Market Based View

Customers
Competitors
Resources
Market Position
Market Conditions
Resource Based View
Unique Resources
Market Opportunities
Core Competencies
Dynamic Markets
Primary activities involve with five
generic activities such as inbound
logistics, operations, marketing,
outbound logistics and services.
Support activities involve four generic
activities such as procurement,
technology development, human
resources management and firm
infrastructure.
The branch of knowledge that deals with
industrial arts, applied sciences or
engineering.
The terminology of an art or science.
A process, invention, method or
experimentation.


Generic Applicability
Interfacing Technology and Market Factors
Influence of Globalisation
Combination of Competition and
Collaboration
Speed in Problem Solving
Make or Buy
Role of Learning
Co-existence of High Tech and High Touch

Individuals develop ideas, theories or
perspectives.
Tacit knowledge is derived from experiences,
experimentation or imagination.
Tacit knowledge is verified and codified
through a scientific process of experimentation
by the way of verification.
Knowledge will leads to products, services or
procedures .
Four Pillars of Technology: Opportunity,
Appropriability, Transferability and Resources
Management of Technology links with
engineering, science and management
disciplines to plan, to develop and to
implement technological capabilities to
shape and accomplish the strategic and
operational goals of an organisation.
Management of Technology focuses on
the principles of strategy and
organisation involved in creating value
for investors.
1950 1970 1980 1990 2000
R & D
Manageme
nt
Manageme
nt of
Innovation
Technology
Strategy
Value Based
Manageme
nt
Competitive
Advantage
Era of Plentiful Resources Era of Accountability
Scientists and
Engineers
Value Based
Leadership
Empowering
Leadership
Process Technology
Product Technology
Classification of Industries


Capacity Driven Customer Driven Knowledge
Driven
Food Processing Food Products Electrical
Equipments
Stone, clay
products
Household
Durables
Scientific
equipments
Pulp and Papers Glass and
Ceramic
Products
Software
Consists of 4 major activities
Applied research : scientific investigation of
known phenomena
Development: Reduces the knowledge to
practice in workable prototype form.
Engineering : The usage of knowledge for
Commercial exploitation.
Commercialisation: Adopted and used by
others.
Process technology changes are much
less visible in the market place.
Process and Product technology
changes have consequences for
economic performance of the firm.
Product technology helps firms compete
for customers. Changes in product
technology help firms to radically
redefine their product/market scope.
Process technology changes modify the
way a firm conducts its business.

Improved and efficient functioning or organisations.
Stability in sales and profits.
Regular employment generation.
Proper management of natural disasters.
Better infrastructure management.
Conservation of flora and fauna.
Forex earnings.
Growth of national economy.
High Standard of Living.
Increase of National Influences over other countries.
Earning through Technology Transfer Agreements
(TTAs).
Levels of Environment
Task environment: Customers, suppliers,
competitors
Industry/competitive environment: firms,
competitors and new entrants
General/macro environment: Social (lifestyles
demographics and social values), economic (
industrial output, per capita income, Savings,
investment and productivity), political
(administrative, regulatory and judiciary
mechanism) and technological (new products,
processes)


It brings new products, processes and
materials.
It directly impact every aspect of the
society around us transportation modes,
energy development, communication,
entertainment, food, agriculture and so
on)
It alters the rules of global trade and
competition
Private Developers
Public Developers
Private Facilitators
Public Facilitators
Induced Change : Represents the technological
consequences created by social, political or economic
forces. ( Eg. National Environmental Protection Act)
Autonomous Change: These changes are less
predictable than induced changes. ( Eg. Advances in
semiconductor and microprocessor led to computers,
laptops, mobile phones etc)
Social Change: Agriculture Machines Computer
Technology
Economic Change( Long- Wave Theory) : First Wave -
Agricultural Revolution; Second Wave - Industrial
Revolution; Third Wave Information Revolution; Fourth
Wave Green Revolution & Biological Revolution



