Chapter 1_Introduction to Technology Management

7/21/2019 Chapter 1_Introduction to Technology Management

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BJTH3063 Chapter 1 Azizi Romli 1

Chapter 1Introduction to Technology

Management



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HAPTER OUTLINE

• Definition of management, technologyand technology management• Importance of managing technology• Framework of technology

management

• Role of firms in technologyenvironment

• Key decisions in managingtechnology

• Process of managing technology

• Factors promoting technologymanagement

• Technology classification

BJTH3063 Chapter 1 Azizi Romli



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hat i! technology"

• The practical implementation oflearning and knowledge by individualsand organiations to aid humanendeavor! Technology is theknowledge, product, processes, tools

and systems used in the creation ofgoods or in the provision of services(White & Bruton, 2007)!

• "ll the knowledge, products,processes, tools, methods and systems employed in the creation in goods orproviding services (Khalil, 2000)!



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hat i! management"

• "rt of carrying a business!

• Involves directing and controlling anorganiation and steering it towardachieving its ob#ectives!

• $eeds an understanding of humanand organiational behaviour!

• Include planning, organiing, staffing,motivating and controlling functions!



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Technology Management

• set of management disciplines that

allows organiations to manage itstechnological fundamentals to create

competitive advantage

• also be defined as the integrated

planning, design, optimiation,operation and control of technological

products, processes and services

• "T%"&' the field concerned with the

supervision of personnel across thetechnical spectrum and a wide variety

of comple( technological systems!

BJTH3063 Chapter 1 Azizi Romli

http://en.wikipedia.org/wiki/Management

http://en.wikipedia.org/wiki/Technology

http://en.wikipedia.org/wiki/Competitive_advantage

http://en.wikipedia.org/wiki/Competitive_advantage

http://en.wikipedia.org/wiki/Technology

http://en.wikipedia.org/wiki/Management



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Importance o# managing

technology

• The rapid pace of technologicalchange demands a cross)

discipline approach to take full

advantage of technological

opportunities!

• The rapid pace of technological

development and the increasing

sophistication of consumers haveshortened product life cycles!



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• The lead)time from idea to market is being

reduced by the emergence of new or alteredtechnologies!

• Increasing international competition

demands that organiation must ma(imiecompetitiveness by effectively using newtechnologies!

• "s technology changes, the tools ofmanagement must change, but the processof determining what those new tools shouldbe is still in early stage!



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$e#inition o#


• " field that links different disciplinesto plan, develop, implement,monitor, and control technologicalcapabilities to shape andaccomplish the strategic ob#ectivesof an organiations (White & Bruton,2007)!

• "n interdisciplinary field that

integrates science, engineering andmanagement knowledge * practice (Khalil, 2000)!



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Management technologyRefers to the technology used to

manage organizations or certain

functions

Eg: MIS, ICT, E-commerce

Technology management



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%rame&or' in Technology

Mgt

• Technology management creates a linkage among

science, engineering * management disciplines!

• The ability to become a competitive enterprise andsustain economic growth is affected by the

economic system, technical capabilities * trade

conditions!

Technology

Mgt

Science &Engineering

Disciplines

BusinessAdministration

Disciplines





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– The facilitators of technology

development

• +y investing in other parties research

pro#ects!

– The victims of technology change

• -hen a competitor introduces a new

product or when new technology

transforms industries, corporations mayface the threat of obsolescence!



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)ey deci!ion! in managing

technology

• The firm must determine if itwants to be a leader or follower inits industry! – Both ha o!" #e"e$it% #&t the 'hoi'e

!ill re&lt i" the $irm ta(i") ra*i'all+

*i$$ere"t mea&re,

• The firm must also determinewhether it will develop its ownnew technology or buy the

technology! – -a'h approa'h ha #e"e$it a"*

*ra!#a'( that "ee* to #e !ei)he* #+the $irm itel$,



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• The firm needs to determine thescope of products or services it

wants to offer!

– .etermi"e ho! it 'a" le/era)e it

te'h"olo)+ a"* i""o/atio" to 'reate a

total plat$orm o$ pro*&'t a"* pro'ee,

• The firm must also determine the

scale of products or services!

– Ho! it !ill pri'e the pro*&'t% !here it!ill mar(et the pro*&'t% a"* !here it !ill

ma"&$a't&re the pro*&'t,



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The proce!! o# managing

technology

.onsider the e(ample ofi+/T'

• Invented by Dean Kamen,who saw how difficult itwas for someone to

handle a wheelchair insettings that were not flat,such on stairs!

• 0e sought to build a chair

that could stand up andbalance like human )) "wheelchair that couldcarry a person up anddown stairs!



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The i*OT ca!e+

• The engineers need to design the product1

• The financial e(perts have to underwrite thecosts1

• The marketing e(perts have to test theproduct, ensure actual acceptance of productand educate individuals the benefits of thisproduct!!!

• It not only took the vision of one person tosee a different solution, but it took an entireorganiation to develop the product2



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%actor! that promote


MOT

Speed of

technological

change

Change in

scope

Changes incompetitionTrade blocs



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la!!i#ication o# Technology

$ewTechnology

&mergingTechnology

0ighTechnology

"ppropriateTechnology

%ediumTechnology

3owTechnology



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Ne& Technology

• "ny newly introduced orimplemented technology that has

an e(plicit impact on the way a

company produces products or

provides services!

• The technology could be around

for many years, but if it is newly

introduced into an organiation, it

is considered a new technology!

• &(amples4



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Emerging Technology

• "ny technology that is not yetfully commercialied but will

become so within about 5 years!

• It may be currently in limited usebut is e(pected to evolve

significantly!

• &(amples4 6irtual T6



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High Technology

• Refers to the advances orsophisticated technologies!

• 7tilied by a wide variety ofindustries having certain

characteristics!

• 0igh tech companies' – &mploys highly educated people

– Technology is changing at a faster rate – .ompetes with technological

innovation

– 0igh levels of R * D e(pense



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Lo& Technology

• Refers to the technologies that havepermeated large segments of human

society!

• 3ow technology companies' – &mploys people with relatively low level

of education

– 7ses manual8semi automated operation

– 3ow R * D e(pense

– Technology base used is stable with little

change

– Products to satisfy basic human needs



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Medium Technology

• .omprises a wide set oftechnologies that fall between

high and low technologies!

• Refers to mature technologies thatare more accommodating than

others to technology transfer!

• &(amples4• .onsumer products8metal

stamping



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Appropriate Technology

• Technology that is balancedbetween the level of technology

utilied and the resources

re9uired for its optimal use!

• The technology could be at any

level : low, medium or high!

• Results in better use of labourresources and better production

efficiency!



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Tacit (!, odi#ied

Technology

• $on articulated

knowledge

• $o uniformity in

presentation

• Developed by the

know)how• Transmitted by

demonstration or

observation,

followed by

simulation!

• People know howtechnology worksbut not why

• &asier, moreprecise and lesstime)consuming

to transfer whenit is codified

• .ompletemastery meansunderstandingboth the e(plicitcodified andimplicit tacitknowledge!

Documents

Chapter 1_Introduction to Technology Management