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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!
• $eeds an understanding of humanand organiational behaviour!
• Include planning, organiing, staffing,motivating and controlling functions!
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Technology Management
• set of management disciplines that
allows organiations to manage itstechnological fundamentals to create
competitive advantage
• also be defined as the integrated
planning, design, optimiation,operation and control of technological
products, processes and services
• "T%"&' the field concerned with the
supervision of personnel across thetechnical spectrum and a wide variety
of comple( technological systems!
BJTH3063 Chapter 1 Azizi Romli
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Importance o# managing
technology
• The rapid pace of technologicalchange demands a cross)
discipline approach to take full
advantage of technological
opportunities!
• The rapid pace of technological
development and the increasing
sophistication of consumers haveshortened product life cycles!
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• The lead)time from idea to market is being
reduced by the emergence of new or alteredtechnologies!
• Increasing international competition
demands that organiation must ma(imiecompetitiveness by effectively using newtechnologies!
• "s technology changes, the tools ofmanagement must change, but the processof determining what those new tools shouldbe is still in early stage!
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$e#inition o#
Technology Management
• " 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< 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
Technology Management
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!