Unit1a

TECHNOLOGY
 process

by which humans modify nature to meet
their needs and wants

 relationship of society with its crafts and tools,
and to extent to which society can control its
environment
 collection of techniques
 application of science, maths and arts

Technology vs. Science
Technology

Science

– Study of our
human-made world

– Study of our
natural world

– Deals with
“what can be”

– Deals with
“what is”

How Does Technology Address
Human Needs and Wants?
Information

Communication

Bio-Related and
Agriculture

Medical

Environmental

Technology
Manufacturing
&
Construction

Transportation

Energy and
Power

Nanotechnology

• Throughout the twentieth century the uses
of the term have increased to the point
where it now encompasses a number of
“classes” of technology:

• 1. Technology as Objects:
Tools, machines, instruments, weapons, appliances - the
physical devices of technical performance
• 2. Technology as Knowledge:
The know-how behind technological innovation
• 3. Technology as Activities:
What people do - their skills, methods, procedures,
routines
• 4. Technology as a Process:
Begins with a need and ends with a solution
• 5. Technology as a Sociotechnical System:
The manufacture and use of objects involving people and
other objects in combination

The Nature of Technology
• Technology has a number of distinct characteristics:
• 1. It is Related to Science?
Although there is certainly a relationship between science
and technology, there is, except in certain high technology
industries, very little technology that could be classified as
applied science. Technology is marked by different
purposes, different processes a different relationship to
established knowledge and a particular relationship to
specific contexts of activity. Change in the material
environment is the explicit purpose of technology, and
not, as is the case with science, the understanding of
nature; accordingly its solutions are not right or wrong,
verifiable or falsifiable, but more or less effective from
different points of view.

• 2. It Involves Design
At the centre of technology lies design. That
“design is the very core of engineering” is
affirmed by the requirement that all degree
engineering courses should embody it. The
design process in technology is a sequential
process which begins with the perception of a
need, continues with the formulation of a
specification, the generation of ideas and a final
solution, and ends with an evaluation of the
solution.

• 3. It Involves Making
The motivating factor behind all technological
activity is the desire to fulfil a need. For this
reason all designs should be made or realised whether that be through prototype, batch- or
mass- production or some form of threedimensional or computer model - if the need is
to be truly fulfilled, the design is to be
legitimately evaluated, and the design activity is
to have been purposeful and worthwhile.

• 4. It is Multi-Dimensional
Not only may design and production involve
co-operation between different specialisms
(between, for example, designer, production
engineer and materials scientist), but may
involve “technologists” in performing a
multitude of functions, such as working with
others, operating within budgets, persuading
decision makers, communicating to clients
and working to deadlines.

• 5. It Is Concerned With Values
Technology is informed by values at every
point. Value decisions may be called for not
only in relation to the specific design criteria
(i.e. aesthetic, ergonomic and economic
judgements, suitability for purpose and ease
of manufacture) but also in relation to the
rightness or wrongness of a particular
solution in ethical terms.

• 6. It is Socially Shaped/Shaping
Technological enterprises are determined not by
advances in knowledge nor simply by the
identification of needs, but by social interests.
Of the potential new technologies available at
any one time only a few are developed and
become widely implemented. In this way
technology is shaped by society, by consumer
choice. yet it could also be argued that
technology shapes society - the technology of
the motor car, for example, has shaped our
environment and our whole way of life.

MANAGEMENT
 Art of getting people together to accomplish
desired goals.
 Management comprises
Planning
Organizing
Staffing
Directing
controlling
 Manages deployment and manipulation of
human resources, financial resources,
technological resources and natural resources

Management of Technology
 An integrated application of engineering, science
and management capabilities.
 Process of MOT includes
Identification of technologies,
Selecting ,
Procurement,
Assimilation,
Exploitation of technologies for
production of goods and services.

TM depends upon…
• Leadership
• Motivation of employees
• Appropriate management of technology
Goal is to create synergy among all factors

• GLOBAL TRENDS IN TECHNOLOGY
MANAGEMENT

TECHNOLOGY CHANGES IN
TRANSPORTATION SECTOR
DMRC

Constructional difficulties
Delhi, a crowded city, it was not easy to built
tracks overhead in all the place of the
metropolice; specially in areas like Chandni Chowk,
Chawari Bazar etc.
 So we had to built underground as well as
overhead tracks.

Very difficult to drill tunnels in areas like
Chawari Bazar where underground water level is
very high.
 Difficult to transport the raw material to the
construction site.

Operational difficulties
Initially, DMRC found it difficult to muster
enough passengers because of its higher fare than
usual mode of transport

Later on, people started realizing the
convenience and comforts provided by DMRC.


At present, DMRC earns more than metros
in other cities of the world.

Some metro stations, being far
away, were difficult to reach.


 DMRC started feeder buses in
collaboration with DTC
 It helped in bringing
passengers more easily to the
stations.

