MTIC

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 Question2. Hypothesis Formulation3. Listing of Materials Required4. Laying Down Procedure for Conducting Research /

Experiment5. Experimentation, Observations and Data Collection6. 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


1. Science largely deals with the natural world.• Technology largely deals with the human-made world2 Science mainly focusses on understanding scientific

principles / scientific laws • Technology mainly focusses on doing i.e. it is application

oriented3. Science is public and universal knowledge• Technology comprises both public and private knowledge


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)


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)


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


• 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.


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


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


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


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


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


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.


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


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.


• … 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).


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.


… 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


… 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


… 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


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


Example - Disruptive TechnologyDigital 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 firma. 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

TechnologicalStage / Phase

Features

I TechnologyDevelopment

Basic Technology

II TechnologyApplication

+ Technology Applications

III ApplicationLaunch

+ + Technology Applications Product Launch

IV ApplicationGrowth

+ + Technology Applications Rise in product sales

V TechnologicalMaturity

+ + Technology Applications Fall in product sales

VI DegradedTechnology

+ Minimal Product sales Loss of + application Alternative

Technology

Example - Technology Life Cycle in cars • On March 8, 1866 Daimler designed world’s first four-

wheeled 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 Types of Engine

Body

•Steam •Coal gas •Gunpowder •Mixture of Hydrogen & Oxygen•Kerosene•Petrol / Diesel•Electricity•Solar

•From 2 stroke engine to 4 stroke

•Manual steering to Power steering

•Continuous Improvement in features based on electronics

•Sharp Edges to round & smooth surfaces with aerodynamics

•From metallic interiors to plastic based interiors

Future aim : Car which can run on road and fly & hover in air & land anywhere like helicopter

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 firm’s 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 CreationThis 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


II. Technology MonitoringThis 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


III. Technology AssessmentThis 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


IV. Technology TransferThis 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


V. Technology AcceptanceThis 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


VI. Technology UtilizationThis 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 improvementThis phase leads to technology growth as reflected by incease

in sales.


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


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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