Agric., Bus. and Tech. Vol.

5, pp 99-109 (2007)
Copyright 2007 Society for Agriculture, Business and Technology
Agriculture, Business
Printed in Nigeria. All rights of reproduction in any form reserved. and Technology
ISSN 2007-0807
Journal

Conceptual Framework for Formulating Technology Strategy: Technology

Resource/Product Approach
A. Ahmad
School of Management Technology, Abubakar Tafawa Balewa University Nigeria
_________________________________________________________________
Abstract
Despite growing importance of technology strategy in achieving operational efficiency and competitive
advantage, there is rarely a coordinated literature on formulating and implementing technology strategy.
Most literatures are predominantly specialized and highly focused as a result there exist preponderance
of disjointed avalanche of technology strategies that rarely capture the complete picture. This paper
proposes the formulation of technology strategy by exploiting the dichotomous nature of technology. In
addition to exploring technology resource strategy-the art of managing corporate technology inputs, and
technology product strategy-the art of managing corporate technology offering, the paper argues the
need to harmonize these two distinct fields of technology strategy with proper organizational
disposition-creating an enabling organizational set-up that engenders the effective formulation and
implementation of technology strategy. The paper concludes that organizations that fashion their
technology strategy on this holistic view are better poise to exploit and leverage the complexities of
todays highly technology influenced business environment.

Key Words: Technology, Technology Strategy, Technology Resource & Product, Organizational
Disposition
_________________________________________________________________
Introduction operational and competitive capabilities, given
The importance of technology management technologies complexities. Secondly, how can the
cannot be over-emphasized, especially in todays manufacturers of technology (especially high-tech)
world of technology avalanche vis--vis the increasing products market these products given their
reliance on technologies (machineries and peculiarities? Finally, what type of organizational set-
equipment) in all areas of organizational activities. As up is required to effectively achieve the above
new technologies are invented and old ones mentioned? The hunger for answers to these
improved, firms try to integrate them for optimal questions has resulted to ever increasing growth of
organizational performance. Similarly, increase in technology management literature over the years.
governmental, organizational, and societal reliance on Most literatures are specialized and highly focused,
different kinds of technologies demand an increase in and target either technology resource strategy
the number and variety of firms offering technology (Ahmad, 2005; Carr, 2004; Farrell, 2003;
products. Narayanan, 1997; Zayglidoupolous, 1999),
This scenario presents a challenge to technology product strategy (Kotler, 2003; Kurzweil,
business organizations in three unique but 2004; Moore, 1991 & 1995; Norman, 1998;
overlapping ways. First, what, when and how should Rogers, 1983) or the right organizational disposition
organizations acquire, utilize, maintain, upgrade, and (Burgelman, Christensen & Wheelwright, 2004;
replace these resources in order to improve their Christensen, 1997 & 2001; Christensen & Raynor

