ENPR 31042

Principles and Practice of Technology

Management

Dr. Chamli Pushpakumara

Faculty of Computing and Technology
2021
 Session 2: At the end of this lecture, you should be able to:
Components 1. describe the need to effectively manage technology in
the current business environment.
of Technology 2. define the term “technology” in a boarder perspective in
order to manage the technology effectively.
 Technology Management
Science & Engineering Business Management
Strategic/Long-term Technology Issues
Science and Technology Policy
Process of Technological Innovations
R&D Management
R&D Infrastructure and Technological Change Finance
Discipline-based knowledge Technological Entrepreneurship and Marketing
Engineering Systems New Ventures Business Policy/Strategy
Computing Applications Product/Process Life Cycles Control / Accounting
Manufacturing Technology Technology Forecasting and Planning Organisational Behaviour
Design (DFA,, DFM, etc) Technology Innovations and Strategic Planning Human Resource
Risk Analysis Technology Transfer Management
Control Theory Role of Multinational Corporations Operations Management
CAD/CAM Technology and Economic Analysis Managerial Decision
Quality Assurance/Statistics Technology and Human, Social and Theory
Operations Research Cultural Issues Macroeconomics
MIS/DSS Manufacturing, Marketing and After International Business
Reverse Engineering Market Interface Microeconomics
Emerging Technologies Technological Change and
Organisational Structure
Management of Technical Projects
Financing Technology and
Financial Decision Making

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Management of
Technology and
Innovation
A definition:
“Linking engineering, science
and management disciplines
to plan, develop and
implement technological
capabilities to shape and
accomplish the strategic and
operational objectives of an
organisation”
 • Need to be understood fully to be managed properly
• A broad classification:
• A tangible component
• Hardware, material technology, capital goods,
apparatus, tools and equipment ..
• An intangible component
• Software, brainware, theories, technical and
Technology commercial information, know-how, skills, systems
and control structures, coordination, motivation,
reward schemes
• Technology cannot be treated anymore as a “just a thing”
or simply a “black box”
• To avoid this problem of different interpretations it is
necessary to open the “black box”.

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 • Process technology consists of commonly
available embodiment forms of technology for
conversion of inputs to marketable outputs
• an object-embodied physical facilities
TECHNOWARE,
Components
• a person- embodied human abilities
of process HUMANWARE,
technology • an information- embodied documented facts
INFORWARE, and
• an institution- embodied organizational
framework, ORGAWARE.

K Ramanathan, “The polytrophic components of manufacturing

technology”, Technological Forecasting and Social Change, 46(3), 1994
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 • Includes physical technologies such as
• Machines and equipment needed for
process, Software to operationalise
machines, Tools to maintain
machines, Spare Parts needed to
repair machines, Components
needed to make product
• Carries out the transformation process
based on a set of decisions to generate
desired output
Technoware • Decisions are needed to guide the
transformation process for effective use
• Information processing:
sensing>analysis>actuation
• In a business, TECHNOWARE changes
through periodic substitution of old by
new: Technology lifecycle

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 • Includes skills, craftsmanship, knowledge,
expertise, creativity etc. needed to realize
the potential of Technoware
• Consists of “Contact Humanware”
&“Support Humanware”
• Contact humanware refers to skills of
operators of the technoware to operate
Humanware machines
• Support humanware refers to skills of
maintenance crew and indirect technoware
use facilitators
• Humanware changes through a process of
progressive learning of new things

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 • Refer to facts and formulae, design
parameters, specifications, manuals,
theories, blueprints, etc.
• Enables quicker learning and savings in
Inforware time and resources
• INFORWARE changes through a process
of cumulative acquisition of knowledge

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 • Effective organisational support needed to make
the best use of technoware and humanware
• Includes organizational factors such as methods,
techniques, linkages, practices
• Orgaware coordinate all productive activities of
the enterprise for achieving purposeful results
Orgaware • Effective use of technoware and humanware
really depends on the ability of the orgaware
used by the firm.
• Orgaware changes through a process of evolving
arrangements and practices

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Story of IKEA
(video)

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 • All four components of technology are required
simultaneously by all business units performing
specific value addition functions
Technology • Relative importance of different technology
components components at the workplace varies following a
particular pattern
at workplace • E.g. With the advancement of physical
facilities need for blue collar workers has
diminished and importance of knowledge and
methods widely felt

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 • All four distinctive but interrelated.
• All four required for both production and service
Technology activities
components • The inputs and outputs may be different but the
for production action of technology as the transformer is the
same in both cases.
& services
• Four components of technology utilized for any
specific production or service activity make
unique contribution in adding market value to
outputs.

