The world of Technology Management MEM 814.pptx

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TECHNOLOGY MANAGEMENT
BY
PROFESSOR DR NAWAR KHAN
PhD Engineering Management, MSc Production Engineering,
MBA (HRM), BSc Mechanical Engineering, ISO 9000 QMS Lead Assessor
NUST College of Electrical & Mechanical Engineering (E&ME)
Peshawar Road Rawalpindi, Pakistan
Tel # +92-051-9247543
+92-051-561-32627
Fax # +92-051-9247548
e-mail: nwr_khan@yahoo.com

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PROFILE
• Possess 31 years of professional experience
including academics, research and management
• Hold prestigious appointments in a large variety of
capacity
• Published a master level text book on TQM
• Published 95 research papers in different national /
international reputed conferences and journals.
• Worked as PI and now member of technical committee
of ‘Prime Minister Quality Award (PNQA)’.
• Supervised 45 x MS & 2 x PhD while 4 x MS and 5 x PhD
scholars are in progress
• Establish Dept of Engg Mgmt at CEME for MS and PhD
Degrees in Engg Management
• Worked as QMR for ISO 9000 QMS Certification and
Director LQEC for 9 years at CEME

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National University of Sciences & Technology (NUST)
College of E&ME
Department of Engg Management
Subject:MEM 814 TECHNOLOGY MANAGEMENT
Credit Hours: 3 hours per week
Main Topics
Introduction to Technology Management
The Role of Technology in the Creation of Wealth
Critical Factors in Managing Technology
Technology Life Cycles
The Process of Technological Innovation
Competitiveness, Business strategy and Technology Strategy
Technology Planning, The Acquisition and Exploitation of Technology
Transfer of Technology
The Design of Organization for Technology Management
The Manufacturing and Service Industries
Case studies and problem solution

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Recommended Books
1. Management of Technology; The Key to Competitiveness and Wealth
Creation, Tarek, M. Khalil (2000) Mc-GrawHill, New York
2. ‘Transfer of Technology’ by Goel Cohen, Sage Publications
Grading:
a. Quizzes / Homework 10%
b. Sessional Exams 30%
c. Term Project 10%
d. Final Exam 50%

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TECHNOLOGY MANAGEMENT
•TECHNOLOGY
• MANAGEMENT

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MANAGEMENT
• Management represents all actions of the overall
system that determine the quality mission, policy,
objectives and responsibilities and implement them
by incorporating quality planning, strategy, control,
assurance and improvements within the system of
an organization.

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BASIC MANAGERIAL FUNCTIONS
Every manager perform the following basic functions
(actions)
• Planning – thinking before doing
• Organizing – dividing main functions into subs
• Staffing – right person for the right job
• Leading – Inspire, motivate through vision, actions,
strategy, actions, guidance and coaching
• Controlling – to bring deviations within permissible
limits and plan
Management being universal applies to all fields

DEFINITION OF TECHNOLOGY
Technology can be defined as all the knowledge, products, processes,
tools, methods, and systems employed in the creation of goods or in
providing services. In simple terms, technology is the way we do things.
It is the means by which we accomplish objectives.
Technology is the practical implementation of knowledge, a means of
aiding human endeavor.
Zeleny (1986) highlighted this point by proposing that any technology
consists of three interdependent, co-determining and equally important
components:

DEFINITION OF TECHNOLOGY
1. Hardware: The physical structure and logical layout of the equipment
or machinery that is to be used to carry out the required tasks.
2. Software: The knowledge of how to use the hardware in order to carry
out the required tasks.
3. Brainware: The reasons for using the technology in a particular way.
This may also be referred to as the know-why.
Know-how: The learned or acquired knowledge of or technical skill
regarding how to do things well. Know-how may be a result of
experience, transfer of knowledge, or hands-on practice. People acquire
technical know-how by received formal or informal education or training
or by working closely with an expert in a certain field. Know-how can also
be acquired through a recognized method of technology transfer.

