DEFINITION, SCOPE AND CONCEPT OF TECHNOLOGY

Technology means a lot of things these days. The word "technology" brings to mind various
devices, such as laptops, phones, and tablets. Technology may also make you think of the
internet, data, or advancements in the world of engineering. This may be a narrow scope though,
as technology includes so many creative solutions to many everyday problems humans have
faced all throughout history. Technology is the use of scientific knowledge for practical
purposes, and for solving problems.

Technology can also be defined as the products, tools and processes used to accomplish tasks in
daily life. Technology is the application of science to solve a problem. Technology involves the
application of engineering and applied sciences to solve the practical problems of human lives.

Technology is basically human knowledge that is used to create products and artifacts with the
help of innovative tools, systems and materials. Technology is used for communication,
manufacturing, learning, securing data and transportation; it is often a consequence of science
and engineering, but technology as a human activity precedes the other two fields.

Technology is defined as:

• The practical implementation of learning and knowledge by individuals and organizations

to aid human endeavor.
• Technology is the knowledge, products, processes, tools and systems used in the creation
of goods or in the provision of services.

COMPONENTS / PARTS / CONSTITUENTS OF TECHNOLOGY

Technology consists of interrelated component elements or maps as follows:

1. Technoware – Hardware embodied technology.

2. Humanware – Person embodied technology (skills, experience.)
3. Infoware – Documents or specifications embodying technology including process
specifications, procedures, theories of know-how and know-why
4. Orgaware – Includes organizations structures, policies, internal & external linkages in
and through which technology operates as ongoing system.

Is it possible for Technology to exist without Science? NO.

SCIENCE AND TECHNOLOGY: - Their Nature and Relationship

Science is devoted to:

• Production of theory related knowledge of natural phenomena

 • The root function of science is to attain an enhanced understanding of nature

Technology is devoted to:

• Production of techniques
• The root function of technology is to expand practical human possibility

DIFFERENCE BETWEEN SCIENCE AND TECHNOLOGY

Science Technology
Motto Science is knowing. Technology is doing
Mission The search for and theorizing The search for and theorizing about new
about cause processes
Result Making virtually value-free Activities always value-laden
Relevance statements
Evaluation Analysis, generalization and Analysis and synthesis of design
Methods creation of theories
Goals achieved Corresponding Scientific Key Technological Processes
through Processes
Focus Focuses on understanding natural Focuses on understanding the made
phenomena environment
Development Discovery (controlled by Design, invention, production
Methods experimentation)
Most observed Drawing correct conclusions Taking good decisions based on
quality based on good theories and incomplete data and approximate
accurate data models
Skills needed to Experimental and logical skills Design, construction, testing, planning,
excel quality assurance, problem solving,
decision making, interpersonal and
communication skills

TYPES OF TECHNOLOGY

1. Generic Technology - Common use, greater the range of application in industries, more
generic.
2. Basic Technology – Provides flexibility to particular users.
3. Key Technology - Proprietary and indigenous to the firm, provides competitive edge,
Unavailable for commercial use.
4. Embodied Technology- encapsulated in products and physical equipment.
5. Disembodied Technology - Intangible in nature, no particular character, involves social
& management sciences. E.g. Quality assurance program in a factory.
 6. System Technology - Other technologies evolve by combining information technology
for the development of different applications. E.g. computer-aided flexible manufacturing
system
7. Infra Technology - Group of technologies which support R & D, manufacturing &
marketing functions in the industry.
8. Hybrid Technology - Technology evolves by combining features of different
technologies. Hybrid technology combines a rechargeable energy source (i.e. a battery)
with a combustible source (i.e. an engine). Hybrid technology is employed in vehicles
such as cars, buses and trucks to cut fuel costs and to meet goals for emissions reductions.
Implementation is done on a wider scale basis, for example, in fleets, ships, and trains.
9. Emerging Technology - Technology is under advanced development stage, probability
indicates high technical success. E.g. Bio-genetics, Nanotechnology.

TECHNOLOGY PORTFOLIO

• Numerous technologies are embodied in a portfolio of technology, e.g. products or

manufacturing processes, automobile technology.
• Technologies are interrelated and influence each other.
• Technology portfolio needs proper management by the organization.

