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Management of

TechnologyProf.V.Seshadri

SVKMs NMIMS

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V.Seshadri MOT Ref 1 Ch 1& 2 2

Colaba RMD goes hi-tech foran accurate forecast - TOI Jan

23rd

. 2011 The Colaba regional metrologicaldepartment (RMD) has embracedadvanced technology to giveMumbaikars the latest weatherupdates.

Doppler Radar Digital Synergie system

Manual, numerical, digital, satellite,sensor input sources Collation of the coded data onto a

server, decoding, integration andanalysis is done by the computerbased new digital synergie system

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V.Seshadri MOT Ref 1 Ch 1& 2 3

Technology behind newproducts

TOI Jan 23rd

. 2011Product

Technology PurposeSmart Cane Echolocation; Li ion

battery; AD conversion;transducer; IC; Silionchip

Guide blind persons

Ultrasonic HapticHelmet

Echolocation; ADconversion; transducer;IC; Silion chip

Mine workers; Firefighters, Blind people

Bionic Eye sensor device Video signal processing,

Ophthalmology,microprocessor, sensors

Enables those suffering

from Retintispigmentosa to see

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V.Seshadri MOT Ref 1 Ch 1& 2 4

Emerging Technology source -Advanced Materials and Processes of ASM International, USA-

Dec 2010

Leaf skeleton made into iron carbide by acoating process, which gives it the magneticand conducting properties of iron carbide

Super strong Aluminum by treating 7075

aluminum to create nano meter sized clusterof atoms within the grains and at grainboundaries. The new material was twice asstrong as Aluminum 7075 while retainingductility.

Strongest organic nano material : Used a simpledipeptide, consisting of 2 amino-acids , toform spherical nano structures. This is thefirst bio inspired nano material known to datethat is mechanically as strong as steel.Applications include bullet proof vests, spacevehicles, aviation and replacing metallicmedical im lants.

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V.Seshadri MOT Ref 1 Ch 1& 2 5

Find your voice again HT 24 th Jan 2011 Voice Prosthesis

It is a one way valve that directs airfrom the lungs into the mouthduring expiration

It consists of a membrane , a coating of anti microbial agents such asSilver Oxide .

Patient who is unable to speak due tothroat cancer can now do so thanksto the new device.

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V.Seshadri MOT Ref 1 Ch 1& 2 6

Technology the practical application of science to

commerce or industry the discipline dealing with the art or

science of applying scientificknowledge to practical problems

Refers to the theoretical and practical

knowledge, skills and artifacts thatcan be used to develop products,process and services as well asproduction and delivery systems

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V.Seshadri MOT Ref 1 Ch 1& 2 7

Technology contd. Technology can be defined as all the

knowledge, products, processes,tools, methods and systemsemployed in the creation of goodsor in providing services.

Technology can be embodied inpeople, materials, cognitive andphysical processes, plant,equipment and tools

Criteria for success of a technology is

technical rather than commercial.

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V.Seshadri MOT Ref 1 Ch 1& 2 8

Technology -contd Technologies are the outcome of

development activities undertakento put inventions and discoveries topractical use.

The invention of the transistor(1947),I.C. (1959) and Microprocessor( 1971) gave rise to successivegenerations of new technologies inthe semiconductor industry that inturn led new applications in the

telecom , computing andautomation areas.

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V.Seshadri MOT Ref 1 Ch 1& 2 9

MOT 1/2

1.It is an inter-disciplinary field that integratesScience, Engineering and Managementknowledge and practice.

2.Focus is on technology as a primary factorin wealth creation encompassingknowledge, intellectual capital, effectiveexploitation of resources, preservation of environment, raising standard of living,improving quality of life apart fromgenerating money.

3.Managing technology implies managing thesystems that enable the creation,acquisition and exploitation of technology

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V.Seshadri MOT Ref 1 Ch 1& 2 10

MOT 2/2

4. Research, Inventions anddevelopment are essentialcomponents of MOT

5. Technology generates wealth whenit is commercialized or used toachieve a desired strategic oroperational objective for anorganization.

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V.Seshadri MOT Ref 1 Ch 1& 2 11

The interdisciplinary nature of MOT

MOT treats technology as the seed of the wealth creation system.

Important aspects of this system are:a)Natural Scienceb)Social Sciencec)Industrial practiced)Business theorye)Engineering

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V.Seshadri MOT Ref 1 Ch 1& 2 12

Basic Concepts contd. Scientific Research : Investigation

carried out for a certain purposeusing scientific tools and based onscientific laws

Basic Scientific Research : Activitiesinvolved in generating newknowledge about physical,biological and social phenomena.

