The world of Technology Management MEM 814.pptx

TM world

1. 2 TECHNOLOGY MANAGEMENT BY PROFESSOR DR NAWAR KHAN PhD Engineering Management, MSc Production Engineering, MBA (HRM), BSc Mechanical Engineering, ISO 9000 QMS Lead Assessor NUST College of Electrical & Mechanical Engineering (E&ME) Peshawar Road Rawalpindi, Pakistan Tel # + 92-051-9247543 [phone] Fax # + 92-051-9247548 e-mail : [email protected]

2. 3 PROFILE Possess 31 years of professional experience including academics, research and management Hold prestigious appointments in a large variety of capacity Published a master level text book on TQM Published 95 research papers in different national / international reputed conferences and journals. Worked as PI and now member of technical committee of ‘Prime Minister Quality Award (PNQA)’. Supervised 45 x MS & 2 x PhD while 4 x MS and 5 x PhD scholars are in progress Establish Dept of Engg Mgmt at CEME for MS and PhD Degrees in Engg Management Worked as QMR for ISO 9000 QMS Certification and Director LQEC for 9 years at CEME

3. 4 National University of Sciences & Technology (NUST) College of E&ME Department of Engg Management Subject : MEM 814 TECHNOLOGY MANAGEMENT Credit Hours: 3 hours per week Main Topics Introduction to Technology Management The Role of Technology in the Creation of Wealth Critical Factors in Managing Technology Technology Life Cycles The Process of Technological Innovation Competitiveness, Business strategy and Technology Strategy Technology Planning, The Acquisition and Exploitation of Technology Transfer of Technology The Design of Organization for Technology Management The Manufacturing and Service Industries Case studies and problem solution

4. 5 Recommended Books 1. Management of Technology; The Key to Competitiveness and Wealth Creation, Tarek , M. Khalil (2000) Mc- GrawHill , New York 2. ‘Transfer of Technology’ by Goel Cohen, Sage Publications Grading: a. Quizzes / Homework 10% b. Sessional Exams 30% c. Term Project 10% d. Final Exam 50%

5. 6 TECHNOLOGY MANAGEMENT TECHNOLOGY MANAGEMENT

6. 7 MANAGEMENT Management represents all actions of the overall system that determine the quality mission, policy, objectives and responsibilities and implement them by incorporating quality planning, strategy, control, assurance and improvements within the system of an organization.

7. 8 BASIC MANAGERIAL FUNCTIONS Every manager perform the following basic functions (actions) Planning – thinking before doing Organizing – dividing main functions into subs Staffing – right person for the right job Leading – Inspire, motivate through vision, actions, strategy, actions, guidance and coaching Controlling – to bring deviations within permissible limits and plan Management being universal applies to all fields

8. DEFINITION OF TECHNOLOGY Technology can be defined as all the knowledge, products, processes, tools, methods, and systems employed in the creation of goods or in providing services. In simple terms, technology is the way we do things. It is the means by which we accomplish objectives. Technology is the practical implementation of knowledge, a means of aiding human endeavor. Zeleny (1986) highlighted this point by proposing that any technology consists of three interdependent, co-determining and equally important components:

9. DEFINITION OF TECHNOLOGY 1. Hardware: The physical structure and logical layout of the equipment or machinery that is to be used to carry out the required tasks. 2. Software: The knowledge of how to use the hardware in order to carry out the required tasks. 3. Brainware : The reasons for using the technology in a particular way. This may also be referred to as the know-why. Know-how: The learned or acquired knowledge of or technical skill regarding how to do things well. Know-how may be a result of experience, transfer of knowledge, or hands-on practice. People acquire technical know-how by received formal or informal education or training or by working closely with an expert in a certain field. Know-how can also be acquired through a recognized method of technology transfer.

10. 11 CLASSIFICATION OF TECHNOLOGY Technology can be classified in several ways. The following classification are important in establishing a common vocabulary for ensuring useful discussion. New Technology A new technology is any newly introduced or implemented technology that has an explicit impact on the way a company produces products or provides service. One example is new computer software introduced to develop engineering drawings and thus replace manual drafting. Another example is an internet website designed to market the company’s products. The technology does not have to be new to the world, only to the company. It could have been developed years ago and used by others, but it is classified as new whenever introduced for first time in a new situation. New technology has a profound effect on improving productivity and maintaining a competitive business enterprise.

