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Technology & Its

Importance

What is Science?
Science mainly deals with the natural world. It is the
study of the natural laws, which govern the universe.
Examples ??
Science is public and universal knowledge.
Science is genrally a boon for all human-beings.
Utility of science does not undergo change with the
passage of time. Scientific development usually follows
stages like discovery and growth.

What is Scientific Discovery?

What is Scientific
Discovery?

Scientific Discovery results in something novel


to the society / the world. It does not mean
mere discovery of new use, new arrangement or
new reorganization of existing scientific
principles / existing scientific laws, existing
technology or its related products or services.
Rather it focuses on finding some new scientific
principle or scientific law etc.
What is new ?

What is Scientific
Discovery?

Scientific Discovery means a new scientific


principle, new technology, new product or new service
means that these did not exist before or have been
invented / introduced recently or have been invented /
introduced for the first time.
What is nature of scientific discovery?
What are the steps in scientific discovery?

What is nature of Scientific


Discovery?

It is a highly creative process.


The scientific discovery results into some novel
scientific principle / new scientific law etc.
The ideas for scientific research and discovery
can come from following sources:
Inspiration - Deduction - Induction
It can be both systematic and unsystematic.

What is nature of Scientific


Discovery?

. Contd

Scientific research and discovery leads to increase of


overall scientific knowledge
Scientific research and discovery usually focusses on
discovering previosly unknown scientific principles or
scientific laws, which already hiddenly exist i.e it is
usually past and present oriented.
Many a times, scientific research is pursued
even if immediate costs are more than
immediate benefits.

What are the steps in


Scientific Discovery?

1. Statement of Problem, Purpose or Research


Question
2. Hypothesis Formulation
3. Listing of Materials Required
4. Laying Down Procedure for Conducting
Research / Experiment
5. Experimentation, Observations and Data
Collection
6. Conclusion

What is Technology ?
Technology has been derived from Greek word
techno-logia Techno means an art or skill
and Logia means science or study. Thus
technology means systematic treatment of, art
or study.
According to Oxford English Dictionary -
Technology is application of scientific knowledge
for practical purposes.

What is Technology ?
Technology means - the totality of the means employed
to provide objects necessary for human sustenance and
comfort. Objects include not only goods but services, i.e.
technology is not restricted to hardware but may include
know-how and software.

What is Technology ?
The meaning of Technology, in different contexts, is as
under: Totality of various technologies vs a specific /
particular technology
Technology as technical means - people use to
improve their surroundings.
Technology as tool as a device or implement
used for a particular task
Technology as technique - - a way of doing
something or some practical skill
Technology as a cultural force which forms or
changes culture

What is nature of Technology ?


It involves purposive applications of various
fields of sciences and scientific knowledge.
It is used to provide objects (like products, machinery,
tools, services etc.) necessary for human sustenance
and comfort.
It is not restricted to hardware, but also includes
know-how and software.
It has both public & private components.

What is nature of Technology ?


It is complex in nature- most modern tools are
difficult to understand as to how to manufacture
or how to use or both.
It is dependent on other technologies.
It is big in scale dominates modern life
Technology carries different meaning to different people
in different situations.

What are the differences between


Science and Technology
Many times, two terms are used
interchangeably
Thin line of demarcation between the two terms

What are the differences between


Science and Technology
1. Science largely deals with the natural world.
Technology largely deals with the human-made world
2 Science mainly focusses on understanding scientific
principles / scientific laws
Technology mainly focusses on doing i.e. it is
application oriented
3. Science is public and universal knowledge
Technology comprises both public and private
knowledge

What are the differences between


Science and Technology
4 . Scientific research and discovery leads to increase of
overall scientific knowledge
Technology development leads to innovation of new
products, services or processes
5. Utility of science does not undergo change with the
passage of time.
Technology and the product, service or process
associated with it, undergo changes like the biological
concept of a life cycle (i.e. birth, growth, maturity &
death)

What are the differences between


Science and Technology
6. Scientific research and discovery is pursued even if
costs may sometimes exceed benefits
Technology development is manytimes guided by cost
vs benefit analysis
7. Science is generally useful for all human-beings
Technology provides specific advantages to owner and
users (and some disadvantages to society)

What are the differences between


Science and Technology
8. Scientific research and discovery usually focusses on
discovering previosly unknown scientific principles or
scientific laws, which already hiddenly exist i.e it is
usually past and present oriented
Technology development is mostly present and future
oriented i.e. deals with finding solutions to present
problems and developing future applications
9 . Scientific research and discovery precedes technology
development
Technology development succeeds / follows
scientific research and discovery

Technology & Wealth of Nations

Technology & Wealth of Nations


History of last 500 years of the world suggests
that technological progress is crucial for military
strength of a nation and its survival as an entity.
Not only militarily, it is crucial for economic
progress of nations as well.
Due to technological progress, USA, Western
Europe & Japan etc are able to ensure continued
economic progress despite temporary ups &
downs.