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CLASSIFICATION OF TECHNOLOGY
Technology can be classified in several ways. The following classification are
important in establishing a common vocabulary for ensuring useful
discussion.
New Technology
A new technology is any newly introduced or implemented technology that
has an explicit impact on the way a company produces products or provides
service. One example is new computer software introduced to develop
engineering drawings and thus replace manual drafting. Another example is an
internet website designed to market the company’s products. The technology
does not have to be new to the world, only to the company. It could have been
developed years ago and used by others, but it is classified as new whenever
introduced for first time in a new situation. New technology has a profound
effect on improving productivity and maintaining a competitive business
enterprise.

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2. Emerging Technology
An emerging technology is any technology that is not yet
fully commercialized but will become so within about five
years. It may be currently in limited use but is expected to
evolve significantly. Example of emerging technology
include genetic engineering, nanotechnology,
superconductivity, and the Internet as a replacement for
the personal computer. Emerging technologies create new
industries and may make existing ones obsolete. They
have the potential of triggering large changes in
institutions and in society itself.

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3. High Technology
The term high technology (high tech) refers to advanced or
sophisticated technologies. High technologies are utilized by a
wide variety of industries having certain characteristics. A
company is classified as high-tech if it fits the following
description (Larsen and Rogers 1988:Mohrman and Von Ginlow,
1990):
•It employs highly educated people. A large number of the
employees are scientists and engineers.
•Its technology is changing at a faster rate than that of other
industries.
•It competes with technological innovating.
•It has high levels of research and-development expenditure. (A
general guide is that the ratio of R&D expenditures to sales is 1 to
10 or twice the average for the industry.)
•It has the potential to use technology for rapid growth, and its
survival is threatened by the emergence of competing technology.
•Some high-tech companies may be working with technologies
that are “pushing the envelope.” These technologies may be
referred to as “super-high technologies.”

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Low Technology
The term low technology refers to technologies that have
permeated large segments of human society. Low
technologies are utilized by a wide variety of industries
having the following characteristics:
•The employ people with relatively low levels of education
or skill.
•They use manual or semiautomatic operations.
•They have low levels of research expenditure (below
industry average).
•The technology base used is stable with little change.
•The products produced are mostly of the type that satisfy
basic human needs such food, shelter, clothing, and basic
human services.

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Medium Technology
The term 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 others to technology
transfer. Examples of industries in this category are
consumer products and the automotive industry.

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Appropriate Technology
The term appropriate technology is used to indicate a
good match between the technology utilized and the
resources required for its optimal use. The technology
could be of any level-low, medium, or high. It does not
make sense, for example, to use high technology when
there is a lack of necessary infrastructure or skill
personnel. This a dilemma faced by many developing
countries that want to transfer technology used in more
industrialized countries. They may push for the acquisition
of high technology in cases where a medium level
technology would be more effective. Utilizing the
appropriate level of technology results in better use of
labor resources and better production efficiency.

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Codified Versus Tacit Technology
• Technology can be preserved and effectively transferred among
users if it is expressed in a coded form. An engineering drawing is
a coded form expressing shape, dimension, and tolerances
about a product. A computer program of an optimization algorithm
is a codified form that preserves and transmits knowledge about
that algorithm.
• Tacit technology is non articulated knowledge. There is no
uniformity in the way it is presented or expressed to a large group
of people. It is usually based on experiences and therefore
remains within the minds of developers. The technology
developers are the ones who have the know-how in question.
Tacit knowledge is transmitted by demonstration or observation,
followed by assimilation by those who seek the knowledge.
Transfer of tacit technology occurs by close contact and
interaction between the source and host. Apprenticeship
programs may serve as a vehicle for transferring the tacit
nuances of specific professions or field.

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Codified technology, on the other hand, allows people to
know how technology works but not necessary why it
works in a certain way. The brainware may be part of the
tacit knowledge kept in the minds of developers and shape
by their experiences during the development process.
Transfer of technology is easier when the technology is in
a codified form. It is harder, less precise, and more time
consuming to transfer tacit technology. A complete
mastery of the technology requires an understanding of
both the explicit codified knowledge and the non explicit
tacit knowledge.

