AMITY SCHOOL OF DISTANCE LEARNING

Post Box No. 503, Sector-44

Noida 201303
TECHNOLOGY MANAGEMENT
Assignment A
a) What is technology? Discuss the role of technology in the productivity growth .

Ans:- Technology is the process by which humans modify nature to meet their needs and wants.
Most people, however, think of technology in terms of its artifacts: computers and software,
aircraft, pesticides, water-treatment plants, birth-control pills, and microwave ovens, to name a
few.
But
technology
is
more
than
these
tangible
products.
Technology includes all of the infrastructure necessary for the design, manufacture, operation,
and repair of technological artifacts, from corporate headquarters and engineering schools to
manufacturing plants and maintenance facilities. The knowledge and processes used to create
and to operate technological artifacts -- engineering know-how, manufacturing expertise, and
various
technical
skills
-are
equally
important
part
of
technology.
Technology is a product of engineering and science, the study of the natural world. Science has
two parts: (1) a body of knowledge that has been accumulated over time and (2) a processscientific inquiry-that generates knowledge about the natural world. Engineering, too, consists of a
body of knowledge-in this case knowledge of the design and creation of human-made productsand a process for solving problems. Science aims to understand the "why" and "how" of nature,
engineering seeks to shape the natural world to meet human needs and wants. Engineering,
therefore, could be called "design under constraint," with science-the laws of nature-being one of
a number of limiting factors engineers must take into account. Other constraints include cost,
reliability, safety, environmental impact, ease of use, available human and material resources,
manufacturability, government regulations, laws, and even politics. In short, technology
necessarily involves science and engineering.
Productivity is one of the most closely watched indicators of long-term economic prospects. Rising productivity is the
key to making possible permanent increases in the standard of living.
Changes in technology are the only source of permanent increases in productivity, but a number of transient factors
can affect both true and "measured" productivity. For example, workers may work harder during periods of high
demand and firms may use their capital assets more intensively by running factories for extra shifts; both factors can
lead measured productivity to be too high relative to actual technological progress. Similarly, during periods of high
demand, productivity can rise because firms take advantage of increasing returns to scale; the authors argue that this
effect is not permanent and should be discounted when measuring long-run technical change. The strength of the
latest economic expansion in the second half of 1990s has led many commentators to argue that the rapid increases in
measured productivity during that period were attributable to bad measurement or to temporary factors of this type.
The expansion that began in the 1990s also is distinguished by a large and long-lasting increase in business
investment. Although labor force employment, labor force participation, and rates of unemployment have been
comparable to what occurred in earlier expansions, the share of investment in information technology rose from a
baseline of roughly 3 percent of GDP in the late 1980s to almost 6 percent of GDP by 1999. The authors suggest that
this unusually rapid rate of investment actually may lead measured productivity growth to understate the underlying

rate of technical change -- because rapid capital investment disrupts firms' ability to produce output, for example
because their workers often are diverted from their normal tasks to install new equipment and learn to use it effectively.
These "adjustment costs" lower output growth, and thus lower measured productivity growth as well.
Controlling for this range of confounding effects, the authors find that the strong performance of productivity growth in
the second half of the 1990s was in fact attributable to accelerating technical change, not to poor measurement or to
temporary factors. They find that in the first half of the 1990s, true technology grew at an annual rate of 1.2 percent, but
this rate rose to 3.1 percent for the 1995-9 period. In fact, the rate of technical change over 1995-9 exceeded even the
measured growth rate of 2.5 percent, because of the temporary damping effect of higher investment on productivity
growth noted above.
In the aggregate, the authors conclude, there is "evidence of a substantial increase in the pace of technological change
in the latter half of the 1990s." More intensive use of capital and labor accounted for some of the increase in measured
productivity in the first half of the 1990s, but that utilization was flat or declining over the second half. Adjustment costs
masked a substantial fraction of the increases in true technology that occurred in the second half of the 1990s.
These results also suggest that productivity increases were distributed widely, if unevenly. Durable manufacturing
experienced the fastest rate of technology growth and its largest acceleration, with increases of over 6 percent per year
during the second half of the 1990s. Technological growth in the private non-manufacturing sector--which includes the
large and important service sector--increased from 0.9 percent to 2.7 percent over the same period. In non-durable
manufacturing, however, technology growth was "very slow," although the authors suggest that this result may arise
from data problems at the end of the sample.

b) Explain the concept of atlas of technology.

Ans:-

2 .a) Why should technology be considered as a strategic resource?

Ans:
1) It proposes that IT be treated as a key strategic resource and describes how the Information Management
(IM) and IT frameworks can support the organization .
2) Information Management is taken to mean the entire process of defining, evaluating, protecting,
distributingand managing information within an organisation.
3) Information Technology is taken to mean all computer and communications-based technologies which
areused to collect, store, manipulate, access and disseminate information of all types and for all purposes.
4) It will be supported by other plans and policies offering more detailed information on the management of
specific IT issues, the management of IT within particular areas and the general use of technology.
5) To support and enable a organization wide Information Technology environment where quality systems,

services and technology can be delivered and supported to meet the diverse needs of students, staff and
the community.
6) organization information is a strategically important resource and all staff are responsible for the accuracy
and currency of information in their domain.

b) Why management of technology at the enterprise level important?

