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TECHNOLOGY FORECASTING AND ASSESSMENT

SYLLABUS

UNIT-I
Introduction: Technology origin and evolution - Tailoring technology to fi t specific
industry requirements -Organization redesign - Organizational re-engineering - Financial
considerations for technology Planning.
UNIT-II
Technology Cycle: Technology cycle and understanding technologies change - Responding
to technological changes -Adoption of technology - Overcoming resistance - different
approaches.
UNIT-III
Technology Forecasting: Technology Forecasting - Need - Methodologies: - Trend
Analysis, Analogy, Delphi, Soft SystemMethodology, Mathematical Models, Simulation,
System dynamic, S-curve, Role of Technology Information Forecasting andAssessment
Council (TIFAC).
UNIT-IV
Technology Assessment: Dissemination of technology information and strategic planning -
Technology choice andevaluation methods - Analysis of alternative technologies -
Implementing technology programmes.
UNIT-V
Technological Competitiveness in Countries: Factory and office automation - Business
Process Reengineering – QualityManagement - Use of Transferred Technology -
Collaborative innovation environment – Collaborativeknowledgeintensive industry
environment - Business and government relations - Technological competitiveness in some of
the developing and developed countries.
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Page No.
UNIT I
Lesson 1 Introduction to Technology 7
Lesson 2 Organization Redesign 43

UNIT II
Lesson 3 Technology Cycle 75
Lesson 4 Adoption of Technology 99

UNIT III
Lesson 5 Technology Forecasting 133
Lesson 6 Role of Technology Information, Forecastingand Assessment
Council (TIFAC) 175

UNIT III
Lesson 7 Dissemination of Technology 197
Lesson 8 Alternative Technologies 215

UNIT V
Lesson 9 Factory and Office Automation 241
Lesson 10 Collaborative Knowledge 267
Model Question Paper 293
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UNIT-I
Lesson 1 Introduction to Technology
CONTENT
Learning objectives
 At the end of this lesson, the student will be able to:
 Understand and speak on various topics of technology and its origins
 Know the Evolution of Technology
 Explain and apply the Tailor-made Technology to Fit any Industrial Requirements
Learning outcomes
Upon completion of the lesson, students are able to demonstrate a goodunderstanding of:
 The meaning of Technology and know the classification of technology
 Explain the origin of technology and analyze neolithic through classicalantiquity
 Various concepts of development of technology
 Technology development from invention to innovation
 Explain various categories of tailoring strategy of technology
 Project-based requirements to create new engineering prototypes and methods
 Reusable repository, process framework and their applications
Overview
1.1 Technology
1.1.1 Meaning and Definitions
1.1.2 Technology and Science
1.1.3 Classification of Technology
1.2 Origin of Technology
1.2.1 Ancient History
1.2.2 Neolithic through Classical Antiquity
1.2.3 Industrial Revolution
1.2.4 19th Century
1.2.5 20th Century
1.3 Development of Technology
1.3.1 Technology Development from Invention to Innovation
1.3.2 Modern History
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1.3.3 Topology of Technology

1.4 Importance of Technology
1.5 Role of Technology
1.6 Management of Technology
1.7 Tailoring Technology to Fit Specific Industry
1.8 Project Specific Requirements to Create a New Engineering Process
1.8.1 The Challenge
1.8.2 A Meta-process for Producing the Process
1.8.3 Learn the Process Framework
1.8.4 Select the Relevant RE Process Components
1.8.5 Select the Requirements Work Products
1.8.6 Select the Requirements Languages
1.8.7 Select the Requirements Work Units
1.8.8 METHODOLOGY of REQUIREMENTS ELICITATION
1.8.9 Select the Requirements Stages
1.8.10 Tailor the Selected RE Process Components
1.8.11 Extend the Reusable Repository and Process Framework
1.8.12 Document the RE Process Components
1.8.13 Integrate the RE Process Components
1.8.14 Verify the RE Process Documentation
1.8.15 Benefits, Costs and Risks of RE Process
Overview
1.1 Technology
Technology is basically the manner in which we execute the revelations of science and
take advantage of it for our requirements. Technology is a common term used to allude to the
various tools, machines and equipment we use in day to day existence. These instruments and
equipment have been developed by man to make the errands quicker, simpler and more
convenient.
The word ‘technology’ comes from the Greek words, spelled out ‘techne' and ‘logos’.
Techne implies workmanship, expertise, make, or the way, or means by which a thing is
acquired. Logos implies word, the expression by which internal idea is communicated, an idiom,
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or an articulation, the making, adjustment, utilization, and information on apparatuses, machines,

procedures, artworks, frameworks, and strategies for association, to take care of an issue, work
on a prior answer for an issue, accomplish an objective, handle an applied info/yield connection
or fill a particular role.
Thus, in a real sense, technology implies words or talk about the status quo acquired.
Technology is the rational course of making means to arrange and change matter, energy,
data and information to understand certain valued ends. The meaning of this definition will
become clearer from the descriptions below.
Furthermore, technology is the arrangement of means (tools, gadgets, systems,
techniques, methods) made by technological interaction. Technological means range from
toothbrushes to transportation systems.
Technology is the knowledge that makes the technological process feasible. It comprises
current facts and procedures important to arrange and manipulate matter, energy, and
information, as well as how to find new means for such transformations.

1.1.1 Meaning and Definitions

Technology is the way we apply scientific knowledge for practical purposes. We are surrounded
with technology. We are at an era when it seems machines and equipments will develop in to a
separate race of being on earth. Technology in general context includes machines (like
computers) but also techniques and processes (like the way we produce computer chips). It might
seem like all technology is only electronic, but that's just most modern technology. In fact, a
hammer and the wheel are two examples of early human technology.

Certain definitions on technology:

 Technology is the sum of any techniques, skills, methods, and processes used in the
production of goods or services or in the accomplishment of objectives, such as scientific
investigation. -Wikipedia

 Technologhy can be defined as all the knowledge, product, processes, tools etc.,
employed in the creation of goods or in providing services. -U. Ravikiran
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 Technology means the systematic application of scientific or other organized knowledge

to practical tasks. -John Kenneth Galbraith

 Technology is messy and complex. It is difficult to define and to understand. In its

variety, it is full of contradictions, laden with human folly, saved by occasional benign
deeds, and rich with unintended consequences. -Thomas P. Hughes

 technology is a means to fulfill a human purpose. … As a means, a technology may be a

method or process or device… Or it may be complicated… Or it may be material… Or it
may be nonmaterial. Whichever it is, it is always a means to carry out a human purpose.-
W. Brian Arthur

 Technology is the application of science, engineering and industrial organization to create

a human-build world -Alfred P. Sloan

 By technological progress I mean any change in the application of information to the

production process in such a way as to increase efficiency, resulting either in the
production of a given output with fewer resources (i.e., lower costs), or the production of
better or new products -Joel Mokyr

 technology includes all tools, machines, utensils, weapons, instruments, housing,

clothing, communicating and transporting devices and the skills by which we produce
and use them -Read Bain

 the pursuit of life by means other than life -Bernard Stiegler

 Technology may be defined as the application of organized knowledge to practical tasks

by ordered systems of people and machines.-Ian Barbour

1.1.2 Technology and Science

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Science is the study of the natural world using scientific methods. That is, it collects data through
a systematic process. And technology is the place to apply science to solve problems and create
devices that can perform a variety of tasks. Technology is literally an application of science.
Therefore, it is really impossible to separate the two.
Science and technology is the best society has ever wanted. Science has progressed since the
Industrial Revolution of the 18th century. Some of the sectors that have benefited from science
and technology are energy, natural sciences and telecommunications. The invention of
technology has made great strides in society.
Social infrastructure has grown with the help of science and technology. The realization of
transportation means such as electronic railroads has brought benefits to society by providing
better transportation means. Almost everything used to be analog, but thanks to science and
technology, we are now digitizing every day. The invention of telephone and wireless services
has expanded human communication.

Without society, science and technology would not exist. Therefore, the invention of a particular
tool or device helped to achieve great things. Society cannot be achieved without the industry we
have today. Society needs science and technology. The creation of computers as works of art by
individuals has been a milestone that has come a long way for society. Computers help us use
ourselves by retrieving valuable information that we can use to enrich our lives. The influence of
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science and technology can be seriously acknowledged. For example, many people around the
world are accepting university scholars who have studied the relationship between science and
technology.
The assessment of this relationship has evolved into an important area of research. Public
stakeholders and academic institutions around the world recognize the importance of STS. The
reason is that people need to be aware that some people are influenced by science and
technology. Controversies such as processed foods and stem cell research are issues that connect
policy makers and scientists to move forward.
Science and technology have certainly helped humans' own vision. Science has also
changed the view of human origin and origin. The results of scientific knowledge have, in many
respects, changed people's perceptions of their behavior and their place of origin. Today's
scientific experiments are affecting society in some way. For example, consider a human cloning
experiment. The experiment caused a lot of controversy because society was skeptical about it.
How science and technology relate to society: In the developing world, participatory behavioral
research, general education, and community organizations work together to solve some of the
science and technology problems that affect society. There is a long tradition. How science and
technology relate to society requires even government intervention. Indeed, science and
technology issues are being discussed around the world today. Advances in this regard have
made it possible to create different types of material objects. Answer the question of how science
and technology relate to society.

1.1.3 Classification of Technology

1. State of the art technology: Also referred as cutting edge technology is the highest level of
general development, as of a device, technique, or scientific field achieved at a particular period
of time.
2. Proprietary Technology: The technical innovations that are unique and legally owned or
licensed by a business firm or by an individual that includes, without limitation, those
innovations that are patented, patent-pending, a subject of trade secrets, or copyrighted.
3. Known Technology: It is the technology that prevails in most organizations but its application
may vary in unique ways based on what the organization is dealing with.
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4. Core Technology: This is the technology that an organization or an industry may adopt from
the best of what is currently available in order to maintain its competitive advantage.
5. Leveraging Technology: Technology leverage is the ability to create increasing value with a
stable or shrinking amount of resources, while at the same time increasing the ability to evolve at
a faster rate. Broadly defined, technology leverage is when you can create increasing value, even
with stable or shrinking resources, and increase your ability to evolve at a faster rate. For
example, what if your technology allowed you to increase productivity without increasing
payroll?
6. Supporting Technology: The prime function of a supporting technology is to provide support
to the core technology of the organization.
7. Pacing Technology: This technology is inclined to controlling the rate of development of the
product and its process of production of an industry.
8. Emerging Technology: Technology that is currently under consideration for future products or
processes.
9. Scouting Technology: Formal tracking of potential product and process technology for future
study or application.
10. Idealized Unknown Basic Technology: Technology that, if available, would provide a
significant benefit in some aspect of life. Another set of technology classification done by
Thompson can be explained with the help of this diagram.

1.2 Origin of Technology

The history of technology is the history of the invention of tools and techniques, and in many
respects is similar to the history of mankind. We are looking very slowly at the development of
life and technology. In both cases, there is a small gap where minor new characters are displayed
and a large gap where major new characters (new orders, classes, or tribes) are displayed. The
use of technology by humankind began with the conversion of natural resources into simple
tools. The wheel was made before 4000 BC. Invented in 300 BC, it has become one of the most
famous and useful techniques in the world. Background knowledge has allowed humans to
create new things, and conversely, travel to places that humans could not otherwise reach, and
the nature of the universe in more detail than we allow a sense of nature. Many scientific efforts
have been made possible by the techniques that help us to explore. In human society, some
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technological advances preceded the two concepts, which are the aftermath of science and
technology. This section helps you understand the nature, role, origin, and development of
technology. Technology is a broad concept that deals with the use and knowledge of devices and
crafts, and how they affect their ability to control and adapt to their environment. One study
identified four stages of human development based on advances in the history of communication.
They are:
In the first stage, information is passed through genes. Second, when people get noticed, they
can learn and pass Information by experience.Third, people start with signs and develop logic.
Fourth, they can create symbols and develop languages and sentences. Advances in
communication technology will lead to advances in the areas of economic and political systems,
wealth distribution, social inequality, and other social life.
1.2.1 Ancient History
Survival of life started right at the time life came into existence as the very first creature under
the sun. All lives in the race of survival started adapting to the natural challenges and thus
evolved over time. Some chimpanzee communities are known to use stone and wood as
hammers to crack nuts and as crude ineffective weapons in hunting small animals, including
monkeys. Even before homoserines, early humans discovered many things. The use of tools by
early humans was partly a process of discovery and of evolution. Early humans evolved from a
species of foraginghominids which were already bipedal, with a brain mass approximately one
third of modern humans. Tool use remained relatively unchanged for most of early human
history. Approximately 50,000 years ago, the use of tools and a complex set of behaviors
emerged, believed by many archaeologists to be connected to the emergence of fully modern
language. Such evidence includes ancient tools, cave paintings, and other prehistoric art. Stone
Age cultures developed music, and engaged in organized warfare.
Stone tools
Hominids started using primitive stone tools millions of years ago. The earliest stone tools were
little more than a fractured rock, but approximately 75,000 years ago,[26]pressure flaking
provided a way to make much finer work.
The earliest stone tool making developed by at least 2.6 million years ago. The Early Stone Age
includes the most basic stone toolkits made by early humans. The Early Stone Age in Africa is
equivalent to what is called the Lower Paleolithic in Europe and Asia.
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The oldest stone tools, known as the Oldowan toolkit, consist of at least:

• Hammerstones that show battering on their surfaces

• Stone cores that show a series of flake scars along one or more edges

• Sharp stone flakes that were struck from the cores and offer useful cutting edges, along with
lots of debris from the process of percussion flaking

By about 1.76 million years ago, early humans began to strike really large flakes and then
continue to shape them by striking smaller flakes from around the edges. The resulting
implements included a new kind of tool called a handaxe. These tools and other kinds of ‘large
cutting tools’ characterize the Acheulean toolkit.