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 Conceptual Framework for Formulating Technology Strategy: Technology Resource/Product Approach
2003; Maidique & Hayes, 1984; Pateli & Giaglis,
2003; Utterback, 1994) for example.
As such there are limited literatures that
capture clearly the three management challenges and
their interdependence, making it difficult for firms to
develop a comprehensive technology strategy. The
main aim of this paper is to propose a coordinated
view of formulating technology strategy. Others
include expanding the literature on classifications of
technology resource an essential ingredient for
formulating technology strategy and conceptual
aspects of technology product. The next part of the
paper offers a brief explanatory definition of
technology and technology change, followed by
discussion on technology resource strategy,
technology product strategy & organizational
disposition, the last part of paper explores technology
strategy by creating a good alignment between the
three areas of technology strategy in discussion and
conclusion.
Understanding Technology
From management point of view technology
can be viewed from two distinct but intricately
overlapping areas. Technology can be viewed from
what organizations require to operate-technology
resource and what organization offer to the market-
technology product. Understanding this
dichotomous perspective of technology provides an
important premise for formulating a thorough
technology strategy. Burgelman, Maidique, and
Wheelwright, (2001), viewed technology resource as
the theoretical and practical knowledge, skills, and
artifacts that can be used to develop products and
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services as well as their production and delivery
systems. Zayglidoupolous (1999) described
technology resource as the codifiable and non-
codifiable information and knowledge that is
embedded partly in the manuals and standard
practices, partly in the machinery and equipment, and
partly in the people and social organization of a
particular organization. Hence technology resources
comprise three elements: machines (tools, structures,
equipment), men (skills, expertise, knowledge) and
method (relationship within and between men and
machines) and all organizations (profit, non-profit,
government) require technology resource to operate.
Ahmad and Ahmad (2006) viewed
technology products as unique corporate offer to the
markets that are used. In essence consumption of
technology product does not lead to its depletion,
unlike non-technology product. Examples include
computer, software, television, satellite signals,
mobile phones, GSM service. From the above it can
be deduced the following about technology product.
First, it has two (2) elements, tangible (TV, laptop,
car) and intangible (software, GSM service, satellite
signals) second, not all organizations produce
technology product.
The two areas of technology are highly
related, since technology product of some firms
represent the technology resource of another, but for
the purpose of formulating technology strategy,
viewing each differently will enable us understand the
characteristics of each, the different set of
management challenges they pose and the need for
unique organizational approach. In a rare definition
that captures the dichotomous nature of technology
Kurzweil (1998), argued that technology goes
beyond mere fashioning (product) and use of tools
(resource); it involves a record of tool making and a
progression in the sophistication of tools.
In general, there are two types of
technological change, that traverse technology
resource and product, continuous/incremental
change on one hand and
discontinuous/breakthrough change. The former
refers to gradual, often indiscernible technological
flows, that improve on existing products or processes,
which are not attributed to a single inventor. The
later, in contrast, involves revolutionary technological
advances due to the invention of new products or
processes, and quite often are attributed to a
particular inventor. The consensus of literature
however, is that the two are not mutually exclusive,
that is, technological change is characterized by long
period of incremental change punctuated by
technological breakthrough (Zayglidoupolous,
1999). The pace of technological change has greatly
accelerated over time, for example the rate of
technological explosion in the first two decades of
the twentieth century matched that of the entire
nineteenth century (Kurzweil, 1998). Technology
strategy is hence concerned with skillful deployment
and offering of technology for competitive advantage.
Technology Resource
There are basically two main categories of
technology resources based on organizational
requirement; effectual (key and auxiliary) and
ineffectual technologies. Key Technologies are
technologies that an organization relies on for its
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subsistence. Absence of these technologies results to
immediate disruption of the normal business
activities, for example: machinery-air craft to an
airline firm; men-engineer to a construction firm; and
account update-in banks. Auxiliary Technologies on
the other hand are technologies that organizations
need in order to out perform competitors and
generally improves its back-office and front-line
operations. Examples are machinery-satellite TV in
patients room and men-security personnel in a
hospital. Absence of auxiliary technologies simply
means poor competitive position and does not
necessarily lead to immediate disruption of corporate
operations. However, depending on the regulatory
framework, structure and sophistication of the
market, toying with auxiliary technologies can be very
costly (Ahmad, 2005), in the airline industry for
example; competition is on the basis of auxiliary
technology such as onboard TV, games and radio
stations. In the same study Ahmad observed that the
effectual technologies varied in terms of importance
between and within an organization(s), for example it
was found out that while refrigerator represent a key
technology to the laboratory department it is no
more than an auxiliary technology in the radiography
department of the same hospital.
Ineffectual technologies on the other hand
are technologies that are virtually not relevant to an
organization or are more than the quantitative
and/or qualitative need of an organization.
Ineffectualism is a serious strategic issue to
organizations as it drains organizational resources
and consumes space. Despite these however, few
organizations are completely immune from
 Conceptual Framework for Formulating Technology Strategy: Technology Resource/Product Approach

ineffectualism, this is due to the multiplicity of where whole, components, spare parts and
factors, such as over stocking of effectual repairs/upgrades are readily available in the
technologies, poor maintenance culture, sudden metropolitan market, at affordable price, without
change in consumers taste, rapid invention of new any legal or political barrier. These categories of
technologies and bandwagon effect. technologies are known as commonplace
technologies. Road transportation firms are
Analysis of Organizational Technology Reliance example of industry with easily reachable
Combination of six (6) overlapping factors technologies. From the vehicles, spare parts,
determines organizational technology resource regime maintenance, drivers are all easily reachable.
which significantly moderate the strategic importance Specialty technologies on the other hand are
and hence the task of managing technology resource difficult to access, recruit, obtain, create, buy,
(Ahmad, 2006). They include: Variety; availability; upgrade, repair and/or perform. Specialty
easiness; stability; variability, controllability and technologies are unavailable in the municipality,
durability: neighboring towns and in some cases within a
Variety: measures the extent to which organizations country. Airline firms are examples of
depend on multiple and diverse technologies, organizations that relied on specialty
task of technology resource management technologies i.e. aircraft and pilots.
becomes strategic, where organizations rely on Easiness: measures the simplicity of using
multiple and diverse technologies and vice-versa. organizational technology inputs. Where
Tertiary hospitals and conglomerates are organizational technologies are easy to operate,
example of establishments that require diverse perform, maintain etc with little or no formal
and multiple effectual technologies. Hospitals rigorous training, such technologies are referred
for example require Machine-stethoscope, x-ray to as simple. However, technologies are complex
machine, clinical bed, stretcher, refrigerator, when operators require extensive training,
incubator, scanning machine, kidney dish, etc; inference and/or experience to operate,
Men-physician, pharmacist, nurse, laboratory maintain, and perform. A typical example of
scientist and technician, midwife etc. easily available but complex technology is
Transportation firms, on the other hand such as Stethoscope.
airline and motor companies require relatively Stability: measures the rate of changes taking place
few assortments of effectual technologies. on organizational technology inputs.
Availability: measures the extent to which Technologies that are constantly passing through
organizational technology inputs are easily revolutionary, incremental and disruptive change
accessible physically, legally, financially and are referred to as unstable technologies. Stable
otherwise. Technologies exhibit high availability technologies are technologies that stay for a long