Technology & Wealth of Nations


a. In domestic market, a nation and its firms, having
better and advanced technology can enjoy following
advantages :
Improved and efficient functioning of various
organizations in the nation

Technology & Wealth of Nations


a. .. contd .
Technological progress and infusion brings major
changes and improvements in the overall functioning of
organizations leading to transformations viz.
transformation in Banking Sector, Telecom Sector etc.
Enhanced capability to fight foreign competition and thus
retaining control over strategic national economic assets
Stability in sales and profits of business firms; stable
growth of sales and profits

Technology & Wealth of Nations


a. ... contd .
Regular employment generation and high standards of
living
Lesser probability of occurance of economic recession
and lesser adverse impact of economic recession if it
occurs
Relative stability in national income
Growth of national economy

Technology & Wealth of Nations


a. contd .
Proper management of natural disasters and other crisis
like earthquake, tsunami, floods, droughts, oil spills etc;
and faster recovery from such disasters and crisis
Proper management of law and order, terrorism, internal
security, and crossborder movements
Better infrastructure and facilities like medical facilities
etc; and better infrastructure management
Development of technologies for conserving and
strengthening natural resource base; for protecting flora
& fauna ; and environment

Technology & Wealth of Nations


b. In external markets, a nation and its firms having
better and advanced technology can enjoy following
advantages :
Technological competitive advantage
Boost to exports
Forex earnings through exports
Disposal of surplus to external markets thus maintaining
stability in domestic prices
Monopoly & high prices for hi-tech products in the
international markets

Technology & Wealth of Nations


b. contd
Earnings from external markets provide additional funds
for supporting research & development at home
Globalisation of operations leading to benefits of
economies of scale of mass production, and cost
reduction by procuring low cost resources / inputs from
anywhere in the world.

Technology & Wealth of Nations


b. contd
Facilitates outbound Foreign Direct Investment (FDI) by
domestic firms leading to earnings through repatriation
of profits, sale of machinery, sale of components and
sub-assemblies etc.
Earnings through technolgy transfer agreements
Employment generation & high standards of living
As the total size of the national economy becomes
bigger due to participation in international busniess,
chances of domestic stagnation / recession decline

Technology & Wealth of Nations


b. contd
Growth of national economy
Developing international reputation and attracting
overseas investors
A prominent role for the nation in the international
economic matters and international decision- making
Increase of national influence over other countries
Enables the nation to monitor movement of its ships,
cargos and other resources in the world by using various
technologies like Global Positioning System(GPS) etc.

Technology & Firm specific


Knowledge
Technology development provides unique / specific
ownership advantages to a business firm, which are
known as firm-specific knowledge or firm-specific
advantages.
This firm specific knowledge may be held temporarily or
permanenetly; and are held exclusively.
It includes intangible assets such as technical expertise,
technical knowhow, processknowhow or patents etc.

Technology & Firm specific


Knowledge
contd
The firm specific knowledge provides some sort of
operational and competitive advantages to the owner
business firm and put its competitors in relatively
disadvantageous position.
These firm-specific advantages promise superior returns
to the owner firm over its competitors.
These firm-specific advantages enable a business
enterprise / MNC to move into foreign markets and
become successful in foreign markets despite high
operating costs and problems, (particularly in initial years).

Technology & Firm specific


Knowledge
Importance / Significance of Firm Specific Knowledge /
Strategic Management of Technology (SMOT)
Improvement in quality thus leading to high quality
products
Minimum life cycle costs of product development
Substantially reduced production costs
Shorter lead times from R&D design to commercial
production
High levels of flexibility in responding to changing market
conditions.

Technology & Firm specific


Knowledge
contd
Taking advantage of economics of scale (volume/ mass
production) & economics of scope (variety)
Reduction in number of machine tools required to
manufacture parts
Reduction in floor space requirements due to better
machinery designing and spatial arrangement
Reduction in labour requirements by better utilization of
technlogical strengths
Increase in machine utilization rate by removing
bottlenecks

Technology & Firm specific


Knowledge
contd
Reduction in work in process & finished goods inventories
Reduction in overall cycle time
Simplification of production scheduling, better work flow
Increase in manufacturing capacity
Higher efficiency & higher productivity
Shared use of design & manufacturing data across
different divisons of the organization and its business
partners

Technology & Firm specific


Knowledge
contd
Flexibility in design & manufacturing operations
Increased ability to enter new markets quickly, faster
introduction of new products
Improved management control
Shortened delivery time for customers
Reduced material handling
Increased safety of workforce and consumers
Enhanced capability to fight foreign competition
Stability in sales and profits of business firms; stable
growth of sales and profits

Technology & Firm specific


Knowledge
contd
Increased earnings through exports
Monopoly & high prices for hi-tech products in the international
markets
Facilitates outbound Foreign Direct Investment (FDI) by
domestic firms leading to earnings through captive exports,
repatriation of profits, sale of machinery, sale of components
and sub-assemblies etc.
Earnings through technolgy transfer agreements
Technological progress and infusion brings major changes and
improvements in the overall functioning of organizations leading
to transformations viz.
transformation in
Banking Sector, Telecom
Sector etc.

