Ramanathan Guidelines for ITT - Presenta[session 3]

Bangladesh National Workshop on
“Planning and Implementing International

Technology Transfer in a Global Business Setting”
20 November 2007
Session 3
Important Guidelines for the Effective Management
of International Technology Transfer
Dr. K. Ramanathan
Asian and Pacific Centre for Transfer of Technology (APCTT)
United Nations - ESCAP
APCTT 1
Plan of Presentation
1. Problems Likely to be Faced in

Using the “Technology Transfer
Life-Cycle (TTLC)” Approach
2. Best Practices for Resolving the

Problems
3. Concluding Remarks
APCTT 2
1. Problems Likely to be Faced in Using the
“Technology Transfer Life-Cycle (TTLC)”
Approach
• Some common problems that can be

encountered are as follows:
 Inability to identify the technologies needed to
enhance competitiveness (Stage 1)
 Inability to specify clearly, in a holistic manner, the
components of technology needed (Stage 2)
 Inability to identify good sources of technology (Stage
2)
 Inability to assess the relative benefits of the different
offers received and link these to the payments being
sought (Stage 2)
APCTT 3
Inability to negotiate effectively and formulate
good legal agreements (Stage 3)
Lack of skills in project planning and

implementation (Stage 4 and Stage 5)
Inability to assess the overall impact of the TT

project with a view towards formulating new
programs (Stage 6)
APCTT 4
2. Best Practices for Resolving the Problems
• Resolution: Inability to Identify the Technologies

Needed to Enhance Competitiveness
 Develop skills in carrying out market and competitor analysis
 Develop expertise in carrying out technological

benchmarking studies and scanning the international
technology shelf
 Develop the skills to be able to assess, realistically, the

impact of the desired technologies on performance
parameters
 Develop the skills to assess the resources and firm-level

capabilities needed to utilise the identified technologies
APCTT 5
• Develop skills to use IT-based interventions
such as:
 Working with online market research firms
 Using the Internet for carrying out searches of

Supplier databases
 Using E-mail extensively to contact suppliers and

obtain specifications of technologies on offer
 Obtaining digital video clips with audio parts, as

compressed files, from the suppliers to make
presentations to top management
APCTT 6
• Resolution: Inability to Specify the Components of
Technology Needed
 Carry out a formal analysis of the technology to be

transferred in terms of product and process technology
 Ensure that process technology to be transferred is

analysed in terms of its four components – machines
(Technoware), skills (Humanware), information (Inforware),
and practices (Orgaware)
 Use the approach (examples from the case study) to

determine which of the components need to be acquired
through the transferor and which can be developed
independently. Link these to the choice of TT mechanism (s)
APCTT 7
• Resolution: Inability to Identify Good Sources of
Technology
 Develop a preferred supplier profile to be used as a
guideline for supplier identification and comparison
 Using the profile, conduct a comprehensive search of firms

that are capable of transferring the desired technology
 Develop the skills to use IT-based interventions to search

patent databases, research websites, directories and online-
libraries, etc. to locate potential suppliers
 If possible, use Internet telephony, videoconferencing and

teleconferencing to have preliminary discussions with
potential suppliers
APCTT 8
• Resolution: Inability to Assess the Relative
Benefits of Different Offers and Link These to the
Payments Sought)
 Do not base supplier selection and payments only on
financial benefits
 Rate a supplier in terms of technical, strategic, and

partnering benefits
 Use financial, technical, strategic, and partnering

benefits to rate different offers
 Develop skills to realistically assess a payment for the

technology to be purchased
APCTT 9
• Resolution: Inability to Negotiate Effectively
and Formulate Good Legal Agreements
 Acquire negotiation skills through formal training
 During negotiation reach clear agreements on

contributions by both parties, payments, payment
schedules, intellectual property issues, methods of
transferring codified and uncodified aspects of
technology
 Continually monitor government policies and

changes that could affect project outcomes
APCTT 10
 Develop good communication channels with
transferors and put in place measures to build and
foster trust
 Use chat programmes, voice mail systems, and video

conferencing to have real-time interactions and
reduce the cost of negotiation and agreement
finalization
 Some firms have commenced using electronic

