Relevant Issues in effective Relevant Issues in effective Management of TechnologyManagement of Technology
Dr Kampan MukherjeeDr Kampan Mukherjee
Dean(Academic)Dean(Academic)
&&
Professor, Department of Management StudiesProfessor, Department of Management Studies
ISM, DhanbadISM, Dhanbad
Technology ManagementTechnology Management
Management of any technology from its inception to Management of any technology from its inception to expiry, to create competitive advantageexpiry, to create competitive advantage
Relevant principles:Relevant principles:
I.I. Involves all management functional areasInvolves all management functional areas
II.II. Technology – either market-pulled or innovation / inputs / Technology – either market-pulled or innovation / inputs / resource pushedresource pushed
III.III.Technology Life Cycle with four stages – Technology Life Cycle with four stages – introduction, introduction, growth, maturity growth, maturity and and declinedecline
IV.IV.Impact of scale factor – efficiency achieved over time Impact of scale factor – efficiency achieved over time and with increase of volume of activities / productionand with increase of volume of activities / production
Forms of Technology advances in Forms of Technology advances in industryindustry
I.I. Product TechnologyProduct Technology: :
Use value enhancement at customers’ end.Use value enhancement at customers’ end.
II.II. Process Technology:Process Technology:
Radical change in production / conversion method for Radical change in production / conversion method for better productivity, efficiency, quality, safety etc.better productivity, efficiency, quality, safety etc.
III.III. Information Technology Services:Information Technology Services:
IT as service provider in managing data / information IT as service provider in managing data / information for management and control of all activities of any for management and control of all activities of any organization, also for data handling and communication organization, also for data handling and communication for people at largefor people at large
IV.IV. Marketing and Distribution Services:Marketing and Distribution Services:
Impact of internet and e-commerce for global marketing Impact of internet and e-commerce for global marketing and control on logisticsand control on logistics
I.I. Technology ForecastingTechnology Forecasting
Prediction of future technology for a sector, process, Prediction of future technology for a sector, process, or organization. or organization.
Important factors – change of global technology, Important factors – change of global technology, technology of prospective users, socio-economic technology of prospective users, socio-economic factors, governmental factors etc.factors, governmental factors etc.
Delphi Technique – iterative method of extracting Delphi Technique – iterative method of extracting opinions of experts for reaching a consensus.opinions of experts for reaching a consensus.
II.II. Technology SelectionTechnology Selection
Complex decision making process for selecting most Complex decision making process for selecting most feasible / viable technology.feasible / viable technology.
Feasibility – availability of skilled manpower, spare Feasibility – availability of skilled manpower, spare parts, matching with upstream and downstream parts, matching with upstream and downstream processes, foreign exchange factor, socio-political processes, foreign exchange factor, socio-political factors etc.factors etc.
Best or most worth – financial criteria like, payback Best or most worth – financial criteria like, payback period, ROI, NPV, IRR etcperiod, ROI, NPV, IRR etc
III. Technology (also Knowledge) TransferIII. Technology (also Knowledge) Transfer Process of sharing skills, knowledge, machines / Process of sharing skills, knowledge, machines /
tools, methods / process etc among organizations tools, methods / process etc among organizations for increase of accessibility of scientific and for increase of accessibility of scientific and technological development.technological development.
Also results in better technology diffusionAlso results in better technology diffusion Transfer of both Explicit and Tacit KnowledgeTransfer of both Explicit and Tacit Knowledge Tacit Knowledge – difficult, more intangibles.Tacit Knowledge – difficult, more intangibles.
Key factors – behavioral expectations or awareness, Key factors – behavioral expectations or awareness, cultural valuescultural values
Key approaches – communication, cross-cultural Key approaches – communication, cross-cultural teambuilding teambuilding
IV. Technology DiffusionIV. Technology Diffusion Very close bonding with market related information Very close bonding with market related information
and societal environmentand societal environment Process of adopting new technology by the market / Process of adopting new technology by the market /
societysociety Existence of 5 groups of people (Everett Rogers)Existence of 5 groups of people (Everett Rogers)
Innovators – 2.5%; mostly young and educated, more Innovators – 2.5%; mostly young and educated, more prosperous, risk-takersprosperous, risk-takers
Early Adopters – 13.5%; young, educatedEarly Adopters – 13.5%; young, educated Early Majority – 34%; little conservative but open to new Early Majority – 34%; little conservative but open to new
ideas, community friendly & socially ideas, community friendly & socially active active
Late Majority – 34%; older & less educated, fairly Late Majority – 34%; older & less educated, fairly conservative, less socially active conservative, less socially active
Laggards – 16%; very conservative, small firm & capital, Laggards – 16%; very conservative, small firm & capital, least educated least educated
5 stages of technology diffusion / adoption as 5 stages of technology diffusion / adoption as experienced by the prospective adoptersexperienced by the prospective adopters
Knowledge Knowledge – exposed to new technology, but not inspired or – exposed to new technology, but not inspired or motivated to seek detailed informationmotivated to seek detailed information
