INTRODUCTION TO MANAGEMENT OF TECHNOLOGY (MOT)

Nurbaity Aqmar Mahamud Dept. of Construction and Real Estate Management, FPTPK, UTHM

Introduction: Technology and Society

Throughout human history, technology has had a profound effect on human development and on the progress of civilization. It took humans about 2 million years to develop from nomads foraging for food in east central Africa to agricultural settlers capable of augmenting their power with tools and domestic animals. This significant development ushered in the dawn of civilization. The next several thousand years witnessed the development of the wheel, the chariot, the water wheel, and mechanicals implements. It was only less than two centuries ago that the steam engine and the factory systems ushered in the start of the Industrial Revolution. Energy generated from water and from mechanical, electrical, and nuclear sources enabled humans to achieve unprecedented change in their way of life.

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Yet in no other time in history has technology been as pervasive in human lives as it is today. To an ever-increasing extent, it has invaded every aspect of human endeavor. Government operations, global corporations, private enterprises, and individuals are highly dependent on technology for their success. The rate of technological progress and societys dependence on technology only promises to intensify as the world moves into the 21st century. In spite of the fact that technology is the most pervasive force influencing human lives today, it remains mysterious to many people, and its exact definition eludes most of the public and many professionals.

Definition of Technology

Technology can be defined as all the knowledge, products, processes, tools, methods, and systems employed in the creation of goods or in providing services. In a simple terms, technology is the way we do things. It is the means by which we accomplish objectives. Technology is the practical implementations of knowledge, a means of aiding human endeavor.

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Zeleny (1986) proposed that any technology consists of three interdependent, codetermining and equally important components: Hardware: The physical structure and logical layout of the equipment or machinery that is to be used to carry out the required tasks. Software : The knowledge of how to use the hardware in order to carry out the required tasks. Brainware: The reason for using the technology in a particular way. This may also be referred to as the know-why.

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In addition to the three components, a fourth one must be considered independently, for it encompassed all levels of technological achievements: Know-how: The learned or acquired knowledge of or technical skill regarding how to do things well. Know-how maybe a result of experience, transfer of knowledge, or hands-onpractice. People acquire technical know-how by receiving formal or informal education or training or by working closely with an expert in a certain fields. Know-how can also be acquired through a recognized method of technology transfer, in last topic.

What is Management?

Management is an art and to some extent a technology. It is the art of carrying on business. It involves directing and controlling an organization and steering it towards achieving its objectives. It draws on knowledge, experience, and an understanding of human and organizational behaviour. Management is also a technology, as it the means by which the desired goals of an enterprise are achieved. Management functions in organization include planning, organizing, staffing, motivating, and controlling activities of the organizations.

What is Management of Technology?

Management of Technology (MOT) is an interdisciplinary field that integrates science, engineering, and management knowledge and practice. The focus is on technology as the primary factor in wealth creation. Wealth creation involves more than just money; it may encompass factors such as enhancement of knowledge, intellectual capital, effective exploitation of resources, preservation of the natural environment, and other factors that may contribute to raising the standards of living and quality of life.

Definition of MOT

NRC (1987):

Management of technology links engineering, science, and management disciplines to plan, develop, and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organisation

MOT industrial practice: identification and evaluation of technological options, management of R&D itself including determining project feasibility, integration of technology into the companies overall operations, implementation of new technologies in a product and/or process

Definition of MOT

Dussage(1991) Management of technology is a practice of integrating technology strategy with business strategy in a company. This integration requires the deliberate co-ordination of research, production, and service function with the marketing, finance, and human resources function of the firm Tarek M. Khalil (2000) Management of technology (MOT) is an interdisciplinary fields that integrates science, engineering, and management knowledge and practices (Figure 1.1).

