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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.

    6

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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?