The basic toolkit, including a variety of novel forms of stone core, continued to be made. It and
the Acheulean toolkit were made for an immense period of time – ending in different places by
around 400,000 to 250,000 years ago.

Fire

The discovery and use of fire, a simple energy source with many profound uses, was a turning
point in the technological evolution of humankind. The exact date of its discovery is not known;
evidence of burnt animal bones at the Cradle of Humankind suggests that the domestication of
fire occurred before 1 Ma;[28] scholarly consensus indicates that Homo erectus had controlled
fire by between 500 and 400 ka.[29][30] Fire, fueled with wood and charcoal, allowed early
humans to cook their food to increase its digestibility, improving its nutrient value and
broadening the number of foods that could be eaten.[31]

Clothing and shelter

Other technological advances made during the Paleolithic era were clothing and shelter; the
adoption of both technologies cannot be dated exactly, but they were a key to humanity's
progress. As the Paleolithic era progressed, dwellings became more sophisticated and more
elaborate; as early as 380 ka, humans were constructing temporary wood huts.[32][33] Clothing,
adapted from the fur and hides of hunted animals, helped humanity expand into colder regions;
humans began to migrate out of Africa by 200 ka and into other continents such as Eurasia.[34]
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1.2.2 Neolithic through Classical Antiquity

The technological rise of man began seriously in the so-called Neolithic era ("the New stone
age"). The invention of the polished stone ax was a major step forward, as extensive
deforestation enabled the construction of farms. The discovery of agriculture has made it
possible to support a larger population, and the shift to a sedentary lifestyle eliminates the need
to carry small children like nomadic life and eliminates the number of children that can be raised
at one time. In addition, children may be more likely to be involved in harvesting than hunters
' way of life.
With the increase in the population and the availability of labour, the specialization of labour
has increased. It is not clear why this has led to progress from early Neolithic villages to the first
cities, such as Uruk, and the first civilizations, such as Leto. But the need for collective action to
address environmental problems, such as the emergence of increasingly stratified social
structures, working between neighboring countries

Continuing enhancements brought about the furnace and bellows and supplied the
potential to smelt and forge local metals (naturally occurring in relatively pure form). Gold,
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copper, silver, and lead, have been such early metals. The benefits of copper equipment over
stone, bone, and wood equipment have been quickly known to early human beings. Eventually,
the operating of metals brought about the invention of alloys inclusive of bronze and brass
(approximately 4000 BC). The first regarded use of iron alloys inclusive of steel dates to round
1400 BC.
Meanwhile, human beings have been gaining knowledge of to harness different styles of
energy. From prehistoric times, Egyptians likely used “the power of the Nile” annual floods to
irrigate their lands, progressively gaining knowledge of to alter a great deal of it through
purposely-constructed irrigation channels and ‘catch’ basins. But, extra substantial use of wind
and water (and even human) power required some other invention.

1.2.3 Industrial Revolution

Industrial Revolution, in modern history, the process of change from an agrarian and
handicraft economy to one dominated by industry and machinemanufacturing. It was largely
characterized by developments in the areas of textile manufacturing, mining, metallurgy and
transport driven by the development of the steam engine. These technological changes
introduced novel ways of working and living and fundamentally transformed society. This
process began in Britain in the 18th century and from there spread to other parts of the world.
1.2.4 19th Century
The 19th century saw astonishing developments in transportation, construction, and
communication technologies originating in Europe, especially in Britain. The steam engine
which had existed since the early 18th century, was practically applied to both steamboat and
railway transportation.
The Second Industrial Revolution at the end of the 19th century saw rapid development of
chemical, electrical, petroleum, and steel technologies connected with highly structured
technology research. The period from the last third of the 19th century until WW1 is sometimes
referred to as the Second Industrial Revolution.
1.2.5 20th Century
Early 20th century witnessed rapid development of technology. Communication
technology rose up to new heights with radio,television, transistor finding applications
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everywhere. The advancements through the usage of laser, electric refrigeration, personal
computers, wireless technology and manned spaceflight advanced the human civilization to
several folds. transportation technology, broad teaching and implementation of the scientific
method, and increased research spending all contributed to the advancement of modern science
and technology. Due to the scientific gains directly tied to military research and development,
technologies including electronic computing might not have developed as rapidly as they did in
part due to war. Radio, radar, and early sound recording were key technologies that paved the
way for the telephone, fax machine, and magnetic storage of data.
The Internet of Things (IoT) and Machine learning(ML) are revolutionizing the world
today. IoT describes the network of physical objects—“things”—that are embedded with
sensors, software, and other technologies for the purpose of connecting and exchanging data with
other devices and systems over the internet. These devices range from ordinary household
objects to sophisticated industrial tools. With more than 7 billion connected IoT devices today,
experts are expecting this number to grow to 10 billion by 2020 and 22 billion by 2025.
Over the past few years, IoT has become one of the most important technologies of the
21st century. Now that we can connect everyday objects—kitchen appliances, cars, thermostats,
baby monitors—to the internet via embedded devices, seamless communication is possible
between people, processes, and things.
Machine learning (ML) is a type of artificial intelligence (AI) that allows software
applications to become more accurate at predicting outcomes without being explicitly
programmed to do so. Machine learning algorithms use historical data as input to predict new
output values.
1.3 Development of Technology
Over the years, technological advances have dramatically changed the world we live in.
Some believe that previous technological advances have had a major impact on the lives of the
general public and have been more beneficial to them than recent changes. However, I partially
agree with this, as the benefits and impacts on people's lives actually depend on a particular
technology sector.
There is no doubt that early advances in technology, such as those related to technology
around the home, were very influential. Appliances such as washing machines, refrigerators,
freezers, central heating, microwave ovens and televisions were invented many years ago, and
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today almost every home has all or some of these, making life much easier. I am. They have
improved over time, but still serve the same purpose as when they were first invented.
Another example is medicine. Despite recent breakthroughs in medicine, such as genetic
and stem cell research, the benefits for the average person are years ahead. The most influential
impact on health has been previous technological developments in the past that continue to this
day. These are the ability to treat numerous injuries and illnesses and perform organ transplants
in hospitals. It is these that will benefit so many lives and decades to come.
However, looking at some recent developments, they have had a far greater impact than
in the past. For example, when the telephone was invented and helped many people, it
represented an important development. It was invented many years ago, but technological
developments over the last few decades mean that phones are now mobile and connected to the
Internet. This has had a major impact on people's lives as people use the phone for many of their
daily activities and connect around the world.
In summary, arguments can be made that some old technology developments are
important, but there are also some new technology developments. Therefore, the impact on the
lives of the general public depends on the type of technology involved.
Several levels of activity are included in technology development. Generally, three levels
of development should be considered while estimating the technology development, they are:
1. Individual: Develop ideas, theories, concepts, principles or perspectives which are
familiar to them or their associates or the groups in which they are working. This implicit
knowledge may be from their own experiences, learning from the mistakes of others, collective
experiences, experimentation and Imagination.
2. Tacit Knowledge Codified, verified: In this stage verification and codification through
a scientific process of experimentation should be done. Right knowledge, Right method, right
approach and right environment is important to make an experiment correctly.
3. Level of Development: Ensure the adoption of the above processes, knowledge would
be made available to a large number of people. Here the knowledge is put to use physically,
embodied in products, services or procedures.

1.3.1 Technology Development from Invention to Innovation

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They sound similar – Innovation and Invention – that is why they seem to be closely related.
Many people believe that at the beginning of an entrepreneurial success story there must be an
invention.
“The rest” is then just a question of “execution”. Although this perspective seems reasonable, it
underestimates the risks and the thoroughly significant differences. For this reason, in this
innovation vs. invention comparison, we want to explain the differences between the two.
Furthermore, we want to address the risks if the assumption that innovation is just the execution
of an invention would be actually adopted. Much more about innovation you will find in our new
book “How to Create Innovation” which includes comprehensive approaches with mindsets,
structures, and strategies to innovate in less time, with fewer resources, and more success.
What is Invention?
Invention is defined as the creation of a product or the introduction of a process for the first time,
Invention is just the idea for a possible innovation, invention solves a concrete problem with the
means of technology.
The technical features of the invention thereby fulfill a function, whereby the problem – the task
of the invention – is solved, the technical character necessary for patenting requires that natural
laws be used to achieve the goal. An invention is also called a “teaching for technical action”.
What is Innovation?
Innovation comes from the Latin verb “innovāre” and means “the introduction of new things,
ideas or ways of doing something.”
Innovation differs from improvement and transformation in that the focus is not on doing
something you are already doing better, but rather on doing something completely different from
what you are already doing.
Inventions Importance
 Inventions provide evidence of the credibility of scientific knowledge
 Inventions require a completely new concept
 Inventions require skills
 Inventions always have originality and are new to the world
 Inventions bring unexpected results
 Inventions should come first
 Inventions are the building block for innovation
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Innovations Importance
 Innovation bring betterment to the existing concept, service or product
 Innovation contributes significantly to the growth of a company
 Innovation is always new but with a changed concept or pattern
 Innovation gives a technical/competitive edge
 Innovation demands a variety of skills
 Innovation tends to attract the best talent
 Innovation always occurs when there is a need to bring change to an organization
Whereas invention can be described as a fundament, innovation can be referred to as the
introduction of new things, ideas, or ways of doing something.

Industry Standard Approach to Innovation

Since we know that the topic of innovation vs. invention will continue to be of significant
importance in the future, we would like to share the following excerpt from our book “How to
Create Innovation” with you: “We know – innovation is an epic challenge. Depending on where
you are and how you play it, your levels of success and the outcomes you create will be
drastically different, so a particular result cannot be guaranteed. But if you do not make a major
leap forward leveraging this consolidated body of knowledge, ask yourself what is going wrong,
and do let us equally know what you have been struggling with.
Using this proposed industry-standard approach to innovations, organizations can create
innovation in a target-oriented way, leverage their strengths, create blue oceans and overcome
luck.
The practices we introduced are mostly well-established, have proven themselves in the trenches,
or are deeply rooted practices by Silicon Valley players. In addition, there are numerous reads to
take you further.
Our contribution was to identify winning practices, add what is missing and consolidate
everything in a holistic setting and adapt it to the realities of large organizations.”

In addition to this industry-standard approach to innovation, we have a variety of other ground-

breaking tools and models.
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1.3.2 Modern History

1. Communication
Communication technology is taking a new shape from earlier Morse code and the telegraph to
modern day international messaging and video calling apps. Below are some examples of more
modern communication technologies:
Television
CRT based Black and white Television sets have been replaced with flat and cheaper LCD
display televisions. People use television to communicate important messages, advertisements,
entertainment and more.
Internet
Many people consider the internet to be the most popular and powerful communication
technology. It allows people from around the world to interact through written messages, as well
as audio and video messages. Internet is a major communication and network component at
offices and homes. As on date, all the operations of the major corporations and organizations will
come to a standstill without internet.
Cell phones
Cell phones are a modern improvement over the telephone. Cell phones are now in the form of
smart phones that has grown monstrously in its ability including many of the devices such as
cameras, radios, compass, television, clocks, musical instruments, calendars, meeting platforms,
banking apps in one as its soft forms. This technology has made our days complete many of our
tasks such s paying the bills, bank transactions, ordering food, booking taxies, reserving tickets
sitting at one place comfortably and using time effectively.
2. Electrical
Many pieces of modern technology use electricity in some form. A few examples of electrical
technology include:
Computers and laptops
People use computers to access the internet and print physical copies of digital content among
other functions. Laptops have made the use of computers portable.
Circuitry
A collection of electrical components that perform a particular function is a circuit. An example
of an electrical circuit is a computer processor, which is a small component that translates
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electrical signals into computer code. Electrical circuits exist in many modern-day items, such as
computers, remote controls, cell phones, appliances and more.
Artificial intelligence
Artificial intelligence is a computer system designed to make decisions and perform actions
autonomously. There are varying degrees of artificial intelligence sophistication in many of our
daily tasks. For example, online navigation apps use artificial intelligence to analyze the best
route for a traveler based on traffic, road closures and more. Another example is search engines,
which use artificial intelligence to determine the best results to display for each unique user.
Software
Most software aims to provide the ease of use, entertainment to users or make tasks more
efficient. For example, word processing software makes it easier to create and edit documents
when compared to older forms of technology such as a typewriter.
Audio and visual technology
Audio and visual technology consists of items such as cameras, microphones and projectors.
Their purpose is to capture and display audio and visual mediums to users. Audio and visual
technology often combines with other forms of technology, such as cellphones, to provide
camera functionality, for example.
3. Energy
Energy technology aims to help generate, store and transmit energy for a variety of purposes.
Common examples of energy technology include:
Solar panels
Solar panels use energy from the sun's rays to generate power. People use these panels to power
things such as buildings, homes, outdoor lighting systems, water heating systems and more.
Wind turbines
Wind turbines use propellers to generate wind energy. They are typically tall pillars located in
open plains or within the ocean where winds are strongest and generate the most energy.
Batteries
Batteries store energy for later consumption, and people use these to power other forms of
technology such as a television remote. Battery technology is the future. It is to revolutionize the
fields like automobile, communication and aerospace applications.
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4. Mechanical
Mechanical technology is the application of engineering principles to achieve tasks more
efficiently. People use this technology in a wide variety of machinery, with some common
examples of mechanical technology including:

Manufacturing
Manufacturing technology aims to produce goods faster and in a more cost-effective manner. A
popular example of manufacturing technology is an assembly line, which greatly improved the
speed of production processes. Manufacturing technology's benefits also include product quality
improvements, better tracking and systems analysis, faster shipping speeds and enhanced
employee safety.
Heavy engineering
Heavy engineering technology helps professionals perform tasks such as building bridges or
digging tunnels. It helps transport heavy materials, dig holes into the ground and make
construction processes more efficient. Other areas of heavy engineering include shipbuilding,
mining, steel production and aerospace engineering.

