Lec#2 CH#1:

“A FRAMEWORK FOR UNDERSTANDING TM

ACTIVITIES AND TOOLS”
INTRODUCTION:
Technology can represent a major source of competitive advantage
and growth for companies. Integrating technological consideration into bussniess
process is a complex task, requiring consideration multiple function :
 Technical resources
 Marketing resources
 Finance resources
 Human resources
Technology , when combined with highly motivated and properly trained people
then rapidly changing customer demand and access and develop new market
opportunities.

CHALLENGE OF MOT:
The challenges of management of technology are compounded by number of
factors:
 Increase cost
 Complexity and pace of technology advancement
 Diversity of technology
 Globalization of competition
 Allicences
 Impact of information technology (IT)
These challenges also represent a great opportunity for organization that can fully
harness their technological potential.
POINTS:
To compete successfully, companies must assess their TM strategy and practice
and address how they can:
 Recognize opportunity and threats and convert them into sales and profit.
 Exploit existing technology by the effective translation of strategy into
operational performance.
 Differentiate process using cost effective technological product and process
solution.
 Identify and evaluate alternatives and emerging technologies in the light of
company policy and strategy and their impact on business and society.
 Reduce the risk inherent in new or unfamiliar technologies.
 Harness technology that support improvements in process, information and
other system.
 Decrease the time to market of new product and services through effective
identification.
 Protect and exploit intellectual property. (IP)

1.1: definition:
Static definition: the definition of TM include planning , directing, control and
coordination of developing and implementation of technological capabilities .
Definition can combine both hard and soft dimensions:
 Hard dimension: relate to science and engineering
 Soft dimension: relate to process enabling its effective application
Changes of technologies:
Technological changes are continuously creating new
challenges and opportunities for new product, services, process and
organizational development and industrial diversification.
TM could have dynamic capabilities.
“Capability implies an ability to do something”. They are constituted by both
strategy and operational activity.
Dynamic capabilities are the ability to reconfigure , redirect , and transform
approximately shape and integrating the existing core competencies and external
resources and strategic and complementary assets to meet the challenges of time
pressured.
Three reason that explain why the dynamic capability theory enhance the
understanding of TM.
 It is not specific technological innovation but it have ability to generate a
stream of product , services and process changes that matter for long term
firm performance.
 It is possible to observe dynamic taking place in the organization of firms,
since the unit of analysis is the capabilities.
 Dynamic capabilities consider the market or product as object of strategic
reconstruction and thus emphasize the key role of strategic management in
appropriately adapting , integrating and reconfiguring the external and
internal organizational skills, resources and functional competencies
toward a changing environment.

Capabilities:
There are capabilities:
i. Dynamic or operational capability (both are collection of routine that
execute and coordinate verity of task required to manage
technology).

 Dynamic capabilities can Build, integrate or reconfigure

operational capabilities. Which is defined as the high-level
routine that together with its implementing input flows,
confers upon an organization management, a set of decision
option for producing significant output of particular time.

Routines:
It is the” repetitive pattern of activity” and competencies refers to the
activities that is performed by assembling firm specific/ resources. That’s why
dynamic capability are conceived as the routine/activities and competencies are
embaded in a firm.
Process:
“Is an approach to achieving a managerial objective through the transformation of
input into output”.
The term activity is used interchangeably with ‘process’ or ‘routine’ and is
associated with the concept of capability.

Lec #3 1.2: DIFFRENCE B/W TM and

INNOVATION
Innovation :
Is a term of doing something new such as product , services or process including
newness in the firm.
Innovation is not limited to technologies.it might be organizational and come
from many sources.
There are four type of innovation.
I. Product innovation:
Any Product can innovate and take new
product.it is the introduction of goods and services that is new
or significantly improved its characteristics or intended users.
This include improvement in technical specification,
component and material and incorporated software, user
friendliness and other characteristics.

II. Process innovation:

 Any process can innovate and take them new….a process
innovation is the implementation of new or significantly
improved production, services or delivery method.
 Include: This include significant changes in techniques,
equipment and software.
  Decrease cost and increase quality: process innovation can be
intend to decrease unit cost of production or dilevery, and
increase the quality,and produce new and improved products.

