Management of

Technology
Prof.V.Seshadri
SVKM’s NMIMS
 “Colaba RMD goes hi-tech for
an accurate forecast” - TOI Jan
23rd . 2011
• The Colaba regional metrological
department (RMD) has embraced
advanced technology to give
Mumbaikars the latest weather
updates.
• Doppler Radar
• Digital Synergie system
• Manual, numerical, digital, satellite,
sensor input sources
• Collation of the coded data onto a
server, decoding, integration and
analysis is done by the computer
based new digital synergie system
V.Seshadri MOT Ref 1 Ch 1& 2 2
 Technology behind new
products
– TOI Jan 23rd . 2011
Product Technology Purpose
Smart Cane Echolocation; Li ion Guide blind persons
Ultrasonic Haptic battery; AD conversion;
Echolocation; AD Mine workers; Fire
Helmet transducer;
conversion; IC; Silion
transducer; fighters, Blindsuffering
people
Bionic Eye sensor device Video
chip signal processing, Enables those
IC; Silion chip
Ophthalmology, from Retintis
microprocessor, sensors pigmentosa to see

V.Seshadri MOT Ref 1 Ch 1& 2 3

 Emerging Technology –
source -Advanced Materials and Processes of ASM International, USA-
Dec 2010

• Leaf skeleton made into iron carbide by a

coating process, which gives it the magnetic
and conducting properties of iron carbide
• Super strong Aluminum by treating 7075
aluminum to create nano meter sized cluster
of atoms within the grains and at grain
boundaries. The new material was twice as
strong as Aluminum 7075 while retaining
ductility.
• Strongest organic nano material: Used a simple
dipeptide, consisting of 2 amino-acids , to
form spherical nano structures. This is the
first bio inspired nano material known to date
that is mechanically as strong as steel.
Applications include bullet proof vests, space
vehicles, aviation and
V.Seshadri replacing
MOT Ref 1 Ch 1& 2 metallic 4
medical implants.
Find your voice again – – HT 24th Jan 2011

Voice Prosthesis
• It is a one way valve that directs air
from the lungs into the mouth
during expiration
• It consists of a membrane, a coating
of anti microbial agents such as
Silver Oxide.
• Patient who is unable to speak due to
throat cancer can now do so thanks
to the new device.
V.Seshadri MOT Ref 1 Ch 1& 2 5
 Technology
• the practical application of science to
commerce or industry
• the discipline dealing with the art or
science of applying scientific
knowledge to practical problems
• Refers to the theoretical and practical
knowledge, skills and artifacts that
can be used to develop products,
process and services as well as
production and delivery systems
• V.Seshadri MOT Ref 1 Ch 1& 2 6
 Technology –contd.
• Technology can be defined as all the
knowledge, products, processes,
tools, methods and systems
employed in the creation of goods
or in providing services.
• Technology can be embodied in
people, materials, cognitive and
physical processes, plant,
equipment and tools
• Criteria for success of a technology is
technical rather than commercial.
V.Seshadri MOT Ref 1 Ch 1& 2 7
 Technology -contd
• Technologies are the outcome of
development activities undertaken
to put inventions and discoveries to
practical use.
• The invention of the transistor(1947),
I.C. (1959) and Microprocessor
( 1971) gave rise to successive
generations of new technologies in
the semiconductor industry that in
turn led new applications in the
telecom , computing and
automation areas.
V.Seshadri MOT Ref 1 Ch 1& 2 8
 MOT 1/2
1.It is an inter-disciplinary field that integrates
Science, Engineering and Management
knowledge and practice.
2.Focus is on technology as a primary factor
in wealth creation – encompassing
knowledge, intellectual capital, effective
exploitation of resources, preservation of
environment, raising standard of living,
improving ‘quality of life’ apart from
generating money.
3.Managing technology implies managing the
systems that enable the creation,
acquisition and exploitation of
technology
V.Seshadri MOT Ref 1 Ch 1& 2 9
 MOT – 2/2
4. Research, Inventions and
development are essential
components of MOT
5. Technology generates wealth when

it is commercialized or used to
achieve a desired strategic or
operational objective for an
organization.