5. Medical
Medical technology helps improve people's quality of life in a number of ways. Some examples
include:
Diagnostics
Diagnostic technology helps medical professionals attain more information about a patient.
Examples of diagnostic technology include thermometers, MRIs, X-ray machines,
electrocardiographs and stethoscopes. With these tools, medical professionals can make better
treatment decisions and explore parts of the human body that would be impossible to analyze
otherwise.
Pharmaceutical
The development and improvement of medicine results in better pharmaceutical technology.
Using different technologies, such as nanotechnology, microenvironments and artificial organs,
researchers learn more about how different substances impact humans. One way we should
 21

remember how we talked covid 19 was through inventing covid vaccine which vastly helped in
bringing the crisis under control.
Surgical
Surgical technology allows surgeons to perform complex operations. Some recent examples
include smart surgical glasses that display essential information directly within a surgeon's
glasses and remote robotics, which allow surgeons to operate remotely with increased precision.
Surgical technology assists in every type of surgery—from basic procedures such as
appendectomies to more complex types such as spinal or brain surgery.

6. Transportation
It's much easier to travel than it once was thanks to improvements in technology. Examples of
transportation technology include:

GPS
GPS, or a Global Positioning System, is a piece of technology that can pinpoint locations on
earth from satellites in earth's orbit. Using this technology, we can now receive real-time
directions, monitor the transit of different objects or record precise time measurements.
Flight
Flight technology has become safer and more efficient over time. We use flight technology in a
number of ways—from the construction of planes to navigation equipment on an aircraft.
Improvements in flight technology are even more apparent in space flight, which occurs fairly
regularly. Advancement in rocket technology will develop flights powered with rocket engine
that would make travel faster.
Vehicles
Similar to flight technology, vehicles are now faster and safer. In addition, they are more fuel-
efficient and comfortable and often provide entertainment options, as well. Vehicle technology
has improved the way engines run. Hyperloop technology is under construction in places around
the world.

1.3.3 Topology of Technology

 22

Joan Woodward was born in 1916 in United Kingdom. She did several research in the area of
industrial relations. Woodward began attempting to find a relation between structure and
performance; however no significant relation was found. That is when she began classifying the
companies based on the level of technical complexity; she began seeing patterns and relation
between structure and performance.

She classified the technologies into 3 basic technologies:

1. Unit or Small Batch

2. Large Batch or Mass production
3. Continuous Processing

Woodward’s study showed that organizations using unit and small technologies are more
successful when they have smaller spans of control, fewer levels of management and when they
practice decentralized decision making.
 23

The study also showed that organizations that use larger batch and mass production technologies
are more successful when their managers have larger spans of control and when they practice
centralized decision making.

The successful continuous processing organizations are similar to those for unit and small batch
processing technologies, they have smaller spans of control and decentralized decision making.
However they have more levels of management than either of the earlier discussed technologies.

Though this was breakthrough in classifying companies based on the type of technology, the
study was not without limitations. The 2 major drawbacks are:

1. The study mainly focused on small and medium sized organizations - the relation
discovered between structure and performance is less significant when the organizations
are larger and more complex
2. Non-manufacturing firms were not part of the study

1.4 Importance of Technology

There is no doubt that we are experiencing a tremendous development in technology. This
technology has had a negative or positive impact on our life. As a result, it has influenced the
way we live and we rely heavily on it. Humans continue to evolve continuously.
Technology will not stop at a single threshold, but we still hear daily discoveries and inventions
by scientists. Technology has spread all over the world and people use it all the time.
It is no longer limited to work and in developed societies, but any person, regardless of his or her
cultural or social level, or whatever his age, can use a cell phone, for example, to take pictures,
send and receive them.
Technology helps us to keep in touch with people who are away from us. We use phones and
computers to talk to them and even see them.
Our daily work office is also technology-based. People no longer use pen and paper to complete
their work. We keep our health by going to the gyms. There are machines in the gym that help us
reduce our weight and keep fit. We get to keep a lot of information in a small device and use it
when we like. Cars have also become better with the use of technology. Technology can not be
 24

appropriate in some tasks and has negative influences. Everyone determines and decides how to
use this technology in a negative or positive way.
The same technology can be used by two people in a different way.
Importance of technology in communication, education, decision making, business, healthcare,
domestic work
https://www.scientificworldinfo.com/2019/11/importance-of-technology-in-our-daily-life.html

1.5 Role of Technology

The role of technology in any business is a developing need. As the years go by, the business
world is inclining increasingly more toward it, making it exceptionally difficult to isolate the two
from one another. Development breeds business, and since innovation makes ready for it, it may
very well be accumulated here that business needs innovation to be supported.
Business has generally existed since the early seasons of man. Despite the fact that it just started
with the oversimplified trade framework, business wouldn't be equivalent to it is today without
the headways in innovation. Every one of the significant enterprises would fall into a devastating
breakdown if one somehow happened to remove innovation from business, since larger part of
business activities and exchanges some way or another include the utilization of innovation.
Technology as a business necessity: The job of innovation in business caused a colossal
development in exchange and trade. Business ideas and models were upset because of the
presentation of innovation. This is on the grounds that innovation gave a new and better
methodology on the best w to go about with business. It gave a quicker, more helpful, and more
effective approach to performing deals.
Some of activities of innovation in business incorporate bookkeeping frameworks, the board data
frameworks, retail location frameworks, and other easier or more muddled apparatuses. Indeed,
even the number cruncher is a result of innovation. It is without a doubt incredible to bring
returning to the days where everything was done physically, which fundamentally implies
starting from the very beginning again without any preparation.
Security and Support: With the mechanized cycles that innovation can give, usefulness
arrives at a more elevated level. This is because of the insignificant assets consumed in handling
business exercises, permitting space for better items created and quicker benefits conveyed to
more clients and clients.
 25

Data is likewise put away effortlessly and respectability. With this, secret and touchy data are
less inclined to weaknesses. The said data can likewise be quickly recovered and dissected to
screen patterns and make conjectures, which can be significant in dynamic cycles.
A Link to the World: Business includes correspondence, transportation, and more fields,
making it a mind boggling trap of cycles. The advances relating to different fields just drove
business further. Globalization has been acknowledged on account of the miracles of innovation.
Anybody can now carry on with work anyplace inside being choked to the four corners of his
room.
Innovation in business made it conceivable to have a more extensive reach in the worldwide
market. The fundamental model is the Internet, which is presently a typical advertising apparatus
to draw in more shoppers in profiting items and administrations presented by different
organizations.
For sure, innovation in business at last made living advantageous. It can't be denied however that
innovative dangers to business are becoming wild, for example, hacking and other malignant
exercises, so one must be capable enough in using the force of innovation. The decency that
innovation acquires has some abundance stuff the type of terrible things that take steps to shake
the business world. Eventually, it is as yet mindful utilization of these that would additionally
permit us to partake in the advantages that innovation can bring.

1.6 Management of Technology

Technology management can be described as a discipline – closely related to or synonymous
with IT management – in which businesses and/or companies utilize the different technologies
available to foster strategic growth. To do this, businesses must understand the role of
technology in each of their departments and as an overall entity. Further, businesses must invest
in new technologies and develop current technologies for the better. Technology management is
a relatively new field that depends heavily on the comprehension of both business and technical
skills.
Technology allows businesses to face contenders in almost any market. There are a number of
ways in which technology can directly impact business growth.
 26

Support and Security: As companies grow, they are required to store large amounts of data and
inventory. With technology, this process can be automated, boosting productivity and cutting
costs. Technology management also permits companies to bury information with layers upon
layers of encryption, securing the integrity of their business.

Globalization: Technology as a tool for communication has had a grand effect on how markets
operate.
Every business now has the opportunity for global outreach where they can establish the trade of
goods and services around the world. Exports today happen at 40 times the rate as they did in
1913, and technology is the main culprit.
Mobile Device Management: Perhaps the best example of how technology has significantly
changed lives is the emergence of mobile devices.
The invention of the contemporary smartphone is almost parallel to the first man on the moon in
social gravity. Google can attest to this, as their very own algorithms prioritize mobile websites.
Any business that wishes to remain competitive must similarly upgrade alongside progressive
technologies and implement optimal mobile solutions.
Cloud Computing:Cloud computing is the reason many startup companies made it off the
ground. It gives businesses the ability to outsource many of their operations to offsite, third-party
resources via the Internet. In consequence, companies can work on tighter budgets as they do not
have to build infrastructure just to host IT management systems like servers or storage units.
Businesses that operate using cloud computing services often do not have to worry about
downtime, crashes, or data. As a result, small and medium-sized businesses can garner the same
leverage as larger companies in the corporate world. By 2021, 90% of companies will be using
cloud computing.
Consumer Targeting: When technology changes, consumers change. Not only this, but many
millennials and younger generations have had the unique experience of growing up in a
transitory period where technology has drastically evolved far past presumed boundaries.
The same evolving technology has led to improved analytics and therefore enhanced customer
segmentation which can target specific groups for advertising purposes.
These analyses prove that the technology generation now makes up a substantial chunk of
companies’ consumer base.
 27

Increased connectivity has brought about new modes of communication, where millennials and
people of all generations stay in touch with one another. For that reason, technology management
means managing social media as well.
Technology management, without a doubt, has great potential in developing businesses. Those
who want to grow their companies must put their trust in technologyexperts.
What Are the Components of Technology Management? Like with any type of management,
technology management takes on a plethora of responsibilities. Management teams are tasked
with:

 Planning
 Organizing
 Monitoring
 Evaluating
 Implementing and
 Staffing with the end goal of strategically moving their company forward.

Characteristics of technology management bear little to no difference save the technical aspect.
In fact, though technology management is a major business component in and of itself, the
framework of technology management is composed of four key concepts.
New businesses should heed these concepts in order to effectively implement technology
management into their internal structure.

1. Technology Strategy: Technology strategy refers to the role of technology in a company or

organization. In this undertaking, organizations examine the logic of how technology will aid
business growth.
Technology management of this kind entails setting objectives and brainstorming tactics for
achieving your particular business goals. Technology is the primary focus here.
For example, a company may decide that in turn for creating their own technology they will
improve upon previously established innovations.
In utilizing this strategy they can avoid the risk associated with inventing new technology.
 28

Another company may decide to do the opposite, taking on the exchange in turn for the prospect
of large capital gains. A technology management team will be culpable for these sorts of
decisions.

2. Technology Forecasting: In technology forecasting, businesses identify technologies that can

be beneficial to them. Crucial to this procedure is carefully observing the technological
environment.
Businesses have to be on the lookout for the development of new technology as well as new
methodologies and approaches related to their current and upcoming technology.
Historically, technology forecasting originated in the 1960s. There are numerous methods of
technological forecasting, the Delphi method being one of the most popular.
The Delphi method is simply based on the results of questionnaires taken by experts who are
typically anonymous.
While the Delphi method is qualitative, many quantitative methods that are very mathematical in
nature exist. Forecasting methods as a whole can be categorized as extrapolative or normative
the former relying on present data and the latter historical precedent.
3. Technology Roadmap: Technology road-mapping concerns itself with mapping the different
ways in which technology can be used.
This concept puts planning at the center of technology management. Both technology strategy
and technology road-mapping can play a role in technology road-mapping.
For instance, a company whose technology strategy is to build upon existing technology will
need to start mapping short and/or long-term goals for such technology.
Technology roadmap will be necessary for identifying the distinct technologies that can be of
use.
What companies map will vary widely depending on market needs.Roadmapping is primarily
applied in the case of new product development, particularly the fuzzy front-end of development
– an epithet reserved for the conceptualization stage of new technologies.

4. Technology Project Portfolio: A technology project portfolio encompasses all the technology
projects that a business has in development along with all the technologies currently in use.
Besides merely starting a portfolio, your business needs to analyze and consider its outcomes.
 29

Technology management’s function in building a portfolio includes recognizing its strengths and
weaknesses, figuring out what takes priority, and designating resources amongst other functions.
Businesses use technology project portfolios to invest smartly and capitalize on returns.

The Benefits of Technological Management

The importance of technology management is exemplified by its benefits. You already know
some of the ways in which technological management is employed:

 Marketing
 Cloud computing
 Global outreach
 Security and
 Mobile management.

These can easily be interpreted as benefits themselves. However, the true advantages of
technology management extend even beyond that.

1.7 Tailoring Technology to Fit Specific Industry

“Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.”
Michael Porter
Strategic Avenues for Competing in an Emerging Industry

1. Try to win the early race employing broad or focused differentiation strategy.

2. Push to perfect the technology, improve the product and quality.

3. Adopt dominant technology quickly.

4. Form strategic alliances with suppliers

5. Acquire or form alliances with companies that have related or complementary technological
expertise.

6. Try to capture first mover advantages

 30

7. Pursue new customer groups, new user applications and entry into new geographical areas.

8. Begin to shift advertising to increase the frequency of use and building brand loyalty.

9. Use price reductions to attract the next layer of price-sensitive buyers into the market.

Strategies for Competing in Turbulent, High-Velocity Markets

1. Invest aggressively in R&D

2. Develop quick response capability.

3. Develop tie-in.

4. Initiate fresh actions every few months - Create change proactively

5. Keep the company's products and services fresh.

Strategic Moves in Mature Industries

1. Pruning marginal products and models.

2. More emphasis on value chain innovation

3. Trimming costs

4. Increasing sales to present customers

5. Acquiring rival firms at bargain prices

6. Expanding internationally

7. Building new or more flexible capabilities

Strategies for Firms in Stagnant or Declining Industries

1. Pursue fastest growing market segments in the industry.

 31

2. Stress differentiation based on quality improvement and product innovation

3. Strive to drive cost down.

Strategies for Competing in Fragmented Industries

1. Constructing and operating formula facilities

2. Becoming a low cost operator

3. Specializing by product type

4. Specializing by customer type

5. Focusing on limited geographical area

Strategies to Fit Company Situation
Rapid Growth Company

These companies have to craft a portfolio of strategic initiatives covering three horizons.