Comparison of DMRC with
Indian Railways
Better, safer, cleaner and faster mode of
transportation.
At station, security level is very high.
Fully air-conditioned

 Parking at stations attracts more
passengers and in turn more revenue but
the same is not possible with the Indian
Railways.
 DMRC allows advertisements and
therefore it finds an easy way to
increase its revenue.

TECHNOLOGY MANAGEMENT
IN IT SECTOR
 3G TECHNOLOGY

3G TECHNOLOGY
wireless technology representing a shift from
voice-centric services to multimedia oriented
like
 video conferencing,
 voice,
 data transfer,
fax service with high speed communication and
broad bandwidth.

Difficulties in implementation of
3G-tech
 Expensive input fees for 3G service license, cause of
delay in auction
 Numerous differences in licensing terms
 Expense of 3G phones like i-phones or smart phones.

 Lack of buy-in by 2G mobile users for the new 3G
wireless
 Lack of coverage, because it is still a new service
 High price of 3G mobile services
 Current lack of user need for 3G voice and data
services in a hand held device

TECHNOLOGY MANAGEMENT
IN BANKING SECTOR
E-BANKING
or
INTERNET BANKING

E-BANKING
In internet banking or e-banking, any inquiry or
transaction whether it is
to withdraw cash
to deposit a cheque
or
a request of statement of accounts
is processed online without any reference to the
branch (anywhere banking) at any time.

Becoming a “need to have” than “nice
to have” service
Benefits






Improve customer access
Facilitate the offering of more services
Increase customer loyalty
Attract new customer
Reduce customer attrition

E-banking security management
 Need to aware customers about all possible internet
fraud
 Avoid cyber-café for online transactions
 Software programs like – spyware and trojan – are
designed to capture key strokes on keyboard, thus
collecting consumer’s personal information.

this problem is overcame by virtual keyboard or
online keyboard.
 Banks are providing two level authentication
process
 Genuine websites have their address starting
with ‘https://’ (not just ‘http://’)
s - literally stands for security
 Should change the password frequently and
using alpha numeric or characters like $,#,%
helps.

• TECHNOLOGY MANAGEMENT
IN HUMAN RESOURCE
MANAGEMENT

HRM
• Human resource management is a management
function concerned with hiring, motivating and
maintaining people in an organization. It focuses on
people in an organization.
• OBJECTIVE: Providing trained and well motivated
employees

• Human resource information system or the
HR Technology refers to the system and
processed at the intersection between
HRM and IT.
• To reduce the manual workload of the
administrative activities. Organization
began to electronically automate many of
these processes by introducing
speacialised HRMS.

Human Resource Management
System encompasses
• PAYROLLS
• WORK TIME
• HUMAN RESOURCE MANAGEMENT
MODULE
• RECRUITMENT
• TRAINING MODULE.

TECHNOLOGY MANAGEMENT IN
BUSINESS PROCESS MANAGEMENT

BUSINESS PROCESS MANAGEMENT
• Business process management (BPM) has been a
feature of the technology.
• BPM has been defined as a method of efficiently
aligning an organization with the wants and needs
of its customers.

• BPM is emerging as a solution to cater the
needs of highly differentiated business
process.
• Gain a clear complete and comprehensive
understanding.

CUSTOMER RELATIONSHIP
MANAGEMENT
1. Contacts with its current and prospective
customers.
2 CRM software system can be accessed and the
information about the customers can be stored.

3. CRM’S goals are to improve services provided to
customers and to use customer contact information
for the targeted marketing
4. It includes :

A. Business relationship.

B. Front office operations.
C. Back office operation.

BENEFITS OF BPM
1) Reduces process time.
2) Eliminates Errors and increases productivity.
3) Improves Regulatory compliance.

Technology
Management in
Hospitals

Hospital Management System
• Reduce costs and improve the accuracy
and timeliness of patient care,
accounting and administration, record
keeping and management reporting.
• Hospital workflow management, and
laboratory management, easily
customizable to the requirements of
any hospital.

Features of
Hospital Management System
• Comprehensive patient record management
• Total security and privacy of EMR (Electronic
Medical Record) through world class data servers
• Centralized/Integrated Medical Billing Service
• Laboratory Information System (LIS) for all
operational, Diagnostic and administrative
functions in a laboratory

• Complete web based administration of the system
• Highest security at User Level, Module Level and
Form Level
• Unique patient ID, generated after OPD and IPD
registration, helps in centralizing the patient related
information.
• Track the entire medical history of a particular
patient through Doctor’s Module
• MIS reports for the smooth functioning of Hospital
Management

Most Modern (Medical)
Technology

• Patients are treated according to the latest
scientific findings and using the most modern
medical technology. To improve the security of
the patients and employees, the clinics have also
put a particular focus on high-tech: since the
summer of 2004, MOBOTIX cameras have
provided constant
monitoring of the gates
and other critical points
onthe clinic premises.