III. Marketing innovation:

In this, take new marketing method.
 Involved: in this, significant changes in product design,
or packaging, product placement, product promotion to
pricing.
 Aim: marketing innovation are aimed at better
addressing customer needs opening new markets or
newly position a firm product on the market,
 Objective: increasing the firm sales, is the main
objective.
IV. Organizational innovation:
It is the implementation of new organizational
methods in the firm business practices either external or
internal (workplace organization).
 Advantage: organizational firm can be intend to
increase the performance of firm’s by reducing the
administrative cost or transaction cost.
 Increase performance by reducing cost
 Improving workplace satisfication.
 Gaining acsess to non_ tradable assets.

New types of innovation:

 Eco-innovation(goods , process , services and procedure that can satisfy human
needs and bring the quality of life for all people with minimal natural resources
per unit output and minimal release of toxic substance).the first type of innovation
is described by Euorope INNOVA panel as the creation of novvel.
 Reverse innovation(refers to the product and services innovation aimed that the
resource constrainted customers in emerging marketing).
 Design driven innovation: it is based on user expirence and meaning for products
and services. It offers surprice and pleasure at the look and feel of product and
services.
Imp point for MCQS
 In the TM , it is not about technological innovation and their management it is also
about a specific discipline about all sort of decision making that is needed to develop
and use technologies within the frim or organization.
 TM and innovation management overlap when there is a technology innovation.

Lec#4 1.3 : TM framework to see content:

o The TM discipline has evolved the stable and predictable situation with in an R
and D department to a discontinues and unpredictable situation taking place at
strategic level.

Imp mcqs:
 TM studies offer few universally accepted a conceptual model or framework to
understand and communicate the structure and relationship within the TM system.
 TM activites based on the technological capabilities.
 Due to complex nature of firms and industries it is difficult to exercise or implement
these activites.
TM activites: the TM activites include aquistion , explotion,identification, learning
,protection and selection all are typically inked or embaded within three core business
1. Strategy
2. Innovation
3. Operation

Imp mcqs:
 Technology selection decision are made during business strategy and new
product/services development.

Key aspects of the framework:

 the linkage b/w technological and commercial perspective in the firm
 the knolwdege flows that support this linkage .
 the core business process such as strategy ,innovation and operation.
 The TM process such as selection, aquistion , exploitation,protection, learning and
identification.
 The organizational and enviormental context in which the firm opreate which include
the additional and internal elements of the system such as staff and other business
 process and sub-system, together with external element such as customers,
competitors patterns and government etc…
 Time (synchronization, evolution and change).
o Time is inherent in the TM and business.(mcqs)

 “The three core business processes are the heart of framework”. The
strategy ,innovation and operations work different business system levels
in the firms.
 The core business process is important because there are focus of
management and action in the business.
 For sustainable output of the firm.
 The challenge of TM is that it is distributive and embaded in these core
business process.
Advantages of TM framework:
 TM activites might operate at any busniess level .
 The framework doesnot differentiate with respect to the sector in which firm operate.
 It is valid for services either it is manufacturing sectors.
 It is applicable for all firms either their size is in contrast to framework model and the
leadership.

MCQS
 SMEs stand for small and medium sized enterprises.

TM framework issues (either it is externa and internal)

 Organizational structure
 Systems
 Infrastructure
 Culture
 Particular busniess enviorment
 Challenges confronting the frim
o Any firm can also hold dynamic capabilities.
o Framework take technology as resources.
o An appropriate balance must be struck b/w market” pull” and technology
“push”.
o Technological knowledge make product ,services and model with the help of
technological capablities.

Range : MCQS
Firms vary in size and scope and ranging from company to different or multiple
department.

Lec#5 1.4 : TM activities behind technological

capabilities
For mcqs
 Focus on microanalysis of TM
 Firm knowledge base show competency and need capability
 Capability is either single, group or multiple .
 Identify the core set of activities doesn’t mean we covers all possibilities.
  Manager can only benefits these TM framework and TM activites when they consider
firms as own particular circumastances, resources and purpose.
Four key learning objectives:
o the core set of generic TM activates can be customized by any organization, and is
applicable in any envoirment, such as R&D unit, business unit as well as any SMEs and
large firms.
o Knowing the main TM activities that reduce the confusion b/w TM and innovation
management.
o Linear and limited perception on TM activities can replace with dynamic view that
emphasize the link b/w activities.
o Managers and management student who want to follow careers in TM can consider
what skills and knowledge that are necessary to manage technology.

Main TM activities:
The general TM model based on the six generic TM activities.