Persuasion – Persuasion – actively seeking information and detailsactively seeking information and details Decision – Decision – weighs advantages and disadvantages of its use; weighs advantages and disadvantages of its use;
adopt or rejectadopt or reject Implementation – Implementation – implement the technology at a lower scale implement the technology at a lower scale
for test runfor test run Confirmation – Confirmation – adopt to fullest extentadopt to fullest extent
Product DevelopmentProduct Development
General steps for Product Development:General steps for Product Development:
1.1. Idea GenerationIdea Generation
2.2. Product SelectionProduct Selection
3.3. Preliminary DesignPreliminary Design
4.4. PrototypingPrototyping
5.5. TestingTesting
6.6. Detailed DesignDetailed Design
Some relevant design tools / approaches:Some relevant design tools / approaches: Quality Function Deployment(QFD) / House of Quality Function Deployment(QFD) / House of
Quality(HOQ)Quality(HOQ) Concurrent EngineeringConcurrent Engineering CADCAD
Quality Function Deployment (QFD)Quality Function Deployment (QFD)
Translates voice of customers to technical Translates voice of customers to technical design requirementsdesign requirements
Displays requirements in matrix diagramsDisplays requirements in matrix diagrams each matrix called “house of quality”each matrix called “house of quality” series of connected housesseries of connected houses
House of Quality
Trade-off matrix
Design characteristics
Customer requirements
Target values
Relationship matrix
Competitive assessment
Imp
ort
ance
11 22
33
44
55
66
Competitive Assessment of Customer requirements with ‘A’ and ‘B’(a simple example of electric iron)
Iro
ns
wel
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asy
and
sa
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se
Competitive Assessment
Customer RequirementsCustomer Requirements 1 2 3 4 5
Presses quickly 9 B A XX
Removes wrinkles 8 AB XX
Doesn’t stick to fabric 6 XX BA
Provides enough steam 8 AB XX
Doesn’t spot fabric 6 XX AB
Doesn’t scorch fabric 9 A XXB
Heats quickly 6 XX B A
Automatic shut-off 3 ABXX
Quick cool-down 3 XX A B
Doesn’t break when dropped 5 AB XX
Doesn’t burn when touched 5 AB XX
Not too heavy 8 XX A B
En
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We
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Tim
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Customer RequirementsCustomer Requirements
Presses quickly - - + + + -
Removes wrinkles + + + + +
Doesn’t stick to fabric - + + + +
Provides enough steam + + + +
Doesn’t spot fabric + - - -
Doesn’t scorch fabric + + + - +
Heats quickly - - + -
Automatic shut-off +
Quick cool-down - - + +
Doesn’t break when dropped + + + +
Doesn’t burn when touched + + + +
Not too heavy + - - - + -
Iro
ns
wel
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asy
and
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From Customer From Customer RequirementsRequirementsto Design to Design CharacteristicsCharacteristics
En
erg
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o p
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Wei
gh
t o
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on
Siz
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f so
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Th
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of
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pla
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Mat
eria
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Nu
mb
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ach
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Tim
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450
º to
10
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Pro
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ole
pla
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Au
tom
atic
sh
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--
++
+
Tradeoff Matrix
En
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Wei
gh
t o
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on
Siz
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f so
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Th
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of
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pla
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Mat
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Nu
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s
Flo
w o
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Tim
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to
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ach
45
0º
Tim
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450
º to
10
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Pro
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r
sole
pla
te
Au
tom
atic
sh
uto
ff
Units of measure ft-lb lb in. cm ty ea mm oz/s sec sec Y/N Y/N
Iron A 3 1.4 8x4 2 SS 27 15 0.5 45 500 N Y
Iron B 4 1.2 8x4 1 MG 27 15 0.3 35 350 N Y
Our Iron (X) 2 1.7 9x5 4 T 35 15 0.7 50 600 N Y
Estimated impact 3 4 4 4 5 4 3 2 5 5 3 0
Estimated cost 3 3 3 3 4 3 3 3 4 4 5 2
Targets 1.2 8x5 3 SS 30 30 500
Design changes * * * * * * *
Ob
jec
tiv
e
me
as
ure
s
Targeted Changes in Design
SS = SilverstoneMG = MirorrglideT = Titanium
Completed House of Quality
A Series of Connected QFD HousesC
ust
om
er
req
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emen
ts
House House of of
qualityquality
Product characteristics
A-1P
rod
uct
ch
arac
teri
stic
s
Parts Parts deploymentdeployment
Part characteristics
A-2
Par
t ch
arac
teri
stic
sProcess Process planningplanning
Process characteristics
A-3
Pro
cess
ch
arac
teri
stic
s
Operating Operating requirementsrequirements
Operations
A-4
Benefits of QFDBenefits of QFD
Promotes better understanding of customer demandsPromotes better understanding of customer demands Promotes better understanding of design interactionsPromotes better understanding of design interactions Involves manufacturing in design processInvolves manufacturing in design process Breaks down barriers between functions and Breaks down barriers between functions and
departmentsdepartments Provides documentation of design processProvides documentation of design process