MOT

INTRODUCTION

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 Why MOT?
• To stress technology’s crucial role in creating
wealth and achieving competitiveness;
• To introduce the process of technological
innovation
• Understand concepts of technology & product
life cycles
• To explore human, social, and environmental
concerns associated with technological change
• To link all concepts to the goal of industrial/
business development for economic growth and
the creation of wealth

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 Technology & Society
• Technology had profound impact on human
development
• Took 2 million years to nomads to use tools to
augment their power in terms of agriculture &
domestic animals
• Dawn of civilization
• Industrial revolution- steam engine onwards
• Govt operations, Global operations, MNC all
dependent on technology
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 What is Technology?
• Defined as all the knowledge, products,
processes, tools, methods and systems
employed in the creation of goods or in
providing services.
• We accomplish our objectives.
• Technology is the practical implementation
of knowledge, a means of aiding human
endeavour.
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 contd
• Zeleny(1986) highlighted three interdependent,
codetermining and equally important
components of technology:
• Hardware
• Software
• Brainware- the reasons for using technology in a
particular way or know why
• KNOW HOW: acquired knowledge or technical
skills and how to do things well.
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 Knowledge & Technology
• Living in ‘Knowledge age’
• Advancement of technology follows expansion of
knowledge
• Knowledge- not information, but based on the amount of
information available
• - grasped by the mind from the range of info available
• Advancement of IT in post mid 20th century expanded
availability of info.
• 1947- Bell laboratories- invention of transistors
• Continuous development led to computers and info
revolution.
• In 1991, for the first time, companies have spent more
money on computing and communications gear than the
combined moneys spent on industrial, mining, farm, and
construction 6
 Technology & Business
• Technology adds value
• NETSCAPE
• On NASDAQ, netscape had stock was
$23 in sept 1995, and rose ot $47. By
1996, it had more than 71% of internet
browser market.

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 Classification of Technology
• New Technology- direct impact on company’s product or
services Eg internet web site
• Emerging Technology- not yet fully commercialised but
may become in next few years. Eg. Genetic engineering,
nano technology, superconductivity
• High Technology- refers to advanced or sohisticated
technology. It has following characteristics:
• Employs highly educated people,
• Its technology is changing faster than of other industries
• Competes with technological innovation
• High R&D, expenditure almost twice of general industry.

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 contd
• Low Technology- technologies permeated to large
segment of society eg; satisfy basic human needs like
food , shelter , clothing and basic human needs
• Medium Technology- also called mature technology,
industries in this category are consumer products and
the automotive industry
• Appropriate Technology: good match between the
technology utilized and the resources required for its
optimal use. It may be- high, low or medium in nature. It
results in better use of labour resources and better
production efficiency

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 Spinning out Technology

• Technology must connect with

customer needs to satisfy those
needs and achieve societal goals.
Technology is the engine of
economic growth

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Spinning out technology
Society Needs

Market Needs

Technology conversion

Technology creation
or Acquisition

Production

The customer

Standard of living, social and environmental issues

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 Proper MOT creates wealth

Technology Labour

Natural Resources
Capital Wealth
Creation

Public and Environmental Market

Policy

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 USA realized importance of MOT
• -1970s & 1980s, US industries started to lose their
competitive advantage, mainly to Japanese products.

• National Research Council(NRC), the National Academy

of Engineering, the National Science Foundation(NSF),
emphasized the importance of MOT in restoring the
position of US in economic leadership in the world.
• The NRC report proposed bridging the knowledge and
practice gap between engineering and science on one
side and business and management on other.

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 CORE KNOWLEDGE NEEDED FOR MOT

SCIENCE & MOT

ENGINEERING BUSINESS
DISCIPLINE ADMINISTRATION
DISCIPLINE

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The Pace of Technological Change
Technological Development

1980
1780 1880
Time/ Year

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 Manager’s role
• Embrace change for the benefit of their
organization.
• New role is to manage change in the era
of high rate of change of technology.

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Technology & Sustainable Growth

Technological capabilities

Trade
Economic system

Competitive
enterprises

Sustainable economic Growth

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 Technological change contd.
• Early 1900- 85 percent of the US workforce
involved in agriculture. (presently 3 percent).But
still world’s largest producer of agri product.
Because of technology.
• 1950s- a large work force shifted to
manufacturing; production technology had
expanded job opportunities and absorbed 73
percent of the workforce.Today, only 15 percent
of US employment.
• 1990s- information technology,leading to
technology revolution. Employment in services
sector
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Important technological Innovations
• 1739-1829
• Cotton gin
• Steam powered locomotive
• 1830-1900
• Telegraph
• Vulcanized rubber
• Saftey elevator
• Internal combustion engine
• Telephone(Bell)
• Radio( Marconi)
• 1901- 1939
• Air conditioner
• First flight
• Model T (Ford)
• Liquid fueled rockets
• FM radio
• Jet engine
• Helicopter

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 Contd.
• 1940-49
• Colour TV
• Manhattan project
• General purpose electronics, digital computer
• Supersonic flight
• Transistor
• Jet Airliner
• 1950-69
• Sputnik(USSR)
• NASA
• Integrated circuit
• Laser
• First man in space
• Telstar satellite
• Fibre optics
• Apollo

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 1970
• Microprocessor
• Recombinant DNA
• Laser printer
• MRI scanner
• Space shuttle