1. Acquisition:
o It is based on the buy-collaborate-make decision.
o In this, “how the company obtain the technologies that are valuable for its
business.
o In this the technologies might be developed internally through collaboration and
might be externally developers.
2. Exploitation:
o It follow commercialization.
o Through effective implementation, absorption and operation of the technology
within the firm then we get expected benefits.
o Technologies are assimilated(join) through technology transfer either from R&D
to manufacturing or from external manufacturing to internal manufacturing
department.
o Exploitation include incremental developments, process improvement and
marketing.
3. Identification:
o Identification is necessary part for technologies at all stages of development
and market lifecycle.
o This process include market changes as well as technological developments.
o Identification include search, auditing and data collection and intelligence
process for technologies and marketing.
4. Learning:
o Learning is a critical path of technology competency
 o It involve reflection on the technology projects and process within or out the
firms.
o There is a strong link b/w this process and border field of knowledge
management.(kM).
5. Protection:
o Formal process such as staff and retention need to be protect intellectual
assets within the firm including knowledge and expertise that is embaded in
products and manufacturing system.
6. Selection:
o Selection take company -level-strategic issue
o It require a good grasp of strategic objectives and priorities developed at the
business strategic level.
o Selection process align with technology related decision with business
strategy.
TM capability does not include the innovation capability for two reasons:
i. Innovation capability mould and mange the multiple capabilities.
o The set of TM capabilities is the subset of capabilities that are
integrated within the innovation system depending on the
innovation type.
ii. Each of the TM capability involves the an innovation element in itself.
o Example: innovation capability is the too large degree ,a major
innovation activity that deal with the service , product and
organizational innovations in the company.

LEC # 6:
“Non linearity of TM activities”
 Non linearity means TM activities is in nonstructural form.
 Any process can be starting point that triggers the number of TM activities in take place.
 The link b/w TM activities not follow the linear relationship.
 If the organization is large company having R&D activities include all the elements of
TM activities.
 If the organization has no R&D and the innovation incremental then the activities will be
different.
 Many innovation focus on two critical concerns
o Static nature
o Deterministic approach
 The TM model avoid these two criticisms especially TM activities .
 Activities Supporting TM
The core TM activities is useful for understanding the relationship b/w TM and other
management activities: project, knowledge and innovation management.
I. project management:

 refers to the managerial activites associated with all types of projects such as
product development.Each TM activity can be consider as a projects necessitating
knowledge and skills to manage it.
II. Knowledge management:(non-technical and technical resourses)

 Managing the knowledge accumulated in a company, including non- technology -

based knowledge.
 Knowledge constitutes not only
o cognition or recognition(what-know) but also
o the capacity to act (know – how ) and
o understanding (know -how)
that reside within the mind.

 All TM process involved with knowledge at some level.

III. Innovation management: (all can be manage by innovation)

 Various innovation are

o Financial
o Organizational
o Technological
 Natuarally share common ground with TM
 It cover management of all sort of innovation, bcz it is wider management exercise
MCQS:
 Supporting activities vary from case to case depend on the company size ,objectives and
technology characteristics.
For example: an SME with few small products development will have different project
management that need the multinational company with multiple projects.
To manage technology:
 It is used more structured and formal project management exercises
embaded in its process.

1.5 TM Tools
(to perform any activity)
(have no specific rules)
(all terms used interchangeably)

 There is no method to link the tools with technologies

 TM tools was carried out by European commission(EC) project was published in 1998
called Temaguide.
 Temaguide had explicit goal of explaning different Tm tools, grouped them under six
heading

q/s What are six heading to arrange tools?

Six heading to arrange tools:

a) Tools for external analysis such as technology forecasting(estimating) and
benchmarking.
b) Tools for internal analysis such as skills and innovation audit.
c) Tools to calculate the workload and resources needed in projects such as project
management, portfolio management.
d) Tools to manage working together such as interface and networking
e) Idea creation and problem -solving techniques such as creativity and value analysis.
f) Tools related to improving efficiency and flexibility such as lean thinking and continues
improvement.

q/s What are the two reasons that poses problem in understanding TM

Two reasons:
It also posess problems in TM for two reasons
 Levels of tools:
o Applicable to TM activites to make it difficult to grasp
o Example :project management is a large discipline that
mentioned in one tool as a Temaguide.
o take(project management as a whole)
 Wide spectrum of tools:
o (How you relate with technology)
 o Conjoint analysis used in marketing analysis to Delphi analysis
for technology forecasting, rises the question for TM.
o Delphi analysis can be applied in any forecasting techniques for
any managerial problem.
“Conjoint analysis is survey based statistical technique used in market research that helps to
determine how people value different attributes that makeup individual products”.
“Delphi analysis is a forecast method based on results of questioner send to pane of experts”
TM is a multidisciplinary nature.

