption help in acquiring the new technologies. Without proper management no technology can be absorbed so at last we will study about issues related to the management of technology absorption and government initiatives for technology absorption. and · Impact due to energy inputs. Technology adoption plan Till now we have learnt about the concept of technology adoption.7 Issues Involved in the Management of Technology Absorption and Government Initiatives Issues involved in the management of technology absorption Government initiatives for technology absorption ​ 5. and · Excessive usage of capital goods and imported equipment. ever present wireless communications and broadband communications. · Insufficient skills of local labour. Finally the technology absorption helps us to absorb the technology. because of the inappropriateness of those technologies for developing countries. and how to evaluate the technology management. · Not scaled down to local market. · Impact due to plant location.1 Introduction By now. As there is no existing system in a new enterprise. · Explain the technology absorption.2 Technology Adoption As we are familiar with the term adoption that is nothing but taking full control of the thing when you have adopted that thing. and identified the following as specific causes: · Missing preferences of local markets and consumers. Objectives: After studying this unit.9 Glossary 5. let us learn about the technology adoption plan. · Summarise the technology package and technological dependence.6 Indian Experience in Technology Absorption Efforts 5. The concept of technology adoption has attracted much more attention in recent times. In the same way. Adoption of technology requires gearing up of all the resources such as internal and external infrastructure. and deriving the full potential of the technology.

Diffusion enlarges the set of available technologies and increases the productivity of the country.1. In general. ​ · Develop a change plan which embraces timing. and individuals involved in the change. · Access perceived priority of change: We have to prioritise the activities of change process. In case of diffusion. The barriers to technology diffusion help us to determine the magnitude of technology diffusion. Also. · Specify the extent of changes.3. The process of adopting the new technology by the customers who came to know about the technology from other customers is called as the technology diffusion. as well as changes in knowledge or attitudes. · Assess capacity and resources to change: We even have to see whether we have sufficient resources to undergo the change process. The complex process of introducing a new technology necessitates a practical plan which will focuses on employees· needs and deals with issues of concern to them. before adopting the technology we need to plan for the process of adopting. are capable to introduce the technology and undergo change process. 5. the target group signifies the customers. Planning for the implementation of the new technology should be thorough and should encompass a relatively long time horizon to assure the stability of the new system.1: Steps in Technology Adoption Plan Let us now briefly discuss the steps involved in the technology adoption plan.2 Perspectives of innovation diffusion process After the importance of technology diffusion.1. 2. This process involves the identification of the customers. Adoption is relatively easy in a ________________as compared to an ongoing firm.googleusercontent. Hint: Identify the target adoption. Technology diffusion plays a major role in most of the countries today.com/search?q=cache:http://www. Before adopting the technology we need to plan for the process of adopting. than the sector with the tradable goods. so let us now let familiarised ourselves with the concept of technology diffusion. Specific planning should include: · Identify the division(s). when they are very comfortable with the old values and beliefs. we can say that diffusion is the process of closing the gap between what people do not know and what they can effectively put to use. The free technology diffusion generates more gains compared to that of the free merchandise trade. We can increase the merchandise trade by removing the diffusion barriers since the countries achieve higher productivity by taking the technology from the diffusion process. ​ Figure 5. The plan can be implemented very well if we know the view of the customers. List out the steps that you would carry out for the technology adoption. · Identify the target group: For any project. Such an approach results in better returns for the investments made in R&D and technology development systems. productivity is determined by the domestic technology in the production country and the diffusion technology from other countries. Thus. · Assess actual ability to change: We have to check whether ¶we· as the organisation.3 Technology Diffusion Previous section familiarised us with technology adoption. we know that diffusion is the process of spreading. The technology diffusion plays more important role in the sector of goods that are not tradable. and responsibilities of individuals. Activity 1: Suppose that you are working in the company as a project manager and you are given in charge of the technology adoption. 5. which involves the identification and analysis of the resistances to change. · Locate and analyse the resistance to change: The introduction of the new technology in the organisation cause the change process in the organisation. A well-managed technology diffusion system enables an organisation to plan its technology development projects in a more meaningful manner as well as transfer the technologies more successfully.scribd. communication methods. These barriers determine the volumes of diffusion. It is the human tendency to resist the change. we will now webcache. now let us study about the importance of technology diffusion. ​ 5.com/doc/82954399/Om-0018 33/87 . Adoption of technology can be defined as the successful implementation of technology and deriving the full ________ of the technology.1 Importance of technology diffusion After defining the technology diffusion.3. Key steps in this process of technology adoption plan include some of the steps shown in figure 5. as per the figure 5. Diffusion involves special types of communication methods or system to help diffuse changes in practice.5/15/13 Om 0018 needed before implementing any process. (True/False)? 3. They locate and analyse the resistance to change. Self Assessment Questions 1. involvement of individuals. section(s).

To model a diffusion process. Marketing next assesses the target market segment to identify the potential adopters that should be influenced first. The webcache. Diffusion will occur only if the necessary facilities exist. In return. especially market research personnel. · Full Scale Diffusion: This is the last activity of a comprehensive diffusion process. weather. organising trials. · Models perspective: The models perspective looks at the development of models that management can use to predict the behaviour of potential users of a technological innovation and. · Commercialisation: After initial development of the technology concept. This perspective focuses on how the various channels and modes of communication (media. The application of basic research is a more organised effort than individual action. commercialisation receives the major emphasis. and bureaucratic processes. · Industrialisation: This activity of diffusion process focuses on developing a practical and profitable application of the technology . · Traditional perspective: Technological innovation and diffusion have traditionally been viewed as separate processes. · Individual action: The diffusion process begins with this activity. The marketing department develops a description of the attributes of the new technology.It links customer demand with technical opportunities and out of this emerges a design concept for evaluation. · Adoption perspective: The adoption perspective is most often used to describe the diffusion process. terrain.com/search?q=cache:http://www. selects channels for its marketing message. · Comprehensive perspective: The comprehensive perspective uses all the perspectives discussed so far in developing a diffusion strategy. mechanisms for transfer of technology and expanding and managing the technology life cycle. regulatory requirements.3 Activities necessary for diffusion process In this section. We can say that diffusion is a multi-faceted activity. engineers and marketing personnel.scribd. Linking technical opportunities with market demand requires coordination and cooperation among applied scientists. the inventor proceeds (sometimes without even realising it) through a series of steps that result in practical use of an innovative idea. interpersonal etc. we will have a brief discussion on the activities necessary for diffusion process. and the development stage of the area in which the technology is to be used. new geographic regions. This perspective is particularly important for diffusion of technologies in developing countries. This view treats diffusion as the marketing efforts required to expand the acceptance of the technology beyond the markets initially targeted. develop strategies for diffusing an innovation. 5. Self Assessment Questions 4. communication. The firm next develops the corporate capabilities for managing the diffusion. availability of energy. It includes a search for a wider range of potential markets. new industries. setting pricing policies and selecting and segmenting the market as a whole. · Infrastructure perspective: The infrastructure of the region in which the technological innovation is targeted is an important factor in diffusing the innovation.5/15/13 Om 0018 study about different perspectives of innovation diffusion process. new market segments that have not been explored. an analyst works with a few variables to fit a curve that describes the spread of innovation over time. etc. It views the diffusion process as part of a total innovation process. Let us have a look at its main activities. and new ways to couple the innovation with other innovations. and begins development of a promotional programme. During the individual action activity. Poor infrastructure development can constrain some innovations. In this activity. · Communication: Communication activities are the next major activities.) can be used to influence a diverse group of potential customers to adopt a technological innovation. diffusion involves linking the basic ​ scientist·s work to the applied scientist·s work and the world outside the laboratory through the comprehensive diffusion perspective. · Creation of favourable conditions: The leadership in the organisation must establish the expectation that everyone will take some responsibility for generating innovations and make some contribution to their diffusion. · Regulatory /Societal perspective: The regulatory / societal perspective looks at the effects of government policies.com/doc/82954399/Om-0018 34/87 .3. Commercialisation includes finding solutions to all the problems of defining the technology. the people in the organisation should expect that they will be rewarded for their efforts. · Applying basic research: This activity represents the translation of the findings of people who have done the basic research (people) into applications. The boundary between the industrialisation and commercialization activity is hard to define exactly.googleusercontent. Infrastructure aspects that affect diffusion include transportation. consequently.

(True/False)? 6. We know that the term ¶absorption· is nothing but the process of absorbing something. so let us now have a discussion on ¶technology absorption·. including India. · Technically competent groups of scientists and engineers trained in technology absorption get matured and strengthened.4. In fact. · Effective utilisation is made of available indigenous research expertise and facilities to achieve the desired results. It is clear that the project absorption occurs after the project implementation. Let us have a look at the technology absorption in the project implementation process in figure 5.scribd. The free technology diffusion generates less gain compared to that of the free merchandise trade. · Know-why and technology upgradation capabilities are built-up.2. ​ We have to acquire technology from sources within or outside the country. with a view to reducing-imports and enhancing exports. and to achieve technological self-reliance. technology absorption plays an important role in project implementation.5/15/13 Om 0018 ___________department develops a description of the attributes of the new technology. as evidenced by Government and industry experiences so far.1 Role of technology absorption Till now. India.com/doc/82954399/Om-0018 35/87 . Taiwan and Singapore have absorbed technologies predominantly from exports. it needs to be absorbed and updated in accordance with the local requirements. Taiwan. · The base for technological self-reliance is enhanced. These benefits are: · Repeated collaborations for the same product/ process are avoided. Philippines and including our own country) to import technology as a package. Most of these countries have developed indigenous R&D capabilities of varying order to absorb and upgrade the imported technologies. · Exports are increased. Thailand.4 Technology Absorption As we have already discussed about technology diffusion in the previous section. While some countries.2 Benefits of technology absorption After the role of technology absorption. Indonesia.com/search?q=cache:http://www. without really understanding the "know-why" of the technology. and one of the ways to acquire technology is.1 also depicts the tasks that are associated with the each phase of the project implementation process. webcache. social aspects including environmental and pollution aspects. we will now study about the benefits that we get from technology absorption exercises.2: Role of Technology Absorption in Project Implementation As per the figure 5.googleusercontent. know-why exercises to understand the "blackbox" of technology have been emphasised at the firm level without which exports are difficult. In a country like South Korea. Activity 2: Consider that you are working in the company as a team lead and you want to carry out technology diffusion process for the well spread of the technology.1. by the process of technology absorption. The diffusion of technology to the late majority and laggards are more direct than that of the_________ and early adopters. we have seen the meaning and concept of technology absorption. Pakistan. The concept of technology absorption differs from country to country.4. raw materials and components. Hint: Individual action 5. ranging from R&D services to the larger sales. employment. · Savings can be affected in foreign exchange due to indigenisation /use of indigenous alternatives. We gain the benefits of technology diffusion. Figure 5. maintenance requirements. 5. levels and types of production techniques. costs. in any project. quality standards. 5. · Acquisition of further technologies becomes selective. Once a technology is imported from another country. We will now study about the important role of technology absorption in project implementation. such as South Korea. In India. there are only a few countries which have attempted to provide incentives to industry to undertake technology absorption exercises. ​ Figure 5. Foreign technology may have been developed keeping in view different parameters relating to scale of production. Sri Lanka. ​ · Ability is developed to unpackage the technology. so on It is common in many developing countries (such as South Korea. List out activities that you will carry out for the same. Many developing countries. Technology diffusion helps in sustaining the growth of the company through technical strength. absorption is generally considered as the capacity to reproduce or manufacture products according to the "know-how" supplied by the licensor of technology. Bangladesh. India has done so predominantly for local markets. India is one of them. 5. and even from firm to firm.

organic chemicals. Level of technology is also reflected by the use of less productive and sometimes second-hand machinery from abroad.4. man-made fibres. or even to improve the products/processes. international levels of performance and operating parameters.3 Constraints in technology absorption There are some constraints associated with the technology absorption. elimination of hazards which would necessitate use of sophisticated equipment. research organisations in undertaking absorption exercises. · Involving users. · Efforts for unpackaging and indigenisation of tailor-made equipment in the acquired technology. We will now discuss about these constraints of the technology absorption. Some of the major constraints in absorption of technology are: · Choice and use of imported technology by most Indian industries have not been at international levels. We know that improved productivity and quality as well as reduced costs lead to higher efficiency in industrial operations. · Use of national and international research facilities and expertise. Expanding the existing units and establishing new units with larger capacities tend to minimize this gap. modernisation /R&D costs would be heavy in order to jump to the next generation of technology. which are important in achieving higher productivity. This is an important factor while establishing scale sensitive. especially if in larger quantity of critical production equipment is employed.com/search?q=cache:http://www. industry has not given adequate attention to absorption of technology. 5. Presently these are being met by a number of units of suboptimal sizes as compared to international levels. electronic components. In the wake of the liberalised nature of New Industrial Policy and other policy measures in Trade and Finance. and/or accompanied by sizeable domestic demands and satisfactory absorption of technology. Industry would not be in a position either to invest similar R&D resources in comparison with international units. These factors invariably require use of contemporary technologies needing larger capital investments. commensurate R&D efforts will simultaneously be needed to absorb and upgrade the acquired technology in order to become internationally competitive. The thrust as underlined below need to be ensured for effective implementation. While acquisition of technology is now easier. There are instances where existing items made with marginal process or product improvements have continued to be supplied even after extensions of collaborations. In labour intensive industries. In scale sensitive industries. use of versatile machines and quality control measures and industrial engineering techniques. In capital intensive industries involving sophisticated operations to manufacture products which are in continuous demand or which command large markets. · Minimum economic scale of production. the firms have usually approached the collaborators once again for renewal of earlier agreements or for new collaborations for improved or new products and processes. lesser is the level of technology. these can be achieved by higher automation and by organising the operations on larger scale. it has become imperative for industry to accelerate its R&D efforts to meet the emerging competitive environment.com/doc/82954399/Om-0018 36/87 . These factors are: · Optimum utilisation of capital equipment to bring about maximum production leading to better capital-output ratio. · The demand of products whose production is influenced by scale factors of latest technologies is generally not very large in our country. · In general.googleusercontent. We will now have a quick overview of factors. high technology industries. lower overheads. · Targeting and achieving.scribd. suppliers of components and materials.5/15/13 Om 0018 have liberalised their industrial policies in the recent past. material and energy conservation/ recovery. particularly in industries where scale factor is important in optimising the operations. safety and pollution control measures necessitate higher capital investments in sophisticated equipment based on latest technologies. · Adequate investments for quality control. In the absence of a webcache. · Speedy indigenisation of raw materials and components. This constraint increases the gaps to be bridged through technology absorption. so on lower the initial installed capacity. · Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning. In hazardous industries. lower the scale of operation. In mass consumption industries such as petrochemicals. · Enhancing exports of products based on absorbed and upgraded technology. In such cases. absorption and upgradation of imported technology. · Continuous training of research personnel in India and abroad. quality and reduced costs. lesser is the technological level. these can be achieved from optimum ​ man/machine utilisation. In such cases.

delayed market response. Let us now move on to the topic that is the Technology package and technological dependence. · Supplies of hardware and proprietary equipment and their designs. process or production know-how. delay in import of equipment/components. List the benefits of absorption of technology. · Lack of attention to absorption of technology in the absence of any compulsion to be internationally competitive. Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning. · Quality control. In this section. technical services regarding maintenance/ safety / continued improvements/international experiences.6 Indian Experience in Technology Absorption Efforts In the previous section. 8. · Minimal involvement of R&D personnel in assessment of technology. · Process know-how designs and basic engineering.com/search?q=cache:http://www. The technology absorption plays an important role in the project _____________. or where industrial users are dictated by equipment/products based on imported technologies. Activity 3: Suppose that you are working in a company and you have to see the benefits of the technology absorption that you will get and then make the decision whether to carry out the technology adoption or not. ​ Till now we have studied about the technology absorption and the constraints in technology absorption. it could be only for using foreign brand names. (True/False)? 9. inadequate training/ expertise. · Licensing for the use of patents/ trade marks. · The units should have their own technology policy for its acquisition. on webcache. further negotiations and transfer.googleusercontent. we will study about the Indian experience in technology absorption. Indian industry has been expressing its views on various matters connected with absorption through press. systems engineering. incomplete documents. software and related services. It could be for a grass-root project or for further technological requirements of an existing plant. tailor-made equipment and/or their designs.com/doc/82954399/Om-0018 37/87 . project overruns in turnkey jobs. detailed engineering. Other reported constraints impeding technology absorption include delay in clearances. An in-depth assessment of absorption efforts of over 50 major industrial units in different sectors has brought out some of the constraints of Indian industry. we studied about the technology absorption. A foreign technology package may consist of all or many of the aspects. Let us have a look at the summary of their views and suggestions. We will now have a brief discussion on these suggested measures. We know that the technology is imported from other countries in the form of hardware. till the users· requirements change or substantial imports of a new product take place.5 Technology Package and Technological Dependence In the previous section. The demand of products whose production is influenced by scale factors of latest technologies is generally not ______________ in our country. so on Technological dependence on foreign know-how can be in any of the following areas such as: · Product designs/ standards/ specifications. we will learn about the technology package and technological dependence. ​ 5. lower initial investments to play safe. such as product design.scribd. In this section. 5. assured market and inadequate allocation of resources for R&D has resulted in insufficient attention for effective absorption and improvement of imported technology. pollution control and continued assistance in improvements of technology used in the existing manufacturing facilities. even in areas that are agreeable to scale sensitive sectors/use of latest technologies. Hint: Exports are increased. production technology. as given below: · Lower scales of production compared to international levels. Suggested measures Some measures are given for the Indian industries for improving the technology absorption. lower volumes than planned. application information. Self Assessment Questions 7. · User·s preference to imported technology-based products and collaborator·s guarantees. · Know-how for assembly of products. we have studied about the technology package and technological dependence. and transfer in implementation ¶Of technology. seminars and representations to the Government from time to time. · Continued access to collaborators on nominal payments. the inherent tendency to supply the same product hits continued. In some instances. absorption and adaptation.5/15/13 Om 0018 competitive domestic market. or for modernisation or enhancement of a product capability. difficulties in translation. safety. and bottlenecks without adequate assistance by collaborator.

