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The technology up gradation project was initiated with the assistance of World Bank’s FSDIP project and has continued its pace under the Technical Assistance for Banking Sector (TABS) program, again sponsored by the World Bank. The project has already successfully installed the base infrastructure at Karachi Head Office and initial deployment of the banking package (Globus); ERP package (Oracle Financials) and data warehouse has also been implemented to a considerable level. The major components of the automation project are: Hardware system Globus (Banking Solution) Enterprise Resource Planning (ERP) Data Warehouse Networking Trainings
2. What is Technology Process Mapping?
A process map is a tool to visually illustrate how the work flows. It is also a communication tool, a business planning tool and a tool to help manage the organization. Key elements include: • • • • • Inputs Outputs Activity steps Decision points Functions
The lines and symbols on a process map help us to record concise sentences for every step in the process that tells the reader: • • • • • What is happening? Where it is happening. When it is happening. Who is doing it? How inputs and outputs are handled and distributed.
technology brokering’s founder. the company must have the ability to bridge distant communities. stockholders or others who stand to benefit from the technology’s commercial success are also involved in University research on the technology. when a company is able to combine these two strengths it can result in being the first to experience technological advances. positively or negatively. These two strengths are difficult to have simultaneously because the strong ties the companies have with customers and supplies in one industry prevent the company from moving easily into other markets and experimenting with new ideas . When inventors. oversight. separation and independence.3. and attention to the key principles of transparency. Once a technology has been licensed. What are the conflicts arises in Technology Interests? Conflicts of interest are a predictable and expected result of proper research and commercialization efforts at the University. otherwise disconnected industries. Define Technology broker. company founders. . Implications for Research Most conflicts of interest can be managed by a combination of disclosure. summarized: “Firstly. As Andrew Hargadon. to see how existing technologies could be used to create breakthrough innovations in other markets.” Yet. by the results of continuing research on that technology. That revenue can be influenced. The University’s policies and procedures on conflict of interest may be viewed at the Research Compliance Program website. a conflict of interest exists. 4. a potential revenue stream is created. technology brokering involves creating new markets and industries based around innovative combinations of existing technology. usually when a company can move easily across a range of different markets they have a better view of how technologies can be used in new ways. Technology brokering requires companies to be strong in two areas. Secondly. The idea of Technology brokering is to span multiple.
As Davila et al. Innovation is the key element in providing aggressive top-line growth. that systematic programs of organizational innovation are most frequently driven by: Improved quality. Replacement of products/services. and in the types of clients they serve. "Companies cannot grow through cost reduction and reengineering alone. ranked in decreasing order of popularity. knowledge-based small and medium-sized enterprises" (or SMEs) in an economy. Conformance to regulations 6. While each country or municipality may have different reasons for creating technology parks.." 7 Developing countries with no local expertise in technology may use technology parks to attract foreign direct investment to create jobs and increase tax revenues. Reduced materials. developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services. in contrast to 44% of all firms. to the business plan. Extension of the product. . Improved production processes."  One survey across a large number of manufacturing and services organizations found.5. in their organizational structure. range.. and to market competitive positioning. and for increasing bottom-line results. Incubators vary in the way they deliver their services. Reduced environmental damage. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term: older studies found 87% of incubator graduates stayed in business. One driver for innovation programs in corporations is to achieve growth objectives. (2006) notes. Reduced labor costs. Reduced energy consumption.6 SME's have been described as "the backbone of the private sector as they help diversify the economy. What are the common goals on Innovation? Programs of organizational innovation are typically tightly linked to organizational goals and objectives. generally the primary goal of a technology park arrangement is to increase the number of "entrepreneurial. Creation of new markets. Distinguish between Technology Incubators and Research & Technology parks.