Lecture 2

What are various types of


technologies?

Generic, Basic & Key Technologies


Embodied & Disembodied Technologies
System & Infra Technologies
Hybrid & Emerging Technologies
Disruptive & Sustaining Technologies

Example Basic Production Line

What are various types of


technologies?

Disruptive & Sustaining Technologies


Disruptive Technology A disruptive technology or
disruptive innovation is an innovation that helps
create a new market and value network, and
eventually goes on to disrupt an existing market
and value network (over a few years or decades),
displacing an earlier technology.
A sustaining innovation does not create new
markets or value networks but rather only evolves
existing ones with better value, allowing the firms
within to compete against each other's sustaining
improvements.

Disruptor

Disruptee

Personal computers

Mainframe and mini


computers

Cellular phones

Fixed line telephony

What are various types of technologies?


Example - Disruptive Technology
Digital
Technology

Chemical
photography

Early digital cameras suffered from low


picture quality and resolution and long
shutter lag. Quality , shutter lag and
resolution are no longer any issue. The
convenience of small memory cards and
portable hard drives that hold hundreds
or thousands of pictures, as well as the
lack of the need to develop these
pictures, has led to replacement of
chemical photographic camera by digital
camera.

What is technology portfolio?


Products or manufacturing processes are
generally not based on single technology.
A number of technologies are embodied /
encapsulated in most of products and
manufacturing processes.
Thus an organization is generally required to
manage a portfolio of technologies.
The technologies in the technology portfolio are
inter-related and influence each other.
Portfolio may keep on changing.

What is technology portfolio?


Both nation & firm are required to maintain an
appropriate technology portfolio.
Technology portfolio decides the
competitiveness and long term economic future
of both nation and the firm.

Technology portfolio of a
firm

a. Technology Portfolio for Manufacture of


Passenger Car
Steel making
Metal cutting
Metal body
forming
Welding
Electrical
engineering
Mechanical
engineering

Electronic
engineering
Combustion
engineering
Rubber & plastic
technology
Glass technology
Paint technology
& So-on

What is Technology Life


Cycle?

The biological concept of a life Cycle (i.e. Birth, Growth,


Maturity & Death) can also be applied to a technology
and the product, service or process associated with it.

What is Technology Life


Cycle?

The technology life-cycle (TLC) describes the


commercial gain of a product through the
expense of research and development phase,
and the financial return during its "vital life" .
The TLC associated with a product or
technological service is different from product
life-cycle (PLC) dealt with in product life-cycle
management. PLC is concerned with the life of a
product in the market-place in respect of timing
of introduction, marketing measures and
business costs.

What is Technology Life


Cycle?

The technology life cycle is concerned with the


time and cost of developing the technology, the
timeline of recovering cost and modes of making
the technology yield a profit proportionate to the
costs and risks involved.
The TLC may, further, be protected during its cycle
with patents and trademark seeking to lengthen
the cycle and to maximize the profit from it.
The development of a competitive product or
process can have a major effect on the lifespan of
the technology, making it shorter.

What is Technology Life


Cycle?

Some technologies, such as steel, paper or


cement manufacturing, have a long lifespan
(with
minor
variations
in
technology
incorporated with time) whilst in other cases,
such as electronic or pharmaceutical products,
the lifespan may be quite short.
The technology life cycle can be broken down
into following distinct stages / phases:

What is Technology Life Cycle?


Stage /
Phase

No

Technological
Stage / Phase

Features

Technology
Development

Basic Technology

II

Technology
Application

Technology + Applications

III

Application Launch Technology + Applications + Product


Launch

IV

Application
Growth

Technology + Applications + Rise in


product sales

Technological
Maturity

Technology + Applications + Fall in


product sales

VI

Degraded
Technology

Minimal Product sales + Loss of


application + Alternative Technology

Example - Technology Life Cycle in


cars
On March 8, 1866 Daimler designed worlds first fourwheeled automobile.
Later, Henry Ford made his first car in 1896 called
Quandricycle and later on introduced model T, which
became a success after installing assembly lines in
1913.
Many technological changes have taken place at very
fast pace in cars during last 140-150 years .

