# Management of Technology

8/8/2019 # Management of Technology

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Without a strategy the organizationWithout a strategy the organizationis like a ship without a rudder, goingis like a ship without a rudder, going

around in circles.around in circles.


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Technology

TechnologyTechnology isis aa broadbroad conceptconcept thatthat dealsdeals

withwith thethe knowledgeknowledge ofof toolstools andand crafts,crafts,

andand howhow itit affectsaffects thethe abilityability toto controlcontrolandand adaptadapt toto itsits environmentenvironment..

TechnologyTechnology isis aa termterm withwith originsorigins inin thetheGreekGreek "technologia","technologia", """"

"techne","techne", """" ("craft")("craft") andand "logia","logia",

"""" ("saying")("saying")..


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However,However, aa strictstrict definitiondefinition isis elusiveelusive;;

"technology""technology" cancan referrefer toto materialmaterial objectsobjects ofof

useuse toto humanity,humanity, suchsuch asas machines,machines, hardwarehardware

oror utensils,utensils, butbut cancan alsoalso encompassencompass broaderbroader

themes,themes, includingincluding systems,systems, methodsmethods ofof

organization,organization, andand techniquestechniques..

TheThe termterm cancan eithereither bebe appliedapplied generallygenerally oror totospecificspecific areasareas:: examplesexamples includeinclude "construction"construction

technology",technology", "medical"medical technology",technology", oror "state"state--

ofof--thethe--artart technology"technology"..

Technology


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TechnologyTechnology cancan bebe mostmost broadly broadly defineddefined asas

thethe entities,entities, both both materialmaterial andand immaterial,immaterial,

createdcreated by by thethe applicationapplication ofof mentalmental andand

physicalphysical efforteffort inin orderorder toto achieveachieve somesome valuevalue..

InIn thisthis usage,usage, technologytechnology refersrefers toto toolstools andand

machinesmachines thatthat maymay bebe usedused toto solvesolve realreal--worldworld

problemsproblems.. ToolsTools andand machinesmachines needneed notnot bebematerialmaterial;; virtualvirtual technology,technology, suchsuch asas computercomputer

softwaresoftware andand businessbusiness methodsmethods,, fallfall underunder thisthis

definitiondefinition ofof technologytechnology..

Technology


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The word "technology" can also be used torefer to a collection of techniques. In thiscontext, it is the current state of humanity's

knowledge of how to combine resources toproduce desired products, to solve problems,fulfill needs, or satisfy wants; it includestechnical methods, skills, processes,techniques, tools and raw materials. When

combined with another term, such as "medicaltechnology" or "space technology", it refers tothe state of the respective field's knowledgeand tools. "State-of-the-art technology" refersto the high technology available to humanityin any field.

Technology


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Definition

TechnologyTechnology seemsseems toto be be thethe mostmost widelywidely usedusedwordword todaytoday inin industrialindustrial worldworld andand severalseveral words/words/nomenclaturesnomenclatures connectedconnected withwith technologytechnology areare inin

voguevogue.. TheseThese includeinclude R&DR&D,, inventioninvention,,innovationinnovation,, technologytechnology developmentdevelopment,, technologytechnologystrategiesstrategies,, technologytechnology absorptionabsorption andand adaptationadaptation,,technologytechnology transfertransfer,, technologytechnology forecastforecast,,technologytechnology assessmentassessment,, technologytechnology planningplanning,,technologytechnology informationinformation,, industrialindustrial propertypropertysystemssystems,, codecode ofof conductconduct,, andand technologytechnologymanagementmanagement.. ItIt isis difficultdifficult toto findfind aa uniqueuniquedefinitiondefinition forfor technologytechnology forfor itit hashas beenbeen defineddefined

inin manymany waysways..


