Lecturer Notes of Management of Technology Department of BBA

UNIT:1
INTRODUCTION TO TECHNOLOGY MANGEMENT

1.1. Introduction to Technology and Technology Management:

• The word ‘technology’ has a wider concept and refers to the collection of production
possibilities, techniques, methods and processes by which resources are actually
transformed by humans to meet their wants.
• For example, Ferré (1988) has defined technology as “practical implementations of
intelligence”.
• However, Gendron (1977) has provided a more comprehensive definition: “A
technology is any systematized practical knowledge, based on experimentation and/or
scientific theory, which is embodied in productive skills, organization, or machinery”.
• Technology can also mean skills to apply proper techniques (Hakkarainen, 2006) or
practical application of knowledge (Webster 2010).
• ‘Technology’ is also defined by (Steele, 1989) as ‘knowledge of how to do things’, or
‘capabilities that an enterprise needs in order to provide its customers with the goods
and services it proposes to offer, both now and in the future’.
• (Burgelman, 2001) defines technology as “technology refers to theoretical and
practical knowledge, skills and artifacts that can be used to develop products and
services as well their production and delivery systems.
• Just to conclude, we can say that technology can be defined as all the knowledge,
products, processes, tools, methods and systems employed in the creation of goods or
in providing services.
• It is common to think of technology in terms of hardware, such as machines computers,
or highly advanced electronic gadgets.
• However, technology embraces a lot more than just machines.
• It has following components.

1. Hardware: The physical configuration and logical design of the equipment or

machinery,which is tangible, that is to be used to carry out the required task.
2. Software: The knowledge which is intangible used for the functioning of hardware in
order to carry out the required tasks.
3. Brain ware: Analyzing the functionality of the technology with causality.
4. Know-how: Knowledge of how to do things or tasks effectively which is a result of
experience or by technology transfer.

1.1.1. Classification of Technology

• New technology: A technology which is newly introduced which can have its influence
on the products of an organization.
• Emerging Technology: A technology that is not yet fully commercialized, but has the
potential tobecome so within about five years. It usually has high levels of research
expenditure
• Low technology: the technologies that have permeated large segments of human
society.

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 Lecturer Notes of Management of Technology Department of BBA

Low technologies are utilized by a wide variety of industries having the following
characteristics:

✓ They employ people with relatively low levels of education or skill.

✓ They use manual or semiautomatic operations.
✓ They have low levels of research expenditure.
✓ The technology base is stable with little change.
✓ The products produced are mostly of the type that satisfies basic human needssuch as
food, shelter, clothing and basic human services.

• Medium technology: the term medium technology comprises a wide set of

technologies that fall between high and low technologies.
• Appropriate Technology: The term appropriate technology is used to indicate a good
matchbetween the technology utilized and resources required for its optimal use.
• Tacit technology: Tacit technology is non-articulated knowledge. There is no
uniformity in the way it is presented or expressed to a large group of people. It is usually
based on experience and therefore remains within the minds of developers. The
technology developers are the ones who have the know-how in question.
• Codified technology: Codified technology, on the other hand, allows people to know
how technology works but not necessarily why it works in a certain way. The brain
ware may be part of the tacit knowledge kept in minds of developers and shaped by their
experiences during the development process.

1.2. Technology Management:

• Fredmund Malik defines management as "the transformation of resources into utility."
• Management can be an art and to some extent a technology.
• As a field, it has a knowledge base and guiding principles which provide the means by
which the desired goals of an enterprise are achieved.
• It encompasses various functions, including planning, organizing, staffing, motivating
and controlling activities of the organization.
• Now-a-days, majority of these functions are managed or performed through
technology.
• Technology Management is a set of disciplines that allows organizations or a nation to
manage their technological fundamentals to create competitive advantage through
planning and developing its technological capabilities.
• It allows organizations to manage their technological fundamentals to create
competitive advantage through addressing several interconnected issues such as:
✓ technology policy;
✓ technological forecasting and assessment;
✓ technology strategy;
✓ technology transfer;
✓ technology project management;
✓ technology research and development;
✓ human resource management in terms of innovative capabilities,
flexibility and contribution continuing improvement of process and
product technology.

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 Lecturer Notes of Management of Technology Department of BBA

• In literature, various definitions of Technology Management (TM) have been produced.

Some ofthem are reported here:
• NRC/National Research Council (1987) describes TM as “a process, which includes
planning, directing, control and coordination of the development and implementation
of technological capabilities to shape and accomplish the strategic and operational
objectives of an organization.”
• The U.S National Research council report (1987) on management of technology
defined it as “an interdisciplinary field concerned with the planning, development and
implementation of technological capabilities to shape and accomplish the operational
andstrategic objectives of an organization”.

1.2.1. Three levels of Technology management

• Normative level: This level deals with the company’s major decisions, that vividly
demonstrate its associated culture and policy
• Strategic level: a comprehensive technology strategy, with a dominant principle of
effectiveness is translated into the company’s policy
• Operative level: this changes the businesses strategies into practice over the short term,
with efficiency as the primary principle.

1.2.2. Types of Technology Management:

TM has become an organized and systematic discipline. As TM embraces several inter-

connected issues ranging from policy planning at the national level to strategic planning at the
firm level, it calls for decisions and result-oriented actions at the macro-as well as micro-levels
and an effective macro-micro linkage.

