Technology Management

Unit 7

Unit 7

Aspects and Issues in Technology Management

Structure: 7.1 Introduction Objectives 7.2 Technological Change Characteristics of technological change Classification of technological change Impact of technological change 7.3 Technology Life Cycle 7.4 Technology Transformation 7.5 Technology Policies and Policy Instruments 7.6 Technological Development Options and Strategies 7.7 Technology and Socio-Economic Planning 7.8 Diffusion and Growth of Technologies Information technology revolution Macro effects of technological change 7.9 Summary 7.10 Glossary 7.11 Terminal Questions 7.12 Answers 7.13 Case Study

7.1 Introduction
By now you must be familiar with the emerging new technologies, its mode of selection and implementation. You must also be familiar with automation technology and automated decisions. The result of technology growth has its base from inventions and innovations. The changes to technology have occurred through substitution and diffusion. The simplest form of technological substitution occurs when a new technology captures over a period of time, a substantial share of the market from an existing older technology. So, in this unit we are going to deal with the study of aspects and issues in managing a technology. This unit will also enable to you to understand the technological changes, technology life cycle, technological transformation, technology policy and policy instruments, planning, development options and strategies.
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Objectives: After studying this unit, you should be able to: Explain the need and importance of technological change, technology life cycle, and technology transformation. Justify the need and role of technology policies and policy instruments. Analyse technology development options and strategies available to an organisation. Describe the importance of linkage between technology issues and socio-economic planning process. Analyse diffusion and growth of technologies.

7.2 Technological Change

We have seen that technology includes knowledge knowledge that is embodied and implicit. The firm-specific knowledge is the sum totality of all the knowledge within a firm. We can define technology change as the process of adding up the knowledge to the existing knowledge to accomplish things to do in a better way and perform new things together. 7.2.1 Characteristics of technological change Let us now have a look at some characteristics of technology change. We can characterise the transition from the old to the new technology by the creation, addition, alteration, and sometimes even obsolescence of tasks, functions and their dependent occupations. We can group these characteristics into three categories, which are: Nature and rate of technology change: In this group, we try to find the common threats for the numerous changes occurring around the globe. We also try to find out the rate or speed at which technology changes are taking place. Impact of technology change: In this group, we take up the effects, either direct or indirect of technology change. Determinants of technology change: In this group, we try to figure out what causes these changes, that is, what are the reasons for the occurrence of technology changes.
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7.2.2 Classification of technological change After characteristics, we will now discuss about the classification of technology change. Some of the technology changes are better noticed than others. For instance, changes that result in new products like Walkman get media headlines, but changes in process equipment that result in an increase in the capacity utilisation from say 65 per cent to 70 per cent hardly find mention even in the firm's own reports. One way to classify the changes is to base it on the extent of its influence across the firm and across the sectors. Thus, we can classify these changes as: Incremental changes: We can define incremental change as the change that takes place very often. For example, incremental changes in the consumer products - Lux, New Lux, International Lux, white colour Lux, pink colour Lux and so on. These changes can even take place in the technology. Entrenching Changes: These are also incremental changes, continuing with relentless zeal and ultimately end up as significant developments.