Short-term horizon: Strategies typically include adding new items to the company's present
product line, expanding into new geographic areas, and launching offensives to take market
share away from competitors.

Medium-term horizon: Entering new businesses

Long-term horizon: Pumping funds into R&D to create new businesses

Strategies for Industry Leaders

1. Stay-on-the-offensive strategy

2. Fortify and defend strategy

3. Muscle flexing strategy

 32

Strategies for Runner-up Firms

Strategies to build market share

Acquisition opportunities

Vacant niches

Specialist firm strategy

Superior product strategy

Distinctive image strategy

Content follower strategy

Strategies for Weak and Crisis-Ridden Businesses

Selling off assets

Cutting costs

Liquidation

1.8 Project Specific Requirements to Create a New Engineering Process

1.8.1 The Challenge
An organization or a company project will differ vastly in terms of their size, complexity,
business criticality, technical difficulty. The basic challenge here is to design a RE process that is
a good fit to the current one and at the same time it should be flexible enough for the current
projects under taken and the ones in line (multiple projects). The design should be more and
more appropriate for your specific project, describing the tasks, techniques, and work products,
with real standards, procedures, guidelines, and template etc.

1.8.2 A Meta-process for Producing the Process

This requirement emphasizes more reasonable meta-process (i.e., process for processes) that
need to be determined, that requires to be modified to fit the specific needs of your organisation.
 33

It is typically performed in an iterative, incremental, parallel, and time-boxed manner until an

acceptable project specific RE process is obtained.
Determine the RE Process Needs
Determine the types of projects that the RE process framework will have to support. The wider
the range of projects, the larger and more complete the repository of reusable RE process
components must be as well as the more tailorable and user-friendly the individual RE process
components must be. You should consider the following factors when determining your RE
process needs:
1. Size and Complexity: In view of the size and complexity, what is the range of the associated
systems to be produced? This will determine the size of the projects in terms of staffing, funding,
and schedule. Large complex projects need larger and more formal RE processes than small
simple ones.
2. Contractual Issues: Will the projects involve subcontracting or partnering? The requirements
for such applications may well be part of a contract and thus be legally binding. Such projects
also tend to have more separation between customers, users, developers and even partners,
subcontractors, and vendors. Thus, the requirements for such projects need to be more formal
and of higher quality.
3. Legal and Regulatory Issues: You may be required to use RE processes that are compatible
with various international and governmental standards. These may be ISO standards (e.g.,
ISO/IEC 12207), IEEE standards (e.g., IEEE STD 830- 1998) military standards, security
standards (e.g., FIPS PUB 140-2), and safety standards (e.g., MIL-STD-882D). The process
repository will then need to include the required process components, and these components
must be compatible in content and meaning with the
requirements of the standards.
4. Support for Assessment: You may be required to use RE processes that will enable you to
achieve a specific level on some major process assessment scale such as the SEI CMM or ISO
Spice. The RE process repository will then need to include the required process components.
5. Distributed Development: When the project is allotted on a geographical basis, the
specification and communication of the requirements will need to be more formal and better
documented. Whether you use email or you will have good requirements tools to enable multiple
 34

distributed teams to simultaneously and collaboratively work on the requirements, you still have
to deal with time differences.
6. Business Criticality: Some projects are very business critical with the success or failure of the
project having a major impact on the success or failure of the business. Other projects may
involve the development of simple throwaway prototypes. The more critical the system is to the
business, the more critical it is that RE is successful and the more formal its
process will tend to be.
7. Requirements Volatility: The more volatile the requirements, the more important it becomes
for the requirements process to support the quick and easy modification and addition of
requirements. The requirements process must be agile, although that does not necessarily mean
that the requirements process needs to be superficial.
8. Stakeholder Involvement: The more involved that the stakeholders (e.g., user representatives,
management, subject matter experts, architects, testers, assessors, and regulators) are in the RE
process, the more important that they both understand the RE process, that they can perform their
allocated tasks in the process, and that they can understand the resulting work products.
9. Process Breadth: Do you need a process framework that is restricted to RE or do you need a
general process framework that covers all activities (e.g., from management, development,
operation, and retirement), whereby RE is only part of the framework? In order to ensure cross-
activity consistency, RE is best performed within the context of the entire system or software
engineering process. Selecting a general purpose process framework and repository can avoid
unnecessary duplication of work and “turf battles” that may occur between RE and other related
activities.
10. Corporate Culture: Any RE process must be acceptable to (and usable by) the staff that must
use it. Personnel performing RE must have the minimum level of training and experience to
perform the tasks, use the techniques, and produce the work products of the process. Similarly,
they must feel comfortable with the level of formality and completeness of the process. This in
turn will influence the way and the level of detail to which the process is documented. The staff
must see the process as either helpful or necessary, or else they will not use it.
11. Tool Compatibility: Do you already have a set of existing Computer-Aided Software
Engineering (CASE) tools with which the process must be compatible (e.g., produce the same
work products)? Although the process needs should drive the selection of the process and the
 35

selection of the process should drive the selection of the associated CASE and other tools, often
tool vendors successfully (and unfortunately) sell their products as solutions to your process
needs before organizations have yet determined their process needs.
12. Metrics: Has your management determined that you need to collect specific types of RE
metrics (e.g., requirements completeness, requirements volatility, and requirements quality)?
Sometimes, the type of metrics required can influence the process because the process must
create the data on which the metrics are based.
13. Budget: You may have been given a budget (in terms of staff, funding, and calendar time) in
which to develop and incorporate the RE process. Given alimited budget, you may have no
choice but to select a process that is less complete than you would like (and need).
The preceding sub bullets influence the size, completeness, and formality of the needed RE
process, which in turn influences the size and completeness of the process framework and its
associated repository of reusable process components that you will select and obtain in the next
step. This determination can be made manually, and it can also be supported by an automated
“process consultant” tool such as the OPF Process.
14. Identify and Obtain the Process Framework: Once you understand your RE process needs,
you can identify and obtain (buy or acquire access to) the repository of reusable RE process
components you will use to produce your project-specific RE process. There are several
repositories of reusable process components available that incorporate RE components (e.g.,
RUP). Some RE process frameworks and repositories are being rapidly maintained and updated
whereas others are relatively static. Some are supported and augmented by many consultants and
books, whereas others are restricted to “what you see is what you get.” Some are general purpose
repositories of reusable process components (e.g., RUP and OPF), whereas others are restricted
to RE (e.g., Ralph Young’s process components).
15. Size and Completeness: Some repositories of reusable process components are very large and
complete, supporting the entire system/software engineering process including development and
operation. Other repositories are quite small and of restricted scope. Large and complete
repositories have the advantage of almost always having the process component you need so you
do not have to extend the repository yourself, which can be very difficult and expensive,
especially in the middle of a project. They also allow you to develop consistent processes for all
major development and operational activities. However, it may be much easier to identify the
 36

relevant process components in a small focused repository unless the larger repository is well
organized and supplied with a powerful search capability.
16. Cost: Some repositories of reusable process components are free (e.g., OPF and Ralph
Young), whereas some must be purchased from a vendor (e.g., RUP). The purchase price can
vary considerably and may be out of reach of many smaller companies and projects. Also, the
cost of any necessary training and consulting should also be factored in.
17. Tailor ability: Some are open source (e.g., OPF) and thus highly tailorable whereas others
have little or no tailor ability (e.g., Ralph Young).
1.8.3 Learn the Process Framework

If you are playing the combined roles of requirements engineer and process engineer, you need
to learn the basics of the process framework you have chosen. You need to learn it’s meta-model
of process component types (e.g., RE work products, tasks, roles, teams, techniques,
and conventions) and be able to quickly understand and identify those RE process components
most likely to be relevant to your specific project. This will include both the relevant RE process
components as well as possibly those process components from other disciplines such as
management (scope control), configuration management (of requirements and requirements
documents), quality assurance (e.g., technical evaluation and review of the requirements and
requirements specifications), risk management (of requirements related risks), etc.

1.8.4 Select the Relevant RE Process Components

1. Determine your needs
The first step to selecting the right tool is to evaluate and determine the common challenges you
encounter with requirements engineering. This requires you to identify which areas of your
requirements management process need improvements.
2. Compare Features with Other Systems
Take enough time to compare the features of one from the other. Having an idea of what you
need would make it easier to narrow down your list.
3. Assess accessibility
In this age of digital transformation, many businesses demand flexibility. It plays a critical role
in ensuring that you and your teams can access data, documents, and files anytime and anywhere.
 37

Moreover, this makes it easier to collaborate with the stakeholders of your project no matter
where they are.
4. Consider compatibility
Make a thorogh check at every stage of the planning and evaluate the compatibility of the items
with your requirement engineering plan.
5. Gauge ease of use
The whole purpose of using requirements engineering is to make it easier to accelerate project
velocity, increase collaboration, and allow you to track and trace requirements as they change.
So gauge its ease of use.
6. Look into customization and personalization
Every project has its own unique needs, requiring a flexible strategy that can adapt to your
approach with your projects. Hence, you need a requirements engineering that can adjust
accordingly.
7. Monitor and evaluate impact
To find out whether it is suitable for your needs, you should try it to your requirements..
1.8.5 Select the Requirements Work Products
Select the formal requirements work products to be supplied to the customer organisation first,
followed by the informal intermediate work products to be used in the development of the formal
work products. Requirements, requirements models, requirement manual and instructions and
other forms of requirements specifications are among them. Application vision statements, as
well as numerous sorts of assessments, such as customer, user, and technology analyses, may be
included.
1.8.6 Select the Requirements Languages
Select the relevant natural, modelling (e.g., UML), and formal (e.g., Z or object-Z) requirements
languages used to build the requirements work products.
1.8.7 Select the Requirements Work Units

1.8.8 METHODOLOGY of REQUIREMENTS ELICITATION Requirements engineering

utilizes different types of methodologies to represents the modular structure of the systems. For
this purpose the Model Driven Approaches provide the analytical techniques to define the
components and elements that cope with the requirements of the stakeholders. MDA is a good
 38

approach to follow because its structures the requirements in an easy format that becomes easy to
be understood by the designer and developer as well. Also a stakeholder with some small
knowledge about MDA approach can understand it very easily. Goal, scenario, and agent based
modeling techniques are also used for requirements elicitation which defines the run time
process of the system to interact with the user.
1.8.9 Select the Requirements Stages
It is a four step process, which includes:
1) Feasibility Study
2) Requirement Gathering
3) Requirement Specification
4) Requirement Validation

1.8.10 Tailor the Selected RE Process Components

Selection alone is not enough to make the RE process project-specific. You need to run a
reusable process component. Example: Deciding to create a system requirement is not enough
Specification (SRS); You also need to determine how complete the specification needs to be. In
relation to its content. Similarly, the requirements team's decisions are not sufficient. You also
have to determine what a team structure should look like in terms of roles. Similarly, Tasks can
be performed using different techniques and are different. The quantity and type of work
deliverables. Reusable process components are often It's very complete because it's easier to
adjust the unwanted subcomponents Especially first, rather than adding the missing
subcomponents Projects when the requirements team needs to focus on engineering
Requirements rather than deciding how to build them. Therefore, customization mainly involves
removing subcomponents of the process. Inappropriate or cost-effective component. You can
also tailor Includes making changes to existing subcomponents. B. Task assignment A role
different from the default role chosen by the repository developer. This includes coordinating
tasks from the default role description. Add a task to the description of the new role. Therefore,
in this step,

Both adjust existing subcomponents and make changes to the remaining subcomponents
Subcomponent. Keep in mind that this depends on the amount and difficulty of customization
 39

required Probably the most time-consuming and costly single step in this meta A process for
developing a project-specific RE process.

1.8.11 Extend the Reusable Repository and Process Framework

No count how wholesome a system framework and related repository of reusable system
additives may be, there might constantly be the opportunity that it desires to be prolonged with
extra system aspect sorts and related system additives that had been now no longer estimated or
finished with the aid of using the dealer of the repository of reusable system additives. Extension
may also imply the addition of recent system additives (e.g., that offer new responsibilities for a
greater entire RE activity, new necessities paintings products, new roles, etc.). It can also require
the addition of recent subcomponents to current additives (e.g., the addition of recent strategies
to an current project or the addition of recent sections to current documents).

