Technological

Environment
Mukul Mishra
 Definitions
 J.K.Galbraith :
“systematic application of scientific or
other organized knowledge to practical
tasks”.
 Science : “A systematized body of
knowledge”
 Technology : “When this knowledge is put
to practice”
 Science and Technology are
interdependent.
 Science & Technology
Features Science Technology
1. In pursuit of Knowledge Socio-economic
gains.
2. People involved Scientists Engineers

3. Agencies involved Research institutions Industrial

and universities establishments
4. Funding Mostly government Industry

5. Motivation To satisfy curiosity To bring out need

satisfying products
6. Domain Public Private/Secret

7. Impact Discontinuous Continuous

8. Time span Uncertain Evolutionary

 The year 1983
 World’s first test tube triplets.
 Artificial Blood System ( Japan)

 Breakthrough in Genetic Engg to

cure Dwarfism
 Doctors encountered AIDS for the

first time
 Significant advances in nuclear

physics
 1989
 India’s serial nuclear explosions at
Pokharan.
 International Space Station put up.

 Lamb delivered by world’s first

cloned sheep Dolly.

 Use of Technology
 Constructive : As a wonder like
penicillin, open heart surgery
 Destructive : Horrors –atom bombs

 Depends on the perspective

 Features of Technology
1.Brings about rapid change

More Change

Future Shock: changes occur so

furiously that it approaches the limits
of human tolerence.( Alvin Toffler)
 Features of Technology
2.Time Gap between Idea & Implementation :
 Time Gap is being shortened considerably.

 New Ideas are transformed into products and

technologies all the time.

 Business leaders should pay close attention.

 New developments should be adopted and

new ideas explored.

 Features of Technology
3.Effects are widespread:
 Effects are felt beyond the point of

impact.
 Technology ripples through the

society affecting everyone.

 People can’t escape from it, its

present even in most isolated places

 Features of Technology
4.Technology is self-reinforcing:
 Alvin Toffler – “Technology feeds on

itself. Technology makes more

technology possible”
 An invention leads to a sequence of

inventions. e,g invention of wheel.

 Technology acts as a multiplier for its

own faster development.

 Features of Technology
5.Its a complete set in itself:
 It’s a complete set of knowledge,

ideas and methods and is a result of

varieties of activities both internal
and external.
 Consists of sequence of small events

lying along a continuous path.

 Features of Technology
6.Microperspective:
 Level of sophistication with which a

factory uses inputs such as labour,

finance, machines and raw material
to produce output.
 Technology can be compared to a

black box.
 Classification of Technology
1.State-of-the-art-technologies:
Technologies that equal or surpass the
competitors.
2.Proprietary Technologies :
Technologies protected by patents or
secrecy agreements that provide a
measurable competitive advantage.
3.Known Technologies:
Technologies that may be common to
many organizations but are used in unique
ways.
4.Core Technologies:
Technologies that are essential to maintain a
competitive position.
5.Leveraging Technologies:
Technologies that support several products,
product lines or classes of products.
6.Supporting Technologies:
Technologies that support the core
technologies.
7.Pacing Technologies:
Technologies whose rate of development
controls the rate of product or process
development.
8.Emerging Technologies:
Technologies that are currently under
consideration for future products or
processes.
9.Scouting Technologies:
Formal tracking of potential product
and process technologies for future
study or application.
10.Idealized unknown basic
technologies:
Technologies that, if available, would
provide a significant benefit in some
aspects of life.
 The Technology Cycle
1.Awareness Phase :
 Ist phase  company has a formal

mechanism to become aware of emerging

technologies.
 “Think Tanks “ with Engineers and

scientists are formed  research from

around the world and gather information
through journals, magazines, books,
conferences and product exhibitions.
 Information synthesized, internal report

prepared for corporate strategic planners &

technological policy makers.
2.Acquisition Phase:
 Actual acquisition of particular

technology.
 Company’s technology group in

collaboration with the industrial

engineering group would conduct
technical feasibility & economic
feasibility study.
 New technology acquired.
3.Adaption Phase:
 Company adapts the acquired

technology in this phase.

 If the relevance of the technology to a

company has been understood properly

and suitable technology adopted, this
phase would be smooth.
 If homework is not done properly, lot

of rework and adaption is reqd.

resulting in slowing down the
assimilation rate, major productivity
losses, and results in quality problems.
4.Advancement Phase:
 With limited resources, companies can’t

go about acquiring and abandoning

technologies.
 Its important to improvise the acquired

technologies for home needs.

 E.g Lincoln Electric- electric arc wielding

equipment.
5.Abandonment Phase:
 Last phase of technology cycle.

 Obsolescence of existing technologies.

 For survival, new technologies are

needed.
 Early abandonment  lost revenue

 Waiting too long  lost revenue as

customer may shift to competitive

products.
 Hard decision, inputs from Marketing,

R&D, Production should be taken.

 Impact of Technology
1.Technology & Social Change
2.Economic Effects of Technology
3.Technology & Plant Level Changes
 1.Technology & Social Change
Every area of social life/life of individuals
has been changed by developments in
technology.

a) High Expectations of Consumers :

- Emergence of affluent societies
- Want new varieties of products,
superior in quality, free from pollution,
more safe, more comfortable
-More investments reqd in R&D
-Japanese Industry.
b) System Complexity :
- Technology has resulted in
complexity.
- Modern machines fail often
because they are too complex.
- All components of a system must
work in tandem to produce
desired results.
- Interdependence of systems
c) Social Change :
- Change in social life may follow
from a development in technology
- technology directly changes the
patters of social life , e.g. the family. It
creates a more equal society
- emergence of neo rich class in
developing countries which are much
better paid and have higher living
standards by association with MNC’s
- The way we cook, communicate, use
media are affected by technology
- Technology has impacted the
religiousness of people. People
now depend on technology for
well being than Gods.
- Revolutionized education : use of
Internet, democratized education
- Technology facilitates wealth
creation.
 2.Economic Effects of Technology
a) Increased productivity in terms of
both quality & quantity.

wages of employees rise and prices

fall.
b) Need to spend on R&D
d) Technology transfer

e) Jobs tend to become more intellectual

f) Problem of techno structure : ESOP

g) Need for multi professional

h) Increased regulation & stiff opposition

i) Rise and decline of product & organization

j) Insatiable demand of capital

3. Technology at plant level

 1. Technology and organization structure

 2. Resistance to change

 3 Problems for importing technology

 4 Inability to absorb technology

 5 T.Q.M. / B.P.R.E. / F.M.S.

 6 Fear of risk
 Main problems and issues facing technology
environment and policy in India
 Heavy dominance of government in technology dept.

 Condition of stagnation in technology research

 Low rate of technology commercialiation

 Weak intellectual property regime

 Limited import of technology due to restriction

 Inferior proposition of Indian partner

 Import of outdated and inappropiate technology

 Little emphasis on technology assimilation and absorption