Chapter 1

Introduction to Technology
Management

BJTH3063 Chapter 1
Azizi Romli

CHAPTER OUTLINE
Definition of management, technology
and technology management
Importance of managing technology
Framework of technology
management
Role of firms in technology
environment
Key decisions in managing
technology
Process of managing technology
Factors promoting technology
management
Technology classification
BJTH3063 Chapter 1
Azizi Romli

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).
3

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.

Technology Management
set of management disciplines that
allows organizations to manage its
technological fundamentals to create
competitive advantage
also be defined as the integrated
planning, design, optimization,
operation and control of technological
products, processes and services
ATMAE: the field concerned with the
supervision of personnel across the
technical spectrum and a wide variety
of complex technological systems.
BJTH3063 Chapter 1
Azizi Romli

Importance of managing
technology
The rapid pace of technological
change demands a crossdiscipline approach to take full
advantage of technological
opportunities.
The rapid pace of technological
development and the increasing
sophistication of consumers have
shortened product life cycles.

 The lead-time from idea to market is being

reduced by the emergence of new or altered
technologies.
Increasing international competition
demands that organization must maximize
competitiveness by effectively using new
technologies.
As technology changes, the tools of
management must change, but the process
of determining what those new tools should
be is still in early stage.
7

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).

Technology management

Management technology
Refers to the technology used to
manage organizations or certain
functions
Eg: MIS, ICT, E-commerce
9

Framework in Technology
Mgt
Technology management creates a linkage among
science, engineering & management disciplines.
Science &
Engineering
Disciplines

Technology
Mgt

Business
Administration
Disciplines

The ability to become a competitive enterprise and

sustain economic growth is affected by the
economic system, technical capabilities & trade
conditions.
10

Role of firms in technology

environment
The drivers of change in the
environment.
By creating new products, processes and
materials, they alter the rules of competition,
transform industries and create new
industries.

The beneficiaries of change initiated by

others.
By adopting more efficient technologies into
their products and processes, performance
can be improved and value can be created.

11

 The facilitators of technology

development
By investing in other parties research
projects.

The victims of technology change

When a competitor introduces a new
product or when new technology
transforms industries, corporations may
face the threat of obsolescence.

12

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.

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.
13

 The firm 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.

The firm must also 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.

14

The process of managing

technology
Consider the example of
iBOT:

Invented by Dean Kamen,

who saw how difficult it
was for someone to
handle a wheelchair in
settings that were not flat,
such on stairs.

He sought to build a chair

that could stand up and
balance like human -- A
wheelchair that could
carry a person up and
down stairs.
15

The iBOT case:

The engineers need to design the product
The financial experts have to underwrite the
costs
The marketing experts have to test the
product, ensure actual acceptance of product
and educate individuals the benefits of this
product...
It not only took the vision of one person to
see a different solution, but it took an entire
organization to develop the product!
16

Factors that promote

Technology Management
Speed of
technological
change

Change in
scope

MOT
Trade blocs

Changes in
competition
17

Classification of Technology
New
Technology

Emerging
Technology

High
Technology

Appropriate
Technology

Medium
Technology

Low
Technology

18

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.
Examples?
19

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.
Examples?
Virtual TV

20

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
21

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
22

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?
Consumer products/metal
stamping
23

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.
24

Tacit
vs. Codified
Technology

Non articulated
knowledge
No uniformity in
presentation
Developed by the
know-how
Transmitted by
demonstration or
observation,
followed by
simulation.

People know how

technology works
but not why
Easier, more
precise and less
time-consuming
to transfer when
it is codified
Complete
mastery means
understanding
both the explicit
codified and
implicit tacit
knowledge.

25