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Management of Technology
• Management of technology (MOT) is an
interdisciplinary field that integrates science,
engineering, and management knowledge and
practice (Figure 1-1) The focus is on technology as
the primary factor in wealth creation. Wealth
creation involves more than just money; it may
encompass factors such as enhancement of
knowledge, intellectual capital, effective exploitation
of resources, preservation of the natural
environment, and other factors that may contribute
to raising the standard of living and quality of life.
Managing technology implies managing the
systems that enable the creation, acquisition and
exploitation of technology.

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While the underlying premise for the MOT field is
that technology is the most influential factor in a
wealth-creation system, there are other factors that
contribute to the system (Figure 1-1). For example
capital formation and investment make significant
contributions to economic growth. Labor is another
factor in economic growth. Social, political and
environmental considerations facilities or hinder the
wealth-creating process. MOT treats technology as
the seed of the wealth-creation system. With proper
nourishment and a good environment, a seed grows
to become a healthy tree.

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FIGURE 1-1
THE INTERDISCIPLINARY NATURE OF MOT
MOT
NATURAL
SCIENCE
SOCIAL
SCIENCE
ENGINEERING
BUSINESS
THEORY INDUSTRIAL
PRACTICE

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• Other factors contributing to wealth creation-including
capital, labor, natural resources, public policy, and so on-
provide the fertile land, environment, and nourishment
needed for growth. Each one of these factors has its own
disciplinary field of study and research. MOT, as an
interdisciplinary field, combines knowledge from these
disciplines.
• MOT has national, organization, and individual
dimensions. At the national /government level (macro
level) it contributes to shaping public policy. At the firm
level (micro level) it contributes to the creation and
sustainability of competitive enterprises. At the individual
level it contributes to the enhancement of one’s worth in
society.

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Society needs
Standard of living
social and environmental
issue
The Customer
Production
Technology
Creation or
application
Technology
Conversion
Market
needs
FIGURE 1-2 SPINNING OUT
TECHNOLOGY
Technology must connect with
Customer needs to satisfy those
Needs and achieve societal
Goals.
Technology is the engine of
economic growth

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MOT at the Film Level
In USA, National Research Council report (1987) on management of
technology defined it as an interdisciplinary field concerned with the
planning, development and implementation of technological capabilities to
shape and accomplish the operational and strategic objectives of an
organization.
MOT is an interdisciplinary field because it involves combined knowledge
from science, engineering, and business administration fields. It impacts
different functional entities of the corporation: research and development,
design, production, marketing, finance, personnel, and information. Its
domain involves both the operational and the strategic interests of
organization. The operational aspect deals with the day-to-day activities of
the organization, while the strategic dimension focuses on the long-term
issues.

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Technology Labor
Capital Natural Resources
Market
Public and
Environmental Policy
Wealth
Creation
FIGURE 1-3
FACTORS CONTRIBUTING TO WEALTH CREATION

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MOT at the National/Government Level
From a macro-level perspective a more general definition may
be appropriate for MOT.
It can as defined as
A field of knowledge concerned with the setting and
implementation of policies to deal with technological
development and utilization, and the impact of technology on
society, organizations, individuals and nature. It aims to
stimulate innovation, create economic growth and to foster
responsible use of technology for the benefit of humankind.

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THE CONCEPTUAL FRAMEWORK FOR MOT
Figure 1-4 shows the basic concept of MOT as an
interdisciplinary field of study and application. It illustrates
how MOT creates a linkage among science, engineering, and
management disciplines. From an academic point of view,
this conceptual figure indicates that traditional field in
science and engineering contribute to scientific discovery
and to technology creation.