Central Monitoring

• providing central monitoring for all the entrances
and access points
• critical points, such as the cash desks and banking
machines or the waiting room in the emergency
room, are also under the watchful eye of the front
desk staff
• Used for reasons of security and
documentation

Technology Management
&
Effect's on BPO Industry

DATA MINING

Data mining is, in some ways, an extension of statistics, with a
few artificial intelligence and machine learning twists thrown in.
Like statistics, data mining is not a business solution, it is just a
technology.
Present Data Mining Technology Used By
IBM, Oracle & Microsoft.

An Overview of Data Mining
Techniques

Classical Techniques

Next Generation Techniques

Statistics

Trees

Neighborhoods

Networks

Clustering

Rules

COMPANY B

Potential customer’s

Benefits
•Better Customer Relationship.
•Customer Acquisition.
•Campaign Optimization.
•Scoring Your Customers.
•Database Marketing.

3. Relationship of Technology with Wealth of Nation & Firms
Specific Knowledge (competitive advantage).
Productivity growth is indispensable to growth in national income and wealth.
Research carried out over the last 30 years demonstrates that technological
change is an important contributor to productivity growth, and therefore to
growth in the income and wealth of nations. The last decade of the twentieth
century presents great challenges and opportunities to policy makers and managers concerned with improving technological
and economic performance.
Technological change is an essential ingredient in the processes of growth.
Investment in technological improvement and in the complementary assets and
activities needed
to support innovation is a positive sum strategy for improving living
standards.
Enhanced capital, labor and technical progress (or equivalently, total factor
productivity) are the three principal sources of the economic growth of
nations. The rate of growth of labor is generally constrained by the rate of
growth of population. For industrialized countries, the rate of growth of the
labor force is seldom higher than two percent per annum, even with
international migration. Consequently, the rate of growth of capital (physical

Firms Specific Knowledge (competitive
advantage)

• Creation of knowledge: Efforts at creating new capability may
be focused on better satisfying the needs already being
addressed or on responding to new needs (creating new
business).
– Includes basic research, applied research, and development.

• Application of knowledge (Doing): Applying newly acquired
capability or creative application of already available
capability.
– Includes product (design engineering), process (manufacturing
engineering, quality control, fabrication, computer-integrated
manufacturing), and market (application engineering, physical
distribution, and product service).

Technological Innovation in a Competitive
Environment
• Decisions about technology and innovation are very
strategic and managers need to approach them in a
systematic way.
• Two generic strategies a company can use include
– Low-cost leadership can drive innovation as companies try
to gain cost advantages through pioneering lower-cost
product designs
– Differentiation strategy can drive innovation as companies
seek the advantages that come from having a unique
product or service that customers pay a premium price for

Product
technological
change

Process
technological
change

TECHNOLOGICAL POLICIES AND GENERIC
COMPETITIVE STRATEGIES
GENERIC
Overall Cost
Leadership
TECHNOLOGICAL
Product devt to reduce
product cost by
lowering materials
content, facilitating ease
of manufacture,
simplifying logistical
requirements.
Learning curve process
improvement.
Process devt to enhance
economies of scale.

STRATEGY
Overall Differentiation
POLICIES
Product devt to enhance
product quality,
features, deliverability,
or switching costs.

Process devt to support
high tolerances, greater
quality control, more
reliable scheduling,
faster response time to
orders, and other
dimensions that
improve performance.

(Porter, 1983)

Focus-Segment
Cost Leadership

Focus-Segment
Differentiation

Product devt to
design in only
enough
performance for
the segment’s
needs.

Product design to
exactly meet the
needs of the
particular business
segment
application.

Process devt to
tune production
and delivery
system to segment
needs in order to
lower cost.

Process devt to
tune the
production and
delivery system to
segment need in
order to improve
performance.

DEGREE OF MARKETING
DIFFERENTIATION

MICHAEL PORTER’S MATRIX
2

High

3
Outstandin
g success

Niche/focu
s

4
Disaster

1
Cost
leadership

Low
High

RELATIVE
COSTS

Low

Analysis of the external environment

Strategic
analysis

Analysis of internal skills and resources
Analysis of stakeholder needs and
expectations

Strategic
direction

Strategy
choice

Formulate strategic objectives
Identify performance measures
Generate strategic options
Choose a preferred strategy

Develop appropriate systems

Strategy
implementation

Acquire and utilise skills and resources
Develop appropriate organisation
structure
Manage the culture

Strategy
evaluation
& control

Measure strategic objectives
Take corrective action

VISION MISSION VALUES

STRATEGIC INFORMATION SYSTEM

The Strategic Management Process
(Source: Viljoen and Dann, 2000, p47)

DETERMINANTS OF THE LEADERSHIP FOLLOWERSHIP CHOICE
• Industry structural characteristics:
–
–
–
–
–

opportunity to influence cost or differentiation
the uniqueness of the firm’s technological skills
first mover advantages
the continuity of technological change
rate of change in process technology or customer
purchasing behaviour
– irreversibility of investments
– uncertainty, and
– leadership externalities.