evidence management and display, evidence
management software and document imaging, and
real-time transcription to speed up negotiations
APCTT 11
• Resolution: Lack of Skills in Project Planning and
Implementation
 Acquire skills in project planning and management through
formal training
 Develop a comprehensive project implementation plan that
is subscribed to by both parties
 Ensure that measures to adapt the corporate culture, modify
the organizational structure, change SOPs, translate
documents etc. are explicitly included in the implementation
plan
 Ensure that details of the training programs are clearly
scheduled in a logical sequence
 Use virtual classrooms and computer-based training (CBT)
wherever possible
 Incorporate measures to build camaraderie among the
transferor and transferee personnel
APCTT 12
• Resolution: Inability to Assess the Overall
Impact of the Technology Transfer Project
and Formulating New Programs)
 A Balanced Scorecard approach may be used to

assess the impact of the TT project from
 A customer perspective (market share, new
markets, customer satisfaction etc.)
 Financial perspective (costs, profits, ROI etc.)
 Internal process perspective (outputs, quality,

speed, flexibility, etc.)
 Learning and growth perspective (skills gained,

value-added per employee etc.)
APCTT 13
Explore the feasibility of commencing internal
R&D programs to enhance the assimilation of
the transferred technology
If the relationships with the transferor are

good, internal R&D may be commenced
jointly and new technology transfer projects to
strengthen the transferred technology could
be examined.
APCTT 14
3. Concluding Remarks
• It is clear that firms in developing countries need to

develop considerable analytical skills.
• This can be achieved only through committed training

and hiring of experienced TT project personnel
• Specific attention needs to be paid to acquiring skills

in valuing intellectual property, negotiation, choosing
a mix of mechanisms to transfer technology and build
capabilities, and deployment of IT to expedite the ITT
project
APCTT 15
• Governments in many developing countries have to
develop initiatives to promote the development of such
skills by supporting the establishment of technology
transfer centres where training can be provided.
• Firms should also consider investing in IT to speed up

the activities at the various stages and gates. The
advantages are:
 Faster implementation
 Improved communication between partners
 Consultative implementation that fosters trust
 Less need for the physical transfer of personnel
 Better documentation
 Overall reduction of the total cost of the project
APCTT 16
APCTT
Thank you
Reach us at:
UNAPCTT
P.O. Box 4575, C-2, Qutab Institutional Area, New Delhi – 110 016
Tel : 91-11-26856276, 26966509 | Fax : 91-11-26856274
Email : postmaster@apctt.org | Website : www.apctt.org
17

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Bangladesh National Workshop on

“Planning and Implementing International

1. Problems Likely to be Faced in

2. Best Practices for Resolving the

• Some common problems that can be

Lack of skills in project planning and

Inability to assess the overall impact of the TT

• Resolution: Inability to Identify the Technologies

 Develop expertise in carrying out technological

 Develop the skills to be able to assess, realistically, the

 Develop the skills to assess the resources and firm-level

 Using the Internet for carrying out searches of

 Using E-mail extensively to contact suppliers and

 Obtaining digital video clips with audio parts, as

 Carry out a formal analysis of the technology to be

 Ensure that process technology to be transferred is

 Use the approach (examples from the case study) to

 Using the profile, conduct a comprehensive search of firms

 Develop the skills to use IT-based interventions to search

 If possible, use Internet telephony, videoconferencing and

 Rate a supplier in terms of technical, strategic, and

 Use financial, technical, strategic, and partnering

 Develop skills to realistically assess a payment for the

 Acquire negotiation skills through formal training

 During negotiation reach clear agreements on

 Continually monitor government policies and

 Use chat programmes, voice mail systems, and video

 Some firms have commenced using electronic

 A Balanced Scorecard approach may be used to

 Financial perspective (costs, profits, ROI etc.)

 Internal process perspective (outputs, quality,

 Learning and growth perspective (skills gained,

If the relationships with the transferor are

• It is clear that firms in developing countries need to

• This can be achieved only through committed training

• Specific attention needs to be paid to acquiring skills

• Firms should also consider investing in IT to speed up

Tel : 91-11-26856276, 26966509 | Fax : 91-11-26856274

Email : postmaster@apctt.org | Website : www.apctt.org

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