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 Critical Factors in Managing
Technology
• Technology- an human expression
• Managing technology involves- continuous
efforts in creating technology, developing
novel products and services, and
successfully marketing them

invention Technology creation &

Marketing
exploitation

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 Invention v/s innovation
• Invention: a concept or creation of novel technology
• - a product, process or a previously unknown system
• eg
• -composite material
• Steam engine
• Transistor
• In modern times, inventions have followed scientific
discoveries: Einstein’s formula for mass and energy-
development of nuclear energy

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 Innovation
• Creation of a product, service or process that is
new to organization
• It is the introduction into the market place, either
by utilization or by commercialization of a new
product, service or process
• It is viewed as the first use of of an idea within
an organization
• An innovation may be a change in industrial
practice , which improves productivity

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 contd
• Schumpeter: defined successful
innovation as a “ task sui generis”
a feat not of intellect but of will.

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 Components of an Innovation cycle
May never be developed into marketable
products
Invention

Innovation
Scientific Adapting invention
Has no Discovery
Instantaneous
Commercial Market
value
Buying or ignoring the innovation

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 S & T are linked through the discovery-
invention- innovation-market sequence
• Scientific Discoveries
• Technological innovations

• Two are interconnected and influence each

other
• When S & T when connect with the market they
influence human lives
• Scientific discoveries to satisfy market needs:
• Vaccines to prevent spread of diseases
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 Types of Innovation
• -radical or revolutionary innovations: they change or create new
industries
• Transistor in Bell laboratories,
• Beginning of phenomenal development in electronics industry
• Xerography by Chestor Carlston: in photocopying industry
• -incremental or evolutionary innovations: they are small but
important improvement in a product, process or service.
• -they are within the firm / industry
• Japan’s kaizen philosophy is helpful
• Creation of PC (1981)

• Routine innovation: something new to organization but very similar

to what in the past

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 Creativity & Innovation
• Creativity is the engine of innovation
• The essence of creativity is combining two or
more ideas to arrive at an entirely new one.
• Henry Ford’s assembly line:
• A. combining the production of standardized
parts( earlier introduced by Eli Whitney) with the
idea of bringing the parts to the workers rather
than moving workers to the parts.

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 Creative environment
• Jain & Triandis(1990)
• i. permits people to work in areas of their
greatest interest
• ii.Encourages employees to have broad
contact with stimulating colleagues
• Iii.Allows taking moderates risks.
• Tolerates some failures and nonconformity
• Provides appropriate rewards and
recognition
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 Bringing Innovation to Market
• Time lag between the different stages of innovation
cycle’s sequence of events- science, invention,
innovation and market.
• Manipulation of “ Time” factor acts as an important and
effective competitive weapon.
• However, a company that owns a technological
innovation may want either to delay or speed up the
diffusion of technology in the market place to fully exploit
its benefits.
• Eg. Speeding diffusion in Microsoft’s strategy of licensing
DOS operating system to many computer companies
and later on developing WINDOWS 1995 programme
available to each PC

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 Contd.
• APPLE COMPUTER: kept its Macintosh
user friendly operating system proprietary
for many years and refused to license it
top other PC makers.
• Outcome: Apple’s superior technology
was not diffused adequately to permit
domination of the software market in the
long run.

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 Strategy
• Microsoft’s strategy” had a long term
technology domination effect

• Apple: had a short term large profit –

margin effect.

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 Technology- Price relationship
• When a company has a technological
advantage, it is able to command a premium
price for its technology

• The technology gap shrinks after customer’s

awareness of technology
• The value of the technology , as well as the
commanded price, will decline and later vanish.
• It may even reverse and become negative if the
knowledge is transferred to a customer who can
improve on the initial technology

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 Technology gap/ price relationship

Technological knowledge
Own
knowledge

price gap
Customer
knowledge

Technology gap
Time or diffusion

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 Leaders V/s followers
• A Leader: first to market an innovation
• A Follower: misses the initial wave of
capitalization on technology but
recognizes the technology’s impact on its
business
• A Laggard: realizes a potential for profit on
technology but seldom influences
technology’s use. Engage in “ me too”
behaviour.
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 Advantages of being leader in
innovation
• 1. Name recognition
• 2. Better market position
• 3. A chance to define the industry standard
• 4 .A head start on the learning curve
• 5. protective barriers
• 6.High profit
• 7.Delayed customer switching
• 8.Favourable response by outsiders- govt,
venture capitalists

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 Disadvantages for being leader
• -leader assumes the large cost associated with research,
prototyping, testing and overall development
• -leader must be able to sustain the lead, costs
associated with updating the technology
• Initial investment in design, tooling and production may
create difficulty in reversing the course of action should a
competitor introduce a new technology or an improved
design
• Market uncertainty over induction of new technology
• Leader is a target for competition

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 Outcome from the innovation
process
IMITATOR- FOLLOWER
INNOVATOR
PILIKINGTON IBM PC
(FLOATGLASS)
MATSHUSHITA
WIN
(VHS format for cr)
DU PONT
(TEFLON) SEIKO(QUARTZ WATCH)

RC COLA(DIET
KODAK( INSTANT
COLA) PHOTOGRAPHY)
EMI (CAT)
LOSE NORTHRUUP( F20)
BOWMAR(CALCUL
ATOR)
XEROX

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