Macro technology management commonly refers to technology management at the national

level.
It includes:

• Planning for the development of technological capabilities at the national level.

• Identification of key sectoral technology and related fields to be developed.
• Determining ‘make’ or ‘buy’ decisions, i.e., whether importation or self- development
isto be pursued.
• Establishment of institutional mechanisms for directing and coordinating the
development of national technological capabilities.
• Design of policy measures for controls.

Micro technology management concerns technology management at the firm or project level.
It includes:

• Responding to competitors who are using technology as a strategic weapon.

• Integrating technology strategy into the overall corporate strategy.
• Identifying and evaluating technological options and innovations and the factors
relatingto their success and failure.
• Directing research and development itself, including determination and definition of
project feasibility.
• Monitoring and planning technological obsolescence and replacement.

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 Lecturer Notes of Management of Technology Department of BBA

1.2.3. Technology Management Framework

A set of management definitions, concepts, activities, stages, and procedures Researchers have
developed a range of concepts, stages, procedures, activities and management definitions, all
of which are directed towards forming and articulating a certain framework of technology
management as the TM methodology.

1. Identification: The spine of the management process is seen to be the identification of

technologies, crucial to the company’s strategic operations. Such identification
processes include: scanning and monitoring, technology forecasting, customers
orientation, technology intelligence, data collection and benchmarking. Such work will
show how the business identifies the technologies it uses, how the company forecasts
for success of new technology, how scanning and monitoring for the new technologies
are performed, how the company identifies the customer needs and requirements, and
what are the main factors that affect the identification process.

2. Selection: selection of those technologies that are chosen to support

companies and organization.Such processes include: scenario analysis,
portfolio analysis, expert judgment, decision criteria and financial
analysis. Since technology selection requires one to make accurate
decisions with regards to the correct technologies, it is crucial for the
organization. This is especially so when decisions are made that require
long term investments. Also, the business must concentrate on
quantitative, qualitative, intangible and tangible criteria in the selection
of its technology. This process is necessary so that the business adopts
systematic procedure in its selection process.

3. Acquisition: Acquisition of technologies that have been selected.

Example processes include internal research and development, Joint
Ventures, Organizational Change, Project Management, Licensing,

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 Lecturer Notes of Management of Technology Department of BBA

corporate mergers and acquisitions, technology transfer, technology

insertion.

4. Protection of knowledge and expertise. Processes include patenting,

contracts, risk assessment, copyrights, staff retention, security
management.

5. Exploitation of technologies. Example processes include process

improvements, licensing,new product development, and supply
chain management.

1.2.4. Technology Management Capabilities

➢ Have the capacity and ability to perform technology Identification
➢ Have the capacity and ability to perform Selection
➢ Have the capacity and ability to perform Acquisition
➢ Have the capacity and ability to perform Exploitation
➢ Have the capacity and ability to perform Protection
➢ Have the capacity and ability to Learn about new technologies
➢ Have the capacity and ability to perform Strategic Management
➢ Have the capacity and ability to perform Innovation Management
➢ Have the capacity and ability to perform Project Management
➢ Have the capacity and ability to perform Knowledge Management
➢ Have the capacity and ability to perform Technology Management

1.3. Evolution of Technology:

1 million years ago:Fire 1455: Printing 1879: Electric light 1957: Spaceflight
Johannes Gutenberg
20,000 to 15,000 1765: Steam engine 1885: Automobile 1974:
years ago: Neolithic James Watt Personal
Revolution computer
6000 BCE: Irrigation 1804: Railways 1901: Radio 1983: Internet

4000 BCE: Sailing 1807: Steamboat 1903: Airplane 2012: CRISPR

1200 BCE: Iron 1826/27: 1926: Rocketry 2017:AI
Photography
850 CE: Gunpowder 1831: Reaper 1927: Television 2020:5G
950: Windmill 1844: Telegraph 1937: Computer
1044: Compass 1876: Telephone 1942: Nuclear power
1250–1300: 1876: Internal- 1947: Transistor
Mechanical clock combustion engine

1.3 Role and Significance of Technology Management:

In the context of a business, technology has a wide range of potential effects on management:
• Reduced costs of operations
• New product and new market creation
• Adaptation to changes in scale and format

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 Lecturer Notes of Management of Technology Department of BBA

• Improved customer service.

• Reorganized administrative operations.

1.4. Impact of Technology on Society and Business:

The impact of technology on business is seldom one-dimensional, but rather, new technology
causes a cascading effect within firms. To illustrate, consider the information technology from
the prior example. In economic theory, we learn that price is a function of supply and demand.
But the technology has resulted in both more demand and lower prices. New technology has
made more information available to consumers. As more information becomes available,
potential buyers become more aware of opportunities to obtain and use products. This leads to
greater demand. But more precise in- formation also leads to pricing being more systematic.
Thus, technology leads to better prices. A similar cycle has taken place in other markets. Today,
people use the Internet to buy automobiles, books, and other products. This has resulted in
more buyers while, in many cases, exerting pressures to lower prices. For a firm to make a
profit in this environment, it must be more efficient. One of the key ways that a firm obtains
such efficiency is through technology. Thus, the use of technology in one domain typically
leads to greater need for changes in technology in other areas.

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