· The development of new products is very expensive and time consuming. Self Assessment Questions 10. quality and finish may often suffer. Also. We know that the Indian ​ industry needs to focus its efforts in filling up of the gaps in technology absorption and upgradation of some areas. The Indian industry.com/doc/82954399/Om-0018 38/87 .googleusercontent. design organisations and consulting firms. we will learn about the issues involved in the management of technology absorption and the measures taken by the government for technology absorption. · Analysis and improvement of designs and development of tailor-made production equipment. · The travel grants and incentives need to be considered for participation in international seminars/ symposia as well as for training abroad to keep abreast with the latest development in their fields. · Incentives and support should be given for prototype development and testing facilities. Let us have a look at these areas given below. manufacturers. · The technology absorption projects need to be organised or established on two ways. process design and engineering for higher volumes and exports.5/15/13 Om 0018 long-term as well as short-term basis. Also. 11. So. The development of new products is very expensive and time consuming. · The R&D personnel from in-house/national laboratories should be involved intimately in the transfer of technology from the conceptual stage itself. · In case of fast changing technologies such as electronics. 5. We can explain them as the issues involved in management of technology absorption. support for using the services of experts/ consultants on short -term basis may be considered in specific cases.com/search?q=cache:http://www.scribd.e. i. product designs for higher ranges/ new applications. · Import of technology and know-how is limited to product design in most of the cases and manufacturing processes are directly related to the volumes of production abroad. international R&D collaborations can be encouraged. particularly in areas of high rate of obsolescence. · Basic investigations and projects in research. design and engineering. has achieved a good capability in implementing and adapting foreign technology as seen from the various experiences in different sectors. on the whole. national research laboratories or institutions. ​ · There needs to be a closer interaction amongst in-house R&D units. · The particular Information about the acquisition of foreign technologies should be widely disseminated with a view of making R&D personnel aware of the needs of the industry. pilot studies for adaptation. · Accelerated indigenisation and improvement of raw materials/ components/ sub-systems through speedy R&D efforts with vendors/ ancillaries. foreign collaboration agreements should be of shorter durations. national R&D laboratories. · An information base for modern available technologies on global basis should be set up. Small/ medium industries are not able to do any significant technology absorption exercises since most of them do not have their own R&D facilities in a meaningful way. It enables them to formulate the programmes accordingly. · Demonstration of improved/higher range of products/ equipment of the users. In this section. · The tax benefits and fiscal incentives may be considered for investments made in absorption and upgradation of processes/ products.1 Issues involved in the management of technology absorption The Indian industry has to concentrate on some issues in technology absorption. academic institutions. exports. It is generally not economical for the industry because of the low volume of manufacturing and fragmentation of capacity. encompassing process/ product design analysis/ optimisation/ improvement. ð Collaborative or cooperative basis. software and ______________. R&D expenditure should be generally 5 to 10% of the _____________ of the company.7. Technology is imported from other countries in the form of hardware. we have studied about India·s experience in technology absorption efforts. ¶club· projects involving users. Consequently.7 Issues Involved in the Management of Technology Absorption and Government Initiatives In the previous section. absorption and up-gradation of imported technologies. let us now learn about the issues involved in the management of technology and the initiatives taken by the government for the technology absorption. They are uneconomic for the Indian firm and need be scaled down to meet the local demands. The two ways are explained as follows: ð Individual unit basis. At present there is a need for stronger linkages in research and webcache. (True/False)? 12. · R&D expenditure should be generally 5 to 10% of the annual turnover of the company. 5.

in general. other initiatives such as workshops.2 cr. the Government had stipulated that industries using technologies costing more than a payment of Rs. There is also a stipulation with respect to this in the terms and conditions of foreign collaborations. The support is for accelerated indigenisation /import substitution/ know-why exercises/ product improvement and optimisation.been commissioned. therefore. is in a good position to encompass larger areas. industrial machinery ​ and chemicals. government webcache. The projects are overviewed by Evaluation Committees. An amount of over Rs. users. After studying about the absorption and adaptation scheme it will be incomplete if we do not study about the evaluation of technologies so now let us move on to the topic technology evaluation studies. TAAS aims at stimulating and accelerating the efforts of Indian industry in technology absorption and up gradation. technology absorption/ profile studies of different states and technology evaluation studies of critical sectors have been undertaken. are widely discussed in industry. · Skill utilisation in technology absorption projects by hiring of research experts and NRI specialists as well as training in national laboratories/institutions/ international organisations for identified areas of absorption. 5. Under the scheme. efficiency and technology upgradation. · ¶Cub· or co-operative projects of interest to the sector. Indian industry has quite often gone in for further collaborations to avail the technologies for higher ranges/ capabilities or improved process/ production techniques. whenever they come. Now let us learn in detail about the Technology Absorption and Adaptation Scheme (TAAS). Government has also directed industry to submit annual returns for technology implementation and absorption. to demonstrate the beneficial effects of organised and target-oriented absorption of technology projects. Adaptation and Improvement (TAAI) plans. While formal extensions of collaborations have not been numerous in comparison to the number of new collaborations.20 cr. in priority areas such as energy saving. involving a group of manufacturers. national institutions/laboratories and Government in dealing with issues of technology absorption. TAAS has brought out the need for enhancing the activities to catalyse and assist the industry in technology absorption. Technology evaluation studies In order to assess the performance of technology in the major sectors of Indian industry. so on Over 50 sectors have been identified and in about 30 sectors. it has not been very effective. forgings. the Government has initiated studies in various important areas such as fertilisers. The Technology Absorption and Adaptation Scheme (TAAS) The Technology Absorption and Adaptation Scheme (TAAS) initiated by the Government (DSIR) as a pilot scheme during the 7thplan. cement. and national institutions. About 30 public and state sector units have so far been partially supported for undertaking identified RDDE (Research. steel. All these have encouraged the participation of industry. The scheme. The newer grass-root plants have used later technologies. has been marshalled through a partial support in various major sectors such as electrical /electronics.com/search?q=cache:http://www. Design.5/15/13 Om 0018 development work between manufacturers and users and between institutions/ national laboratories and industry.googleusercontent.7. we Our Indian government over the years has directed the industry to take necessary steps to set up R&D units for up-gradation and absorption of imported technology. foundry. metallurgy. studies have . should bring out comprehensive Technology Absorption.com/doc/82954399/Om-0018 39/87 . and to assess the gaps in technology and to suggest possible programmes for R&D and technology upgradation. Industry. · Industry-sponsored projects with national laboratories/institutions. in identified areas of technology gaps. Development and Engineering) projects to absorb and upgrade specific elements in imported technology. However. TAAS activities have resulted in stimulating and speeding up the R&D work in absorption of technology. but they are also likely to become out dated as the years pass by unless necessary efforts to catch up with technical changes are made. stays at a particular level for a number of years and then considers a jump in product range or volume of production through further technology induction. accelerated indigenisation. · Projects of small and medium enterprises. The reports.scribd.2 Government initiatives for technology absorption After studying about the issues involved in the technology absorption management. mini steel. TAAS is expected to extend partial support to the following: · Core sector users in absorption and upgradation of products/ equipment from ancillaries /equipment manufacturers/vendors whose technologies are based on foreign collaborations. Pursuant to the Technology Policy Statement. aluminium.

Self Assessment Questions 13. the employees were supposed to learn the new technologies and improve the skills. Related services 11. The jobs those are ready for the purpose. The act of working with one another. This unit also familiarised us with the technology absorption. 2. and circulated.com/doc/82954399/Om-0018 40/87 . The agents play an important role in the adoption of the technologies. which includes the process of adopting the new products in the market place. Refer section 5. This is the dislike for new technology. We also described about the technology package and technological dependence. we made an effort to learn about the technology adoption. ¶Technology demonstration· is also envisaged in some important identified areas in order to speedily introduce new technologies. The company decided to go for technology diffusion. Refer section 5. The Indian industry focuses on filling the gaps in the technology absorption. 3.5/15/13 Om 0018 departments and other concerned organisations. Marketing 5. which play an important role in the technology acquisition when we acquire technology from outside and within the company also.googleusercontent. ​ 14.12 Case Study Case Study On Technology Adoption and Diffusion This case study deals with the technology diffusion through the agent technologies in the ABC company. We also saw some constraints in the Indian industry. We also analysed the issues involved in management of technology absorption. Write a short note technology adoption. Refer section 5.9 Glossary Term Barriers Collaborations Obsolescence Technophobia Turnkey jobs Description The structure that separates anything. Explain the suggested measures in Indian experience in the technology absorption efforts. 5. 5. What is the importance of technology diffusion? 3. Generation Terminal Questions 1. Potential 2. 5. ​ 5.11 Answers Self Assessment Questions 1. What are the government initiatives for technology absorption? 5.10 Terminal Questions 1. Refer section 5. Refer section 5. barriers are present for the adoption of the agent technologies.6 Indian Experience in the Technology Absorption Efforts. We also studied about the technology diffusion. Our Indian government has directed the industry to take necessary steps to set up R&D units for up-gradation and absorption of _______ technology. 5. The barriers indicate the volumes of diffusion. False 15.scribd. The process of being out of state or no longer useful. Implementation 8. 2. New enterprise 4. (True/False)? 15. The Technology Absorption and Adaptation Scheme (TAAS) initiated by the Government (DSIR) as a pilot scheme during the 8thplan. since there was a need for spreading the information. The reports bring out the need for accelerated effort in technology __________ and absorption. We learnt that technology adoption is the process of successful implementation of technology and taking full control of the technology. The reports bring out the need for accelerated effort in technology generation and absorption. Innovators 7. We have seen that TAAS aims at simulating and accelerating the efforts of Indian industry in the technology upgradation and the absorption. Imported 14. 5. We also discussed about the technology adoption plan.3 Technology Diffusion.8 Summary In this unit. True 9. Very large 10. True 3.4 Technology Absorption. as well as the reduced costs are leading to high efficiency in industrial operations. For this. It also focussed on adopting the new software technologies. False 6. What are the benefits of technology absorption? ​ 4.2 Technology Adoption.7 Issues Involved in Management of Technology Absorption and the Government Initiatives. We noticed that improved productivity and quality. and the measures for improving the absorption of technology in the Indian industry. but there was lot of resistance to change since the employees were very comfortable with the old skills and were not interested in learning the new webcache. Annual turnover 13. 4. True 12. Though there are many agent systems. There is a need of supporting tools and methodologies for the software technologies before the adoption of the process that takes place.com/search?q=cache:http://www. diffusion and absorption. These studies bring out technology gaps and needed thrusts for technology absorption.

2. its mode of selection and implementation. 7. So. You must also be familiar with automation technology and automated decisions. in this unit we are going to deal with the study of aspects and issues in managing a technology.com/search?q=cache:http://www. a substantial share of the market from an existing older technology. functions and their dependent occupations.7 Technology and Socio-Economic Planning 7. because of the good leadership led by the general manager of the company. 7. What are the challenges faced by ABC company? Hint: The resistance to change from employees. that is. the employees resists to the same. and technology transformation.5/15/13 Om 0018 skills. which are: · Nature and rate of technology change: In this group. we try to find the common threats for the numerous changes occurring around the globe. but also the company aimed at adopting the new technologies because there were new tools and operating systems involved in the adoption process. Results The company adopted the new technologies that were very costly and useful. what are the reasons for the occurrence of technology changes. we take up the effects.2.9 Summary 7.1 Characteristics of technological change Let us now have a look at some characteristics of technology change. · Determinants of technology change: In this group. Questions 1. technology life cycle. Objectives: After studying this unit. you should be able to: · Explain the need and importance of technological change. This unit will also enable to you to understand the technological changes.8 Diffusion and Growth of Technologies Information technology revolution Macro effects of technological change 7. We can define· technology change· as the process of adding up the knowledge to the existing knowledge to accomplish things to do in a better way and perform new things together. development options and strategies.googleusercontent. technological transformation.13 Case Study 7. · Impact of technology change: In this group.2 Classification of technological change ​ webcache.6 Technological Development Options and Strategies 7. and sometimes even obsolescence of tasks.10 Glossary 7.2 Technological Change We have seen that technology includes knowledge ² knowledge that is embodied and implicit. technology life cycle. alteration. · Justify the need and role of technology policies and policy instruments. either direct or indirect of technology change.11 Terminal Questions 7. The technologies were successfully adopted and came into existence. ​ OM0018-Unit-07-Aspects and Issues in Technology Management Unit-07-Aspects and Issues in Technology Management Structure: 7. · Analyse technology development options and strategies available to an organisation.4 Technology Transformation 7. 7.12 Answers 7. We also try to find out the rate or speed at which technology changes are taking place. planning. Even the new technologies were very costly. We can group these characteristics into three categories. The changes to technology have occurred through substitution and diffusion. technology policy and policy instruments. He showed the leadership by adopting the technologies that are very costly since he analysed the technologies with his team before adopting the new technologies. · The new technologies were costly and needed lot of analysis before adoption of technology.scribd.com/doc/82954399/Om-0018 41/87 .3 Technology Life Cycle 7. The simplest form of technological substitution occurs when a new technology captures over a period of time. we try to figure out what causes these changes. He managed to convince the people in the company for the change process. · Analyse diffusion and growth of technologies. Challenges · Whenever there were changes due to the introduction of new technology. addition. 2.1 Introduction By now you must be familiar with the emerging new technologies. · Describe the importance of linkage between technology issues and socio-economic planning process. The firm-specific knowledge is the sum totality of all the knowledge within a firm. How did the general manger overcome the challenges? Hint: Convinced the employees for the change process.2 Technological Change Characteristics of technological change Classification of technological change Impact of technological change 7. ​ The result of technology growth has its base from inventions and innovations. We can characterise the transition from the old to the new technology by the creation.5 Technology Policies and Policy Instruments 7.1 Introduction Objectives 7.

form of knowledge and physical contexts. bank and coffee shops with an aim to reduce the need for human efforts in the production of goods and services In general automation is the key word used everywhere. One way to classify the changes is to base it on the extent of its influence across the firm and across the sectors.Process standardisation: Process standardisation has been going on to improve the manufacturing. incremental changes in the consumer products . pink colour Lux and so on.Product mix enlargement: It is derived from two different business strategies whose interaction will produce a common trend as a whole. webcache.com/doc/82954399/Om-0018 42/87 . With cold forming the material wastage is reduced to 20 per cent. delustering agent precision engineering components and tools. the material wastage is around 80 per cent.com/search?q=cache:http://www. Some of the technology changes are better noticed than others. When parts are made by cutting. we can classify these changes as: · Incremental changes: We can define incremental change as the change that takes place very often. continuing with relentless zeal and ultimately end up as significant developments. It also refers to the number of items carried by the company along the product line. valves. defect elimination and super miniaturisation which we will be discussing shortly. one needs auxiliary support like fibre finishes. Thus. raw materials.System building: System building is concerned with providing support in the field of design. aircraft. They can be in the form of ​ . · Altering changes: These changes call for a fixing of the system and the structure.Lux. engineering and installation. . They enlarged their product mix by developing a 24 needle dot matrix printermodel 32/324. Their benefits tend to accumulate and could result in strategic advantages for the firm. · Entrenching Changes: These are also incremental changes. Most important are the savings in material cost.Automation: Automation is used in office. Automation is no longer planned as a replacement-for costly labour.5/15/13 Om 0018 After characteristics. to run a synthetic fibre plants. anti-oxidants. Compared to hot forming traditionally used. International Lux. but changes in process equipment that result in an increase in the capacity utilisation from say 65 per cent to 70 per cent hardly find mention even in the firm·s own reports.googleusercontent. seals. in hot forming technology. Use of cheaper material and lesser quantity of material for the same product is the trend in all the industries. Miniaturization has cut the internal volume of an average cellular telephone by a factor of 1000 in little more than a decade. The computer that not long ago occupied a full room now fits in a hand. and so on. From the 60s onwards. . essentially to make it more precise in terms of "line definition". telephone. Entrenching changes do not call for organisational changes. For example. factory. Several thousands of pick and place robots are in use in Japan. For example. . Larsen & Toubro (L&T) manufactures dot matrix printers at Mysore. consequential use of all major innovations such as locomotive. firms like TISCO increased their capacities by balancing and modernisation. design.Modernisation/Expansion: It is the ongoing evolution of operations and IT infrastructure which will help to switch over to a new technology and the adoption of change with a less impact on day to day operations. For example. anti-static agents. These changes can even take place in the technology. heavy duty 9 needle dot matrix printer-model 32NS. Textile sector added to its capacity by replacing old spindles with high productivity machines. motor car. . changes that result in new products like Walkman get media headlines.Miniaturisation: It refers to the formation of small scales for mechanical and electronic products and services. They reshape the entire configuration through the introduction of markedly different equipment. we will now discuss about the classification of technology change. factory. we can consider the High Tensile Fastener industry. They modify the existing methods but proceed in the same direction.Dematerialisation: it is the concept used to reduce the quality of materials required to serve up the economic functions. and spinnerettys. For instance. The Entrenching changes can take the form of: . For example. where cold forming was adopted as a new technology. cold forming offers several advantages. white colour Lux. telegraph. New Lux. Lower cost material like plain carbon and low alloy steel can be used in place of heat treated alloy steels. For example. Today·s VLSI has over a million elements. metering pumps. 300 CPS 9 needle dot matrix printer with superior paper handling features model ¶Paragon· and so on. electronic technologies have concentrated on super miniaturisation or compressing greater performance into smaller volumes. For example. They have changed the factory layout itself .scribd. radio and now automation in offices.

The question that arises at this point of time is . ​ 2. Activity 1: Suppose a new web technology has come into the market. Selfhealing Digital Signal Processing (DSP) devices were developed at General Electricals Research and Development (R&D) Centre by Dr.1: Impact of Technological Changes We will now briefly discuss about these impacts. A technology change takes place in the firm level as well as the sector level and the economy as a whole. premises and assumptions normally relied upon by the industry. It is affecting us. technology change can also change the relative importance of functions. all of which taken together form the ¶Technology Life Cycle·. · Increase in productivity: Whenever any technology changes. Let us have a look at some of the direct changes.3 Technology Life Cycle In the previous section. we discussed about technology change along with its characteristics and impact. · Introduction of new products: Technological change results in the introduction of new products to the market or the organisation · Organisational changes: Technological change results in change in the organisations also. Though it was commonly agreed that technology changes improve or reduce competitive strengths. These foster mothers gave birth to 11 identical calves.3 Impact of technological change We will now study about the impact of technological change. a mother of 11 in one year. functions and their dependent occupations. The _____ call for a fixing of the system and the structure.2. Technology change is the process of adding up the _____ to the existing knowledge to accomplish things to do in a better way and perform new things together. Accelerated technological changes have impacted.scribd. The scientists at ET centre at Sabarmati Ashram Gaushala in Gujarat inseminated a Holstein crossbred cow with semen from an elite bull and using hormonal injection super-ovulated the cow to produce as many as 15 embryos. and the structure of organisation and society. These embryos were flushed out and implanted into the womb of foster mothers.googleusercontent. Microprocessors and memories become unit components in such systems and system functioning is decided by the software changes rather than ______ 4. depending on their occurrence. Some of the indirect effects will reflect on: · The competitive performance occurring between the companies. Innovation stage: This webcache. The requirement of enhanced productivity is the key force behind any technology making our lives easier. The self healing circuits detect and correct irregular faults caused by loose connection of marginal components. as given in the figure 7. especially incremental changes. as well as organisations. which emerged as a change in the old web technology. temporary faults caused by electromagnetic interference and permanent faults such as grounded signals. it results in increasing the productivity of the company using that technology. not only to turn into out of date organisational strategies. addition. alteration and sometimes even obsolescence of tasks.com/search?q=cache:http://www.Genetic engineering: It is also called as genetic modification where in the direct manipulation of organisms genetic material takes place which usually do not occur in the normal conditions. The transition from the old to the new technology is characterised by the creation. These are used in mission critical application such as Satellite. Microprocessors and memories become unit components in such systems and system functioning is decided by the software changes rather than circuit modifications. The life span of various technologies can be conveniently identified as consisting of four distinct stages. .5/15/13 Om 0018 Intelligence incorporated: The power of softwarisation or building in intelligence and systems is increasingly felt. · The way to attract the experts. by making redundant or radically altering old functions and generating new ones.1. we can increase the output and modern machines improve labour productivity. Prepare a list of impacts of this new technology. ​ Figure 7. Direct impacts Direct impacts of the technological changes take place very often. Indirect impacts Another type of impact of technological change is ¶Indirect impact·. Abhijit Chatterjee.how are the firms affected by technology change? Technology changes can have different levels of impact.com/doc/82954399/Om-0018 43/87 . Let us have a quick overview of these four stages of technology life cycle. 7. Direct impacts of technology change result in direct changes. we will learn about the life cycle of technology. there is difficulty in relating them to specific changes. but they also invalidated past. · The company image that incurred the changes. (True/False)? 3. For example. 7. Self Assessment Questions 1. By removing obstructs. In this section.

material or process resulting from R&D activities. We can also call it as ¶indigenous technology· since it is employed by the native or local inhabitants of the country. ​ We can define a technology policy as a comprehensive statement created by the highest policy making body namely the cabinet/parliament in the Government to direct. The life span of various technologies can be conveniently identified as consisting of distinct stages. mining and farming. that we are familiar with technology life cycle. The formulation of a technology policy begins with the establishment of a vision for the country and the corresponding scenario of the mix of goods and services to be produced and provided. The policy. The time taken in the substitution stage depends on the market dynamics. when one expects to build it in the native environment. starting from the natural resources. This plan is described. material or process with potential for immediate utilisation. The time taken in the substitution stage depends on the market dynamics. But supply and demand side factors jointly influence the rate of diffusion. 7. mining and farming. Syndication stage: This stage represents the demonstration (pilot production) and commercialisation of a new technology. by a desired mix of the goods to be produced and services to be provided in the country in the coming one or two decades. 8. we will now study about the technology policy and technology instruments. such as. achievement. which includes all kinds of mechanical conversions and fabrications.scribd. Self Assessment Questions 5. in carefully selected areas of production.com/doc/82954399/Om-0018 44/87 . ​ Development of a technology in every sector becomes difficult or undesirable. the time taken in the innovation stage as well as in the subsequent stages varies widely.com/search?q=cache:http://www. due to replacement by another technology. taking into account the dynamics of change. Many innovations are put on hold in R&D laboratories. 6. · Stage two can be called ¶refining stage·. Substitution stage: This last stage represents the decline in the use and eventual extension of a technology. all of which taken together form the ______. among other things. to transmit to the markets. · The last stage is ¶packaging stage·. Many technical and non-technical factors influence the rate of substitution. Only a very small percentage of these are commercialised. There are considerable variations in the technology content added to the product at each of these five stages. we will learn about the technology transformation. we come across five different stages which are: · The first stage is called the ¶collective stage·. (True/False)? 7.5/15/13 Om 0018 stage represents the birth of a new product. material or process resulting from R&D activities. product. The technology policy declaration typically contains several commitments on behalf of the Government and some categorical assurances. The technological transformation in the production of goods starts from nature and finally goes to the market. In R&D laboratories.googleusercontent. where things are assembled and packaged. Depending on the resource allocation and also the change element. encourage and control the generation. Commercialisation of research outcomes depends on technical as well as non-technical. which includes some refining operations such as purification. development and deployment of technology and science in solving national problems or achieving national objectives set forth in the development vision or perspective plan. commits the authority to ensure: · Establishment of institutional facilities for relevant knowledge webcache. The first stage is called the ______ and includes such operations as extracting. Diffusion stage: This represents the market penetration of a new technology through acceptance of the innovation. there is a vertical integration with respect to all stages of technological transformation necessary to put a product on the market. The ______ stage represents the birth of a new product. by potential users of the technology.4 Technology Transformation Now.5 Technology Policies and Policy Instruments After studying about the technology transformation. During this transformation. new ideas are generated depending on gaining needs and knowledge factors. extracting. preservation and metallurgy. it may be highly desirable that. We must note that the policy framework has to be broad and flexible enough. 7. · ¶Processing· can be considered as a third stage where chemical and electrical conversions take place. Technology policy formulation has to logically follow the establishment of a development visualisation or perspective plan. which includes collective operations such as. among others. mostly economic factors. · The fourth stage is the ¶manufacturing stage·. Nevertheless.