know-how or facilities developed by one individual. The creation or absorption of new technology has become a vital component for companies to improve or maintain their competitive position in the market place. They may also use new technology to better commercialize their products or to improve their management structure. running royalties. control and communication. What do you mean by finance syndication? A syndicated loan is one that is provided by a group of lenders and is structured. expertise. sometimes an intellectual property (IP).7. may rely on new technologies to improve their efficiency in the extraction of raw materials by improving their productive processes or acquiring new machinery and equipment. 9. technology transfer is the process by which a technology. which may be divested from the original owner of the asset. or private sector taxes) are usage-based payments made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an asset. enterprise or organization. A royalty interest is the right to collect a stream of future royalty payments. Companies operating in sectors where competition takes place on the basis of price alone. . but there are also other modes and metrics of compensation. What is the role of periodicals in technology transfer? Simply put. What do you mean by royalties? Royalties (sometimes. Effective technology transfer results in commercialization of a new product or service or in the improvement of an existing product or process. 8. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such. such as the extraction or commercialization of raw materials. enterprise or organization is transferred to another individual. arranged. often used in the oil industry and music industry to describe a percentage ownership of future production or revenues from a given leasehold. and administered by one or several commercial banks or investment banks known as arrangers.
The European leveraged syndicated loan market almost exclusively consists of underwritten deals. different IP assets it own or use. market contains mostly best-efforts. and Europe's market blossomed with the launch of the euro in 1999. The U. Underwritten deal Best-efforts syndication Club deal 10. and to enable business planners to devise informed strategies that will maintain and improve the company’s market position.S. used or acquired by a business. PART . sale up. there are three types of underwriting for syndications: an underwritten deal. and Europe to tap banks and other institutional financial capital providers for loans. market originated with the large leveraged buyout loans of the mid-1980s. TECHNOLOGY OPPORTUNITIES . bestefforts syndication. and at the risk of reducing the exercise to the “too-hard basket” it is important for every business to document and value what is. its most important intangible assets.S. decision making and choice of technology for the Innovative products. and a club deal.B 1. to identify any threats to a company’s bottom line. whereas the U.The syndicated loan market is the dominant way for corporations in the U. in many cases. Putting aside these difficulties.S. Its purpose is to uncover under-utilized IP assets. What is an IP Audit? An IP Audit is defined as a systematic review of the IP assets owned. Globally. in terms of contribution to company’s competitiveness and bottom line. The above example merely illustrates the hidden assets found in any company (in this case an SME) and how an IP audit can facilitate the identification of importance. Explain the procedure for Technology opportunities. In many cases SME’s do not have the resources to conduct a full audit of all its IP and will find it difficult to put a value to each of the components making up an IP portfolio.
the issue of choice arises. Management of technology involves developing an understanding of these relationships and dealing with them in a rational and effective manner. and acting to ensure that the technology decisions and policies contribute to the firm’s competitive advantage. Information is made available the public domain with limited or no restrictions on its use. General channels: The technology transfer is done unintentionally and may proceed without the continued involvement of the source. Because various types of technologies can be used to achieve an organization’s objectives. it depends on the ability to identify and recognize opportunities in different technologies. issues falling under the scope of management of technology can be explored in their relation to one of the following five categories: Methods and tools for effective management of resources. Channels of technology flow Technology is intangible. The expected outcome is that the firm will select the most suitable or “appropriate” or “alternate” technology (AT) in its circumstances. Management of R&D and engineering projects. The business environment and the ability to manage the interface between the organization and the external environment. is recognizing the role that technology plays in the competitive success of a firm.An essential component of managing available technology. Technology advances have major effects on each of these entities and are in turn. The use of technology is always tied to an objective. Management of human resources under conditions of rapid technological and social change. industries departments or individuals. There are three types of channels that allow the flow of technology. provided that the channels of flow are established. Therefore. Briefly explain the technology flow channel and Technology Transfer Modes. 1. Implementing technology programmes Integrate technology into the firm’s strategic objectives Taking a proactive stance in introducing new technologies with greater emphasis on cycle time Increasing the productivity and performance of the firm’s technical community Understanding the interdisciplinary needs in project management Analyzing the resources and infrastructure to effectively select the technical scope of the work effort 2. influenced by them. The concept of technology choice assumes access to information on alternate technologies and the ability to evaluate these effectively. it flows easily across boundaries of countries. This information is harnessed by users and applied to their . The structure and management of organizations. Further. Moustafa (1990) asserted that effective choice is based on preselected criteria for a technology’s meeting specified needs. CHOICE OF TECHNOLOGY Technology choice has important implications for growth and productivity in industry.