V.Seshadri MOT Ref 1 Ch 1& 2 10

 The interdisciplinary nature of
MOT
• MOT treats technology as the seed of
the wealth creation system.
• Important aspects of this system are:
a)Natural Science
b)Social Science
c)Industrial practice
d)Business theory
e)Engineering


V.Seshadri MOT Ref 1 Ch 1& 2 11

 Basic Concepts – contd.
• Scientific Research: Investigation
carried out for a certain purpose
using scientific tools and based on
scientific laws
• Basic Scientific Research: Activities
involved in generating new
knowledge about physical,
biological and social phenomena.
• Applied Scientific Research: Activities
geared towards solving particular
V.Seshadri MOT Ref 1 Ch 1& 2 12
 Technology -contd
Technology consists of three
interdependent, codetermining and
equally important components:
1.Hardware
2.Software
3.Brain ware (know-why)
Know-how could be considered as the

fourth component.
Zeleny (1986)

•
V.Seshadri MOT Ref 1 Ch 1& 2 13
 Technology vs Business
• The pool of knowledge available to
Society is a major source for creating
business enterprises.
• Technology shows the way how goods
and services can be produced.
• The technologies that exist in a
business are the technological assets
of that business. They constitute the
collective knowledge and technical
capabilities of that business
enterprise and includes it’s people,
equipments, systems, tools etc.
V.Seshadri MOT Ref 1 Ch 1& 2 14
 Critical factors in MOT
• The most critical factor in technology
is human creativity
• The creation of technology;
developing new
products/processes/services with
this technology and successfully
deploying. marketing them calls for
great creativity along with the
system to exploit it and the needed
investment/resources.
MOT - Prof.V.Seshadri Ref 1 Ch 3 15
Technology – Price Relationship

MOT - Prof.V.Seshadri Ref 1 Ch 3 16

 Technology gap –Price
relationship

P
R
I
C
E

TECHNOLOGY GAP
MOT - Prof.V.Seshadri Ref 1 Ch 3 17
 Technology gap –Price
relationship

Own
Own Knowledge
Knowledge

ogical Knowledge Customer Knowledge

Time or Diffusion
MOT - Prof.V.Seshadri Ref 1 Ch 3 18
 Example: Netscape
• Netscape Ltd. is a software company
heavily involved in developing
internet browsers, navigators,
server software and applications. It
was started by technocrats and is
listed on NASDAQ stock exchange.
It’s assets are in software and
internet based technologies and
very little capital and other physical
assets or holdings. It is a classic
example of a successful technology
V.Seshadri MOT Ref 1 Ch 1& 2 19
Levels of technology activities
in a firm
1.Cognitive knowledge or
know-what
2.Advanced skill or know-how
3.System understanding or
know-why
4.Self motivated creativity or
care-why
V.Seshadri MOT Ref 1 Ch 1& 2 20
Classification of Technology
1.New Technology (laser for eye
surgery)
2.Emerging Technology
( superconductivity, genetic
engineering,)
3.High Technology (cloud computing,
stem cell technology)
4.Low Technology/Medium Technology
5.Appropriate Technology
6.Codified vs Tacit Technology
V.Seshadri MOT Ref 1 Ch 1& 2 21
 High Technology company
• It employs highly educated people.
Professionals, PhDs
• Rapid change in technology
compared to competitors
• Competes with technological
innovations
• Has high levels of R&D expenditures
• Has the potential to use technology
for rapid growth
V.Seshadri MOT Ref 1 Ch 1& 2 22
 Low Technology Company
• Employ people with relatively low
level of education/skill. Emphasis is
on experience.
• Use manual or semi-automatic
operations
• Have low levels of research
expenditure (below industry
standards)
• Technology base used is stable with
little change
V.Seshadri MOT Ref 1 Ch 1& 2 23
 Codified vs Tacit
• Codified: Know-how information is
well documented and clearly
explained.
• Tacit: It involves the Know-why part
which is, quite often, not explained
or documented. It is harder, more
difficult and time consuming to
transfer tacit knowledge.
Knowledge of both codified and tacit

knowledge is essential to acquire

V.Seshadri MOT Ref 1 Ch 1& 2 24
 The pace of technology
change
• The magnitude and speed of
technological change in recent years
have been phenominal.
• Technological change is the primary
factor influencing economic growth
and prosperity. It has impacted
employment patterns and Societal
changes.
• US employment figures:
• 1900 – 1950 – Agriculture (85%)
• 1950_ 1990 – Manufacturing (73%) Agri
( 3%)
• 1990 – 2000 – IT & Services (80%);
V.Seshadri MOT Ref 1 Ch 1& 2 25
 Changing equations
• Scope: Fixed assembly line to flexible
– mass customized - production
lines. Customer focus
• Competition: US vs Soviet Block to
Western vs China & India to
European Union
• Trade Blocks: G 7, SAARC, EU, G7
• GATT, NAFTA, WTO
•
V.Seshadri MOT Ref 1 Ch 1& 2 26
 National Competitiveness
• A nation needs to establish sound economic
systems to foster competitiveness and the
ability to trade with other nations.
• Technological capabilities are based on
factors such as education, R&D,
technology transfer.
• Global trade is governed by International
agreements based on WTO or bilateral. It
also depends on market dynamics and
supply-demand laws.
• Creating a National competitive strategy
depends on the harmonious integration of
economics, technology and trades
systems
V.Seshadri MOT Ref 1 Ch 1& 2 27
• An effective public policy should be based
Technology and Sustainable
growth

Technological Capabilities

Economic System Trade

Competitive Enterprises
Sustainable economic growth

V.Seshadri MOT Ref 1 Ch 1& 2 28

 Historical Perspective
• Technology has always played a
major role in creating wealth of
nations and influencing standard of
living and quality of life. Thus the
progress of civilization is identified
by the dominant technology of the
age.