2: Integration of technological considerations in National Development Planning The integration of technological aspects should extend significantly beyond simple selection of imported technologies to the webcache. even though primarily referring to policies.com/search?q=cache:http://www.googleusercontent. · An optimal combination of indigenous and imported technology. · Provision of services for productive exploitation of research results and generation of indigenous technology. The technology policy declaration typically contains several _____________ on behalf of the Government and some categorical assurances. including institution building. · Policy instruments to regulate technology import. Even with regard to imported technology. The Successful integration of technological considerations into the socio-economic planning process is very essential. and prepare a list of policy instruments. A country·s technology development strategy is determined by identifying the technological needs with potential technological developments in the world and a thorough assessment of available and emerging technologies. in order to achieve technology-oriented development in priority sectors. there are adequate pressures for technological considerations within the various sectors of their economies. The requirement for _____ comes from an explicit commitment to a national goal and the acceptance of technology as an important strategic variable in the development process. A requirement for efficient utilisation of R&D resources is the development of technological infrastructure within the country. (True/False)? ​ Activity 2: Search on internet.2. 7. · Policy instruments to promote the performance of S&T activities in the enterprises. The direct ones refer explicitly to technology functions and activities. and skill development for stepwise incorporation of imported technology. Policy instruments We can define ¶policy instruments· as the relations between the expressed purpose and the results that are required in practice.5/15/13 Om 0018 broadcasting. ​ Figure 7. There are both direct and indirect policy instruments. we will discuss about the socio-economic planning and technology. But in developing countries. Self Assessment Questions 9. · Policy instruments to support the performance of S&T activities. Policy instruments are the relations between the expressed purpose and the results that are required in practice. The indirect ones. · Expansion of support facilities. any attempt to develop indigenous technologies encounters enormous difficulties. such as.scribd. (True/False)? 7. Then. it is essential for a country to be able to select. Now. A country·s technology development strategy is determined by identifying the technological needs with potential technological developments in the world and a thorough assessment of available and emerging technologies.7 Technology and Socio-Economic Planning In the previous section. In developed countries. in figure 7. (True/False)? 10. 13. functions or activities other than technology. the country determines a strategy to import technologies which can be produced locally. integration of technological considerations with economic planning at the highest level is required.com/doc/82954399/Om-0018 45/87 . · Policy instruments to define the pattern of demand for technology. we will now discuss about the technology development options and strategies. we learnt about technology development options and strategies. have an important indirect effect on Science and Technology (S&T) activities. In this section. All of these efforts justify greater priority and allocation of resources to R&D. information and documentation services. consistency and quality control. there is a universal realisation that unless a concerted attempt is made to build local technological capabilities for absorbing imported technologies. adapt and improve it for local consumption. Technology policy formulation has to logically follow the establishment of a development visualisation or perspective plan. Self Assessment Questions 12. Different policy instruments are: · Policy instruments to build up S&T infrastructure.6 Technological Development Options and Strategies After having a brief idea on the technology policy and instruments. manpower development. 11. It is necessary that the national development strategies should include specifically the dimension of technology development. Let us have a look at a general framework for integrating the technological considerations in the national development planning process. The technology policy declaration typically contains several commitments on behalf of the ______ and some categorical assurances 14. · Satisfactory support to emerging technologies with an aim on future use in production sector. digest. and provision of support facilities and creation of a modern environment.

retrieve. Product designs of many products get linked to developments in information technology in general and to developments in electronic technology in particular · The ability to create.com/search?q=cache:http://www. logic and decision-making (auto focus in cameras) and even by creating entire new products (e. video games).5/15/13 Om 0018 formulation of policies and guidelines. · The first is the ¶incubation phase· where many ideas are gradually reduced to one commercial product for introduction into the market. Information Technology refers to ¶a very wide range of elements which are utilised to create. due to the development of better technologies in terms of performance and/or cost. · The second effect relates to shortening of product life cycles. electromechanical (e. T2 is the turbo prop aircraft and T3 is the jet aircraft. ​ Figure 7. an improved substitution makes the technology outdated and hence it enters the ¶decline phase·. calculators) or older electrical or electronic (e. · Next is the ¶introduction phase· where the applications of the new technology are very slow. They must be directed to generate and promote demand for local technologies and technological capabilities. It includes functions involving. transfer. for example. Changes in products · Information technology brings about changes in products by replacing mechanical (e. transform and convey information through means. Changes in services We use the term ´servicesµ in its webcache. 7. characterised by a successive technologies representing a system of high order.1 Information technology revolution Let us briefly study about the information technology revolution. characterised by a succession of discontinuous innovations also exhibits an Sshaped growth pattern. In other words. 7. however. Moreover. ​ Information Technology synthesises the convergence of previously distinct and separate technologies (IT). · Finally. although a particular technology eventually reaches a stage where it has limited use.8. the overall growth of these successive technologies representing a system of high order. · The product changes mentioned above have three major consequences. the insertion of technological considerations in socioeconomic development planning involves both the explicit introduction of the technological issue at all phases of the planning process and identification of implicit technology policies resulting from the national development plans.googleusercontent. that time taken for these different patterns varies widely.scribd.g. · Later when the number of applications increases rapidly. Every technology eventually reaches a down turn phase.3: S²shaped Growth of Technologies Most technologies follow an S-shaped growth pattern. new technologies are developed to achieve further growth with respect to any particular ¶figure of merit· which is the index of particular requirement. We shall now discuss some of the major changes brought about by developments in information technology. In this pattern: · The hardware intensive technology diffusion process can be considered to consist of five phases.g. The first is that the value addition is transferred from the manufacture and assembly of parts to the production of the electronic assemblies/sub-assemblies with associated software. watches). store. Moreover. · After sometime its growth reduces and some stability can be observed in the ¶maturity phase·.com/doc/82954399/Om-0018 46/87 . technological change occurs through ¶substitution·. if one takes the speed of passenger travel as a ¶figure of merit·. transform and convey information/data efficiently and economically imparted to products by developments in information technology allows the products to the integrated into larger systems so that the products are compatible with the larger systems for enhanced capability. then Technology T1 is a propeller aircraft. computers) parts or components. growth and maturity phases of a technology are also referred to as the three major stages of ¶Technology Life Cycle·.3.g. by upgrading traditional products by enhancing their capability. the technology is in its ¶growth phaseµ. For example.. transfer.8 Diffusion and Growth of Technologies There is another way of looking at the technology life from the perspective of growth and diffusion. Each of these technologies normally shows an S-shaped improvement over time. irrespective of whether these elements are in the form of equipment or services developments in information technology have already produced vast gains in productivity resulting in counter-inflationary trends in prices as well as substantial improvements in technical performance of many products and services. However. it has also been observed that. The introduction. You can see the process of technological advancement through substitution schematically in Figure 7. It may be noted.g.

in many cases.googleusercontent. ovens and mixers. Progressive services: These services require the use of some equipment and also direct personal contact with the receiver of the service. For example. This sector has the highest growth rate in most economies of the world and has the largest single share of employment in the world Gross Domestic Product (GDP). and broadcasting requires the use of studio and transmitting equipment as well as the ´personalµ contact established by the broadcaster. Changes on organisation The changes in products. With a view to understand the changes in a better way.com/doc/82954399/Om-0018 47/87 .2 Macro effects of technological change After discussing about the major impacts of information technology in the previous section.Information technology is already affecting the productivity of service production as well as increasing their transportability. engineering. further changes. Explosive services: Services that do not require personal contact belong to this category such as telecommunications. services and processes discussed above may. not only R&D but also design. facsimile transmission (FAX). In fact. the first effect continues to reduce the share of employment devoted to the production of goods. Developments in information technology are also contributing to the generation of new services in this category. air transportation requires the use of the airplane as well as that of the ​ ground and cabin crew. at least in those organisations where changes in products and processes are occurring very fast. · Greater mismatch of skills: Technological changes have the general effect of replacing labour with capital. expert committees and other forms of temporary working groups. the classification of services made by ¶Baumol· is as follows Substitutable personal services: These services also require direct personal contact but it is possible to substitute these services with technological alternatives. 7. For example. advertising. labour and land in advanced industrial economies. require new forms of management structure and business organisation.com/search?q=cache:http://www. This may be seen happening in many industries but perhaps not fast enough. In combination with other economic forces. as not to constrain. · Increasing knowledge intensity of production: The growing importance of knowledge inputs in production is clearly visible in almost all industries. while webcache. Changes in processes Information technology changes processes in two major ways: it allows the incorporation of higher levels of skills and functions into equipment as in computer controlled machine tools and robots and it increases the flexibility of many processes to achieve economies of scope involving almost continuous production of individualised products. Technological change affects the productivity of the equipment more directly and significantly than the personnel offering the personal contact-based service. As capital equipment with new technologies enters the production process it has two intense effects: a The employment level of personnel concerned with the production and distribution of products comes down ​ a The skills required to work with the new generation of technology change. thus acting as a constraint in the part of other changes.8. then knowledge input may have already become the primary factor of production displacing capital. and they may be accompanied by facilitating goods. This shows up in the form of compliment organisations where the number of hierarchical levels gets reduced significantly. The organisation structure can no more be static but should be capable of absorbing changes fast enough. guards can be substituted or helped by electronic security and surveillance equipment and domestic servants by a variety of household appliances like washing machines. Videotext and Electronic Mail.scribd. Information technology is bringing about significant productivity increase in these services thereby reducing the unit cost and setting counter inflationary trends in prices. its competitiveness and its factor endowments. if we include in knowledge. Let us now describe the major consequences in terms of their macro effects. the product life cycle is constantly getting shorter and firms have to spend more and more on R&D to remain at the cutting edge of technology and to exploit any breakthroughs achieved.5/15/13 Om 0018 broadest sense as bundles of benefits some of which may be intangible and others tangible. · In many industries. marketing and management. This also gives rise to higher dependence on task groups. we would like to revert to technological changes in general and their effects on the economy. To be successful with new technologies. For example. an organisation must be able to innovate and produce competitively.

5. Commitments 11.scribd. 3. Briefly describe technological development options and strategies. it wanted to transform its desktop based application into a web based application. Technology policy 13. Altering changes 2. Refer section 7. Government 14. Innovation 6. In addition. True 15. The company aimed to conform to the web support solutions suitable to the business and technological strategy. True 3. Socio-economic planning 16. 7.10 Glossary Term Commercialisation Description To relate methods to business to gain profit. The Successful integration of technological considerations into the ____ process is very essential 16.8 Diffusion and Growth of Technology· 5. alteration and at times even undesirability of tasks. Challenges: The company intended to build a common reusable webcache. Knowledge 5. impact of technology change and determinants of technology change. Refer section 7. However. The second effect changes the skill-mix of employment more abruptly as certain skills end up having practically no or little economic value. Turn down ​ 17. Skill mix ​ Typology 7. Refer section 7.5/15/13 Om 0018 expanding the service sector. Explain technology policies and technology instruments.4 Technology Transformation. We also analysed that country·s technology development strategy is determined by discovering the technological requirements with potential technological expansion in the world and a thorough assessment of existing and emerging technologies. True Terminal Questions 1. We further discussed about technology policy and technology instruments. the labour component (unskilled and semi-skilled) in many manufacturing activities is falling. we discussed that the impact of technology change can be direct or indirect.13 Case Study The XYZ Company develops and maintains the legacy commercial trust information and hazard management system. True 10.12 Answers Self Assessment Questions 1. addition. A potential solution to the health service delivery problems. We studied about the technology changes and discussed its characteristics that are grouped into nature and impact of technology change. Briefly explain diffusion and growth of technology. Self Assessment Questions 15. True 12.6 Technology Development Options and Strategies. functions and their dependent occupations. 1. syndication. Refer section 7.9 Summary We started this unit by giving a brief introduction on the aspects and issues in technology management. Most of the financial services companies have been benefited by XYZ. Circuit modification 4.com/search?q=cache:http://www.11 Terminal Questions The systematic study of various types that has characteristics in common. 7. giving rise to an erosion of this important competitive advantage. diffusion and substitution stages. Every technology eventually reaches a ____ phase due to the development of better technologies in terms of performance and/or cost 17. successful integration of technological reflection into the socio-economic planning process is very essential. Collective stage 8.2 Technological Change. In order to become more flexible with business and improve its technology. We also came across the technology life cycle which includes innovation. as described above in the previous sections. based on their occurrence and the structure of organisation and society We also learnt that the changeover from old to new technology is characterised by the creation. Refer section 7. 4. True 7. Technological changes have the general effect of replacing labour with capital.googleusercontent. Write about technology transformation. Explain technological change.5 Technology Polices and Technology Instruments. (True/False)? 7. 7. wherein we studied that the technology policy declaration typically contains several commitments on behalf of the Government and some categorical assurances.com/doc/82954399/Om-0018 48/87 . Technology life cycle 9. We classified the technology change as incremental. 2. 3. Further. 2. entrenching and altering changes. · Erosion of competitive advantage of developing countries: The developing countries have traditionally been having the competitive advantage of cheap and abundant labour and some natural resources. 4.

Hibernate (Object Relational Mapping). · Identify the importance of R & D. Technology generation and development is often identical with the term "Research and Development (R&D)". which will enable us to understand the technology development process. Discuss about the ABC Company.scribd. This unit will enable us to understand the importance of technology generation and development.1 Introduction Previous unit familiarised us with the different aspects and issues in technology management.com/search?q=cache:http://www. In order to match with desktop graphical user interface (GUI). However. its importance. ABC was initially found to assist the clients with offshore development works. In this unit. and transformation of technology. we can consider the R&D process as webcache.10 Answers 8. ABC was able to complete entire java GUI. We will also discuss about the importance of ¶Research and Development· (R&D). Further. OM0018-Unit-08-Technology Generation and Development Unit-08-Technology Generation and Development Structure: 8. and its importance at the national and enterprise levels. Further. 8. and its determinants. 2. · Describe various approaches available for the development of technology at enterprise level. the relationship between technology and socio-economic planning. technology generation involves R&D efforts. it analysed the existing desktop XYZ applications business processes. we will study about the generation of technology. it developed web-front using JSP/JSF. Solutions: The company involved ABC to meet their future requirements.4 Importance of Technology Generation and Development 8. Questions: ​ 1.1 Introduction Objectives 8.6 Importance of Research and Development (R&D) Corporate research and product lifetimes Production costs and R&D Translation of R & D efforts to technology 8. database and technical processes.8 Glossary 8. It maintained a team to accomplish the tasks involving project mangers. it assisted its clients in their outstanding works to ensure timely delivery. · List out various inputs required to translate the R & D efforts to technology.5/15/13 Om 0018 technological framework. and its efforts are translated to technology. It ensured to create minimum modifications to users. while technology development involves further stages of translating R&D efforts into marketable products. We also discussed about different technology development options and strategies. Initially. and diffusion and growth of technologies. and the different technology development approaches. to alter and restore all legacy applications. Explain the transition process from legacy application to the web based application. which means the alteration to the front-end should bring in only few changes in contrast to the previous framework.7 Summary 8. Basically. It conducted the unit test and system test for its various applications. It designed the architecture for web application.5 Need for Technology Strategy 8.com/doc/82954399/Om-0018 49/87 . We will also study about the technology development. you should be able to: · Explain the process of technology generation and development.11 Case Study 8.2 Technology Generation We will start our discussion with the meaning of ¶technology generation·. processes and services. · List out the determinants and their relationships in technology generation. Objectives: After studying this unit.3 Technology Development Process Determinants Technology development approaches 8.googleusercontent. oracle 10G Database (Database server) and Apache Tomcat Web/Application server for business logic processing. the life cycle of technology. codes and reports and developed hibernate objects. it aimed to accomplish a successful Proof of Concept (POC) that will serve as a roadmap to transfer from legacy applications to web-based solutions.2 Technology Generation Process Determinants 8. including the change in technology. We will also analyse the need for technology strategy. · Explain the need for technology strategy for continued competitiveness and growth of a firm. application and data layer structure at correct time and budget. It also wanted to bring a common toolset for the web -based solution along with the future enhancement in java (JSP/JSF for presentation).9 Terminal Questions ​ 8. the unit enabled us to understand the different technology policies and technology instruments. Apart from these aspects. coordinators and technical developers. wherein we will study the process of technology generation. The developmental works undertaken by ABC was numerous. Ultimately.

design and production and marketing of the generated idea. training and development. Such management attitudes need to be changed in the overall interest of the company. we will now discuss about the determinants in technology Generation. hence. that technology generation and development is costlier than basic R&D. Sometimes. funding of R&D. the cost rises by orders of magnitudes in the ratio 1:10. It is precisely this reason. Overall.2. The R&D projects tend to go through the following stages: · Basic research and invention. the expenses of modern industry for R&D were considerable. with the expense increasing by an order of magnitude at each stage. resource personnel. 8. thereby indicating a complete neglect of R&D concept. and the process is not complete.1.2. surroundings. criteria and resource allocation are some of the inputs to R&D.googleusercontent. We can classify corporate research activities by the purpose of the research: · To support current businesses. energy. timely collection and interpretation of technical and other information. · Engineering prototype and testing. materials. The other primary motivation for R&D is to find potential applications for advances in knowledge. In Indian industry or corporate sector.2. The major purpose of research is to reduce technical risk before production-scale investment is committed. the availability of support structures and incentives at government level. the term "research and development (R&D)".1. The management decisions to continue from research to development are therefore very important.1 Process As we are discussing about the technology generation. inefficient personnel from other departments are posted or transferred to R&D ​ department. its ideas and knowledge which are being followed. management policies and support. the R&D or technology generation involves many other aspects such as. information and existing technologies. The main determinants of technology generation are the stages of webcache. Corporate research and development is the principal corporate asset for long-term technological competitiveness. Each stage of innovating a new product is expensive. The input resources into R&D organisations are the traditional inputs such as money. marketing and production personnel. · To provide new business enterprise. it is generally observed that the research personnel occupy secondary place to finance. A ´Research" on existing knowledge for satisfying identified need helps in idea generationthis is theµ need pushµ which is shown in the figure 8. The effectiveness of any R&D is determined in terms of the ¶usefulness· of the technologies it produces with respect to the overall objectives of the corporation Besides these factors.2 Determinants After the process.scribd. · Production prototype and pilot production.1. while stages four to six are called "development·. Let us understand the objectives of Corporate R & D and R&D Projects. 8.2. and hence all countries or all enterprises are not able to pursue these activities at similar levels. the recognition of a need for innovation is one of the inspirations for R&D. let us now discuss about the process of technology generation. · Applied research and functional prototype.2: Process of Technology Generation In the figure 8. · Initial production and sales. facilities. Through the entire process. · To explore possible new technology basis. skills. The quality of resource leadership and commitment of the top management for research is extremely important. knowledge. and the intelligence-based inputs such as science.1. interactions at all levels. ​ The first three stages are usually called "research". ​ Figure 8.5/15/13 Om 0018 having four distinct stages as shown in figure 8. Let us have a look at an illustration of the various inputs required for generation of technologies in Figure 8. monitoring and evaluation of R&D projects. Figure 8. and are not given due importance in decisionmaking at corporate level. goals.com/doc/82954399/Om-0018 50/87 . The ´development" includes creation. · Product testing and modification. ´Research" on existing activity for introducing new knowledge also helps in idea generation-this is the ´technology pushµ as shown in the figure 8. which can be a hardware or software intensive technology. until the new idea is converted into a marketable product or service. labour and management. It is generally reported that at each stage. the output of which is technology.1: Stages of R & D Process As per the figure 8.com/search?q=cache:http://www.

