Management of Technology

Lecture Notes for Business Introduction

By Fahmy Radhi


Management of Technology and
Innovation
Management of
Technology (MOT) is
an interdisciplinary
field study that
integrates science,
engineering and
management
knowledge

MOT Levels

Macro level a field of knowledge concerned with
the setting and implementation of policies to deal with
technological development and utilization of
technology on society, organization and individual

Micro Level an interdisciplinary field concerned
with the planning, development and implementation
of technological capabilities to shape and accomplish
the operational and strategic objectives of
organization in the creation and sustainability of
competitive enterprises

Technology Definitions
Technology defines as an essential
input for the production of goods and
service
Technology is all the knowledge,
product, process, tools, methods and
system employed in the creation of
goods or in providing services

Technology Definitions
Technology is the integral body of
technical and organizational (software)
and tools (hardware) used in the
production of goods and services.
Hard technology is technology that is
embodied in machinery and equipment,
Soft technology is the know-how and
information that is disembodied from hard
technology

Types of Technology
Product technology is the knowledge used to
produce any product or service.
Process technology is the knowledge used to
transform some of the inputs for the
production of a given product or service.
Management technology is the knowledge
used to manage the operations of a company
efficiently and effectively
Technology Components
Technoware object embodied into physical
facilities, such as machinery, tools, equipment
Humanware person embodied into human abilities,
such as skills, knowledge, craftsmanship, expertise
and creativity
Infoware record embodied into document
knowledge, such as specifications, manuals, design,
blue print
Orgaware institution embodied into management of
organizational framework, such as management
practices, organizational networks, methods and
techniques

Classification of Technology
New Technology is any newly introduced or
implemented technology that has an explicit impact
on the way a company produces products or provides
services

Emerging technology is any technology hat is not yet
fully commercialized but it will become new
technology within about five years

Appropriate technology optimal used of technology
indicated by a good match between technology
utilized and the resources required

Technology Levels
High Technology refers advanced or
sophisticated technologies utilized by the
company having the following characteristics:
It employs highly educated people such as
scientists and engineers
It use automatic and sophisticated operations
Its technology is changing at a faster rate than that
of other industries
It competes with technological innovation
It has high levels of R&D expenditure

Technology Levels
Low Technology refers to simple technologies that have permeated
large segment markets utilized by the company having the following
characteristics:
It employ people with relatively low levels of education
It uses manual or semiautomatic operation
It has low levels of R&D expenditures
Its technology base used is stable with little change
Its products produced are mostly of the types that satisfy basic
human needs
Medium Technology comprises a wide set of technologies that
fall between high and low technologies. It usually refers to
mature technologies that are more amenable than other to
technology transfer


Classification of level technological capability
at Firm level
Acquisitive capability is the ability needed to acquire
and use technology based on instruction and training
provided by the supplier. This is classified as a basic
level capability.

Adaptive capability is the ability to adapt existing
technology. This is classified as intermediate level
capability.

Innovative capability is the ability to develop existing
technology and create new technologies based on
research

Classification of level technological
capability at Firm level
Marketing capability is the ability for
distributing, selling and servicing
technological products

Investment capability is the ability to
analyze the feasibility of investments
technology

Invention and Innovation

Invention is the creation of a novel
technology. It could be a product, a process
or unknown system. E.g. the steam engine,
the telephone, the transistor, Xerox machine
etc
Innovation involves the creation of new
product, process or service to an organization
and introduce them into the market place by
utilization and commercialization them
Types of Innovations
Incremental Innovations involve the
adaptation, refinement and enhance of
existing product and service, e.g. new
generation of a micro computer

Radical Innovation involve entirely new
product and service or delivery system, e.g.
wireless communication

Technology and Market Interaction