Ans:- Enterprise Content Management (ECM) is a formalized means of organizing

and storing an organization's documents, and other content, that relate to the
organization's processes. The term encompasses strategies, methods, and tools used
throughout the lifecycle of the content.[1]

Enterprise software, also known as enterprise application software (EAS), is software

used in organizations, such as in a business or government,[1] as opposed to software
chosen by individuals (for example, retail software).
Services provided by enterprise software are typically business-oriented tools such as
online shopping and online payment processing, interactive product catalogue, automated
billing systems, security, content management, IT service management, customer
relationship management, resource planning, business intelligence, HR management,
manufacturing, application integration, and forms automation
Enterprise software describes a collection of computer programs with common business
applications, tools for modeling how the entire organization works, and development
tools for building applications unique to the organization.[3] The software is intended to
solve an enterprise-wide problem (rather than a departmental problem) and often written
using an Enterprise Software Architecture.[4] Enterprise level software aims to improve
the enterprise's productivity and efficiency by providing business logic support
functionality.
Capterra broadly defines enterprise software in the following manner:[5]

Targets any type of organization corporations, partnerships, sole

proprietorships, nonprofits, government agencies but does not directly target
consumers.
Targets any industry.
Targets both large and small organizations from Fortune 500 to "mom and
pop" businesses.
Includes function-specific (Accounting, HR, Supply Chain, etc.) and industryspecific (Manufacturing, Retail, Healthcare, etc.) solutions.

Due to the cost of building or buying what is often non-free proprietary software, only
large enterprises attempt to implement such enterprise software that models the entire
business enterprise and is the core IT system of governing the enterprise and the core of
communication within the enterprise.

1. a) What is technology absorption? What are the reasons for the external
acquisition of technology ?
Ans:Most technology in latecomers comes from abroad, in mixture of two forms:
- Embodied: in capital goods, patents, blueprints,designs, models and so on
-Tacit: knowledge that can be transferred only by close interaction and learning by new user
Using technology efficiently thus needs conscious effort by the enterprise & also the system in which it
works (suppliers, customers, technology support, training institutions and so on). Technology flows forms:
Non-contractual: Public knowledge, fairs, conferences, migration, export activity and informal networks
Contractual:
o FDI related: (internalized) transfers within multinationals or joint ventures with MNCs
Role of internalized technology flows
Innovation is highly concentrated, by region, country and enterprise
MNCs lead in innovation: most R&D is performed bylarge firms and most innovative firms are
globalized
MNCs dominate technology flows in all forms, but form depends on nature of technology: newest and
most valuable technology is internalized, others licensed
Role of MNCs in global economy is growing steadily FDI is growing faster than other economic
aggregates: national investment, GDP or exports
MNCs control about 2/3 of world trade.
About 30-40% of this trade is within MNCs, and their role is particularly large in high-tech manufacturing
MNC export activity is taking new forms: global production networks, with very fine vertical
specialization by function/component between countries
Local companies are also involved in global production networks, but only if they have very high levels
of technological capabilities and form strong ties with MNCs to access and absorb their technological
know-how and management skills
What this means for:
Developing & Transition economies:

FDI is the most efficient way to access foreign technology if countries want
New, fast-changing proprietary technologies not available at arms length
Rapid access to new technology and subsequent upgrading, without local effort
Non-core components of operation (i.e. management, marketing, finance etc)
Access to MNC foreign markets, particularly to global production networks

b) What is technology intelligence capability?

Ans:- The concept of Technology Intelligence plays an important role here, referring to:
"...the activity that enables companies to identify the technological opportunities and
threats that could affect the future growth and survival of their business. It aims to
capture and disseminate the technological information needed for strategic planning and
decision-making. As technology life cycles shorten and business becomes more
globalized, having effective Technology Intelligence capabilities is becoming increasingly
important."
We're moving from the "Information Age" to the "Intelligence Age." The former was all
about building the database -- i.e. the Web and its vast amount of content -- but today
we've progressed to creating contextual access to the right pieces of information to derive
intelligence, meaning and insight

4. A) Explain the term world class manufacturing?

Ans:-

World Class Manufacturing is a different set of concepts, principles, policies and

techniques for managing and operating a manufacturing company. It is driven by the results
achieved by the Japanese manufacturing resurgence following World War II, and adapts many of
the ideas used by the Japanese in automotive, electronics and steel companies to gain a
competitive edge. It primarily focuses on continual improvement in quality, cost, lead time,
flexibility and customer service.
World Class Manufacturing is a process-driven approach where implementations usually involve
the following philosophies and techniques:

Make-to-order
Streamlined flow
Small lot sizes
Families of parts
Doing it right the first time
Cellular manufacturing
Total preventive maintenance
Quick changeover
Zero Defects
Just-in-time
Variability reduction
High employee involvement
Cross functional teams
Multi-skilled employees
Visual signaling
Statistical process control

Companies engaging in World Class Manufacturing strategies focus on improving operations,

strive to eliminate waste and create lean organizations. This often results in higher productivity.
But these companies also focus on speed of total throughput from order capture through delivery

setting new standards for delivery without the heavy dependence on inventory. Sequential
methods of performing work are being replaced with concurrent methods to compress time, and
functional and hierarchical divisions of duties are being replaced by team-driven activities

b) What is JIT? Discuss the basic elements that constitute JIT.