In this process. This is feasible provided that the host has the knowledge to do this and there is no legal violation of intellectual or property rights. and use of. then the technology transfer mode is said to be active. Here a host. This is actually knowledge transfer. What are the various developments take place in Technology Partnering? . conferences. then the technology transfer mode is said to be passive. which may be called semi-active mode in which transferring activity is in between the activity is in between the active and passive modes. If the transferring mechanism presents the technology to the potential user without assisting the user in its application. and introduced to the market as a competitor to company A’s product. There could however be an intermediate also. They permit access to. Planned channels: The technology transfer is done intentionally. is capable of breaking the code of a technology and developing the capability to duplicate it in some fashion. a product that is put on the market by company A can be purchased by company B. the transferring activity goes beyond mere interpretation of the transmitted data and advises the potential user on how to apply the technology. There are several types of agreements that are used to affect planned transfers. Channels of this type of transfer include education. training. Reverse-engineering channels: Other channels in which the transfer occurs with no active contribution from the source include reverse engineering and emulation. a technological know-how: a) Licensing b) Franchise c) Joint venture d) Turnkey project e) Foreign direct investment (FDI) f) Technical consortium and joint R&D project TECHNOLOGY TRANSFER MODES Technology transfer modes have been categorized basically as being passive or active. study missions. which refers to the transferor’s role in the application of technology to the solution of the user’s problem. and exchange of visits. 3. publications. If the transferring activity assists the potential user in the application of technology. 2. The three different types of technology transfer modes are: The Passive Mode The Semi-active Mode The Active Mode 3. or demonstrates the applicability of the technology to the perceived use. as illustrated by the case in the accompanying box.purposes. reverse-engineered. For example. namely by a report or oral presentation. the product according to a planned process and with the consent of the technology owner. or a traditional receiver of a technology.
which has a limited foreign exchange to buy sophisticated equipment. in the acquisition phase of the Transfer Cycle.TECHNOLOGY PARTNERING In-house development of technologies are developed and demonstrated on its own. limited institutional capacity. a developing-country enterprise. Partnerships with intermediaries’ commitments relate to the transfer of environmentally sound technologies and the know-how necessary to mitigate and facilitate adequate adaptation to climate change. universities. and excessive bureaucratic procedures. One or more of these factors may be more important than the others in each of the five phases. will consider the economic factor to be relatively more important. Collaborative development technology is developed in conjunction with each partner exclusively developing a component of the whole technology International networks of technology share skills. Sponsored development technologies are developed and demonstrated at the request of a potential user organization/company wholly funded by the client organization. methods of manufacturing. the company may opt for self-generation rather than transfer of technology. knowledge. Joint development technologies are developed jointly with another partner with both the partners contributing substantially to each facet of the overall technology development. the following is a short list of barriers relevant to the transfer of ESTs: a) Institutional: lack of legal and regulatory frameworks. by designing and building machinery of its own Barriers Barriers may generally be defined as factors that inhibit the technology transfer process. Examples of barriers are abundant in the literature. technologies. Accordingly. For example. governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users IN-HOUSE DEVELOPMENT Small & medium enterprises have to cope up and survive in the hi-tech global market can adopt the following strategies to develop and in transfer of technologies In-house development: These technologies are developed and demonstrated on its own.However. . and for each type of technology under consideration. samples of manufacturing and facilities among industries.