Mcqs: IAMOT ( international association of technology of management)

Q/s : what are the four discipline of wide spectrum?

IAMOT shows the four discipline of wide spectrum tools

o Management of technology-centered knowledge
o Knowledge of corporate functions
o Technology -centered knowledge
o Knowledge of supporting discilpline
Lec# 8
Chp#2 Acquisition
 Acquisition relates how the company will obtain the technologies that is needed for its
business.
 Acquisition might be through
o internal technology development
o collaboration development
o external technology development
 the concept of “open innovation” also has implicaction for the acquisition and
exploitation of technology.
 Aquistion focus on internal(R AND D) development of technologies as well as cob
development.
 Acquisition may be simple(no R &D)(purchasing act) and complex aqiusition.

q/s In what sources acquisition take place? Also mcqs

 Acquisition capacity may be major base for building an innovation capacity for an
organization.
 But naturally, innovation is generated across the borders of the (R & D) departments,
and can take place at any unit ,department or staff level.

Mcqs:
Once technology is acquired (either externally or internally) ,its need to be protected.
 2.2: internal Acquisition: R&D
 R&D include the set of process for creating firms technologies in-house.

q/s what are the two main goal of R&D?

 Two main goal of R&D:

o Doing research for knowledge and technical ideas to obtain the
new product ,services and process.
o Develop activities in which ideas are transformed into working
prototype embodied in new products and services that include
new manufacturers , distribution and use.
 In open innovation system, the technology creation function has evolved into
a border context:
 Where both in- house and collaborative technology creation
activities fall into the area of R&D management
 In the case of Procter and gamble(P&G):
 Firms organize their R&D along the line of internal and external
activities.
For mcqs:
 Radical technology changes and open innovation system do not reduce the
role of R&D department , but they change and strengthen(increase) it.
 Innovation increase then profit increase .
 R&D investment give higher return.
Absorptive capacity:
 Firms ability to identify assimitate transform and apply valuable external
knowledge.
 There may be possible when company knows the method of how to
implement.
 And may be possible if companies have strong knowledge
compatitblity/competencies that recognize opportunities and transfer them
into their system knowledge.
 Absorptive capacity require an R&D department and related capabities.
2.3: R&D process:
o When technology strategy is developed, the broader goals for technologies are decided
at the corporate(business) level.
o These goals are transferred to the R&D department, where a chain effect is started ,in
which the generation and selection of the project is , on the basis of these goals.
Aim:

o Main aim is to identify and deliver a portfolio(collection) of R&D projects ,which

satisfy the strategic needs.
o Once projects are identified , R&D department implement them ,managing the
selected projects .

q/s How to manage R&D in the product?

o The degree of process innovation combined with the level of product changes, then
they can help to describe the R&D management projects.

q/s what are the three main reaserch project type?

o Three main research project type:

 Incremental

 Platform

 radical
o once R&D projects re identified,…,and feasible projects are selected then their
management is similar to the other project management activities.

Q/s what are the steps in process of R&D?

o Three main process of R&D
 Portfolio management
 New product/service development
 New process development
 1. Portfolio management:
 R&D manager develop a set of R&D projects that will form a portfolio.
 In the finance department, what assets to include in the portfolio, and these goals are
given to portfolio owner to change the economic condition.
 Selection involve which assets to purchase, how many to purchase,when to purchase
them and which assets to divest.
 Portfolio project always involve some sort of performance measurement, that is
 expected return of the portfolio
 risk associated with this return
 although the types of assets, risk and return are different.
Challenge of R&D portfolio management:
 the challenge of R&D portfolio management , the condition of uncertainty there is
constrained optimization: multi-projects and multi-stage decision model.
R&D need the complex set of conditions:
o uncertainty and changing information about technologies.
o Oppurtunities exists dynamic
o High interdependence among projects
o Multiple decision makers from different management units.
This will be more complicated when R&D projects are in colaboration with external partner
ranging from customer to universities.
R&D carried out collaboration through:
 Customers
 IPR (intellectual property rights)
Without a proper protection , the formation of project portfolio is difficult.

2. New product/services development:

 ‘New product development’ is a term is used to describe a complete process of

bringing a new product or services in a market.