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 • For any productive activity all 4 components of
technology are complementary and required
simultaneously
• Attempting any kind of transaction without
Dynamic TECHNOWARE is impractical
interactions of • Without HUMANWARE physical facilities
components remain idle
• Without INFORWARE human abilities take
long time to learn and hence inefficient
• Without ORGAWARE enterprise is wasteful
and ineffective

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Technological Capabilities

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 • Often owning technology is often confused with
having technological capability.

What is a • Most critical aspect is ability to make optimum

use of available technologies and the ability to
technological manage technological change.
capability? • An enterprise may obtain the components of
technology in 2 ways – either BUY or MAKE
• To use bought technology or make technology
components, experience of DOING and solving
problems needs to be accumulated
• This gives rise to technology capabilities

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 • Technology capabilities are important because an
enterprise must be able to take advantage of new
opportunities of the changing world.
• Distinction between technology components and
technological capability : Technology
components are the means, but technological
Technological capability gives real power
capabilities • Availability of all four components in an
enterprise is a necessary but not a sufficient
condition for competition
• For effective & efficient utilization of technology
resources, performing various activities in the
value chain, an enterprise must also possess
technological capabilities
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 Technological Capability is defined:
“as a set of functional abilities, reflected in the
firm’s performance through various technological
activities and whose ultimate purpose is firm
A definition level value management by developing difficult
to copy organizational abilities ” (Panda &
Ramanathan, 1995)

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 A simple classification in which technological
Classification capabilities can be viewed as consisting of four
of categories:

technological • Operative capabilities

capabilities • Transaction capabilities

• Innovative capabilities, and
• Supportive capabilities.

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 • Operative capability refers to the continuing ability of a
firm to effectively transform inputs into outputs in
accordance with the business strategy of the firm.
• It consists of the following capability elements:
• Capability to effectively utilize available plant and
equipment

Operative • Capability to plan and control production operations

capability • Capability to carry out troubleshooting and good

predictive, preventive and emergency (breakdown)
maintenance
• Capability to quickly change over to new models
• Capability to use computerized information and
control systems to provide information support and
networking for production operations.

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 • Transaction capability refers to the ability of a firm to effectively
plan and implement technology transactions.
• It consists of the:
• Capability to justify and specify clearly the technologies to
be bought/sold, based on detailed engineering studies and
translation of basic process parameters into layout, plant and
Transaction equipment;

capability • Capability to identify suitable sellers/buyers of technology

and carry out sound technology, strategic and resource fit
assessments;
• Capability to identify the most suitable mechanism(s) for
buying/selling technology; and
• Capability to negotiate effective terms for the transaction of
the technology.

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 Types of technological innovation
• Radical innovations (discontinuous innovations):
• Established new sets of core components, for example the
transistor, the steam engine.
• Usually are based on new scientific phenomena.
• Systems innovations (architectural innovations):
Innovative • Most of the components are modified and integrated into a new
whole (For example from desk-top to lap-top computer), or
capability • Create a new functionality by assembling existing technologies
and components/parts in new ways. For example, the steam
engine was put on wheels to become the train, gasoline engines
were combined with carriage and bicycle technologies to create
automobiles.
• Incremental innovations:
• Only served to refine and extend established designs and
components.
• For example the next generation of Microsoft Word.

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 • Technological innovations also divide as
application into product or process innovations.
• Product innovation is the introduction
into the market of a new type of
technological product
Innovative • Process innovation is the introduction
capability into the firm or market a new type of
technological production process.

• Product or process innovations can be either

incremental, system or radical.

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 • Innovative capability consists of:
• Capability of a firm to reverse-engineer
acquired technology
Innovative • Capability to carry out product innovations
capability (either incremental, system or radical)
• Capability to carry out process innovations
(either incremental, system or radical)

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 • Supportive capability refers to the capability of a firm to
develop, integrate and improve operative, transaction, and
innovative capability.
• This includes:
• Capability to formulate a technology-based development
scenario in the light of a strategic vision.
• Capability to identify funding sources and obtain funds at
Supportive competitive rates for expansion and growth.
• Capability to develop expeditionary and future- oriented
capability market intelligence.
• Capability to effectively access necessary material inputs
for production.
• Capability for undertaking project planning and
execution.
• Capability for planning and implementing programs for
sustained human resources development.

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 • A firm may not need all the technological
capabilities from the beginning.
• Depending on its vision and competitive
Technological environment a firm may gradually accumulate
components and the desired technological capabilities.
capability • However, for a particular transformation
operation a firm must have the necessary four
interrelationship components of technology to compete.
• With the gradual development of an enterprise
the sophistication of both the components and
capabilities must increase.

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Technological components and capability
interrelationship

CP, Dept of Industrial Management, UoK 27

Technological
components
and capabilities
for the future–
4th Industrial
Revolution
(video)
Questions?
Thank you.