Technological Technological environmentenvironment

Features of technologyFeatures of technology Impact of technology onImpact of technology on

SocietySociety Business organizationBusiness organization Economic effects of technologyEconomic effects of technology

Management of technologyManagement of technology Status of technology in IndiaStatus of technology in India

Technology policyTechnology policy Institutional and other facilities to promote Institutional and other facilities to promote

science and technologyscience and technology

J.K. Gilberth defines technology as a J.K. Gilberth defines technology as a “systematic application of scientific “systematic application of scientific or other organized knowledge to or other organized knowledge to practical task”.practical task”.

Technology helps convert ideas into Technology helps convert ideas into useful products.useful products.

Technology enabled people to Technology enabled people to generate, preserve and distribute generate, preserve and distribute energy, discover new materials, save energy, discover new materials, save lives, introduce machines to do work lives, introduce machines to do work of human beings, increase living of human beings, increase living standard, probe deep into seas and standard, probe deep into seas and space in search of new treasures and space in search of new treasures and much more.much more.

Difference between science Difference between science and technologyand technology

ScienceScience In pursuit of In pursuit of

knowledgeknowledge

People involved People involved known as scientists.known as scientists.

Motivating factor is Motivating factor is to satisfy curiosity.to satisfy curiosity.

TechnologyTechnology In pursuit of socio-In pursuit of socio-

economic gainseconomic gains People involved People involved

known as known as engineers.engineers.

Motivating factors Motivating factors is to bring out is to bring out need satisfying need satisfying products.products.

Features of technologyFeatures of technology

Used as one of the basic resource as Used as one of the basic resource as land and human capitalland and human capital

It is dynamic by nature.It is dynamic by nature. Its effects are wide spread.Its effects are wide spread. It is self reinforcing.It is self reinforcing. Is a complex system.Is a complex system.

Technology and societyTechnology and society

High expectations of consumers.High expectations of consumers. System complexity.System complexity. Social changeSocial change It directly changes the patterns of It directly changes the patterns of

social life.social life.

Technology and economyTechnology and economy

Increased productivity.Increased productivity. Need to spend on R &DNeed to spend on R &D Technology discontinuity.Technology discontinuity. Firm should carry out cost benefit Firm should carry out cost benefit

analysis of whether to develop their analysis of whether to develop their own R&D or outsource technology?own R&D or outsource technology?

Make decisions on product Make decisions on product innovation or process innovations.innovation or process innovations.

Jobs tend to become more Jobs tend to become more intellectual.intellectual.

Problem of techno structure.Problem of techno structure. Traditional incentive fail to motivate.Traditional incentive fail to motivate. Retention is a problemRetention is a problem Difficulty in placing people in a pattern.Difficulty in placing people in a pattern.

Need for bio-professional and Need for bio-professional and multinational managers. multinational managers.

Increased regulation and stiff oppositionIncreased regulation and stiff opposition Insatiable demand for capital.Insatiable demand for capital. Rise and decline of products and Rise and decline of products and

organization.organization. Business boundaries redefined.Business boundaries redefined. Technological change in the form of Technological change in the form of

process and materials innovations may process and materials innovations may contribute to other businesses or contribute to other businesses or industries too.industries too.

For multi product companies For multi product companies technological change may bring technological change may bring multiple impacts.multiple impacts.

Plant level or business level Plant level or business level implicationsimplications

Technology and organization Technology and organization structurestructure

Fear of riskFear of risk Resistance to change.Resistance to change.

It may occur due to low profits and It may occur due to low profits and reduced growth ratereduced growth rate

Powerful labour resistance to changes Powerful labour resistance to changes in methodsin methods

Small size or fragmented activities.Small size or fragmented activities.

Sizable investments in long life Sizable investments in long life single use facilities.single use facilities.

Psychological and social Psychological and social commitments to existing products, commitments to existing products, processes and organization.processes and organization.

Factors affecting the Factors affecting the selection of technologyselection of technology

Product competitiveness and market Product competitiveness and market potential.potential.

Customer preference.Customer preference. Speed of introduction of new Speed of introduction of new

products and processes.products and processes. Comparative study of technology Comparative study of technology

gap between India and outside.gap between India and outside.

Availability of technology for import Availability of technology for import in strategic area.in strategic area.

Suitability of technology in the Suitability of technology in the context of organizational culture.context of organizational culture.

Outflow of resources, foreign Outflow of resources, foreign exchanges etc.exchanges etc.

Mechanisms of technology Mechanisms of technology transfertransfer

Technology is transferred from one Technology is transferred from one country to other through a wide country to other through a wide variety of mechanisms.variety of mechanisms.

Non –commercial mechanismNon –commercial mechanism International commercial International commercial

transactions.transactions.

Non commercial Non commercial mechanismmechanism

Exchange of information through Exchange of information through persons attending international persons attending international seminars and conferences.seminars and conferences.

Education and training at foreign Education and training at foreign universities.universities.

Exchange of information through Exchange of information through technical cooperation programmes technical cooperation programmes of international organizations.of international organizations.

Commercial means of Commercial means of technology transfertechnology transfer

Direct investment by foreign Direct investment by foreign companies.companies.

Collaboration agreements.Collaboration agreements. Exports of parts.Exports of parts.

Technology transfer Technology transfer process:process:

Two phase process:Two phase process: Technology selectionTechnology selection Absorption phase.Absorption phase.

The first stage is selection of The first stage is selection of technology. This need basically technology. This need basically technical expertise to evaluate and technical expertise to evaluate and determine the suitability of determine the suitability of technology and consideration of technology and consideration of social background.social background.

The selection of technology also The selection of technology also depends on national policy.depends on national policy.

Absorption phaseAbsorption phase

This phase can be divided into 3 This phase can be divided into 3 steps:steps:

Information transferInformation transfer AdaptationAdaptation Adoption or ingestion period.Adoption or ingestion period.

Technical information includes:Technical information includes: Design Design Tools and other spare parts Tools and other spare parts

required.required. Quality standards.Quality standards. Collaborator’s practice.Collaborator’s practice. Dissemination processDissemination process Earlier experiences.Earlier experiences.

From where to get From where to get information?information?

Technical literatureTechnical literature Trained peopleTrained people Conferences.Conferences.

Adaptation stageAdaptation stage

A systematic adaptation of designs.A systematic adaptation of designs. Adequate information on local Adequate information on local

materials and capabilities of suppliers materials and capabilities of suppliers are to be obtained in case of are to be obtained in case of components which are to be replaced components which are to be replaced at subsequent stage.at subsequent stage.

In case of substitute materials the In case of substitute materials the materials are to be obtained, tested materials are to be obtained, tested and approve before use in production.and approve before use in production.

Inspection plans must be adequate.Inspection plans must be adequate. Process capability of the machines is Process capability of the machines is

to de determined for the different to de determined for the different components.components.

Adequate QC and testing equipment Adequate QC and testing equipment must be identified and procured in must be identified and procured in time.time.

Proper record of field performance Proper record of field performance and analysis are to be ensured.and analysis are to be ensured.