Management of Technology

Lecture Notes for Business Introduction

By Fahmy Radhi

Management of Technology and Innovation

♦ Management of Technology (MOT) is an interdisciplinary field study that integrates science, engineering and management knowledge

MOT Levels♦ Macro level – a field of knowledge concerned with

the setting and implementation of policies to deal with technological development and utilization of technology on society, organization and individual

♦ Micro Level – an interdisciplinary field concerned with the planning, development and implementation of technological capabilities to shape and accomplish the operational and strategic objectives of organization in the creation and sustainability of competitive enterprises

Technology Definitions

♦ Technology defines as an essential input for the production of goods and service

♦ Technology is all the knowledge, product, process, tools, methods and system employed in the creation of goods or in providing services

Technology Definitions

♦ Technology is the integral body of technical and organizational (software) and tools (hardware) used in the production of goods and services. – Hard technology is technology that is

embodied in machinery and equipment, – Soft technology is the know-how and

information that is disembodied from hard technology

Types of Technology

♦ Product technology is the knowledge used to produce any product or service.

♦ Process technology is the knowledge used to transform some of the inputs for the production of a given product or service.

♦ Management technology is the knowledge used to manage the operations of a company efficiently and effectively

Technology Components ♦ Technoware – object embodied into physical

facilities, such as machinery, tools, equipment♦ Humanware – person embodied into human abilities,

such as skills, knowledge, craftsmanship, expertise and creativity

♦ Infoware – record embodied into document knowledge, such as specifications, manuals, design, blue print

♦ Orgaware – institution embodied into management of organizational framework, such as management practices, organizational networks, methods and techniques

Classification of Technology♦ New Technology is any newly introduced or

implemented technology that has an explicit impact on the way a company produces products or provides services

♦ Emerging technology is any technology hat is not yet fully commercialized but it will become new technology within about five years

♦ Appropriate technology – optimal used of technology indicated by a good match between technology utilized and the resources required

Technology Levels

♦ High Technology refers advanced or sophisticated technologies utilized by the company having the following characteristics:– It employs highly educated people such as

scientists and engineers– It use automatic and sophisticated operations– Its technology is changing at a faster rate than that

of other industries

– It competes with technological innovation– It has high levels of R&D expenditure

Technology Levels♦ Low Technology refers to simple technologies that have permeated

large segment markets utilized by the company having the following characteristics:

– It employ people with relatively low levels of education– It uses manual or semiautomatic operation– It has low levels of R&D expenditures

– Its technology base used is stable with little change

– Its products produced are mostly of the types that satisfy basic human needs

♦ Medium Technology comprises a wide set of technologies that fall between high and low technologies. It usually refers to mature technologies that are more amenable than other to technology transfer

Classification of level technological capability

at Firm level ♦ Acquisitive capability is the ability needed to acquire

and use technology based on instruction and training provided by the supplier. This is classified as a basic level capability.

♦ Adaptive capability is the ability to adapt existing technology. This is classified as intermediate level capability.

♦ Innovative capability is the ability to develop existing technology and create new technologies based on research

Classification of level technological capability at Firm level

♦ Marketing capability is the ability for distributing, selling and servicing technological products

♦ Investment capability is the ability to analyze the feasibility of investments technology

Invention and Innovation

♦ Invention is the creation of a novel technology. It could be a product, a process or unknown system. E.g. the steam engine, the telephone, the transistor, Xerox machine etc

♦ Innovation involves the creation of new product, process or service to an organization and introduce them into the market place by utilization and commercialization them

Types of Innovations

♦ Incremental Innovations involve the adaptation, refinement and enhance of existing product and service, e.g. new generation of a micro computer

♦ Radical Innovation involve entirely new product and service or delivery system, e.g. wireless communication

Technology and Market Interaction