Ans:Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on
investment by reducing in-process inventory and associated carrying costs. Just In Time
production method is also called the Toyota Production System. To meet JIT objectives,
the process relies on signals or Kanban between different points in the process, which
tell production when to make the next part. Kanban are usually 'tickets' but can be simple
visual signals, such as the presence or absence of a part on a shelf. Implemented
correctly, JIT can improve a manufacturing organization's return on investment, quality,
and efficiency.
Quick notice that stock depletion requires personnel to order new stock is critical to the
inventory reduction at the center of JIT. This saves warehouse space and costs. However,
the complete mechanism for making this work is often misunderstood.
For instance, its effective application cannot be independent of other key components of a
lean manufacturing system or it can "...end up with the opposite of the desired result." [1]
In recent years manufacturers have continued to try to hone forecasting methods (such as
applying a trailing 13 week average as a better predictor for JIT planning, [2] however
some research demonstrates that basing JIT on the presumption of stability is inherently
flawed.

5. A) Differentiate the terms invention and innovation.

Ans:- An invention is a new composition, device, or process. An invention may be derived from a
pre-existing model or idea, or it could be independently conceived in which case it may be a radical
breakthrough. In addition, there is cultural invention, which is an innovative set of useful social
behaviors adopted by people and passed on to others. [1] Inventions often extend the boundaries of
human knowledge or experience. An invention that is novel and not obvious to others skilled in the
same field may be able to obtain the legal protection of a patent. In economic theory, inventions
are one of the chief examples of "positive externalities", a beneficial side-effect that falls on those
outside a transaction or activity. One of the central concepts of economics is that externalities
should be internalizedunless some of the benefits of this positive externality can be captured by
the parties, the parties will be under-rewarded for their inventions, and systematic under-rewarding
will lead to under-investment in activities that lead to inventions. The patent system captures those

positive externalities for the inventor or other patent owner, so that the economy as a whole will
invest a more-closely-optimum amount of resources in the process of invention.
Innovation comes from the Latin innovtus which means to renew. Innovation can therefore be
seen as the process that renews something that exists and not, as is commonly assumed, the
introduction of something new.
For the renewal to take place it is necessary for people to change the way they make decisions,
they must choose to do things differently, make choices outside of their norm. Schumpeter c.s.
(~1930) seems to have stated that innovation changes the values onto which the system is based.
So when people change their value (system) the old (economic) system will tumble over to make
room for the new one. When that happens innovation has occurred. So innovation must be seen as
something that does not something that is
On a lower level, innovation can be seen as a change in the thought process for doing something,
or the useful application of new inventions or discoveries. [1] It may refer to incremental, emergent,
or radical and revolutionary changes in thinking, products, processes, or organizations. Following
Schumpeter (1934), contributors to the scholarly literature on innovation typically distinguish
between invention, an idea made manifest, and innovation, ideas applied successfully in practice.
In many fields, such as the arts, economics and government policy, something new must be
substantially different to be innovative. In economics the change must increase value, customer
value, or producer value. The goal of invention is positive change, to make someone or something
better. Invention and introduction of it that leads to increased productivity is the fundamental source
of increasing wealth in an economy.
Innovation is an important topic in the study of economics, business, entrepreneurship, design,
technology, sociology, and engineering. Colloquially, the word "innovation" is often synonymous
with the output of the process. However, economists tend to focus on the process itself, from the
origination of an idea to its transformation into something useful, to its implementation; and on the
system within which the process of innovation unfolds. Since innovation is also considered a major
driver of the economy, especially when it leads to new product categories or increasing productivity,
the factors that lead to innovation are also considered to be critical to policy makers. In particular,
followers of innovation economics stress using public policy to spur innovation and growth.
Those who are directly responsible for application of inventions are often called pioneers in their
field, whether they are individuals or organizations. When pioneers are followed by many other the
dominant value system may be replaced by the new one. When this happens innovation has
occurred a posteriori.

is the embodiment of something new. While both invention and innovation have "uniqueness"
implications, innovation is related to acceptance in society, profitability and market performance
expectation.

An improvement on an existing form or embodiment, composition or processes might be an

invention, an innovation, both or neither if it is not substantial enough. According to certain
business literature, an idea, a change or an improvement is only an innovation when it is put to use
and effectively causes a social or commercial reorganization.
In business, innovation can be easily distinguished from invention. Invention is the conversion of
cash into ideas. Innovation is the conversion of ideas into cash. This is best described by
comparing Thomas Edison with Nikola Tesla. Thomas Edison was an innovator because he made
money from his ideas. Nikola Tesla was an inventor. Tesla spent money to create his inventions but
was unable to monetize them. Innovators produce, market and profit from their innovations.
Inventors may or may not profit from their work.

b) Why organizations resort to technology transfer? What are the issues

that encompass technology transfer?
Ans:- Technology transfer is the process of sharing of skills, knowledge,
technologies, methods of manufacturing, samples of manufacturing
and facilities among governments and other institutions to ensure that
scientific and technological developments are accessible to a wider
range of users who can then further develop and exploit the
technology into new products, processes, applications, materials or
services. It is closely related to (and may arguably be considered a
subset of) knowledge transfer.
Technology brokers are people who discovered how to bridge the
disparate worlds and apply scientific concepts or processes to new
situations or circumstances.[1] Related terms, used almost
synonymously, include "technology valorisation" and "technology
commercialisation". While conceptually the practice has been utilized
for many years (in ancient times, Archimedes was notable for applying
science to practical problems), the present-day volume of research,
combined with high-profile failures at Xerox PARC and elsewhere, has
led to a focus on the process itself.
Issues in Technology Transfer :For several years the author was involved in a research project at a major aerospace
corporation. The project studied techniques for program synthesis, automatic code
generation, very high-level languages, graphical design tools and similar topics. The goal
was to simplify specification of software systems and to make code synthesis practical by
working in a restricted domain.