V.Seshadri MOT Ref 1 Ch 1& 2 29

Evolution by Age of
Technology

V.Seshadri MOT Ref 1 Ch 1& 2 30

 Technology = the engine for
economic growth of nations
• Robert Solow, a MIT professor(1987
Nobel Prize in Economics) –
• Technical progress accounted for
more than half the economic
growth in the USA
• In a study ( France, Japan, Germany
and U.S.) on relative contributions
to economic growth of three main
factors:
Technical progress: 50%; Capital:
V.Seshadri MOT Ref 1 Ch 1& 2 31
 The Long Wave Cycle 1/2
• After the Industrial Revolution the
economies of western countries went
through major economic expansion
followed by depression.
• These fluctuations repeated once in
every 30 years (approximately) and
this phenomenon is known as the
“long wave” or “long economic cycle”
• Breakthroughs in new Technologies
result in a surge of inventions which
trigger business opportunities and
building up of Capital -contribute
substantially to the growth phase.
V.Seshadri MOT Ref 1 Ch 1& 2 32
 The Long Wave Cycle
1.Discoveries in Science creates a base
for technological innovations.
2.Radical and basic technological
innovations trigger new
inventions in products, processes
and services
3.These create new markets and new
Industries
4.The new industries continue creating
newer products, expanding the
markets further
V.Seshadri MOT Ref 1 Ch 1& 2 33
 The Long Wave Cycle
5. As the technology matures, there is a
surge in new entrants and intense
competition results in generating excess
capacity.
6. This results in reduction in reduction in

profitability of companies, which results in

increased business failures and
unemployment.
7. This leads to economic turmoil in

financial markets leading to depression

8. New breakthroughs occur in technologies

which provide the basis for new economic

progress triggering the next long wave
V.Seshadri MOT Ref 1 Ch 1& 2 34
 The Long Wave Cycle
– the Technology implications
(Betz)
1.Cutting edge technology is behind the
long wave of economic activity
2.High technology products displace old
technology when there is justification
for performance and cost
3.Technology life cycles of industries
affect long cycles in the national
economy
4.New technology comes from science
which come from new discoveries in
nature.
5.A new technology when created will
begin a new wave.
V.Seshadri MOT Ref 1 Ch 1& 2 35
 The Long Wave Cycle
– the Technology implications
• As technological innovations become
more and more fast paced, the long
wave cycles become shorter and
shorter.
• Emerging technologies are promising
new and uncharted areas of products
and processes.
• New economies defy
compartmentalized traditional
measurement methods.
• Growth in investments in areas like
corporate software, cellular phones, e-
mails, automated banking and plastic
V.Seshadri MOT Ref 1 Ch 1& 2 36
 Evolution of Production
technology
• Late 1800s – Fredrick Taylor –
Scientific management principles
• Early 1900S – Henry Ford – Mass
production; planning, inventory
control, time & motion study,
queuing and modeling.
• 1920s, 1930s – SQC, TQM, Process
Quality theory
• WWII – Material Handling systems,
Productivity, Operations Research
• V.Seshadri MOT Ref 1 Ch 1& 2 37
 Evolution of Production
technology
• 1950s – Digital Computer; Simulation
techniques, Information age.
• 1970s – Personal Computers; total
systems design; Materials
Technology
• 1980s - Information technology, Bio
technology, genetic engineering,
genetics, robotics, manufacturing
processes, organizational theories,
Management of Technology
V.Seshadri MOT Ref 1 Ch 1& 2 38
 Evolution of Product
Technology
• Technology can be associated with
new Products, Processes & Services
• Product developments have
revolutionized the world in the past
two centuries. They have impacted
economic growth and prosperity
and improved the quality of life

V.Seshadri MOT Ref 1 Ch 1& 2 39

Evolution of Production
Technology

V.Seshadri MOT Ref 1 Ch 1& 2 40

Evolution of Product
Technology

V.Seshadri MOT Ref 1 Ch 1& 2 41

 Technology & National
Economy
• Developed economies are identified with
countries that properly use technology for the
creation of wealth. It is the use of appropriate
technology effectively that really creates new
opportunities and wealth.
• USA was the leading economy of the world in
the 20th century which was the centre of all
technological advancements in the world.
• Japan and Germany are examples of such
countries in the late 20th century
• China and the Asian Tiger Countries ( Korea,
Taiwan, Singapore, Malaysia) are in the
forefront in the last decade.
• India is a most promising rising giant in the
world in the second decade of the 21ST
V.Seshadri MOT Ref 1 Ch 1& 2 42
century.