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Innovation and Invention

InventionInvention isis anan ideaidea forfor aa novelnovel productproduct oror processprocess..InnovationInnovation isis thethe introductionintroduction ofof newnew products,products,

processes processes oror servicesservices intointo thethe marketmarket placeplace..TechnologicalTechnological innovationinnovation isis aa subsub--setset ofof innovationinnovationii..ee.. thethe introductionintroduction ofof newnew products,products, processesprocesses ororservicesservices based based onon newnew technologiestechnologies.. TheThetechnologicaltechnological innovationinnovation beginsbegins withwith inventioninvention.. TheThefirstfirst stepstep isis thethe ideaidea ofof thethe inventioninvention andand thethe researchresearch

toto reducereduce thethe ideaidea toto practicepractice.. ThisThis oftenoften resultsresults inin aafunctionalfunctional protoproto--type,type, whichwhich cancan bebe usedused forfor filingfiling aapatentpatent.. TheThe nextnext stepstep isis thethe researchresearch andand developmentdevelopmentofof thethe protoproto--typetype intointo aa commerciallycommercially designeddesigned

productproduct.. Finally,Finally, thethe productproduct isis producedproduced andand soldsold..


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The distinction between invention and innovation isan important one, for the transformation from ideasinto a successful product is actually difficult. Thistransformation is the heart of the complex process ofinnovation. The hard fact is that only a few inventionsare successfully innovated, with fewer inventionsdeveloped into new products, and still fewer new

products succeed commercially. The problem of

managing technology thus can be divided into twoparts: (i) encouraging invention, and (ii) managingsuccessful innovation. Encouraging invention falls inthe area of corporate research and managingsuccessful innovation falls in the area of managing

technology.

Innovation and Invention


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Science Engineering & Technology

ScienceScience isis thethe reasonedreasoned investigationinvestigation oror studystudy ofof

phenomena, phenomena, aimedaimed atat discoveringdiscovering enduringenduring

principles principles amongamong elementselements ofof thethe phenomenalphenomenal

worldworld byby employingemploying formalformal techniquestechniques suchsuch asas thethe

scientificscientific methodmethod..

EngineeringEngineering isis thethe goalgoal--orientedoriented process process ofof

designingdesigning andand makingmaking toolstools andand systemssystems toto exploitexploitnaturalnatural phenomena phenomena forfor practical practical humanhuman means,means,

oftenoften (but(but notnot always)always) usingusing resultsresults andand

techniquestechniques fromfrom sciencescience..


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TechnologyTechnology isis oftenoften aa consequenceconsequence ofof sciencescience andandengineeringengineering althoughalthough technologytechnology asas aa humanhumanactivityactivity precedes precedes thethe twotwo fieldsfields.. ForFor example,example,

sciencescience mightmight studystudy thethe flowflow ofof electronselectrons ininelectricalelectrical conductorsconductors,, by by usingusing alreadyalready--existingexistingtoolstools andand knowledgeknowledge.. ThisThis newnew--foundfound knowledgeknowledgemaymay thenthen bebe usedused byby engineersengineers toto createcreate newnew toolstoolsandand machines,machines, suchsuch asas semiconductorssemiconductors,,computerscomputers,, andand otherother formsforms ofof advancedadvancedtechnologytechnology.. InIn thisthis sense,sense, scientistsscientists andand engineersengineersmaymay bothboth bebe consideredconsidered technologiststechnologists;; thethe threethreefieldsfields areare oftenoften consideredconsidered asas oneone forfor thethe purposespurposes

ofof researchresearch andand referencereference..

Science Engineering & Technology


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Technology Development

Technological developmentTechnological development is the process ofis the process of

researchresearch andand developmentdevelopment ofoftechnologytechnology. Many. Many

emerging technologiesemerging technologies are expected to becomeare expected to become

generally applied in the near future.generally applied in the near future.

The new technology development process leansThe new technology development process leans

on theon theNew product developmentNew product development process. It startsprocess. It starts

with a newwith a new technologicaltechnological idea, viaidea, via researchresearch andand

developmentdevelopment through to the use of athrough to the use of a technologytechnology

(e.g. by introducing products that are based on the(e.g. by introducing products that are based on the

new technology in market).new technology in market).