UNDERSTANDING TECHNOLOGY AND ITS RELATIONSHIP WITH WEALTH OF

NATIONS

• Nations become competitive globally if updated with technological progress &

advancement.
• Keeping abreast of technological advancement is crucial for economic progress.
• Technology directly influences the success & growth of business enterprises, economic
growth & wealth of nations.
• Japan known for technology leader in electronics.
• United States known for technology leader in biotechnology and pharmaceutical
technologies, and indeed every major technology.

TECHNOLOGY LIFE CYCLE

The technology life–cycle (TLC) describes the commercial gain of a product through the
expense of research and development phase, and the financial return during its “vital life”
The technology life cycle (TLC) describes the costs and profits of a product from technological
development phase to market maturity to eventual decline. Research and development (R&D)
costs must be offset by profits once a product comes to market. Varying product lifespans means
that businesses must understand and accurately project returns on their R&D investments based
on potential product longevity in the market.

Due to rapidly increasing rates of innovation, products such as electronics and pharmaceuticals
in particular are vulnerable to shorter life cycles (when considered against such benchmarks as
steel or paper). Thus, TLC is focused primarily on the time and cost of development as it relates
to the projected profits. TLC can be described as having four distinct stages:

TECHNOLOGY LIFE CYCLE CHART

1. Research and Development – During this stage, risks are taken to invest in
technological innovations. By strategically directing R&D towards the most promising
projects, companies and research institutions slowly work their way toward beta versions
of new technologies.
2. Ascent Phase – This phase covers the timeframe from product invention to the point at
which out-of-pocket costs are fully recovered. At this junction the goal is to see to the
rapid growth and distribution of the invention and leverage the competitive advantage of
having the newest and most effective product.
3. Maturity Stage – As the new innovation becomes accepted by the general population
and competitors enter the market, supply begins to outstrip demand. During this stage,
returns begin to slow as the concept becomes normalized.
4. Decline (or Decay) Phase – The final phase is when the utility and potential value to be
captured in producing and selling the product begins dipping. This decline eventually
reaches the point of a zero-sum game, where margins are no longer procured.

Product development and capitalizing on the new invention covers the business side of these
R&D investments in technology. The other important consideration is the differentiation in
consumer adoption of new technological innovations. These have also been distributed into
phases which effectively summarize the demographic groups presented during each stage of
TLC:

TECHNOLOGY ADOPTION LIFE CYCLE

1. Innovators – These are risk-oriented, leading-edge minded individuals who are

extremely interested in technological developments (often within a particular industry).
Innovators are a fractional segment of the overall consumer population.
2. Early Adopters – A larger but still relatively small demographic, these individuals are
generally risk-oriented and highly adaptable to new technology. Early adopters follow the
innovators in embracing new products and tend to be young and well-educated.
 3. Early Majority – Much larger and more careful than the previous two groups, the early
majority are open to new ideas but generally wait to see how they are received before
investing.
4. Late Majority – Slightly conservative and risk-averse, the late majority is a large group
of potential customers who need convincing before investing in something new.
5. Laggards – Extremely frugal, conservative, and often technology-averse, laggards are a
small population of usually older and uneducated individuals who avoid risks and only
invest in new ideas once they are extremely well-established.

TECHNOLOGY ACQUISITION AND ABSORPTION

Technology Absorption refers to the acquisition, development, assimilation & utilization of

technological knowledge and capability by a firm or some macro entity from an external source.
It occurs between transferring and receiving entities.

• Technology absorption is wider in scope than technology acquisition.

• Technology absorbed without changing parameters of acquired technology is called
Technology Adoption.
• Technology absorbed by changing certain parameters of acquired technology is called
Technology Adaptation.

WHAT IS TECHNOLOGY ADAPTATION?

Technology Adaptation may arise due to following reasons:

• Non availability of supporting infrastructure

• For meeting location / market specific needs
• To make it compatible with existing plant & machinery
• Non availability of ancillary units for components
• To meet legal requirements
• Pressure from NGOs, environmentalists, human rights groups viz.example: Government
insistence to not to use BVO in soft drinks, forced cola companies to change their
formulations.

STRUCTURE / COMPONENTS OF TECHNOLOGY ABSORPTION

Technology Absorption involves following four basic components:

1. Hardware – refers to particular physical structure of components & also their logical
layout which are subject matter of absorption
 2. Software – refers to Know-how of carrying out tasks to achieve goals & objectives
3. Brainware – refers to application & justification of hardware, software development,
know-what & know-why of technology. That is what to employ, how, when, where, and
why?
4. Support Net – refers to complex network of physical, informational and socio–economic
transformations that support the proper use and functioning of given.