LEADERSHIP EXTERNALITIES
• Gaining regulatory approvals and code compliance
• Winning customers away from substitutes
(marketing costs, penetration prices)
• Customer education on product usage
• Investments in infrastructure such as supply sources,
machinery, training repair and service personnel
• Investments to improve the performance price or
availability of complementary goods.

Strategic

Technology
leader

Catch up or
get out

Operational

Importance of technology in industry

Technology Evaluation Matrix

De-emphasise
technology

Technology
adopter

Leader

Laggard

Technology position of the firm in industry

Technology Followership
• Following the technology leader can support
both low-cost and differentiation strategies
– The follower learns from the leader’s experience
– The follower can avoid the costs and risks of
technology leadership
– The follower can adapt the products or delivery
systems to fit buyers’ needs more closely

TECHNOLOGICAL LEADERSHIP-FOLLOWERSHIP
AND GENERIC STRATEGIES
Overall cost
leadership
Overall
differentiation

Focus—lowest
segment cost
Focus—
segment
differentiation

Technological Leadership
First mover on lowest cost product
or process technology.
First mover on unique product or
process that enhances product
performance or creates switching
costs.
First mover on lowest cost segment
technology.
First mover on unique product or
process tuned to segment
performance needs, or creates
segment switching costs.

(Porter, 1983)

Technological Followership
Lower cost of product or process
through learning from leader’s
experience.
Adapt product or delivery system
more closely to market needs (or
raise switching costs) by learning
from leader’s experience.
Alter leader’s product or process to
serve particular segment more
efficiently.
Adapt leader’s product or process to
performance needs of particular
segment or create segment
switching costs.

TECHNOLOGICAL LEADERSHIPFOLLOWERSHIP AND GENERIC STRATEGIES
Technological Leadership
Technological Followership
Overall cost First mover on lowest cost product Lower cost of product or process
or process technology.
through learning from leader’s
leadership
experience.
First mover on unique product or Adapt product or delivery system
Overall
more closely to market needs (or
differentiation process that enhances product
performance or creates switching raise switching costs) by learning
costs.
from leader’s experience.

(Porter, 1983)

STAGE OF `INDUSTRY’ DEVELOPMENT

Growth

Leade
r
Strategic
position of
organizatio
n
Follower

Keeping ahead
of the field

Imitation at
lower cost
Joint ventures

Maturity
Cost leadership
Raise barriers
Deter
competitors
Differenti
ation Focus

Decline
Redefine scope
Divest
peripherals
Encourage
departures
Differentiatio
n
New
opportunities

72

Assessing Technology Needs
• In today’s increasingly competitive
environment failure to correctly assess the
technology needs of the organization can
fundamentally impair the organization’s
effectiveness
• Assessing the technology needs of the
organization involves:
– measuring current technologies
– Measuring external trends affecting the industry

Measuring Current Technologies
• A technology audit helps clarify the key technologies on
which an organization depends
• One technique for measuring competitive value categorizes
technologies as:
– Emerging technologies are still under development and
thus are unproved
– Pacing technologies have yet to prove their full value but
have the potential to alter the rules of competition by
providing significant advantage
– Key technologies have proved effective, but they also
provide a strategic advantage
– Base technologies are those that are common place in the
industry

Assessing External Technological
Trends
• There are several techniques that managers
use to better understand how technology is
changing within an industry
– Benchmarking is the process of comparing the
organization’s practices and technologies with
those of other companies
– Scanning focuses on what can be done and what
is being developed, placing a great emphasis on
identifying and monitoring the sources of new
technologies for an industry

The Technology Life Cycle

• The technology life cycle is a predictable pattern followed
by a technological innovation, from its inception and
development to market saturation and replacement.

• In broad terms the "s" curve suggests four
phases of a technology life cycle - emerging,
growth, mature and aging.
• These four phases are coupled to increasing
levels of acceptance of an innovation or, in our
case a new technology. In recent times for many
technologies an inverse curve - which
corresponds to a declining cost per unit - has
been postulated. This may not prove to be
universally true though for information
technology where much of the cost is in the
initial phase it has been a reasonable
expectation.

• Role of technology management function in
organization is understand the value of certain
technology for the organization. Continuous
development of technology is valuable as long as
there is a value for the customer and therefore
technology management function in organization
should be able to argue when to invest on
technology development and when to withdraw.