corruption and lack of civil society. ABSORPTION PROCESS Technology absorption capabilities of recipient enterprise The absorptive capabilities of the recipient enterprise depend upon its resources and capabilities (embodied in technical and managerial skills as well as financial strength) and upon the transfer capabilities of the supplier enterprise. Process and Relocation issues. provided that the channels of flow are established The Absorption process gives the methodology by which technology is absorbed. instrument calibration. engineering standards and quality control procedures.b) Political: instability. subsidies). welding techniques. Relocation issues give the salient difficulties in transferring technology. formulas on alloys and compounds. Technology is intangible and it flows easily across boundaries of countries. industries departments or individuals. jigs. lack of technical standards and institutions for supporting the standards. . poor macroeconomic conditions and disturbed and /or nontransparent markets. inflation. f) Financial: lack of investment capital and financing instruments. casting and other metallurgical processes and material substitutes. interventions in domestic markets (for example. The following are some of the problems encountered by small-to-medium enterprises in technology absorption. low technical capabilities of firms and lack of a technology knowledge base. d) Economic: instability. Service facilities: Material testing. h) General: intellectual property protection. Manufacturing : Material standards and specifications. manufacturing processing procedures. heat treatment. e) Information: lack of technical and financial information and of a demonstrated track record for many ESTs. and unclear arbitration procedures 4. dies and tools. fabrication and use of fixtures. Describe the procedure followed in Absorption of new Technologies. g) Cultural: consumer preferences and social biases. c) Technological: lack of infrastructure.
technology is developed in conjunction with each partner exclusively developing a component of the whole technology. For example. JOINT DEVELOPMENT Joint development: In this case. (2) little insight into the dynamic processes involved in technological change. but rather settling for 45 percent. Explain Joint and Collaborative Development. expertise. 5. machine tools). and (4) some question about the credibility of underlying concepts. In a multinational company. they gained entry to some vital markets well before others in the West did COLLABORATIVE DEVELOPMENT Collaborative development: Here. so technology analysis allows easy access to the essential feature of all technologies without attempting to grasp every detail. Traditional Tools Traditional strategic management’s analytical tools can address technological issues with some utility. because of an understanding and appreciation for the political and cultural requirements prevalent and imposed by the Indian government. external factors.Equipment: Special equipment designs (heat exchangers. first priority for technology transfer is given to collaborator. Just as a skyway is a passageway linking various buildings. bearings heating elements) and standardization of major machine components (gear boxes. (3) a dependence on (frequently a technical) analysts’ knowledge. in varying degrees they suffer from (1) a lack of differentiation of technological change from other types of change. Here again. project is partially funded by the client and the first priority for technology transfer is given to this client. . sometimes may become more dominant in relative importance than the economic and technical factors. allowing easy access to the main areas without attempting to cover every floor. pressure vessels. technologies are developed by ARCI jointly with another partner with both the partners contributing substantially to each facet of the overall technology development. and understanding. Here. However. RELOCATION ISSUES Technology analysis may be viewed as a “skyway theory” of technology. die casting etc. Thus. They lack the focus and emphasis required for contemporary strategic management analysis. prior to the 1990s. some Japanese multinational companies were wise to offer their technology and know-how in India without demanding a 51 percent share. including the political and cultural factors.
LITIGATIONS – ROYALTY AUDITS – AUCTIONS Intellectual property (IP) is a legal field that refers to creations of the mind such as musical. Under intellectual property law. industries which rely on IP protections are estimated to produce 72 percent more value per added employee than non-IP industries. As the dialogue between Picasso and Braque brought about Cubism. and related rights. Public disclosure of trade secrets may sometimes be illegal. images. and artistic works.S. and non-obvious invention. commercial symbol. photographs. The legal protections granted by IP laws are credited with significant contributions toward economic growth. A patent may be granted for a new. The second category is collectively known as “industrial properties”. inventions. the holder of one of these abstract “properties” has certain exclusive rights to the creative work. 6. IP RELATED ISSUES :– RIGHTS . names. An industrial design right protects the form of appearance. by making models. including copyrights. thereby providing an incentive for the author or inventor to develop and share the information rather than keep it secret. and designs used in commerce. Purpose Intellectual property rights give creators exclusive rights to their creations. which protect creative works such as books. and symbols. The former is covered by copyright laws. Economists estimate that two-thirds of the value of large businesses in the U. literary. both artistic and commercial. A trade secret is non-public information concerning the commercial practices or proprietary knowledge of a business. by testing and/or by making the invention in its whole form. and gives the patent holder a right to prevent others from practicing the invention without a license from the inventor for a certain period of time. music. movies. can be traced to intangible assets. Likewise. by trial and error. useful. architects and scientists. Intellectual property rights are a bundle of exclusive rights over creations of the mind. as they are typically created and used for industrial or commercial purposes. Economics of intellectual property .The idea for an invention may be developed on paper or on a computer. by writing or drawing. paintings. collaboration has spawned many inventions. or invention by which it is covered. Now it is easier than ever for people in different locations to collaborate. and software and gives the copyright holder exclusive right to control reproduction or adaptation of such works for a certain period of time. by experimenting. trademarks. patents. Co-inventors are frequently named on patents. style or design of an industrial object from infringement. Collaborative creative processes are frequently used by designers. Briefly explain the various issues in IPR. Brainstorming can spark new ideas. A trademark is a distinctive sign which is used to prevent confusion among products in the marketplace.