102
 time before being upgraded or are rarely affected
by discontinuous change. Information
Communication Technologies are example of
constantly changing technologies.
Variability: measures the extent to which different
technologies perform same or similar function.
For example organization can send and receive
message via a host of technologies such as Fax,
telephone, internet, cell phone, pager etc. The
strategic importance of technologies increases
with their variability.
Controllability: measures the extent to which
organizational technology inputs to be useful
without external technology support.
Technologies are controllable when
organizations perform their normal operations
without alliance, partnership or support from
external technologies. Uncontrollable
technologies in contrast, are technologies that
relied on technologies produce and/or control
by other firms to operate. Airlines depend on
airports, radar, etc while GSM (SIM) requires
handsets to be useful.
Durability: measures the expected life span of
technologies. Some organizations largely depend
on long term technologies, while others in
addition to long duration technologies also
heavily rely on short term technologies and
disposal technologies. Medical institutions
represent examples of sector that heavily uses
disposable technologies, such as naso-gastric
tube, canular, scalp vein needle, cables etc. The
implication of technology regimes to overall
corporate technology strategy is discussed in the
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later part of the paper.
In general, technology resource strategy
includes methods and responsibility of technology
acquisition; policy on obsolescences, update and
retirement; determining organisational technology
need; partnership and alliance; technology
competence; technology forecasting and technology
planning (Ahmad, 2006; Bateman & Snell, 1999;
Burgelman et al., 2001; khalil, 2000).
Technology Product
Technology products are often classified
based on five (5) overlapping perspectives;
sophistication, tangibility, life cycle, contact duration,
and market place effect.
Sophistication: Low technologies are simple
and stable technologies that are easily produced, such
as plates, bucket, chairs, etc low technology products
may be exclusively produced from a single matter.
High technologies are complex and unstable
technologies that are rarely utilized in isolation and
are made from multitude of many complex
technologies. Aircrafts, computers, and handsets are
examples of high tech. Medium technologies fall in
between high and low tech (Ahmad, 2006; Kast &
Rosenzweig, 1985; Khalil, 2000). Tangibility:
Technology product can be either tangible such as
car, fridge, watch, or intangible such as GSM service,
satellite signal or software. Contact Duration:
Continuous technology products require unending
relationship between technology firm and the
customers, many intangible technologies such as
telecommunications services requires incessant
relationship between the telecoms firms and the
 Conceptual Framework for Formulating Technology Strategy: Technology Resource/Product Approach
subscribers in order to continuously access the
services. Discontinuous technology products only
require intermittent relationship with the technology
firms, e.g. Software-periodic update and Motor
vehicle-maintenance.
Life cycle: New and emerging technologies
are technologies that allow users to perform a
function that was not possible to be performed prior
to their inventions, or present a new and better way
of performing an old function. New technologies can
be further sub-divided into first beneath the sky, first
beneath the nation, and first beneath the company.
Not all new technologies matured because of high
R&D on improvement, lack of loyalty and ease of
piracy. Incremental technologies (also referred to as
sustaining technologies), usually improves a key
parameter of an existing technology value equation
(Christensen, 1997), for example, increases speed,
efficiency, quality, capacity, reduces error rate and
portability. Incremental technologies are also further
divided according to the intensity of the
improvement i.e. minor or radical improvement.
Incremental technologies obviously have lesser
acceptance problems and R&D expenditure
compared to new technologies. Deliberate
incremental effort usually target safety, compatibility,
resistant to extreme circumstances, functional and
physical upgrade among others (Ahmad & Ahmad,
2006). Disappearing Technologies are technologies
that are steadily fading from the market, because of
the inventions of new/improved technologies and
perhaps changes in customer taste. These
technologies become virtually useless because the new
104
and improved technologies dominate them in all
facets of customer value assessment. Some
disappearing technologies are submerged quickly and
unnoticeable, others disappeared slowly but steadily,
no matter the nature of disappearance however,
Anthes and Mitchell (2003) observed that
monitoring of disappearing technologies, should
form part of technology strategy in order to avoid
last minute expensive changes. Marketplace Effect:
Convergent technologies (also known as packet
technologies) are technologies that perform the
function of two or more different technologies. One-
in-four digital equipment is a typical example that
enables; printing, faxing, photocopying, and scanning.
Convergent technologies offer important benefits to
consumers, such as space management, less fatigue,
overall cost savings. There are two main types of
convergent technologies; simple and complex, where
the multiple functions performed are related or
otherwise respectively. Gartenberg (2002) argued
that, convergent technology may compromise
functionality and results to higher total cost of
ownership, he also argued that their proliferation is
mainly influenced by technology vendors technical
capacity rather than market need. However, virtually
all new and incremental technologies offer one or
more elements of convergence. Disruptive
technologies are simple, convenienttouse
innovations that are initially used by only the
unsophisticated customers at the low end of the
market (Christensen, 1997). At the time of their
inventions, their impacts were seen as only
incremental, if not inconsequential. At the time of
their release disruptive technologies are normally
inferior and cheaper compared to the technologies firms, their inferior nature gives them ample
they displaced. Disruptive technologies are however, improvements capacity and their simplicity of usage
very difficult to deal with, because their low initial and low cost engenders ease of trials (Ahmad &
profit makes them less fashionable to the established Ahmad, 2006; Christensen, 1997).