Business
Administration
Disciplines
Science and
Engineering
Disciplines
MOT
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FIGURE 1-4
CORE KNOWLEDGE NEEDED FOR MOT

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WHY MANAGEMENT OF TECHNOLOGY NOW?
(Due to rapid growth of knowledge and technology, its management
become necessary)
The following events triggered the development of technology;
•First World War
•Industrialization Era – 1940
•World War-II
Now the present scenario forced us to manage the technology which
includes;
•The Pace of Technology Change
•The Change in Scope
•Changes in Competition
•Trade Blocks

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T
E
C
H
N
O
L
O
G
y
D
E
V
E
L
O
P
M
E
N
t
FIGURE 1-5
CORE KNOWLEDGE NEEDED FOR MOT
1780 1880 1980
Time/Year

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READING ASSIGNMENT
RELATIONSHIP BETWEEN KNOWLEDGE AND TECHNOLOGY

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READING ASSIGNMENT
RELATIONSHIP BETWEEN TECHNOLOGY AND BUSINESS

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TERM PROJECT
TECHNOLOGY AUDIT OF AN ORGANIZATION

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THE ROLE OF TECHNOLOGY IN CREATION OF WEALTH
1. Knowledge increases
2. Rate of technology development enhances
3. Waste / rejection decreases
4. Quality of products and services improves
5. Productivity increase
6. Fixed cost decreases
7. Margin of profit increases
8. Repeated buying increases / Sale increase
9. Market share increases
10.Company competitive position improves
11.Revenue increases
12.Dividend increases
13.Tax to national exchequer increase
14.Social life improves
15.Disputes decreases and harmony increases

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Biotech
Age
Information
Age
Space
Age
Electronic
Age
Nuclear
Age
Electricity
Age
Steam
Age
Iron
Age
Bronze
Age
Stone
Age
FIGURE 2-1
EVOLUTION BY AGE OF TECHNOLOGY

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POINTS
IN
THOUSA
NTS
8000
6000
4000
2000
FIGURE 1-5
DOW JONES INDUSTRIAL AVERAGE
1900 1920 1940 1960 1980 2000
Time/Year

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FIGURE 2-3
EVOLUTION OF PRODUCTION TECHNOLOGY

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FIGURE 2-4
IMPORTANT TECHNOLOGICAL INNOVATIONS
1950
 Microprocessor
 Recombinant DNA
 Laser Printer
 MRI Scanner
 Space Shuttle
 Scanning
 Tunneling
 Microscope
1950-1969
 Sputnik 1 (USSR)
 NASA
 Integrated Circuit
 Operable Laser
 First Man in Space
 Telstar Satellite
 Kevlar
 Fiber Optics
 Apollo XI
1940-1949
 Color TV
 Manhattan Project
 General Purpose
 Electronic, Digital
Computer
 Supersonic Flight
 Transistor
 Instant Camera
 Jet Airliner
1901- 1939
 Air Conditioner
 First Flight
(Wright Bros)
 Model T (Ford)
 Liquid-fueled
Rockets
 FM radio
 Jet Engine
 Xerography
 Helicopter
1830-1900
 Telegraph (Morse)
 Improved plow
(Deere)
 Vulcanized Rubber
 Safety Elevator (Otis)
 Internal Combustion
Engine
 Telephone (Bell)
 Phonograph
 (Edison)
 Radio (Marconi)
1793-1829
 Cotton gin (Whitney)
 Practical Steamboat
(Fulton)
 Steam Powered
Locomotive for
passengers and freight

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HOME ASSIGNMENT
BRIEFLY DISCUSS THE GROWTH OF TECHNOLOGY IN YOUR
FIELD OF ENGG SPECIALITY

CRITICAL FACTORS IN MANAGING TECHNOLOGY
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1. The CREATIVITY
a. Invention – new idea / concept generation
b. Innovation – bring invention to market place & commercialize it
2. THE LINK BETWEEN SCIENCE AND TECHNOLOGY
– scientific knowledge lead technology development
scientific knowledge enhances, so technology development also
increases

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FIGURE 3-1
COMPONENTS OF AN INNOVATION CYCLE
2.
INVENTION
3.
INNOVATION
1.
SCIENTIFIC DISCOVERY
4. MARKET

