Management of Technology – Comprehensive Bullet-Point Notes

Technology: Definitions & Fundamental Concepts

• Various manifestations from simple tools to complex systems; fundamentally a “means to accomplish tasks.”
• Hard vs. Soft Technology
  • Hard: Tangible tools, machines, hardware
  • Soft: Methodologies, software, managerial routines
• Key scholarly definitions
  • McGraw‐Hill (1992): “Tools and techniques for carrying out plans.”
  • International Encyclopaedia of Social Science: “Practical arts.”
  • Dussauge et al. (1992): Process that, through R&D, enables commercial goods/services.
• Modern integrative view
  • Technology = knowledge + products + processes + tools + methods + systems for value creation.
  • Value is created when goods/services satisfy needs and improve quality of life (Haksever et al., 2004).
• Relationship to Knowledge
  • Knowledge = information grasped + understood by the mind.
  • Technology begins when knowledge is practically implemented.
• Components (Howell, 1996)
  • Tangible assets: new products, plants, equipment
  • Intangible assets: formal (patents, licences, IPR, training) & informal/tacit know-how

Classification of Technology

• New, Emerging (commercial < 5 yrs away), High, Medium, Low, Appropriate.

Management & Management of Technology (MoT)

General Management

• Coordinating work efficiently & effectively via planning, organizing, leading, controlling (Robbins & Coulter, 2005).

Definition of MoT

• Act of managing organisational systems for creation, acquisition & exploitation of technology → achievement of objectives.
• Premise: Technology is the most influential wealth-creation factor.

Wealth-Creation System (Khalil, 2000)

• Inputs: Technology, Labour, Capital, Natural Resources.
• Influenced by Public Policy, Market forces & Socio-environmental issues → Wealth.

Why MoT now?

• Post-WWII: stability, well-defined functions.
• Today: rapid tech change, global competition, trade liberalisation, IT revolution, shifting employment patterns.

Key Industrial MoT Tasks

1. Identify/evaluate technological options.
2. Manage R&D & feasibility.
3. Integrate tech into operations.
4. Implement new product/process tech.
5. Manage obsolescence & replacement.

Dimensions

• National (policy), Organisational (competitiveness), Individual (personal worth).

Field of Study

• Inter- & multi-disciplinary; links science/engineering (creation) with business admin (conversion to wealth).
• Evolution
  • 1950–70 R&D Mgmt → 1980 Tech Strategy → 1990s Value-based Mgmt (CTO role).
• Approaches: Process, Strategic, Innovation-focused, Integrated.
• NOT the same as “management technology” or “engineering management.”

Creativity Factor in MoT

Discovery–Invention–Innovation–Market Sequence

1. Scientific Discovery – uncover fundamental knowledge.
2. Invention – novel product/process/system; often follows discovery.
3. Innovation – product/service/process new to org; market-oriented; \text{innovation}=\text{idea}+\text{exploitation}.

Types of Innovation

• Radical/Revolutionary, Incremental/Evolutionary, Transformational.
• Other taxonomies: Component, Architectural, Process, Value (Blue Ocean), Social.

Creative Environment

• Interest alignment, broad collegial contact, moderate risk, tolerance for failure, rewards.

Time Factor & Technology Leadership

• Time-to-market critical; manage lags between idea → prototype → launch.
• Technology Gap/Price relationship: earlier diffusion = ability to price higher.
• Firm categories: Leaders, Followers, Laggards.
  • Leader advantages: name recognition, learning-curve head start, define standards, high profits, switching barriers.

Technology Life-Cycle (TLC) & S-Curve

• Performance vs. Time follows S-curve: New/Invention → Growth/Improvement → Mature → Substitution → Obsolescence.
• Benefits:
  1. Forecasting & planning
  2. Competitive positioning
• Relation to Product Life-Cycle (PLC): TLC drives PLC shortening (from 18–30 yrs → < 6 yrs for electronics).
• Market growth aligns with TLC stages (Technology Development → Application Launch/Growth → Mature Technology → Substitution → Obsolescence).
• Competition focus shifts: Early = innovation; Growth = pacing; Mature = process/price; Decline = exit or substitute.
• Diffusion dependent on relative advantage, compatibility, complexity, observability.
• Combined Technology Push & Market Pull stimulate innovation.

Innovation: Misconceptions & Realities

• Not only big R&D labs or major breakthroughs; includes incremental, services; can originate externally.
• Defined: process turning opportunities into widely used products/services with socio-economic impact.
• Stages (generic technological innovation process)
  1. Basic Research
  2. Applied Research
  3. Technology Development (prototype)
  4. Implementation (first use)
  5. Production
  6. Marketing
  7. Proliferation
  8. Enhancement

Management Styles for Innovation

• Entrepreneurship (visionary, control, high risk tolerance) vs. Professional Management (delegation, structure).
• Effective MoT leaders blend both cultures.

Business & Technology Strategy

Strategy Basics

• Strategy = envisioning & planning future; winning formula in changing environment.
• Hierarchy: Corporate → Business-unit → Functional.
• Formulation context: Internal (strengths, values) & External (opportunities, threats, societal expectations).
• Strategic Management Model: Environmental scanning → Strategy formulation → Implementation → Evaluation & control.
• Tools: Decision matrices, \text{SWOT}, Market-share/Growth grids, etc.