Globalization
Resource Allocated to Technology Development
Changing Location of Manufacturing Facilities
Rise of Multi-Nationals
Comparative Advantage of Nations
Time Compression
Shortened Product Life Cycle
Shortened Development Times
Decreasing Pay Back Periods
Technology Integration
Combining Technologies to Develop New Products
Combining Technologies to Commercialize Products
Globalization
Time
Compression
Technology
Integration
Scope of Environment is
Global
Increased Interdependence
of Institutions
Need for Imitation and
Innovation
Use competence to create value
through innovation
Identify need for idea & knowledge
Creativity and Innovation
Develop, copy, buy Idea & knowledge
Learn new knowledge and develop
competence
Management
Create an environment of care, trust, and sharing
Provide learning opportunities to attract and retain talent
Continuous questioning of assumptions and established truths
Larger difference between managing status quo and leading
change
Create alignment between organisational and personal values and
goals
Understanding of the nature and contribution of knowledge and
competence
Focus on incentive systems and the processes of interaction and
value creation
Balance between short and long term goals; Sustainability and
Shareholder Value
Empowerment of people and communities through diffusing and
distributing control
Knowledge workers
Lifelong learning
Increased flexibility
Increased interconnectedness
Increased learning on demand
Shorter time to respond to changes
Increased need to master complex behaviour
Increased use of IT and learning technologies
Shorter time for exploration and experimentation
Willingness to accept responsibility for own
actions
Creativity/creative thinking/inventive thinking is to
use / involve ones own thought or imagination to
create something new as work of art, an invention.
It is an ability to produce work that is both novel
and appropriate. It provides
Generation of ideas
More value addition
Simplification
Standardisation
Ergonomics
Improving safety
Reducing wastages
Tapping business opportunities
Refers to the changes in the performance
characteristics of a specific technology
over time.
Once a new technology has come into
existence, the performance
characteristics of interest show very little
improvement in the early stages of
technology.
In the final stage, a very little improvement
is visible in the performance
characteristic.
S Curve technology Evolution
Technology Progression
Level of Technology Development
Technology Change Agents
Evolutionary Characteristics of
Technological Change
Uncertainty and Technological Insularity.
Stage
1
Stage
2
Stage
3
Emergence: When technology has come
into existence but shows little improvement
in its performance characteristics
Rapid Improvement: When the
performance characteristics improves at an
accelerating pace.
Declining Improvement: When the pace of
improvement declines
Maturity: When further improvement
become very difficult to achieve.
It is the process by which new technologies
emerge to make existing technologies
obsolete.
Whereas technology evolution describes
the incremental improvements in the
existing technology, technology progression
refers to radical breakthroughs that
produce new technologies.
Technology evolution and technology
progression represent two faces of
technology innovation.

Technology Limit
Technology
Regime 1
Technology
Regime 2
Time
P
e
r
f
o
r
m
a
n
c
e
Basic and Applied Research
Invention and its application in the form
of Innovation
Radical Innovations (cluster of
innovation)

Dynamics of Technological Change
Innovation Diffusion
Innovation at the Firm
Level
Technology Evolution
Characteristics of
Innovative Firms
Problem Recognition: Successful
technological change begins when a
firm recognises a market need that
needs to be fulfilled.
Technology Selection: During this stage,
the firm formulates several design
concepts that will serve market needs.
Solution Development: New design
concept.
Commercialization: The economic
benefits of an innovation.
Problem
Recognition
Technology
Selection
Solution
Development
Commercializ
ation
Triggers
Alternatives
Implementation
Change
Technological
Feasibility
Market Potential
Alternatives
Designs
Technology
Choices
Innovation
Adoption
Commercialization
Reconfiguration
Technology Developers
Technology Facilitators
Customers
Regulator Agents
Other Stakeholders
Innovation, Imitation and Adoption
Innovation : Supply Side
Imitation : Supply Side
Adoption: Demand Side
Role of Technology and Market Factors
Centrality of Learning
Environmental surveillance through technical
intelligence ( create awareness within a firm
with scientific knowledge) and market
intelligence (creates awareness of customer
needs and market potential)


Innovation
Adoption
Imitation
SUPPLY SIDE
DEMAND SIDE
Technology Forecasting is normally thought of as a
set of tools that generate results as the raw material
of technology strategies.
It is the prediction of the future characteristics of
useful machines, tools, equipments, procedures or
techniques
Four Methods
Extrapolation (extension of time series)
Leading Indicators ( like a barometer)
Causal Models ( Predict outcome based on cause
and effect)
Probabilistic models (produce probability
distribution for outcomes)
Delphi Method
Nominal Method
Case Study Method
Growth Curve
Trend Analysis
Correlation Analysis
Cross Impact Analysis
Scenario Writing