TECHNOLOGlCAL INNOVATION
CONTRIBUTION OF TECHNOLOGY IN ECONOMIC AND SOCIAL
PROGRESS
Technology is Practical value of the applied sciences
Science And Technology
• Technological Progress
• The Competitive Advantage of Nations
• Technological Innovations to gain competitive advantage
• Technological strengths among nations

• Monopoly = one supplier
• Introduction phase
• Examples?

• Oligopoly = a few suppliers
• Growth phase
• Examples?

• Pure Competition = many suppliers
• Maturity phase
• Examples?

Pulling it Together: The Product Life
Cycle
• Sales are low to
stimulate demand
• Money spent on
promotion

• Sales level off
• More sales
and
competition

Monopoly

Monopolistic
Competition

• Higher competition
• Less promotion

Oligopoly

Pure
Competition

Nontraditional PLCs
• Fads
• Trends
• Niche
• Seasonal

Technology Intelligence & Forecasting

What is Technology Intelligence ?

• Technology Intelligence (TI) is an activity that enables companies to
identify the technological opportunities and threats that could affect the
future growth and survival of their business.
• The Centre for Technology Management defines 'Technology
Intelligence' as "the capture and delivery of technological information as
part of the process whereby an organisation develops an awareness of
technological threats and opportunities.”
• 'Technology Intelligence' aims to capture and disseminate the
technological information needed for strategic planning and decision
making.
• Companies install an intelligence system (technology, market, business
or competitive intelligence) to collect and analyze information on
market, product, and technology changes and on other environmental
transformations in order to increase their
decision-making
quality and competitiveness.


Why Technology Intelligence?
• As technology life cycles shorten and business become more
globalized; having effective T I capabilities is becoming
increasingly important.
• T I provides an understanding of current & potential changes
taking place in the environment.
• T I provides important information for strategic decision-makers
• T I facilitates and fosters strategic thinking in organizations.
• If conducted properly, T I leads to enhanced capacity &
commitment to understanding, anticipating and responding to
external changes

Levels of Technology Intelligence ?

Three levels of T I
• Macro level – technological trends & developments which can
influence entire economy / major sectors
• Industry or business level - technological trends & developments
which can influence specific industries / businesses
• Program or project level – technological trends & developments
which can influence specific technology related program or project
The above three levels differ in terms of
• Breadth of technology
• Clarity of trends
• Degree of precision of trends
Different levels of technology intelligence can be applied /
useful in different context

Levels of Technology Intelligence ?

What is Technology Mapping ?
• Technology Intelligence could be both internal as well as
external. Internal technology intelligence is called
technology audit.
• External technology intelligence is called technology
mapping.
• Mapping technology environment refers to the process of
gathering external data and analyzing it to derive the
intelligence for major strategic decisions.

What is Technology Mapping ?
Process of mapping the technology environment consists of
four interlinked steps:
• 1. Scanning the environment to detect ongoing & emerging
changes
• 2. Monitoring specific environment trends & patterns
• 3. Forecasting the future direction of technological changes
• 4. Assessing the current & future environmental changes for
understanding their strategic & organizational implications

What is Technology Forecasting ?

• Technology forecasting attempts to predict the
future characteristics of useful technological
machines, procedures or techniques.
• Technology is forecast in two areas:
• 1. Technologies that support internal software
development, which includes tools, processes, and
methods for producing the software that will end up
in products.
• 2. Customer solutions, meaning technologies that
will affect (or end up as) features or capabilities
embedded in products.

1.
2.
3.
4.

Elements of Technology Forecasting
Time of the forecast – a single point of time, or a time
span.
Approach in Technology Forecasting
Statement of functional capability / performance
characteristics of technology – a quantitative measure of
its ability to carry out the functions.
Statement of Probability
– Probability of achieving a given level of functional
capability by a certain time; or
– Probability distribution over the levels that might be
achieved by a specific time.

Performance Characteristics

Why Forecast Technology?
Technology Progression

Physical limits of technology

< Technology
Regime 2

Technology
Regime 1 >

Time / funds / efforts

Benefits of Technology Forecasting ?
Since 1990s rate of technological change has become faster.
Individual, organization or nation affected by technological
change as it invalidates previous resource allocation based
on historical facts / data.Therefore technology forecast is no
more avoidable.
Following factors necessitate forecast of technology:
• To maximize gain from events external to an organization
• To minimize loss associated with uncontrollable events
external to an organization.

Benefits of Technology Forecasting
• Contd …..
• To maximize gain from events that are result of action taken by an
organization.
• To offset the actions of hostile or competitive organizations
• To forecast demand for production and /or inventory control.
• To forecast demand for facilities and capital planning.
• To forecast demand to ensure adequate staffing
• To develop administrative plans & policies internal to an
organization.
• To develop policies that apply to people who are not part
of the organization.