which may be called semi-active mode in which transferring activity is in between the activity is in between the active and passive modes. This is actually knowledge transfer. which may only be used by one person at a time. then the technology transfer mode is said to be active. Explain the technology transfer modes in detail. Illustrate with suitable diagrams. The three different types of technology transfer modes are: The Passive Mode The Semi-active Mode The Active Mode . TECHNOLOGY TRANSFER MODES Technology transfer modes have been categorized basically as being passive or active. Intellectual property rights are usually limited to non-rival goods. which refers to the transferor’s role in the application of technology to the solution of the user’s problem.the use by one person does not exclude use by another.Intellectual property rights are considered by economists to be a form of temporary monopoly enforced by the state (or enforced using the legal mechanisms for redress supported by the state). This is compared to rival goods. For example. any number of people may make use of a mathematical formula simultaneously. In this process. that is. or demonstrates the applicability of the technology to the perceived use. the transferring activity goes beyond mere interpretation of the transmitted data and advises the potential user on how to apply the technology. If the transferring activity assists the potential user in the application of technology. namely by a report or oral presentation. then the technology transfer mode is said to be passive. If the transferring mechanism presents the technology to the potential user without assisting the user in its application. 7. such as clothing. goods which can be used or enjoyed by many people simultaneously . There could however be an intermediate also. Some objections to the term intellectual property are based on the argument that “property” can only properly be applied to rival goods (or that one cannot “own” property of this sort).
7. The technology transfer agent (consultant or technology expert) screens available pertinent information for product development.6.8. There is no direct communication or assistance from the originator of the technology to the producer of finished consumer item. In this mode the . also called dissemination mode. The Semi-active Mode In the semi-active mode of [technology transfer the role of technology transfer agent (in addition to self-education or self-retrieval of elements of technology transfer) is somewhat limited. Similar forms of passive technology transfer are self-teaching manuals such as television repair manuals and how-to-do-it guide& for home repairs. He will not actively participate in the application of the technology. The figure demonstrates various steps involved in the construction of the model or a product from procurement of material to fabrication and assembly. is illustrated in Figure 2. Yet thousands of products are made and consumed from this form of knowledge transfer. The Active Mode The active mode technology transfer carries the process through to an actual demonstration as shown in Figure 2. The most familiar and widely used form of passive technology transfer is the published literature. Here the role of transfer agent is only that of an interpreter or communicator.The Passive Mode The passive mode. This is illustrated in Figure 2.
. both parties will arrive at their ‘reservation’ price by some assessment of the costs and benefits they both derive from trade.1 and 5. These factors will depend on the nature of the intellectual property to be exchanged. However. This determines the absolute range over which the price can be negotiated. as well as their negotiating skills and general attitude towards risk and uncertainty. the royalty level will be based on an assessment of the respective valuations of both licensor and licensee of these factions. The essence of this table is again to emphasize the existent of an overlapping range within which other factors play an important role. From Tables 5. Figure 5.1 illustrates this bargaining range. Describe the various factors underlying licensor royalty negotiations in detail. At the outset. Once it has been established that there is scope for trade. 8.2 present the key factors affecting the alternative pricing of intellectual property. from that of the licensee. the rest of the pricing decision revolves around the risk preference and bargaining power of the two parties. that merely sets a maximum and a minimum royalty rate that both would find acceptable. Factors Affecting Royalty Rates In any negotiation for technology transfer. The process of finalizing a specific price depends on the bargaining strength of the two parties.2 it is apparent that various factors on the cost and benefit side of the equation can affect the pricing of a license and fixing royalty rates.1 and 5. so that the financial benefits are acceptable to each side.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. Tables 5-. first from the point of view of the licensor and second.
