Relevant Issues in effective Relevant Issues in effective Management of TechnologyManagement of Technology

Dr Kampan MukherjeeDr Kampan Mukherjee

Dean(Academic)Dean(Academic)

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Professor, Department of Management StudiesProfessor, Department of Management Studies

ISM, DhanbadISM, Dhanbad

Technology ManagementTechnology Management

Management of any technology from its inception to Management of any technology from its inception to expiry, to create competitive advantageexpiry, to create competitive advantage

Relevant principles:Relevant principles:

I.I. Involves all management functional areasInvolves all management functional areas

II.II. Technology – either market-pulled or innovation / inputs / Technology – either market-pulled or innovation / inputs / resource pushedresource pushed

III.III.Technology Life Cycle with four stages – Technology Life Cycle with four stages – introduction, introduction, growth, maturity growth, maturity and and declinedecline

IV.IV.Impact of scale factor – efficiency achieved over time Impact of scale factor – efficiency achieved over time and with increase of volume of activities / productionand with increase of volume of activities / production

Forms of Technology advances in Forms of Technology advances in industryindustry

I.I. Product TechnologyProduct Technology: :

Use value enhancement at customers’ end.Use value enhancement at customers’ end.

II.II. Process Technology:Process Technology:

Radical change in production / conversion method for Radical change in production / conversion method for better productivity, efficiency, quality, safety etc.better productivity, efficiency, quality, safety etc.

III.III. Information Technology Services:Information Technology Services:

IT as service provider in managing data / information IT as service provider in managing data / information for management and control of all activities of any for management and control of all activities of any organization, also for data handling and communication organization, also for data handling and communication for people at largefor people at large

IV.IV. Marketing and Distribution Services:Marketing and Distribution Services:

Impact of internet and e-commerce for global marketing Impact of internet and e-commerce for global marketing and control on logisticsand control on logistics

I.I. Technology ForecastingTechnology Forecasting

Prediction of future technology for a sector, process, Prediction of future technology for a sector, process, or organization. or organization.

Important factors – change of global technology, Important factors – change of global technology, technology of prospective users, socio-economic technology of prospective users, socio-economic factors, governmental factors etc.factors, governmental factors etc.

Delphi Technique – iterative method of extracting Delphi Technique – iterative method of extracting opinions of experts for reaching a consensus.opinions of experts for reaching a consensus.

II.II. Technology SelectionTechnology Selection

Complex decision making process for selecting most Complex decision making process for selecting most feasible / viable technology.feasible / viable technology.

Feasibility – availability of skilled manpower, spare Feasibility – availability of skilled manpower, spare parts, matching with upstream and downstream parts, matching with upstream and downstream processes, foreign exchange factor, socio-political processes, foreign exchange factor, socio-political factors etc.factors etc.

Best or most worth – financial criteria like, payback Best or most worth – financial criteria like, payback period, ROI, NPV, IRR etcperiod, ROI, NPV, IRR etc

III. Technology (also Knowledge) TransferIII. Technology (also Knowledge) Transfer Process of sharing skills, knowledge, machines / Process of sharing skills, knowledge, machines /

tools, methods / process etc among organizations tools, methods / process etc among organizations for increase of accessibility of scientific and for increase of accessibility of scientific and technological development.technological development.

Also results in better technology diffusionAlso results in better technology diffusion Transfer of both Explicit and Tacit KnowledgeTransfer of both Explicit and Tacit Knowledge Tacit Knowledge – difficult, more intangibles.Tacit Knowledge – difficult, more intangibles.

Key factors – behavioral expectations or awareness, Key factors – behavioral expectations or awareness, cultural valuescultural values

Key approaches – communication, cross-cultural Key approaches – communication, cross-cultural teambuilding teambuilding

IV. Technology DiffusionIV. Technology Diffusion Very close bonding with market related information Very close bonding with market related information

and societal environmentand societal environment Process of adopting new technology by the market / Process of adopting new technology by the market /

societysociety Existence of 5 groups of people (Everett Rogers)Existence of 5 groups of people (Everett Rogers)

Innovators – 2.5%; mostly young and educated, more Innovators – 2.5%; mostly young and educated, more prosperous, risk-takersprosperous, risk-takers

Early Adopters – 13.5%; young, educatedEarly Adopters – 13.5%; young, educated Early Majority – 34%; little conservative but open to new Early Majority – 34%; little conservative but open to new

ideas, community friendly & socially ideas, community friendly & socially active active