Classical approach:
 New for market and new for company (innovation)
 New for market not new for company(repositioned)
 Nither for company nor for market (incremental)
  The new product development have aim to captured exploitable knowledge that is
generated by R&D activities and have six phases:
o Idea creation
o Preliminary & detailed investigation
o Feasibility report
o Development
o Testing
o Full development and refinement
 Formal product /service development have adopted by industry that is based on stage-
gate system.
 Stage-gate system achieve two primary function:
 It provide parallel processing providing in all elements ,such as technology and market,
so the gradual increase the probability of success
 Development funnel: (also known as idea/project funnel)
It consists of the research ,development and commercialization.
 Two paths involved in new product development:
 First path:
Involve the idea generation, product design and detailed engineering.
 Second path:
Involve market research and market analysis.
 This simplification shows the R&D activity is integrated with creativity and
commercialization.
 Creativity:
Creativity is important for generating ideas at early stage.
 Development funnel take open innovation and shows the exchange of ideas,technology
and other IP with external organization.
 This transition from closed to open system based on permeable company boundaries,it
has procedural and cultural consequence for individual involve.
 Even through idea project funnel, the new development process is divide into highly
detailed sub process.
 Sub process is not always in linear sequence form as implied by funnel model.
 Concurrent engineering, many products make one company.
 The new product development phase ,decribed just for one product or services.
 In particular the new product development analysis should incorporate product
family/platform thinking.
 Product family consist of products that have similar feature ,typicaly with shared
technology basis.
Mcqs:
 Product family based on the architecture commonality and similarity.
 Product family give the opportunity to reuse and differentiate product in family.
Advantage:
to reuse the product ,it give the benefit

 To increase the variability

 To decrease the time and cost.
A company can develop product family structure by mapping existing product and comparing
the assumption underlying product line .
 3. New process development:

In this as the level of technological sphostication increase ,the relationship are altered.
For example:
Mcqs also

 project-type product and job shop process correspond to craft production.

 Assembly line and continues process associated with mass production technology.
 Mass customization has challenged these linkage.

 Process innovation are an important element of product innovation.

 The times of dynamic innovation shifts from product to process innovation.
 Innovation start with the new product idea but when production start ,the major
problem in development phase
o is adjustment as well as
o feedback from customers/market ,
o then you make changes in the process improvement such as quality.
So all these various reason you will need process innovation.
 New process development can be characterized from degree of innovation .
 Ranging from incremental to radical process change.
 Similar to product families process can from platforms as well.

q/s What advantage occur when you relate the different process?
 Stretching the idea of individual process into a set of related process ,increase the
utilization of common technologies used in the process by creating the
synergies(collaboration) and optimization.
 There are some following task for designing a new process.
o Identifying the process for innovation
o Identifying the change elements
o Developing the process vision
o Defining the business strategy and process vision
o Understanding the existing process
o Understanding the structure and flow of current process
o Measure the performance of current process
o Designing and prototyping the new process
o Implementing and operationalizing the process and associated system.
 o Communicating results and building commitment.

2.4: External technology acquisition:

 An enterprise can either develop its technological products, process and services
internally or aquire them externally.
 Technology acquisition range from
o buying skills and
o know how to embaded technologies in components and products.
o Emerging technologies (risk or fact)
 Acquisition code is make-buy-collaboration
q/s Why the organization need the external technology acquisition?
o to save cost
o to use other competency and idea
q/s why external technology acquisition consists of make- by- collaboration?
o Th e way of increasing in sourcing innovation externally referred to as “open
innovation”.
o Where firms collaborate with external organization ranging from university to
research company across the globe.
o This is why external technology consists of make-buy-collaboration options.
q/s What happen when the number of technologies to be outsourced?
When there are number of technologies to be outsourced(subcontracted) then there

 is need to manage the portfolio

 and review it on the regular basis in the light of
I. new information
II. market
III. competitors
IV. and technologies
 Then the strategic importance of technologies change overtime.
q/s what happen when the number of technologies to be sourced?
When set of technologies to be sourced externally at the strategy level then there

 Need for an integrated plan of acquisition

 which optimize the benefits of buying in.
q/s what the organization do to protect from internal technologies and avoid from
development risk?

 The companies acquire the external technologies because of

Limited internal resources
Time pressure
Lack of complementary assets
Diversification
 But the acquisition decision cannot be done alone.
 The make -buy-collaboration decision is difficult one so the managers follow the
different criteria to find an optimum solution for these integrated decisions.
q/s what is acquisition channel?