1.8.12 Document the RE Process Components

Documentation increases the collective knowledge of everyone that you work with.
When it becomes the norm on your team to share information, you’ll benefit from increased
transparency and a culture that’s more collaborative and strategic. You’ll make smarter decisions
because essential information won’t be locked away on just one person’s hard drive - or worse
yet - their head.
Many times, Documents speaks the truth which no one can express at times queries are
arised by higher officials. Historic information are of value for reference.
1.8.13 Integrate the RE Process Components
Look for thepossibility of integrating the RE process components which would simply the
efforts of a RE process engineer and model builder. Integration further can provided a cost
effective viable solution.
1.8.14 Verify the RE Process Documentation
each requirement must be verified and validated to ensure that they are the correct requirement.
This ensures that the requirements meet the overall objective of the system and all stakeholder
needs.
 40

Verification refere to Confirming that the requirements can meet the intended objective
of what it is meant for. So, appropriate documents need to be thoroughly verified.
Validating Requirements ensures that:
1. The set of requirements is correct, complete, and consistent,
2. A model can be created that satisfies the requirements, and
3. A real-world solution can be built and tested to prove that it satisfies the
requirements.
4. Meets the Stakeholder intent
Requirements designers should go back to stakeholders again with the requirements
document and review it. The requirements should also all be traced in a rational database at this
point. Take Stakeholder comments and make changes; hopefully, they’re not any
1.8.15 Benefits, Costs and Risks of RE Process
Some of the major benefits are listed here.
 Lower development costs
 Higher productivity
 Reduced cycle time
 Lower training costs
 Easier maintenance
 Higher quality
 Lower risk
 Better interoperability
 Provide a competitive advantage, improve the system interoperability, move
personnel, tools, and methods more easily from project to project.
 Fewer people to develop software.
Risk of RE process:
The probability of occurrence of Low Level Risks is more than that of High level and
Medium Level Risks. 38% of overall project Risks are Low Level Risks, 31% are Medium Level
Risks and 24% are High Level Risks
Most of the High Level Risks lie in the early phase of the product development. i.e.
Requirement Engineering and Planning phase, and the extent of High Level Risk decreases with
respect to phases of product development. Here on the earlier Phases the risks of Low
 41

Extent are less in number even than Medium Level Risks.

On the later phases the number of risks of high level extent decreases and the number of
risks having low level risks increases. The major affecting risks lie in the earlier phases that can
affect the cost and schedule of the project. The ratio of Medium Risks is high in the first phase
and in the Testing phase and Degree of Low Level Risks are high in later phases. High Level
Risks are found mostly in the early phases of the development.
Another reason for proper requirement engineering need is that the cost of error correction in the
requirement phase is low than the cost of error correction in the later phases. If the errors are not
corrected in the requirement engineering phase, the project can be cancelled due to time and
budget overrun. Bob Glass’s in his book “Software runaways” says that improper requirement
engineering management has often proved to be the biggest cause of the projects disasters.
Summary
 Technology is a “set of means” created by people to facilitate human endeavour. In the
briefest possible terms technology may be viewed as “created capability.”
 Technology is ultimately know-how. It is the ability to identify needs, to define products
(goods or services) that meet those needs, and to marshal capabilities to build and market
the products. It is a system by which society satisfies its needs and desires.
 The evolution of technology started with the use of stone tools to the discovery of fire
and later on better clothing and shelter which led to expansion of humankind to colder
regions.Technology can be classified into several categories such as proprietory, state of
the art, core, emerging, etc.
 The specific project requirements required for a RE Process starting from the challenge,
determining the RE process needs, size and complexity, legal and regulatory issues,
stakeholder interest and corporate culture.
 The tailoring of the selected RE Process requires documenting, integrating, verifying,
validating, approving, using and iterating the said RE process.
 Like with any new RE process there exists certain costs, benefits and risks involved in the
endeavour.
 So to sum up, you should be able to write about the origin and evolution of technology
and hence, tailor technology to fit specific industry requirements after studying this
lesson.
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Keywords
 Core Technology: That technology which is essential to maintain a competitive position
for an organization.
 Computer-aided Software Engineering (CASE): Computer-aided software engineering is
the application of a set of tools and methods to a software system with the desired end
result of high-quality, defect-free, and maintainable software products.
 Re-engineering: The application of technology and management science to the Notes
 modification of existing systems, organizations, processes, and products in order to make
them more effective, efficient, and responsive.
 Systems Requirement Specification: It is a structured collection of information that
embodies the requirements of a system.
 Rational Unified Process: It divides the development process into four distinct phases that
each involve business modeling, analysis and design, implementation, testing and
deployment
Self-Assessment Questions
Short Answer Questions
1. What do you mean by technology?
2. List the different phases in the evolution of technology.
3. Which was man’s earliest tool
4. Why was the discovery of fire important?
5. Describe two kinds of technologies.
6. Write notes on:i) IoT ii) Machine learning
7. Describe some of the characteristics of the production system of an integrated circuit.
8. What is scouting technology?
9. Distinguish between ‘Leveraging technology’ and ‘Emerging technology’.
10. What do you understand by stakeholder involvement?
11. Distinguish between ‘Invention’ and ‘Innovation’.
12. What do you understand by the tern ‘technology road mapping’.
13. What are the features of the verification of the RE process documentation?
14. List two benefits and risks associated with RE process.
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15. What are the costs involved in setting up a RE process?

Long Answer Questions
1. Describe the origin and evolution of technology in detail.
2. Explain briefly the modern history of Technology.
3. What are the steps involved in the creation of a new engineering process?
4. Present the topology of technology.
5. Describe the determinants of the RE process Needs in detail.
6. Describe the phases involved in the selection of a relevant RE process.
7. What are the benefits, costs and risks involved in a RE process?
Further Readings
1. Hans J. Thamhain (2015) Management of Technology Managing Effectively in Technology-
Intensive Organizations Wiley
2. Graynor, Gerard H., (2007), Digital, Handbook of Technology Management, McGraw Hill
Khalil M., Tarek., (2009), Management of Technology, McGraw Hill
3. Khurana, Vijay Kumar, (2007), Management of Technology and Innovation, Ane Books India
4. Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009), Management of Technology, HPH
5. Narayanan V.K., (2009), Managing Technology and Innovation for Competitive Advantage,
Pearson Publishers
6. Szakonyl, Robert, (2008), Handbook of Technology Management, Viva Books Private Limited
7. Tarek M. Khalil (2000)Management of Technology The Key to Competitiveness and Wealth
Creation’.McGraw-Hill Education (India) Pvt Limited
8. White, (2007), The Management of Technology & Innovation, Thomson Publications
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Lesson 2 Organization Redesign

Content
Learning objectives
After studying this lesson, you should be able to:
 Understand the process of organization redesign
 Learn and express the process of organizational re-engineering
 Talk about the financial considerations for technology planning
Learning outcomes
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 basics of organization design and explain its principles
 concept of organizational structures
 explain people responsible for driving the organization redesign process
 analyzing types of design processes
 how to use organization redesign process
 explain steps involved in an organization redesign
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 identifying dominant themes of contemporary designs

 define rethinking the organization and how to use competitive analysis
 explain financial considerations for technology planning
 production costs and advanced manufacturing hardware technology
Overview
In the previous lesson we learnt about the origin and evolution of technology along with, the
tailoring of technology to fit industry requirements.
In this lesson we will learn about organization redesign, organizational re-engineering as well as
the financial considerations to be undertaken for technology planning.
2.1 Understanding Organization Design
2.1.1 Three Principles of Organization Design
2.1.2 The Problem
2.1.3 Organizational Structures
2.2 People Responsible for Driving the Organization Redesign Process
2.2.1 Organization Leader
2.2.2 Steering Team
2.2.3 Design Team
2.2.4 Implementation Team
2.2.5 Renewal Team
2.2.6 Consultant
2.3 Types of Design Processes
2.3.1 Steady State Design
2.3.2 Dynamic Design
2.4 Organization Redesign Process
2.4.1 Steps Involved in an Organization Redesign:
2.4.2 Success Criteria
2.4.3 Culture
2.4.4 Strategies to Influence
2.4.5 Technical System
2.4.6 Structural System
2.4.7 Decision-Making & Information System
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2.4.8 People System

2.4.9 Reward System
2.4.10 Develop an Implementation Plan
2.4.11 Execute the Plan
2.5 Organisational Re-engineering
2.5.1 Critical Factors in a Re-engineering Effor
2.5.2 Rethinking the Organisation
2.5.3 Global Organisation Structure
2.5.4 Research and Technology Phase
2.5.5 Research and Development (R&D)
2.5.6 Competitive Analysis
2.5.7 Creativity and Innovation
2.6 Financial Considerations for Technology Planning
2.6.1 Technology and Low Cost-Low Price
2.6.2 Production Costs and Advanced Manufacturing Hardware
2.6.3 Production Costs and Advanced Manufacturing Management
2.1 Understanding Organization Design
Organizational design is a step-by-step methodology which identifies dysfunctional aspects of
work flow, procedures, structures and systems, realigns them to fit current business
realities/goals and then develops plans to implement the new changes. The process focuses on
improving both the technical and people side of the business.
For most companies, the design process leads to a more effective organization design,
significantly improved results (profitability, customer service, internal operations), and
employees who are empowered and committed to the business. The hallmark of the design
process is a comprehensive and holistic approach to organizational improvement that touches all
aspects of organizational life, so you can achieve:
 Excellent customer service
 Increased profitability
 Reduced operating costs
 Improved efficiency and cycle time
 A culture of committed and engaged employees
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 A clear strategy for managing and growing your business

By design we’re talking about the integration of people with core business processes, technology
and systems. A well-designed organization ensures that the form of the organization matches its
purpose or strategy, meets the challenges posed by business realities and significantly increases
the likelihood that the collective efforts of people will be successful.
As companies grow and the challenges in the external environment become more complex,
businesses processes, structures and systems that once worked become barriers to efficiency,
customer service, employee morale and financial profitability. Organizations that don’t
periodically renew themselves suffer from such symptoms as:
 Inefficient workflow with breakdowns and non value-added steps
 Redundancies in effort (“we don’t have time to do things right, but do have time to do
them over”)
 Fragmented work with little regard for good of the whole (Production ships bad parts to
meet their quotas)
 Lack of knowledge and focus on the customer
 Silo mentality and turf battles
 Lack of ownership (“It’s not my job”)
 Cover up and blame rather than identifying and solving problems
 Delays in decision-making
 People don’t have information or authority to solve problems when and where they occur
 Management, rather than the front line, is responsible for solving problems when things
go wrong
 It takes a long time to get something done
 Systems are ill-defined or reinforce wrong behaviors
 Mistrust between workers and management

2.1.1 Three Principles of Organization Design

The three organizing principles one can consider when asking the question “How can we get
organized for ambiguity, volatility and uncertainty?” These may change again, but here is the
latest thinking.
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Just to recap, Organizing Forward is an attempt to go beyond what we often see in popular agile
frameworks to provide some theory and practical techniques to rethink how we organize
ourselves as institutions so we can create value in the world of today and tomorrow.
We can say an Organization isOrganizing forward when they attend to the following three
principles:

 Organize Around Purpose – Increase meaningfulness and authenticity of purpose so we

have the faith to grant the autonomy people need to achieve it
 Organize Through Choice – Improve confidence (through fairness, trust, and safety)
required to facilitate self – organization, self – management, and even self -direction
 Organize For Change – provide sufficient organizational awareness ( through
transparency, feedback, and flow) to allow us to continuously adapt and evolve structure
through invitational, co-creative experimentation

2.1.2 The Problem

A small business steps into its next phase of growth when it sees continuing demand and profit.
At this stage, the owner will look at the prospects for expanding his business by careful adoption
of strategies. He will look for expansion of the infrastructure, work force, facilities and activities
by carefully planning for it.
As the business expands the owner has to hire functional specialists to which he delegates some
aspects of running the business. Over time these functions expand to a point where they become
departments, and often barriers are erected (often physical) between departments. As the
company grows, owners need to hire operational experts to delegate some aspects of the
company's operations. Over a period of time, these functions get distinguished into departments
and often separated by boundaries between departments (often physical). As materials,
documents, information, flow between departments, delay is encountered as they pass through
in-gate and out-gate to in-gate again. Often defensive systems such as date stamping and
countersigning start to emerge as one department blames another for a mistake or delay. Office
politics start to appear. Complex procedure appear. And it is noted as the time for
decentralization and creation of hierarchical management structures among the departments and
departments relocate creating communications difficulties. The business product or service will
change. Paperwork, meetings, computer systems, and conference calls shall be noted to grow to
 49

counter these challenges, and it's practically almost impossible to coordinate activities to get
things done. At that point, organizational goals can actually be inconsistent with the current setup
of organizations and procedures, resulting in notable cost spikes. Now is the time to settle down
and think to find better ways. This is when redesigning is actually required.