Example - Technology Life Cycle in


cars
Fuels used
Steam
Coal gas
Gunpowder
Mixture of
Hydrogen &
Oxygen
Kerosene
Petrol /
Diesel

Types of Engine

Body

From 2 stroke
engine to 4
stroke

Sharp Edges to
round & smooth
surfaces with
aerodynamics

Manual steering
to Power steering From metallic
interiors to
plastic based
Continuous
interiors
Improvement in

features based
Electricity
on
electronics
Future
aim
:
Car
which can run on road and fly
Solar

Lecture 3

What is Technology Management?


Technology Management (MOT) is concerned with
development, planning, implementation & assessment of
technological capabilities to shape and accomplish the
strategic & operational objectives of an organization or
central planning goals and priorities of a nation.
Technology Management can also be defined as
the 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 Management is set of management
disciplines that allows organizations to manage its
technological fundamentals to create competitive
advantage.

What is Technology
Management?

Technology Management (MOT) is mainly carried out at two levels:


At National Level
At Enterprise Level

What is Technology
Management?

a. Technology Management (MOT) At National Level


--main objective of is to assure that the nation and its
business firms gain sustainable technological
compeitiveness in the international markets and
maintain strong position in the international business on
long-term basis.

What is Technology
Management?

b. Technology Management (MOT) At Enterprise


Level ---main objective is to assure that the firm gains &
maintains a srong position in its core technologies which
are relevant to its product-market relationship and that
these technologies support the firms competitive
strategies.

STRATEGIC TECHNOLOGY MANAGEMENT


SYSTEM (STMS)
Strategic Technology Management System (STMS)
calls for adopting systems approach in the organization
on long term basis i.e. STMS emphasizes systematic
management of technology on long term basis as the
technology moves along its life cycle from birth to
decline.

STRATEGIC TECHNOLOGY MANAGEMENT


SYSTEM (STMS)
Strategic Technology Management System is a
systems life cycle approach for strategic management of
technology that includes eight phases as shown below:

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
I. Technology Creation
This phase involves creation & generation of new
technologies. This phase involves following activities :
Creativity & Invention
Innovation
Senior management commitment to technology creation
and generation
Developing requisite & supportive corporate culture for
promoting technology creation and generation

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)

II. Technology Monitoring


This phase calls for monitoring technology trends and
changes before implementing new technology. It involves
following activities :
Installing & developing information systems for monitoring
technological trends and changes
Competitive analysis to understand competitiveness
provided by existing and prospective technologies
Customer & supplier interfaces to understand market and
technological changes
People links (viz. internal staff, research bodies
etc) to
understand market trends and
technological
changes

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
III. Technology Assessment
This phase involves following activities :
Understanding directions of markets in terms of
technology
Integration of technology & business planning
Customer interfaces to assess the commercial feasibilty
of prospective technologies
Assessing contributions of technology projects to
business strategy

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
IV. Technology Transfer
This phase leads to transfer of technology from external
source to own Research and Development (R&D); and
internally from R&D to production. This phase involves
following activities :
Entering strategic alliances to develop or acquire
potential technologies
Using product design teams for reaping benefits of
planned technological change
Reducing functional barriers to technology transfer
Utilizing people links for successful technology transfer
i.e. involving people across the organization

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
V. Technology Acceptance
This phase calls for acceptance of technology as a
beneficial change and involves following activities :
Supportive organizational design & structures
Supportive corporate culture
Senior management commitment
Asessment of impacts of technological change on
orgnanization, enhancing benefits, reducing adverse
effects, smoothening barriers / hurdles in the change

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
VI. Technology Utilization
This phase involves following activities :
Effective project management for seeking maximum
utilization
Process technologies to support and facilitate maximum
utilization
Supportive marketing starategies, efforts and utilizing
feedback for improvement
This phase leads to technology growth as reflected by
incease in sales.

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
VII. Technology Maturity
This phase involves analyzing maturity of existing
technology and its related products / services /
processes through study of following indicators:
Efficiency vs. effectiveness contributed by the current
technologies in attaining organizational goals
Market stability in terms of volumes / sales
Rise of substitutes in the marketplace
Diminished returns on investment
Decline of market share
Loss of competitiveness in the marketplace

Phases of STRATEGIC TECHNOLOGY


MANAGEMENT SYSTEM (STMS)
VIII. Technology Decline
This is the last phase. During this phase a technology and
its related products / services / proceses/ applications
show substantial / sharp decline in usage / applications /
sales. Technology and its associated products or services
become ordinary commodity. Technology degrades and
becomes obsolete.
This phase calls for movement to new technological
opportunities.
Thereafter the cycle re-starts by the creation of a new
technlogy / movement towards a new technology. All the
above steps are repeated .

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