Benefits of Technology Forecasting
Contd …..
According to Ralph Lenz, technology forecast can play following specific roles
in improving the quality of technology decisions:
• The forecast identifies limits beyond which it is not possible to go.
• It establishes feasible rates of progress, so that the plan can be made to
take full advantage of such rates of progress,
• It describes the alternatives that are open for choice.
• It indicates the possibilities that might be achieved if desired.
• It provides a reference standard for the plan. Thus the plan can be
compared with the forecast at any point in time to determine whether it
can still be fulfilled or whether because of changes in the forecast, it has
to be changed.
• It furnishes warning signals which can alert the decision maker
that it
will not be possible to continue present activities.

Techniques of Technology Forecasting
Ideally technology forecasting should be rational and analytical
based on available pertinent data. In following three
situations / circumstances expert opinion may be sought for
making technology forecast:
• No historical data exists – as it could be new technology / new
area of research & development
• Impact of external factors may be more important than the
factors which governed previous development of technologyi.e past data has become irrelevant and cannot be relied for
making technology forecast
• Ethical or moral considerations may dominate economic &
technical considerations thus seeking lesser reliance on
available data.

Techniques of Technology Forecasting
• In above three situations, as the historical data is either not
available or it has become irrelevant, group of experts are
used to make technology forecast; as there is an old saying -“Two heads are better than one.” By involving a number of
experts, there is pooling of divergent ideas and various
dimensions may be analyzed in better manner thus leading
to a better technology forecast.
• A. Techniques involving a group of experts are :
– 1. Committees
– 2. Delphi
• B. Other Techniques based on historical data are :
– 3. Exploratory Forecast
– 4. Normative Forecast

1. Committees
Key advantages of committees are as under:
•
Sum total of knowledge is greater than individual
knowledge
•
Number of factors considered would be more than those
considered by an individual
•
There is pooling of divergent ideas and various dimensions
may be analyzed in a better manner
•
Helps in avoiding individual biases
•
Better knowledge & awareness of one member may
compensate for lack of knowledge of another member.

1. Committees
Few limitations associated with committees are :
•
Ther is no guarantee that misinformation will be cancelled
out by using a group of experts. There is no guranatee that
wrong ideas / judgements will be cancelled out by good
ideas / judgements.
•
There is usually social pressure to agree with majority,
which may be implicit or explicit.
•
Reaching agreement becomes a goal in itself. Good
forecasts may thus be watered down in a bid to reach a
consenus.

1. Committees
Contd …
•
A strong vocal minority may overwhelm majority , thus
making process vulnerabe to hijack by dominant
individuals
•
Vested interests may be presented very strongly in the
beginning thus setting defined direction in the beginning
•
Entire group may share a common bias if a common
culture is shared by all of them thus nullifying advantage of
the group.
•
There may be emotional involvement of certain members,
leading to conflicts
•
Lot of time and efforts may be consumed in reaching
to a consensus

2. Delphi
Three characterstics that distinguish Delphi from conventional
face to face group interactions ( like committee) are as
under:.
1. Anonymity - anonymity is maintained through questionnaire
as under :
•
Avoids possibility of identifying a specific opinion with a
particular person.
•
Originator can thus change his mind without publicity
admitting that he has done so.
•
Each idea can be considered on its merits, regardless of
the fact whether group members may have high or low
opinion about originator.

2. Delphi
Contd …
2. Interaction with controlled feed back
•
Group interaction is through questionnaires and answers to
questionnaires
•
Coordinator / moderator picks relevant informations & each group
member is informed of status of group’s collective opinion &
arguments for & against each point of view.
•
Controlled feedback prevents group taking rigid stand & helps to
concentrate on its original objectives.
3. Statistical Group response
•
Delphi presents the statistical group reponse that presents the
opinions of entire group giving both the
“Centre” of
the group and the degree of spread
about that
centre

2. Delphi
Limitations / Disadvantages of Delphi
•
The success of Delphi mainly lies in coordinator.
•
The experts must carry relevant experience
•
Further like committee, Delphi is based on opinions and
not on data.

3. Exploratory Forecast
•

•

•

•

An Exploratory Forecast starts with past & present
conditions and projects these to estimate future
conditions.
The exploratory forecast is based on technology push and
is opportunity oriented i.e. searching for future
opportunities.
Exploratory forecast implicitly assumes that required
performance can be achieved by reasonable extension of
past performance.
Commonly used techniques of exploratory forecast are :
Trend extrapolation.

3. Exploratory Forecast
Trend Extrapolation
• Assumption: Time series data from the past contains all the
information needed to forecast the future.
• The forecaster extends a pattern found by analyzing past
time series data.
• For example: A technological forecasting to forecast future
aircraft speed …. by studying historical time series of aircraft
speed records, by finding a pattern (trend), and extending it
to the future to obtain a forecast.