LBO or Buyout: refers to a strategy of making equity investments as part of a transaction in which a company. business unit or business assets is acquired from the current shareholders typically with the use of financial leverage. How is product classification carried out for financial assistance? ARRANGING FINANCIAL ASSISTANCE: In finance. or expansion of a .9. There are a wide array of types and styles of private equity and the term private equity has different connotations in different countries Types of Private Equity Private equity investments can be divided into the following categories: Leveraged buyout. Venture capital: a broad subcategory of private equity that refers to equity investments made. early development. The companies involved in these transactions are typically more mature and generate operating cash flows. private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. typically in less mature companies. for the launch.
or it may be used to support or implement a process. Funding is needed in the technology transfer process to support the transfer of critical technology for inclusion in a product or process. Growth capital: refers to equity investments. enter new markets or finance a major acquisition without a change of control of the business. terminology.” This is often a problem in management style and practice. CULTURE SHOCK The technology transfer step results in the transfer of a technology from its development to product development and manufacturing. analytical and manipulative techniques. there is “an important property of technological innovations for full-scale production settings that remain to be considered and that is the impact of learning effects on unit production costs and pricing of an innovative product. equipment. Mezzanine capital: refers to subordinated debt or preferred equity securities that often represents the most junior portion of a company’s capital structure that is senior to the company’s common equity. It can be considered as part of a component or module in a product or a product itself for derived demand.” The transferal of information can introduce ambiguities in specifications. Real Estate: in the context of private equity this will typically refer to the riskier end of the investment spectrum including “value added” and opportunity funds where the investments often more closely resemble leveraged buyouts than traditional real estate investments. For example. and priorities to become successful in passing the baton from one to the other. These categories can refer to a number of strategies. most often minority investments.job training to understand the technology and its interdependencies and architecture.” . a change in government regulations or market dislocation). Other Strategies Other strategies that can be considered private equity or a close adjacent market include: Distressed or Special situations: can refer to investments in equity or debt securities of a distressed company. The second dimension “concerns the feelings and attitudes in both organizations [of] R&D and product development engineering [regarding] the two sets of people with different skills. values. etc. in more mature companies that are looking for capital to expand or restructure operations. or a company where value can be unlocked as a result of a one-time opportunity (e. Venture Capital is often sub-divided by the stage of development of the company ranging from early stage capital used for the launch of start-up companies to late stage and growth capital that is often used to fund expansion of existing business that are generating revenue but may not yet be profitable or generating cash flow to fund future growth.business.. Certain investors in private equity consider real estate to be a separate asset class.g. Enumerate the effect of culture stock in technology transfer. The first dimension is “the problem of transferring information about physical phenomena. misinterpretations of meaning. some of which straddle the definition of private equity. and lack of on the. associated with the technology. There are two major concerns in technology transfer viewed in two dimensions: technology and people. 10.
MOT focuses on three levels within the organisation: Individual products and processes. operations) and corporation wide concerns (e. management concerned with issues at the nuts-andbolts level Functional areas (e..g. Technology analysis: a foundation for technological expertise Technology analysis. The expectation is that increased sales would ensure future cost reductions from increased volume of output due to increased sales.The Payoff The payoff of a timely technology can make a firm gain a market edge by lowering price. i. selecting a corporate destiny and guiding the corporation through a turbulent technological landscape Six basic tools cover the essence of technology analysis: A standard format for viewing and describing individual technologies A classification of technologies A table of technological interactions A cascade of trends describing technological change A chart of technological breakthrough zones A profile of social preferences with respect to technology ..g. quality and productivity) Strategy. even with a strategy that places it below production cost.e. i.. a new field of inquiry seeking is a comprehensive approach to technology.e..
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