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3. TYPES OF INNOVATION
a. radical / revolutionary - breakthrough
b. incremental / evolutionary – small / kaizan
4. CREATIVITY AND INNOVATION
– creativity can lead to innovation if creative environment and
creative people are available
5. BRING INNOVATION TO MARKET
either quicker diffuse the technology in market because of fear of
competitor or diffuse technology in company to get innovative
product if the company is technology leader

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6. THE TECHNOLOGY – PRICE RELATIONSHIP
Earlier brought of technology give premier price; greater the technology
gap lead to higher prime price
FIG 3.2 TECHNOLOGY GAP / PRICE RELATIONSHIP
TECHNOLOGY GAP TIME OR DIFFUSION
P
R
I
C
E
T
E
C
N
O
L
O
G
I
C
A
L
K
N
O
W
L
E
D
G
E
Firm / Own knowledge
Customer
knowledge
Gap

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7. THE TIMING FACTOR
– right timing will improve performance of a company so it become
more competitive
8. THE VISION OF CHANGE STRATEGY
– sense change and make strategy for it when market is good and
revenues are better
9. MANAGING CHANGE
– change must be proper to maintain stability
10. PRODUCTIVITY, EFFECTIVENESS AND COMPETITIVENESS
p = O / I (taking time and quality into consideration)

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11. LEADERS VERSUS FOLLOWERS in technology; all have advantages
and disadvantages and may succeed or fail depent on its
management
a. leader is first to marker, must have strength to maintain
b. follower; follow closely behind the leader, play safely
c. laggard; their survival may depend upon adopting new technology
INNOVATOR IMITATOR / FOLLOWER
WIN WIN
LOSE LOSE
Fig 3.6 OUTCOME FROM THE INNOVATION PROCESS
The winning by both innovator and imitator / follower is
linked to good management of technology

MOT – THE NEW PARADIGM
Enablers
Technologies
Resources
(technical /
financial
Business
environment
Structure and
management of
organization
Project
planning and
management
Human
resource
Natural resources
(material)
Product technology
(concepts and design)
Production technology
(processes and
operations)
Information technology
Marketing technology
(traditional and
innovative)
Service and customer
satisfaction technology
Safety and environment
technology
46

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FIGURE 4.2
STAGES IN NEW PRODUCT / TECHNOLOGY LIFE CYCLE
Idea generation and
concept definition
Market analysis
Technical analysis
Business plan
and approval
Developing &
testing
production
commercialization
Disposal &
recycle

GUIDING PRINCIPLES FOR MANAGAGING ENTERPRISES
1. Value creation
2. Quality
3. Responsiveness
4. Agility
5. Innovation
6. Integration
7. Teaming
8. Fairness
48

MANAGEMENT PARADIGMS AND TECHNOLOGY
1. Owner, Operator and Labour in a factory
2. Interchangeable parts in production
3. Cost of production
4. Scientific management - optimization
5. Assembly line organization of production
6. Quality of production
7. Managing with technology – internal service technology
of accounting, control, engg and manufacturing and
external service technologies banking, transportation
and communication
8. Deliberate creation of technological change and
innovation at national level by policy change
49

50
Technology
Performance
Parameter
Time
Physical Limit
New
Innovation
period
Embryonic Growth Maturity Aging
Technology
Improvement
Period
Mature
Technology
Period
TECHNOLOGY LIFE CYCLE
The S curve of Technology Progress

51
Performance
Parameter
Time
Limit B
Limit A
A
A’
B
• Path of progress of technology A
• Slower rate of progress of
technology A’
• Newer technology B progressing
at a faster rate
Changes in Natural Limits of Technology

52
Market
Volume
Time
A B C D E F
A. Technology development
B. Application launch
C. Application growth
D. Mature technology
E. Technology substitute
F. Technology obsolescence
Market Growth of Different Stages of the Technology Life Cycle