3. · Improve the skill base and employee training. we will now study about the determinants in technology development. · In-house R&D: Technology development activities are generally carried out through setting up of separate in-house R&D units within the business.3. starting from the generation of ideas in the R&D department. This section will help you to understand its development. which: · Modify the competitive atmosphere and encourage promoting the use of world-class technologies and management methods. (True/False)? 3. · Motivate the investors to shift into more complex technologies. The demand side factors include market potential venture capital and enterprise profitability.1 Process Let us first study about the process of technology development. Risk factor is large and the success rate depends upon the quality of inputs provided to the R&D department. The supply factors include natural resources. and produced resources. Self Assessment Questions 1.2 Determinants As we are studying about technology development.4. with a view to achieve efficient production.3: Technology Development Process ​ 8. However. ​ Though. You can see the determinants and their interrelationship in technology development from R&D to technology diffusion and substitution are shown in figure 8. Many of the multinational corporations invest in supporting the in-house skills and technical knowledge to a great extent with a view to achieve efficient production but not necessarily to raise the capabilities to the next level of _________. The higher level of local capabilities and competitive environment will lead to a better quality of the initial transfer and rapid upgrading. 8.4. and promote the technological functions undertaken locally. to perform trials and modifications are depicted in figure 8. The various stages of technology development process or life cycle. more elaboration of various factors that determine technology development is described in this section. countries require policies. Technology generation and development is often identical with the term ________. to execute projects.com/doc/82954399/Om-0018 51/87 . but not necessarily to raise the capabilities to the next level of technology. Activity 1: Imagine you are generating a technology for your business. to estimate market and inputs required.3. the ¶D· of R&D covers ¶Technology Development·.4: Determinants in Technology Development A per the figure 8. its competitors and supplier network.com/search?q=cache:http://www. as well as the competitive environment.googleusercontent. the latter has much wider implication. directly reporting to the top management. Many of the multinational corporations invest in supporting the in-house skills and technical knowledge to a great extent. supporting facilities and government policies and systems have a major role to play in the success of the technology development process. The coordinating organisations. 8. human resources.3 Technology Development Approaches This section will give us a brief idea about the approaches of technology development. managed and headed by a well-qualified and experienced chief. 8. Figure 8. The policies should help to raise the quality of labour force outside the firm and ensure to provide better training to the employees within the firm. In large webcache. The strength and facilities in the in-house R&D unit would depend upon the technology policy of the company and the nature of the business. criteria. broadly speaking. fund allocation. For better understanding. 2. We may observe that this process is tedious and requires top management commitment and support from outside.5/15/13 Om 0018 skills and abilities of the associate. this unit has close interactions with other departments within the company and there could even be exchange of personnel among different departments. In order to achieve this. surroundings. natural resources are assembled and processed through the succeeding stages.scribd. Figure 8. · Improve the technology access for local enterprise. What are the necessary inputs you will consider for it? Hint: Goals.3 Technology Development The previous section familiarised us with technology generation along with its process and determinants.3. by providing information on foreign and local sources of technology. The effectiveness of any R&D is determined in terms of the ¶usefulness· of the technologies it produces with respect to the overall objectives of the corporation.

Enlist the steps to develop a new technology that you can add in your document. specifically for conducting research and development of technologies for others on commercial basis. Industrial R&D is mostly product or process oriented with specific objectives and time schedule. · Research companies: Large firms of technology innovative industrialists may support research companies. 6. most important part of the R&D can be done at the centre and the remaining part involving finer details or critical technological aspects affecting the competitiveness is done at the in-house R&D division of the company. Such societies may undertake R&D activities mostly relating to the broad interests of the promoting companies in line with the national interests. It is found in areas such as micro-electronics. Such inter-firm collaborative R&D efforts are becoming common in developed countries mainly due to high costs and shorter technology life cycles. academic institutions. A firm may also collaborate with the public funded or privately funded R&D institutions on case-to-case basis. This approach usually requires considerable internal technological and managerial capabilities coupled with a strong Science and Technology (S&T) information base. Hint: Various stages. and sets up expertise and facilities of common nature and which are usually expensive. · Research societies: Large corporations or industrial houses may set up independent research societies. real-world energy solutions to meet their customers· evolving needs. we will now study about their importance. 8. or consultants or experts. · R&D collaboration: A company may collaborate with another company in areas of common interest. in addition to their in-house R&D units.com/doc/82954399/Om-0018 52/87 . materials. supporting facilities and government policies and systems have a major role to play in the success of the technology development process.com/search?q=cache:http://www.scribd. The development costs and reasonable profits are recovered from the sale and transfer of technologies. Technology development activities are generally carried out through setting up of separate _____ units within the business. A company can also support specific projects to this centre. and so on. Self Assessment Questions 4. Distributed Energy Systems· Technology Generation group is committed to the development of practical. where R&D results are shared mutually.5/15/13 Om 0018 companies. key strategic relationships and industry leading solutions. A company may adopt any of the approaches or a combination of the approaches depending on its needs and resources. to develop the desired technologies. Otherwise. The in-house R&D unit may coordinate the progress of the activities. Such a concept is common in USA. information technologies. Through new product development. and so are the expenses. and other developed countries while it is yet to gain recognition in developing countries such as India. ​ · Co-operative R&D: A group of companies in a particular industrial sector promotes an R&D centre as a society or a non-profit making company.googleusercontent. managed and headed by a well-qualified and experienced chief. The coordinating organisations. A company in India may even collaborate with another company or R&D institution abroad. 5. while emphasis is on new technologies or new applications of technologies in advanced countries.4 Importance of Technology Generation and Development As we are now familiar with both the technology generation and technology development. The R&D is funded by the participating companies and the government. Risk factor is large and the success rate depends upon the quality of inputs provided to the __________. This R&D centre undertakes R&D as per the requirements of the companies in their larger interest. · Contract research: A company may contract components of technology development to suitable R&D organisations. directly reporting to the top management. Cooperative research facilities are normally utilised for the projects which are not of cautious nature from the business point of view. there are sometime R&D labs for each department and a central R&D lab for major R&D projects. they are focused on meeting webcache. on mutually agreed terms. Activity 2: ​ Suppose you have to create a document on ¶development of technology·. if costs of development are high. They will also take advantage of those facilities for the activities and programmes in their in-house R&D unit. Governments usually encourage such societies and provide several tax concessions and financial incentives. bio-technologies. and not basic research. Incremental developmental efforts or import substitution efforts are generally common in most of the industries in developing countries including India.

8. critical loads. · Megawatt wind turbine technology: Distributed Energy Systems has developed an advanced gearless drive train design for megawatt (MW) scale wind turbine applications. Distributed Energy Systems has developed the HOGEN RE hydrogen generator. task force.googleusercontent. realworld energy solutions to meet their customers· evolving needs. Korea may decide to webcache. 8. and load levelling in finest power markets. economic and social objectives and translates the same into action through appropriate policies and mechanisms. each country outlines and adopts a technology strategy to achieve its political. the Technology Generation group is advancing technologies in several core areas. To meet the growing demand for electrolysers for hydrogen-based renewable energy systems. Distributed Energy Systems has developed the _________ hydrogen generator. They have also designed and tested a 1. These advanced technologies also have applications in ground-based and marine environment. US may adopt to excel in "defence" or "warfare technologies" or in generation of first stage new technologies for knowledge-based industries. Individuals. National Science Foundation. it actually implies longterm. remote geographies. develops models and builds solutions to meet the needs of commercial aerospace partners and civilian and military government agencies. While tactics means the action to deal with immediate specific problems.5 Need for Technology Strategy This section will give you an overview of the need of technology strategy. as well as the government entities like the US Department of Energy. (True/False)? 9. To meet the growing demand for electrolysers for hydrogen-based renewable energy systems. the work is being developed for low earth orbit (LEO) and geosynchronous earth orbit (GEO) satellites.com/search?q=cache:http://www. reliability and performance. As the next evolution of the company·s advanced proton exchange membrane (PEM) electrolyser. peak shaving.5 MW slow speed permanent magnet generator for direct drive wind turbine applications and developed and commercialised a power converter platform for wind and related applications based on their FlexPhaseŒ power module technology.com/doc/82954399/Om-0018 53/87 . These strategies may be different for different countries. · Backup power and renewable-to-hydrogen systems: Regenerative fuel cell technology can be used in a wide range of backup power applications including telecommunications. Let us have a quick overview of types of technology strategies and their need. National Renewable Energy Laboratory. and connected to the grid with an advanced power converter platform offers advantages in efficiency. In an effort to look for ways to extend present resources.scribd. Whether or not an organisation would generate or develop its own technology and with what intensity it would follow. · Military & Aerospace hydrogen applications: Leveraging the core proton exchange membrane (PEM) technology. · Hydrogen fuelling systems: Distributed Energy Systems is developing hydrogen fuelling systems to meet the needs of an increasing number of fuel cell electric and convenient power applications. the efforts in this respect would depend upon technology strategy it has planned or adopted.5/15/13 Om 0018 present commercial needs while advancing the innovation required creating future energy choices. with respect to set objectives. the technology has been used and validated with renewable sources of energy such as wind and solar. Distributed Energy Systems designs. high altitude airships and high altitude winged aircraft. For example. Distributed Energy Systems is developing hydrogen fuelling systems to meet the needs of an increasing number of fuel cell electric and convenient power applications. while Japan may decide to excel in technologies for consumer products of newer designs at lower costs. · Macro-level strategy: At macro level. the HOGEN RE generator incorporates sophisticated power electronics to make integration to renewable power sources easy and efficient. Though the term ·strategy· is commonly used as an antonym of ¶tactics·. From high pressure electrochemical cells to high energy density regenerative fuel cell (RFC) energy storage systems. purposeful and interconnected efforts. Self Assessment Questions ​ 7. NASA and California Energy Commission. Partnering with commercial. Distributed Energy Systems· ___________ is committed to the development of practical. ¶Technology Strategy" may accordingly be defined as a strategy to deal with the technology and related issues at macro and micro levels. This slow speed permanent magnet generator directly coupled to the blade hub. and communities seek out the hydrogen fuelling systems because they are available in a range of production capacities and produce pure hydrogen.

technology strategy must anticipate the transient impact of technological innovation ​ on the future competencies of the corporation.googleusercontent. Also. mechanisms are set up and measures are taken to ensure the achievement of the set objectives. · Determine which technologies and potential technological changes are most significant for competitive advantage and industry structure.scribd. we will now discuss about the importance of R&D projects in corporate research and the relation between R&D and production costs. On the other hand. technology strategies may vary with the national perspectives.1 Corporate research and product lifetimes R&D projects in corporate research create and extend the lifetimes of corporate products that webcache. and increased international competitive pressures provide threats and opportunities for firms. · The need to attain complementarities. Self Assessment Questions 10. (True/false)? 12. the basic role of technology strategy in any business planning is to pose three fundamental questions: · In what business should the firm engage in future? · How should the firm be positioned in these businesses? · What research. The basic role of technology strategy in business planning is to help ask the questions like: what business the corporation plans to be in and how it should be positioned? Effective planning identifies the present decisions required to create desirable and competitive corporate futures.6. and reduces the threats and insecurities facing them and their employees. · Identify potentially relevant technologies in other industries or those under scientific development. 8. · Micro-level strategy: The extraordinary range and potential uses of contemporary technology have important consequences for industrial and commercial firms. with respect to set objectives. An effective strategic approach to technology allows firms to cope better with these changes. and accordingly policies and mechanisms are evolved and implemented. without bothering for defence or other strategic applications. According to ¶Fredrick Betz·. Thus. · Select a technology strategy. _________ may accordingly be defined as a strategy to deal with the technology and related issues at macro and micro levels. Linking business and technology strategy: According to ¶Fredrick Betz·. Importance of technology strategy ¶Mark Dodgson· has identified the following five issues which bear on the importance of corporate strategy for technology: · The need to cope with technological uncertainty. India may decide to develop its own capabilities in strategic areas such as defence. the basic role of technology strategy in any business planning is to pose three fundamental questions.5/15/13 Om 0018 adopt and upgrade imported technologies using mass production techniques for consumer products without really caring much for high quality levels. encompassing all important technologies. and the need for technology strategy. Depending on the resources available and the will of the government. · Complexity and discontinuous nature of technological development. · Determine the likely path of change of key technologies. the policies are evolved. ​ · Reinforce business unit technology strategy at the corporate level. · The relationship between corporate strategy technology and public technology policies. The inputs to the process occur through participation of staff and line management and of special planning groups.6 Importance of Research and Development (R&D) After discussing about the technology generation and technology development. encompassing all important technologies. Select a technology strategy. 8. resources. An appropriate level of formal planning provides systematic and documented strategy. The industrial and organisational disorder produced by technological change. · The need for technology to be viewed in a global context. atomic energy and space where technologies are usually closely guarded or for maximum utilisation of its own resources. In particular. that reinforces the firm·s overall competitive strategy.com/search?q=cache:http://www. that reinforces the firm·s overall _________. Technology scenarios should help management focus on the interaction of changes between technology and change in markets.com/doc/82954399/Om-0018 54/87 . 11. Financial resources play an important role in evolving the technology strategies. · Assess a firm·s relative capabilities in important technological aspects and the cost of making improvements. the following steps have been suggested: · Identify all the distinct technologies and subtechnologies in the value chain. regulation and competition. production and marketing will be necessary to attain those positions? Formulating a technology strategy In planning technology strategy for competitive advantage.

technology commercialisation capabilities and innovation performance were stronger among the latter than the former.3 Translation of R & D efforts to technology This section will examine the relationship between R&D capabilities and technology commercialisation. Production costs of new products usually decline over times. and may incur losses. This is an essential function because all products have finite lifetimes which can extend to a period of one year or many years. in order to enhance their performance they must avoid closely focusing on R&D. a competitor has less incentive to enter. Pricing strategy These are also highly dependent on R&D efforts at corporate level and the efficiency at which R&D is carried out. Instead. Profit margins. The practical assumption of this decision to the companies is that. The technology commercialisation capabilities of firms participated as the role of a mediator in the relationship between R&D and innovation performance. All new products based on new technologies have initially high per unit product costs. To maintain a long-lived product. The entry into a new high technology market is restricted because ____ is new and is not widely known. But its consequence was most often resolved by technology commercialisation capabilities. Market share.5/15/13 Om 0018 avoid technological obsolescence of businesses. It is precisely due to this reason that open competitiveness encourages innovations as happens in advanced economies while restrictive policies and assured markets through licensing systems discourage innovations. due to process and product improvement. · Small volumes of initial production. they should also invest in capabilities to commercialise technologies resulting from R&D. variation in product lines.6. quality must be maintained on balance with competing products. other competitors can enter with technology products. But even in a long-lived product. periodic reformulations. · Creating next generation product models. initial production costs are usually much higher than later production costs. The increasingly larger volume of production also lowers per unit overhead charges. (True/False)? 15.googleusercontent. including learning and external networking capabilities.6. In any new product line. · Inefficiencies in the production processes and in production design. 8.scribd. due to process and product improvement. The entry into a new high technology market is restricted because knowledge is new and is not widely known. lifetimes tend to be short. if not more. When direct and indirect benefits of public R&D funding are compared together. but a broader set of factors. · Upgrading and improving current product models. The strategic trick is for the technology innovator to ride the markets faster than the competitors and enter new products earlier than others. Yet. because of: · Large R&D and plant investment costs. The research implication of this decision is that the measurement of firms· performance should not only depend on the intensity of R&D expenditures. process (technology commercialisation capabilities) and output (innovation performance). The R&D was focussed on influencing the innovation performance of firms which resulted in a significant impact on innovation. However. Products then are high priced because sales volume is small and production costs are high. Innovations and improvements in production processes create more efficient production procedures. The function of corporate research is to create and extend the lifetimes of the company·s products. 14.com/search?q=cache:http://www. these factors improve over time. and changes in packaging provide some change in the product.2 Production costs and R&D Production costs of new products usually decline over times. and innovation performance in IT-related businesses. ​ webcache. if prices are reduced in anticipation of production costs being increased in future. In times of new and rapidly changing technologies. 8. and cost reduction in production must be ahead of competitors. Extending product lifetimes can be done by: · Improving the production processes to lower production costs and increase quality. Self Assessment Questions 13. Within the innovation cycle of input (R&D capabilities). it is found that R&D occasionally influence performance in an absolute fashion.com/doc/82954399/Om-0018 55/87 . R&D projects in corporate research create and extend the lifetimes of corporate products that avoid ________ obsolescence of businesses. A mature technology product may have a very long lifetime if no clearly superior technology has emerged. if the price is held there too long. ​ For a successful product. since high profit margins and growing markets provide the competitive incentive. the explanatory power of the relationship between R&D capabilities.

Technological 14. We understood that ¶technology generation and development· is comparable with the term "Research and Development (R&D)". Technology Generation group 8. In-house R&D 5. with respect to set objectives. Explain Technology Generation. Explain the need for technology strategy. processes and services. surroundings. We defined ¶Technology Strategy" as a strategy to deal by means of the technology and related issues at macro and micro levels. its competitors and supplier network as well as the competitive environment. 2. It is the state of being which occurs when an object. the output of which is technology. We also discussed the Technology generation group which focussed on hydrogen fuelling system. Research Societies and Research companies. applied research and functional prototype. To change or update a plan or idea that is already formulated. Competitive strategy 13. we learnt about the importance of R&D in corporate research and product lifetime and production costs and R&D. True 6. True 15.googleusercontent. back up power and renewable-to hydrogen system and megawatt wind turbine technology. engineering prototype and testing. It is depositing a small portion of the purchase price or a technique of taking position in the investment. True 9. criteria and resource allocation as some of the inputs to R&D. Refer section 8. product testing and modification and initial production and sales. It refers to satellite that evolve around the earth with the same speed. 3. Technology strategy 11. 4. R&D department 7. A device which is used to breakdown water utilising electricity. Refer section 8. 8. In addition. production prototype and pilot production.com/search?q=cache:http://www. while technology development involve additional stages of translating R&D efforts into profitable products. Technology 4. HOGEN RE 10. 5.scribd. 8. We learnt about the process of technology production wherein we saw goals. On the other hand. We further discussed about the technology development approaches wherein we learnt the inhouse R&D and Co-operate R&D.8 Glossary Term Description Passing particularly quickly into and out of existence or producing results beyond itself. Discuss the importance Technology Generation and Development. We learnt about the main determinants of technology generation. True 12. True 3. Refer section 8. 2. Research and Development 2.3 Technology Development. which includes the stages of skills and abilities of the associate.2 Technology Generation. We also came to know that recognition of a need for innovation is one of the inspirations for R&D.5/15/13 Om 0018 8. with the affect of R&D on technology. We analysed that the effectiveness of any R&D is determined in terms of the ¶usefulness· of the technologies it produces with respect to the general objectives of the business. Knowledge Terminal Questions ​ 1. Explain Technology Development. 8. 3.com/doc/82954399/Om-0018 56/87 .10 Answers Self-Assessment Questions 1.4 webcache. but need not be the same distance from Transient Leveraging Obsolescence Reformulation Electrolyser Geosynchronous ​ the earth. Explain the importance of R&D. We further classified R&D projects into the following stagesbasic research and invention. R&D collaboration.9 Terminal Questions 1. technology generation engross R&D efforts.7 Summary We started this unit by giving a brief introduction on technology generation and development. military and aerospace hydrogen application. into hydrogen and oxygen. service or practice is no longer wanted even though it may still be in good working order.

features of technology package. The main aim of the program was to increase networking with the hope that networking would direct to greater innovation. · Explain the dimensions of technology transfer and features of technology package. and the routes of technology transfer.1 Introduction Previous unit familiarised us with technology generation and development.4 Technology Transfer Modes 9.5/15/13 Om 0018 Importance of Technology Generation and Development.6 Features of Technology Package 9. Refer section 8.3 Models of Technology Transfer Traditional technology transfer models Qualitative technology transfer models Other models 9. Even though R&D training programs have been in position in the 1985s and 90s. HR was ready to design its next stage. Solution: The R&D leadership took the initiative and defined the goals and aspirations.5 Dimensions of Technology Transfer 9. The leadership defined the scope of the program as being limited to R&D people and lead to the success of having R&D people teach other R&D people. active mode. you should be able to: · Define technology transfer.design the college.scribd.6 Importance of R&D. The primary goal of these colleges was to bring up the levels of marketable innovation. Challenge: A whole of six colleges make up the R&D University. one for every level in the company opening with incoming scientists and mangers at group 1 up to directors and top scientists at group 5. Questions: ​ 1. Explain the issue that lead to the establishment of corporate University along with the challenges faced. The present leadership appealed the HR to build up a corporate university. 9. the programs were neglected in the late 95s due to supply issues and challenging priorities all the way through the company.1 Introduction Objectives 9.com/doc/82954399/Om-0018 57/87 . Refer section 8. so let us start our discussion with the meaning of transfer of technology or commonly called as ¶technology transfer·.2 Transfer of Technology We all are familiar with the term ¶technology·.9 Glossary 9. 2. ​ Objectives After studying this unit. Basically there are two ways of acquiring a new webcache.7 Routes of Technology Transfer 9.8 Summary 9. its models including traditional models. The victory of the college is well received all over the R&D. in large part.10 Terminal Questions 9. but the problem was to begin the task. 4. A lot of questions were raised during the decision process and the choices led to the successful formation of the R&D University across five levels of the organisation. and horizontal and vertical transfer. In the previous unit. determinants in technology generation and development. development approaches. · Explain the models of technology transfer and their uses. 5. a corporate university binds business learning efforts directly to primary business goals. semiactive mode. such as passive mode. · Describe technology transfer modes. This unit will enable us to use appropriate model for transferring a technology. · Identify routes of technology transfer. by increasing networking across business to encourage cross-fertilisation of thoughts. we will study about technology transfer. and about R&D. In this unit. By covering all these steps. The professionals of R&D represented the various business units and scientific disciplines. By definition. The leadership was well built.11 Case Study The Human Resource (HR) director of R&D was called by the leadership team of ABC to organise a formal training specifically to the R&D people. we studied about the process and need of technology generation and development.11 Answers 9.2 Transfer of Technology 9. The formal training provided a way to establish this tradition which was lost during the last decade of global growth. This was accomplished by the HR by building up a task force to create the R&D colleges. To cause an increase in modernisation by rising networking across various business and success measure and providing training which is equally official and compulsory. We will have a brief discussion on the dimensions of technology transfer. The task force was headed by the HR leader and R&D leadership encouraged the people to become members.12 Case Study 9. OM0018-Unit-09-Technology Transfer Unit-09-Technology Transfer Structure: 9.5 Need for Technology Strategy. 8. and some other famous models. qualitative models. Discuss the steps taken to accomplish the desired task. We will also study about technology transfer modes.googleusercontent.com/search?q=cache:http://www.