The Entrenching changes can take the form of: Product mix enlargement: It is derived from two different business strategies whose interaction will produce a common trend as a whole. It also refers to the number of items carried by the company along the product line. For example, Larsen & Toubro (L&T) manufactures dot matrix printers at Mysore. They enlarged their product mix by developing a 24 needle dot matrix printer-model 32/324; heavy duty 9 needle dot matrix printer-model 32NS; 300 CPS 9 needle dot matrix printer with superior paper handling features model Paragon and so on. Modernisation/Expansion: It is the ongoing evolution of operations and IT infrastructure which will help to switch over to a new technology and the adoption of change with a less impact on day to day operations. For example, firms like TISCO increased their capacities by balancing and modernisation. Textile sector added to its capacity by replacing old spindles with high productivity machines.
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Process standardisation: Process standardisation has been going on to improve the manufacturing, essentially to make it more precise in terms of "line definition", defect elimination and super miniaturisation which we will be discussing shortly. System building: System building is concerned with providing support in the field of design, engineering and installation. For example, to run a synthetic fibre plants, one needs auxiliary support like fibre finishes, antioxidants, anti-static agents, delustering agent precision engineering components and tools, metering pumps, valves, seals, and spinnerettys, Entrenching changes do not call for organisational changes. They modify the existing methods but proceed in the same direction. Their benefits tend to accumulate and could result in strategic advantages for the firm. Altering changes: These changes call for a fixing of the system and the structure. They reshape the entire configuration through the introduction of markedly different equipment, raw materials, form of knowledge and physical contexts. For example, consequential use of all major innovations such as locomotive, motor car, aircraft, telegraph, telephone, radio and now automation in offices, design, factory, and so on. They can be in the form of Miniaturisation: It refers to the formation of small scales for mechanical and electronic products and services. From the 60s onwards, electronic technologies have concentrated on super miniaturisation or compressing greater performance into smaller volumes. Today's VLSI has over a million elements. The computer that not long ago occupied a full room now fits in a hand. Miniaturization has cut the internal volume of an average cellular telephone by a factor of 1000 in little more than a decade. Automation: Automation is used in office, factory, bank and coffee shops with an aim to reduce the need for human efforts in the production of goods and services In general automation is the key word used everywhere. Several thousands of pick and place robots are in use in Japan. Automation is no longer planned as a replacement-for costly labour. They have changed the factory layout itself
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Dematerialisation: it is the concept used to reduce the quality of materials required to serve up the economic functions. For example, we can consider the High Tensile Fastener industry, where cold forming was adopted as a new technology. Compared to hot forming traditionally used, cold forming offers several advantages. Most important are the savings in material cost. Lower cost material like plain carbon and low alloy steel can be used in place of heat treated alloy steels. When parts are made by cutting, in hot forming technology, the material wastage is around 80 per cent. With cold forming the material wastage is reduced to 20 per cent. Use of cheaper material and lesser quantity of material for the same product is the trend in all the industries. Intelligence incorporated: The power of softwarisation or building in intelligence and systems is increasingly felt. Microprocessors and memories become unit components in such systems and system functioning is decided by the software changes rather than circuit modifications. Self-healing Digital Signal Processing (DSP) devices were developed at General Electricals Research and Development (R&D) Centre by Dr. Abhijit Chatterjee. These are used in mission critical application such as Satellite. The self healing circuits detect and correct irregular faults caused by loose connection of marginal components, temporary faults caused by electromagnetic interference and permanent faults such as grounded signals. Genetic engineering: It is also called as genetic modification where in the direct manipulation of organisms genetic material takes place which usually do not occur in the normal conditions. The scientists at ET centre at Sabarmati Ashram Gaushala in Gujarat inseminated a Holstein cross-bred cow with semen from an elite bull and using hormonal injection super-ovulated the cow to produce as many as 15 embryos. These embryos were flushed out and implanted into the womb of foster mothers. These foster mothers gave birth to 11 identical calves; a mother of 11 in one year. 7.2.3 Impact of technological change We will now study about the impact of technological change.

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Accelerated technological changes have impacted, not only to turn into out of date organisational strategies, but they also invalidated past, premises and assumptions normally relied upon by the industry. A technology change takes place in the firm level as well as the sector level and the economy as a whole. The question that arises at this point of time is - how are the firms affected by technology change? Technology changes can have different levels of impact, depending on their occurrence, and the structure of organisation and society, as given in the figure 7.1.

Figure 7.1: Impact of Technological Changes

We will now briefly discuss about these impacts. Direct impacts Direct impacts of the technological changes take place very often. By removing obstructs, we can increase the output and modern machines improve labour productivity. Direct impacts of technology change result in direct changes. Let us have a look at some of the direct changes. Increase in productivity: Whenever any technology changes, it results in increasing the productivity of the company using that technology. The requirement of enhanced productivity is the key force behind any technology making our lives easier. Introduction of new products: Technological change results in the introduction of new products to the market or the organisation
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Organisational changes: Technological change results in change in the organisations also. For example, by making redundant or radically altering old functions and generating new ones, technology change can also change the relative importance of functions.

Indirect impacts Another type of impact of technological change is Indirect impact. Though it was commonly agreed that technology changes improve or reduce competitive strengths, there is difficulty in relating them to specific changes, especially incremental changes. Some of the indirect effects will reflect on: The competitive performance occurring between the companies. The way to attract the experts. The company image that incurred the changes. Self Assessment Questions 1. The _____ call for a fixing of the system and the structure. 2. The transition from the old to the new technology is characterised by the creation, addition, alteration and sometimes even obsolescence of tasks, functions and their dependent occupations. (True/False)? 3. Microprocessors and memories become unit components in such systems and system functioning is decided by the software changes rather than ______ 4. Technology change is the process of adding up the _____ to the existing knowledge to accomplish things to do in a better way and perform new things together. Activity 1: Suppose a new web technology has come into the market. It is affecting us, as well as organisations. Prepare a list of impacts of this new technology, which emerged as a change in the old web technology.