As in most industrial research laboratories there was the pressure to show practical
relevance of the work. To that end, the project developed a number of prototype tools that
were considered practical .
But academic standards are not good enough to be accepted by those responsible for real
products. Several attempts to transition some of the lab's technology to product divisions
were met with universal rejection. There were several reasons for this rejection, most of
them non-technical in nature.

Academics tend to develop tools in the abstract, i.e., they solve an intellectually
interesting problem without regard to actual applications. When scientists talk
about concepts such as ``completeness of decision procedures'' of
``expressiveness of languages,'' their value will not be apparent to decision
makers. Technology must be sold by describing the concrete problems being
solved, how much time is saved, and how quality is improved. The technology is
irrelevant, it is its impact that matters.
People in charge of software projects are extremely concerned about schedule
risk. Even if a new tool promises great time savings, it will be rejected if there is
even minimal risk that it might negatively impact the schedule. Large potential
time savings are often not realistic due to a steep learning curve.
Researchers tend to build tools in isolation without consideration of the
environment and the work process of software production. Tools that require
changes in an established software development process are difficult to sell.
An important reason for rejection is the perceived and often real lack of
maintenance and support for systems that come out of research labs.
One frequent objection to the use of machine generated code was readability.
From the academic point of view, machine generated Ada code is no different
than compiler generated assembly code. But the programmer in the field will be
skeptical of the new technology and will want to inspect and understand the code.
As a consequence significant effort was spent on generating human readable,
commented code.

Y TRANSFERBL TECHNOLOGY FER

PROBLEMS
Many reasons can be cited for lack of teAssignment

1.a) What is technovation? Explain the process of tehnovation.

Ans:Technovation

In today's competitive business environment, entrepreneurs must consider how to

distinguish their business from all the others. Those businesses that don't have a
distinction often languish in price wars and then go out of business. One way to set your
business apart in todays high-tech world is through technovation.
Starting new companies creates dynamism and affluence in a society. Technology
Innovation contributes to the development of both society and the new company by

providing capital, expertise and networks for innovative entrepreneurs.

An innovation is a value addition that is a novelty in the market and is commercially
viable. Customers recognize the utility and are therefore prepared to pay for such value.
An innovative product is one that takes a leap in the cost-benefit analysis in the area of
endeavor by an entrepreneur.
What is Technovation?
Technovation is an innovation that is technologically advanced. Innovating a new
technology involves risking capital. If you undertake a project without a sufficient
supporting infrastructure, you don't know how long it will take, how much it will cost,
how much market demand there will be, or how soon.
Innovative project concepts might be high-tech products, new production methods, new
inventions with great potential, new services, or perhaps a knowledge-based business
concept. It is vital that the project has strong commercial potential, that it is a vehicle for
change and the creation of wealth, and that it is ethically sound and sustainable.
The trick is to be innovative and profitable, and at the same time technologically
advanced.
Criteria for evaluating a development effort:
List and quantify ways in which the user's experience with the task will cause
improvements with respect to:
* costs
* benefits
* technology
You could say that all innovation is successful by definition because any increase in a
benefits-to-costs ratio is a success, but the innovator has to be careful if he/she wants to
make a profit because of the amount of money that often has to be spent on technology.
Constantly ask questions like - What other innovations have made your product
possible, and when did they show up? What other innovations are still needed for your
product to become practical?

b) What are the principles of technology fusion?

2. A) Explain the term intellectual property right?
Intellectual property (IP) is a term referring to a number of distinct types of
creations of the mind for which property rights are recognizedand the corresponding
fields of law.[1] Under intellectual property law, owners are granted certain exclusive
rights to a variety of intangible assets, such as musical, literary, and artistic works;
discoveries and inventions; and words, phrases, symbols, and designs. Common types of
intellectual property include copyrights, trademarks, patents, industrial design rights and
trade secrets in some jurisdictions.
Ans:-

Although many of the legal principles governing intellectual property have evolved over
centuries, it was not until the 19th century that the term intellectual property began to be

used, and not until the late 20th century that it became commonplace in the United States.
[2]
The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as
the origin of copyright and patent law respectively.
b) What is the role of WTO in protecting IPR?
3.

Write short notes

a) Concurrent engineering

The concurrent engineering method is still a relatively new design management

system, but has had the opportunity to mature in recent years to become a well-defined
systems approach towards optimizing engineering design cycles.[1] Because of this,
concurrent engineering has gathered much attention from industry and has been
implemented in a multitude of companies, organizations and universities, most notably in
the aerospace industry.
Ans:-

The basic premise for concurrent engineering revolves around two concepts. The first is
the idea that all elements of a products life-cycle, from functionality, producibility,
assembly, testability, maintenance issues, environmental impact and finally disposal and
recycling, should be taken into careful consideration in the early design phases.[2]
The second concept is that the preceding design activities should all be occurring at the
same time, or concurrently. The overall goal being that the concurrent nature of these
processes significantly increases productivity and product quality, aspects that are
obviously important in today's fast-paced market.[3] This philosophy is key to the success
of concurrent engineering because it allows for errors and redesigns to be discovered
early in the design process when the project is still in a more abstract and possibly digital
realm. By locating and fixing these issues early, the design team can avoid what often
become costly errors as the project moves to more complicated computational models
and eventually into the physical realm. [4]
b) Core competency
Ans:

core competency is a specific factor that a business sees as being central to the way it, or
its employees, works. It fulfills two key criteria:
1. It is not easy for competitors to imitate
2. It can be leveraged widely to many products and markets.
A core competency can take various forms, including technical/subject matter know-how,
a reliable process and/or close relationships with customers and suppliers.[1] It may also
include product development or culture, such as employee dedication.

