Technology management Definition of technology: defined as all the knowledge, products, processes, tools, methods, and systems employed

in the creation of goods or in providing services. In simple terms technology is the way we do things. Technology is the practical implementation of knowledge. It consists of 3 equally important components: 1. Hardware: physical structure and logical layout of the equipment or machinery that is to be used to carry out the required tasks 2. Software: the knowledge of how to use the hardware in order to carry out the required tasks 3. Brainware: the reasons for using the technology in a particular way. (know-why) A 4th one must be considered independently: 4. Know-how: the learned or acquired knowledge of or technical skill regarding how to do things well. Maybe result of experience , transfer of knowledge, or hands-on practice Definition of management: management is an art and to some extent a technology. It is the art of carrying on business. It involves directing and controlling an organization and steering it towards achieving its objectives. Management control of corporations is essential to keep the organization on course and prevent problems. Management is also a technology, as it is the means by which the desired goals of an enterprise are achieved. Management functions in an organization include planning, organizing, staffing, motivating, and controlling activities of the organization. The term Management technology implies technology used to manage organizations or certain functions. Management of Technology (MOT): is an interdisciplinary field that integrates science, engineering, and management knowledge and practice. (Fig. 1-1 pg. 7)

Managing technology implies managing systems that enable the creation, acquisition and exploitation of technology. It is only when technology is connected with a customer that its benefits are realized. A customer is a beneficiary and could be an individual, a corporation, or a government entity such as a defense establishment.

Classification of technology: 1. New technology: is any newly introduced or implemented technology that has an explicit impact on the way a company produces products or provides services. 2. Emerging technology: is any technology that is not yet fully commercialized but will become so within about five years. Ex. Nanotechnology, genetic engineering 3. High technology: (high tech) refers to advanced or sophisticated technologies. A company is classified as high-tech if it fits the following description: a. It employs highly educated people. (mostly scientists and engineers) b. Its technology is changing at a faster rate than of other industries c. It competes with technological innovation d. It has high levels of R&D expenditure e. It has the potential to use technology for rapid growth 4. Low technology: refers to technologies that have permeated large segments of human society. Low technologies are utilized by a wide variety of industries having the following characteristics: a. They employ people with relatively low levels of education or skill b. They use manual or semiautomatic operations c. They have low levels of research expenditure d. The technology base used is stable with little change e. Products produced are mostly of the type that satisfy basic human needs such as: food, shelter etc 5. Medium technology: ex. Consumer products and automotive industry 6. Appropriate technology: is used to indicate a good match between the technology utilized and resources required. 7. Codified vs. tacit technology Critical factors in managing technology: 1. Creativity factor: technology is an expression of human creativity - Managing technology involves continuous effort in creating technology, developing novel products and services, and successfully marketing them. - This requires great creativity along with a system designed to exploit it and also requires an investment in R&D. - Technology creation and exploitation require a chain of events, starting with inventions and ending at the marketplace. 2. Invention: is either a concept or the creation of a novel technology. It could be a product, a process, or a previously unknown system. Ex. Steam engine, transistor - Inventions occur as a result of human ingenuity and imagination - Most inventions have followed scientific discoveries. There is usually a time lag between scientific discoveries and inventions. - It may take years to move an invention to the market as a product or service. Only few reach the marketplace. 3. Innovation: involves the creation of a product, service, or process that is new to an organization. It is the introduction into the marketplace, either by utilization or by commercialization, of a new product, service, or process.

It doesnt have to be new to the world An innovation may be a change in industrial practice, which improves productivity Innovation process involves integration of existing technology and inventions to create a new or improved product, process, or system

Inventions and innovations are intimately related; however, they are not the same An invention can be thought of as an event, while innovation can be thought of as a process Innovation represents the important connection between an idea and its exploitation or commercialization. The bottom line of innovation is the market MOT encourages invention and the management of innovation. Both are creative processes representing essential components of any technologycreation and application system.

The link between science and technology: Science deals with understanding the laws of nature. The 2 are interconnected in that each influences the other. Scientific discoveries can lead to inventions and innovations New technology permits new scientific discoveries When science and technology connect with the market they influence human lives.

Pg. 34 fig. 3-1

Types of innovation: innovations can influence a product, process, service, or a system. To gain market acceptance, an innovation must contribute to the creation of value.

Classified either as radical or revolutionary innovations; or as incremental or evolutionary innovations: 1. Radical/revolutionary innovations: are usually based on an invention. They change or create new industries. - Relatively rare and typically start outside the boundaries of a firm Ex. The development of xerography by Chester Carlson and his collaborators triggered radical innovations in the photocopying industry and created a market of more than 20$ billion 2. Incremental/evolutionary innovations: small but important improvements in a product, process, or service. Relatively common and are created within the firms of an industry. - They help companies maintain a competitive position in the marketplace. Ex. The creation of the portable PC in 1981 was an incremental technological innovation, since the PC already existed. 3. Routine innovation: is another term sometime used to refer to the introduction of something that is new to an organization but very similar to what it had in the past.