DIFFERENCES BETWEEN TECHNOLOGY ACQUISITION AND TECHNOLOGY

ABSORPTION

If both Technology Acquisition & Technology Absorption occur simultaneously, then there is no
difference in the two terms. Sometimes there may be time lag between the two. In case of time
lag, differences may be as follows:

• Technology Acquisition – Focus is on acquiring technology i.e. becoming owner;

Technology Absorption – Focus is on putting the acquired technology to use; i.e. reaping
the benefits from technology acquired
• Technology Acquisition – Leads to firm specific technological knowledge and
advantage; Technology Absorption – Leads to market competitive advantage
• Technology Acquisition – Requires substantial costs for acquisition of technology;
Technology Absorption – Involves some costs for putting the technology to use and leads
to an increase in revenues, improvement in efficiencies etc.
• Technology Acquisition – Precedes technology absorption; Technology Absorption –
Succeeds technology acquisition.

MANAGEMENT OF TECHNOLOGY ABSORPTION BY ORGANIZATIONS

• Generally, enterprises / organizations plan for technology absorption within reasonable

time / planned time as it provides following advantages like – early use of acquired
technology and reaping benefits therefrom, gaining technological competitive edge etc.
• Sometimes there could be delays in technology absorption due to a variety of reasons.
• Delays in technology absorption could be harmful to the organization.

Therefore, technology absorption needs to be properly managed by the organization.

Organizations take following steps to manage technology absorption:

• Developing good understanding and mutual trust between technology transferor and
technology recipient organizations
 • Proper, clear cut and well-defined agreement between technology transferor and
technology recipient organizations
• Developing time-bound and target-oriented schedule for technology absorption
• Top management support to the technology absorption
• Use of multifunctional teams by the technology acquiring organization
• Regular review of the absorption progress by the highest level.
• Installation of effective communication system by the technology acquiring organization.
• Seeking workers’ participation, involving one and all in the absorption process;
overcoming the resistance to change through education and motivation through rewards
etc.
• Hiring of requisite skilled workforce; if some is not available, seeking early training of
own current employees by technologists / technicians from the transferor enterprise.
• By actively complying with various government directives and requirements on
technology up gradation and technology absorption.

TECHNOLOGY DIFFUSION

• Diffusion is the process by which a new idea or new product is accepted by the market.
• Technology Diffusion means the spread of applications / usage of a new technology and
its related products, services or processes from one nation to another; from one entity to
another; from one industry to another; from the owner entity to user or supplier; and from
current user to the prospective user.
• Technology Diffusion means the study of how, why, and at what rate new ideas and
technology spread across the economy.

TECHNOLOGY EXPORTS / JOINT VENTURE ABROAD

Technology export can be – technological disclosure, technical guidance, technical
assistance, technology assignment, and licensing. Technology export is normally implemented
by concluding various types of technology transfer agreements.

Technology export includes:

i) Transfer of industrial property rights and other rights related to technology (know-how)
ii) Granting of licenses pertaining to industrial property rights and technology (know-how)
iii) Guidance on technology related to business management.
iv) Granting of licenses pertaining to patent rights and utility model rights
v) Granting of licenses pertaining to currently claimed inventions and devices
vi) Granting of the right to use know-how
TECHNOLOGY EXPORT LICENSE

1) Who is involved? … Parties to the agreement, agent, patentee, owner of know-how

2) What is licensed? … License targets (patent, know-how, etc.) Patent right, right to obtain
a patent, know-how, copyright.
3) What is the content? … Forms and conditions of the license
4) Legal grounds/regulations binding on the agreement? … Acts involved.
5) Negotiations? … Negotiations between the parties/representatives.
6) How is the agreement signed and managed? … Contract management

OBJECTIVES OF TECHNOLOGY EXPORT

1. Avoid infringement of another’s patent rights and other intellectual property rights.
2. Enable access to know-how, which is normally information kept secret by the other party.
3. Earn royalties, make business safer, and raise cost performance (buy time).
4. Opportunities for licensing agreements … When, where, and how.

NEED OF TECHNOLOGY EXPORT

• Offer Technical Assistance (licensing-out)

• Receive Technical Assistance (licensing-in).