Core competencies are particular strengths relative to other organizations in the industry
which provide the fundamental basis for the provision of added value. Core competencies
are the collective learning in organizations, and involve how to coordinate diverse
production skills and integrate multiple streams of technologies. It is communication, an
involvement and a deep commitment to working across organizational boundaries. Few
companies are likely to build world leadership in more than five or six fundamental
competencies.
c) Appropriate technology
Ans:- Appropriate technology is being mindful of what we're doing and aware of the consequences. Appropriate
technology works from the bottom up; it is not an overlay to the situation; it is a genuine grassroots solution to
economic needs. In the Industrial World small businesses account for more technological advances in their areas of
expertise than government supported researchers or research departments in massive corporations. Third World
craftspeople, farmers and other villagers invent, create, and contribute to the technological process of their area much
more than outside "experts" do.
The idea of appropriate technology is that local people, struggling on a daily basis with their needs, understand those
needs better than anyone and can therefore suggest or in fact, invent the technological innovations necessary to meet
those needs. Not only that, local people can prioritize solutions to save precious funding and labor. Planners and those
who want to help others grapple with food and energy problems are wise to include local people in the early stages of
project vision. The result is consistency in the carry-through of the work by locals and continued maintenance and
interest in the well-being of the project over the long haul.
While grassroots activity is vital in developing appropriate technology, a larger view is definitely called for in
understanding how organizations can combine funds and human resources to develop and market technologies.
Communication among international aid agencies can greatly enhance efficient use of funds for appropriate technology
and a reduction of the "reinventing the wheel" syndrome.
The definition of "Appropriate Technology" changes with each situation. It's not appropriate to install solar modules in a
place with very little sun, a wind generator in a place with little or no wind. What's appropriate in a large urban location
is very different from what's appropriate in a remote, isolated environment. One quality that remains the same,
however, is taking care of things. In each situaton, the essence of AT remains appreciating, helping, caring. Planned
obsolescence, throw-away products, poor quality all go against intelligent decision-making and the true spirit of
appropriate technology

4. Case study: Please read the case study given below and answer questions given at the
end.
Case Study
Managing Technology and R&D
ESAB Indian limited, Bombay is a leading manufacturer of welding consumables and
equipment. ESAB India Limited is the Indian associate of ESAB AB, the Swedish
multinational and the worlds largest company in welding and cutting, with production centers,
core representation in most of the countries.
ESAB India, a Public Limited Company with paid up capital of Rs. 50 million, employs 206
people, including 35 S&T personnel, at its Kalwa unit which is the major manufacturing

facility. It had a turnover of above Rs. 30 crores during 1991-92. It is licensed to make 1250
nos. of welding and cutting equipment and 24020 km of welding electrodes.
The in-house R&D unit of the company employs about 10 persons including S&T personnel
(scientists and engineers) and is headed by a well qualified chief at the level of General
Manager directly reporting to the Managing Director. The R&D unit is a separate entity
situated within the company premises occupying a floor area of about 300 sq. m. but closely
interacts with other functional groups. It has well equipped laboratories and pilot plant
facilities for development purposes. The annual R&D expenditure was about Rs. 24 lakhs
during 1991-92, i.e. about 0.8% of the annual turnover. A good technical library having books,
journals and periodicals in the field of manufacturing is maintained. The company also
encourages close interaction with the relevant R&D organizations and academic institutions.
R&D personnel participate in technical seminars and meetings in India and abroad. A
computerized information facility has also been built up.
The R&D unit of the ESAB India closely interacts from time to time with the principals in
Sweden and at other places on developmental needs and receives relevant technical
information which is very useful for R&D in India. In fact, there are some products/areas
which have specifically been developed to meet the needs of India and could be relevant to
other developing countries as well, but are not covered in the product range of the principals
abroad. Most of the developments relate to highly specific applications such as for oil, power,
underwater uses and are import substitutes. There are immense export possibilities through
constant development efforts to meet the specific requirements of other countries.
In the early eighties ESAB realized that to survive in the competitive world of welding it had to
become the biggest company and a leader in technology. As a route to achieve this objective,
ESAB acquired a number of companies active in the field of welding and cutting. It acquired
the European welding activities of Philips electrical and electronic group, based in the
Netherlands in 1985. Subsequently, the welding business unit of Philips India Limited also
became a part of ESAB Group in July 1988. This unit was not doing well commercially. The
turnover of ESAB (India) almost tripled in three years due to active marketing efforts. In May,
1991 ESAB India Limited acquired the welding business of Indian Oxygen Limited (IOL),
Calcutta. The turnover then approached Rs. 100 crore. The new Indian organization now has
four major manufacturing centers and has sales outlets in all parts of the sub-continent.
TECHNOLOGY AND STRATEGY POLICY
ESABs objective was to become a world leader in welding technology. This was to be
achieved by carrying in-house research and by absorbing the technology of newly acquired
companies. ESAB now has well established R&D facilities in a number of countries, including
India. The R&D unit of ESAB is a DSIR recognized unit and works presently mainly for the
Indian market. In setting the objective of ESAB India, the top management of the parent
company takes into account the in-house capability and potential for further advancement
through imported technology. All possible support to R&D is extended by the management to
retain the leadership in its field.
The companys commitment to welding technology and product development is evident from
the goal of the organization which is to provide technical solutions to the customers. Here the
organization insists on the important distinction that is to provide solutions and does not sell
products.
In a world where technology dominates there are new opportunities for continuous
development. The development of low moisture absorption welding electrodes is a good
example. The offshore structures of the North Sea required welding consumables
(electrodes) which would produce welded fabrication free from structural failure in a very
harsh working environment. The cost of such failures could be tremendous compared to the
cost of welding consumables. Typically, welding consumables constitute less than 1.5% of the