11. 12 2. Emerging Technology An emerging technology is any technology that is not yet fully commercialized but will become so within about five years. It may be currently in limited use but is expected to evolve significantly. Example of emerging technology include genetic engineering, nanotechnology, superconductivity, and the Internet as a replacement for the personal computer. Emerging technologies create new industries and may make existing ones obsolete. They have the potential of triggering large changes in institutions and in society itself.

12. 13 3. High Technology The term high technology (high tech) refers to advanced or sophisticated technologies. High technologies are utilized by a wide variety of industries having certain characteristics. A company is classified as high-tech if it fits the following description (Larsen and Rogers 1988:Mohrman and Von Ginlow , 1990): It employs highly educated people. A large number of the employees are scientists and engineers. Its technology is changing at a faster rate than that of other industries. It competes with technological innovating. It has high levels of research and-development expenditure. (A general guide is that the ratio of R&D expenditures to sales is 1 to 10 or twice the average for the industry.) It has the potential to use technology for rapid growth, and its survival is threatened by the emergence of competing technology. Some high-tech companies may be working with technologies that are “pushing the envelope.” These technologies may be referred to as “super-high technologies.”

13. 14 Low Technology The term low technology refers to technologies that have permeated large segments of human society. Low technologies are utilized by a wide variety of industries having the following characteristics: The employ people with relatively low levels of education or skill. They use manual or semiautomatic operations. They have low levels of research expenditure (below industry average). The technology base used is stable with little change. The products produced are mostly of the type that satisfy basic human needs such food, shelter, clothing, and basic human services.

14. 15 Medium Technology The term medium technology comprises a wide set of technologies that fall between high and low technologies. It usually refers to mature technologies that are more amenable than others to technology transfer. Examples of industries in this category are consumer products and the automotive industry.

15. 16 Appropriate Technology The term appropriate technology is used to indicate a good match between the technology utilized and the resources required for its optimal use. The technology could be of any level-low, medium, or high. It does not make sense, for example, to use high technology when there is a lack of necessary infrastructure or skill personnel. This a dilemma faced by many developing countries that want to transfer technology used in more industrialized countries. They may push for the acquisition of high technology in cases where a medium level technology would be more effective. Utilizing the appropriate level of technology results in better use of labor resources and better production efficiency.

16. 17 Codified Versus Tacit Technology Technology can be preserved and effectively transferred among users if it is expressed in a coded form. An engineering drawing is a coded form expressing shape, dimension, and tolerances about a product. A computer program of an optimization algorithm is a codified form that preserves and transmits knowledge about that algorithm. 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 experiences and therefore remains within the minds of developers. The technology developers are the ones who have the know-how in question . Tacit knowledge is transmitted by demonstration or observation, followed by assimilation by those who seek the knowledge. Transfer of tacit technology occurs by close contact and interaction between the source and host. Apprenticeship programs may serve as a vehicle for transferring the tacit nuances of specific professions or field.

17. 18 Codified technology, on the other hand, allows people to know how technology works but not necessary why it works in a certain way. The brainware may be part of the tacit knowledge kept in the minds of developers and shape by their experiences during the development process. Transfer of technology is easier when the technology is in a codified form. It is harder, less precise, and more time consuming to transfer tacit technology. A complete mastery of the technology requires an understanding of both the explicit codified knowledge and the non explicit tacit knowledge.

18. 19 Management of Technology Management of technology (MOT) is an interdisciplinary field that integrates science, engineering, and management knowledge and practice (Figure 1-1) The focus is on technology as the primary factor in wealth creation. Wealth creation involves more than just money; it may encompass factors such as enhancement of knowledge, intellectual capital, effective exploitation of resources, preservation of the natural environment, and other factors that may contribute to raising the standard of living and quality of life. Managing technology implies managing the systems that enable the creation, acquisition and exploitation of technology.

19. 20 While the underlying premise for the MOT field is that technology is the most influential factor in a wealth-creation system, there are other factors that contribute to the system (Figure 1-1). For example capital formation and investment make significant contributions to economic growth. Labor is another factor in economic growth. Social, political and environmental considerations facilities or hinder the wealth-creating process. MOT treats technology as the seed of the wealth-creation system. With proper nourishment and a good environment, a seed grows to become a healthy tree.

