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INTRODUCTION TO MANAGEMENT
OF TECHNOLOGY (MOT)
Nurbaity Aqmar Mahamud
Dept. of Construction and Real Estate
Management, FPTPK, UTHM
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Introduction: Technology and Society
Throughout human history, technology has had a profound effect on human
development and on the progress of civilization.
It took humans about 2 million years to develop from nomads foraging for
food in east central Africa to agricultural settlers capable of augmenting
their power with tools and domestic animals.
This significant development ushered in the dawn of civilization. The next several thousand years witnessed the development of the wheel,
the chariot, the water wheel, and mechanicals implements.
It was only less than two centuries ago that the steam engine and the
factory systems ushered in the start of the Industrial Revolution.
Energy generated from water and from mechanical, electrical, and nuclearsources enabled humans to achieve unprecedented change in their way of
life.
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Cont ~
Yet in no other time in history has technology been as pervasive in human
lives as it is today.
To an ever-increasing extent, it has invaded every aspect of human
endeavor.
Government operations, global corporations, private enterprises, and
individuals are highly dependent on technology for their success. The rate of technological progress and societys dependence on technology
only promises to intensify as the world moves into the 21st century.
In spite of the fact that technology is the most pervasive force influencing
human lives today, it remains mysterious to many people, and its exact
definition eludes most of the public and many professionals.
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Definition of Technology
Technologycan be defined as all the knowledge, products,processes, tools, methods, and systems employed in the
creation of goods or in providing services.
In a simple terms, technology is the way we do things. It is
the means by which we accomplish objectives. Technology is the practical implementations of
knowledge, a means of aiding human endeavor.
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Cont ~
Zeleny (1986) proposed that any technology consists of threeinterdependent, codetermining and equally important
components:
Hardware: The physical structure and logical layout of the
equipment or machinery that is to be used to carry out the
required tasks.
Software : The knowledge of how to use the hardware in order
to carry out the required tasks.
Brainware: The reason for using the technology in a particular
way. This may also be referred to as the know-why.
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Cont..
In addition to the three components, a fourth one must beconsidered independently, for it encompassed all levels of
technological achievements:
Know-how: The learned or acquired knowledge of or technical
skill regarding how to do things well. Know-how maybe a
result of experience, transfer of knowledge, or hands-on-
practice. People acquire technical know-how by receiving
formal or informal education or training or by working closely
with an expert in a certain fields. Know-how can also be
acquired through a recognized method of technology transfer,in last topic.
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What is Management?
Management is an art and to some extent a technology. It is the art of carrying on business. It involves directing and
controlling an organization and steering it towards achieving
its objectives.
It draws on knowledge, experience, and an understanding ofhuman and organizational behaviour.
Management is also a technology, as it the means by which the
desired goals of an enterprise are achieved.
Management functions in organization include planning,organizing, staffing, motivating, and controlling activities of the
organizations.
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What is Management of Technology?
Management of Technology (MOT) is an interdisciplinary fieldthat integrates science, engineering, and management
knowledge and practice.
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 standards of living andquality of life.
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Definition of MOT
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NRC (1987): Management of technology links engineering, science, and
management disciplines to plan, develop, and implement
technological capabilities to shape and accomplish the
strategic and operational objectives of an organisation
MOT industrial practice: identification and evaluation of
technological options, management of R&D itself including
determining project feasibility, integration of technology into the
companies overall operations, implementation of new technologies
in a product and/or process
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Definition of MOT
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Dussage(1991) Management of technology is a practice of integrating
technology strategy with business strategy in a company.
This integration requires the deliberate co-ordination of
research, production, and service function with the
marketing, finance, and human resources function of the
firm
Tarek M. Khalil (2000)
Management of technology (MOT) is an interdisciplinary
fields that integrates science, engineering, and
management knowledge and practices (Figure 1.1).
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Figure 1.1: The Interdisciplinary Nature of
MOT
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ENGINEERIN
G
NATURE
SCIENCE
SOCIAL
SCIENCE
INDUSTRIAL
PRACTICE
BUSINESS
THEORY
MOT
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s
Figure 2.1: SPINNING OUT TECHNOLOGY
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Technology must connect with customer needs to satisfy those needs and
achieve societal goals. Technology is the engine of economic growth.
