Technology Planning Vii Quarter by Dr. G. Sunitha, Asst. Professor

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TECHNOLOGY PLANNING

VII QUARTER
By
Dr. G. Sunitha, Asst. Professor
SCHOOL OF MANAGEMENT
NATIONAL INSTITUTE OF TECHNOLOGY
WARANGAL

hat is Technology Planning?


Technology Planning is a central component of corporate
business planning. It is needed both at corporate level and at the
strategic business unit (SBU) level.
Ex:
General
Electric
(Power
&
Water, Oil
and
Gas, Aviation, Healthcare, Transportation and Capital), Motorola
(Motorola Mobility and Motorola Solutions) and GTE
(Telephone, Internet and Television sets) Companies view
technology planning as vital to their ability to offer customers
superior value based on superior technology.
This planning is central managerial function leading to other
important management functions. This planning may be short
term or medium terms or long term. It is based on objective of
the organization.

ppropriate Technology:
Technology is appropriate with two conditions
1. it is in accordance with the development objectives
2. it is suitable to the surroundings for which it has been
developed.
DDT (Dichloro Diphenyl Trichloroethane)
Coal based technology for power generation was appropriate at
one time but became inappropriate due to technological
substitution process.
Some of the accepted criteria at macro level for selecting
appropriate technologies are
1. Improving living standards
2. Provide Employment
3. Industry Development
4. Energy savings
5. Regional Economic Balance
6. Conservation of resources (It should provide for waste
recycling)

Technology Planning Framework:


Forecast the Technology
Analyse and Forecast the Environment
Analyse and Forecast the Market / User
Analyse the Organisation
Develop the mission
Design organizational actions
Put the plan in actions

Forecasting
It isTechnology
a first step in technology planning. It provides

vision of the future as a guide of the present in


anticipation of future states. If you forecast well
you can seize the opportunities in a timely
manner.
The
following
diagram
represents
three
extrapolations of the possible future growth
pattern of technology.
Characteristics and Physical limit of the
Technology
Social and Environmental factors influencing its
development
Marketing
conditions
compared
to
its
competitors.

Forecasting
Technology
Technology
Discontinuity

Forecasting
Technology
S curves
of Transportation Speed

Forecasting
Technology
Porter
indicate that

the attributes of technology


most often forecast are 1) Growth in functional
capability
2) Rate of replacement of an old
technology by a newer one
3) Market
Penetration(full
extent
recognition)
4)
Diffusion(Spreading) 5)Likelihood and timing of
technological breakthroughs (Sudden)
He described
various methods of technology
forecasting
Monitoring
Expert Opinions
Trend Analysis
Modeling

Forecasting
Technology
Credibility
and Utility
An accurate information base
Clearly described methods and models
Clearly defined ad supported assumptions
Quantitative expression whenever possible
A stated level of confidence in the forecasted
information

Critical Technologies and


Technology
Maps
National Critical
Technologies
U.S Govt. Established a Panel for National
Security and prosperity
William Phillips, Panel Chair Submitted in
March 1991 to US President.
It identifies that 22 Technologies considered
essential for the US
Another agencies like Dept. of Commerce
Emerging Technologies and Dept. of Defense
Critical Technologies also identified various
technologies for the nations growth.

Materials
Materials synthesis and processing
Electronic and photonic materials
Ceramics
Composites

Critical Technologies and


Manufacturing
Technology
Maps
Flexible computer integrated manufacturing
Intelligent processing equipment
Micro and non fabrication
System management technologies

Information & Communication


Software
Micro electronics and optoelectronics
High performance computing and networking
Sensors and signal processing
High definition imaging
Data storage and peripherals
Computer simulation and modeling

Critical Technologies and


Bio-Technology
Materials
and Process
Technology
Maps
Applied molecular biology
Medical Technology
Aeronautics and Surface Transportation
Aeronautics
Surface transportation technologies
Energy and Environment
Energy Technologies
Pollution minimization remediation and waste
Management

Critical Technologies at Firm Level


At the firm level, technology forecasters, R & D
Managers and technological gate keeper may
develop a map of technologies of potential
relevance to their firms products or services.
Betz (1980) proposed the concept of technology
push and market pull strategy to be used to map
the areas and direction of rapid technological
changes.
Those areas are categorized into six categories.
They are
1. Components (a part or element of a larger whole,
especially a part of a machine or vehicle)
2. Devices (a thing made or adapted for a particular
purpose)
3. Processes
4. System

Critical Technologies at Firm Level

Porter (1991) report on a different format for map of


technologies related to computer systems, one introduced
by Cunningham. A ranking of importance is given to each
one of the related technologies.