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Software TechnologySoftware Technology

BiotechnologyBiotechnology

NanotechnologyNanotechnology

Artificial IntelligenceArtificial Intelligence

Energy DevelopmentEnergy Development etcetc

EmergingEmerging technologiestechnologies -- ExamplesExamples ofof emergingemerging technologiestechnologiesareare GeneticGenetic engineeringengineering // SyntheticSynthetic biologybiology,, ElectricElectric carscars withwithrangerange extendersextenders andand PersonalPersonal rapidrapid transittransit,, FlashFlash memorymemory withwithsmaller,smaller, faster,faster, lowerlower powerpower consumingconsuming storage,storage, NanomaterialsNanomaterials,,CVDCVD diamonddiamond,, ScramjetScramjet,, WirelessWireless communicationcommunication withwith

ubiquitousubiquitous networknetwork connectivity,connectivity, AntiAnti--agingaging drugs,drugs, SemanticSemanticWebWeb oror AnswersAnswers MachineMachine,, moremore efficientefficient biobio fuelsfuels,, OLEDsOLEDs,,MachineMachine translationtranslation bob,bob, NuclearNuclear fusionfusion powerpower,, 33DD opticaloptical datadatastoragestorage oror HolographicHolographic datadata storagestorage,, MetamaterialsMetamaterials,, 33DDdisplaysdisplays,, QuantumQuantum computingcomputing,, Nanowire Nanowire batteriesbatteries,, VirtualVirtualretinalretinal displaysdisplays,, WiTricityWiTricity andand WRELWREL ((WirelessWireless energyenergy

transfertransfer))..

Examples of Technological

Development


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Technology Management

ManyMany factorsfactors makemake upup thethe technologytechnology developmentdevelopment

frameworkframework andand therethere areare severalseveral waysways ofof condensingcondensing

thesethese intointo aa manageablemanageable numbernumber ofof groupingsgroupings.. FigureFigure

nextnext showsshows thesethese factorsfactors groupedgrouped aroundaround sixsix broadbroaddimensionsdimensions::

ii.. ObjectivesObjectives

iiii.. DecisionDecision criteriacriteria

iiiiii.. TimeTime

iviv.. ConstraintsConstraints

vv.. ActivitiesActivities

vivi.. MechanismsMechanisms


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Role & Importance ofTechnology

ManagementTechnology and management of technology arecritical for an enterprise for its successfuloperation on long-term basis. Technology

management is, however, a part of the totalmanagement system. There are three basicconsiderations for starting any new firm based ontechnological innovation.

a) The idea for a technological innovation;The idea for a technological innovation;

b) A potential market;b) A potential market;

c) Team work in both technological and business expertise.c) Team work in both technological and business expertise.


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Technology Management

TheThe aboveabove points points underlineunderline thethe needneed forforinterweavinginterweaving thethe technologytechnology frameworkframework withwithotherother areasareas ofof businessbusiness inin anan enterpriseenterprise.. TheThe ideaidea

ofof aa technologicaltechnological innovationinnovation shouldshould bebe basedbased ororlinkedlinked withwith thethe potential potential marketmarket andand thethetechnologytechnology teamteam shouldshould closelyclosely interactinteract withwith thetherestrest ofof thethe divisionsdivisions ofof thethe enterpriseenterprise leadingleading totosuccessfulsuccessful logicallogical conclusionsconclusions inin termsterms ofof

products/ products/ processesprocesses toto bebe developeddeveloped asas perper thetheobjectivesobjectives setset inin thethe beginningbeginning.. ThisThis strategystrategy isisbestbest reflectedreflected inin thethe formform ofof aa "" BusinessBusiness Plan"Plan" ofofanan enterpriseenterprise whichwhich needsneeds toto be be prepared prepared andand

approvedapproved beforebefore startingstarting thethe newnew businessbusiness..