20. 21 FIGURE 1-1 THE INTERDISCIPLINARY NATURE OF MOT

21. 22 Other factors contributing to wealth creation-including capital, labor, natural resources, public policy, and so on-provide the fertile land, environment, and nourishment needed for growth. Each one of these factors has its own disciplinary field of study and research. MOT, as an interdisciplinary field, combines knowledge from these disciplines. MOT has national, organization, and individual dimensions. At the national /government level (macro level) it contributes to shaping public policy. At the firm level (micro level) it contributes to the creation and sustainability of competitive enterprises. At the individual level it contributes to the enhancement of one’s worth in society.

22. 23 Society needs Standard of living social and environmental issue The Customer Production Technology Creation or application Technology Conversion Market needs FIGURE 1-2 SPINNING OUT TECHNOLOGY Technology must connect with Customer needs to satisfy those Needs and achieve societal Goals. Technology is the engine of economic growth

23. 24 MOT at the Film Level In USA, 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 and strategic objectives of an organization. MOT is an interdisciplinary field because it involves combined knowledge from science, engineering, and business administration fields. It impacts different functional entities of the corporation: research and development, design, production, marketing, finance, personnel, and information. Its domain involves both the operational and the strategic interests of organization. The operational aspect deals with the day-to-day activities of the organization, while the strategic dimension focuses on the long-term issues.

24. 25 Technology Labor Capital Natural Resources Market Public and Environmental Policy Wealth Creation FIGURE 1-3 FACTORS CONTRIBUTING TO WEALTH CREATION

25. 26 MOT at the National/Government Level From a macro-level perspective a more general definition may be appropriate for MOT. It can as defined as A field of knowledge concerned with the setting and implementation of policies to deal with technological development and utilization, and the impact of technology on society, organizations, individuals and nature. It aims to stimulate innovation, create economic growth and to foster responsible use of technology for the benefit of humankind.

26. 27 THE CONCEPTUAL FRAMEWORK FOR MOT Figure 1-4 shows the basic concept of MOT as an interdisciplinary field of study and application. It illustrates how MOT creates a linkage among science, engineering, and management disciplines. From an academic point of view, this conceptual figure indicates that traditional field in science and engineering contribute to scientific discovery and to technology creation.

27. Business Administration Disciplines Science and Engineering Disciplines MOT 28 FIGURE 1-4 CORE KNOWLEDGE NEEDED FOR MOT

28. 29 WHY MANAGEMENT OF TECHNOLOGY NOW? (Due to rapid growth of knowledge and technology, its management become necessary) The following events triggered the development of technology; First World War Industrialization Era – 1940 World War-II Now the present scenario forced us to manage the technology which includes; The Pace of Technology Change The Change in Scope Changes in Competition Trade Blocks

29. 30 T E C H N O L O G y D E V E L O P M E N t FIGURE 1-5 CORE KNOWLEDGE NEEDED FOR MOT 1780 1880 1980 Time/Year

30. 31 READING ASSIGNMENT RELATIONSHIP BETWEEN KNOWLEDGE AND TECHNOLOGY

31. 32 READING ASSIGNMENT RELATIONSHIP BETWEEN TECHNOLOGY AND BUSINESS

32. 33 TERM PROJECT TECHNOLOGY AUDIT OF AN ORGANIZATION

33. 34 THE ROLE OF TECHNOLOGY IN CREATION OF WEALTH Knowledge increases Rate of technology development enhances Waste / rejection decreases Quality of products and services improves Productivity increase Fixed cost decreases Margin of profit increases Repeated buying increases / Sale increase Market share increases Company competitive position improves Revenue increases Dividend increases Tax to national exchequer increase Social life improves Disputes decreases and harmony increases

34. 35 Biotech Age Information Age Space Age Electronic Age Nuclear Age Electricity Age Steam Age Iron Age Bronze Age Stone Age FIGURE 2-1 EVOLUTION BY AGE OF TECHNOLOGY

