Chapter 1 Intro to MOT v2

8/2/2019 Chapter 1 Intro to MOT v2

1/30

BJTH 3073

MAZRI BIN YAAKOB


2/30

CHAPTER 1

INTRODUCTIONTO TECHNOLOGY MANAGEMENT

2


3/30

CHAPTER OUTLINE

Definition of management, technologyand technology management

Framework of technology management

Technology classification/ TechnologyChoices

3


4/30

WHATISMANAGEMENT?

Art of carrying a business.

Involves directing and controlling anorganization and steering it towardachieving its objectives.

Needs an understanding of human andorganizational behaviour.

Include planning, organizing, staffing,motivating and controlling functions.

4


5/30

PLAN ORGANIZE

CONTROL LEADING

Basic

Managementfunction

5

BJTH3073

Chapter1


6/30

WHATISTECHNOLOGY?

The practical implementation of learningand knowledge by individuals andorganizations to aid human endeavor.Technology is the knowledge, product,processes, tools and systems used in the

creation of goods or in the provision ofservices (White & Bruton, 2007).

All the knowledge, products, processes,tools, methods and systems employed inthe creation in goods or providing services(Khalil, 2000).

6


7/30

DEFINITIONOFTECHNOLOGY MANAGEMENT

A field that links different disciplines to plan,develop, implement, monitor, and controltechnological capabilities to shape and accomplishthe strategic objectives of an organizations (White& Bruton, 2007).

An interdisciplinary field that integrates science,engineering and management knowledge &practice(Khalil, 2000).

Example: iBot, new solution ofwheelchair,flat&smooth surfaces-carry a person upand down the stairs Engineers design, financial experts write the

cost,marketing personnel test products (entireorganization develop product)

7


8/30

INTERDICIPLINARYNATUREOFMOT

NATURAL

SCIENCE

SOCIAL

SCIENCE

INDUSTRIALPRACTICES

MOT

BUSINESS

THEORY

ENGINEERING

8

BJTH3073

Chapter1

(Source: Khalil, 2000)


9/30

9

Management technologyRefers to the technology used to

manage organizations or certain

functions

Eg: MIS, ICT, E-commerce

Technology management


10/30

FRAMEWORKIN TECHNOLOGY MGT

Technology management creates a linkage amongscience, engineering & management disciplines.

The ability to become a competitive enterprise andsustain economic growth is affected by the economicsystem, technical capabilities & trade conditions.

10

Technology

Mgt

Science &Engineering

Disciplines

BusinessAdministration

Disciplines


11/30

MAKING DECISIONFOR MANAGINGTECHNOLOGY

The firm must determine the scale of products orservices. How it will price the products, where it will market the

products, and where it will manufacture the products.

The firm also needs to determine the scope ofproducts or services it wants to offer. Determine how it can leverage its technology and

innovations to create a total platform of products andprocesses.

11


12/30

KEYDECISIONSINMANAGINGTECHNOLOGY

The firm must determine if it wants to be a leader orfollower in its industry. Both has own benefits, but the choice will result in the firm

taking radically different measures.

Eg.Du Pont,TEFLON, RC Cola-Coca Cola,Seiko, KodakPolaroid

The firm must also determine whether it willdevelop its own new technology or buy the

technology. Each approach has benefits and drawbacks that need to

be weighed by the firm itself.

12


13/30

METHODSOFACQUIRINGTECHNOLOGY

13

Usinginternal R&D

Participatingin JV

Contractingout for R&D

Buying thetechnology

Licensing inof technology

Develop or buy technology?


14/30

USING INTERNAL R&D

Organization relies on its own human & technicalresources to develop the technology in-house.

Requires strong technical workforce.

Requires strong financial backing for R&Doperations.

Have their own laboratory /R&D department tosupport their efforts to create the technology.

14

BJTH3073


15/30

EXAMPLE (USINGINTERNAL R&D)

15

BJTH3073

PROTON BERHAD


16/30

PARTICIPATINGINA JOINT VENTURE

Two or more organizations/firms combine their know-how, financial and technological resources to developtechnologies.

16

BJTH3073


17/30

EXAMPLE (PARTICIPATINGIN JV)THECASEOF OLED

Kodak and Sanyo Electric recently formed a joint venture named SKDisplay corporation to manufacture organic light emitting diode(OLED) displays for consumer devices such as cameras, PDA andportable entertainment machines.