scribd. purchasing a new technology. Let us start with a brief discussion on the types of issues that you may face during planning and managing the transfer of technology. · The transfer process embraces a rich variety of mechanisms and relationships between recipient and donor (supplier of technology). in technology transfer. ​ · Transferee may not trust in transferor developed systems. Secondly. and maintain. · Both transferor and transferee may have inappropriate goal during negotiations. is commonly called "technology transfer". · Corporate capability issues. · The transferor and transferee may have different objectives.5/15/13 Om 0018 technology: either develop it or purchase it. Planning stage issues · While transferring the technology to a developing country setting.1: Types of Technological Transfer Issues ³ Technology transfer process issues: The word technology transfer process refers to the steps or the stages in the transfer of technology. Though it provides solution for problem. · Transferors may fail to accomplish quality targets. The second way of acquiring new technology. · Transferor may need to manage the planning process when the transferee manager is not involved in it. planning stage. from the local environment. that is. Thus.com/doc/82954399/Om-0018 58/87 . · A sense of advantageousness prevails in the transfer of technology. Technology transfer implementation issues · Transferors may not have skilled technology transfer managers. and market strategies. · The nature of the technology that is transferred. · Transferors may get delayed in obtaining additional materials. The process can vary from a routine people-less passive transfer to turnkey contract where the donor takes the full responsibility for all phases of the contract. and implementation stage. such as. Justification and selection stage issues · Misjudgements during the preparation of a business case for a technology transfer may lead you to select wrong technology. which are: · Technology transfer process issues. · Both transferor and transferee may fail to accomplish agreement on price. · The technology may cost too high to purchase. Let us have a look at the problems you face during these stages. justification and selection stage. In the process of technology transfer. but also some factors such as. you may have to face problems during all the stages.googleusercontent. Issues due to inadequate skills · The transferee may fail to attract the essential skills due to economic and business limits. · Operating environment and National Innovation System (NIS) issues. product. corporate capability. You must note that no transfer of technology can take place unless and until we put the technical knowledge to use.com/search?q=cache:http://www. Technology transfer may initiate as an answer to the problems of others. · Transferor and transferee may not trust each other. negotiation stage. Negotiation stage issues · There may be different negotiation approaches and strategies. Let us have a look at some of the key factors included in technology transfer. distribution and customer service. · The technology may need to adjust considerably to suit for local conditions. · The transferee personnel may not be webcache.1. as given in figure 9. that is. and the way it is transferred are critical to the success of the process of technology transfer. · You may have not chosen appropriate mechanisms to implement the transfer technology. needed for fast operation. · The technology you have selected may be too complex to understand easily and to interpret the transferee. the manufacturing. there are some issues which you have to face during planning and managing technology transfer. We can not only include scientific or engineering items. · Corporate capability issues: After discussing about technology transfer process issues. there are sellers whom we call "transferors" or "licensorsµ as well as buyers whom we call "transferees" or "licensees". We can classify these issues into three categories. install. · Transplantation of technology involves shift from one set of well-defined conditions to another set in which at least one key variable may differ. · Transferor may not understand the needs of the transferee completely. marketing. we will now study about some issues related to the capability of the company. ​ Figure 9. · Transferee·s employees may not have experience and they may not have essential skills at the industry level. whether asserted or not. We will now discuss about these issues. · The cost may be too high due to poor implementation. operate. the transferor may misjudge the problems incurred in it. Adoption of such outside solution to solve an ¶inside· problem is technology transfer. the recipient may apply the technology to a different purpose from that of the supplier.

operating environment and NIS issues. when the users have been found by the technology. in this section we have studied different traditional models. This model specifies the activities to be carried out and also accentuates the importance of both transferor and transferee to expertise for undertaking technological forecasting. · Implement. · Operating environment and NIS issues: After discussing about two types of issues.googleusercontent.3.2 Qualitative technology transfer models There are several technology transfer models. In this model. let us have a look at some traditional technology transfer models. And during that period the government controls were used to identify the speed. · The knowledge utilisation model: This model gives priority to the importance of communication between the technology developers and the technology users.scribd. we can divide the process of technology transfer into four stages: · Search. in achieving the technology transfer. The limitation of this model is that it offers one-way communication only. will transfer the knowledge only to the user. The focus of this model is on the effective organisation of knowledge. technology transfer also has some models associated with it. Till now. who is willing. which refers to the transferor and gives an impression that the owner of technology is giving away a valuable asset out of selfless reasons. First. or the competitive market has discovered the technology. and the importance of the barriers existing in an organisation.1 Traditional technology transfer models · The appropriability model: This model indicates the significance of research quality. Let us now have a look at qualitative technology transfer models. Some researchers have argued that this model a limitation of linear biasness.3 Models of Technology Transfer ​ As we are now clear with the concept of technology transfer. let us now study about models of technology transfer. of technology transfer. · Maintain. The Bar-Zakay model helps us to learn some facts. · Local markets are reducing due to unfavourable changes in the economic levels of the country. Issues due to ineffective management · Transferors may not have perceptible and dedicated top management support for the project. 9. the process of transfer of technology takes place. the term ´donorµ is used. · The competition for the ownership of the technologies among Individual or organisation. and value of technology flows. 9. and there may be ´notinvented-hereµ syndrome. Purchasing a new technology is commonly referred as ___________. Self Assessment Questions 1. and gathering of projectrelated intellect. direction. · They may depend more on foreign suppliers and imports. This model helps in reduction of the complexity in the process of technology transfer to a process with ordered stages. and was introduced by Bar-Zakay (managing partner of films. which are: · The need of comprehensive examination of the technology transfer process from search stage all through postimplementation stage. Transferor and transferee managers may have _________ working methods and practices. and facts expressed in this model had reversed the position of the consumers (mainly passive) of technology who trusted on the programs supported the purchase of technology to a greater extent during the period 1960 to 1970. long-range planning.5/15/13 Om 0018 provided required training. As per this model. · Transferor and transferee managers may have different working methods and practices. Experts should do this dissemination. 2. and the pressure in the competitive market.3. It also emphasises the promotion of the use of the findings of the research. we will now discuss about another type of issues. · Adapt. Like some other concepts related to technology. · Top managements may fail to identify the transferee and transferor personnel who would work thoroughly from the beginning of the project till implementation. · The dissemination model: This approach makes a suggestion for the diffusion or dissemination (distribution) of the significance of technology and innovation. · The tax environments may be unclear. 9.com/doc/82954399/Om-0018 59/87 . · They may do not have good education and training institutions to improve skills. · They may have limited foreign exchange facility. who focussed his practice on personal injury and wrongful death law). namely. · The mechanisms to protect intellectual property may be insufficient. As per this model. · Adoption of a webcache. · Transferee may do not have encouragement systems to learn and assimilate new technologies.com/search?q=cache:http://www. A disadvantage of the BarZakay model is that the activities. · The physical infrastructure may be poor. terms. They are · The Bar-Zakay model: This model is based on a project management approach. (True/False)? 3. to the possible users. Technology transfer may initiate as an answer to the problems of others. who will transfer the technology. This model believes that an expert.

· Set up and implement a guidance and education plan for the workers who are probably working in the technology transfer project according to the consultation with the suppliers of technology. · The Dahlman and Westphal Model: Dahlman and Westphal introduced a process on the basis of their experience of work carried out in the Republic of Korea. Provide external support to strengthen the interdependence between the transferor and transferee. and other aspects related to construction and infrastructure development. Develop scheme and plan to attain decisions regarding location and prepare a business case which includes good resource consideration. to correct the mistakes. 2. the transferor develops the technology transfer project where transferee is not involved much. · The need of objectives and decision points to strengthen the activities. this is not true in many developing countries. As per this model. particularly during the first few years of operation. On the other hand. Thus. speedily industrialising countries. The major disadvantage of this model is that it assumes that the transferee has the access to high level engineering skills. Adapt the process and product (if needed) and strengthen the production schemes to suit basic prerequisites.scribd. which are: · Perform pre-investment feasibility study to gather information and perform a technoeconomic study to ascertain project potential. 3. · Perform basic engineering studies which include the preparation of layouts. · If the measures taken are not accurate to ensure adaptation of the transferred technology. the transferee is involved in the fifth and sixth stages. process flow diagrams. · The initiation of production doesn·t mean that a technology transfer project is completed.com/search?q=cache:http://www. Improve the product technology transferred by means of local skills. the technology transfer is said to be unsuccessful. Construct the plant and start-up production. · Perform an engineering study in detail which includes the preparation of a civil engineering plan in detail that includes specifications based on manufacturing and installing and identify the peripheral technology required for the effective technology transfer. · A careful feasible study on the technology transfer projects has to be done before beginning the project since those projects requires serious resource commitments. ​ · The Behrman and Wallender Model: Behrman (an American playwright and screen writer) and Wallender (fictional inspector of books and film) introduced a process for international technology transfer which is more applicable to multinational corporations. · Select the suppliers for equipment and contract out services to assemble the plant and mechanism and plan for the co-ordination of the work among various parties. 6.googleusercontent. Also it pays less attention for negotiation and postimplementation stages. which are: · The transferee must involve in the process of technology transfer project from the beginning. which are: · A sequential process is required to study the technology transfer. Decide the product design technologies to be transferred. which are: 1. · Build up trouble-shooting skills and start up activities to solve design and operational issues as they come up. As per this model. which helps in understanding and improving product and process technologies. we can divide the process into seven stages. · Transferees must develop necessary good engineering and project management skills without which the process of technology transfer cannot be handled webcache. or even to terminate the projects at any point of time. This model emphasises the involvement of the transferee at all the stages during planning and implementing process of technology transfer project. it may refer to as an improved model over Behrman and Wallender model. during the first three stages. based on the feasibility study performed.com/doc/82954399/Om-0018 60/87 . · Construct the plant. 4. thereby emphasise dependency. 5. The only disadvantage of this model is that. Specify details of the plant to be designed for production. The Behrman and Wallender model helps us to learn some facts. 7. The Dahlman and Westphal model helps us to learn some facts. and other design specifications of the plant and mechanism and the core technology to be transferred. we can divide the process into nine stages. during 1980.5/15/13 Om 0018 process approach to plan and implement the technology transfer projects. · The transferee must be involved in the planning right from the beginning. ​ · Start-up with operations. Since. · Perform a preliminary identification of technologies required. This emphasises the technology transfer does not completes with the start-up of production unless there is a mechanism to foster assimilation the project is rejected to have delivered.

AEC (Atomic Energy Commission). and ultimate success to any technology transfer project. · Exchange rates. Which are: · Carry out a study on pre-investment and feasibility. · The technology that has to transfer. government departments. It includes: · Physical and organisational infrastructure. consultants. and global. · Investment background. -Operating policies. ​ · Technological status. they are sub-regional. · The environment in which the transferor is working. · Trade negotiations. · The Schlie. It can be seen that a wide spectrum of participants in the total economy are technology users. -Attitude and obligation to the transfer project. These seven elements include: · The transferor. · Status of intellectual property protection government. and larger environments. This model helps us to learn some facts. The way they establish themselves can change with respect to time. · We have to choose the technology transfer mechanism based on a sophisticated understanding of the other six elements. · Stability. · Initiate commercial production. · Commission and include ample of the workforce. -Financial status. -Business point of reference (inward versus outward). Chantramonklasri introduced the model having five phases. · Attitude and obligation to the transfer project. universal model for technology transfer process.2. such as. The seven elements of this model are suitable even in today·s business environment. and so on. · Business point of reference (inward versus outward). who buys the technology. financial institutions. This model describes seven elements which manipulates the planning. regional. · The Chantramonklasri Model: Chantramonklasri further improved the Dahlman and Westphal Model.googleusercontent. The transferor environment characteristics can manipulate the effectiveness of the transfer process. · Initiate the production of principal goods based on the developed engineering specifications and designs. We can call these agencies as the bridging agencies as given in figure 9. research companies. ð The environment in which the transferee is working.com/doc/82954399/Om-0018 61/87 .3 Other models After discussing about traditional and qualitative models of technology transfer.scribd. This environment has three layers. such as.com/search?q=cache:http://www. Radnor. industries. India and China. · Develop engineering specifications and design based on the study on feasibility. and R&D organisations. ​ 9. who sells the technology to the recipient. The only disadvantage of this model is that it does not offer any guidelines to a transferee that what it should do. implementation. · Research and diffusion model: As per webcache. Factors that influence the success of technology transfer project in the larger environment are: · Political relationships between countries. then it will affect the cross-border and international technology transfer even if the immediate operating environments of the transferor and the transferee are favourable to the technology transfer. · Bridging agencies: There are some agencies because of whom the transfers of technology take place. Though the first two phases are valid. If the layers of the larger environment will not uphold. · Availability of skills. agencies that are very large and technically oriented. we will now discuss about some other famous models of technology transfer. and Wad Model: Schlie introduced a simple. This model may be valid in technologically developed countries. and so on. · The transferee. ð The larger environment that surrounds both the transferor and the transferee. comprises of government departments. but not in other smaller developing countries. · Balance of trade.3. venture capital companies. ISRO (Indian Space Research Organisation). It includes: -Among others.5/15/13 Om 0018 effectively. transferor. The transferee environment characteristics can manipulate the absorptive capacity of the transferee. various changes that had taken place and are taking place in the worldwide business environment today is helpful for the managers of technology to develop good insights into the transferee. · The transfer mechanism chosen for the transfer the preferred technology. Figure 9. · Relative technological levels. · Financial status.2: Bridging Agencies The users of new technologies include industries both from the private as well as the public sector. which are: · When planning and implementing a technology transfer project. it is not clearly mentioned whether the required principal goods can be produced within the transferee environment unless the transfer arrangement also includes the transfer of technology needed to manufacture these. Constancy (Stability).

the function of the agent of technology transfer (in addition to self-education or self-recovery of elements of technology transfer) is somewhat limited. Here the function of transfer agent is only to interpret or communicate. there is no straightforward communication. This section will familiarise us with the different modes of technology transfer. Some of the forms of passive technology transfer are television repair manuals and how-to-do-it guides-for home repairs.5 (b): Technology Transfer (Semi-active Mode) The technology transfer agent (consultant or technology expert) screens available pertinent information for product development. the transfer activity is in the middles of the other two modes. that is.1: Connecting Technology with Users TECHNOLOGY TRANSFER MODES webcache. in technology transfer. known as semi-passive mode. · Active mode: The active mode of technology transfer takes forward the procedure to an actual form. 6. The initiation of production doesn·t mean that a technology transfer project is completed. Behrman and Wallender introduced a process for _______________ which is more applicable to multinational corporations. In semi-passive mode. The horizontal transfers occur normally between the firms in various countries. if the transfer methods assist the possible user in its application. in table 9.5 (a).com/doc/82954399/Om-0018 62/87 . that is. technology transfer is also known as knowledge transfer. mainly because of the competition and advancement or near advancement of technologies. The modes of technology transfer refer to the transferor·s role in the application of technology to solve the user·s problem. Figure 9.1. · Semi-active mode: In this mode of technology transfer. as illustrated in figure 9. acts as a companion of problem solving.5(b). thousands of products are produced and consumed from passive mode. The technology transfer is called active. from an R&D organisation to a firm. ​ Figure 9. if the transfer methods offer the technology to the possible users without assisting them in their application.4: Problem Solver Model Self Assessment Questions 4. such as by a report or oral presentation. He will not actively get involved in the application of the technology. The vertical transfers are done mainly inside the country and the recent technologies may frequently need additional efforts in terms of setting up commercial viability. and then makes arrangements for the technology diffusion to other industries by knowledge transfer. ​ Figure 9. Let us have a look at some examples of technology transfer modes. In active mode. and relevant users or needs.3. or shows the applications of the technology for the apparent use. Such a transfer has huge risk. (True/False)? 9. Basically technology transfer is categorised into passive and active modes. Even though.5(a).3: Research and Diffusion Model This is usually a slow process. as given in figure 9. In this mode. It is illustrated in the figure 9. 5.5/15/13 Om 0018 this model. · Passive mode: The technology transfer is called passive. along with their technology transfer modes.com/search?q=cache:http://www.4 Technology Transfer Modes Previous section familiarised us with the traditional and quality models developed for the technology transfer process. the transfer process goes after the interpretation of the transmitted information. Figure 9. · Problem solver model: As per this model.4. You can see this in figure 9. the technology transfer is from one firm to another.scribd. · The published literature is the most well-known and widely used form of passive technology transfer.googleusercontent. In vertical technology. there may be an intermediate mode also. However. active and passive modes. · Horizontal and Vertical technology transfer: In horizontal technology transfer. Table 9. In passive mode. Let us have a look at some technology bases. the simplified diffusion of technology from an agency that is mission-oriented assists the technology development with the intention of its mission. the transfer of knowledge.5 (a): Technology Transfer (Passive Mode) As per figure 9. suggests the user how to use the technology. the generation and transfer of technology. the technology transfer is done. there is no direct communication or assistance from the originator of the technology. to the producer of finished consumer item. the technology transfer agent or consultant will be fully involved and acts as a bridge in technology transfer from technology source to entrepreneur or implementing agency. The ______________ must involve in the process of technology transfer project from the beginning.

either the technology must adapt different culture or the people who use the technology must adapt to the culture used in webcache. They could not find the solutions even after the investigation of the problem. It conveys you the concept of cultural dimension. Self Assessment Questions 7. A program of ten years for the transfer of built-up and market technology had failed. So. Several years ago. and so on. The __________ mode technology transfer carries the process through to an actual. The buses produced were identical with those successfully built and marketed in foreign country. the problem was with the bus and not with the customers. and required excessive maintenance and repair. The advancement of the technology depends on the combined effect of transfer and diffusion. electric power stations. 9. · The abilities and inspiration of the supplier enterprise. So. and diffuse the technology from an individual to an enterprise.5/15/13 Om 0018 TECHNOLOGY BASE USERS / NEEDS Traffic Safety Engineering Communications Emergency Health Care Crime Prevention Public Transportation Medicine Electronics (Passive or Active) Drinking Water Quality Energy Conservation Energy Structures Urban Construction so on. education. Actually. distribution and marketing organisation. that is. Since the vehicle was designed as per the supervision and administration of British manufacturing plant. Those creating and applying technology perform within the context of their culture. The sale of buses was dull. 8.5 Dimensions of Technology Transfer After studying about the different modes of technology transfer.googleusercontent. In our discussion. The same is true for other technologies like. It was designed to be driven in England or similar environments where repair services and spare parts will be easily available. a minibus manufacturing plant was closed in Pakistan. 9. The technology progress varies in character. But in Pakistan. · The incorporation abilities of the receiving enterprise. whether it is transferring or diffusing. refineries. mining machinery. and incorporate it into their work.com/search?q=cache:http://www. they left their program forgetting their whole experience. Technology transfer is categorised into _________ and __________ modes. We transfer technology from an enterprise to an individual. From the above concept. computerised information systems. technology is also not culture free.com/doc/82954399/Om-0018 63/87 . Mining Consumer Products Automotive ​ Medicine so on. we will now study about the dimensions of the technology transfer. whether transfer or diffusion. In ____________ approach the technology transaction takes the form of supply of complete factories and industrial plants by a developed country to a developing country. The time and resources required to transfer a given technology depend upon: · What is actually transferred? · The mode of transfer. To understand the implication of the culture. they could not maintain the building-up quality. engineering.scribd. Private Sector Industry Agriculture Chemicals Materials Computers so on. we can say that the individual is the pivotal point of technology movement. As we find difficult to adjust with the foreign culture. you must praise the variation between transfer and diffusion. the manufactured product works with the culture from which it came.

