Chapter 1

A review of Technology
Management

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Topics
A review of Technology Management:
 Introduction: What is technology?
 Why do we need to manage the
technology?
 The importance of managing technology
for global competitiveness
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Some hypothesis of Technology

1) Technology is something complex.
2) Technology is the state of the art.
3) Technology will produce sophisticated high-
technology product.
4) Technology is unknown
5) Technology is a high-tech process producing
high-tech products.
6) Technology empowers and creates.
7) Technology is dangerous and destroyer.
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Definitions of Technology
 Technology refers to material objects of use by people,
such as machines, hardware or software. It can also be
understood as systems, methods of organisation and
techniques.
 Definition by Ferré (1988)
 “Technology as practical implementations of
intelligence”.
 Definition by Gendron (1977)
 “A technology is any systematized practical
knowledge, based on experimentation and/or
scientific theory, which is embodied in productive
skills, organization, or machinery”.
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 Definition by Tarek M. Khalil

 “All the knowledge, products, processes, tools,
methods, and system employed in the creation
of goods or in providing services.”
 Definition by IT Dictionary
 The application of science and engineering to
the development of machines and procedures
in order to enhance or improve human
conditions, or at least to improve human
conditions, or at least to improve human
efficiency in some respect.
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Differences between Science

and Technology
 Science is the study of why natural things
happen the way they do.
 Technology is the use of knowledge to
turn resources into goods and services
that society needs.
 Science and technology affects all
people.
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Why study Technology

 People create technological devices and
systems to satisfy basic needs and wants.
 Technology is the tools to gain
competitive advantage.
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Evolution by Age of
Technology
Biotech.
Age
Information
Age
Space
Age
Electronic
Age
Nuclear
Age
Electricity
Age
Steam
Age
Iron
Age
Bronze
Stone Age
Age
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Civilians vs Technology
Civilizations Technology
Egyptians Big Cities, Huge Pyramids,
Magnificent Temples - to
store crops.
Chinese Pottery, forged armor, built
walls – to defend country.

Japan Robotics, Bullet Train,

Mobile phone – to gain
better life.
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The FOUR elements of

Technology
a) Technique: machinery, tools, materials, and
their application in the work process
b) Knowledge: applied science, skills, intuition
c) Organization: Structuring of the work process
according to technological or socioeconomic
goals or constraints
d) Product: The output of the work process and
the purpose of applying the technology

Technique – Knowledge – Organization - Product

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Application of Technology
 Technology – linked to improvements in
standards of living
 Enhancement of economic prosperity for
countries, industries and businesses
depends upon the effective MOT
 Technology creates wealth
 Application of technology, not just its
development, is a key to success in the
competitive global economy.
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Technology and Business