OLEDs enable a greater range of colors, brightness, and viewingangle than LCDs, because OLED pixels directly emit light.

This JV cost Kodak a $125 million investment (financial resources)

Sanyo will contribute less financially but will contribute moretechnical expertise.

OLEDs have been found in models of the Sony Walkman and someSony Ericsson phones.

17

JTH3033


18/30

CONTRACTINGOUTFOR R&D

Conduct R&D without having to invest heavily in an in-house R&Deffort.

Contracting out their R&D to a contract R&D company.

A contract R&D company, i.e. a company that provides R&D services.

Many companies are increasing their use of this approach to cut R&Dexpenditures.

18

BJTH3073


19/30

EXAMPLE (CONTRACTINGOUTOF R&D)

1. Gulf and Pacific Industries Sdn. Bhd.

- Manufacturer of Roselle jam, cordial andcarbonate drink.

- Contracting out R&D to MARDI.

BJTH3073 19

2. Sendayu Tinggi Body & Skincare Sdn. Bhd.

A cosmetic manufacturer were assisted through

contract research with SIRIM on new formulation andtrial production for market testing.
http://int.clarins.com/bon/int/minisites/2008_hydratation/index.cfmhttp://int.clarins.com/bon/int/minisites/2008_hydratation/index.cfmhttp://int.clarins.com/bon/int/minisites/2008_hydratation/index.cfmhttp://int.clarins.com/main.cfm?sec=pb&sub=9http://int.clarins.com/bon/int/minisites/2008_hydratation/index.cfm


20/30

LICENSINGINOFTECHNOLOGY

An organization purchases the right to utilizetechnologies owned by someone else.

There is a premium to be paid of using the name of thatcorporation and for offering its products.

20

BJTH3073


21/30

21

BJTH3073

Example (licensing in of technology)

Acquiring a franchise of a well known

corporation such as Burger King, Mcdonaldsetc.

Sony corporation bought a license for thetransistor from AT&T

Was able to widely deploy the technology in itsproducts.


22/30

BUYINGTHETECHNOLOGY

Outright purchase of technology.

Fastest way to obtain technology.

Not involve any resource commitment for technologydevelopment on the part of acquirer.

Requires building strong bridges with the supplier of thetechnology.

22

BJTH3073


23/30

EXAMPLE (BUYINGTHETECHNOLOGY)

23

BJTH3073

18 units of Sukhoi Su-30MKM -AS$900 million


24/30

CLASSIFICATIONOF TECHNOLOGY

NewTechnology

EmergingTechnology

HighTechnology

AppropriateTechnology

MediumTechnology

LowTechnology

24


25/30

NEW TECHNOLOGY

Any newly introduced or implemented technologythat has an explicit impact on the way a companyproduces products or provides services.

The technology could be around for many years,but if it is newly introduced into an organization, it isconsidered a new technology.

Computer software replace manual drafting,Internet website

25


26/30

EMERGING TECHNOLOGY

Any technology that is not yet fully commercializedbut will become so within about 5 years.

It may be currently in limited use but is expected toevolve significantly.

Genetic engineering, nanotechnology

26


27/30

HIGH TECHNOLOGY

Refers to the advances or sophisticatedtechnologies.

Utilized by a wide variety of industries having

certain characteristics.

High tech companies: Employs highly educated people

Technology is changing at a faster rate Competes with technological innovation

High levels of R&D expense

27


28/30

LOW TECHNOLOGY

Refers to the technologies that havepermeated large segments of humansociety.

Low technology companies: Employs people with relatively low level of

education

Uses manual/semi automated operation

Low R & D expense Technology base used is stable with little

change

Products to satisfy basic human needs 28


29/30

MEDIUM TECHNOLOGY

Comprises a wide set of technologies that fallbetween high and low technologies.

Refers to mature technologies that are moreaccommodating than others to technology transfer.

Examples?

Industrial automation, mobile phones

29


30/30

APPROPRIATE TECHNOLOGY

Technology that is balanced between the level oftechnology utilized and the resources required forits optimal use.

The technology could be at any level low, mediumor high.

Results in better use of labour resources and betterproduction efficiency.

30

Documents

Chapter 1 Intro to MOT v2