7.3 Technology Life Cycle

In the previous section, we discussed about technology change along with its characteristics and impact. In this section, we will learn about the life cycle of technology. The life span of various technologies can be conveniently identified as consisting of four distinct stages, all of which taken together form the
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Technology Life Cycle. Let us have a quick overview of these four stages of technology life cycle. Innovation stage: This stage represents the birth of a new product, material or process resulting from R&D activities. In R&D laboratories, new ideas are generated depending on gaining needs and knowledge factors. Depending on the resource allocation and also the change element, the time taken in the innovation stage as well as in the subsequent stages varies widely. Syndication stage: This stage represents the demonstration (pilot production) and commercialisation of a new technology, such as, product, material or process with potential for immediate utilisation. Many innovations are put on hold in R&D laboratories. Only a very small percentage of these are commercialised. Commercialisation of research outcomes depends on technical as well as non-technical, mostly economic factors. Diffusion stage: This represents the market penetration of a new technology through acceptance of the innovation, by potential users of the technology. But supply and demand side factors jointly influence the rate of diffusion. Substitution stage: This last stage represents the decline in the use and eventual extension of a technology, due to replacement by another technology. Many technical and non-technical factors influence the rate of substitution. The time taken in the substitution stage depends on the market dynamics.

7.4 Technology Transformation

Now, that we are familiar with technology life cycle, we will learn about the technology transformation. Development of a technology in every sector becomes difficult or undesirable, when one expects to build it in the native environment. We can also call it as indigenous technology since it is employed by the native or local inhabitants of the country. Nevertheless, it may be highly desirable that, in carefully selected areas of production, there is a vertical integration with respect to all stages of technological transformation necessary to put a product on the market, starting from the natural resources.
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The technological transformation in the production of goods starts from nature and finally goes to the market. During this transformation, we come across five different stages which are: The first stage is called the collective stage, which includes collective operations such as, extracting, mining and farming. Stage two can be called refining stage, which includes some refining operations such as purification, preservation and metallurgy. Processing can be considered as a third stage where chemical and electrical conversions take place. The fourth stage is the manufacturing stage, which includes all kinds of mechanical conversions and fabrications. The last stage is packaging stage, where things are assembled and packaged, to transmit to the markets. There are considerable variations in the technology content added to the product at each of these five stages. Self Assessment Questions 5. The ______ stage represents the birth of a new product, material or process resulting from R&D activities. 6. The time taken in the substitution stage depends on the market dynamics. (True/False)? 7. The first stage is called the ______ and includes such operations as extracting, mining and farming. 8. The life span of various technologies can be conveniently identified as consisting of distinct stages, all of which taken together form the ______.

7.5 Technology Policies and Policy Instruments

After studying about the technology transformation, we will now study about the technology policy and technology instruments. Technology policy formulation has to logically follow the establishment of a development visualisation or perspective plan. This plan is described, among others, by a desired mix of the goods to be produced and services to be provided in the country in the coming one or two decades. The formulation of a technology policy begins with the establishment of a vision for the country and the corresponding scenario of the mix of goods and
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services to be produced and provided. We must note that the policy framework has to be broad and flexible enough, taking into account the dynamics of change. We can define a technology policy as a comprehensive statement created by the highest policy making body namely the cabinet/parliament in the Government to direct, encourage and control the generation, achievement, development and deployment of technology and science in solving national problems or achieving national objectives set forth in the development vision or perspective plan. The technology policy declaration typically contains several commitments on behalf of the Government and some categorical assurances. The policy, among other things, commits the authority to ensure: Establishment of institutional facilities for relevant knowledge broadcasting, and skill development for stepwise incorporation of imported technology. Provision of services for productive exploitation of research results and generation of indigenous technology. Expansion of support facilities, such as, information and documentation services, consistency and quality control. Satisfactory support to emerging technologies with an aim on future use in production sector. An optimal combination of indigenous and imported technology. Policy instruments We can define policy instruments as the relations between the expressed purpose and the results that are required in practice. There are both direct and indirect policy instruments. The direct ones refer explicitly to technology functions and activities. The indirect ones, even though primarily referring to policies, functions or activities other than technology, have an important indirect effect on Science and Technology (S&T) activities. Different policy instruments are: Policy instruments to build up S&T infrastructure. Policy instruments to regulate technology import. Policy instruments to define the pattern of demand for technology.

