1

Unit 1 : Evolution Of Technology

DEFINITION:

⦁ The branch of knowledge that deals with industrial arts, applied science,
or engineering; the terminology of an art or science or a technological process, invention, method
and the like and some of the ways in which a social group provides themselves with the material
objects of their civilisation.

⦁ Technology is defined to be know how physical procedures used to

produce products and services.

⦁ Technology is defined as all the knowledge, products, processes, tools,

methods and systems employed in the creation of goods or in providing services. It is the way to do
things.

⦁ Technology is the systematised knowledge applied to alter, control or

order elements of our physical and social environment.

Meaning:

Know how

Used to
Technology Physical things Products and
produce services

Procedures

⦁ Know how : Knowledge and judgement of how, when and why to employ equipment,
processes and procedures.

⦁ Knowledge includes craftsmanship, experience which lies at the heart of economic progress.

⦁ Physical Things include: Equipment, Tools.

⦁ Procedures: Rules and techniques for operating the equipment and performing the work.

Technology is the practical implementation of knowledge, a means of aiding human endeavour.

 2

EVOLUTION OF TECHNOLOGY:
Three main time periods :

⦁ Stone age: Age of Early human where tool creation and use was prominent.

⦁ Bronze age : Most technology was outside the metals

⦁ Early writing

⦁ Basic government

⦁ Trade

⦁ Agriculture and ox-plows

⦁ The wheel

⦁ The Loom

• Bronze.

⦁ Iron age :

Much better for weapons and armor :

⦁ Very abundant, and inexpensive

⦁ Allowed for more permanent settlement

⦁ Better militaries

Industrial Revolution (@1750 – 1850) :

• Large-scale automation comes into being

• Factories and mass-production processes

• Increased use of steel

• Advancements in transportation

Information age:

⦁ The Information Age (also known as the Computer Age, Digital Age, or New Media Age) is a ⦁
historic period beginning in the 20th century

⦁ Rapid shift from traditional industry that the ⦁ Industrial Revolution brought through
industrialization to an economy primarily based upon ⦁ information technology.
 3

According to Masefield Books

Technology evolves in three stages:

⦁ Tools : A tool provides a mechanical advantage in accomplishing a physical task, such as an

arrow, plough, or hammer that augments physical.

Later animal-powered tools such as the plow and the horse, increased the productivity of food
production about tenfold over the technology of the hunter-gatherers.

⦁ Machine : A machine is a tool that substitutes part of or all of the element of human
physical effort, requiring only the control of its functions.

Machines became widespread with the industrial revolution, though windmills.

Automation : The automation is a machine that removes the element of human control with an
automatic algorithm. Examples of machines that exhibit this characteristic are ⦁ digital watches,
automatic telephone switches, ⦁pacemakers, and computer programs.

CHARACTERISTICS OF TECHNOLOGY:
Resources :

Money, Time, People, Collateral assets.

Transferability :

Technology transfer is not easy. Knowledge is always scarce and is sticky. Between the sender and
receiver during the communication, there is no perfect correspondence.

Opportunity :

Technology development takes place when human beings perceive an opportunity for improvement
due to intrinsic or economic reasons.

Appropriability :

In certain instances, technological development is for economic motives, wherein individuals will
pursue development only to the extent that there is a reasonable assurance; the fruits of their
labour will flow back to be developers.
 4

EFFECTS OF NEW TECHNOLOGY :

⦁ Change in technology.

⦁ Change in scope.

⦁ Change in competition.

⦁ Change in asset valuation.

⦁ Change in focus for National competitiveness.

⦁ Change in emphasis of knowledge management.

TECHNOLOGY INNOVATION :
Technological innovations comprise new products and processes and significant technological
changes of products and processes. An innovation has been implemented if it has been introduced
on the market (product innovation).

⦁ Technology creation and exploitation requires a chain of events starting with inventions in
labs and ending as sales at market place.

⦁ Types of Innovation:

⦁ Competence enhancing Vs Component.

⦁ Architectural Vs Component.