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Business Plan

The business plan is a strategic summary of a new venture.Its purposes are:

i) to ensure, by clear focus in strategy, that important pointsnecessary to the success of any business venture, have

been considered; andii) to persuade financial investors to invest in the new

venture. A new venture business plan could include thefollowing:

a) Current business status- Business objectives

- Management and organisation

b) Products or Services

- Product description

- Technological background

- Competition


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Business Plan

c)c) BenefitsBenefits toto customerscustomers

-- MarketMarket CompetitionCompetition

-- MarketingMarketing strategystrategyd)d) CapitalisationCapitalisation

-- CapitalCapital requirementsrequirements

-- FinancialFinancial forecastsforecasts

-- BenefitsBenefits toto investorsinvestors

ItIt isis thusthus clearclear fromfrom thethe aboveabove thatthat technologytechnology andandtechnologytechnology managementmanagement areare onlyonly aa partpart ofof thethe totaltotal

businessbusiness activityactivity oror businessbusiness planplan ofof anan enterpriseenterprise..


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Technology & Competition

Although technological competitiveness is necessary forcorporate survival, it alone is not sufficient. Of course, acorporation with inferior technology cannot compete at thesame price level with a corporation superior in technology. Thereason why superior technology alone is not sufficient is that

business is a system, and there are many other systems (or sub-systems) that determine business success. Therefore, iftechnology is to give a competitive edge, management mustmanage it as apart of the business system. Technologicalinnovation can be integrated with production, marketing,

finance and personnel into a balanced business system.Managing technology essentially involves four centralconcepts:

a) New ventures

b) Innovation

c) Research

d) Research infrastructure


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Research

TechnologicalTechnological changechange isis newnew knowledgeknowledge aboutaboutwhatwhat thingsthings toto produceproduce andand howhow toto produceproduce themthem;;andand inin thethe corporation,corporation, newnew knowledgeknowledge oftenoften comescomes

fromfrom corporatecorporate researchresearch.. TheThe corporatecorporate laboratorylaboratoryisis chargedcharged withwith thethe responsibilityresponsibility ofof lookinglooking afterafterthethe present present andand futurefuture productivity productivity ofof thethecorporationcorporation.. ManagingManaging andand integratingintegrating corporatecorporateresearchresearch withwith otherother managementmanagement functionsfunctions andandstrategiesstrategies isis essentialessential toto technologytechnology managementmanagement..ResearchResearch managementmanagement includesincludes organisationorganisation ofofresearch,research, projectproject managementmanagement researchresearch personnel,personnel,andand corporatecorporate researchresearch strategystrategy..


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Technology & Business

BusinessBusiness processprocess

AA businessbusiness processprocess ororbusinessbusiness methodmethod isis

aa collectioncollection ofof related,related, structuredstructured activitiesactivitiesoror taskstasks thatthat produceproduce aa specificspecific serviceservice oror

product product (serve(serve aa particular particular goal)goal) forfor aa

particularparticular customercustomer oror customerscustomers.. ItIt oftenoften

cancan be be visualizedvisualized withwith aa flowchartflowchart asas aasequencesequence ofof activitiesactivities


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ManagingManaging technologytechnology isis takingtaking risksrisks ininnovelnovel products products andand developingdeveloping newnewmarketsmarkets.. InIn thethe worldworld ofof rapidrapid technologicaltechnologicalprogress progress andand changingchanging competitivecompetitiveenvironmentsenvironments andand marketmarket needs,needs, firmsfirmsmustmust pay pay increasingincreasing attention,attention, toto

developingdeveloping newnew innovativeinnovative products products forfordomesticdomestic andand worldworld markets,markets, andand thereforethereforeanan efficientefficient technologytechnology managementmanagement systemsystemisis importantimportant forfor themthem..