total cost of the structure. The cost of failure of the structures is frequently many times the
cost of the structure itself.
The early objective was to have extra low hydrogen in the weld metal. For this purpose
special low hydrogen electrodes were made and then re-packed just before use. This costly
process could be eliminated by packing the electrodes in vacuum sealed packages (Vac Pac)
at a relatively high cost. Efforts at developing the low cost devices for packing continued. The
low moisture absorption electrodes have now been produced which reduce the cost of the
solution of the welding problem. At the same time the product was further developed to give
improved welding characteristics in order to improve manufacturability and to reduce cost.
Expenses incurred on product and process development have to be recovered from sales so
that R&D process for continuous improvement can go on. The key words which characterize
ESABs commitment to the continuous development of processes and system are:
The productivity of the welder and fabricator
The quality of weld deposit
The working environment
PRODUCTIVITY
During the last decade and a half, a shift from the manual welding process to semi and fully
automatic welding processes has taken place in most of the developed countries, mainly to
achieve higher productivity and lower manufacturing cost. Today in these markets more than
half of the total production of weld metal is derived from continuous solid and flux cored wires
processes. It, therefore, became necessary to develop consumables to meet this challenge.
Many new automatic consumables have been added.
There was a parallel development of new welding machines to match the automatic welding
processes (including welding robots). The packing standards were also changed to suit
automatic welding consumables for uninterrupted supply of high-quality wire to the robotic
processes (ESABs Marathon Pac).
QUALITY
Products are services which do not meet the quality requirements of the customers and do
not stand the test of time. Today quality does not remain within the boundaries of the product
alone. Total quality is the need of the hour. Introduction of a Total Quality Program is the
ESAB group is a step in this direction. While finalizing the requirement for a new product the
quality of the weld is inbuilt in the specification. Welding is not an end in itself. It is a process
to produce a structure. The most successful welds produce the base component or
fabrication at the lowest level.
ENVIRONMENT
The cost and quality of the weld very much depend on the welder who in turn is profoundly
influenced by the working environment. The welder will produce better welds in a friendly
environment or with electrodes with better welding characteristics, a single point control
(synergic control) of the welding machines and reduce fume. Controlling the toxicity limit of
the welding fume shows concern towards the health of the welder whilst at the same time
improving the effectiveness. ESABs R&D is in the forefront of action to make the
environment friendlier to the welder.
As can be seen, developments in welding concern while process and are realized by
improving existing products and introducing new technologies. Attention will, in future, focus
increasingly on issues relating to the internal and external environment and economy.
Combining ESABs product, process research and development with the customers

production experience often lead to collaborative ventures to improve economy, quality, and
productivity and safety standards in the latter works.
The R&D department of ESAB India is the focal point of all technical activities of ESAB in
India. It also acts as the interface between the principals in Sweden and the Indian
organization. It undertakes research and development activities related to new products and
technologies for meeting the needs of the growing Indian market. Emphasis is on continuous
local technological development, absorption and up-gradation of imported technologies for all
the welding activities.
The department is manned by a group of highly qualified persons who have the experience in
other line functions so that their perception of the problem is realistic rather than theoretical.
Members have had previous experience in quality control, production or marketing before
they joined the R&D group. They are capable of understanding the real problems or the
requirement of new products as envisaged by the customer. All members of the department
help each other to keep expectation within feasible limits.
Technology and product is market lead in India. For instance, in a specific nuclear project the
requirements were very stringent and critical. The required product was developed in two
phases. In the beginning, the technical requirements were first met and subsequently the cost
was reduced. Initially, market demand was not large but with time it expanded and now they
have a proprietary product with large demand.
Many such market-led developments have been successfully carried out in India. This has
helped ESAB earn the name of a technology based company. The R&D department
accordingly has established its importance in the organization and has representation in all
decisions of the group management pertaining to technology and product management.
METHODOLOGY
If the product development is market-led, the marketing department has to present its
requirements in regard to future market demand, possible new businesses or new
applications. Once the need has been agreed the R&D department attempts to ascertain
whether the product is available within the ESAB group. If it is, the principals abroad are
contracted for details of formulation and production data. In the event that a group product
cannot be identified, then the R&D department of the principals combines with their Indian
counterparts for a program for development. After establishing the basic formulation and
production data, work on adaptation to Indian condition starts. This adaptation is necessary
because of variations in the raw materials and production plant.
The formulations are broken into their basic chemical constituents and on them the chemical
composition of the indigenous raw materials is superimposed. Imbalances are suitably
adjusted to provide the correct weld metal analysis and welding characteristics of the
electrode. Theoretical knowledge and practical experience are essential for doing this. A
tentative formula is obtained which is refined through experiment to give the final desired
product. The new formulation is first tried on pilot plant and subsequently transferred to
production. For successful development and commercialization of a product, marketing and
sales, materials management and production departments are all involved. The R&D
personnel remain involved till the product is established commercially. R&D must also be
involved in manufacturing technology to meet the companys own demand for improved
productivity, quality or to increase manufacturing flexibility.
DIFFICULTIES ENCOUNTERED
What has been discussed above works if the situation is ideal? Reality is often different.
Some of the major difficulties encountered in actual practice relate to:
Changes in specifications during the development period
Failure to achieve the required result by the R&D department