35. 36 POINTS IN THOUSANTS 8000 6000 4000 2000 FIGURE 1-5 DOW JONES INDUSTRIAL AVERAGE 1900 1920 1940 1960 1980 2000 Time/Year

36. 37 FIGURE 2-3 EVOLUTION OF PRODUCTION TECHNOLOGY

37. 38 FIGURE 2-4 IMPORTANT TECHNOLOGICAL INNOVATIONS

38. 39 HOME ASSIGNMENT BRIEFLY DISCUSS THE GROWTH OF TECHNOLOGY IN YOUR FIELD OF ENGG SPECIALITY

39. CRITICAL FACTORS IN MANAGING TECHNOLOGY 40 1. The CREATIVITY a. Invention – new idea / concept generation b. Innovation – bring invention to market place & commercialize it 2. THE LINK BETWEEN SCIENCE AND TECHNOLOGY – scientific knowledge lead technology development scientific knowledge enhances, so technology development also increases

40. 41 FIGURE 3-1 COMPONENTS OF AN INNOVATION CYCLE 2. INVENTION 3. INNOVATION 1. SCIENTIFIC DISCOVERY 4. MARKET

41. 42 3. TYPES OF INNOVATION a. radical / revolutionary - breakthrough b. incremental / evolutionary – small / kaizan 4. CREATIVITY AND INNOVATION – creativity can lead to innovation if creative environment and creative people are available 5. BRING INNOVATION TO MARKET either quicker diffuse the technology in market because of fear of competitor or diffuse technology in company to get innovative product if the company is technology leader

42. 43 6. THE TECHNOLOGY – PRICE RELATIONSHIP Earlier brought of technology give premier price; greater the technology gap lead to higher prime price FIG 3.2 TECHNOLOGY GAP / PRICE RELATIONSHIP TECHNOLOGY GAP TIME OR DIFFUSION P R I C E T E C N O L O G I C A L K N O W L E D G E Firm / Own knowledge Customer knowledge Gap

43. 44 7. THE TIMING FACTOR – right timing will improve performance of a company so it become more competitive 8. THE VISION OF CHANGE STRATEGY – sense change and make strategy for it when market is good and revenues are better 9. MANAGING CHANGE – change must be proper to maintain stability 10. PRODUCTIVITY, EFFECTIVENESS AND COMPETITIVENESS p = O / I (taking time and quality into consideration)

44. 45 11. LEADERS VERSUS FOLLOWERS in technology ; all have advantages and disadvantages and may succeed or fail depent on its management a. leader is first to marker, must have strength to maintain b. follower; follow closely behind the leader, play safely c. laggard; their survival may depend upon adopting new technology INNOVATOR IMITATOR / FOLLOWER WIN WIN LOSE LOSE Fig 3.6 OUTCOME FROM THE INNOVATION PROCESS The winning by both innovator and imitator / follower is linked to good management of technology

45. MOT – THE NEW PARADIGM Enablers Technologies Resources (technical / financial Business environment Structure and management of organization Project planning and management Human resource Natural resources (material) Product technology (concepts and design) Production technology (processes and operations) Information technology Marketing technology (traditional and innovative) Service and customer satisfaction technology Safety and environment technology 46

46. 47 FIGURE 4.2 STAGES IN NEW PRODUCT / TECHNOLOGY LIFE CYCLE Idea generation and concept definition Market analysis Technical analysis Business plan and approval Developing & testing production commercialization Disposal & recycle

47. GUIDING PRINCIPLES FOR MANAGAGING ENTERPRISES Value creation Quality Responsiveness Agility Innovation Integration Teaming Fairness 48

48. MANAGEMENT PARADIGMS AND TECHNOLOGY Owner, Operator and Labour in a factory Interchangeable parts in production Cost of production Scientific management - optimization Assembly line organization of production Quality of production Managing with technology – internal service technology of accounting, control, engg and manufacturing and external service technologies banking, transportation and communication Deliberate creation of technological change and innovation at national level by policy change 49

49. 50 Technology Performance Parameter Time Physical Limit New Innovation period Embryonic Growth Maturity Aging Technology Improvement Period Mature Technology Period TECHNOLOGY LIFE CYCLE The S curve of Technology Progress