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EffectiveEffective technologytechnology managementmanagement inin variousvariouscountriescountries havehave ledled toto severalseveral technologicaltechnologicaladvancementsadvancements inin thethe pastpast.. InIn tabletable 11..11 wewe hadhad

listedlisted forfor youyou somesome significantsignificant technologicaltechnologicaladvancementsadvancements duringduring thethe past past twotwo centuriescenturies ininselectedselected areasareas.. RecentRecent GulfGulf WarWar ((19911991)) isis anotheranotherburningburning exampleexample ofof technologicaltechnological advancementsadvancementsinin whichwhich defencedefence systemssystems usingusing latestlatest

developmentsdevelopments inin materials,materials, electronicselectronics andandcomputers,computers, etcetc.. werewere usedused byby USAUSA againstagainst IraqIraq..ThereThere isis evidenceevidence toto showshow thatthat therethere hashas beenbeenaccelerationacceleration inin technologicaltechnological changechange allall overover thethe

worldworld duringduring thethe lastlast oneone hundredhundred yearsyears..


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PreviousPrevious tabletable givesgives somesome evidenceevidence toto indicateindicate

thatthat therethere isis aa decreasingdecreasing trendtrend inin thethe speedspeed ofof

introducingintroducing technologicaltechnological developmentsdevelopments intointo

socialsocial useuse.. TheThe timetime ofof substitutionsubstitution hashas alsoalsodecreaseddecreased overover thethe yearsyears.. ThisThis hashas steppedstepped upup thethe

pace pace of of invention,invention, innovationinnovation andand

substitution/diffusionsubstitution/diffusion.. ThisThis meansmeans accelerationacceleration inin

thethe wholewhole processprocess ofof technologicaltechnological changechange.. TheThenewnew machinesmachines andand techniquestechniques areare notnot merelymerely

products,products, butbut sourcessources ofof freshfresh creativecreative ideasideas..


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ThereThere areare threethree typestypes ofof businessbusiness processesprocesses::

1.1. ManagementManagement processesprocesses,, thethe processes processes thatthatgoverngovern thethe operationoperation ofof aa systemsystem.. TypicalTypicalmanagementmanagement processes processes includeinclude ""CorporateCorporateGovernanceGovernance"" andand ""StrategicStrategic ManagementManagement""..

2.2. OperationalOperational processesprocesses,, processesprocesses thatthat constituteconstitutethethe corecore businessbusiness andand createcreate thethe primaryprimary valuevaluestreamstream.. TypicalTypical operationaloperational processes processes areare

PurchasingPurchasing,, ManufacturingManufacturing,, MarketingMarketing andandSalesSales..

3.3. SupportingSupporting processesprocesses,, whichwhich supportsupport thethe corecoreprocessesprocesses.. ExamplesExamples includeinclude AccountingAccounting,,RecruitmentRecruitment,, TechnicalTechnical supportsupport..



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AA businessbusiness processprocess beginsbegins withwith aa customerscustomers needneedandand endsends withwith aa customerscustomers needneed fulfillmentfulfillment..ProcessProcess orientedoriented organizationsorganizations break break downdown thethebarriersbarriers ofof structuralstructural departmentsdepartments andand trytry toto avoidavoid

functionalfunctional silossilos.. AA business business process process cancan be be decomposeddecomposed intointo

severalseveral subsub--processes, processes, whichwhich havehave theirtheir ownownattributes,attributes, but but alsoalso contributecontribute toto achievingachieving thethegoalgoal ofof thethe supersuper--processprocess.. TheThe analysisanalysis ofofbusinessbusiness processesprocesses typicallytypically includesincludes thethe mappingmappingofof processesprocesses andand subsub--processesprocesses downdown toto activityactivitylevellevel..



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BusinessBusiness ProcessesProcesses areare designeddesigned toto addadd valuevalue forforthethe customercustomer andand shouldshould notnot includeinclude unnecessaryunnecessaryactivitiesactivities.. TheThe outcomeoutcome ofof aa wellwell designeddesignedbusinessbusiness processprocess isis increasedincreased effectivenesseffectiveness (value(value

forfor thethe customer)customer) andand increasedincreased efficiencyefficiency (less(lesscostscosts forfor thethe company)company)..