⦁ Product and Process innovation.

⦁ Radical Vs Incremental.

⦁ Technical Vs Social Innovations.

⦁ Innovation process has been viewed as a sequence of separable stages.

⦁ Basic variations of innovation are

⦁ Technology push

⦁ Market pull

⦁ The technological innovation begins with invention.

TECHNOLOGY INVENTION :
 5

Invention ( the creative process) only produce “ideas: they are not useful while they are reduced to
practice and use, which is the process of innovation.Roberts and Wainer have identified five types of
people who are needed for technological innovation.

⦁ Idea generator : Individual who creates.

⦁ Entrepreneur : the person who carries ‘the ball’.

⦁ Gate Keepers : Researchers who maintain a broad network of outside contacts, both with
people outside the organisation and the technical literature; they are not appointed people but the
wise research manager recognise them and their function.

⦁ Program managers.⦁ Sponsor : the senior managerial person also provides financial and
moral support.

TECHNOLOGY DIFFUSION :
Diffusion is the process of closing the gap between what people don’t know and what they can
effectively put to use.

Diffusion is the process by which a new idea or new product is accepted by the market.

Diffusion strategies address both internal and external customers are influenced by several factors
like

⦁ Organizational climate.

⦁ Innovation.

⦁ Technology substitution.

⦁ Bandwagon effect.

⦁ Opinion leaders.

⦁ Change agents.

Pattern of technology diffusion :

⦁ Innovation stage.

Innovation get diffused within innovative organizations.

⦁ Consolidation stage.

Diffusion takes place among major competitors.

⦁ Mature Technology stage:.Diffusion spreads to laggards.

Characteristics of Technology Diffusion :

⦁ Diffusion is not one-way traffic. The innovator can also learn from imitator.
 6

⦁ Diffusion is not once-for-all occurrence. It is cyclical in nature.

⦁ Diffusion can take place in varying degrees :

Intra Firm – diffusion of lowest degree

Inter Firm – diffusion of medium degree

Economy wide – diffusion of highest degree.

⦁ Diffusion can take place in a variety of forms like product, service or a process, use &
production, stock of technological knowledge.

⦁ Standard measures :

⦁ Awareness – building

⦁ Research

⦁ Technical assistance and consultancy

⦁ Training

⦁ Financial support

⦁ Personnel exchange and the support of R&D personnel.

⦁ Standardization.

REVOLUTIONARY INNOVATION :
Revolution : Forcible overthrow for an entirely new system.., drastic, disruptive, far-reaching,
momentous change.

⦁ Revolutionary innovation focuses on orientation of tomorrow’s customers and is associated

with uncertainty.

⦁ Revolutionary innovation is optimal under :

High performance products.

Long product life cycles.

A relatively long window of market opportunity.

Relatively high sales.

Stable margins.

Relatively flat development costs.

 7

Scenarios under which revolutionary innovation can guarantee a sustainable advantage :

⦁ If you can secure ironclad patent protection

⦁ If you can set a proprietary industry standard

⦁ If you can use your lead to establish such a beachhead that even if better options become
available, your customers will find it too much of a hassle to switch.

EVOLUTIONARY INNOVATION :
Evolution : Gradual change, adaptation, progression, metamorphosis.

Evolutionary innovation focuses on orientation towards today’s customers. Evolutionary innovation

plans for the world as it could be and begins calculated migration to new ideas while understanding
the world as it is today.

PRODUCT INNOVATION :
Creation and subsequent introduction of a good or service that is either new, or improved on
previous goods or services of its kind.

Anatomy of a product can be studied along three dimensions :

⦁ Core benefits – these are the basic functions and attributes meant to be provided by the
good/ product.

⦁ Tangible specifications:

These define shape, size, appearance etc., of the product.

⦁ Augmented Features:

These are the additional benefits or utilities associated with the product like after sale service,
perceived benefits of a brand etc.,

Product design refers to complete specification of a product to be manufactured and contains

following details :

⦁ Functions/attributes

⦁ Weight,size,appearance

⦁ Engineering/technical specifications

⦁ Constituents/components/parts of final product

Product design has direct impact over selection of processing equipments and methods, plant layout
and in process material flows.