2.1.3 Organizational Structures

Organizational structurealigns and relates parts of an organization, so it can achieve its maximum
performance. The structure chosen affects an organization's success in carrying out its strategy
and objectives. Leadership should understand the characteristics, benefits and limitations of
various organizational structures to assist in this strategic alignment.
Functional structure: Functional structure divides the organization based on specialized
functional areas such as production, marketing, and sales for the purpose of management. Each
function is managed by a departmental head that has a dual responsibility to be accountable to
the top management and to direct the respective department to achieve favourable performance.
Such functional areas are also referred to as ‘silos’. Functional structure is suitable for
organizations that operate in a single location with a single product category.
Functional structures are ‘U-form’ (Unitary form) organizational structures where the operations
are categorized based on common expertise and experience. The functions such as finance and
marketing are shared across divisions or products. The most significant advantage of this type of
a structure is that the company will be able to benefit from specialized functional expertise and
enjoy notable cost savings by using shared services.
Process Structure: Process-based organizational structures are designed around the end-to-end
flow of different processes, such as "Research & Development," "Customer Acquisition," and
"Order Fulfillment." Unlike a strictly functional structure, a process-based structure considers not
only the activities employees perform, but also how those different activities interact with one
another.
In order to fully understand the diagram below, you need to look at it from left to right: The
customer acquisition process can't start until you have a fully developed product to sell. By the
same token, the order fulfillment process can't start until customers have been acquired and there
are product orders to fill.
 50

Process-based organizational structure is ideal for improving the speed and efficiency of a
business, and is best-suited for those in rapidly changing industries, as it is easily adaptable.
Divisional structure: The second type is common among large companies with many business
units. Called the divisional or multidivisional structure, a company that uses this method
structures its leadership team based on the products, projects, or subsidiaries they operate. Good
examples for this structure include Godrej, ITC, Johnson& Johnson. With thousands of products
and lines of business, these companies structure themselves so each business unit operates as its
own company with its own president

Matrix: Matrix structure is a type of organizational structure where employees are grouped
concurrently by two different operational dimensions. Where two dimensions are critical,
companies will use a matrix structure. Employees may be organized according to product and
geography, for example, and have two bosses. The idea behind this type of matrix structure is to
combine the localization benefits of the geography structure with those of the functional
structure (responsiveness and decentralized focus). The advantage of the matrix structure is that
it can provide both flexibility and more balanced decision making (because two chains of
command exist instead of just one). Its primary disadvantage: complexity, which can lead to
confused employees.Matrix structure is appropriate for companies that have multiple product
categories and carries out various projects

2.2 People Responsible for Driving the Organization Redesign Process

Organization Leader: Generally the most senior person in the organization who sets the direction
for the change process and names and appoints the members of the Steering Team.
Steering Team: Generally consists of a cross-section of key (senior) leaders, decision-makers and
stakeholders from within and external to the organization. For example, if your workplace has a
strong union presence, then you would do well to have a senior union organizer as a member of
this team. This team is responsible for:
· Identifying and appointing the Design Team
· Establishing boundaries and guidelines for the Design Team
· Approving Design Team recommendations and
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Ensuring the Design Team has the resources (particularly time and money) they require to get
the job done
Design Team: Typically consists of 6-12 people, from a diversity of functions. These people
should come from both leadership and front-line ranks. The team should include at least one
person who is on the Steering Team (this person is the bridge between the two teams -- a tricky
role so make sure you get someone very good at influencing and thinking at both strategically
and grassroots practicality levels.).
The Design Team's role is to:
 Implementation Team
 Renewal Team
 Consultant
2.2.1 Organization Leader
Generally, the most senior person in the organization who sets the direction for the change
process and names and appoints the members of the Steering Team.
2.2.2 Steering Team
Generally consists of a cross section of key (senior) leaders, decision-makersand stakeholders
from within and external to the organization. For example, ifyour workplace has a strong union
presence then you would do well to have asenior union organizer as a member of this team. This
team is responsible for:
 Identifying and appointing the Design Team
 Establishing boundaries and guidelines for the Design Team
 Approving Design Team recommendations and
 Ensuring the Design Team has the resources (particularly time and money)
they require to get the job done

2.2.3 Design Team

Do the work of analyzing the current design and then making recommendations for the new
design choices regularly reporting back to the functional teams (see below ... Implementation
Teams) on the design choices being recommended get input from the Implementation Team
about the recommendations being made ... (information to and involvement of everyone who is
going to make the organization redesign process, come alive is critical! ... Red bandage is
critical! When it comes time to implement you don’t want the people who are mostly impacted
by and responsible for making the change happen to be surprised/
confused/suspicious/angry/annoyed at not being consulted.
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2.2.4 Implementation Team

As indicated above these are the people who are going to have to use the new
systems/ideas/organization redesign. They are responsible for implementing the design choices
recommended by the Design Team (and approved by the Steering Team) so that the organization
transforms from its current state to the new high-performance state.
If you haven't kept them on board throughout the process ... if you haven't asked for and/or
listened to their input then expect your organization redesign process to fail!
2.2.5 Renewal Team
A team set up after the Implementation who, regularly (e.g. yearly) monitors and assesses to
what degree the organization redesign does what it was intended to do. This team makes
recommendations for further changes as required.
2.2.6 Consultant
Recommends and trains the Design and Steering Teams in how to use the design model. The
Design Team training is in far greater depth helping them to understand and learn the tools to be
used during the re-design process. Provides overview training to the Implementation Team. All
teams must understand and have commitment to the organization redesign process. If this is not
achieved at all levels, then the organization redesign process should not go ahead.
2.3 Types of Design Processes
There are several ways of redesigning an organization. The type of design that may suit an
organization should match to the contemporary requirements. Some of the types of design
processes are discussed here:
2.3.1 Steady State Design
For simple issues, most of the organizational redesigns consider steady state design.
Steady state designs are apt when the state variables have less influence on the design..Eg: time,
number of employes, activities and so on. It takes a particular situation generally simple in nature
and tries to redesign to find a solution. The problems taken are simple in nature but may hae
serious effects in the long run. So, the system is further simplified ensuring its effectiveness.
Steady state design strives to removes non-value indeed activities and redesigns the processes
using average requirements. The main considerations for steady state design are:
i. Well defined primary and secondary objectives of the new process
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ii. Optimal Takt Time (determined seeing to the underlying average demand for the
product or service)
iii. Facilities, resources and infrastructure needed for the new process and
major constraints in it.

2.3.2 Dynamic Design

Dynamic design is one that redesigns a system taking into consideration carefully select
influencing variables that influences on the responses of the system. This is important in seeing
that the systems continue to operate even in adverse, cyclic/seasonal, or dynamic
Circumstances. The important main considerations of dynamic design are:
i. Completely defined variables (input, process, output) including influential and
les-influential variables.
ii. High flexibility defined
iii. The control systems of the system selected
iv. Analyzing and Identification of the buffers(if needed) and their locations,
v. Deciding on the essential number of buffers required to accommodate variability
defined (stocks, resources)
vi. Deciding on the mechanisms for responding to variability
vii. Proper testing and validating mechanisms
viii. Finalizing the most suitable measurement systems
2.4 Organization Redesign Process

“Organisational Redesign” (or as it is sometimes called “Business Process Re-engineering -

BPR”) is very useful. BPR generally approaches the problem from the point of view of the
“(internal or external) customer” and of the process. Customer views are required to ensure that
the eventual design actually satisfies them. Process views are required to try to remove the in-
tray problem, and to focus activity within it on the goal of the process, not the function, so that
unneeded or irrelevant activity is removed. However, the functional organisation has strengths
too, in greater critical mass and therefore (in theory) flexibility and resilience. These need to be
considered.

2.4.1 Steps Involved in an Organization Redesign:

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Once the Design Team has reviewed all the elements within the current organization design, they
can now begin recommending the changes that need to occur to achieve the desired Vision. At
this stage of the organizational redesign process, it is critical that a communication plan is put in
place, to enable feedback between all team members of the organization.

2.4.2 Success Criteria: Nominate the outcomes desired in these four categories:Customer,
Stakeholder, People, Community

2.4.3 Culture: Identify the values, behaviors, skills and, characteristics that the people working
within the business must have. Generate the guiding principles that encourage people to use
these behaviors and skills, to achieve the vision and mission.
2.4.4 Strategies to Influence: Determine the strategies needed to manage and reduce variability
and demands from the external environment. This enables you to meet both the requirements of
the external environment as well as achieve your desired performance outcomes. Key
Performance Indicators: Choose KPI's which will deliver the business performance required,
along with inspiring the behaviors and characteristics expressed in the Culture.
2.4.5 Technical System: Analyze and re-design in terms of how tasks are performed,
technologies required and the layout of buildings/facilities so that the People and the Technical
systems are unified to produce high performance.
2.4.6 Structural System: Design the structure for each of the three teams: Front-Line, Resource
(Management) and Strategic so that they foster the culture required to deliver high performance.
2.4.7 Decision-Making & Information System: Establish what, where, how decisions are
made. What information is needed to make those decisions and how it is captured, stored and
shared.
2.4.8People System: Define the Competencies, Job Design, Selection, Induction/Orientation,
Learning, Performance Contracting, Career Development systems that support the new
organization design.
2.4.9 Reward System: Choose how people's contributions are recognized and rewarded and
ensure the system encourages people to focus on organizational goals. Renewal System: Decide
how you will regularly review your business and make any design changes needed to ensure
continuing optimum performance.
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2.4.10 Develop an Implementation Plan: This identifies who is responsible for implementation,
timelines, resources required, potential bottlenecks and contingency plans.
2.4.11 Execute the Plan: To begin with, there’s the plan. When preparing the plan, make sure
that it’s capable of being executed successfully. This starts with thorough documentation, the
why, who, what, when and how. Then there are project communications, which include the who
and how they will be notified if and when there is an issue. And always update these steps
throughout the process.
Next is the execution of the plan. To do this successfully also involves clear communication.
There must be status updates and a quick response to issues and risks as they arise in the project.
The use of project management tools will help with this. You can set up reminders, triggers,
automation, workflow, alerts and all manner of automated tools to help keep on top of the project
and not lag behind, which will take you off track.
When monitoring a plan to ensure that it’s going as planned, again communications should be
the foundation to build toward success. Monitoring makes sure that the project is proceeding
correctly, and tools like status reports and keeping up with issues, risks and changes in how you
do that.
2.5 Organisational Re-engineering
2.5.1 Critical Factors in a Re-engineering Effor
Business Process Reengineering is the total overhaul of current workflows, with a goal in mind
intended to improve efficiencies or reduce costs. For an agency that wants to move forward with
a BPR initiative, the first question may be, “where do I start?”. Following are the seven key
factors in making a BPR initiative successful. It includes:
1. Giving people a mission and a road map for choosing appropriate actions;
The first step to moving forward with a BPR initiative is ensuring that your entire party is on
board for an internal change. This is called agency buy-in and applies to the leaders of a change
initiative within an agency and the employees who will be affected by this change. To be fully
committed to a Business Process Reengineering initiative, agency leaders must communicate a
transformation that will be happening in the near future. This includes a catch-up on why the
agency is choosing to implement new strategies and how its employees will be affected.
2. Providing superb service;
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The reengineering team must be provided with all essential services needed for the task. It
should be seen that they are given the technology that is latest in the field.
3. Making change a way of life rather than a process;
Change cannot be avoided and changes do keep happening whether there is an agreement with
it or not. So, changes should be seen as a need for betterment of one and all. So, a reengineering
organization should develop among itself a culture that would take change in a positive aspect,
more as a way of life than just a process.
4. Using technology effectively;
The team should see that it is well educated to use the technology it is supposed to effectively.
So, while building a team, it should be seen that the members of the team selected for the project
are skilled to satisfy the requirements. The members should be proactively trained in areas in
which future projects are anticipated.
5. Understanding that time is a limited resource;
The most limited resource that we count with is time. No matter what you do, how big your
dedication is you only have a fixed number of minutes every day and the way you use them is
what can define a lot of things.
6. Recognizing that reengineering is a huge job
To retain qualified employees in an organization and to maintain a satisfactory type of role
performance, people’s experiences in the system must be rewarding, particularly if they have
freedom to move in and out of organizations. The core message is that managers should
reconsider the outdated motivational patterns utilized to maintain role performance in
organizations.
7. Approaching reengineering as a lifetime venture.
Reengineering is the radical redesign of organisational processes to achieve major gains in cost,
time and provision of services. It forces the organisation to start from scratch to redesign itself
around its most important processes rather than beginning with its current form and making
incremental changes. It assumes that if a company had no existing structure, departments, jobs,
rules, or established ways of doing things, reengineering would design the organisation as it
should be for future success. The process starts with determining what customers actually want
from the organisation and then developing a strategy to provide it.
2.5.2 Rethinking the Organisation
 57

Rethinking about the restructuring of an organization is a crucial step for further developments to
stay fit to changing global business scenarios. It is also a process of shifting from the traditional
arrangement and views that companies’ administration should be a hierarchical structure of
boxes,horizontal and vertical lines.
The elements that must be considered for rethinking the structure are as follows:

 Strategy: If, for instance, your organization seeks to be innovative, a hierarchical

structure will be a hindrance. If your strategy is based on efficiency and high-volume
transactions, then perhaps a rigid, control-oriented structure will work better.
 Size: Organizational designs should undergo transformation as organizations become
larger.
 Context :Is the environment in which the company operates not very predictable and
highly volatile? Then what is required is an organizational design favouring flexibility.
 Controls: How much need is there for control in your business?
 People and their skills: Empowered teams work when people can be autonomous.

After considering these big sections along with others that you think are important to your
business and culture, the next step is to analyse the big issues or pain points that must be
resolved.
Most likely you will be able to think through the current organizational design and solve current
operational problems. However, as always, “new solutions create new dilemmas,” and you will
soon find yourself rethinking new transformations. As said earlier, the perfect organizational
structure does not exist. The great challenge is to achieve a culture that encourages continuous
adaptation.
2.5.3 Global Organisation Structure
Rise in a company’s overseas operations necessitates integration of its activities across
the world and building up a worldwide organizational structure. While conceptualizing
organizational structure, the internationalizing firm often has to resolve the following conflicting
issues:
i. Extent or type of control exerted by the parent company headquarters over subsidiaries
ii. Extent of autonomy in making key decisions to be provided by the parent company
headquarters to subsidiaries (centralization vs. decentralization) It leads to re-organization and
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amalgamation of hitherto fragmented organizational interests into a globally integrated

organizational structure which may either be based on functional, geographic, or product
divisions. Depending upon the firm strategy and demands of the external business environment,
it may further be graduated to a global matrix or transnational network structure.
Each global organization has to be designed fit for purpose. The three core steps for
delivering the right mix of speed and scale are to:
1. Match the operating model to the strategy
2. Build an organization model with clear accountability for work and outcomes
3. Design strong networks across organizational boundaries through a system of process,
metrics, and talent
2.5.4 Research and Technology Phase

The research and technology process phase begins with research and closes with successful
technology transfer to the product development phase. The goals of the technology strategy are
represented often by quality objectives, performance objectives, and functions (s). The steps
include: The research and development of the idea or concept The analysis of competition that
relates to the idea The creativity and innovation to develop technology (ies) derived from the
idea The technology research, including technology forecasting, selection and the transfer of
technology to development

2.5.5 Research and Development (R&D)

Research and development is the generation of new knowledge. In a business context, it is an
activity that companies undertake in order to develop new products, processes or services, or
improve those that already exist. In order to do this, businesses often take on risk. This is because
uncertainties exist around if what they are attempting is technologically feasible, or, more
commonly, they don’t know how they will achieve their objectives in practical terms.
R&D is an essential function for many businesses. Launching new offerings or improving
existing ones is a way for a business to remain competitive and make profit.
When developing a new product, process or service, or refining an existing one, R&D is one of
the earliest phases. Experimentation and innovation is often rife at this stage, along with risk.
The R&D cycle often begins with ideation and theorising, followed by research and exploration
and then into design and development.
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Types of R&D:
All R&D tends to start with ideas and theories – this can relate to identifying issues or new
opportunities. The R&D process then focuses on exploring and researching those ideas, seeing
what’s feasible. There are two main types of research within R&D – basic research and applied
research.