Technology Strategy

• Building, maintaining & exploiting technological assets to support business goals.
• Must align & integrate with business strategy (cost leadership, differentiation, etc.).
• Formulation Steps
  1. Mission/vision/goals
  2. Assess internal/external tech posture
  3. Aggregate project plan
  4. Acquisition & organisational decisions
  5. Resource allocation
  6. Lead innovative effort
  7. Evaluation methods
  8. Market-entry strategy.
• Strategy Types (Product): First-to-Market, Follower, Application Engineer, Me-Too.
• Integration Evaluation Matrices
  • Importance vs. Difficulty
  • Time vs. Investment

Core Competencies

• Distinctive knowledge/skills providing customer value, hard to imitate, applicable to many markets.
• Layers of technology: Distinctive → Basic → External.
• Exploitation: develop, deploy, build barriers, align activities.

Technology Planning, Forecasting & Audit

Planning Framework

• Forecast tech/environment/market → SWOT → Mission → Action design → Implementation.

Forecasting Attributes

• Growth in capability, replacement rates, diffusion, timing of breakthroughs.
• Good forecasts: credible, explicit assumptions, quantifiable, confidence interval.

Techniques

• Monitoring, Expert Opinion (Delphi), Trend Analysis, Modeling, Scenario Building.

Technology Audit (Garcia-Arreola 1996; Khalil 2000)

• Evaluate current tech capabilities & gaps across nine categories: Awareness, Search, Core competence, Strategy, Assessment, Acquisition, Implementation, External linkages, Learning.
• Capability staircase: Unaware → Reactive → Strategic → Creative firms.

Technology Investment Modes vs. TLC (Little, 1983)

• Embryonic: Monitor
• Emerging: Invest selectively (Pacing)
• Growth: Build systematically (Key)
• Mature: Divest selectively (Base)
• Ageing: Exit/divest.

Technology Acquisition

Internal (R&D)

• Rely on in-house resources for innovation.
• Pros: control, deep understanding, potential next-gen leadership, first-mover profits.
• Cons: long time, high cost, failure risk, IP infringement exposure.
• R&D Funnel: Idea → Concept → Feasibility → Development → Commercialisation.
• Project selection considers Marketing needs, Competitive info, Strategy & Resource limits (see \text{R&D Investment Decision Framework}).

External Acquisition

• Objectives: support new venture, restore competitiveness, allocate resources efficiently, supplement captive tech, license-out profits, expand applications.
• Methods: Joint Ventures, Contracted-out R&D, Licensing-in, Outright Purchase, M&A.
• Decision factors: Standing, Urgency, Investment, TLC position, Tech category.
• Acquisition Process
  1. Technology Search (ongoing; may outsource to consultants)
  2. Evaluation (Technological, Economic, Supplier background, Transfer capability)
  3. Transfer management.
• Common problems: ill-prepared projects, “Not Invented Here,” high transaction cost, over-dependence, misaligned objectives, cultural/communication barriers.

Technology Transfer (TT)

Definitions & Models

• Generic: movement of knowledge/know-how from transferor → transferee (Dichter et al., 1988).
• Samli Basic Model: Sender → Technology → Receiver within context of needs, readiness, barriers; aftermath & assessment.
• Success depends on communication flows, cultural alignment, absorptive capacity.

Business Rationale

• Opportunity & Necessity: market expansion, lifecycle extension, cost reduction, regulation, incentives, capability gaps.
• Must be long-term strategic, not one-off.

Modes of TT

• Know-how/Technical Assistance
• Licensing
• Turn-key projects
• Joint Ventures
• Sub-contracting
• Franchising
• Management contracts
• Wholly-owned subsidiary / FDI

Key Agreements Elements (for Licensing)

• The Grant (scope, territory, exclusivity)
• Supporting services/technical assistance
• Confidentiality & IP protection
• Payments (lump-sum, royalties \text{Royalty}=r \times \text{Net Sales})
• Tax considerations & with-holding
• Patent issues / infringement handling
• Guarantees & performance warranties
• Improvements & grant-backs
• Records & audits
• Assignment / sub-licence rights
• Term & termination
• Appendices: drawings, specs, training plans, schedules.

Key Numerical / Statistical References

• Decreasing invention→production lag (Fluorescent 82 yrs → Transistor 10 yrs).
• Microprocessor speed evolution: 0.3\;\text{MIPS (8086, 1981)} \rightarrow 100\;\text{MIPS (Pentium, 1993)}.
• Product lifecycle shortening: 18–30 yrs (1990s) → 6–18 yrs (2000s) → even shorter today.

Ethical, Social & Environmental Considerations

• Eco-efficiency & sustainability integral to MoT curriculum.
• Public/environmental policy influences wealth creation system.
• Mature technology competition shifts to process innovation & environmental compliance.
• Steve Jobs quote emphasises empowering people with tools.

Practical Implications & Study Tips

• Always map technology to business objectives and market needs.
• Use S-curve to anticipate inflection points & decide investment timing.
• Combine Technology Push with Market Pull for robust innovation pipelines.
• Audit technological capabilities regularly; climb the capability staircase towards strategic/creative posture.
• Align core competencies with distinctive technologies to sustain competitive advantage.
• When acquiring externally, evaluate beyond price—consider learning potential & transferor commitment.
• Integrate technology strategy into strategic planning cycles; avoid 12-month myopic “steady-state” plans.

Example Formulas & Concepts (LaTeX)

• Return on Investment: ROI = \frac{\text{Net Profit}}{\text{Total Investment}}
• Discounted Cash Flow (present value): PV = \sum{t=0}^{n} \frac{CFt}{(1+r)^t}
• Payback Period: \text{Years} = \frac{\text{Initial Outlay}}{\text{Annual Cash Inflow}}
• Technology Diffusion Rate (Bass model simplified): \frac{dN}{dt} = (p+q\frac{N}{m})(m-N) where p = innovation coefficient, q = imitation coefficient.