Technology
Product

Sophisticat- Market Place Life Cycle Contact Tangibi-

ion Effect Duration lity

High Medium Low Continuous Contact Discontinuous Contact

Tech Tech Tech Tech Tech

Tangible Tech Intangible Tech

Convergent Disruptive New & Emerging Incremental Disappearing

Tech Tech Tech Tech Tech

Fig. 1: Classification of Technology Product

In general technology product strategy managerial strategies.

includes the following activities: timing technology
release and upgrade; deciding the type of technology
to concentrate during initial offer and upgrade
between incremental, disruptive or convergent at
appropriate time and market; and the general
technology product marketing strategy taking into
consideration the different types of customers, stages
and the appropriate marketing, technical and
Discussion & Conclusion
Collective analyses of technology resource
and product offer unprecedented opportunities for
formulating an effective technology strategy. The
traditional commencement point for formulation
strategy is scope definition. The scope of technology
strategy for non-technology firms is narrow

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 Conceptual Framework for Formulating Technology Strategy: Technology Resource/Product Approach
compared to organizations that offer technology,
since the later manage both technology resource and
product. Additionally, even for non-technology firms
the scope often varies depending on their technology
reliance regime thus, organizations that rely on few
varieties of controllable, commonplace, stable and
simple technologies that exhibit little variability have
even a narrower scope and vice-versa. Where an
organization realized for example that it relies heavily
on an unstable technology with high variability
organization can use Kurzweil life cycle of
technology model to analyze and locate the stage the
technology lies and hence makes a more informed
long term choice for both technology offering and
acquisition decisions.
Similarly merging the knowledge of
technology adoption life cycle model and
classifications of technology product also enables
firms to effectively manage its technology offerings.
Hence, for disappearing technology and/or decline
stage best strategic option form the technology
vendors viewpoint is to eliminate the technology
from its products line. Kotler (2003) enumerated the
cost of non-eliminating weak products as follows:
consume too much managements time; require
regular price and inventory fine-tuning; involve short
production runs despite expensive setup times;
require both advertising and sales force attention that
might be better used elsewhere; affects corporate
image; more importantly he observes that failing to
eliminate weak products delays the aggressive search
for new ones. Analyzing classifications of technology
product also equipped firms with answer to strategic
questions such as what type of technology to
106
produce, when and where. For example, where the
market is saturated with sophisticated incremental
technologies and the real per capita is coming down
the market is reaped for the introduction of
disruptive technologies.
Additionally, the technology resource
reliance regime will help organizations to put the
seemingly contradictory works of Carr (2004) and
Hamel and Skarzynski (2001) about being slow and
fast in acquiring/adopting new technologies in
perspective, for example where organization/
industries largely relies on unstable technologies they
should be slow acquirers/ adopters of new
technology offerings and vice-versa. Likewise where
organization/ industry overwhelmingly relies on
uncontrollable technologies alliance, partnership and
cooperation should form a considerable part of their
technology strategy. Similarly, organizational
technology resource reliance regime can enable firms
to clarify the key technologies upon which it needs to
operate and excel in a given environment, and take a
more proactive decision on their acquisition. The
circumstance-based theory is also an invaluable tool
for recruiting (internally or externally) and placing
managers at appropriate technology positions taking
into consideration managers previous experience
with different classes of technology products and
technology resource reliance regime.
Although skillful integration of technology
resource and technology product offers great
opportunity formulating technology strategy,
however an important prerequisite for effective
implementation is designing enabling organizational
atmosphere. Pateli and Giaglis (2003) argue that
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