Offering Technical Assistance (Licensing-out)

1. Technology transfer offers another useful means of earning besides the production and
sales of products (open innovation).
2. Companies can receive a higher reputation for their technological power that they can
offer to other companies as technical assistance.
3. Surplus or idle technologies can be commercialized to reimburse technological
development expenses and maintenance fees incurred for those technologies.
4. Companies can receive a grant-back for improved technology developed by their
licensees.
5. Technology transfer plays an important role in international strategies.

Receiving Technical Assistance (Licensing-in)

1. Cost performance increases because there is no need for technological development.

 2. Time required for technological development can be reduced, and the company’s position
as the head starter can be secured.
3. Infringement of other companies’ rights can be avoided by obtaining a license.
4. Companies’ weak points can be made up for.
5. Access to and the right to use other companies’ secrets and useful information can be
obtained.

ADVANTAGES OF TECHNOLOGY EXPORT

i. Can create fortunes worth billions of dollars for the exporters as well as the early
adopters
ii. Technology can be adopted by developing countries to improve living standards and
security.
iii. Turn key projects can enable us to exploit the expertise without investing much in R&D
and enable them to save on time.
iv. Exports of technology by developing countries can serve as an indicator of their
technological development
v. It encourages local technological capabilities of the importer.

DISADVANTAGES OF TECHNOLOGY EXPORT

i. One negative aspect of licensing is that control over the technology is weakened because
it has been transferred to an unaffiliated entity.
ii. In certain developing countries, there also may be problems in adequately protecting
licensed technology export from unauthorized use by third parties.
iii. It is not feasible to export all the technologies e.g. developed countries are cautious while
exporting nuclear power related technologies and products to developing countries.
iv. Adopters may innovate and surpass the actual technology exporting entity.

TECHNOLOGICAL FORECASTING AND PERSPECTIVE PLANNING IN BUSINESS

ENTERPRISES

Technology forecasting attempts to predict the future characteristics of useful technological

machines, procedures or techniques.

USE OF TECHNOLOGY FORECASTS

In the National Context:
 • Developing technological competencies.
• Planning for creation of sustainable comparative advantages in select technological thrust
areas.
• Planning for the well-being of citizens with the aid of technological innovations.

In the context of Business Firms:

• Establishing technical parameters and performance standards for new products and
processes.
• Augmenting new product development efforts as well as improvement of existing
products.
• Enabling better timing for new technology introduction and facilitate ‘take-to-market’
strategy formulation.
• Aiding prioritization of research programs and identification of techno- scientific skills
required for the same.
• Identifying major opportunities and challenges in technological environment and offering
guidance for technological planning.

One of the Main Aspects of Technology Forecasting is its Communication Aspect:

i. Technology Forecasting (TF) initiates and fosters the communication between various
communities such as:
ii. Science and science (inter-disciplinary fields)
iii. Science and Technology
iv. Industry and politics
v. Technology and public administration
vi. Technology and the general public.

Technology forecasts can be a short, medium or a long-term exercise.

Short-term forecasts are usually a year or less, might typically deal with a single technology.

Medium-term forecasts might cover a 2–10 year period.

Long-term forecasts cover 10-20 years – a time horizon long enough for totally new technologies
to emerge.

The most appropriate choice of forecasting method depends on:

i) What is being attempted to forecast

 ii) Rate of technological and market change
iii) Availability and accuracy of information
iv) The planning horizon
v) The resources available for forecasting.

CLASSIFICATION OF TECHNOLOGY FORECASTING METHODS

The technology forecasting methods can be classified as exploratory and normative forecasting
methods.

Exploratory technology forecasting starts from today’s assured basis of knowledge and is
oriented towards the future.

Normative technology forecasting first assesses future goals, needs, desires, mission, etc., and
works backwards to the present.

TECHNOLOGY MONITORING

Major steps involved in technology monitoring are:

i. Scanning
ii. Filtering
iii. Analysis and Development of forecast

Scanning

i. The idea behind scanning is to collect as much information as is available on the

particular field of technology. The information could cover the following aspects:
ii. Research plans and developments
iii. Environment of the technology
iv. Support of various governments for the technology
v. Human skills and capabilities
vi. Social and ethical issues
vii. Benefits of the technology

Filtering

In most cases, not all the information captured on the technology would be relevant for a
particular forecast. Hence, based on the forecast required, the necessary information is identified
through filtering of pertinent data.

Analysis and Development

This methodology is relevant in situations such as developing Research and Development (R&D)
plan; and identifying new sources of technology or emerging technologies