Late Majority – 34%; older & less educated, fairly Late Majority – 34%; older & less educated, fairly conservative, less socially active conservative, less socially active

Laggards – 16%; very conservative, small firm & capital, Laggards – 16%; very conservative, small firm & capital, least educated least educated

5 stages of technology diffusion / adoption as 5 stages of technology diffusion / adoption as experienced by the prospective adoptersexperienced by the prospective adopters

Knowledge Knowledge – exposed to new technology, but not inspired or – exposed to new technology, but not inspired or motivated to seek detailed informationmotivated to seek detailed information

Persuasion – Persuasion – actively seeking information and detailsactively seeking information and details Decision – Decision – weighs advantages and disadvantages of its use; weighs advantages and disadvantages of its use;

adopt or rejectadopt or reject Implementation – Implementation – implement the technology at a lower scale implement the technology at a lower scale

for test runfor test run Confirmation – Confirmation – adopt to fullest extentadopt to fullest extent

Product DevelopmentProduct Development

General steps for Product Development:General steps for Product Development:

1.1. Idea GenerationIdea Generation

2.2. Product SelectionProduct Selection

3.3. Preliminary DesignPreliminary Design

4.4. PrototypingPrototyping

5.5. TestingTesting

6.6. Detailed DesignDetailed Design

Some relevant design tools / approaches:Some relevant design tools / approaches: Quality Function Deployment(QFD) / House of Quality Function Deployment(QFD) / House of

Quality(HOQ)Quality(HOQ) Concurrent EngineeringConcurrent Engineering CADCAD

Quality Function Deployment (QFD)Quality Function Deployment (QFD)

Translates voice of customers to technical Translates voice of customers to technical design requirementsdesign requirements

Displays requirements in matrix diagramsDisplays requirements in matrix diagrams each matrix called “house of quality”each matrix called “house of quality” series of connected housesseries of connected houses

House of Quality

Trade-off matrix

Design characteristics

Customer requirements

Target values

Relationship matrix

Competitive assessment

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Competitive Assessment of Customer requirements with ‘A’ and ‘B’(a simple example of electric iron)

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Competitive Assessment

Customer RequirementsCustomer Requirements 1 2 3 4 5

Presses quickly 9 B A XX

Removes wrinkles 8 AB XX

Doesn’t stick to fabric 6 XX BA

Provides enough steam 8 AB XX

Doesn’t spot fabric 6 XX AB

Doesn’t scorch fabric 9 A XXB

Heats quickly 6 XX B A

Automatic shut-off 3 ABXX

Quick cool-down 3 XX A B

Doesn’t break when dropped 5 AB XX

Doesn’t burn when touched 5 AB XX

Not too heavy 8 XX A B

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Customer RequirementsCustomer Requirements

Presses quickly - - + + + -

Removes wrinkles + + + + +

Doesn’t stick to fabric - + + + +

Provides enough steam + + + +

Doesn’t spot fabric + - - -

Doesn’t scorch fabric + + + - +

Heats quickly - - + -

Automatic shut-off +

Quick cool-down - - + +

Doesn’t break when dropped + + + +

Doesn’t burn when touched + + + +

Not too heavy + - - - + -

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From Customer From Customer RequirementsRequirementsto Design to Design CharacteristicsCharacteristics

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Tradeoff Matrix

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Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N

Iron A 3 1.4 8x4 2 SS 27 15 0.5 45 500 N Y

Iron B 4 1.2 8x4 1 MG 27 15 0.3 35 350 N Y

Our Iron (X) 2 1.7 9x5 4 T 35 15 0.7 50 600 N Y

Estimated impact 3 4 4 4 5 4 3 2 5 5 3 0

Estimated cost 3 3 3 3 4 3 3 3 4 4 5 2

Targets 1.2 8x5 3 SS 30 30 500

Design changes * * * * * * *

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Targeted Changes in Design

SS = SilverstoneMG = MirorrglideT = Titanium

Completed House of Quality

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House House of of

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Part characteristics

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Benefits of QFDBenefits of QFD

Promotes better understanding of customer demandsPromotes better understanding of customer demands Promotes better understanding of design interactionsPromotes better understanding of design interactions Involves manufacturing in design processInvolves manufacturing in design process Breaks down barriers between functions and Breaks down barriers between functions and

departmentsdepartments Provides documentation of design processProvides documentation of design process