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Policy instruments to promote the performance of S&T activities in the enterprises. Policy instruments to support the performance of S&T activities.

Self Assessment Questions 9. Policy instruments are the relations between the expressed purpose and the results that are required in practice. (True/False)? 10. The technology policy declaration typically contains several _____________ on behalf of the Government and some categorical assurances. 11. Technology policy formulation has to logically follow the establishment of a development visualisation or perspective plan. (True/False)? Activity 2: Search on internet, and prepare a list of policy instruments.

7.6 Technological Development Options and Strategies

After having a brief idea on the technology policy and instruments, we will now discuss about the technology development options and strategies. A countrys technology development strategy is determined by identifying the technological needs with potential technological developments in the world and a thorough assessment of available and emerging technologies. Then, the country determines a strategy to import technologies which can be produced locally. Now, there is a universal realisation that unless a concerted attempt is made to build local technological capabilities for absorbing imported technologies, any attempt to develop indigenous technologies encounters enormous difficulties. Even with regard to imported technology, it is essential for a country to be able to select, digest, adapt and improve it for local consumption. All of these efforts justify greater priority and allocation of resources to R&D. A requirement for efficient utilisation of R&D resources is the development of technological infrastructure within the country, including institution building, manpower development, and provision of support facilities and creation of a modern environment.

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Self Assessment Questions 12. The requirement for _____ comes from an explicit commitment to a national goal and the acceptance of technology as an important strategic variable in the development process. 13. The technology policy declaration typically contains several commitments on behalf of the ______ and some categorical assurances 14. A countrys technology development strategy is determined by identifying the technological needs with potential technological developments in the world and a thorough assessment of available and emerging technologies. (True/False)?

7.7 Technology and Socio-Economic Planning

In the previous section, we learnt about technology development options and strategies. In this section, we will discuss about the socio-economic planning and technology. The Successful integration of technological considerations into the socioeconomic planning process is very essential. It is necessary that the national development strategies should include specifically the dimension of technology development. In developed countries, there are adequate pressures for technological considerations within the various sectors of their economies. But in developing countries, integration of technological considerations with economic planning at the highest level is required, in order to achieve technology-oriented development in priority sectors. Let us have a look at a general framework for integrating the technological considerations in the national development planning process, in figure 7.2.

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Figure 7.2: Integration of technological considerations in National Development Planning

The integration of technological aspects should extend significantly beyond simple selection of imported technologies to the formulation of policies and guidelines. They must be directed to generate and promote demand for local technologies and technological capabilities. Moreover, the insertion of technological considerations in socio-economic development planning involves both the explicit introduction of the technological issue at all phases of the planning process and identification of implicit technology policies resulting from the national development plans.

7.8 Diffusion and Growth of Technologies

There is another way of looking at the technology life from the perspective of growth and diffusion.
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Every technology eventually reaches a down turn phase, due to the development of better technologies in terms of performance and/or cost. In other words, technological change occurs through substitution. You can see the process of technological advancement through substitution schematically in Figure 7.3.

Figure 7.3: Sshaped Growth of Technologies

Most technologies follow an S-shaped growth pattern. However, it has also been observed that, although a particular technology eventually reaches a stage where it has limited use, new technologies are developed to achieve further growth with respect to any particular figure of merit which is the index of particular requirement. For example, if one takes the speed of passenger travel as a figure of merit, then Technology T1 is a propeller aircraft, T2 is the turbo prop aircraft and T3 is the jet aircraft. Each of these technologies normally shows an S-shaped improvement over time. Moreover, the overall growth of these successive technologies representing a system of high order, characterised by a successive technologies representing a system of high order, characterised by a succession of discontinuous innovations also exhibits an S-shaped growth pattern. In this pattern:
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The hardware intensive technology diffusion process can be considered to consist of five phases. The first is the incubation phase where many ideas are gradually reduced to one commercial product for introduction into the market. Next is the introduction phase where the applications of the new technology are very slow. Later when the number of applications increases rapidly, the technology is in its growth phase. After sometime its growth reduces and some stability can be observed in the maturity phase. Finally, an improved substitution makes the technology outdated and hence it enters the decline phase. It may be noted; however, that time taken for these different patterns varies widely. The introduction, growth and maturity phases of a technology are also referred to as the three major stages of Technology Life Cycle.