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Performance
Parameter
Time
Subtechnology I
Lifecycle
Subtechnology II
Lifecycle
Overall Technology
Lifecycle
Subtechnology III
Lifecycle
TECHNOLOGY
CYCLE
Multiple – Generation Technologies
Subtechnology life cycles in multiple generations of
Innovation shape the overall technology life cycle

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Market
Volume
Time
A B C D E F
A. Concept design prototype
B. Product launch
C. Product growth
D. Mature Stage
E. Substitution product
F. Product obsolescence
Product – market Life Cycle

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Rate
of
Innovation
Time
Technology
Lifecycle
Product innovation
Aging Technology
(Substitution and
discontinuity)
Process
Innovation
Dominant Design
Technological
Discontinuity
(turbulence)
Technological Progress
The progress of technology is shown in
relation product ad process innovation

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Percent
of
adoption
Time
Technology A:
Rapid Adoption
Technology B:
Slow Adoption
Later adopter
Earlier adopters
100%
Diffusion Curves

57
Number
of
Adopters
Due
to
Mass
Media
Time
The Diffusion – Communication Channel Relationship
This relationship can be used to forecast the rate of adoption of innovation

58
Number
of
Adopters
Due
to
Interpersonal
Communication
Time

59
Total
Noncumulative
Number
of
Adopters
Time

60
Cumulative
Number
of
Adopters
Time

61
1. Basic Research
2. Applied Research
3. Technology Development
4. Technology
Implementation
5. Production
6. Marketing
7. Proliferation
8. Technology Enhancement
FIQURE-6.1
THE EIGHT STAGES OF TECHNOLOGICAL INNOVATION

62
Management
+
+
+ +
+
Scientific
Invention Commercially
Successful
Innovation
Engineering
Developmen
t
Entre-
preneurship
Recognized
Social need
Supportive
environment =
FIQURE-6.3
THE INNOVATION CHAIN EQUATION

63
Innovation
Wealth Creation Sustainable
Development
Discovery of
New Knowledge
& Basic Laws
Societal Needs
The Public Good
Natural Capital
Devices
Processes
Systems
Analysis
Reduction
Synthesis
Integratio
n
Design
Manufacture
Maintenance
Ideas
Information
Capital Formation
& Investment
FIQURE- 1
INNOVATION CONCURRENT INTEGRATION

64
CONCEPT DEFINITION
Conceptual
definition of
product or
service
Setting technical goals
and priorities
Setting expected
performance
TECHNICAL ANALYSIS
Resources
required
Resources available
Time frame of
development
MARKET ANALYSIS
Defining the
market
Analysis of current and
future needs
Know the customers
Know the competitors
Window of opportunity
FULL PRODUCTION AND
COMERCILIZATION
Production
Tooling
Operation control
Supply organization
Logistic
BUSINESS PLAN
SWOT
Economic analysis
Capital
Strategic outlook
TEST MKT
Strategy for
market
introduction
Marketing innovations
Timing
Measuring response
Approval by top
management
DEVELOPMENT
Prototype
Testing
Start-up-needs
IDEA GENERATION
Recognitio
n of need
Alternative ways to
meet the need
Analysis of
alternative solutions
Selection of best
solution and criteria
of selection
Solutions
Proposal
for
implementa
tion
DISPOSAL
•
Environmental
consciousness
FIQURE-6.2
THE PROCESS OF TECNOLOGICAL INNOVATION

Basic Factor
1.The presence of scientific knowledge
2.The level of maturity of underlying science
3.The type of technology and the phase of its life
cycle
4.The level of investment technology
5.The level of political commitment
6.The ability to borrow advances from related
technologies
7.The diffusion rate and patterns
65
FACTOR INFLUNENCING TECHNOLOGICAL INNOVATION

Other Factors
1.The changing world environment
2.Improvements in communication
3.Multiple-site continuous R&D
4.Time to market
5.The push of education
6.Changes in institutional interactions
7.Changes in organizational structures
8.Infusion of resources into technological
development and penetration
66

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