Technology

Management
Group Members:

Definition
Technology
Technology is the making, usage, and
knowledge of tools, machines, techniques,
crafts, systems or methods of organization
in order to solve a problem or perform a
specific function. It helps humans adapt to
their natural environment.

Technology Management
Set of management disciplines that
allow organizations to manage their
technological fundamentals to create
competitive advantage. [1]

Role of Technology
Providing product's innovative features, improved
performance, and the very materials that goods are
made from [2]
Plays a crucial part in process to produce and/or deliver
the product, and increases productivity by automating
tasks. For example digital technology to produce and
deliver published material or indeed the use of ERP to
assist with the management of processes across the
enterprise and also between enterprises.
Information Technology has helped reduce cost, drive
agility, enhance Quality of Service, Governance, and
Risk Management. For instance, Informed decisions by
tracking and reporting business metrics has helped
organizations act faster,
and interpret client or
consumer behavior.

Role of Technology
Management
To understand the value of certain
technology for the organization and to be
able to argue when to invest on
technology development and when to
withdraw.
Technology
Technology
Technology
Technology
Technology

strategy
forecasting
road mapping
project portfolio
portfolio [3]

Technology Strategy
First to market
Long-term first-to-market strategy success
requires more than a technology
breakthrough. It is also necessary either to
continue producing new products based on
technological and market innovation.
For instance, VisiCalc, a company that
developed the first spreadsheet software
program for personal computers went
bankrupt even after initial success as it
failed to develop an improved version or
second product.

Contd..
Fast Follower . Overtaker
Innovative imitation by offering a similar
product that can be differentiated from the
first entrant's offering
In the field of computerized axial
tomography, GE differentiated its offerings
from developer EMI's not only through
improved performance but also through its
well-respected trademark, extended
warranties , application engineering,
customer training, and endorsements by

Contd..
Cost Minimization
The cost minimization strategy is effective
for mass-produced goods, where significant
economies of scale can be realized through
process innovation, i.e., superior processengineering and value analysis skills.
This strategy has been successfully used
by the Japanese and other Pacific Rim
countries to gain dominant market share in
consumer electronics, IBM-compatible PC
clones, and even the fashion industry.

Contd..
Market Niche or Specialist
To succeed, a market niche must be carefully
selected and followed. If the market niche is too
small, it will be saturated within a relatively
short time, since the opportunity for growth is
limited.
For example, Control Data, to increase sales,
was forced to abandon its original profitable but
limited niche of data acquisition and control
systems and compete directly with IBM in data
processing, an area with low profits and
fluctuations in market share.

Technology Forecasting
Process of predicting the future
characteristics and timing of
technology. When possible, the
prediction will be quantified, made
through a specific logic, and will
estimate the timing and degree of
change in technological parameters,
attributes, and capabilities.

Technology Forecasting
Methods
Methods based on
Numeric data
extrapolates history by generating statistical fits to
historical data
A few numeric methods deal with complex
interdependencies

Judgmental methods
Judgmental forecasting may also be based on
projections of the past, but information sources in
such models rely on the subjective judgments of
experts
The Delphi method uses a panel of individuals who
make anonymous, subjective judgments about the
probable time when a specific technological

Contd..
Technology scouting
Companies assign part of their staff or
employ external consultants to gather
information in the field of science and
technology and through which they
facilitate or execute technology sourcing.
The method follows:

Identifying emerging technologies

Channel technology related information into an
organization
In a corporate context supports the acquision of
technologies

Technology Roadmapping
It is a plan that matches short-term and longterm goals with specific technology solutions to
help meet those goals. [4]
It applies to a new product or process, or to an
emerging technology.
Uses
It helps reach a consensus about a set of needs and
the technologies required to satisfy those needs
It provides a mechanism to help forecast technology
developments
it provides a framework to help plan and coordinate
technology developments

Roadmapping Process
Preliminary Phase
satisfy essential conditions, provide leadership /
sponsorship and define the scope and boundaries for the
technology roadmap.

Development Phase
identify the product that will be the focus of the
roadmap, identify the critical system requirements and
their targets, specify the major technology areas,
specify the technology drivers and their targets, identify
technology alternatives and their timelines, recommend
the technology alternatives that should be pursued and
create the technology roadmap report.