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Figure 1.1: The Interdisciplinary Nature of MOT

NATURE SCIENCE
ENGINEERIN G

MOT

SOCIAL SCIENCE

BUSINESS THEORY

INDUSTRIA L PRACTICE

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Figure 2.1: SPINNING OUT TECHNOLOGY

Technology must connect with customer needs to satisfy those needs and achieve societal goals. Technology is the engine of economic growth.
Society needs Market needs
Technology conversion

Technology creation or s acquisition

Production
The customer
Standards of living, social and environmental issues 12

History of MOT

The emergence of management of technology as a discipline in its own right is due to the fact that:

There have been changes in the business, political and social environments of firms, R&D spending has grown in absolute terms and as a percentage of GNP, and managers have become concerned with 'core competencies as a source of competitive advantage There has been a shift toward external networks and leveraging the entire corporate knowledge base Due to the fact that technology as one of the primary factor in the wealth creation, as the strategic dimension of technology and its significant competitive value is acknowledge in Management of Technology

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History of MOT

Technology management in its present form has existed since the early 1980s, but its roots can be tracked back to the early 1970s under such titles as Strategic Management,

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Evolution of MOT

R&D Management:

Rational was to provide funds for R&D (appropriate development) in order to harvest benefits from the higher levels of performance resulting from R&D efforts Focus innovation to commercialization Due to increased global competition, sustained progress brought technology strategy

Innovation Management

Technology Planning (technology strategy)

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Evolution of MOT

Strategic management of technology

Technology based strategic MOT (effective management of technology Organisation and technology based MOT (human resources and organizational measures to be integrated with technological development Integrated MOT (technology and business)

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Evolution of MOT schools of thoughts

Refinement of theory and development of its own rights

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Source: Drejer (1996)

Schools

R&D management

Innovation management

Technology planning

Strategic MOT

Perceived environment

Stable, simple and expanding

Changing, but predictable

Changing and discontinuous

Changing and discontinuous, unpredictable, with new dimension

Manage and integrate technology with other aspects Deal with all the dimension of technology evolution

Scope

Manage R&D resources

Manage innovation in the entire company Conception, invention and exploitation of technology

Manage technology across the company Analyze and plan the complex process of technological development Scenario forecasting, technology analysis, planning

Issues

People, ideas, funds, culture

Tools for making decision

Technology forecasting

Delphi forecasting, Project mgt of the innovation process

Strategic MOT, Org-Tech approach to MOT, Integrated MOT

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Source: Drejer (1996)

R&D Management

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Nature and Scope of MoT

Three contexts exist within which the management of technology is commonly considered:

Technology Management and the Company:

How a business can manage its technology for competitiveness and business success.

Technology Management and the Nation:

How a country or region can use technology to enhance the competitiveness of the businesses that operate in it, for economic development and to create wealth among its people.

Technology Management and Society:

How to ensure that technology is managed for the good of people and the environment, and to minimise any negative effects, such as pollution.

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Nature and Scope of MoT

Technology management issues can exist at many levels of human organisation.

The working team The enterprise

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Team Levels

Technology management issues here generally relate to the skill set and personal attributes of the team members. It is essential to consider ideas such as skills matrix, multi-skilling and team dynamics so that the technology inherent in the human resource is fully exploited. Conversely, teams must be structured in ways to enable optimum efficiency in production (process technologies) or maximum creativity in design (product technologies).

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Enterprise levels

Technology must be managed carefully so that critical and risky investments will affect competitiveness as opposed to business failure.

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MoT in Business Processes

Technology Management
Business planning

Knowledge acquisition Product creation People Development Product supply

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Building up Technology Management Competences

TECHNOLOGY-CONTINGENT FIRMS Large Technology-contingent Firms Need to increase productivity and quality by means of "business process reengineering" and "lean production" methods, which require organisational innovation in close association with information technology. These firms also need to develop strategies and skills to accommodate the increasing technological sophistication of process equipment, materials and components. Technology-contingent SMEs Is the biggest group of companies in Europe; their central concern is to keep abreast of developments in process equipment. The main problem they face is a lack of basic technological knowhow, which also leads to difficulties in identifying their technological needs and taking advantage of the "knowledge infrastructure" intended to serve them. TECHNOLOGY-INTENSIVE FIRMS Large Technology-Intensive Firms Responding to competitive pressures have restructured their R&D in recent years to link it better with immediate business demands. They now face the challenge of developing long-term strategies, which will require them to focus on core technologies, collaborative ventures, and organisational mechanisms to balance corporate and divisional interests. Technology-intensive SMEs Tend to be highly specialised in niche markets and need to keep abreast of changes in associated technologies that they cannot master in-house. They often lack the strategic capabilities to cope with broader technology trends, cooperation and/or growth, to match their specialist skills.

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SMALL FIRMS

LARGE FIRMS

Tutorial 1

Why do you think Management of Technology important for businesses?

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