Unduly long response time of development

Prohibitive cost of product

In the course of development, the customers need may change. If such a change is not very
major, it may only cause a small delay but in case of major changes, it may mean
development in an entirely new direction. Alternatively, the specifications may sometimes be
too stringent that it may not be possible to manufacture a new product within the constraints
and projected cost. It is also possible that the targets laid down in the guidelines received
from the principals cannot be met because of non-availability of specific raw materials at
reasonable prices. These are all major handicaps in developing the desired product.
Undue delay in developing a product may result in losing market opportunity for which it was
intended. Often development may use costly materials and the finished available product may
become more expensive than an alternative product in the market resulting in failure to
develop a commercially viable product. All problems and difficulties described above combine
into a single problemloading the interest of the customer. These difficulties can arise in
market-led development. However, if development is production-led, many new and good
developments never reach the market because they do not satisfy a recognized customer
need. In relation to development activity, the following observations of general nature can be
made:
1. The top management must commit itself (through the company objectives) to render
active support of development of product and technology. Often in times, expenses
incurred to development come under the microscope. The commitment of the top
management will ensure that in the long-term, investment in R&D activities will pay off
handsomely.
2. Development is not a single departments job. Active involvement from marketing and
sales, production and materials management is essential to make the new product reach
the customer at right time and at the right cost.
3. Cost of the product plays an important role in the development efforts. This point must be
kept in mind from the very beginning. A developer must be conversant with the cost
structure of the product.
4. All industrial R&D activities must have commercialization of the development as its goal.
Any development will be termed a failure if it does not improve the bottom line of the
organization.
5. Many difficulties may be faced during the R&D process, so R&D is assured of a quick and
easy success.
6. Guidelines and directions from the principals abroad are only part of the story. Local R&D
is important to satisfy local needs and constraints. Appropriate technology is the need for
all R&D effort while adapting products and technologies from abroad.
7. ESAB Indias role in future will be to develop the existing techniques and to participate in
the research and development of new techniques with a view to maintain its leading
position in the field of welding and cutting in the 21 st century.
8.
OPPORTUNITIES OF ESAB INDIA
In the international scenario the technological developments are taking place at a very rapid
pace. India with its wealth of technical expertise should adopt overseas technological
advances for speedy commercial implementation and benefit from them. Such adaptation will
hasten the process of industrialization. Indian R&D efforts should be directed initially towards
meeting the local needs and overcoming local constraints by suitable adaptation. But finally
we must aim to be a world competitive supplier of welding and cutting solutions.
QUESTIONS
1. What strategic route ESAB AB followed to become technology leader in the world? What
could be the reasons behind such a route?

2. What efforts were made by ESAB AB and ESAB India in the field of product
development?
3. How is the R&D function at ESAB India organized? Critically examine.
4. What difficulties ESAB has experienced in relation to product development efforts? What
would you suggest to overcome these difficulties? What opportunities are open to ESAB
India? How best can it avail of those opportunities?

Assignment C
(Objective Questions)
Tick Marks () the most appropriate answer
1. Which of the following is NOT a part of Techno ware
A) Powered equipment
B) Automated machines
C) Computerized machines
D) Operating ability
2. Info ware consists of all the following EXCEPT
A) Describing facts
B) Familiarizing facts
C) Repairing abilities
D) Utilizing facts
3. Which of the following is NOT very important in managing technology
A) Production process
B) Product & process design
C) Information systems
D) Compensation packages
4. Technology management is concerned with all EXCEPT
A) Incremental innovation in existing technologies
B) Development of new technology
C) Combining older technologies
D) Procurement of machines similar to the one existing
5. An R& D centre is to be set up when
A) Technology is a competing strategy
B) The company uses reverse engineering
C) Subsidy exists for setting up R&D units
D) A Ph. D qualified person is to be promoted as a unit head
6. Which of the following depict the central role of a corporate R&D
A) Development of relevant breakthrough technology
B) Continuous process and product improvement
C) Day to day problem solving
D) Engage in basic research
7. All of the following are determinants of productivity except
A) Effective control over cost and quality
B) Rationalization of work flow