Follow up Activity Phase

This is the moment when the roadmap must be
critiqued, validated and hopefully accepted by the group
that will be involved in any implementation

Contd..
The process of technology
roadmapping fits into corporate
strategic planning , technology
planning and the business
development.
Three critical elements should be
connected:
Needs
Products

Technology Project Portfolio

a set of projects under development

Technology Portfolio
a set of technologies in use

Technology Transfer
It is the process of sharing of skills,
knowledge, technology, methods of
manufacturing etc among others to
ensure technological development is
accessible to a wider range of users,
who can further develop and exploit the
technology into new products.
Example
Mutliflow Computer Inc.
Open Source Software development,
Research into Nuclear fusion

Technology Price
Relationship
Whenever a company has a
technological advantage, it is able to
command a premium price for its
technology.
But, the value of the technology, as well
as the commanded price, will decline
eventually.
Thus, one of the factors of vital concern
in proper management of technology is
the timely creation and introduction of
technology in the market place.

Time Based Competition

TBC focuses on the entire value-delivery
system to reduce the time required to
deliver a product or service.
Fast food
competitive
sector.

firms use time as their

advantage in the service

Manufacturing
organizations
have
switched to just-in-time (JIT) systems to
compress time wasted in production and
facilitate quick response t customer
demands.

Diffusion of Innovation
[Model]
It is the study of how, why, and at what
rate new ideas and technology spread
through cultures.
Rogers defines an innovation as "an
idea, practice, or object that is perceived
as new by an individual or other unit of
adoption".
Diffusion is the process by which an
innovation is communicated through
certain channels over time among the
members of a social system. [5]

Adoption of Innovation and

S curve

Contd..
In broad terms the "s" curve suggests four phases of a
technology life cycle - emerging, growth, mature and
aging.
Most new technologies follow a similar technology
maturity lifecycle describing the technological maturity
of a product. This is not similar to a product life cycle,
but applies to an entire technology, or a generation of a
technology.
Technology adoption is the most common phenomenon
driving the evolution of industries along the industry
lifecycle. After expanding new uses of resources they
end with exhausting the efficiency of those processes,
producing gains that are first easier and larger over
time then exhaustingly more difficult, as the technology
matures.

Hype Cycle [Model]

Gartner's Hype Cycles offer an
overview of the relative maturity of
technologies in a certain domain.
They provide not only a scorecard to
separate hype from reality, but also
models that help enterprises decide
when they should adopt a new
technology.

Five Phases

"Technology Trigger" The first phase of a hype cycle is the "technology trigger" or
breakthrough, product launch or other event that generates significant press and
interest.

"Peak of Inflated Expectations" In the next phase, a frenzy of publicity typically

generates over-enthusiasm and unrealistic expectations. There may be some
successful applications of a technology, but there are typically more failures.

"Trough of Disillusionment" Technologies enter the "trough of disillusionment"

because they fail to meet expectations and quickly become unfashionable.
Consequently, the press usually abandons the topic and the technology.

"Slope of Enlightenment" Although the press may have stopped covering the
technology, some businesses continue through the "slope of enlightenment" and
experiment to understand the benefits and practical application of the technology.

"Plateau of Productivity" A technology reaches the "plateau of productivity" as the

benefits of it become widely demonstrated and accepted. The technology becomes
increasingly stable and evolves in second and third generations. The final height of
the plateau varies according to whether the technology is broadly applicable or
benefits only a niche market.

Contd..
Establishes the expectation that most
technologies will inevitably progress
through the pattern of over enthusiasm
and disillusionment
Provides a snapshot of the relative
maturity of technologies within a certain
segment of the Industry, such as a
technology area, horizontal or vertical
business market, or a certain
demographic audience
Has a simple and clear message:
Companies should not invest in a
technology just because it is being
hyped, nor should they ignore a
technology just because it is not living
up to early over expectations

Conclusion
The function of technology assessment is all the more
indispensable in order to match scientific and technical
effort to the specific circumstances of every company,
and to shape its overall development.
Companies have successfully reduced costs by
examining business processes and eliminating actions
that customers do not perceive as valuable.
A key challenge for both company leaders and
technology staff, however, is shifting focus from
projects centered on cost reductions to projects that
develop innovative products and drive revenue. Both
companies and consumers have benefited from
technology-driven improvements such as online orders,
ticketless travel and just-in-time inventory
management.

References

Technology Management, retrieved from http://

en.wikipedia.org/wiki/Technology_management, retrieved on
29/03/12

Role of Technology, retrieved from http://

openlearn.open.ac.uk/mod/oucontent/view.php?id=399417&section=3.7
, retrieved on 29/03/12

Technology Management, retrieved from http://

www.referenceforbusiness.com/encyclopedia/Str-The/Technology-Manage
, retrieved on 29/03/12

Technology Roadmapping, retrieved from http

://www.technologyroadmapping.com/, retrieved on 29/03/12

Diffusion of Innovations, retrieved from http://

www.stanford.edu/class/symbsys205/Diffusion%20of%20Innovations.htm
, retrieved on 29/03/12