• The goal of an organization is to achieve
a set of objectives
• Pool of knowledge available to society
• Technology adds value to the assets of a
company
• Conversion of resources into goods and
services
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Components of technology
 The framework consists of 4 elements:
1. Technoware
 Comprises object/hardware embodies technology and
includes tools, machines, equipment ad physical facilities.
2. Humanware
 Comprises person embodied technology and includes
skills, experience, insight and learning
3. Inforware
 Comprises documents or specification embodying
technology and includes designs, processes/
specifications, procedures/methods, theories by both
“know how” and “ know why”
4. Orgaware
 Comprises organization structures, policies, and internal
and external relationships or linkages in and through
technology operates as ongoing system.
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Types of technologies
 Product technology is the knowledge
used to produce any product or service.
 Process technology is the knowledge
used to transform some of the inputs for
the production of a given product or
service.
 Management technology is the
knowledge used to manage the
operations of a company efficiently and
effectively
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Classification of technology
 New technology
 A technology which is newly introduced which can have its
influence on the products of an organization.
 Example: Engineering drawing computer software to replace
manual drafting. (AutoDesk, MATLAB)
 Emerging technology
 A technology is that is not yet fully commercialized but will
become so within about five years is an emerging technology
 Example: Genetic engineering, nanotechnology,
superconductivity.
 Appropriate technology
 To indicate a good match between the technology utilized and
resources required for its optimal use.
 The technology could be at any level – low, medium or high.
 Example: Solar Powered Lightbulb
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Technology levels
 High technology
 New technology with advanced features by the
company having the following characteristics:
 It employs highly educated people such as
scientists and engineers
 It use automatic and sophisticated operations
 Its technology is changing at a faster rate than that
of other industries
 It competes with technological innovation
 It has high levels of R&D expenditure
 Example: A real yellow submarine
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 Medium technology
 Comprises a wide set of technologies that fall
between high and low technologies It usually
refers to mature technologies that are more
amenable than other to technology transfer
 Example: Electric Motor
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 Low technology
 Technologies that have permeated (spread
through) large segments of human society utilized
by the company having the following
characteristics:
 It employ people with relatively low levels of education
 It uses manual or semiautomatic operation
 It has low levels of R&D expenditures
 Its technology base used is stable with little change
 Its products produced are mostly of the types that
satisfy basic human needs
 Example: Hammer, Pencil
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Level of Technology in
Manufacturing Industries
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Name it!

example

Solar Cooker Paying With Your Face

Agriculture Robot Anhui Floating Solar Power Plant

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Drivers of Technology
 How is the innovation made? Who
creates innovation?
 Stakeholders participants of innovation
system
 Customers and technology by changing
environment- drivers of innovations
 Sponsors of innovation
 IT standards
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Management
 Definition
 The art and science of extracting the most from
specific assets for fulfilling desired goals.
 Basic functions:
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MOT
 Integrated planning, design, optimization,
operation and control of technological
products, processes and services, a better
definition would be the management of the
use of technology for human advantage
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MOT Interdisciplinary field

NATURAL
SCIENCE

SOCIAL
ENGINEERING SCIENCE
MOT

INDUSTRIAL
BUSINESS
PRACTICE
THEORY
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The roles of MOT

 MOTfield helps firms to answer the following
question:
• How technologies is created?
• How it can be exploited to create business
opportunity?
• How to integrated technology with business
strategy?
• How to use technology gain competitive
advantage?
• How can technology improve the flexibility of
manufacturing and service systems?
• When to enter and abandon technology?
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Why do we need to manage

the technology?
 Operational excellence
 New products, services and business
models
 Customer and supplier intimacy
 Improved decision making
 Competitive advantage
 Business survival
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1) Operational Excellence
 Improvement of efficiency to attain
higher profitability
 Information systems, technology and
important tools in achieving greater
efficiency and productivity.
 Example:
 Wal-Mart’s Retail Link System links suppliers
to stores for replenishment system.
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2) New products, services and

business models
 Business model use to describe how
company produces, delivers and sell
product to create profit.
 Information system and technology is a
major enabling tool for new products,
services and business models.
 Example:
 Apple’s iPod, iTunes and iPhone, Netflix’s
internet-based DVD rentals.
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3) Customer and supplier

Intimacy
 Serving customers well leads to customer
returning, which raises revenues and profits.
 Example:
 High-end hotels that use computers to track
customers preferences and use to monitor and
customize environment.
 Intimacy with suppliers allow them to provide
vital inputs, which lower costs.
 Example:
 JCPenney’s information system which links sales
records to contract manufacturer.
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4) Improved Decision Making