acquirement of material. it can gain trust only by providing the technology capability as per the customer requirement. In this section. unlike product transfer. Most of these qualities are considerably different or do not exist in other cultures. · Source of personal status in the work place and society. The three principal categories of technical information or know-how inherent in technological systems are general knowledge. · The relationship between performance and incentives. Usually. · Non-traceability: Since the technology is an indefinable item. production technique. technology peacekeeping troops are needed to accomplish English documentation tasks. automotive) parts. which include estimated market price. So. Technology is _________________ is from the organisation to an individual.com/search?q=cache:http://www. conflict and confrontation. These various categories of knowledge may be in the form of written fabricating or processing equipment. · Consumer participation: Technology transfer activities together with objective technology data. · The social suggestion including questionnaire. samples or demonstration along with data from public organisations as evidences with authority are webcache. Since the technology is a package (or service) type that cannot be viewed. Self Assessment Questions 10. They must be experts in international manner and language skills. culture. formulas.5/15/13 Om 0018 the technology for successful transfer. · The time management and plan as it relates to tasks and activity. · The vertical and horizontal orientation to organisational authority. international contracts skills. and so on. These covers design and blueprint of plant. we learnt about the dimensions of technology transfer process.googleusercontent. In particular. blueprints and technical control systems (along with relevant marketing and financial controls). system-specific and firmspecific knowledge. ​ · Taking initiative action for analysis value. · The relationship of fatalism and self-determination. Most recently developed technologies are embedded with ´westernµ type cultural qualities. and so on. · Product design may range from simple items to highly complex (example. negotiation. the combination of both is required for the successful technology transfer. designs of tools and fixture.scribd. annual payments. and contracts. and commercial practice that overseas customers have. Most recently developed technologies are embedded with ____________ type cultural qualities. namely. product design. · The decision making social authority structure. The technology package consists of three principal elements.com/doc/82954399/Om-0018 64/87 . · The view and appreciation of pre-emptive action to prevent future problems. including that available from developed countries. techniques for equipment maintenance and repair. As a result. However. document submissions in Korean and local governments and so on needs various documentation systems. and you might be thinking that what technology package is. You are now familiar with technology transfer. we will learn about the features of technology packages. · The techniques related to production and the layout of the plant comprises of photocopies and flowcharts. financial analysis and marketing research skills.rating and technology capability because of different language. If it is transferred without any adjustments can be referred to the result of blind luck. and management systems. inventory control. Either the technology must adapt _________________ or the people who use the technology must adapt to the culture used in the technology for successful transfer. 11. In particular. General Knowledge refers to information common to industry such as blueprint reading. industry is gaining good reputation corresponding to company credit.6 Features of Technology Package In the previous section. 9. and the technology is _______________ from an individual to organisation. tool and fixture design and fabrication. and machine loading. instructions for fabrication. quality control and testing. it shows the feature attributes of packages. they influence both the transfer and successful application of the technology. a lot of time and effort is required to find out apparent customers. sheets for process. So let us start with the definition of technology package. which includes: ​ · Indivisibility: Since there are few demanding parties. 12. technology transfer responsibilities should be recognised as technology mediation rather than being a duty domain of patent attorneys. welding techniques. and communication skills to sensibly persuade counterparts. operational procedures and material specifications. · Management Systems comprises of different plans. The qualities often include: · The problem-solving method and logic. Technology package is nothing but the technology services. technology sales data.

and so on. Schlie. and the Chantramonklasri model. especially in business matters. Behrman and Wallender model. and the issues occurring during the planning and management of technology transfer. as per the satisfaction of both individuals. drawings. therefore the ability is shifted along with the plant and equipment supply. we studied about the Bar Zakay model. including operational· and maintenance procedures and even processing know-how (typical in chemical industry). The authoritative public organisations may include the patent office. and the problem solver model. Then.5/15/13 Om 0018 essential. In qualitative models. wherein we studied about the key factors included in technology transfer.7 Routes of Technology Transfer After discussing about the features of technology package or services.scribd. Dependence between transferor and transferee. information and manufacturing know-how. we studied about the features of technology package. we studied about the bridging agencies. ability. namely.com/search?q=cache:http://www. dissemination model that signifies the distribution of technology and innovation. and Wad model. webcache. In other famous models. and operating environment and NIS issues. testing and research centres. such as. data related to performance and technical support. and the knowledge utilisation model that focuses on the effective utilisation of knowledge. · Joint ventures with the owners of the technology. The principal routes of enterprise-toenterprise technology transfer are: · Licensing or Franchise: Licensing and Franchise arrangements vary from a complete package of instructions.9 Glossary Term Description A discussion or communication held between individuals to settle or agree with. As we know that some technologies are machine-based. 9. active mode. _____________. technical assistance and training to mere permission for the manufacture and sale of a product. and they can be as effective in knowhow transfer as in industrial licensing arrangements. consumer participation.com/doc/82954399/Om-0018 65/87 . corporate capability issues. growth and revenue are very important factors that can be gained respectively without production facilities or operation funds. The manufacturing of colour TV sets in India is a classic example of this type. We also discussed about the dimensions of technology transfer. such as time. · Suppliers of materials and parts: Suppliers of materials and parts are often willing to provide a full range of technical support. Self Assessment Questions 13. Thereafter. 15. we studied about the concept of technology transfer. and difficulties in standardization. Radnor. qualitative. semi-active mode. An enterprise that has a sufficient control over a particular product or a market and manipulate prices. passive mode. equipment supplier. In traditional models.googleusercontent. The scope of the ___________ market can be widened with the help of technology transfer. and so on. The technology package consists of three principal elements namely. · Difficulties in standardisation: The scope of the corporate market can be widened with the help of technology transfer. and _____________ systems. and horizontal and vertical technology transfer. · Outright purchase: Outright purchase of turnkey plants or of the whole manufacturing and operating conditions. The manufacturers did not have a formal technology transfer agreement but had an understanding with the ____________ suppliers of materials. and some other famous models. 14. namely. indivisibility. The average of all the differences between estimation and observation over the verification sample. we studied about the appropriability model that emphasizes on promoting the use of research findings. · Equipment supplier: A variety of technical services are provided by equipment suppliers. such as licensing or franchise. Dahlman and Westphal model. _________________. In terms of market size and opportunities and overall good market expansion opportunities.8 Summary ​ In this unit. we discussed about the modes of technology transfer. 9. · Acquisition: Acquisition of the company or business possessing the technology. acquisition. We discussed about different models of technology. We also studied about the routes of technology transfer. The manufacturers did not have a formal technology transfer agreement but had an understanding with the foreign suppliers of materials and components regarding technical assistance in production. and so on. 9. technology transfer process issues. including traditional. we will now discuss about the routes of technology transfer. research and diffusion model. suppliers of materials and parts. non-traceability.

Transferred.3 Models of Technology Transfer.2 Transfer of Technology. The transfer was compelled by the scale of production. Explain the cost and feasibility aspects of ABC Company for the Japanese client. OM0018-Unit-10-Technology Assessment Unit-10-Technology Assessment Structure: 10. Define technology transfer. as well as planning and transfer of technical material.6. 2.11 Answers Self Assessment Questions 1. Refer section 9. Different culture 13. Product design. Technology transfer 2.5 Dimensions of Technology Transfer and section 9. Refer section 9. 3. 4. Cost and Feasibility Aspects For a Japanese client. continent-wide organisation. diffused 11. ´Westernµ 12. Explain the models of technology transfer and their uses. 3. Refer section 9. A chemist from Manchester held the allocation on-site. Initiation . Refer section 9. Flawless explanations of the responsibilities of the technology transfer team members during the transfer process lessen the time and effort needed for this dire step in the positive scale-up of intermediates or APIs. Turnkey 10. multi-step processes under both Good Manufacturing Practice (GMP) and non-GMP have been positively transferred. a specialist team follows a three-stage method: 1.googleusercontent.7 Routes of Technology Transfer. Explain the routes of technology transfer. True 7.3 Technology Assessment Process 10. Features of Technology Package. 2. Transferee 6. For transfer outside Switzerland. 5. Describe the technology transfer process handled by ABC Company. Refer section 9. 9.10 Terminal Questions 1. expertise in the technology transfer process will be of considerable advantage to ABC Company customers. Describe technology transfer modes. and ​ 3. Active 9.the jointly agreed process is accepted by all parties± production against conventional group guidelines.scribd. Technology Transfer Process Complex.12 Case Study ABC Company-technology transfer process ABC Company is part of a multi-site. a multi-stage manufacture process for a non-GMP intermediate was performed at ABC Company¶s Manchester site and then transferred to India in six months. 4. 3. This ranges from rapid Active Pharmaceutical Ingredients (APIs) supply for preclinical use to large-scale production of intermediates and APIs. Different 4. offering its customers the chance to attain a complete range of chemical and developed solutions from one single dealer.the options and objectives are agreed upon by all parties ± planning of technology transfer major plan. Foreign Terminal Questions 1.the process is tested in the lab and in small manufacture runs and broadly revised ± agreement with regulatory and quality standards. Corporate 15. 5. explanation of responsibilities.5/15/13 Om 0018 Negotiation Linear biasness Monopoly Indivisibility 9. Give a brief introduction about ABC Company.5 Technology Concepts Technology acquisition Meaning of innovation and creativity Innovation management 10. production technique.com/doc/82954399/Om-0018 66/87 .1 Introduction Objectives 10. A vital component in successfully transferring technology developments across language and social obstacles is common communication involving their experienced staffs. active 8. Explain the dimensions of technology transfer and features of technology package. International technology transfer ​ 5. True 3. Sign-off . With the process of the ABC Company.4 Technology Transfer Modes.2 Technology Choice 10. high potency plant in India.6 Summary ​ webcache. the production now runs in 300 kg sets to a five metric ton drive.4 Technology Leadership and Followership 10. There. Questions: 1. An additional volume growth to run a 28 metric ton drive is scheduled for the end of 2008 in India. 2. Piloting . A competent technology transfer process is the key for a successful transfer either from the customer to ABC Company or amongst the ABC Company sites. 9.com/search?q=cache:http://www. management 14. 2. Passive.

in the method of what we call the actual imaginary or the imagined.3 Technology Assessment Process As we are discussing about the technology assessment. innovation and creativity. the acquirement of certain technologies can simultaneously provide verification of membership of certain social groups.googleusercontent. but the issue of choice arises. Because we can use different types of technologies to realise an organisation·s goals. 10. indicate cherished relationships and include imaginaries about knowledge practices. so we will webcache. This eventually comes from the original ability of positing or presenting oneself with things and associations that do not exist and have never been given in any depiction. We will also study about different technology concepts used in an organisation. we studied about the different models. We will also have a discussion on technology leadership and followership. · Define technology acquisition. The technology choice in the framework of society and its creation is the idea of imaginary assumptions and are the key sources of meaning in social and cultural life. Imaginary implications can be apprehended as conscious or unconscious ________________ of human actions in the creation of meaningful and sense making ideas. innovation.9 Answers 10. Because of this balance between the assumed. Imaginary assumptions can be considered as conscious or unconscious symbolic representation of human actions in the creation of meaningful and sense making ideas.com/doc/82954399/Om-0018 67/87 . work. These implications and dominant interests are reflected in the shape and functioning of technology in imaginary practice.2 Technology Choice Let us start our discussion with the concept of ¶technology choice· used to assist in the success of an organisation. modes. In addition. In the previous unit. · Explain technology leadership and followership. and innovation management. the real and the imaginary components of these implications. The expected result is that the organisation will go for the most "appropriate" technology (AT) in this situation. and in the previous section we have discussed about the technology choice.1 Introduction Previous unit familiarised us with the transfer of technology. For example. These imaginary designs play an important role in modelling the choice of ¶symbolic representation· constituted by the world. This unit will familiarise us with the concept of technology choice. · Discuss about technology assessment process. we will study about the process. and dimensions of technology transfer. Choice of technology has significant involvement in growth and productivity of an organisation. In this unit. we can say that imaginary implications are the result of both rational technology based economic behaviour and complex imaginary struggles that emerge at various points and in many shapes by providing archives of meaning about the content of technology and its application. Symbolic representation proposes implications which require perceptions of not only the real or rational.10 Case Study 10. expertise and relations to other actors by encouraging new aspects of subjectivity. The social world is. The effective choice depends on previously decided measures for a technology·s conference specified requirements. The concept of _____________ deduces access to information on alternative technologies and the capability to assess these efficiently. Self Assessment Questions 1. constituted and expressed as a function of such a system of implications. it depends on the ability to identify and evaluate opportunities in different technologies. and innovation management. creativity. that is. These implications exist after they have been formed. Objectives: After studying this unit.5/15/13 Om 0018 10.7 Glossary 10.com/search?q=cache:http://www. in every situation. (True/False)? 10. This unit will enable us to understand the process to carry out technology assessment. and the routes of technology transfer. The technology choice in the structure of society and its institutions is the idea of real implications as the key sources of meaning in social and cultural life. This is an imaginary field which individuals and institutions create in order to maintain and show ¶representations· and ¶projections· of possible alternative realities and ideas of possible fate related to the content and application of a technology. features of technology package.scribd. different phases of technology assessment process. the technology and its choice encloses not only the preferred technology based economic implications of the technology itself. and institutions. The use of technology is always related to an objective. you should be able to: · Describe technology choice. In the perspective of technology choice.8 Terminal Questions 10. 2. 3. but also the engraved imaginaries of technology in society. and especially the choice of its organisational symbolism as well as the ends to which it supports ¶functionality·. such as technology acquisition. but also an additional imaginary ​ component.

googleusercontent. and the relevance in which the data gathering occurs.5/15/13 Om 0018 now discuss about the process of technology assessment. we identify the purpose of the assessment of technology. their needs. and reporting. Identification of the purpose of assessment: This is the third step of technology assessment process. and the remaining three steps are covered under the ¶reporting results· cycle. In this step.1. ð Describing the aim of the study and its limitations. and the resources that are required. divide. data gathering. and making decisions about the procedure to organise. This analysis of data covers the identification of patterns in the data. sources of the data to be gathered. 4. in which. and input from the stakeholders. we identify the stakeholders. compare. These factors are: ð Creating a report content for the audience. Identification of the intended uses of the assessment: In this fourth step of technology assessment process. We can say that the process of technology assessment comprises of recurring cycles of planning. 5. gathering data. We can define intended uses as the particular ways in which the results of the assessment will be applied. Instructional technology assessment involves recurring cycles of planning. in terms of the function or intention or purpose of the technology. we must describe the technology we are going to use. method(s) to be used for research. Making conclusions and recommendations: After analysis of gathered data. And. that is. Technology assessment has been defined as a form of policy research that assesses short-term and long-term results of the application of technology. the types of data existing.com/doc/82954399/Om-0018 68/87 . and time duration for the accomplishment of the tasks. which comprises of the identification of resources existing for the implementation of the plan. We guide these decisions by the questions being asked. 2. Data gathering comprises of the indicators. 5. sixth step is covered under the ¶data gathering· cycle. Self Assessment Questions 4. Data gathering: This is the sixth step in the process of technology assessment. We can classify these three cycles into nine steps. In this step. Identification of their needs will help us to aim attention at the technology assessment process. and their requirements. gathering data. Analysis of data: After gathering the data as per the assessment plan. Technology assessment has been defined as a form of policy research that examines short-term and long-term ____________ of the application of technology. and reporting. 6. we report the results of the assessment. This will help us in determining the procedure of conducting the assessment.1 explains the technology assessment process. Description of technology and context: In the first step of technology assessment. the recommendations we made are the actions for consideration that are based on the conclusions we made. Instructional technology assessment involves recurring cycles of planning. and reporting results. we create a plan for the technology assessment. Reporting results: This is the final step in the process of technology assessment. Figure 10. Whatever conclusions we made. 9. This plan is an elaborated description of the procedure of implementation of the assessment. so that we can take necessary steps such as collection of baseline data. so that we can get good results. its possible affects. information to be gathered. It is good to plan the technology assessment at the same time we coordinate the technology introduction. We must consider some factor while reporting the results. 3.scribd. interrelate. In this step. but go beyond simple verifications about efficacy or interpretation of the proof gathered. ð Listing both the strengths and weaknesses of the technology. description of the roles and responsibilities of the stakeholders those were identified in step 2. and methods to use. we gather data as per the assessment plan. as given in the figure 10. Creation of an assessment plan: This is the fifth step in the process of technology assessment. we made conclusions and recommendations wherever needed. either by ​ isolating the significant findings (analysis) or by combining information sources to reach a larger understanding (synthesis). (True/False)? webcache. 8. ​ Figure 10. and display information. analysis of that data takes place.1: Technology Assessment Process 1. connected to the proof gathered and verified against agreed-upon standards set by stakeholders. we identify the intended uses of the assessment. 7.com/search?q=cache:http://www. Identification of stakeholders and their requirements: In the second step of technology assessment process. information quality and quantity. You must note that the first five steps are covered under the ¶planning· cycle.

com/search?q=cache:http://www. an webcache. The job of followers is to make the work easier for someone to lead. in which a firm unambiguously chooses not to be first on innovations. As well as disguising material data. Even at the most senior levels in firms. Sometimes. Organisations tend to view technological leadership mainly as a vehicle for achieving demarcation. Even as technological leadership is sometimes considered in terms of product or process technology. On the other hand. First-mover advantages and disadvantages take place most often in the perspective of technological choices.4 Technology Leadership and Followership After discussing about the process of technology assessment. The organisations can choose to be a technological leader or follower in a significant technology on the basis of three factors: · Sustainability of the technological lead: The extent to which an organisation can hold its leadership over competitors in a significant technology.5/15/13 Om 0018 Activity 1: Suppose that you are the manager of a company and the company is going to conduct a technology assessment process. this often means that the project team members fail to give assurance. In case you might have observed that actually sometimes the process is reversed. people making it difficult for someone to lead. If a technological leader is the first to implement a new lower-cost process. In industry. the issue is much broader. including organisations that ignore technological change on the whole. · First-mover disadvantages: The disadvantages an organisation suffers by moving first rather than waiting for others.googleusercontent. It is also possible to have more than one technological leader in an industry because of the various technologies involved and the different types of competitive advantage required. while acting as a follower is considered the method for achieving low cost. · Concealment: The leaders can make good decisions only when they have the information they need. The most important issue an organisation must address in technology strategy is whether to look for technological leadership. Large disadvantages of being a first mover may eliminate the interest of taking the leadership role even if an organisation can sustain its technological lead. · To offer useful suggestions skilfully without undermining the other person. Technological followership should be a meaningful and dynamic strategy. the follower can become the market leader. All three factors cooperate with each other to determine the best choice for a particular organisation. even when you do not fully understand the whole framework. Or. then the leader becomes the leading low-cost producer in the market. We will focus our discussion at the strategic choice between revolutionary innovation in any value activity and waiting for others to revolutionise. if a follower can learn from the leader·s mistakes and modify product technology to meet the needs of customers better. The concept of technological leadership is relatively clear as an organisation strives to be the first to introduce technological changes that support its basic strategy. Similarly.scribd. · To accept a brief. and are engaged in another job. Excellent followership is necessary to business success. there are situations when it is crucial to exhibit the skills of followership which are: · To listen politely to someone else·s idea. all organisations that are not leaders are viewed as technological followers. ​ · To take directed action in collaboration with others. · First-mover advantages: The advantages an organisation has from being the first to implement a new technology. Where there are leaders there must be followers. What steps would you follow to effectively implement the process? Hint: Analysis of data. especially at senior and middle executive levels.com/doc/82954399/Om-0018 69/87 . firstmover advantages may transform an initial technological lead into a sustainable competitive advantage in another place though the technological lead itself disappears. we will now discuss about technology leadership and followership. In large organisations we frequently notice that. 10. such as unspent budget. but their importance for competitive strategy formation goes beyond technological strategy. This common-sense fact is strangely ignored by much of the management content. we are all followers at certain times. It is generally said that we are all leaders. Following are the observations: · Absence: Nobody can lead if the team itself is not there. and understand it. because we all have to take up leadership roles at certain times. They answer the most prevailing question of how timing transforms into competitive advantage or disadvantage and into entry and mobility obstacles. Leadership can be developed in technologies involved in any value activity.

