BJTH 3073

MAZRI BIN YAAKOB

CHAPTER 1

INTRODUCTION TO TECHNOLOGY MANAGEMENT

CHAPTER OUTLINE

Definition of management, technology and technology management Framework of technology management

Technology classification/ Technology Choices

WHAT IS MANAGEMENT?

Art of carrying a business.

Involves directing and controlling an organization and steering it toward achieving its objectives. Needs an understanding of human and organizational behaviour.
Include planning, organizing, staffing, motivating and controlling functions.
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PLAN

ORGANIZE
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Basic Management function

CONTROL

LEADING

WHAT IS TECHNOLOGY?

The practical implementation of learning and knowledge by individuals and organizations to aid human endeavor. Technology is the knowledge, product, processes, tools and systems used in the creation of goods or in the provision of services (White & Bruton, 2007). All the knowledge, products, processes, tools, methods and systems employed in the creation in goods or providing services (Khalil, 2000).
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DEFINITION OF TECHNOLOGY MANAGEMENT

A field that links different disciplines to plan, develop, implement, monitor, and control technological capabilities to shape and accomplish the strategic objectives of an organizations (White & Bruton, 2007). An interdisciplinary field that integrates science, engineering and management knowledge & practice (Khalil, 2000). Example: iBot, new solution of wheelchair,flat&smooth surfaces-carry a person up and down the stairs

Engineers design, financial experts write the cost,marketing personnel test products (entire organization develop product)

INTERDICIPLINARY NATURE OF MOT

NATURAL SCIENCE

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ENGINEERING

MOT

SOCIAL SCIENCE

BUSINESS THEORY

INDUSTRIAL PRACTICES

(Source: Khalil, 2000)

Technology management Management technology

Refers to the technology used to manage organizations or certain functions

Eg: MIS, ICT, E-commerce

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FRAMEWORK IN TECHNOLOGY MGT

Technology management creates a linkage among science, engineering & management disciplines. Science & Engineering Disciplines Business Administration Disciplines

Technology Mgt

The ability to become a competitive enterprise and sustain economic growth is affected by the economic system, technical capabilities & trade conditions.
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MAKING DECISION FOR MANAGING TECHNOLOGY

The firm must determine the scale of products or services.

How it will price the products, where it will market the products, and where it will manufacture the products.

The firm also needs to determine the scope of products or services it wants to offer.

Determine how it can leverage its technology and innovations to create a total platform of products and processes.
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KEY DECISIONS IN MANAGING

TECHNOLOGY

The firm must determine if it wants to be a leader or follower in its industry.

Both has own benefits, but the choice will result in the firm taking radically different measures. Eg.Du Pont,TEFLON, RC Cola-Coca Cola,Seiko, Kodak Polaroid

The firm must also determine whether it will develop its own new technology or buy the technology.

Each approach has benefits and drawbacks that need to be weighed by the firm itself.
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Develop or buy technology?

Using internal R&D Participating in JV

METHODS OF ACQUIRING
TECHNOLOGY
Contracting out for R&D

Buying the technology

Licensing in of technology

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USING INTERNAL R&D

Organization relies on its own human & technical resources to develop the technology in-house.
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Requires strong technical workforce.

Requires strong financial backing for R&D operations.

Have their own laboratory /R&D department to support their efforts to create the technology.
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EXAMPLE (USING INTERNAL R&D) PROTON BERHAD

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PARTICIPATING IN A JOINT VENTURE

Two or more organizations/firms combine their knowhow, financial and technological resources to develop technologies.

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EXAMPLE (PARTICIPATING IN JV) THE CASE OF OLED

Kodak and Sanyo Electric recently formed a joint venture named SK Display corporation to manufacture organic light emitting diode (OLED) displays for consumer devices such as cameras, PDA and portable entertainment machines. OLEDs enable a greater range of colors, brightness, and viewing angle than LCDs, because OLED pixels directly emit light.

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This JV cost Kodak a $125 million investment (financial resources)

Sanyo will contribute less financially but will contribute more technical expertise. OLEDs have been found in models of the Sony Walkman and some Sony Ericsson phones.

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CONTRACTING OUT FOR R&D

Conduct R&D without having to invest heavily in an in-house R&D effort. Contracting out their R&D to a contract R&D company.
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A contract R&D company, i.e. a company that provides R&D services.

Many companies are increasing their use of this approach to cut R&D expenditures.

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EXAMPLE (CONTRACTING OUT OF R&D)

1. Gulf and Pacific Industries Sdn. Bhd. - Manufacturer of Roselle jam, cordial and carbonate drink. - Contracting out R&D to MARDI.

2. Sendayu Tinggi Body & Skincare Sdn. Bhd.

A cosmetic manufacturer were assisted through

contract research with SIRIM on new formulation and trial production for market testing.

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LICENSING IN OF TECHNOLOGY
An organization purchases the right to utilize technologies owned by someone else. There is a premium to be paid of using the name of that corporation and for offering its products.

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Example (licensing in of technology) Acquiring a franchise of a well known corporation such as Burger King, Mcdonalds etc.
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Sony corporation bought a license for the transistor from AT&T Was able to widely deploy the technology in its products.
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BUYING THE TECHNOLOGY

Outright purchase of technology. Fastest way to obtain technology. Not involve any resource commitment for technology development on the part of acquirer. Requires building strong bridges with the supplier of the technology.

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EXAMPLE (BUYING THE TECHNOLOGY)

18 units of Sukhoi Su-30MKM AS$900 million
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CLASSIFICATION OF TECHNOLOGY
New Technology Emerging Technology High Technology

Appropriate Technology

Medium Technology

Low Technology

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NEW TECHNOLOGY

Any newly introduced or implemented technology that has an explicit 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 organization, it is considered a new technology.

Computer software replace manual drafting, Internet website

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EMERGING TECHNOLOGY

Any technology that is not yet fully commercialized but will become so within about 5 years. It may be currently in limited use but is expected to evolve significantly. Genetic engineering, nanotechnology

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HIGH TECHNOLOGY

Refers to the advances or sophisticated technologies. Utilized by a wide variety of industries having certain characteristics. High tech companies:

Employs highly educated people Technology is changing at a faster rate Competes with technological innovation High levels of R&D expense
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LOW TECHNOLOGY

Refers to the technologies that have permeated large segments of human society. Low technology companies:

Employs people with relatively low level of education Uses manual/semi automated operation Low R & D expense Technology base used is stable with little change Products to satisfy basic human needs

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MEDIUM TECHNOLOGY

Comprises a wide set of technologies that fall between high and low technologies. Refers to mature technologies that are more accommodating than others to technology transfer. Examples?

Industrial automation, mobile phones

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APPROPRIATE TECHNOLOGY

Technology that is balanced between the level of technology utilized and the resources required for its optimal use. The technology could be at any level low, medium or high. Results in better use of labour resources and better production efficiency.
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