4. Normative Forecast
•

•

•

A Normative Forecast starts with future needs and
identifies the technological performance necessary to
meet these required needs.
The normative forecast is based on market pull and is
mission / need –oriented i.e. finding ways for meeting
future needs.
Normative forecast implicitly forecasts the capabilities
that will be available on the assumption that needs will
be met . Thus in case of normative forecast, meeting
needs on defined future time is highly important

Exploratory &Normative Forecast

•

Few techniques of Normative Technological Forecasting
are as under:
–
Relevances Trees
–
Decision Matrices : Horizontal or vertical
–
Morphological Analysis
–
Network Techniques
–
Mission Flow Diagrams etc

•

•

Morphological Analysis - It is a normative technique developed by Fritz
Zwicky which provides a framework for exploring all possible solutions to
a particular problem. The morphological analysis involves the systematic
study of the current and future scenarios of a particular problem. Based
on this study, possible gaps are identified and the morphological analysis
further provides a framework to explore other alternatives to fill these
gaps.
Relevance Trees - It is an organized ‘normative’ approach starting with a
particular objective and used for forecasting as well as planning. The basic
structure looks like an organisational chart and presents information in a
hierarchical structure. The hierarchy begins with the objectives which are
further broken down into activities and further into tasks. As one
descends down, the details increase at every level. The entries when
taken together at each level describe the preceding level completely.
Also, all activities and tasks depicted should be mutually exclusive

•
•

•

A mission / control flow diagram (CFD) is a diagram to
describe the control flow of a business process, process or
program
Mission Flow Diagrams - have been originally conceived by
Harold Linstone as a means of analyzing military missions.
This involves mapping all the alternative routes or sequences
by which a given task can be accomplished. The analyst needs
to identify significant steps on each route and also determine
the challenges/costs associated with each route. The
performance requirements can then be derived for each
associated technology and the same can be used as
normative forecasts.
.

Network Technique
•
Firstly, the elements of a technological forecasting network
are formulated for the purpose of converting the qualitative
description of a technological system to a stochastic (nondeterministic) network form.
•
Then, an analytical procedure for the synthesis of the
network is given.
•
Finally, examples are included for the purpose of illustration.

Technology Acquisition &
Transfer

What is Technology Transfer ?
•
•
•

Technology Transfer is the process by which technology is
disseminated.
It involves communication of relevant knowledge by the
Transferor to the Recipient.
It is in the form of technology transfer transaction which
way or may not be a legally binding contract.

What is Technology Acquisition ?
Twoterms technology transfer and technology are normally
used interchangeably.
The verb “Acquire” means
•
To come into possesion of; get as one’s own
•
To gain for oneself through one’s actions or efforts
Technology Acquisition is the process of acquiring a new
technology, new product, process or service ; by efforts of
an individual or an enterprise or any other macro entity.
This process can be conducted either internally or
externally to the enterprise.

Types of Technology Transfer
•
•
•

Scientific Knowledge Transfer, Direct Technology
Transfer, Spin-off Technology Transfer
Informal Technology Transfer & Formal Technology
Transfer
Internal Technology Transfer & External Technology
Transfer

Internal Technology Transfer

Internal Technology Transfer refer to such technology transfers
/ investments where control on the ownership & usage of
technology resides with the transferor.
It is a complex process involving following decisions:
•
Timing : When to introduce new technology / products in
the market?
•
Location : Where to transfer new technology / products?
•
Multi-functional teams --Which staff members should be
involved in transfer process ?
•
Communication methods & procedures – What type of
Communication methods & procedures be adopted to
facilitate transfer ?

Barriers to Internal Technology Transfer
• R & D goals are not known to Production Department.
• Difficulties in stopping current production to test new
products / processes
• R&D Department does not understand needs & capability of
Production Department.
• In general, Production Department is resistant to innovation
and is bound by routine.
• Non-linkage of new technologies to marketing / customer
needs.

Overcoming Barriers to Internal Technology
Transfer

• Top management support and participation in the transfer
process
• Providing supportive organizational culture
• Use of multi-functional teams in the transfer process
• Ensuring effective communication in the organization
• Bringing R&D closer to production.
• Rotation of few person between R&D and production
• Linking & participation of marketing elements in the transfer
process.

Steps in Internal Technology Acquisition by a firm

1. Planning new products / services / processes to be offered
– planning must incorporate voice of the customer & user
needs
2. Screening new products, processes or services – only
viable / feasible items be offered as only one out of 4/5
becomes a commercial success.
3. Initiating development process – must be properly designed
and carried out so that it facilitates success. Enterprises
should
a. Consist of temporary system capable of adapting to
dymanics of change
b. Organize the systems around problem solving

Steps in Internal Technology Acquisition by a
firm

c. Have flexible management system & replace rigid
management system
d. Use multi-functional teams.
e. Proper integration between R&D, Production & Marketing
sub-systems
f. Ensure effective communication
g. Carrying out trial production on small scale and test
marketing
h. Improving design & production processes based on
experiences / feedback
i. Commercialization i.e. mass production & sales

External Technology Transfer
• In these transfers, control on the ownership & usage of
technology usually does not remain with transferor and it
passes on to the recipient, like joint venture with local
control, licensing agreement etc.