we have to differentiate between two levels: one is the general concepts of the nature of technology (¶concepts of technology·) and a second level dealing with the hypothetical concepts that are used in technological action (¶concepts in technology·). It occasionally happens that people say ´yesµ in the conference room. so that the follower is present and dedicated when required by the team.scribd. the understanding of our technological world is also a necessary component of technological knowledge.5/15/13 Om 0018 uncooperative follower will mislead with their own opinions and concerns.googleusercontent. and so prevent the leader from handling real potential issues. so that a leader can act on the basis of full information. You are working on a new project under your project manager. This is mainly because the development costs are often disregarded against the application for which it webcache. 10. It also includes the less popular process of seizing implicit knowledge which means understanding and codifying knowledge that already exists within the organisation. as well as innovatively develop new technologies. Self Assessment Questions 6. So. we studied about technology leadership and followership which helped us to understand the importance of leaders as well as followers. Internal technology acquisition is the outcome of technology development efforts that are instituted and controlled by the organisation itself. and then go out and do some other job. financial. A skilful follower communicates ____________. the resulting technology will be modified to meet the company·s need. But in order to address the need for technology concepts for technological literacy in modern society. This talent is specifically important in a business where someone might have several managers. Studies in design methodology have revealed that design processes are a combination of knowledge about concepts and process knowledge such as technical. · Inaction: A leader always acts through the help of others. Here. but is not properly understood or widely used. A skilful follower communicates sincerely.com/search?q=cache:http://www. situational and strategic knowledge. This ability of followers to stabilise and focus is a talent that makes leadership possible. social and environmental aspects. This makes leadership more difficult. Internal technology acquisition alternatives have the benefit that any development becomes the special asset of the organisation. as was practised. is a part of several project teams and needs to manage personal commitments too. so that a leader can act on the basis of full information. In other words. Recognising the role of non-realistic aspects in technology does not mean denying the fact that theoretical concepts also have a significant role. Though. technology education must be more than the concepts and learning of handicraft skills. This only works if the followers do what they are supposed to do. In addition. including organisations that ignore technological change on the whole. Now we will study about the technology concepts used in an organisation. The quality of life sustained by a society is directly and positively related to the level to which people understand and efficiently use existing technology.5. What are the skills you should develop and follow to succeed in the organisation? Hint: Listen politely. Technological followership should be an insignificant and inactive strategy in which a firm unambiguously chooses not to be first on innovations. It means that a more hypothetical component must be added to the practical dimension that already exists. it is evident that the skills of followers are also very essential. 8. (True/False)? 7.5 Technology Concepts ​ In the previous section. Sometimes all organisations that are not leaders are viewed as ________________. Internally-evolved technologies usually are costly than those acquired externally. but also concepts of technology need to be trained and learnt.com/doc/82954399/Om-0018 70/87 . internal development also has problems. while considering the key scientific. 10. Internal acquisition requires the existence of a technological facility in the organisation. This facility could vary from one expert that understands the technological application effectively to manage a project conducted by an outside research and development (R&D) team to a full-fledge R&D department. Activity 2: Suppose that you are in a multi-national company. The development of technology usually takes more time than acquiring and implementing previously existing technology from external sources. However. it is clear that conceptual knowledge is a crucial component in technological design and problem solving processes. not only skills. a skilled follower balances the inconsistent demands of line management and project management. and work and personal life. In addition.1 Technology acquisition We will first discuss about technology acquisition. In a busy corporate world.

the effect on production and technological systems being to preserve and strengthen established designs. External technology acquisition is the process of procuring technology developed by others for use in the organisation. which delivers value to a community. are facing radical transformations like never before. · Revolutionary innovation: Innovation of this kind disturbs and provides established technical and production capability outdated.2 Meaning of innovation and creativity Businesses. creativity is the generation of the idea in the first place. which are: · Architectural innovation: Innovation of this kind discusses the foundation ingredients of product and process and creates the technical and marketing plans that will guide successive development. function. it is not suggested that concepts are displayed for merit. The selection of the external acquisition channel generally depends on the channel that has the required technology accessible. even when the result is deficient of value. Supposing the technology is available from different sources. especially during strategic planning. This allows the brainstorm expert the unlikely comfort of asserting success in generating many creative ideas. and increasing competition. it is also a fact that the organisation may not have the capability to develop or even manage the development of a technology internally.com/doc/82954399/Om-0018 71/87 . We can say that creativity and innovation are the main components to the success of a business. to establish existing skills and resources. The acquiring organisation must understand that this adds extra costs. Creativity is an important part of innovation as it is the point of exit. Let us have a look at some features of creativity. but yet it is useful to existing business and customers. If implementation is setting an idea into practice. It is the development of an idea and its execution where the team is required.googleusercontent. and the existence of new types of technology. those selling technologies usually do not have to recover the full production costs in their selling price. · Market place innovation: Innovation of this kind opens up new market opportunities with the help of existing technology. Several driving forces to this transformation included a speedily broadening market. and when developing new products and services. Creativity is not something where a person who has never worked in that area webcache. The effect of these changes is. and lesser risks. almost all technologies available from external sources were originally developed for various other applications. Nevertheless. or even the acquisition of an organisation that has the required technology. The importance of fairly elusive things like long-term relationships and public reputation must be considered along with more technical issues like the robustness of the technology to the requirement. creativity is the act of generating an idea and is an essentially individual act. In either case. External technology acquisition generally has the benefit of decreased cost and time to carry out. One of the big concerns for many organisations is how to create more and better ideas and how to become more innovative. · Creativity has little implications with the inspiration out of things. It is significant to take into account all the factors before making this decision. We can also use innovation to explain a new product or service. is the ability to imagine new concepts. comparatively. for-profit and non-profit. ​ External acquisition can take the shape of licensing.5. time. Thus. ​ · As opposed to common belief. in brainstorming sessions. and price. the choice becomes a corporate decision where costs and advantages of each choice are compared and the best overall alternative is selected. And. diversity among consumers.5/15/13 Om 0018 was originally developed. buying equipment with embedded technology. the key elements of the definition are originality and value delivery. We can define innovation as the process by which a value is made and given to a community of users in the form of a new solution. We will now briefly discuss about four kinds of innovation. outside acquisition normally must comprise an aspect of adaption to the acquiring organisation·s application. which is the result of the innovation process. 10.scribd. Creative knowledge and innovation are mostly helpful during strategic planning and in ¶product and service management·. investment in a collaboration which has a technology development function.com/search?q=cache:http://www. and risks to the project. Therefore. It is important to remember that creativity does not bear the burden of value creation that innovation does. On the basis of this reason. Creativity. · Regular innovation: Innovation of this kind entails change that is created on established technical and production capability and that is applied to existing business and customers. quality issues.

arts. followers must find means to reduce the leader·s power for the betterment of the organisation. it depends much more on natural motivation. webcache. 11. Creative knowledge and innovation are mostly helpful during ____________ and in Product and Service Management.scribd. it involves employees at every level in contributing creatively to an organisation·s development. Followership requires a lot of skill. implement and capture. though. creative people spend their whole lifetime acquiring and cultivating their knowledge base ² be it music. This unit also enabled us to understand the concepts of technology leadership and followership. patience. Self Assessment Questions 9. Followers need to remember that their mindset and behaviour affect the quality of their leaders· performance. In fact. A pulled process tries to search areas where customer·s requirements are not fulfilled. we understood the concept of technology choice. and then concentrates development efforts to find solutions to those requirements. choose. The main priority of innovation management is to make the organisation able to respond to an external or internal opportunity. it is not possible for R&D to be effective. Sometimes. Innovation processes can be stretched to any extent through development. The lifecycle of new products is gradually getting shorter as increased _____________ forcing organisations to reduce the time to market. We also analysed the different technology assessment phases involved in the proper functioning of an organisation. Innovation executives must therefore reduce the development time.3 Innovation management Let us now briefly discuss about innovation management. on people being enthusiastic. both problems can be solved.6 Summary In this unit. which provides access to information on changing technologies and the capability to measure them efficiently. that the company has access to. Appropriate action by followers often increases the leader·s ability to enable others to perform his or her work. The existing structure of knowledge is as crucial as the original idea.5. · However. processes or products. knowledge of both the marketplace and the technical problems are required. The process can be seen as an evolutionary combination of organisation. technology and market by recurring series of activities such as search. We can define ¶innovation management· as the process of managing processes in innovation. To succeed with the help of either method. knowledge. Significantly. Creativity is based on a concept to a particular structure of knowledge. without sacrificing quality or meeting the requirements of the customers. and design. such as. and marketing. there must be followers. and use its creative capabilities to introduce new ideas. In fact. We can use it for creating and executing both product and organisational innovation. sports. Which type of innovation defines the basic composition of product and process and establishes the technical and marketing plans.5/15/13 Om 0018 suddenly gets an excellent idea. The lifecycle of new products is gradually getting shorter as increased competition forcing organisations to reduce the time to market. ​ 13. Technology assessment is a type of strategy research that examines short-term and long-term consequences of the application of technology. Deciding on the appropriate course of action may be both difficult and risky for the follower. creativity may be well-organised.com/search?q=cache:http://www. motivated and knowledgeable. What innovation management processes you would follow to check the viability of the product? Hint: Pushed process 10. It is a true fact that where there are leaders. Innovation management comprises of a set of tools that allow managers and engineers to work together with a common knowledge of goals and processes. By applying suitable innovation management tools. Technology leadership goes beyond managing the day-to-day logistics of a strategic tech planning process.com/doc/82954399/Om-0018 72/87 . Without suitable processes. (True/False)? 12. innovation management is not referred to R&D. We also studied different technology concepts. Internal acquisition requires the existence of a _______________ in the organisation. 10.googleusercontent. Activity 3: Assume that you are the manager of a company. By creating multi-functional development teams. comprising of engineers and marketers. management can activate and deploy the creative efforts of the whole work force towards the constant development of an organisation. mathematics. 14. The development of technology usually takes less time than acquiring and implementing previously existing technology from external sources. and initiative. production. The company has come up with a new product. Which are the two levels of technology concepts? 10. A pushed process depends on existing or newly invented technology. and tries to find cost-effective applications to use this technology.

leaving ABC·s system without a clear source of support. Refer section 10. USA. organisations define technology solutions that don·t fully align with their requirements or select uncertain. As ABC webcache. Innovation is related to performance and growth through improvements in efficiency. samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users. As of December 2009. 5.com/doc/82954399/Om-0018 73/87 . Unfortunately XYZ. and many other energy-related products and services to customers. with the help of packet radio technology. Architectural innovation 14.634 and 233. There is one other confusing factor.5 Technology Concepts. For decades. 10.8 Terminal Questions 1. creativity. 10. was acquired by some other company.9 Answers Self Assessment Questions 1. Due to improper planning. competitive placement and market share. Something visible that by association or convention Symbolic representation represents something else that is invisible. Refer section 10. 6.scribd. Minnesota. Explain the meaning of innovation and creativity. cultural. One output was a Telecommunications Assessment document that was elaborated and systematic. and the allocation and transportation of natural gas. and innovation management. which communicate via radio transceivers over power line carrier (PLC).com/search?q=cache:http://www. Write a short note on innovation management. that is. False 4. 2. Strategic Planning 13. First-mover advantage or FMA is the advantage gained by the initial occupant of a market segment. The system employs 967 meters. Refer section 10. First-mover advantage 10. and Illinois.10 Case Study Company Profile ABC Company is one of the leading suppliers of electric and gas energy and equipments in the United States.2 Technology Choice.941 retail customers. True 6.7 Glossary Terms Description Appropriate technology (AT) is technology that is designed with special consideration to the environmental. social and economical aspects of the community it is intended Appropriate technology for. Briefly explain the technology concepts. Refer section 10. knowledge.googleusercontent. List and explain the steps involved in technology assessment process. Briefly describe the concept of technology choice. 5. Symbolic representation 3. Refer section 10. innovation. ABC Company also offers steam services. the original manufacturer. it supplied electric and gas service to approximately 525. Most new meters are serial. False 7. Gradually. Creativity is about coming up with ideas while innovation is about bringing ideas to life. Technological facility ​ 11. Technology acquisition can be a complex. but it is not right. Concepts of technology and Concepts in technology 10.5 Technology Concepts. The company was established in 1917 and is based in Texas.5 Technology Concepts. meters began failing and replacement parts were needed.5/15/13 Om 0018 technology acquisition. and other internal purposes. profitability. the fact that the meters use PLC technology to interact directly with the radio. competition Terminal Questions 1. 4. A recent serial interface or any other way to interact with the radio transceivers was required. We generally use the words "creativity" and "innovation" identically.4 Technology Leadership and Followership. methods of ​ manufacturing. Write a note on technology leadership and followership. 3. Sincerely 9. It normally adds value by changing old organisational customs and practices. Refer section 10. Challenge: ABC Company has nearly one million electric customers in Texas. The company engages in the production and allocation of electric energy. The transceivers interact with one of 27 gateway sites in a 9600baud peer-topeer network. time taking process that requires thoughtful strategic planning. Technology choice 2. 3. Technological followers 8. untested solutions. ethical. fault detection. quality. ​ Solution: Alliant turned to another company MNP for help developing requirements and reviewing technology. 4. 2.3 Technology Assessment Process. ABC Company has used a feeder monitoring system from XYZ to track power distribution for load analysis. Consequences 5. False 12. Technology transfer Technology transfer is the process of sharing of skills. 10. 6. technologies.

An early member of the MNP consortium. 11. subjective opinions to select their technology path. and innovation is the change in technology. This unit will enable us to understand the relation between technology and innovation. That architecture is part of an international industry initiative to develop frameworks for the next generation of energy delivery. ABC contracted with MNP consultants for help and training.Based Organisations. · Describe the process of technology-based innovation. First. There was no established. it takes the confusion out of the process. leadership and followership.8 Summary 11.Managing Technology ² Based Innovation Structure: 11. Second. The Technology Assessment Methodology also discusses requirements not generally included by use case scenarios. Systems engineering. We will also discuss about management of technology-based innovation.11 Answers 11.com/doc/82954399/Om-0018 74/87 . Technology Assessment Methodology. exact technique to assess the alternatives. but in reality they work together.7 Measures for Building High-Performing Innovative Technology.9 Glossary 11.1 Introduction Objectives 11. · Analyse the measures of innovative performance.4 Measures of Innovative Performance Factors Principles Measures 11. ¶innovation management·. technology choices.scribd. namely. · Illustrate the characteristics of innovative work environment · List the key areas of management focus for productive innovation. We will also analyse the different phases of the process of technology-based innovation. MNP·s Technology Assessment Methodology steps into that gap. the manager of Technology Development. which maps those requirements to available technology. Use cases which capture the requirements. It provided a framework to show which technologies matched up with functional and non-functional requirements. the process of evolving requirements and executing a technology review has served useful purposes. · Analyse the measures for building high-performing innovative technologybased organisations. Questions: 1) What was the problem faced by the ABC company (Hint: Failure of support system) 2) How did the company overcome the problem? (Hint: MNP·s Technology Assessment Methodology) ​ OM0018-Unit-11. MNP used the following technology assessment methods to solve the issue: 1. and how it is implemented in an organisation. suggested the project could benefit from the principles of the MNP architecture. finally we will analyse the measures for building high performance innovative technology based organisations. advantages have leaned heavily on vendor fact sheets and informal. and systems used to convert resources into products.Managing Technology ± Based Innovation Unit-11.2 Innovation and Technology We have already discussed about ¶technology· and ¶innovation· in the previous units. ​ In this unit.3 Process of Technology . processes. Note that when technology and innovation collaborate they give rise to technology-based innovation called as ¶technological innovation· which is widely used in the corporate world. 11.12 Case Study 11.5 Characteristics of Innovative Work Environment 11. Technology comprises of the methods. Objectives: After studying this unit. Benefits: Some time back. In spite of the deferment. We can define diffusion webcache. we can say that technology and innovation are measured as two separate items. On the basis of previous discussions. We also studied the meaning of innovation and creativity and an important concept of technology assessment. the resulting evaluations become valuable in many ways. we will discuss about innovation and technology and their relationship.1 Introduction By now we are familiar with the different concepts covered under technology assessment. we will illustrate the various measures of innovative performance and also the characteristics of innovative work environment. 2.6 Key Areas of Management Focus for Productive Innovation 11. 3. this translates the findings from the first two steps into a design for the entire system. and also technology acquisition.Based Innovation 11. In this unit. such as. you should be able to: · Explain innovation and technology.2 Innovation and Technology Innovation ² Technology relationship Technological innovation and management 11. And.10 Terminal Questions 11.googleusercontent.com/search?q=cache:http://www. The success of a technological innovation depends on the diffusion of the innovation to those who can use it effectively. The MNP·s Technology Assessment Methodology also helps when developing a ´nice to have listµ with which to approach vendors.5/15/13 Om 0018 formed a team to address the issue. and between technology-based innovation and management.

a key portion of complexity lies in the systemic nature of current industrial webcache. Undoubtedly. when: · Adequate numbers of customers are using the innovation to pay back the amount used to develop it. and cheaper products and services that their customers need. Let us now study how technology-based innovation is related to management. which can be profit generation. innovation. The management of technological innovation (MTI) is. an essentially important activity. thus. Second. Given the various technological opportunities and types of innovations from which organisations can potentially choose. it is desirable to know which innovative activities and technologies are most clearly related with improved competitiveness and growth. The diffusion process is complete. and in providing relative and absolute advantages. service. Competitive advantage can be defined as the ability to design and deliver things more cheaply and better. 11. allowing the constant creation of additional customer value. growth. · Product innovations or process innovations that are not related to the use of Internet-based technologies. in different situations. are mediated by innovative activities that result from the adoption of these technologies. We can define the process or product innovation as the introduction of a good product or service that is latest or significantly developed with respect to its features or intended uses. or increased employee compensation and job security. the performance parameters can vary across different types of innovation. First. The performance significance of new technologies.com/search?q=cache:http://www. This hypothetical structure serves as a guide for the experimental investigation and understanding its results. to exploit the results of advancement of technology in the most productive way. relative dimension can be referred as the competitive advantage derived from the activities of organisations compared to those of their competitors. policy makers. Many organisations have ​ introduced technology management. we are clear about the relationship between innovation and technology.5/15/13 Om 0018 as the spread of a new idea such as product. for better returns to the owner or supplier of technology. not all new technologies and innovations are successful. We can develop a hypothetical structure that helps in analysing the relationship between technology.com/doc/82954399/Om-0018 75/87 . such as information and communication technologies (IT). Organisations can be successful in market competition when they offer the latest. Perhaps. technology. absolute dimension says that there has to be a market for what the organisation does. technological innovation will become the main priority for competition in the twenty. and researchers. 11. to offer more competitive products and services to the market. The management of technology focuses on maximising the cost-effectiveness of investments in technology development and eventually contributing to those organisations· value.1 Innovation ² Technology relationship The importance of new technologies and innovations for competitiveness and growth is a platitude among managers. In addition to the fundamental complications of many products.2 Technology-based innovation and management The challenge of management in business organisations is to develop and remain competitive in the market. employment development. increased market share. We can evaluate performance in terms of turnover growth. Moreover. Technology diffusion promotes process of technology transfer by taking innovation on broader scale.googleusercontent. This enables the organisations to meet their objectives. understanding of the factors that make the success of new technologies and innovative activities is more important than anything else.​ first century. The experimental part of the innovation compares the performance of innovative and non-innovative companies. Today. therefore. MTI involves managing something which is extremely complicated and risky.2. organisations must increase their capabilities for technology development and innovation. better.scribd. Technological innovation has an important job both in improving productivity and developing new products and services. and organisational performance. or method from the moment of its invention or creation to its eventual adoption by an increasing number of users. and productivity. It consists of two dimensions. or to design new products. depending internally of any organisation and market-specific factors. and that their competitors cannot provide. However. as we move towards what is called the ¶knowledge economy·. We can classify innovative activities as: · Product innovations or process innovations that are related to Internet-based technologies. · It starts making profit.2. From the above discussion.

5. and judging the behaviour of consumers. 8. for bringing innovations to the world market. Activity 1: Suppose you are working in a software company. and communications devices. we perform a set of tasks related with the introduction of a product into the market. In this phase. 1. useful products and services. we implement the technology. research is done for dealing with one or more problems of the society and solving them. ​ 7. we will study the different phases of technological innovation process.1: Technology-Based Innovation Process Let us briefly discuss these eight phases. 11.Based Innovation In the previous section. that is. we studied about the relationship between innovation and technology. buildings. Self Assessment Questions 1. cars. This phase includes the strategy and performance of tasks that assures the expansion of the technology in terms of its usage. microwave vendors. (True/False)? 3. we can develop and implement technology comfortably.1. Hint: Good productivity. 6. or creation and testing of a prototype. If the applied research is successful. applications software. logistics. The success of a ______________ depends on the diffusion of the innovation to those who can use it effectively. Improvement and enhancement: This is the final phase of the technological webcache. This set of activities include the evaluation of the market. production control. Implementation of technology: After the development of technology. applied research takes place. software. In this phase. and considerations related to the environment). Applied research: After basic research. operating systems. Integrated Services Digital Networks (ISDN) involves the participation of telephone companies. In this section. promotion of the product and services. This phase includes the first functional use of a concept or a product by the society. we transform our knowledge and concepts into hardware. 4. verification of concepts of designs. and technological innovation and management. We can define it as a human activity.com/search?q=cache:http://www. Technology-based innovations such as aeroplanes. For example. are made up of various component systems. 3. and value-added network operators. We can say that this research is a process of knowledge generation over long time duration. Basic research: This is the first phase of the process of technological innovation. Production: In this phase of technological innovation process. Identify a latest innovation developed and incorporated by the company and also analyse its advantages and disadvantages.scribd. a basic research is done for increasing our basic understanding of the nature laws. strategy for distribution. Expansion: This is the seventh phase of technological innovation process. We can classify the process of technological innovation into eight phases as given in the figure 11. in which. and distribution) related to the broad transformation of the design concepts into products and services. The management of technology focuses on maximising the ________________ of investments in technology development and eventually contributing to those organisations· value. 2. and the supremacy of the technology in the market.5/15/13 Om 0018 production activity. or services. we perform a set of tasks (manufacturing. conduction of research for the development of medicine for a particular known disease. local area network providers. home banking or personal music systems.3 Process of Technology . It brings about the tasks which are related to assurance for the successful introduction of developed product or service (including cost. comprise central processing units. The experimental part of the innovation compares the performance of innovative and noninnovative companies. Expansion is dependent on the methods of exercising the technology and on the system used for the technology marketing. Computers. The process requires the unification of inventions and the technologies which already exist. We can say that we gain more knowledge systematically on the basis of existing knowledge. memory cards. we perform a set of activities for assuring that the consumers accept the technology. Development of technology: This is the third phase of the process of technological innovation. power supplies. hard drives. The incorporation of these often highly complex systems is an important MTI task. for example. ​ Figure 11.googleusercontent. Marketing: In this phase.com/doc/82954399/Om-0018 76/87 . For implementation of a technology. satellite suppliers. This phase may include demonstration of practicability of a concept. We can define the technological innovation process is a complicated set of tasks that converts the concepts and scientific knowledge into reality and the real-world applications. 2.