Reasons for change in product design :

 8

⦁ Change in customer requirements

⦁ Adding more functions/attributes

⦁ Increasing saleability (appearance etc.,)

⦁ Enhancing ease in manufacturing

⦁ Tapping new markets or market segments

⦁ Increasing product’s life cycle

⦁ Enhancing convenience to use

⦁ Technological advancements and progress.

⦁ Improving product reliability and quality.

⦁ Gaining competitive edge

⦁ Sustaining competitiveness

⦁ Reducing processing and manufacturing costs

⦁ Standardization and simplification efforts in an organization.

PROCESS INNOVATION:
A Process is combination of facilities, skills and technologies that are used to produce products or
provide services.

A process usually consists of :

⦁ A set of tasks

⦁ A flow of material and information that connect these tasks and

⦁ Storage of material and information.

These tasks transform inputs to outputs. Thus process results into change. Process changes i.e.,
converts inputs into outputs. Inputs being land, labour, capital etc., output being goods, services.

Process Design :

⦁ It means the complete delineation and description of specific steps in the production
process and the linkages among these steps that will enable the production system to produce
products / provide services as per the goals / policies of the organisation.

⦁ Process design directly influences plant layout effecting processing wastage and quality of
output.

⦁ The process design decision influences processing time, in-process-inventories and

processing costs.
 9

⦁ It influences capability of an organisation to make timely deliveries.

⦁ A cost effective process design helps in procuring job work/ contract work.

Factors determining change in process design/redesign:

⦁ Controlling and reducing process wastage

⦁ Improving quality of output, process efficiency, ease in manufacturing and productivity

⦁ Controlling and reducing work in process inventories

⦁ Reducing processing time and cost

⦁ Ensuring timely deliveries

⦁ Reducing health hazards and improving safety of workforce

⦁ Change in product design or overall technological advancements

⦁ Gaining and sustaining competitiveness

Steps in Process innovation:

⦁ Proper planning as to focus on the area of innovations; deciding about use of technological
tools for mechanisation, computerisation and automation; setting targets, goals; deciding timeframe
of commercialization etc.

⦁ Creating a multifunctional team of technical , production and maintenance department

⦁ Selecting a small group of operators and workers, seeking their participation in process
innovation through communication, counselling, training and rewards etc.

⦁ Pilot run of the new process

⦁ Observations and improvements in the new process based on feedback from pilot testing.

⦁ Large scale training of the entire workforce.

⦁ Commercial use of new processes.

Tools :

⦁ Developing Assembly Charts for studying conceptual frame work of material flow

⦁ Developing Process Charts for studying conceptual framework of process flow

⦁ Computer Aided Designing, Computer simulation

⦁ Time Study for comparing time taken for various operations and tasks

⦁ Value Engineering and Analysis

⦁ Business process Reengineering

 10

⦁ Benchmarking

⦁ Using Change Management Strategies

⦁ Financial Appraisal.

STRATEGIC IMPLICATIONS OF TECHNOLOGY:

INTRODUCTION:

⦁ The underlying elements of any organization include its purpose or purposes, its vision, its
objectives, its strategies, its operations and its management of the process from purposes to
customer satisfaction.

⦁ A view of MOT from the perspective of strategy, shows the extent to which MOT in reality is
congruent with managing the enterprise.

Strategic Issues:

• Understanding the scope of managing technology

• Managing technology-different levels

• Adding value with technology

• Developing a technology policy

• Bridging the gap between technology policy and results

• Precursors to technology strategy

• Including technology in business strategy

• Rationalizing strategy and operations

• Managing the decision-making processes

• Systems thinking-the imperative

• Negative impact of single-issue management

• The role of technology in achieving competitive advantage.

1. During the strategic-planning craze, technology was essentially ignored. Elaborate

2. strategic plans were developed without any strategy.