External Technology Transfer
Successful external technology transfer depends upon
following factors:
• Type of the technology being transferred
• Complexity of the technology being transferred
• Transfer mechanism selected
• Relationships between the parties – building of mutual trust
• Core competencies of the parties & compatibilty thereof
• Organizational culture of the parties & mutual
understanding thereof

Methods of External Technology Transfer
•
•
•
•

Co-operative & collaborative ventures / strategic alliances
Licensing agreements
Contracting agreements
Enterprise acquisition.

Why External Technology Transfer
• Technology already developed saves time & efforts
• Sometimes Growth objectives or competitive goals cannot be
reached through internal development
• Lack of risk taking ability for innovations
• Lack of internal resources (physical & human) for innovation
• Firm does not have core competencies to deal with complex
technological developments.
• Need to keep up with competitors
• Need to cope up with acceleration of technological change
• As a part of firm’ strategy --- let other firms take
big risks & it will purchase technology
developed by them.

Barriers to External Technology Transfer
• Associated costs – usually high prices are required to be paid
in the form of royalities, technical & knowhow fees etc over
medium to long term period
• Appropriatesness of technology i.e. its suitability to core
competencies and market needs is always a point of
discussion and investigation
• Heavy reliances on foreign technology- may make transferee
/ recipient technologically dependent on external
technology providers / transferors even for small issues
• Lack of mutual trust between two parties may hinder full &
timely transfer

Barriers to External Technology Transfer
• There is risk of loss of control over technology and the
transferee / recipient may use technology in an arbitrary
manner
• Transfer may render existing technology & its related
products / services / processes obsolete
• Transferee may turn a potential competitor in future.
• Mismatch in core competencies of the transferor &
transferee may create difficulties in transfer
• Different organisation cultures may create difficulties in
transfer
• Lack of effective communication between the parties
may also create difficulties in transfer

Overcoming Barriers to External Technology
Transfer

• Proper & well defined technology transfer agreement should
be signed
• Proper assessment / evaluation of appropriateness of
technology
• Proper assessment / evaluation of compatability of core
competencies of the parties
• Building pre-agreement relationships so as to develop
mutual trust and so as to understand culture of opposite
parties
• Seeking cross cultural training
• Ensuring effective communication
• Anticipating problems and adopting measures for
facilitating transfer

Steps in External Technology Acquisition by a firm –
1.
2.
3.

4.
5.
6.
7.
8.

Identification of Need
Developing list of suitable technology providers
Short listing / selecting suitable technology providers on
the basis …. Cultural compatibility, compatibility of core
competences, appropriateness of technology, technical
feasibility etc
Negotiation
Agreement
Payments as per agreement
Transfer of specifications, blueprints, designs, documents,
CDs to purchaser
Training of technical personnel of purchaser

Modes of Payment for Technology Transfer
•
•
•
•
•

Lumpsum payment or periodical instalments
Royalities as a %age of sales over next few years
Cross-licensing agreements
Contracted supply of output
Issue of equity shares in lieu of technology transferred

Acquisition of Technology By Nation
• What factors influence acquisition decision?
• What are national strategies for technology acquisition?
• Methods of technology acquisition by a nation

Methods of Technology Acquisition By Nation
• Attracting TNCs / MNCs
– Through direct measures viz. making a positive list of
industries open to FDI
– Through indirect measures - viz by offering incentives &
subsidies
• Attracting TNCs / MNCs into natural resource processing &
inducing greater value additions
• Using TNCs / MNCs to attract / encourage their overseas
suppliers to invest into country
• Improving skills & training of local technologists by involving
TNCs / MNCs

Methods of Technology Acquisition By Nation
• Developing industrial parks / technology parks to attract high
technology investors
• Offering incentives to existing investors to move to more
complex technologies and to increase or upgrade
technological R& D base
• Changing competitive environment and existing incentive
structure to encourage world class technology &
management
• Improving technological access for local firms for
outsourcing / technology transfer
• Collecting, organising & disseminating information about
technology development

Regulation of Technology Transfer By Nation

• The regulation is undertaken in two directions:
– Regulation of import of technology / technology inflows
– Regulation of export of technology / technology outflows & Setting
up of Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS)
Abroad
• Why regulation of import of technology? – What are advantages &
disadvantages of import of technology?
• What are – Guidelines on import of Foreign Technology into India?
• Why regulation of export of technology? –What are advantages &
disadvantages of export of technology?
• What are – Guidelines on Export of Technology & Setting up Joint
Venture & Wholly Owned subsidiary abroad?

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