Applied Scientific Research : Activities

geared towards solving particular

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V.Seshadri MOT Ref 1 Ch 1& 2 13

Technology -contd

Technology consists of threeinterdependent, codetermining andequally important components:

1.Hardware2.Software3.Brain ware (know-why)

Know-how could be considered as thefourth component.Zeleny (1986)

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V.Seshadri MOT Ref 1 Ch 1& 2 14

Technology vs Business The pool of knowledge available to

Society is a major source for creatingbusiness enterprises.

Technology shows the way how goodsand services can be produced. The technologies that exist in a

business are the technological assetsof that business. They constitute thecollective knowledge and technicalcapabilities of that businessenterprise and includes its people,equipments, systems, tools etc.

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MOT - Prof.V.Seshadri Ref 1 Ch 3 15

Critical factors in MOT The most critical factor in technology

is human creativity The creation of technology;

developing newproducts/processes/services withthis technology and successfully

deploying. marketing them calls forgreat creativity along with thesystem to exploit it and the needed

investment/resources.

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MOT - Prof.V.Seshadri Ref 1 Ch 3 16

echnology Price Relationship

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MOT - Prof.V.Seshadri Ref 1 Ch 3 17

Technology gap Pricerelationship

PRIC

E

ECHNOLOGY GAP

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MOT - Prof.V.Seshadri Ref 1 Ch 3 18

Technology gap Pricerelationship

wnKnowledge

u st om er K no wl edg e

wn Knowledge

ica l Knowledge

ime or Diffusion

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V.Seshadri MOT Ref 1 Ch 1& 2 19

Example: Netscape Netscape Ltd. is a software company

heavily involved in developinginternet browsers, navigators,server software and applications. Itwas started by technocrats and islisted on NASDAQ stock exchange.

Its assets are in software andinternet based technologies andvery little capital and other physicalassets or holdings. It is a classicexample of a successful technology

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V.Seshadri MOT Ref 1 Ch 1& 2 20

Levels of technology activitiesin a firm

1.Cognitive knowledge orknow-what

2.Advanced skill or know-how3.System understanding or

know-why4.Self motivated creativity or

care-why

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V.Seshadri MOT Ref 1 Ch 1& 2 21

Classification of Technology

1.New Technology (laser for eyesurgery)

2.Emerging Technology( superconductivity, geneticengineering,)

3.High Technology (cloud computing,stem cell technology)

4.Low Technology/Medium Technology5.Appropriate Technology6.Codified vs Tacit Technology

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V.Seshadri MOT Ref 1 Ch 1& 2 22

High Technology company It employs highly educated people.

Professionals, PhDs Rapid change in technology

compared to competitors Competes with technological

innovations Has high levels of R&D expenditures Has the potential to use technology

for rapid growth

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V.Seshadri MOT Ref 1 Ch 1& 2 23

Low Technology Company Employ people with relatively low

level of education/skill. Emphasis ison experience.

Use manual or semi-automaticoperations

Have low levels of researchexpenditure (below industrystandards)

Technology base used is stable with

little change

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V.Seshadri MOT Ref 1 Ch 1& 2 24

Codified vs Tacit Codified: Know-how information is

well documented and clearlyexplained.

Tacit: It involves the Know-why partwhich is, quite often, not explainedor documented. It is harder, more

difficult and time consuming totransfer tacit knowledge.

Knowledge of both codified and tacit

knowledge is essential to acquire

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V.Seshadri MOT Ref 1 Ch 1& 2 25

The pace of technologychange

The magnitude and speed of technological change in recent yearshave been phenominal.

Technological change is the primaryfactor influencing economic growthand prosperity. It has impactedemployment patterns and Societalchanges.

US employment figures: 1900 1950 Agriculture (85%) 1950_ 1990 Manufacturing (73%) Agri

( 3%) 1990 2000 IT & Services (80%);

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V.Seshadri MOT Ref 1 Ch 1& 2 26

Changing equations Scope: Fixed assembly line to flexible

mass customized - productionlines. Customer focus

Competition: US vs Soviet Block toWestern vs China & India toEuropean Union

Trade Blocks: G 7, SAARC, EU, G7 GATT, NAFTA, WTO

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V.Seshadri MOT Ref 1 Ch 1& 2 27

National Competitiveness A nation needs to establish sound economic

systems to foster competitiveness and theability to trade with other nations.

Technological capabilities are based onfactors such as education, R&D,technology transfer.

Global trade is governed by Internationalagreements based on WTO or bilateral. Italso depends on market dynamics andsupply-demand laws.