 Managers must use forecast, best guesses.
 There are many ways to keep track of financial resources,
market conditions, and customer satisfaction.
 Without accurate information, leads to:
 Overproduction, underproduction of goods and services
 Misallocation of resources
 Poor response time
 Poor outcomes raise cost, lose customers
 Digital data collection eliminates some of the fact-
checking businesses must do to combat typical human
error, again allowing decision makers to act quickly and
confidently.
 Example:
 Verizon’s web-based digital dashboard to provide managers
with real-time data on customer complaints, network
performance, line outages and so on.
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5) Competitive Advantage
 Delivering better performance
 Charging less for superior product
 Responding to customers and suppliers in
real time.
 Example:
 Toyota and TPS (Toyota Production System)
enjoy a considerable advantage over
competitor-information systems are critical
to the implementation of TPS.
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6) Business Survival
 Growth of a business is a complex concept and takes
two broad forms
 organic (expanding by increasing overall customer
base, output per customer and new sales)
 inorganic (expansion through mergers, acquisitions or
takeovers).
 Digital marketing concepts like search engine
optimization (SEO), blogging, website development,
and social media targeting all require experts with the
knowledge to provide consults when something goes
awry.
 Tracking success and opportunities is also simplified by
using software designed to store marketing metrics over
time. This allows companies to plan, adapt, and grow.
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Effective Technology
Management
 Strong Planning
 Reduce Interruptions
 Reduce Production Rejections
 Strengthen the Information System
 Provide Technology Leadership
 Provide Good Administration
 Preventive Maintenance
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Benefits of effective
technology management
 Work become easier
 Job satisfaction increases
 Profits increase
 Business becomes competitive
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How technology affects our

life?
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Importance of managing
technology for global
competitiveness
 Growth of the firm
 Technology well managed
 Organization will improve on its operations and
reduce cost of operational cost
 Eliminates duplication
 Technology well managed
 Will automation flow in an organization.
 The technical team will set up Management
Information System (MIS) which provide periodic,
predetermined and ad-hoc reporting capabilities.
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Difficulties of TM
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Competitive Advantage
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Diffusion of Innovations (DOI)

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Different adopter categories

 Innovators - These are people who want to be the first to try the innovation.
They are venturesome and interested in new ideas. These people are very
willing to take risks, and are often the first to develop new ideas. Very little, if
anything, needs to be done to appeal to this population.
 Early Adopters - These are people who represent opinion leaders. They enjoy
leadership roles, and embrace change opportunities. They are already aware
of the need to change and so are very comfortable adopting new ideas.
Strategies to appeal to this population include how-to manuals and
information sheets on implementation. They do not need information to
convince them to change.
 Early Majority - These people are rarely leaders, but they do adopt new ideas
before the average person. That said, they typically need to see evidence that
the innovation works before they are willing to adopt it. Strategies to appeal to
this population include success stories and evidence of the innovation's
effectiveness.
 Late Majority - These people are skeptical of change, and will only adopt an
innovation after it has been tried by the majority. Strategies to appeal to this
population include information on how many other people have tried the
innovation and have adopted it successfully.
 Laggards - These people are bound by tradition and very conservative. They
are very skeptical of change and are the hardest group to bring on board.
Strategies to appeal to this population include statistics, fear appeals, and
pressure from people in the other adopter groups.
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Factors that influence

adoption of an innovation
 Relative Advantage
The degree to which an innovation is seen as better than the
idea, program, or product it replaces.
 Compatibility
How consistent the innovation is with the values, experiences,
and needs of the potential adopters.
 Complexity
How difficult the innovation is to understand and/or use.
 Triability
The extent to which the innovation can be tested or
experimented with before a commitment to adopt is made.
 Observability
The extent to which the innovation provides tangible results.
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Technology Acceptance
Model (TAM)
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Summary
 Technology management is critical not only
creating but also sustaining a competitive
advantage of an organization.
 Technology consideration must be an integral part
of a firm’s business strategy.
 Change in technology without change in the way
it is used can lead to failure.
 Technology and human resources must be
working in an integral manner to ensure success.
 Leaders must have a strong knowledge and
capability in managing both technology and
people.
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End of Chapter 1
 Prepare a mind map for Chapter 1,
submit during next lecture class.
 Prepare for discussion in Tutorial class.