7.8.1 Information technology revolution Let us briefly study about the information technology revolution. Information Technology synthesises the convergence of previously distinct and separate technologies (IT). Information Technology refers to a very wide range of elements which are utilised to create, transfer, transform and convey information through means, irrespective of whether these elements are in the form of equipment or services developments in information technology have already produced vast gains in productivity resulting in counter-inflationary trends in prices as well as substantial improvements in technical performance of many products and services. We shall now discuss some of the major changes brought about by developments in information technology. Changes in products Information technology brings about changes in products by replacing mechanical (e.g. watches), electromechanical (e.g. calculators) or older electrical or electronic (e.g. computers) parts or components, by upgrading traditional products by enhancing their capability. It includes functions involving, for example, logic and decision-making (auto focus in cameras) and even by creating entire new products (e.g., video games).
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The product changes mentioned above have three major consequences. The first is that the value addition is transferred from the manufacture and assembly of parts to the production of the electronic assemblies/sub-assemblies with associated software. The second effect relates to shortening of product life cycles. Product designs of many products get linked to developments in information technology in general and to developments in electronic technology in particular The ability to create, store, retrieve, transfer, transform and convey information/data efficiently and economically imparted to products by developments in information technology allows the products to the integrated into larger systems so that the products are compatible with the larger systems for enhanced capability.

Changes in services We use the term services in its broadest sense as bundles of benefits some of which may be intangible and others tangible, and they may be accompanied by facilitating goods. This sector has the highest growth rate in most economies of the world and has the largest single share of employment in the world Gross Domestic Product (GDP).Information technology is already affecting the productivity of service production as well as increasing their transportability. With a view to understand the changes in a better way, the classification of services made by Baumol is as follows Substitutable personal services: These services also require direct personal contact but it is possible to substitute these services with technological alternatives. For example, guards can be substituted or helped by electronic security and surveillance equipment and domestic servants by a variety of household appliances like washing machines, ovens and mixers. Progressive services: These services require the use of some equipment and also direct personal contact with the receiver of the service. Technological change affects the productivity of the equipment more directly and significantly than the personnel offering the personal contact-based service. For example, air transportation requires the use of the airplane as well as that of the ground and cabin crew; and broadcasting requires the

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use of studio and transmitting equipment as well as the personal contact established by the broadcaster. Explosive services: Services that do not require personal contact belong to this category such as telecommunications. Information technology is bringing about significant productivity increase in these services thereby reducing the unit cost and setting counter inflationary trends in prices. Developments in information technology are also contributing to the generation of new services in this category. For example, facsimile transmission (FAX), Videotext and Electronic Mail. Changes in processes Information technology changes processes in two major ways: it allows the incorporation of higher levels of skills and functions into equipment as in computer controlled machine tools and robots and it increases the flexibility of many processes to achieve economies of scope involving almost continuous production of individualised products. Changes on organisation The changes in products, services and processes discussed above may, in many cases, require new forms of management structure and business organisation. This may be seen happening in many industries but perhaps not fast enough, thus acting as a constraint in the part of other changes. The organisation structure can no more be static but should be capable of absorbing changes fast enough, at least in those organisations where changes in products and processes are occurring very fast, as not to constrain, further changes. To be successful with new technologies, an organisation must be able to innovate and produce competitively. This shows up in the form of compliment organisations where the number of hierarchical levels gets reduced significantly. This also gives rise to higher dependence on task groups, expert committees and other forms of temporary working groups. 7.8.2 Macro effects of technological change After discussing about the major impacts of information technology in the previous section, we would like to revert to technological changes in general and their effects on the economy, its competitiveness and its factor endowments. Let us now describe the major consequences in terms of their macro effects.
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Increasing knowledge intensity of production: The growing importance of knowledge inputs in production is clearly visible in almost all industries. In fact, if we include in knowledge, not only R&D but also design, engineering, advertising, marketing and management, then knowledge input may have already become the primary factor of production displacing capital, labour and land in advanced industrial economies. In many industries, the product life cycle is constantly getting shorter and firms have to spend more and more on R&D to remain at the cutting edge of technology and to exploit any breakthroughs achieved. Greater mismatch of skills: Technological changes have the general effect of replacing labour with capital. As capital equipment with new technologies enters the production process it has two intense effects: The employment level of personnel concerned with the production and distribution of products comes down The skills required to work with the new generation of technology change.