1. Basic research is all about acquiring knowledge and using it to build understanding and
intelligence that a business can use to its advantage. This knowledge can be the
foundation for further R&D projects and feed into strategic business decisions.
2. Applied research is a lot more defined, and often looks to achieve a specific objective.
This could be using a new technology, reaching a new market, improving safety or
cutting costs. Applied research is often what leads to the development phase.

The design and development phase is all about taking an idea and making it into a product or
process. Effectively, it’s about translating the research into a commercial product or service. It
often involves designs, prototyping, trials, testing and refinement.
Prototyping is key to the development phase as it allows you to identify and overcome issues,
and improve the design. Eventually, for those in manufacturing development, you move into
manufacturing trials where you look to produce the product on a larger scale.

2.5.6 Competitive Analysis

Competitor analysis is a strategy that involves investigating key competitors and gaining
insights into product, sales, and marketing tactics. Implementing a stronger business strategy,
dodging competitors, and gaining market share are just a few benefits of performing a
competitive market analysis.
Competitive analysis helps you understand how conflicts work and identify potential
opportunities to overcome them.
You can also keep up with industry trends and make sure your products always meet and
exceed industry standards.
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Explore some more benefits of performing a competitive analysis. Helps identify the
unique value proposition of a product and what sets it apart from its competitors. This may be
useful for future marketing activities. You can see that your competitors are doing it right. This
information is important to maintain relevance and ensure that both product and marketing
campaigns exceed industry standards. Indicates where competitors are missing. It helps you
identify areas of opportunity in the market and test new and unique marketing strategies that
your competitors are not leveraging. Find out what's missing from your competitors' products
through customer reviews and consider how to add features to your products to meet those needs.
It provides a benchmark for measuring growth.

2.5.7 Creativity and Innovation

What is Creativity?
As the word suggests, creativity is about creation. It’s about harnessing the power of the mind to
conceive new ideas, products plans, thought experiments, tastes, sensations or art. Creativity can
be a form of expression or a way of solving problems. Anyone can be creative, and in any
context. There's creativity in the marketing department, just as there can be creativity on a
football pitch.
Creativity has traditionally been left to those ‘wacky’ companies that are deliberately trying to do
things differently, with the majority of businesses tending to favour a traditional and monotone
approach to running their organisations. However, the changing business landscape means that
companies are beginning to consider a more creative approach to working.

Why is creativity important?

Creativity can help a company manage tasks, improve staff performance and create quality
products. It is also vital in fostering a likeable and aspirational company image. With consumers
now able to get a snapshot of what company life is like, businesses need to be able to depict their
inner culture in a way that makes it seem appealing.
As new technologies continue to develop and become available, companies have to be flexible
and able to keep up to date. Creativity allows them to easily identify new ways in which
technology can be applied to help their businesses. Likewise, with social media and other
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interactive forms of marketing now available, it’s never been more important for companies to
be able to be creative.
Allowing employees to be more creative can inspire them to come up with more interesting ideas
as well as improve their overall output. Many of the world’s leading companies have started to
adopt unorthodox methods of encouraging maximum creativity from their employees, such as
sleeping pods and flexible working areas.

What is innovation?

Innovation, on the other hand, needs stability and establishment. It’s about changing a common
or long-standing process by improving it. It’s only by having a status quo in existence, that you
can develop it in order to innovate. So, while creativity and innovation share strong links, the
processes are entirely different.
Innovation is about taking newly created ideas and developing them into something useful and
practical. In many ways, innovation is the process of converting theory into action.
The most common type of innovation is evolutionary, which means finding ways of making
incremental improvements to your products and services. This type of innovation carries fewer
risks, as it’s generally easier to establish demand for these improvements and to calculate the
likely return on investment. However, it still requires a strategic, targeted approach – there’s
little point in improving a product in a way that customers don’t value.
The best way to identify opportunities for evolutionary innovation is to talk to existing customers
and find out what they value most about your products and services, and what aspects they’d like
to see improved. If longer battery life is their number one priority, then it probably should be
your number one target for innovation. However, if they also value the product’s easy
portability, it’s probably not a good idea for your new version to be much larger or heavier.
Why is innovation important?
Innovation is important because it’s the only way that you can differentiate your products and
services from those of your competitors. For customers and clients to choose your business, your
offer needs to be distinctive and valuable, and the only way to achieve this is through innovation.
It can be tempting to let your rivals do all the heavy lifting of creativity and innovation, with all
the investment, experimentation and risks that this entails. Then, when they come up with a
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dazzling new product or improvement, you can simply copy what they’ve done at a fraction of
the effort. However, there are several pitfalls to this approach.
Most importantly, you’ll always be playing catch-up. However quickly you get your version to
market, your rivals will always have the lead on you and they’ll already be planning their next
move. This means customers will go to your rivals first, who will maintain a reputation for
leading the pack. Your business won’t stand out because there’ll always be someone else who’s
already met the needs and desires of your customers. You’ll harm your own brand, and could
also risk infringing on your competitor’s intellectual property rights.
However, innovation doesn’t have to be focused on changing a product or service. If you can
find an innovative new process that enables you to create a product more efficiently without
compromising on quality, you’ll be able to stand out from your rivals by undercutting their
prices. Similarly, your innovation could come in the form of a new distribution system, enabling
you to stand out by offering the fastest delivery to customers.

2.6 Financial Considerations for Technology Planning

The availability of cash is one of the major inducements for a firm to make a technological plan.
Inorder to upgrade the technology of a firm, the firm should have enough funds at hand for
possible technological upgradation. The technology that exists today becomes out date in the
next decade. Now we are in a scientific era, where the rate at which technology development
happens is very high. A firm will gradually see its ruins if it fails to keep itself upgraded to
changing needs and scenario. Keeping this view in mind, An organization should keep allocating
funds for its technology upgradation at the right time. It should know the right time for the
technology change and should not wait for upgradation when it realizes when it is time for
upgradation. Failure or postponement will lead to trailing behind the competitors in business.
That statement succinctly expresses the basic relationship between cash flow and investment:
that higher interest expense leaves less room for investment expenditures, irrespective of other
theoretical considerations. Financial considerations are, therefore, important in influencing firms’
investment behavior.
Liquidity provides immediate spending power, as cash is the most easily realizable
resource compared to other tangible and intangible resources. In fact, the break-up value of cash
is its nominal face value. In comparison, the break-up value of a firm’s intangible assets, often
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having substantial market value, may be negligible, as these intangible assets are relevant only if
the firm is a going concern. Similarly, tangible assets may not realize the book value attributed to
them if the firm is no longer a going concern. Therefore, cash has a primary role as the only asset
that ultimately retains its original nominal value (subject to whatever adjustments are made for
inflation), and cash plays a key role in the theory of the firm
2.6.1 Technology and Low Cost-Low Price
Competitor analysis is a strategy that involves investigating key competitors and gaining
insights into product, sales, and marketing tactics. Implementing a stronger business strategy,
dodging competitors, and gaining market share are just a few benefits of performing a
competitive market analysis. The competitive advantage of low price is From right to left, the
first thing to point out is that customers usually don't care. What is the cost of the provider-the
only concern they have is what the price is Calculated and cost of the product. (Important
things:The exception is industrial customers who have close relationships with their suppliers.
Those who want to know everything about cost structure, quality system, etc.) Therefore, it is
important to note that there are other ways to get a lower price than simply reducing costs.
Subsidies (provided internally by the company or by the government) are used to lower prices
and change in exchange in international competition interest rates can lower or raise prices
overnight without changing the cost of the business. Wringing the last penny of cost out of
production activities may be more than counterbalanced by “fat” in distribution (outbound
logistics) activities for example.

2.6.2 Production Costs and Advanced Manufacturing Hardware

Technology
Equipment Cost: The financial accounting term cost of equipment refers to the asset
valuation method that applies to equipment appearing on a company’s balance sheet. The cost of
equipment would include all expenses associated with the acquisition of the equipment as well as
those needed to ready it for use by the company.
As the name implies, this asset would be part of the company’s property, plant, and equipment.
The cost would include not just the purchase price of the equipment, but all of the costs
necessary to ready it to be placed into service.
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Typically, these costs can include item such as sales tax, freight and handling charges, insurance
while in transit, the cost of preparing the site to receive the equipment, installation and assembly,
and testing to ensure it is operating as expected. The term equipment can apply to fixed assets
such as machinery, furniture, fixtures, computer systems, printers, office equipment and similar
items. Equipment is carried on the balance sheet at original / historical cost, and is reduced by
the contra asset accumulated depreciation to arrive at net book value. The sale of an asset can
result in a gain or loss, which is calculated as the net book value minus the sale price. Gains or
loss on the sale of equipment are recorded on the income statement

Labour Cost: Labour costs represent the total expenditure incurred by employers for the
employment of employees. They represent a cost of salaried labourforce, that is why they are
sometimes referred to as salary costs.
In addition to gross wages, labour costs include the social contributions payable by the employer
(social security, unemployment, pension, provident scheme, severance pay), whether
compulsory, conventional or optional, but net of exemptions, in particular of reductions in social
security contributions. They also cover the costs of vocational training (apprenticeship tax,
employers' contributions to the financing of vocational training, etc.), taxes on wages and other
taxes relating to employment, net of subsidies intended to promote employment and received by
the employer, such as the tax credit for competitiveness and employment (CICE), for example.
Finally, they include other expenses related to the employment of employees such as recruitment
costs.

Materials Cost: Material cost is the cost of materials used to manufacture a product or provide a
service. Excluded from the material cost is all indirect materials, such as cleaning supplies used
in the production process. Follow these steps to determine the amount of material cost to assign
to a unit of production (such as a completed finished goods item):
·
 Ascertain the standard quantity of the material used to manufacture one unit
 Add the standard amount of scrap associated with manufacturing one unit.
 Determine the standard amount of scrap associated with setting up the production run,
and apportion it to the individual unit.
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 If any scrap is then sold, apportion the revenue back to the individual unit.

For many materials, the cost of scrap and the revenue from the resale of scrap are so
small that it is not worthwhile to apportion it to the material cost.

2.6.3 Production Costs and Advanced Manufacturing Management

A cost management plan is important because it creates a detailed outline of your
advanced manufacturing budget.It helps the management to stay organized and on track to hit
their management plans and deliverables.If youdon’t estimate costs accurately, allocate sufficient
resources where they are needed, and regularly monitor spending, the company can run the risk
of budget overrun. This can lead to overall manufacturing management failure. Therefore, cost
planning in advanced manufacturing management is crucial in keeping your resources up to date.
A management plan can also be highly beneficial for cutting unnecessary costs. Like new
models of advanced manufacturing machines may keep coming up in the market. But a good
management should also look at the utilization of its machines and equipment and should know
the right time for replacement. When it is replacement time, the management should also know
with experience or through expert advice what level of advancement it should go for at all
divisions of manufacturing.

Technology
Summary
There are basically three types of organisations namely Functional, Project and Process.
 Organisational redesign also known as Business Process Reengineering is useful as it
takes into account the customers views which are essential to ensure that the final design
ultimately satisfies them.
 Some of the major tools and techniques of Business Process Reengineering includes -
Purpose Analysis, Competitive Comparison, Process Quality Management, Change
Management and Brown Paper Flowcharting.
 Organisational Reengineering is a technique used to redesign business processes in order
to take advantage of organisational strengths called core competencies. Using this
technique, an organisation can align itself for the future and increase its market share and
profitability.
 Critical factors in a reengineering effort include:- giving people a mission and a road map
for choosing appropriate actions; providing superb service; making change a way of life
rather than a process; using technology effectively; understanding that time is a limited
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resource; recognizing that reengineering is a huge job; and approaching reengineering as

a lifetime venture.
 Financial considerations for technology planning are research and technology phase;
research and development; competitive analysis; creativity and innovation; technology
and low cost-low price and production costs; and advanced manufacturing hardware
technology.
 The production costs include Plant and Equipment costs, Labour costs and Material costs.
 Some Japanese manufacturing management practices can affect production costs like JIT
lowers WIP inventory and plant costs; TQC lowers scrap, reworks and other costs of poor
quality; Karban scheduling systems lower finished goods inventory and WIP inventory
costs

Keywords
 Competitive Advantage: Competitive advantage means when an organization or a
business enterprise acquires or develops an attribute or a combination of attributes that
allows it to outperform its competitors.
 Change Management: Change management is the application of a structured process and
set of tools for leading the people side of change to achieve a desired outcome.
 Business Process Reengineering (BPR): It is the analysis and redesign of workflows
within and between enterprises to optimize end to end processes and automate non value
added tasks.
 Total Quality Control (TQC): The application of quality management principles to all
areas of business from design to delivery instead of confining them only to production
activities.
 SWOT Analysis: A SWOT Analysis is a structured planning method used to evaluate the
strengths, weaknesses, opportunities and threats involved in a project or a business
venture.
Self-Assessment Questions.
Short Answer Questions
1. What are the three types of organisations?
2. What is organization design?
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3. What are the 3 principles of RE?