Creating a National competitive strategydepends on the harmonious integration of economics, technology and trades

systems An effective ublic olic should be based

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V.Seshadri MOT Ref 1 Ch 1& 2 28

Technology and Sustainablegrowth

e ch no lo gi ca l C ap ab il it ie s

conomic System Trade

o mp et it iv e E nt er pr is es ustainable economic growth

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V.Seshadri MOT Ref 1 Ch 1& 2 29

Historical Perspective Technology has always played a

major role in creating wealth of nations and influencing standard of living and quality of life. Thus theprogress of civilization is identifiedby the dominant technology of the

age.

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V.Seshadri MOT Ref 1 Ch 1& 2 30

Evolution by Age of Technology

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V.Seshadri MOT Ref 1 Ch 1& 2 31

Technology = the engine foreconomic growth of nations

Robert Solow, a MIT professor(1987Nobel Prize in Economics)

Technical progress accounted formore than half the economicgrowth in the USA

In a study ( France, Japan, Germanyand U.S.) on relative contributionsto economic growth of three mainfactors:

Technical progress: 50%; Capital:

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V.Seshadri MOT Ref 1 Ch 1& 2 32

The Long Wave Cycle 1/2 After the Industrial Revolution the

economies of western countries wentthrough major economic expansionfollowed by depression.

These fluctuations repeated once inevery 30 years (approximately) andthis phenomenon is known as thelong wave or long economic cycle

Breakthroughs in new Technologiesresult in a surge of inventions whichtrigger business opportunities andbuilding up of Capital -contribute

substantially to the growth phase.

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V.Seshadri MOT Ref 1 Ch 1& 2 33

The Long Wave Cycle

1.Discoveries in Science creates a basefor technological innovations.

2.Radical and basic technologicalinnovations trigger newinventions in products, processesand services

3.These create new markets and newIndustries

4.The new industries continue creatingnewer products, expanding themarkets further

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The Long Wave Cycle

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V.Seshadri MOT Ref 1 Ch 1& 2 35

The Long Wave Cycle the Technology implications

(Betz)1.Cutting edge technology is behind thelong wave of economic activity

2.High technology products displace oldtechnology when there is justificationfor performance and cost

3.Technology life cycles of industriesaffect long cycles in the nationaleconomy

4.New technology comes from sciencewhich come from new discoveries innature.

5.A new technology when created willbegin a new wave.

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V.Seshadri MOT Ref 1 Ch 1& 2 36

The Long Wave Cycle the Technology implications

As technological innovations becomemore and more fast paced, the longwave cycles become shorter andshorter.

Emerging technologies are promisingnew and uncharted areas of productsand processes.

New economies defycompartmentalized traditionalmeasurement methods.

Growth in investments in areas likecorporate software, cellular phones, e-mails, automated banking and plastic

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V.Seshadri MOT Ref 1 Ch 1& 2 37

Evolution of Productiontechnology

Late 1800s Fredrick Taylor Scientific management principles

Early 1900S Henry Ford Massproduction; planning, inventorycontrol, time & motion study,queuing and modeling.

1920s, 1930s SQC, TQM, ProcessQuality theory

WWII Material Handling systems,Productivity, Operations Research

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V.Seshadri MOT Ref 1 Ch 1& 2 38

Evolution of Productiontechnology

1950s Digital Computer; Simulationtechniques, Information age.

1970s Personal Computers; totalsystems design; Materials Technology

1980s - Information technology, Biotechnology, genetic engineering,genetics, robotics, manufacturingprocesses, organizational theories,Management of Technology

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V.Seshadri MOT Ref 1 Ch 1& 2 39

Evolution of Product Technology

Technology can be associated withnew Products, Processes & Services

Product developments haverevolutionized the world in the pasttwo centuries. They have impactedeconomic growth and prosperity

and improved the quality of life

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V.Seshadri MOT Ref 1 Ch 1& 2 40

Evolution of Production Technology

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V.Seshadri MOT Ref 1 Ch 1& 2 41

Evolution of Product Technology

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Technology & NationalEconomy

Developed economies are identified withcountries that properly use technology for thecreation of wealth. It is the use of appropriatetechnology effectively that really creates newopportunities and wealth.

USA was the leading economy of the world inthe 20 th century which was the centre of alltechnological advancements in the world.

Japan and Germany are examples of suchcountries in the late 20 th century

China and the Asian Tiger Countries ( Korea, Taiwan, Singapore, Malaysia) are in theforefront in the last decade.

India is a most promising rising giant in theST