In combination with other economic forces, the first effect continues to reduce the share of employment devoted to the production of goods, while expanding the service sector. The second effect changes the skill-mix of employment more abruptly as certain skills end up having practically no or little economic value. Erosion of competitive advantage of developing countries: The developing countries have traditionally been having the competitive advantage of cheap and abundant labour and some natural resources. However, as described above in the previous sections, the labour component (unskilled and semi-skilled) in many manufacturing activities is falling, giving rise to an erosion of this important competitive advantage.

Self Assessment Questions 15. The Successful integration of technological considerations into the ____ process is very essential

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16. Every technology eventually reaches a ____ phase due to the development of better technologies in terms of performance and/or cost 17. Technological changes have the general effect of replacing labour with capital. (True/False)?

7.9 Summary
We started this unit by giving a brief introduction on the aspects and issues in technology management. We studied about the technology changes and discussed its characteristics that are grouped into nature and impact of technology change, impact of technology change and determinants of technology change. We classified the technology change as incremental, entrenching and altering changes. Further, we discussed that the impact of technology change can be direct or indirect, based on their occurrence and the structure of organisation and society We also learnt that the changeover from old to new technology is characterised by the creation, addition, alteration and at times even undesirability of tasks, functions and their dependent occupations. We also came across the technology life cycle which includes innovation, syndication, diffusion and substitution stages. We further discussed about technology policy and technology instruments, wherein we studied that the technology policy declaration typically contains several commitments on behalf of the Government and some categorical assurances. We also analysed that countrys technology development strategy is determined by discovering the technological requirements with potential technological expansion in the world and a thorough assessment of existing and emerging technologies. In addition, successful integration of technological reflection into the socio-economic planning process is very essential.

7.10 Glossary
Term Commercialisation Skill mix Typology Description To relate methods to business to gain profit. A potential solution to the health service delivery problems. The systematic study of various types that has characteristics in common.

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7.11 Terminal Questions

1. 2. 3. 4. 5. Self 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Explain technological change. Explain technology policies and technology instruments. Briefly describe technological development options and strategies. Briefly explain diffusion and growth of technology. Write about technology transformation. Assessment Questions Altering changes True Circuit modification Knowledge Innovation True Collective stage Technology life cycle True Commitments True Technology policy Government True Socio-economic planning Turn down True

7.12 Answers

Terminal Questions 1. Refer section 7.2 Technological Change. 2. Refer section 7.5 Technology Polices and Technology Instruments. 3. Refer section 7.6 Technology Development Options and Strategies. 4. Refer section 7.8 Diffusion and Growth of Technology 5. Refer section 7.4 Technology Transformation.

7.13 Case Study

The XYZ Company develops and maintains the legacy commercial trust information and hazard management system. Most of the financial services companies have been benefited by XYZ. The company aimed to conform to the web support solutions suitable to the business and technological strategy. In order to become more flexible with business and improve its technology, it wanted to transform its desktop based application into a web based application.
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Challenges: The company intended to build a common reusable technological framework, to alter and restore all legacy applications. It ensured to create minimum modifications to users, which means the alteration to the front-end should bring in only few changes in contrast to the previous framework. It also wanted to bring a common toolset for the web -based solution along with the future enhancement in java (JSP/JSF for presentation), Hibernate (Object Relational Mapping), oracle 10G Database (Database server) and Apache Tomcat Web/Application server for business logic processing. Further, it aimed to accomplish a successful Proof of Concept (POC) that will serve as a roadmap to transfer from legacy applications to web-based solutions. Solutions: The company involved ABC to meet their future requirements. ABC was initially found to assist the clients with offshore development works. The developmental works undertaken by ABC was numerous. It maintained a team to accomplish the tasks involving project mangers, coordinators and technical developers. Initially, it analysed the existing desktop XYZ applications business processes, codes and reports and developed hibernate objects. It designed the architecture for web application, database and technical processes. In order to match with desktop graphical user interface (GUI), it developed web-front using JSP/JSF. It conducted the unit test and system test for its various applications. Ultimately, ABC was able to complete entire java GUI, application and data layer structure at correct time and budget. Further, it assisted its clients in their outstanding works to ensure timely delivery. Questions: 1. Discuss about the ABC Company. 2. Explain the transition process from legacy application to the web based application. References Goran D. Putnik, Knowledge and Technology Management in Virtual Organisations. Shailendra Palvia, Prashant Palvia, Ronald Zigli, The Global Issues of Information Technology Management www.management-issues.com. www.stanford.edu.

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