1 Factors Let us now discuss the key factors driving the innovative activities of organisations. It includes carrying out a set of tasks related to the maintenance of the technology·s competitive edge. Which stage includes demonstration of practicability of a concept. · Business investment in innovation strategies: This can be encouraged by both relevant education and concessions to influence companies so that they appreciate the need to change. improvisation of quality of the technology.5/15/13 Om 0018 innovation process. Improvement and enhancement of technology increases the life of technology. ​ · Investment in education that is relevant to business: Educational institutions require connection with business and evolve courses that are related to the operational process that make up national innovation systems. 11. the burden on organisations should be minimised as much as possible. · Support to investment in R&D by both government and business: Governments can encourage private R&D investment by allowing the financial structures to cater the necessary packages to businesses. · Public-Private Partnership: Collaborative efforts by public and private sector are an efficient and useful way to develop innovation support mechanisms. Innovation by companies also requires good investment to commercialise innovative market opportunities. Policies can also provide help to businesses in recognising innovative business opportunities. Capital needs to be carried to innovating companies in an efficient manner to make the innovation process self-reliable. It brings about improvisation of the technology. Expansion is dependent on the methods of exercising the technology and on the system used for the________________. The innovation activity of an organisation is a key driver of competitiveness and economic development. calls for the management of a number of policies and the related public investment that will assist in shaping the soft and physical infrastructure as well as the administrative structure in which the private sector operates. Though the process occurs at an organisation level through skilful management. development of new applications of the technology. Let us study the principles that guide innovative performance. · Data collection should be communicative rather than being based only on theory. and is related to the improvement and enhancement of technology. verification of concepts of designs. Ultimately. Businesses will innovate when they consider innovation as a significant business opportunity. reduction of technology cost. 11.2 Principles The innovative performance in an organisation is guided by a set of principles which help the organisation to succeed in business. · Innovation data compilation efforts should build on the way organisations assess the effectiveness of their innovative activities.4. 11. Name the final phase of the technological innovation process. Appropriate management training programmes can support this process. and meeting the customers· needs.com/doc/82954399/Om-0018 77/87 . we will now study different measures of innovative performance. 5. · Establishing strong and self-sustained industry and education linkages: Public policy is a key element for motivating the cooperative efforts of all relevant stakeholders in the innovation process. · Providing support and solutions for organisations: Specific policy measures are encouraged to address the issues of SMEs and to provide a favourable environment for such organisations to engage in the marketing of innovative business opportunities. a company·s innovation performance can be improved by correct policy measures conducted in a business-friendly atmosphere.scribd.4 Measures of Innovative Performance As we are now familiar with the technology-based innovation. · Policy needs to steer the development and support of the soft and hard infrastructure that feeds innovative companies: Careful importance should be given to strategy and developing innovation support institutions and the related industry support programmes.4. or creation and testing of a prototype? 6. This means that organisations can both identify and understand how to make use of the innovation-driven market.com/search?q=cache:http://www. The establishment of an environment encouraging the innovation activity of an organisation. · While developing effective ways to quantify innovation webcache. The national innovation system offers a conventional and business situation that supports the creation and requirement for knowledge as well as its diffusion and incorporation into business activities. the identification of the policy options and instruments available to improve the innovative capabilities of organisations is an important component of any strategy to support better living standards. and different phases of its process. the most effective influence of technological innovation on business is market opportunity. Also. Self Assessment Questions 4. Thus.googleusercontent.

time to market. Hint: Business investment in innovation strategies. such as number of projects in the planning. international comparisons would help explain why different countries are experiencing different economic growth rates. Some regulatory policies may exclusively support innovation. most senior executives have a business target for their department or company. · Due to the nature of innovation and. measuring the resources invested in and the results of collaboration may be very significant but also very difficult. innovation effectiveness is an area of constant concern as senior managers are always involved in assessing their company·s innovation performance. The methods by which they achieve this growth. industry.com/search?q=cache:http://www. it has no significant role in the performance evaluations of senior management. ´Time to cashµ belongs to which category of measures? Activity 2: Assume that you are the newly appointed manager of a company which has not achieved any significant innovation from the past few years. The execution of project trials to measure the costs and benefits of new data collection efforts is encouraged. stock price or market valuation.googleusercontent. As new innovation data are compiled. whether it is from acquisition or from innovation. 11.3 Measures There are several issues for measuring the performance related to both new products and services: First. Thus. You are given the responsibility to identify the necessary innovation activities the company needs to perform in order to be successful.effectiveness and ability to push out the boundary of knowledge about innovation and its impact on the economy. are usually indefinite. At the same time.4.· Learning and improvement are to be obtained from each stage of the process. webcache. The __________ activity of organisations is a key driver of competitiveness and economic development. The measures of innovative performance comprises of three categories which are discussed here: · Results-based measures: It focuses on business results. 11. · Project measures: It looks at the returns and investments from particular innovation projects. it should be continuously updated. The costs of new data compilation include both direct program costs and the cost burden imposed on possible survey respondents. especially if such collaborations are informal or if the benefits are subject to spillovers. · Process measures: It captures the activities that contribute to these business results. · A conventional approach should be taken to any new data compilation efforts by recognising compromise between costs and potential benefits and considering resource and regulatory issues. there needs to be acceptance of qualitative and subjective measures. organisation.5/15/13 Om 0018 in the business priority should be given to the measurement of impact of rules and regulations on innovation. recognising that innovation demonstrates itself differently in different parts of the economy.com/doc/82954399/Om-0018 78/87 . regional Ievels. Especially. Self Assessment Questions ​ 7. measurement of innovation performance tends to be informal in most companies. national. the mutual nature of the innovative process. they should be filtered and continually re-evaluated for their cost. For example. in particular. The _________________ offers a conventional and business situation that supports the creation and requirement for knowledge as well as its diffusion and incorporation into business activities. ​ · Innovation measurement should not be stagnant. Measurement is a step by step process that needs to be considered not as a ¶project· but as an ongoing ¶dialogue. Measures which are known as ´time to cashµ or ROI are calculated on a project-by-project basis. 8. As innovation performance is not measured in a systematic way. most organisations do not have a systematic or standard method of securing either investments in. For example.scribd. 9. Enhanced data on innovation should allow industry and sector-specific analysis. Enhanced data on innovation are critical for evaluating the impact that regulatory policies have on innovation. such as sales or profits. · Innovation measures should be analysed at the enterprise. or returns from. Consequently.5 Characteristics of Innovative Work Environment In the previous section. Other policies may have the unintended consequence of inhibiting innovation. all the development contributes equally. we studied different measures and principles of innovative performance. or percent of sales from new products. and they are rewarded based on their ability to achieve this target. however. with considerable variation in measures used every year. international and where possible. innovation. The government needs the support of the researcher community in order to achieve this in a timely manner.

​ There are some people who just like to be interviewed. But. because the former boss is bound to be nice. They are tangible and not related to terms like ethics. and many candidates can answer your interview questions in a way that may indicate they are innovative even when they are not. particularly in ________ markets. We mainly focus on adopting these two main characteristics that contribute to an innovative environment.5/15/13 Om 0018 Now. ​ webcache. to be nice.googleusercontent. For example. They seem talented on outside. Physical layout: Most start-up company managers don·t think strategically about their workplace layout which is a big mistake if you are determined to create an innovative work environment. It doesn·t matter if you·re a coffee shop owner or you run a government office. the 2 P·s. The organisational customs and the Ievel of support from leaders and managers play a vital role in enhancing employee potential and motivation to innovate. The key to hiring the right people in your organisation is purely your inner instincts. beliefs and attitude. and most importantly. A significant level of knowledge has been produced on various aspects of the field. particularly in dynamic markets. The best strategy is to create the right questionnaire to screen for innovators. If we take the current economic unrest and increasing global competition into account. 11. Creating a work environment that encourages _________ and _________starts with an understanding of two key characteristics of innovation.scribd. Even worse. high labour costs are reducing competitiveness. polish it and make it professional. People: The trick is to hire nice people and not the people who have to be told. A poor physical environment has a negative impact on employee attitude and employee behaviour. Let us briefly discuss these two characteristics. an organisation·s innovation ability is regarded not only vital for success. You·ll also find it easier to attract innovative employees who prefer to work in an environment that is encouraging to creativity and big ideas. Self Assessment Questions 10. However. so you can·t completely rely on resumes alone. and innovation is seen as the solution to counter this. so it is of interest to evaluate the state of the ability reached by the scientific community in this field and the route it has taken. Resumes never tell the whole story. However. Product innovation research has developed substantially in the past few years. we will discuss the characteristics of innovative work environment. but after few months you·ll find yourself with a sluggish liability. Hint: http://www. Innovation is essential for organisational long-term success and growth. improving the performance of a company in this area is a real challenge. particularly in dynamic markets. and abilities of its employees.com/Innovative-Work-Environments. References don·t disclose much either. sometimes nice people can also fool you. Increasing global competition is compelling many manufacturing firms to look for methods to become more innovative. this is the major problem for mainly the newly started companies. a new study has found that entrepreneurs in both countries are facing remarkably similar issues. go with your gut.com/search?q=cache:http://www. it can also result in bad opinion from potential customers. You need to have the right people in the right position in an organisation to encourage innovation. UK companies are often scrutinised for having good ideas but not deploying them successfully to market. Creating a work environment that encourages creativity and innovation starts with an understanding of two key characteristics of innovation. skills. (True/False)? Activity 3: Collect some information about the two characteristics of Innovative Work Environment. You need to concentrate on the physical work environment and design it in a manner that gives you the competitive edge you·re searching for. On the other hand.6 Key Areas of Management Focus for Productive Innovation The previous section familiarised us with the characteristics of innovative work environment.htm 11. The bottom line is to clean up your office. but often a basic requirement for mere survival. Whereas in Germany. 12. analyse every small detail in their resume. The innovative potential of an organisation is confined in the knowledge. Technology is essential for organisational long-term success and growth. Let us now focus on the key areas of productive innovation management.com/doc/82954399/Om-0018 79/87 . They tend to hire friends from their MBA colleges or get fooled in the interview process. Innovation is essential for organisational long-term success and growth.gaebler. The 2 P·s: people and physical layout The 2 P·s are not conceptual but simple and very real.

government regulations. They are taking leading roles in assisting transformation of knowledge into new products. technologically advanced customers may demand more innovative products and services. services and processes is essential. political and social measures. · Creativity and ideas management. Showcasing good ideas.googleusercontent. and organisation and industry innovation in these two areas are examined. The most common method of achieving these objectives is to use cross-functional teams. geographically close competitors may be able to webcache. to choose the best ones for implementation. an effective process is needed to choose the best ones for _______________. · Human resource management. but problems often occur. processes and services. new measures and drivers have also evolved. ​ Thus. respectively. internal and external to the organisation. an effective process is needed. services and processes. Hint: Project Management. 14. strict environmental regulations in the developed countries have been decisive in getting organisations to focus on sustainability. Regulatory measures can influence innovation ranging from tax to patent and copyright laws. Once the ideas have been created. there is a large space for ideas and therefore all employees should be a part of it. Which key area of production innovation management includes showcasing good ideas. Major organisations ensure that their innovation group contains a proper balance of new products. deciding how to use technology and driving performance assessments through appropriate performance indicators. systems. · Customers and competitors: Customers and competitors in a specific industry can influence the innovation potential of organisations in that industry. the communications between environmental and eCommerce regulation. 15. which fulfils customer requirements. In order to remain competitive in the ever increasing global competitive market your company has assigned you a task of searching new innovative areas where the company can focus to achieve success. Fast introduction into market. such as leadership capabilities and the level of industry innovativeness. International competition. In addition. · Innovation strategy. depending on the circumstance and how they approach it. · Project management. Increasing global ____________ is compelling many manufacturing firms to look for methods to become more innovative.scribd. is crucial? Activity 4: Assume that you are the manager of a manufacturing company. hence providing greater opportunity for longterm greater business success. As demands for innovation have increased. Since innovation includes new products. This includes understanding the function of innovation within a company.5/15/13 Om 0018 Let us have a look at the five key areas of productive innovation management. · Government regulation: Government regulation can provide organisations with opportunities or Constraints. it is nevertheless an essential one. post-project reviews are hardly ever used to identify areas for improvement. Innovation capacity is therefore considered as a complex conception because it can be influenced by factors internal and external to the organisation. · Environmental regulation: An organisation·s sustainable development orientation (SDO) shows the influence of and ability to influence environmental.com/doc/82954399/Om-0018 80/87 .7 Measures for Building High-Performing Innovative Technology-Based Organisations We will now study the measures for building high-performing innovative technology-based organisations. Let us briefly describe the external factors that influence innovation. which are correlated to the organisation·s ability to continuously innovate. and business and service innovations. The talent to quickly turn ideas into new products. is crucial. which fulfils customer requirements. shorter product lifecycles and increasingly challenging customer satisfaction are creating significant problems for the creation of innovative organisations. These three factors can have a role in the innovation capability of organisations. Nevertheless. Considering all efforts of innovation management is the need to develop a culture in which employees are encouraged to contribute to innovation. we can interpret innovation potential as a combination of parameters. Once the ideas have been created. Self Assessment Questions 13.com/search?q=cache:http://www. However. high product value and tolerable development costs are all typical goals for companies. environmental and social needs and in assisting the strategic course of the business. An organisation·s SDO can be defined as the degree to which the organisation customs and its set of SD practices are capable and effective both in meeting financial. sustainable development and a focus on speeding up new product development. · Portfolio management. 11. For example. such as. For example. Although government regulation is not the only measure that can positively impact on the process of innovation.

com/doc/82954399/Om-0018 81/87 . Internal communication comprises knowledge of the environment outside the organisation. A ________________ addresses the limitation of how the company or its business units can compete in its businesses and industries. The relationship between company size and the company·s ability to innovate seems to be moderated ​ by factors such as the measure of size. and that this relationship is different for growth-stage and developed companies. and. moderated this relationship. and the clear understanding or definition of various factors of innovation should be related to innovation capability. such as the type of organisation and the stage of implementation. principles and measures related to innovative performance. An organisation should consist of an innovative work environment for the long term success and growth of the organisation. For example. As a result.com/search?q=cache:http://www. Finally. We also discussed the factors. but they work in tandem. research has shown that effective strategic management can help organisations to surpass their competitors. The innovation activity of an organisation is a key driver of competitiveness and economic development. we categorised the technological innovation process into eight stages. structure. For example. 17. In this unit. and in benefits. communication with customers and suppliers. 18. past studies indicate that an organisation·s characteristics affect some relationships commonly associated with innovation. In general. rather than in non-benefits. organisation size does not appear to be related in the same way to all dimensions of innovation nor to all environmental management practices. · Organisational size: The relationship between organisation size and innovation is complicated. Therefore. the scope of innovation. After a brief discussion on the external factors. we studied about the relationship between innovation and technology.8 Summary In this unit. depending on the circumstance and how they approach it. Communications can be considered as the capability of innovative organisations. and the contribution of employees with external professional activities and networks. In general. the type of organisation. and the stage of implementation. amongst others. After discussing the concepts of innovation and technology. External communication comprises knowledge of the environment outside the organisation. size was more positively associated to innovation in manufacturing than in service. let us now discuss the internal factors that influence innovation. technology management. The size is positively related to innovation but some measures.5/15/13 Om 0018 identify customer requirements and source mechanism more quickly than isolated ones. a clear innovative strategy that fits in with the overall organisation·s strategy. · Strategy: A business strategy addresses the limitation of how the company or its business units can compete with other businesses and industries. We also analysed that we can classify the innovation activities as the product or process innovations. in this section we analyse the literature on the relationship between innovation and the organisational quality of size. · Communication: Internal and external communications have been found to be associated to innovation.googleusercontent. customers and competitors may manipulate the innovative potential of organisations. hence it is possible to conclude that size does matter to innovation potential. and business knowledge. However it is clear that large and small organisations have different types of chances to innovate. we also discussed how the technology diffusion helps in technological innovation by using the transfer of technology process. We also learned that technology and innovation are measured as two different entities. strategy. Since effective internal and external communication allows information to be shared by all stakeholders in the innovation process. (True/False)? 11. In this unit. Strategic management is defined as the set of managerial findings and activities that determines the enduring performance of a corporation. _______________ can provide organisations with opportunities or Constraints. the positive relationship between R&D and an organisation·s performance is stronger for organisations that provide high quality after-sales customer service than for organisations that do not.scribd. As per the above discussion. and the contribution of employees with external professional activities and networks. Self Assessment Questions 16. We discussed the two main characteristics required to achieve an innovative work environment which are the People and the webcache. which are either related to internet based technologies or not internet based. communication with customers and suppliers. we also understood the relationship between innovation and technology. This unit made us understand the concepts of technology based innovation and management.

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physical layout. Then, we analysed the key areas and the factors influencing the production innovation and management. In the end, we ​ discussed the various measures for building high performance innovative technology based organisations. 11.9 Glossary Terms Platitude Articulate Liability Description A thought or remark which is flat, dull, trite, or weak. Expressed using clear and distinct voice. The state of being legally obliged and responsible. It is the dissemination of technical information and knowledge and the subsequent adoption of new technologies and techniques by users. Technology diffusion 11.10 Terminal Questions 1. Illustrate the relationship between innovation and technology. 2. Explain briefly the management of technology-based innovation. 3. Describe the eight phases of technology-based innovation management. 4. Prepare a list of the factors for innovative performance in an organisation. 5. Briefly explain the principles that guide Innovative performance. 6. What are the two main characteristics of innovative work environment? 7. What are the key areas of productive innovation management? 8. Briefly explain the factors influencing the high performance innovative technology based organisations. 11.11 Answers Self Assessment Questions 1. Technological innovation 2. True 3. Cost-effectiveness 4. Technology marketing 5. Development of Technology ​ 6. Improvement and enhancement phase 7. Innovation 8. National innovation system 9. Project measures 10. Dynamic 11. Creativity and innovation 12. False 13. Competition 14. Implementation 15. Creativity and Ideas management 16. Government regulation 17. Business strategy 18. False Terminal Questions 1. Refer section 11.2.1 Innovation ² Technology Relationship. 2. Refer section 11.2.2 Technology-based innovation management. 3. Refer section 11.3 Process of Technology-Based Innovation. 4. Refer section 11.4 Measures of Innovative Performance. 5. Refer section 11.4 Measures of Innovative Performance. 6. Refer section 11.5 Characteristics of Innovative Work Environment. 7. Refer section 11.6 Key Areas of Management Focus for Productive Innovation. 8. Refer section 11.7 Measures for Building High Performance Innovative Technology based Organisations. 11.12 Case Study Company profile µZenanet networks¶ is a digital communication solutions manufacturer in Brazil which ​ provides solutions for several markets in the world by developing and incorporating technologies in a convergent and flexible way. Its headquarters is located in the city of Florianopolis, state of Santa Catarina, Brazil. Challenge The company faced a lot of challenges through the benchmarking and action plan proposal phases as well the implementation phase. The Benchmarking phase was used to develop a Brazilian benchmarking methodology for innovation management in small companies. But it affected the company¶s performance and practice indexes since benchmarking companies of different contexts present external variables that sometimes are determinant factors for producing biased values. As a result, a lot of problems were created in the action plan phase and implementation phase. The company desperately needed a system that can help manage all these phases. Solution The company introduced the Innovation Management Assessment System to overcome these management issues. This system helped the firm to understand their strengths and weaknesses as well as to establish action plans in order to achieve higher performance. It facilitated the identification of the causes that were preventing the company to reach higher performance levels and the establishment of actions aiming to eliminate or at least reduce those causes. The results after three years of implementation substantiate the success of the model, when reached a better visualisation and control over project development, improved qualitative and quantitative information processing and specially, a greater number of new developed projects and with
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market insertion. Questions 1. What were the issues faced by Zenanet networks? Hint: Benchmarking. 2. How did the new system helped them to overcome those issues? Hint: Understand strengths and weaknesses. ​ Download or Print Add To Collection 456 Reads 3 Readcasts 0 Embed Views Published by praveen4_4 Follow
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