A Review of Technology Management (Ch-1)

By

Syed Shahid Hussain

Technology Management Field

Topics that will be emphasized in this class include

• Technology Strategy• Development of Technological capability• Innovation management• Technology management and business

competitiveness interface• Technology adoption• E-business and Virtual Corporation

Science and Technology

• Science - usually involves the development of an hypothesis, the testing of that hypothesis by controlled experimentation or observation, the collection and analysis of data to produce results and the drawing of valid conclusions based on those results.

• Technology - usually involves the design and development of a solution to a problem and yields a product, process or environment that serves a real need.

Technology• Technology refers to the theoretical and

practical knowledge, skills, and artifact that can be used to develop products and services as well as their production and delivery systems.

• A process, technique, or methodology embodied in a product design or in a manufacturing or service process which transforms inputs of labor, capital, information, material, and energy into outputs of greater value.

• Basic science versus Applied science

The four elements of technology

• Technique: machinery, tools, materials, and their application in the work process

• Knowledge: applied science, skills, intuition

• Organization: Structuring of the work process according to technological or socioeconomic goals or constraints

• Product: The output of the work process and the purpose of applying the technology

Examples of technology categories

• Black box technology: A technology which is implemented partly, so that only its application (but not adoption, improvement or development) is mastered by the user, e.g. a word processing system

• Disembodied technology: Technology which is transferred independent of specific capital equipment, e.g. by journals or training programs

• Embodied technology: Technology which is transferred together with specific capital equipment, e.g. application of a production machinery

• Generic technology: Basic engineering knowledge that is not yet proprietary (public domain methodology, e.g. as developed by public research institutions)

Technology categories

• High-technology: 'Sophisticated technology based on recent scientific advances'. The element of theoretical knowledge is pronounced, whereas the element of practical experience may be accordingly weak

• Proprietary technology: Technology directly related to processes and products and not freely available ('in-house technology'), e.g. a patented process, or simply a technology unknown or unavailable to outsiders. Proprietary technology can be traded (like a commodity)

• Service technology: Technology for production of services (rather than goods)

Management - definition

• The art and science of extracting the most from specific assets for fulfilling desired goals.

• Hence:– Finance Management– Human Resources Management– Materials Management– Operations Management.– Maintenance Management– Technology Management

Technology management

• integrated planning, design, optimization, operation and control of technological products, processes and services,

• a better definition would be the management of the use of technology for human advantage

Technology managementWhy it’s important?

• It is the Age of technology and knowledge so it must be managed to live with it

• Only societies and people who gain maturity in technology will have the right in the global discussion

• To get the best results, technology can be mastered only by managing it efficiently and effectively

parameter of Technology Management:

• Product Quality• Machine Productivity• Environment Management• Effective use of Raw Material• Machine Availability• Energy Consumption• Life cycle of components• Innovative aspects

Effective Technology Management

• Strong Planning• Reduce Interruptions• Reduce Production Rejections• Strengthen the Information System• Provide Technology Leadership• Provide Good Administration• Preventive Maintenance

Benefits of Effective Technology Management

• Work becomes EASIER• JOB SATISFACTION increases• PROFITS increase• Business Becomes COMPETITIVE

How technology affects life :-)

• A programmer works in a software-development company. One day he didn't come to work. The next day too. His co-workers called his phone, but nobody answers. They started to worry about him and decided to visit him. So, they found him in the bath, wet and blue because of cold, half-dead, holding an empty bottle from shampoo and reading the label of it.

• It says: "Apply a small amount to wet hair, massage it through, rinse out thoroughly. Repeat."

Technology maturity

Fact

• Effective use of IT provides a competitive edge.

• IT is a means, not an end.• People are the most important

resources. • Most projects fail due to poor

management.

Success Factors of TM (Maidique & Hayes and Burgelman & Maidique 1988)

• Business focus• Adaptability• Organizational cohesion• Entrepreneurial culture• A sense of integrity• Hands-on top management

Drivers of technology

How is the innovation made? Who creates innovation?•Stakeholders are participants of innovation system•Customers and technology – changing environment – driver of innovations•Sponsors of innovation •IT standards

Technology and Market

• Balancing between technology push and market pull – A conventional way of analyzing technology

development is to contrast the influence of technology push with that of market pull.

– Technology push is the process of solving a problem by providing a technical answer to a market need (which can be either anticipated or existing).

– Market pull involves solving a problem to provide a market answer to a technical need, or accommodating a technical solution by finding market uses.

Technology and Market

• Proactive approach for technical development

• Feasibility of an innovation: technologically and commercially

• Congruent of an innovation with corporate objectives and goals

Manager Perspective on Managing Technology

• Advanced technology can create an abrupt change in businesses e.g, changing from a car to a helicopter.

• New opportunities will arise that were impossible with the car.

• Without investing into technological infrastructure a firm cannot advance in these new opportunities

• According to Beatty, (1992) the “rules of the road” new technology requires:– A skilled champion– A plan for systems integration– Organizational integration

Barriers to Success

• Failure of a champion• Lack of systems integration• Incompatible systems• Lack of a cross-functional team

Technology Forecasting (TF)Evolution of R&D Management can be characterized into three phases, by Garybadze (1994):•First Generation (1950-1975): was input-oriented, involved in setting up research labs, teams and processes. TF was tactical, isolated, and not a pervasive part of strategic planning.

•Second Generation (1975-1990): Decentralization of R&D coupling with business needs and development. TF was a data-gathering and environmental scanning exercise, still an isolated subtask of strategic planning. TF is an output, either to be believed or to be dismissed.

•Third Generation (1990-present): New paradigm as TF is an integral part of strategic planning and business intelligence (corporate strategy). Organization is viewed as sociotechnical productive system with technology is one of the “potentials “ along with marketing, information, logistics, financial and human potentials. Echoed by Tschirky (1994) – firms as sociotechnical productive system …

Technology & People• It is true that people’s abilities haven’t changed

much while technology (esp. IT) has changed dramatically Harrison & Samson (2002). However, people’s behavior has changed significantly, which the authors fail to emphasize. Thus, the way we manage people must be changed as well.

• Although Harrison & Samson (2002) argue “technological resources are becoming more important than human resources in determining competitive outcomes” (p. 15), I disagree as we’ve seen so many IS project failures due to lack of skilled people and poor management. Research in the past few years has begun to call for more studies done on the human factor because it has been ignored for too long.

Summary• Technology management is critical for not only

creating but also sustaining a competitive advantage of an organization.

• Technology consideration must be an integral part of a firm’s corporate as well as business level strategies.

• Change in technology without change in the way (process) it is used can lead to failure.

• Technology and human resources must be working in an integral manner to ensure success.

• Leaders must have a strong knowledge and capability in managing both technology and people.