To maximise gain from events external to
an organisation.
To minimize loss associated with
uncontrollable events external to an
organisation.
To forecast demand for production and
for inventory control.
To develop administrative plans and
policies internal to an organisation.
M& A driven by cost pressures and
globalization.
A company can reduce risk through
diversification.
A Company can create value using a
portfolio perspective.
Related mergers are easier than
unrelated mergers to achieve.
Technology Transfer is the process by which technology
is disseminated. It involves communication of relevant
knowledge by the transferor to the recipient.
Types of Technology Transfer
Scientific knowledge transfer: It is traditionally
associated with transmission of knowledge gained
through basic research & development activities . It
takes place through conferences and meetings.
Direct technology transfer: Usually occurs through
formal arrangements between enterprises.
Spin-off technology transfer: occurs when technology
developed by one enterprise in one technical area,
and usually for one purpose, is applied and used for a
different technical area.
Informal technology transfer: involves exchange or
transfer technical information through published in
form of electronic media, scientific meetings,
individual exchanges etc.
Formal technology transfer: involves outright
procurement of technology through its sale,
licensing or acquisition of the enterprises through
signed agreements between governments,
enterprises, research entities etc.
Internal technology transfer: refers to technology
transfer or investments where control on the
ownership and usages of technology resides with
the transferor.
External technology transfer: refers to process of
transferring control on the ownership and usage of
the technology by the transferor to the transferee
by joint venture, licensing agreement etc.
Strategic alliances
Licensing agreements
Contracting agreements
Enterprises acquisition
Technical exchanges
Cross licensing agreements
Co-production agreements
Marketing agreements
Joint production
Joint ventures with equity ownership
Technology Acquisition is the process of
acquiring a new technology, new product,
process or service by efforts of an individual
or an enterprise or any other macro entity.
This process can be conducted either
internally or externally to the enterprises.
Methods
Outsourcing
Strategic alliances
Collaborating research and
development
Enterprises acquisition
Technology Absorption refers to the
acquisition, development, assimilation and
utilisation of technological knowledge and
capability by a firm, or some macro entity. It
occurs between transferring and receiving
entities.
Technology absorption is wider in scope
than technology acquisition.
Technology acquired may or may not be
put in use. Technology absorption means
putting the acquired technology to further
development, assimilation and utilization.
Technology Adoption: Technology
absorbed without changing the
parameters of acquired technology.
Technology Adaptation: Technology
absorbed by changing certain
parameters of acquired technology
Why technology adaptation?
Non availability of supporting infrastructure
To meeting market specific needs
To meet legal requirements.

Technology Management is set of management disciplines that
allows organizations to manage their technological fundamentals to
create competitive advantage.
Typical concepts used in technology management are
technology strategy (a logic or role of technology in organization),
technology forecasting (identification of possible relevant technologies
for the organization, possibly through technology scouting),
technology roadmap (mapping technologies to business and market
needs), technology project portfolio ( a set of projects under
development) and
technology portfolio (a set of technologies in use).

The role of the technology management function in an organization
is to understand the value of certain technology for the
organization. Continuous development of technology is valuable as
long as there is a value for the customer and therefore the
technology management function in an organization should be
able to argue when to invest on technology development.

The art and science of making decisions about
investment mix and policy, matching investments
to objectives, asset allocation for individuals and
institutions, and balancing risk against
performance.
Portfolio management is all about strengths,
weaknesses, opportunities and threats in the
choice of debt vs. equity, domestic vs.
international, growth vs. safety, and many other
tradeoffs encountered in the attempt to maximize
return at a given appetite for risk.
Refers to the stage when cost of further
development in the product, service or process
become prohibitive.
By this stage, technology stands fairly diffused from
innovators, to followers and laggards.
The stage of technology and innovation move
from advanced technology to common or
ordinary technology.
Matured technologies: Farming, telephone, watch
Technologies not yet fully matured: Computer,
internet, Economic models
Immature technologies : Nanotechnology,
Quantum Computers

Obsolescence
When a technical product or service is
no longer needed or wanted even
though it could still be in working order.
Technological obsolescence generally
occurs when a new product has been
created to replace an older version.
Examples DVD, Video and Audio
cassettes, VCRs


Technology Audit
An examination of the effectiveness and
efficiency with which product and
process technology is being planned
and executed in an organisation.
It help the organisation to identify
technological strength and weakness.
It provides and inventory of an
organisation's technological base (
hardware, software and human ware)