Society needs
Market needs
Technologyconversion
Technologycreation oracquisition
Production
The customer
Standards of living, socialand environmental issues
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History of MOT
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The emergence of management of technology as adiscipline in its own right is due to the fact that: There have been changes in the business, political and social
environments of firms, R&D spending has grown in absolute terms andas a percentage of GNP, and managers have become concerned with'core competencies as a source of competitive advantage
There has been a shift toward external networks and leveraging theentire corporate knowledge base
Due to the fact that technology as one of the primary factor in thewealth creation, as the strategic dimension of technology and itssignificant competitive value is acknowledge in Management of
Technology
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History of MOT
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Technology management in its present form has existedsince the early 1980s, but its roots can be tracked back to
the early 1970s under such titles as Strategic
Management,
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Evolution of MOT
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R&D Management: Rational was to provide funds for R&D (appropriate development) in
order to harvest benefits from the higher levels of performance
resulting from R&D efforts
Innovation Management
Focus innovation to commercialization
Technology Planning (technology strategy)
Due to increased global competition, sustained progress brought
technology strategy
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Evolution of MOT
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Strategic management of technology Technology based strategic MOT (effective management of
technology
Organisation and technology based MOT (human resources
and organizational measures to be integrated with
technological development
Integrated MOT (technology and business)
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Evolution of MOT schools of thoughts
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Refinement of theory and development of its own rights
Source: Drejer (1996)
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Schools R&Dmanagement
Innovationmanagement
Technologyplanning
Strategic MOT
Perceived
environment
Stable, simple
and expanding
Changing, but
predictable
Changing and
discontinuous
Changing and
discontinuous,unpredictable,with newdimension
Scope Manage R&Dresources
Manageinnovation in theentire company
Managetechnologyacross the
company
Manage andintegratetechnology with
other aspects
Issues People, ideas,funds, culture
Conception,invention andexploitation oftechnology
Analyze andplan thecomplexprocess oftechnologicaldevelopment
Deal with all thedimension oftechnologyevolution
Tools for makingdecision
Technologyforecasting
Delphiforecasting,Project mgt ofthe innovationprocess
Scenarioforecasting,technologyanalysis,planning
Strategic MOT,Org-Techapproach toMOT, IntegratedMOT
Source: Drejer (1996)
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R&D Management
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Nature and Scope of MoT
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Three contexts exist within which the management of technology is
commonly considered:
Technology Management and the Company: How a business can manage its technology for competitiveness and business
success.
Technology Management and the Nation: How a country or region can use technology to enhance the competitiveness of
the businesses that operate in it, for economic development and to createwealth among its people.
Technology Management and Society: How to ensure that technology is managed for the good of people and the
environment, and to minimise any negative effects, such as pollution.
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Nature and Scope of MoT
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Technology management issues can exist at many levels ofhuman organisation.
The working team
The enterprise
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Team Levels
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Technology management issues here generally relate to the
skill set and personal attributes of the team members. It is
essential to consider ideas such as skills matrix, multi-skilling
and team dynamics so that the technology inherent in the
human resource is fully exploited. Conversely, teams must be
structured in ways to enable optimum efficiency in production(process technologies) or maximum creativity in design
(product technologies).
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Enterprise levels
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Technology must be managed carefully so that critical andrisky investments will affect competitiveness as opposed
to business failure.
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MoT in Business Processes
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Knowledge
acquisition
Product
creation
Productsupply
TechnologyManagement
People
Development
Business
planning
Knowledge
acquisition
Product
creation
Productsupply
TechnologyManagement
People
Development
Business
planning
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Building up Technology Management
Competences
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TECHNOLOGY-CONTINGENT FIRMS TECHNOLOGY-INTENSIVE FIRMS
LARGEFIRMS
Large Technology-contingent FirmsNeed to increase productivity and qualityby means of "business process re-engineering" and "lean production"methods, which require organisationalinnovation in close association withinformation technology. These firms alsoneed to develop strategies and skills to
accommodate the increasingtechnological sophistication of processequipment, materials and components.
Large Technology-Intensive FirmsResponding to competitive pressureshave restructured their R&D in recentyears to link it better with immediatebusiness demands. They now face thechallenge of developing long-termstrategies, which will require them tofocus on core technologies, collaborative
ventures, and organisationalmechanisms to balance corporate anddivisional interests.
SMAL
LFIRMS
Technology-contingent SMEsIs the biggest group of companies inEurope; their central concern is to keepabreast of developments in processequipment. The main problem they faceis a lack of basic technological know-
how, which also leads to difficulties inidentifying their technological needs andtaking advantage of the "knowledgeinfrastructure" intended to serve them.
Technology-intensive SMEsTend to be highly specialised in nichemarkets and need to keep abreast ofchanges in associated technologies thatthey cannot master in-house. They oftenlack the strategic capabilities to cope
with broader technology trends, co-operation and/or growth, to match theirspecialist skills.
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Tutorial 1
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Why do you think Management ofTechnology important for
businesses?