C) Training hours spent on staff

D) Optimal scheduling of work and material handling
8. A term used to indicate a good match between the technology utilized and the
resources required for its optimal use
A) New technology
B) Emerging technology
C) Appropriate technology
D) Codified technology
9. Reverse engineering is also known as
A) Experience and design looping
B) Design to cost
C) Reengineering
D) Zero defect production
10. Productivity techniques used to reduce costs of one or more of production inputs by
replacing with the cheaper available substitutes is known as
A) Group technology
B) TQM
C) Factor substitution
D) Six Sigma
11. All of the following are characteristics of high technology EXCEPT
A) A fast rate of growth
B) High ratio of R&D expenditure to sales
C) Very limited market
D) Less educated employees
12. All are reasons for external acquisition of technology EXCEPT
A) Firm lets other firms to take big risk before participation
B) Technology already developed saves time and cost
C) Technology that can be handled with existing machines and equipment
D) Doesnt require recruitment of skilled labor
13. Technology that proprietary to a firm is known as
A) Basic technology
B) Generic technology
C) Key technology
D) Appropriate technology
14. Which is NOT an issue in acquisition and absorption of technology from external
sources
A) Difficult to assess the relative merits of technologies which are complex
B) Adapting and modifying technologies to local conditions
C) Negotiating technology license
D) Arranging payment for the technology
15. All the following are technological intelligence capability EXCEPT
A) Ability to monitor worldwide technological trends
B) Ability to source technology
C) Ability to get skilled labor
D) Ability to mange acquired technology
16. A technology for which research has progressed far enough to indicate its success is
known as

A) High technology
B) Emerging technology
C) Appropriate technology
D) Codified technology
17. All of the following are basic constituents of JIT EXCEPT
A) Simplification of product design
B) Improvement of plant layout design based on flow
C) Immediate payment to suppliers
C) Making vendors partner to the production process
18. Which of the following is not a characteristic of CIM
A) Compatible hardware and software
B) Paperless office and integrated business system
C) Flexibility of operations and low cost of implementation
D) Use of CNC machines
19. Gauravs role in his organization is to scan the market and bring new technologies to
the organization. His role can be identified as
A) Project manager
B) Sponsor
C) Technological gatekeeper
D) Entrepreneur
20. The development of new hybrid technologies by combining the capabilities of existing
technologies is called
A) Technovation
B) Technology fusion
C) Technology intelligence
D) Technology push
21. A necessary condition for technological fusion is
A) Technological diversification
B) Technological determinism
C) Technology codification
D) Technology integration
22. All of the following are part of business alliances in use in Japan EXCEPT
A) Exchange of expertise by companies in different fields
B) Merger and acquisition of companies
C) Alliance among large, medium and small companies
D) International alliances among industries in developed countries
23. Core competence of Sony is
A) Capacity to miniaturize
B) Optical media expertise
C) Heavy R&D expenditure
D) JIT production
24. Japanese companies focus on ___________ rather than result
A) People
B) Processes
C) Quality
D) Plans
25. Which of the following is NOT a conducive atmosphere for innovation

A)
B)
C)
D)

An open decentralized organizational structure

Ensure that new ideas are not easily killed
Minimize administrative interference
Tight deadlines

26. Two basic objectives of a national policy relate to the promotion of productivity,
innovation and competition on one hand and the facilitation of the firms _________
on the other
A) Competitive capabilities
B) Financial strength
C) Autonomy
D) Labor unions
27. Following are reasons for making inventions EXCEPT
A) Personal satisfaction
B) Solving problems faced in everyday life
C) Being recognized by others
D) Zeal for charity
28. Neighboring rights does not include
A) The rights of performing artists in their performance
B) The rights of producers of Phonograms in their phonograms
C) The rights of broadcasting organization in their radio television broadcast
D) The rights of authors in their books
29. The process of ___________ threatens the developing world by appropriating the
collective knowledge of the society into proprietary knowledge for the commercial
profit of a few
A) Liberalization
B) Globalization
C) Privatization
D) Commercialization
30. Which is not a planned channel for technology transfer
A) Reverse engineering
B) Joint venture
C) Franchise
D) Foreign Direct Investment
31. The six step ASSETS process does not contain
A) Asses current situation
B) Specify technology strategy
C) Codify technology
D) Select technology portfolio
32. Traditionally intellectual property is divided into two groups. If one is Copyrights,
which is the other
A) Agricultural Property rights
B) Real estate rights
C) Industrial Property rights
D) Self expression rights
33. WIPO convention covers all of the following under IPR except
A) Performances of performing artists, phonograms and broadcasts
B) Scientific discoveries
C) Trademarks, service marks, and commercial names and designations

D) Agricultural patent rights

34. A form of networking of institutions and activities for inducting high technologies
A) Technology Park
B) Technology associations
C) Technology groups
D) Technology centers
35. The act of producing or selling a product containing an intentional and calculated
reproduction of a genuine trademark is called
A) Counterfeiting
B) Cyber squatting
C) Infringement
D) Copyrights violation
36. When a producer has authorization from an IPR holder to produce goods but
exceeds the quantity, the excess goods are
A) Illegitimate goods
B) Overrun goods
C) Grey market goods
D) Black goods
37. The term used to protect the rights of an unpublished book
A) Copyright
B) Trademark
C) Service mark
D) Publishing rights
38. Area not covered by TRIPS agreement
A) Trademarks and service marks
B) Industrial designs
C) Geographical indications
D) Layout design of manufacturing plans
39. MFM treatment under TRIPS means
A) Mild and fast foreign negotiations with MNCs
B) Treating everyone equally
C) Special treatment to some nations
D) Increasing reciprocity
40. Darjeeling tea has protected its intellectual property rights based on
A) Trademark
B) Service mark
C) Geographical indications
D) Patents