Critical Technologies at Firm Level


Software
Storage
Technology
Computer
Architecture
Input Devices
Date Base
Display Tech
CAD
CASE
CIM

Output Devices
Printers
User Interface

Natural
Language
understanding
Info
Transmission
Neural
Video equipments Networks
Computers
& Computer
Science
Society
Audio Equipments Operating
High
LevelSystems

Motorolas Technology
Road Map
well recognized for its technology

It is
based
competitive strategy.
The company has developed considerable skill in
creating new products and bringing them to
market in a timely manner
It doesnt neglected any technology element in
their manufacturing
It developed a corporate wide technology
planning tool. It is called Technology road map.
It is developed for emerging technology and
another one for each product.
It appointed a committee and it is responsible
for updating the technology road map.

Motorolas Technology
Road map provides
Road Map

1. An
objective
evaluation
of
Motorolas
capability in the technology
2. A comparison of Motoralas capabilities and
those of its competitors, today and in the
future.
3. A forecast
of the progress
of technology
Technology
Road
Map 8
Description of theSections
business
Technology forecast
Technology Road Map Matrix
Quality
Allocation of resource
Patent portfolio
Product description and status reports
Minority Report

Technology Road Map 8


Sections

The B-Tech Approach to


Planning
Battelle, a leading
institute in technological
innovations and management, developed a
comprehensive approach to technology planning.
This is called B. Tech Approach was developed
by Stacey and described by Bhalla (1987)
Technology planning as a major set of activities
much larger than the traditional planning for R &
D in companies
Interaction
of
business
and
technology
strategies is a important functions that should be
performed in a comprehensive planning efforts.
B Tech recognizes the important of integrating
technology strategy with business strategy

The B-Tech Approach to


Planning

The B-Tech Approach to


Planning

Technology Audit
A technology audit is an analysis performed to
identify the strengths and weakness of the
technological assets of organization.
This applies to technologies of the entire value
added functions in the firm, including product
technology,
productions
technology,
service
technology, and marketing technology.
The objective is to develop a base upon which
technology strategy and associated plans can be
formulated.
Garcia Arreola (1996) developed a TAM
The objectives are 1. To determine current
technology status
2. To stress areas of opportunity
3. To take advantage of the firms
strong
capabilities

Technology Audit should


provide answers to the
What are the technologies on which
following
questions
business depends?

the

How does the companys technology position


compare to its competitors?
What is the life cycle position on which the
company depends?
Where is the companys strength?
Is the company effectively protecting its
distinctive core technologies?
What is the value of the companys technology
to its customers?
Does the company have technological assets
that it can share with other companies?
What emerging technologies both inside and
outside the company could influence customers?

Technology Audit

Technology Audit

Technology Life Cycle


The S curve of Technological Progress
The Technology Life Cycle & Market Growth
Multi Generation Technologies
Technology and Market Interaction
Competition at different phases of TLC
Competition
with
Product
and
Process
Innovations
The performance of technology has a recognized
pattern over time that, if properly understood,
Can be of great use in strategic planning.
Neglecting this pattern a key factor in the
planning process may prove very costly to the
competitive position of a corporation.

Technology Life Cycle


The S curve of Technological Progress:

Technology Life Cycle


The Technology Life Cycle & Market Growth

Technology Life Cycle


Multiple Generation Technologies (8088, 286,
386, 486, Pentium)

Technology Life Cycle


Technology & Market Interaction
Science and Technology Push

Technology Life Cycle


Market Pull

Technology Life Cycle


Technology Push & Market Pull

Nature of Technology
Competition
with
Product
and
Process
Management

Innovations

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