 Sourcing technology externally demand relationship with other organization and

managers and the need to choose among different form of inter-firm collaboration
or alliances known as ‘acquisition channel’.
 The forms of alliances may vary according to how they are defined.
The classification is based on the two key dimensions:
1. The degree of control (M&A)
2. The duration of commitment (either short or long)
 Control refers to legal ownership;
For example:
An arms length relationship have no ownership b/w parties involved in the
alliances. While M&A have one legal entity being formed through complete equity
ownership of the parties involved in the alliances.
 All forms of inter-firms collaboration have certain advantages and disadvantages in the
firms.

Categorization of alliances:
Purchasing/arm’s length
Subcontracting/outsourcing/contracted out R&D
Licensing
Alliances
M&A
a) Purchasing:
o Purchasing has clear -cut process and the degree of collaboration is the least among the
five collaboration option.
o After the company searches for what is available in the market, and it decide what or
not to buy the technology and then negotiate on price with the suppliers.
o A purchasing act is one time event and does not require a close relationship.
o When continues purchasing from one technology suppliers, the result is to make the
relationship overtime.
b) Contractedout/subcontracting/outsourcing:
For contracting R&D:
o Contracting R&D is where a company use the services of contract research organization
,or some other party to develop a new product or process.
o Contracting is suitable for those situation where the company has low standing in
technological area.
For contracting out R&D:
o The company contracted out R&D to individual consultant/experts/reasearchers to
understand the competencies that the company lacks.
o As in the contracting out, the company has little managerial input in the process.
o The third party might be commercial company ,commercial R&D laboratory and
university even compititors.
o Company choose to sponser bluesky projects in universities,the result might be for long
term for their internal R&D.
c) Licensing:
o A situation where a company hold a license for the use of product design,
marketing or process or some combination of all three, on the franchise basis.
o The licensee company looks at what is available ,deciding whether buy or not to
buy and then negotiates on price.
o In broad term ,what you see or what you get, with combination of drawing
documents, experience and know how to be transferred to purchasing company
context.
o Licensing initiate a long term relationship b/w licensor and licensee company
which is called licence duration.
o By licensing ,a company confirm that it has no objective of being a leader in the
licensed technology, at least in short term.
Advantage :
Speed the technology adaption
Reduce thee risk
Cost of developing the technology
 d) Alliances:
 Several type of alliances are possible ranging from adhoc partnership ( formed to solve
specific problems) through complex alliances and joint ventures, to complete
acquisition.
 Adhoc alliances are flexible are used to develop technology that is critical to two or
more business.
 Adhoc is a short term.
 Consortium: is another flexible alliance form where many partners come together for
precompetitive R&D with no equity relationship involved.
 Complex alliances : may be used to help two or more business operating in different
sector to pool their resources and generate synergy (collaboration) so the company
gain access to critical technology in which they weak
 Joint venture: is a type of complex alliances ,the cooperation is well defined and
sufficiently long term to create the separate legal entity.
 A joint venture share a risk and cost of acquisition b/w two or more partners and is
valuable when this is high.
 Example: while developing the iPod music player, apple did not develop the player in -
house but created an alliance.it used a Toshiba disk drivers based the
ipod software on a platform developed by portal player
and the music management software developed by pixo.
e) M&A:
The goal in all M&A activity is to acquire and integrate an external entity into exsisting
company.

2.5: External acquisition process:

