Managing technological

change
 Technological change
 Competitive advantage is based on firm specific

combination of scientific and technical knowledge

and know-how
leading to
&
embedded in
products, services and management systems
 Technologies are embedded not only in product
but in all the primary and support activities of the
Firm.
Technological Changing on the Basis of
Non Price Factors
Customers Demand
 More variety
 More customization
 Frequent model changes
 High quality
 Faster delivery
 Better Service
 Advanced design
 Understanding the Technology
Management Challenge
 Traditional trade offs – between price and
quality or between price and choice – are
replaced by competitive prices and whole
set of non-price factors.
 Quality used to be a differentiator earlier -
now if you cannot offer quality, you cannot
be in the market.
 The Value Chain and Technology
Change

Firm Infrastructure M
Support

A
Human Resource Management R
Activities

G
Technology Development I
N
Procurement
M
Primary

A
Inbound Outbound Marketing Service R
Operations
Logistics Logistics and Sales G
I
N

Acknowledgement - UNIDO: Guidelines for the Formulation of

Technology Strategies for Hi-tech Companies
 Technological Change Mapping
Basic / Generic Technologies, Proprietary Technologies,
Pacing Technologies and Emerging Technologies

Possible future
products / Keep
Can use watching
processes but need
to keep
Planned new Keep
track of Invest in
products / close
best R&D
processes watch
sources of
supply
Core products / MUST
processes MAINTAIN

Basic Proprietary Pacing Emerging

Impact of Technological Change
 Technological change allows firms to
produce the same rate of output using fewer
inputs
 Technological change may be input neutral,
labour saving or capital saving
 Single most source of economic growth in
the USA has been “Technological Change”
 Response Strategy to cope with
Change
 Products
• What product is the company making?
• Is that product environmentally acceptable?
• Are there short-, medium-, or long-term risks in
the continuation of this product?
• Should this product be re-designed to take
account of the environmental issue?
• What are the risks and what are the
opportunities presented?
 Response Strategy to cope with
Change
 Technologies
• Have technologies moved on?
• Is there an opportunity to innovate with
technology?
• Is there room to modify existing technologies?
• Could these technologies be better used?
• Is operator training adequate?
• What are the risks in opportunities?
 Response Strategy to cope with
Change
 Competitors
• Who are the enterprises competitors?
• Who are the local, national and international
competitors?
• What are these competitors doing?
 Are they designing products and processes for the
environment?
 Are they marketing their products in an innovative way?
 Are they driving down costs through environmental
innovation?
 What risks do I face in comparison to my competitors?
 Proposed model for PDTCs

Data & Information

Universities Center Intranet
High Tech
Companies
Technology
Pole I Specialized projects

Research Labs Training

Regional Pole
Technology or Technology Fund
Pole II Management Mobilization
Center
Govt./Local
body relations

Technology
Pole n Project 1 P2 P3 Pn
Thank-you