Technology Management
IPE 4111
Afia Ahsan
Lecturer
MPE, AUST
Definition of Technology
Technology can be defined as all the –
knowledge, products, processes, tools, methods and systems employed in the
creation of goods or services.
It is not just a hardware, such as machines, computers or an electronic gadget.
It involves many other things, such as –
✓ Software – knowledge on how to use the hardware
✓ Know-why (brain ware) – reasons for using it
✓ Know-how – skills and methods regarding how to do things well, by
transferring knowledge, experience.
Classification of Technology
New Technology – The technology does not have to be new in the world, it is
new to the company. It could have been developed years ago.
Emerging Technology – An emerging technology is any technology that is not yet
fully commercialized, rather has limited use, but has great potential to flourish.
Sustainable Technology – Any technology that helps development to meet the
needs of the present without compromising the ability of future generations.
This has gain importance and popularity for environmental concern.
Envirotech, Greentech, Cleantech, etc.
Classification of Technology
Low Technology – It is that technology that permeated (widely used for a long
time) by many segments of industries and known to large cross-section of
manpower. Its characteristics are just the opposite of high-tech. e.g., food
technology, clothing, etc.
High Technology – Known as high-tech, refers to advanced technologies. A
technology can be termed as high-tech, if it fits the following characteristics:
➢ Requires highly skilled and educated manpower
➢ Changing at a very fast rate
➢ High level of and frequent innovations
➢ Requires huge investment in R & D
➢ Has potential of rapid growth in technological assets
Classification of Technology
Medium Technology – Any technology that falls between high and low
technologies. e.g., automotive industries, consumer products.
Appropriate Technology – The term, appropriate technology, is used to
indicate a good match between technology in-hand, the resources required
for its optimal use, and suitability for use in the society/market being
concerned.
Classification of Technology
Medium Technology – Any technology that falls between high and low
technologies. e.g., automotive industries, consumer products.
Appropriate Technology – The term, appropriate technology, is used to
indicate a good match between technology in-hand, the resources required
for its optimal use, and suitability for use in the society/market being
concerned.
Acquisition of Technology
Acquisition of technology refers to the process of obtaining and incorporating
new technological solutions, tools, or systems into an organization's operations.
It involves acquiring hardware, software, applications, or other digital assets that
enable the organization to improve efficiency, effectiveness, and competitiveness
in various aspects of its business.
Methods of Acquiring Technology
There are several requisite methods of acquiring technology:
1. Using Internal R & D
2. Participating in a joint venture
3. Contracting out for R&D
4. Licensing-in of technology
5. Buying technology.
Methods of Acquiring Technology
1. Using Internal R&D –
❖ A company relies on its own manpower and technical resources
❖ Strong technical workforce and financial backing is required
❖ Big companies in the world, like General Electric, General Motors, Toyota,
Hondas, AT&T etc., have their own internal R&D.
2. Participating in a joint venture:
❖ Two or more firms with complementary strengths join together.
❖ IBM, Motorola and Apple have joint venture to develop Power PC chip.
❖ Motorola and Toshiba have joint venture, in which Motorola can use its
strength in Microprocessor and Toshiba can use its strength in memory
chip.
Methods of Acquiring Technology
3. Contracting out for R&D:
❖ By contracting out, a company can reap the benefits of R&D from a 3rd
party specialized (in R&D) organization. Often, the specialized 3rd party is a
university in the USA, it is often Defense related organization.
❖ This is cheaper option than having own expensive long-term R&D Dept.
4. Licensing-in of Technology:
❖ A company may purchase the right (for a limited time period) to utilize
technologies owned by someone else.
❖ Sony Corporations bought a license for the transistor from AT&T, and
widely used it in its different products.
Methods of Acquiring Technology
5. Buying technology:
❖ This is an outright purchase of technology, which means “buying directly
the final product ’’or “buying part production’’.
❖ This is the fastest way to obtain a technology and does not involve any
resource commitment.
❖ This requires strong bridges with the supplier of technology which requires
continued support in future also
❖ This method is suitable for external type of technology.
Technology Life Cycle
Technology life cycle refers to the stages that a technology product or innovation
goes through from its initial development to its eventual decline or obsolescence. I
provides a framework for understanding the different phases that technologie
typically experience over time.
Technology Life Cycle
❑ Embryonic stage: If the technology is in the embryonic/development
phase but has not yet demonstrated its full potential for changing the basis
of competition in the future, it is considered an Emerging Technology.
Companies, interested in this technology sector should ’monitor’ emerging
technologies.
❑ Early part of Growth stage: If the technology is in the early part of growth
stage and has demonstrated its full potential for changing the basis of
competition, it is termed a Pacing Technology. Companies, interested in
this technology sector should consider ’investing selectively’ in pacing
technologies.
Technology Life Cycle
❑ Later part of Growth stage: This is the promising part of technological
business, where accelerated growth is enjoyed. This is essential to the
success of a company, and thus, are termed Key Technologies.
Technologies, in this phase, are centered around performance, cost and
quality. Companies should be prepared to increase their strength
systematically in key technologies.
❑ Maturity stage: As technologies mature, they become known as Base
Technologies. At this stage, technologies provide a firm with little or no
competitive advantages. Here, technologies become known to many
organizations, become available to all competitors. At this aging stage,
companies should start divesting selectively while harvesting the benefits
from existing investment as much as possible.
Thank You
