Chapter 1

Introduction to Technology Management

BJTH3063 Chapter 1

CHAPTER OUTLINE
Importance of managing technology Definition of management, technology and technology management Framework of technology management Role of firms in technology environment Key decisions in managing technology Process of managing technology Factors promoting technology management Technology classification
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Importance of managing technology

The rapid pace of technological change demands a crossdiscipline approach to take full advantage of technological opportunities. The rapid pace of technological development and the increasing sophistication of consumers have shortened product life cycles.

The lead-time from idea to market is being reduced by the emergence of new or altered technologies. Increasing international competition demands that organization must maximize competitiveness by effectively using new technologies. As technology changes, the tools of management must change, but the process of determining what those new tools should be is still in early stage.
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What is management?
Art of carrying a business. Involves directing and controlling an organization and steering it toward achieving its objectives. Needs an understanding of human and organizational behaviour. Include planning, organizing, staffing, motivating and controlling functions.

What is technology?
The practical implementation of learning and knowledge by individuals and organizations to aid human endeavor. Technology is the knowledge, product, processes, tools and systems used in the creation of goods or in the provision of services (White & Bruton, 2007). All the knowledge, products, processes, tools, methods and systems employed in the creation in goods or providing services (Khalil, 2000).
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Definition of Technology Management

A field that links different disciplines to plan, develop, implement, monitor, and control technological capabilities to shape and accomplish the strategic objectives of an organizations (White & Bruton, 2007). An interdisciplinary field that integrates science, engineering and management knowledge & practice (Khalil, 2000).

Technology management Management technology

Refers to the technology used to manage organizations or certain functions Eg: MIS, ICT, E-commerce
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Framework in Technology Mgt

Technology management creates a linkage among science, engineering & management disciplines. Science & Engineering Disciplines Business Administration Disciplines

Technology Mgt

The ability to become a competitive enterprise and sustain economic growth is affected by the economic system, technical capabilities & trade conditions.
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Role of firms in technology environment

The drivers of change in the environment.
By creating new products, processes and materials, they alter the rules of competition, transform industries and create new industries.

The beneficiaries of change initiated by others.

By adopting more efficient technologies into their products and processes, performance can be improved and value can be created.

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The facilitators of technology development

By investing in other parties research projects.

The victims of technology change

When a competitor introduces a new product or when new technology transforms industries, corporations may face the threat of obsolescence.

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Key decisions in managing technology

The firm must determine if it wants to be a leader or follower in its industry.
Both has own benefits, but the choice will result in the firm taking radically different measures.

The firm must also determine whether it will develop its own new technology or buy the technology.
Each approach has benefits and drawbacks that need to be weighed by the firm itself.
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The firm needs to determine the scope of products or services it wants to offer.
Determine how it can leverage its technology and innovations to create a total platform of products and processes.

The firm must also determine the scale of products or services.

How it will price the products, where it will market the products, and where it will manufacture the products.

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The process of managing technology

Consider the example of iBOT: Invented by Dean Kamen, who saw how difficult it was for someone to handle a wheelchair in settings that were not flat, such on stairs. He sought to build a chair that could stand up and balance like human -- A wheelchair that could carry a person up and down stairs.
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The iBOT case:

The engineers need to design the product The financial experts have to underwrite the costs The marketing experts have to test the product, ensure actual acceptance of product and educate individuals the benefits of this product... It not only took the vision of one person to see a different solution, but it took an entire organization to develop the product!
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Factors that promote Technology Management Speed of technological change Change in scope

MOT
Trade blocs Changes in competition
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Classification of Technology
New Technology Emerging Technology High Technology

Appropriate Technology

Medium Technology

Low Technology

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New Technology
Any newly introduced or implemented technology that has an explicit impact on the way a company produces products or provides services. The technology could be around for many years, but if it is newly introduced into an organization, it is considered a new technology. Examples?
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Emerging Technology
Any technology that is not yet fully commercialized but will become so within about 5 years. It may be currently in limited use but is expected to evolve significantly. Examples? Virtual TV

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High Technology
Refers to the advances or sophisticated technologies. Utilized by a wide variety of industries having certain characteristics. High tech companies:
Employs highly educated people Technology is changing at a faster rate Competes with technological innovation High levels of R & D expense
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Low Technology
Refers to the technologies that have permeated large segments of human society. Low technology companies:
Employs people with relatively low level of education Uses manual/semi automated operation Low R & D expense Technology base used is stable with little change Products to satisfy basic human needs
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Medium Technology
Comprises a wide set of technologies that fall between high and low technologies. Refers to mature technologies that are more accommodating than others to technology transfer. Examples?

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Appropriate Technology
Technology that is balanced between the level of technology utilized and the resources required for its optimal use. The technology could be at any level low, medium or high. Results in better use of labour resources and better production efficiency.
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Tacit vs. Codified Technology

Non articulated knowledge No uniformity in presentation Developed by the know-how Transmitted by demonstration or observation, followed by simulation. People know how technology works but not why Easier, more precise and less time-consuming to transfer when it is codified Complete mastery means understanding both the explicit codified and implicit tacit knowledge.

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