3. Volumes were prepared but were seldom reviewed after approval.

 11

4. Strategic-planning processes yielded volumes of data instead of information, an interjection

of operational detail but insufficient as an operational plan, and prepared on a basis of at least
questionable, if not false, assumptions.

5. One point is certain-technology cannot be ignored and cannot be given short shrift.

6. That strategy begins with an understanding of the basics of MOT and the role of technology
in the business enterprise.

TECHNOLOGY:
INTRODUCTION:

The word ‘technology’ has a wider connotation and refers to the collection of production
possibilities, techniques, methods and processes by which resources are actually transformed by
humans to meet their wants. Ferré (1988) has defined technology as “practical implementations of
intelligence”.

However, Gendron (1977) has provided a more comprehensive definition:

“A technology is any systematized practical knowledge, based on experimentation and/or

scientific theory, which is embodied in productive skills, organization, or machinery”.

⦁ The role of technology in fostering economic growth of nations and enhancing their
industrial competitiveness has been widely recognized, through its domineering influence over
industrial productivity.

⦁ Further, technology has emerged as the most important resource that contributes directly
to socio-economic development.

⦁ Hence, technology is viewed from various perspectives: as an ‘engine for economic

development’, as a ‘strategic resource’, and as a ‘competitive weapon’.

⦁ This necessitates effective management of technology - at both national and firm levels.
Technology Management (TM), which inter alia aims at planning and developing the technological
capabilities of an organization or a nation, has now occupied the centre stage of decision-making.

STRATEGY ALLIANCES:
DEFINITION:
 12

"A global agreement among two or more indepent firm to cooperate for the purpose of achieving
common goal such as a competitive advantage or customer value creation while remaining
independent".

MOTIVES:

⦁ adding value to product

⦁ improving access

⦁ strengthening operations

⦁ adding technological strength

⦁ enhancing strategic growth

⦁ building technologically financial strength

KEY FACTORS OF STRATEGIC ALLIANCE:

• Select the proper partners for the intended goals

• Share the right information

• Negotiate A deal that includes risk and benefit.

• Come to a realistic agreement on the time.

• Mutual, flexible commitment on what's suitable to change, measure and share within each
partner's culture.

• Respect and protect the brand of each partner.

 13

TYPES OF STRATEGIC ALLIANCES :

• Joint Venture: an agreement by two or more parties to form a single entity to undertake a certain
project. Each of the businesses has an equity stake in the individual business and share revenues,
expenses & profits.

• Global Strategic Alliances: working partnerships between companies (often more than 2) across
national boundaries & increasingly across industries. Sometimes formed between company & a
foreign government, or among companies & governments

• Equity strategic alliance: an alliance in which 2 or more firms own different percentages of the
company they have formed by combining some of their resources & capabilities to create a
competitive advantage.

• Non- equity strategic alliance: an alliance in which 2 or more firms develop a contractual-
relationship to share some of their unique resources & capabilities to create a competitive
advantage.

ADVANTAGES:

• Improve organization efficiency.

• Offer to access new markets and technologies.

• Reduce the impact of risk.

• Learning from partners.

 14

DISADVANTAGES:

• Significant differences between the objectives.

• Irreconcilable differences in business culture and management styles.

• Loss of control over such important issues as product quality, operating costs, employees, etc.

CONVERGENT AND DIVERGENT CYCLE:

CONVERGENT CYCLE:

⦁ Technological change can be convergent.

⦁ It is a process of incremental innovation and improvement that optimizes the ability of the
organization to succeed in the existing environment.

⦁ It enables us to work faster,more efficiently and produce new products more regularly in
order to survive.

⦁ There is a continuity of the product and the framework of the organisation in this cycle.

⦁ Primarily responsible for reduction in the time required for new model developments in the
automobile industry.

⦁ This not only reflects the changes taking place but also the dramatic increase in the rate at
which changes are taking place.

DIVERGENT CYCLE:

⦁ In this the frame work of the organisation undergoes discontinuities.