BusinessBusiness ProcessesProcesses cancan be be modeledmodeled throughthrough aalargelarge numbernumber ofof methodsmethods andand techniquestechniques.. ForFor

instance,instance, thethe BusinessBusiness ProcessProcess ModelingModeling NotationNotationisis aa BusinessBusiness ProcessProcess ModelingModeling techniquetechnique thatthat cancanbe be usedused forfor drawingdrawing business business processes processes inin aaworkflowworkflow..



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Technology & the indicators of

CompetivenessCompetitiveness is a process by whichCompetitiveness is a process by which

one entity strives to outperform anotherone entity strives to outperform another..

To be Competitive:To be Competitive:the factors arethe factors are

AbilityAbility

Desire to WinDesire to WinCommitment or PerseveranceCommitment or Perseveranceandand

Availability of certain ResourcesAvailability of certain Resources


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CompetivenessThe attributes, where the competitiveness lies.The attributes, where the competitiveness lies.

the factors arethe factors are

CostCost

TimeTime

QualitiesQualities andand

ServicesServices


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CompetivenessThe range, where the competition goes on.The range, where the competition goes on.

the markets arethe markets are

LocalLocal

RegionalRegional

NationalNational andand InternationalInternational


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The Competitiveness Pyramid

HighHigh

StandardStandard

ofLivingofLiving

((Micro LevelMicro Level))

TradeTrade

ProductivityProductivity

(Quality should Exist)(Quality should Exist)

Investment in Productive FacilitiesInvestment in Productive Facilities

(Factories, R&D, Technology)(Factories, R&D, Technology)


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Management ofTechnology &

Global CompetivenessMOT plays a vital role in the starting / creation &MOT plays a vital role in the starting / creation &

maintenance of global competitivenessmaintenance of global competitiveness..

the activities takes place at National, International / Macrothe activities takes place at National, International / MacroLevel or at the Firm / Micro Level areLevel or at the Firm / Micro Level are

Create an Economic Growth Policy through Technology Policy asCreate an Economic Growth Policy through Technology Policy as

major Contributormajor Contributor

Providing

Infrastructure support of Technological Felicitation ofProvidingInfrastructure support of Technological Felicitation ofCommerce & Trade along with HR & other resourcesCommerce & Trade along with HR & other resources

Encourage Cooperation between Govt., Industry, Education &Encourage Cooperation between Govt., Industry, Education &

ResearchResearch

Support Technological Innovation and R&D activitySupport Technological Innovation and R&D activity

Promulgate Guidelines to strengthen Environment & SocialPromulgate Guidelines to strengthen Environment & Social

StructureStructure


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Management ofTechnology &

Global CompetivenessCompetitiveness of Firms, the Macro Level ScenarioCompetitiveness of Firms, the Macro Level Scenario..

Develop a Culture of value of Technology as a Strategic ForceDevelop a Culture of value of Technology as a Strategic Force

Understand the Dynamics of the Process of TechnologicalUnderstand the Dynamics of the Process of TechnologicalInnovationInnovation

Monitor & Forecast the Technological ChangesMonitor & Forecast the Technological Changes

Develop & adopt the Effective Methodologies to Measure theDevelop & adopt the Effective Methodologies to Measure the

Impact of New TechnologyImpact of New Technology

Facilitate

Implementation of Technology in operations &FacilitateImplementation of Technology in operations &infrastructure developmentinfrastructure development

Prepare, Train & Hire Proper Work Force to implement NewPrepare, Train & Hire Proper Work Force to implement New

TechnologyTechnology

DevelopDevelop OrganisationalOrganisational structure to permit Effective & Efficientstructure to permit Effective & Efficient

implementation of Technological Changeimplementation of Technological Change

Develop appropriate reward system for Employees & ManagersDevelop appropriate reward system for Employees & Managers


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# Management of Technology