o Managing technology acquisition is a multi-faceted process.
o Following steps to be taken in the technology acquisition:
Technology gap analysis/ problem identification
Identification of technology alternatives
Evaluation of the technology alternatives
Acquisition of the technology
Impact through the acquisition of technology
o There are six phases that provide the useful framework for structuring the acquisition
process .
 Goal setting
 Finding technology suppliers
 Choosing acquisition method
 Contract preparation and negotiation
  Technology transfer
 Managing long-term collaboration
1. Goal setting :
 Companies cannot afford to develop all technologies in-house but equally companies
should not outsource every thing .
 When goals are set for technology acquisition, then technology forecasting and
technology strategy activity supply important input .
 When to set a goal , then the managers need to be aware of their current and future
required technology portfolio also aware about what they need to do to advance the
competitive position of their company.
 When to set a goal during strategy development is to decide the what the core
competency of the company need.
 Having the core competence list , it help the that are based on the degree to which the
competencies support both current and future business activities and needs.
 So protecting the core competencies is the critical goal in deciding to which
technologies to buy.
 Cost benefit analysis is useful decision tools when buying a technology.
 For example buying in technologies can beneficial for base technology providing flexibity
and save time and money and can benefical for key and pacing technologies.
 The goals for technology acquisition need to coordinated with R&D mamagment and
decisions.
2. Finding technology suppliers:
 To identify the external technologies company may utilize different approaches.
 To established a formal intelligence unit the most important thing is external
environment-major task of supplying information relating to potential technology
supplier and available technology.
 Some compnies have dedicated team or indviual for targated technologies and aquire
with the involvement of busniuss unit.
 An assessment is needed for number of technologies supplier and techcnology
capability as any purchasing activity.
 For TM many technologies are used for assessment process.in case of assessing supplier
the situation may be complicated depending upon potential supplier experience, track
record in technology, culture fit with company, geographical distance and reputation of
company.
 Success will be more likely for compatible partener that share similar inspiration,
culture and strategic objective
 3. Choosing acquisition method:
 Technology acquisition method range from arm’s length transaction to M&A.
 The choice of acquisition method is critical task .
 Among all form of collaboration ,firms decided which form of collaboration is is
preferred on the basis of three main criteria:
The objectives of collaboration
The content of collaboration
The typology of partners involved in the process
 Objective of collaboration may be broad ,limited or learning oriented.
 The content of collaboration depend on various aspects relating to technology such as
firm familiarity with technology, technology life cycle, level of risk and ownership of
innovation.
 The typology of partners may be decided on the basis of firm’s chracteristics,country
location of the partner and contractual power.
 Thus,it depend on the organization to select the most suitable collaboration form.
4. Contract preparation and negotiation:
 After identifying and agreeing on the condition n of purchase,Then purchasing
option is realitively simple to mange.
 The formality of contract vary from number of partners and contents of the deal.
 Contracts helps to define and articulate the condition and interaction but the
issue is trust and ethics
Mcqs:

 The preparation of contract is negotiation process between partners

 The terms and condition will depend on the relative power.
 Contracts are helpful in setting the boundaries of alliances in terms of:
Scope and time
Describing the content of collaboration
Defining IP
Indicating the division of labour among parnrtner
The rules of funding/investment
Clarifying exit option and fall back position
The duties and responsibilities of partners including their investment
Planties for not delivering on promises
5. technology transfer:
 After developed the technology, or by the suppliers it is delivered to the use of buyer.
 Technology are not only depend on hardware, they demand know – how and skills to
apply them.
 Emerging technologies have no clear product application, their application potential is
ill-defined so they are not granted to succeed.
 The responsibility of technology manager is to ,the knowledge created in a collaboration
is become either failure or success.
 That’s why when technology is transfer to buyer then it will need the management.
6. Managing long – term collaboration:
 In technology collaboration there are many critical managerial concerns involving many
partners .
 Depending on the size of company, need managers that lead a company to balance the
power and expectation among partners.
 Even though a symmetry there might be need a leader to represent the collaboration
and to coordinate the interaction b/w the partners and maintain the balance.
 Activities in the collaborating network need to be
 managed ,
 control and
 coordinated.
 Controls implies measurement and evaluation .
 Trust is another soft factor in running collaboration successfully and it is not developed
overnight.
 Partner need to work and invest, To building a trust and common culture that is to
promote trust and common thinking.
 For each partner , learning is a common issue, to varying degrees.
 All partners have different type of competencies and the exchange through the
relationships.
 If learning is not set as a goal, many partners might fails to do it.
 Another problems with learning ,might be different level of knowledge in companies
that limit their absorptive capacity.
 Collaboration is done with competitors
 Collaboration is a competition in different form.
 Companies defend themselves against competitive compromise and develop the
safeguards to protect from core competence.
 Knowledge acquire from competitor- partners.
 Another dimensions in collaboration is changing the managerial needs during evaluation
of collaboration.
 Companies need to have cooperative relationship with some stakeholder and at the
same time take precautions against the competitors.
 Management needs to take strategic actions to manage competition and cooperation
over the life of collaboration.
 If all the process of technology is well managed and effective, then the companies may
suffer from the ‘not invented here’ where employees reject the adaptation and
implementation of purchased technology, it is not internally produced.
 In any technology acquisition the change management is important consideration.