⦁ whether it is in response to events over which the corporation has no control, like
deregulation,major shift in economic policies,nationalisation or events related to radical changes in
technology like product life cycle shifts, new process technologies,radical innovations etc.

⦁ This process includes organisational re-formation or transformation.

⦁ The development of inexpensive and reliable integrated circuits is an example of innovations

that can revolutionise an industry.

⦁ The other example is Japanese industry studied the developments and potential of
integrated circuits and saw an opportunity in using this technology for watches.

⦁ They believed that the new technology could be developed into a cheap and reliable
substitute to the mechanical system in traditional watches.

⦁ As a result,they successfully developed technology for watches using inexpensive integrated

circuits. This predicts the high use of integrated circuits in watches which transformed the Japanese
industry.
 15

THE BALANCED APPROACH:

⦁ For an organizational transformation effort to be successful, there are three components
that need to be addressed, namely: people, process, and technology.

⦁ To find long-term success, we must focus on all three areas.

⦁ Otherwise, we become out of balance, and our efforts will immediately stall.

TECHNOLOGY FOCUS:

A fool with a tool is still a fool. – Anonymous

⦁ The most common mistake we make is placing too heavy an emphasis on technology. A tool
cannot tell how to run your business; and if people don’t have a solid understanding of how to
approach and configure a tool,they wil be in trouble.

⦁ we move to a new tool with our old, cumbersome way of working; and a new tool with
new capabilities really shouldn’t be designed or implemented in the same way.

⦁ When you make the decision to purchase new technology, you must set aside time to figure
out what the new way of working will look like.

⦁ Otherwise, you will waste your precious time and energy rolling out something that people
end up unhappy with, and it’s difficult to recover from a less-than-stellar implementation – even
with great technology.

PEOPLE FOCUS:

⦁ The second most common mistake we make is to place too much emphasis on training.

⦁ If you focus solely on training, you end up with an environment where people understand
the theory, but they don’t quite know how to put that theory into action.

PROCESS FOCUS:

⦁ Process is generally the area that receives the least amount of focus.

⦁ Training teaches our staff the “what and why”, and adding a focus on process gives us the
ability to say “how” are we going to work in a way that’s consistent, repeatable, and efficient.

⦁ Process, by itself, however, does not do the trick. One must pair it with good technology
that helps you automate your processes.

⦁ Otherwise, one would be bogged down in manual work and spend too much time that
could be better used in other ways.

FINDING BALANCE:

⦁ Performing an organizational assessment is another good way to get at the heart of where
things have gone off track and build a roadmap to help you start to act in getting items resolved.
 16

⦁ Other techniques include: following up training with an all-day strategic planning review
session or follow-on, weekly coaching.

⦁ Another great technique to add some balance is to pair training and/or technology
implementation with process design sessions.

A few tips for developing a balanced approach are:

1. Look for the Right Bells and Whistles:

Many organizations find themselves salivating over highly sophisticated tools only to wind up
bogged down by complicated interfaces and uneasy adoption.

2. Invest in Training:

Demonstrations and trainings are a great opportunity to walk through a tool’s functionality while
providing direct evidence of its benefit.

3. Make Sure to Gather Feedback:

These efforts will make for a more collaborative, inclusive workplace and environment and
encourage an informed approach to technology.

4. Leverage Millennial Talent:

Gathering generation’s input could help organizations distinguish itself as an employer of choice for
years to come.

5. Don’t Scare Suppliers Away:

Dependence on inflexible technology limits the potential supplier pool and could lead to poor
interpretations of whatever results you do receive.

6. Keep your Current Systems and Processes in Mind:

Look for opportunities to augment – rather than replace – your business’ infrastructure.

You’ll avoid serious technological mishaps and enjoy a more streamlined implementation process.

7. Look to the Future:

⦁ Technology evolves more and more quickly with each passing year.

⦁ Today’s most innovative and intuitive tools will eventually go the way of whichever tools
they replaced.

⦁ Gathering feedback from users, scouring industry publications, and maintaining an open
mind could make the difference in discovering the next big thing.
17