50. 51 Performance Parameter Time Limit B Limit A A A’ B Path of progress of technology A Slower rate of progress of technology A’ Newer technology B progressing at a faster rate Changes in Natural Limits of Technology

51. 52 Market Volume Time A B C D E F Technology development Application launch Application growth Mature technology Technology substitute Technology obsolescence Market Growth of Different Stages of the Technology Life Cycle

52. 53 Performance Parameter Time Subtechnology I Lifecycle Subtechnology II Lifecycle Overall Technology Lifecycle Subtechnology III Lifecycle TECHNOLOGY CYCLE Multiple – Generation Technologies Subtechnology life cycles in multiple generations of Innovation shape the overall technology life cycle

53. 54 Market Volume Time A B C D E F Concept design prototype Product launch Product growth Mature Stage Substitution product Product obsolescence Product – market Life Cycle

54. 55 Rate of Innovation Time Technology Lifecycle Product innovation Aging Technology (Substitution and discontinuity) Process Innovation Dominant Design Technological Discontinuity (turbulence) Technological Progress The progress of technology is shown in relation product ad process innovation

55. 56 Percent of adoption Time Technology A: Rapid Adoption Technology B: Slow Adoption Later adopter Earlier adopters 100% Diffusion Curves

56. 57 Number of Adopters Due to Mass Media Time The Diffusion – Communication Channel Relationship This relationship can be used to forecast the rate of adoption of innovation

57. 58 Number of Adopters Due to Interpersonal Communication Time This relationship can be used to forecast the rate of adoption of innovation The Diffusion – Communication Channel Relationship

58. 59 Total Noncumulative Number of Adopters Time This relationship can be used to forecast the rate of adoption of innovation The Diffusion – Communication Channel Relationship

59. 60 Cumulative Number of Adopters Time This relationship can be used to forecast the rate of adoption of innovation The Diffusion – Communication Channel Relationship

60. 61 1. Basic Research 2. Applied Research 3. Technology Development 4. Technology Implementation 5. Production 6. Marketing 7. Proliferation 8. Technology Enhancement FIQURE-6.1 THE EIGHT STAGES OF TECHNOLOGICAL INNOVATION

61. 62 Management + + + + + Scientific Invention Commercially Successful Innovation Engineering Development Entre-preneurship Recognized Social need Supportive environment = FIQURE-6.3 THE INNOVATION CHAIN EQUATION

62. 63 Innovation Wealth Creation Sustainable Development Discovery of New Knowledge & Basic Laws Societal Needs The Public Good Natural Capital Devices Processes Systems Analysis Reduction Synthesis Integration Design Manufacture Maintenance Ideas Information Capital Formation & Investment FIQURE- 1 INNOVATION CONCURRENT INTEGRATION

63. 64 CONCEPT DEFINITION Conceptual definition of product or service Setting technical goals and priorities Setting expected performance TECHNICAL ANALYSIS Resources required Resources available Time frame of development MARKET ANALYSIS Defining the market Analysis of current and future needs Know the customers Know the competitors Window of opportunity FULL PRODUCTION AND COMERCILIZATION Production Tooling Operation control Supply organization Logistic BUSINESS PLAN SWOT Economic analysis Capital Strategic outlook TEST MKT Strategy for market introduction Marketing innovations Timing Measuring response Approval by top management DEVELOPMENT Prototype Testing Start-up-needs IDEA GENERATION Recognition of need Alternative ways to meet the need Analysis of alternative solutions Selection of best solution and criteria of selection Solutions Proposal for implementation DISPOSAL Environmental consciousness FIQURE-6.2 THE PROCESS OF TECNOLOGICAL INNOVATION

64. Basic Factor 1. The presence of scientific knowledge 2. The level of maturity of underlying science 3. The type of technology and the phase of its life cycle 4. The level of investment technology 5. The level of political commitment 6. The ability to borrow advances from related technologies 7. The diffusion rate and patterns 65 FACTOR INFLUNENCING TECHNOLOGICAL INNOVATION

65. Other Factors 1. The changing world environment 2. Improvements in communication 3. Multiple-site continuous R&D 4. Time to market 5. The push of education 6. Changes in institutional interactions 7. Changes in organizational structures 8. Infusion of resources into technological development and penetration 66