4. What is steady state design?
5. What is dynamic design?
6. List some of the tools and techniques of BPR.
7. What are the responsibilities of a steering team?
8. What do you mean by competitive advantage?
9. Give few of the critical factors in a re-engineering effort.
10. What are the steps in the research and technology phase in the financial considerations
for technology planning?
11. What is competitive analysis?
12. What are the plant and equipment costs?
13. List some of the Japanese manufacturing management practices.
Long Answer Questions
1. What is an organisation redesign process?
2. Explain in detail the different phases involved in an organisation redesign.
3. Discuss various types of organization structure.
4. How does the scale of BPR affect the project?
5. Describe the various tools and techniques of BPR.
6. Explain organisational reengineering in detail along with how it has affected the global
organisational culture.
7. Who are the people responsible for driving organization redesign process and what are
their roles?
8. What are the financial considerations for technology planning?
9. What are the different production costs and different technologies employed in the
advanced manufacturing management technology
Further Readings
1. Graynor, Gerard H., (2007), Digital, Handbook of Technology Management, McGraw Hill
2. Khalil M., Tarek., (2009), Management of Technology, McGraw Hill
3. Khurana, Vijay Kumar, (2007), Management of Technology and Innovation, Ane Books India
4. Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009), Management of Technology, HPH
5. Narayanan V.K., (2009), Managing Technology and Innovation for Competitive Advantage,
Pearson Publishers
6. Szakonyl, Robert, (2008), Handbook of Technology Management, Viva Books Private Limited
7. White, (2007), The Management of Technology & Innovation, Thomson Publications
8. https://www.makeadentleadership.com/organization-redesign-process/
9. https://www.betsyjordyn.com/blog/steps-to-organization-redesign
 68

10. Robert W. Keidel, Sherry M. Bell and Kevin J. LewisRethinking Organizational Design
[and Executive Commentary] The Academy of Management Executive (1993-2005) Vol. 8,
No. 4, Restructuring, Re-Engineering, and Rightsizing (Nov., 1994), pp. 12-30 (19 pages)
 69

UNIT II
LESSON 3 - TECHNOLOGY CYCLE

CONTENTS
Learning Objectives
After studying this lesson, you should be able to:
 Learn the principles of technology cycle
 Understand how organizations respond to technological changes taking place in the
business environment
Learning Outcomes
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 explain technology cycle
 concept of technology cycle management
 recall responding to technological changes
 define dimensions of uncertainty
Overview
3.1 Technology Cycle
3.1.1 Technology Cycle Management
3.1.2 TCM: A Closer Look
3.2 Responding to Technological Changes
3.2.1 Nature of Change
3.2.2 Five Steps To Successful Technology Change Management
3.2.3 How to face Technological Change
3.2.4 Certain prominent type of issues:

3.1 Technology Cycle

The TechnologyCycle can be defined as how the technology and its processes affect the business
processes and impact the entire life cycle of the product offerings of the company from the
research and development stage to the growth, maturity and decline stages of technology.

1) Research and Development Phase

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The research and development are also called as the bleeding edge as the income from the inputs
being put in making the technology are negative in nature and the chances of failure of
technology are quite high in nature. As the revenues are quite, the money for developing the
technology is poured from your own pocket. At this stage, it is very important to take the
feedback on the technology developed from the industry experts and tweak it to match as per the
industry standards and to give it an edge of innovation and novelty.
2) Ascent Phase
The ascent phase of the Technology Life Cycle is also called as the leading edge as the company
starts to recover the costs and expenses that have been incurred and plus the technology
developed begins to gather strength and goes beyond the initial point of development to get
accepted in the market. The company creates all the hype and promotion of the innovation and
newness of the technology grabbing the attention from all the quarters.
3) Maturity Phase
The maturity stage arrives when the gains from the technology are high and stable but there is
also a point of saturation. The technology developed is well accepted by the public but as the
competitors are well aware and have caught with the realms of the technology developed, the
market has reached the point of saturation. The revenues start to get slow down as the technology
developed starts to become yet another commodity in the market. In order to stay relevant in the
market, it is very important to make the incremental and innovative changes in the technology
considering the changing dynamics of the markets and the evolving tastes of the customers.
Keeping an eye on the competition is also very important at this stage.
4) Decline Phase
The decline phase is inevitable in nature most of the times and here is when the companies
witness the decrease in sales of its products and there is a need or an emergence of the new and
replacement of the technology. Many a time, the companies reach the point where there are no
returns at all and further developments are not profitable at all. The best possible step that the
company can initiate is to move out of the current technology and plant its resources on the new
project that is sure to yield more profits.
3.1.1 Technology Cycle Management
When it comes to investing in technology, everyone wants the same thing: Maximum
functionality and flexibility at the lowest price. Rarely is it possible to have more than one
without compromising on the other two. It’s therefore important that CEOs and their top
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technology officers understand the dynamics of how to best manage their technology portfolios.
An approach called Technology Lifecycle Management (TLM) can be a useful tool, regardless of
the size of your company.
Technology Lifecycle Management is the strategic approach that examines and plans for the IT
infrastructure of the organization. It encompasses multiple phases from the research and
planning, all the way through the decline and retirement of the technology. As an executive, your
goal for TLM is to bring together the knowledge, processes, and technology into a model that
allows the organization to budget and manage technology for the long-term, while
accommodating for growth.

For technology companies or large manufacturers, TLM can be a complex affair. There may be
patents or trademarks involved, which can prolong the useful life of a process or technology until
the rest of the market is able to catch up. Conversely, a patented technology’s lifespan can be
shortened through litigation or divulging of any secret elements.

Fortunately for CEOs of most medium- and small-businesses that aren’t in the tech sector, TLM
is simpler, but no less important. Chances are good that, whatever technology you decide to
spend money on today, something better and cheaper is just around the corner.

Still, the principles of TLM are roughly the same for large or small, and tech or non-tech,
companies. They also apply both to the stage of the technology you’re investing in – and to your
use of the technology once you’ve deployed it.
Whether you’re investing millions in a new process or figuring out which cloud-based
accounting system to choose at only hundreds of dollars per month, all technologies exist in one
of four phases.

The R&D Phase: First there are the sunk costs of identifying a problem, researching options and
developing a solution (the R&D phase).
Then, once a solution is implemented, the technology delivers a certain amount of gain (the
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ascent phase).Eventually those gains level off (the maturity phase)

Finally, those gains are gradually exhausted (the decline phase) as newer, more efficient
technologies or processes render the solution obsolete.

3.1.2 TCM: A Closer Look

The 6 Steps of Effective Technology Lifecycle Management

Technology lifecycle management is a growing focus of enterprises, government organizations,

and nonprofits. The diversification of technology solutions, from contained, in-house systems to
a varied environment with cloud applications and infrastructure, fleets of mobile devices and a
broadened security plane have created a much more complex technology landscape.
Chief information officers are more likely to be sitting in the conference room, directing business
strategy, and evaluating how technology will support growth and opportunities, rather than
monitoring the updates necessary on the company’s servers. IT professionals are increasingly
focused on cyber security and finding strategic approaches to data storage, analysis, and insights.
The focus on operations and maintenance has often been deprioritized due to the demands on IT
for more attention to the customer experience and data security.
As a result, organizations are looking for solutions in the area of technology lifecycle
management. There are a few reasons why investing in this area is beneficial to enterprises and
nonprofit organizations:
 It streamlines the entire IT experience, with benefits like a single monthly
invoice and only having to call one number when a system component is down.
 It allows the enterprise to benefit from the provider’s extensive relationships in
the technology industry, gaining cost savings from bundling devices or services.
 Regular reviews and monitoring of devices, systems, and update or replacement
schedules mean that systems are always running in peak performance levels.
Oversight of the entire technology lifecycle — from assessing needs to the final disposal or e-
cycling of the component.
While this is just a sampling of the extensive advantages of technology lifecycle management,
the likelihood of realizing these and other benefits of this approach rests on an effectively
executed process.
Each component of technology lifecycle management provides standalone value to the
organization. For instance, any enterprise would benefit from a provider that guides them
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through their assessment process, or who provides the service of monitoring updates and security
patches or the disposal of their devices. In order to achieve the most value from a technology
lifecycle management plan, the following steps should be included:
Assess business needs and identify solutions/devices: This critical first step examines current
business needs, as well as future growth plans and accommodates phases of the technology
lifecycle. It includes business and technical stakeholders and generally produces a
comprehensive report with key elements:
 Acquisition plan
 Financing plans in alignment with budget availability
 Support plan
 Implementation plans
 Asset tracking guidelines
 Asset retirement plan
The assessment stage is proactive, looking at expansion plans and goals for how technology can
support business objectives. It weighs in-house IT services versus outsourcing to as-a-service
options and determines metrics for evaluating whether technology lifecycle management has
been effective for the organization.
Acquisition: The acquisition stage executes the objectives laid out in the assessment phase. It
involves the procurement of technology assets and the logistics of each purchase, as well as
finalizing the financing of the acquisition.
Implementation and management: This step will look different in each organization, but it
includes the deployment and integration of the solution or device into the IT environment. It also
includes the tracking of the technology elements, with an identification of what purpose each
serves and who has ownership of the element. This step has become increasingly challenging
because of the added complexity of remote workers and cloud solutions broadening the scope of
the types of assets being utilized as well as their locations.
Support: Technology lifecycle management involves comprehensive support for the optimized
performance of the IT environment. From the proactive monitoring of incidents, phone support,
and configuration management to evaluating the extension of product warranties and conducting
periodic reviews of system performance metrics, this step is a valuable element of this approach
to the IT environment.
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Refresh: This critical step ensures that funds are set aside for the future technology requirements
of the organization. Refresh objectives are driven business strategies and tend to run in cycles of
two to five years to optimize the devices and system components supporting the goals of the
organization.
Asset disposal: Full-service technology lifecycle management includes a plan for asset disposal
that is set forth in the initial report developed in the assessment phase. Most organizations don’t
have a plan for asset disposal, nor do they benefit from the resale of retired devices. This part of
the process turns this responsibility over to the lifecycle management provider and relieves the
organization of the concerns surrounding the environmental impact of retiring technology. A
lifecycle management provider will have e-recycling capabilities that support the values of the
organization.
Enterprises and nonprofit organizations that most effectively harness technology to support
business objectives are guided by strategic plans for technology lifecycle management. A plan
for the optimization of technology resources ensures minimal downtime, removes unexpected
expenses and proactively anticipates the role technology can play in improving productivity,
elevating the end-user experience, and driving innovation.
3.2 Responding to Technological Changes

3.2.1 Nature of Change

Change isn’t easy, and implementing new technology is particularly difficult. People tend
to dislike change unless they perceive it as personally beneficial. Unfortunately, new technology
is rarely viewed that way — even when it is.
What is technology change management?

Change management generally adopts, controls and implements change. Technology

change management identifies new technology and then implements it for improved productivity
and profitability. It reduces resistance, improves communication and addresses the challenges
inherent in major change.

Why do technology change initiatives fail?

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According to McKinsey & Company, a whopping 70% of digital transformations fail. And a
recent BCG survey reveals 75% of transformation efforts don't deliver the anticipated results.

Why? Technology project goals are often improperly defined and poorly communicated. This
frightens and frustrates employees. Instead of adoption, you get resistance, misalignment across
departments and competing interests without common goals.

Five Steps To Successful Technology Change Management

1. Set and communicate clear goals.

Whether you're introducing e-commerce or any other technology, precisely define and align
project goals with company goals.

A well-articulated case demonstrates the leadership, foresight, and determination to complete the
project. Goals may address:

• Improving customer experience.

• Streamlining processes.
• Future-proofing the business.
• Consolidating mergers and acquisitions.
• Capturing opportunities.

Once goals are set, they clearly communicate the need for change. Your rollout process should
kick off with communication from senior management that clearly explains the need for the new
technology, provides an overview of the adoption process and places an emphasis on the positive
impact the new technology will have on the company and employees.

2. Build a team.
A technology change management team requires a special combination of skills and
personalities. Tap those who possess leadership skills, understand the need for change, and can
relate to and reassure others. Spread leadership responsibility horizontally to keep all
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departments connected, engaged, and productive. Assemble a team that can adapt to changing
situations, learn from setbacks, and adjusts quickly. Make the team multigenerational. Older and
younger employees approach technology differently, so it’s important to have a blend of both.

3. Define a strategy.
Leaders are often wary of large, transformative changes. The minimum viable product (MVP)
approach addresses these fears. This iterative process prioritizes generating value, gathering
feedback and adjusting in incremental stages to deliver the desired results. I recommend the
MVP approach because it allows a company to test an idea without unnecessary risk, optimize
resources and get to market faster. You experience quick wins with minimal investment. This, in
turn, enhances the desire for additional changes.

4. Plan for resistance.

Overcoming resistance is key. Use different strategies for internal and external adoption.

Internal adoption:
• Provide regular training. Create a knowledge base and training videos, host meetings, or
introduce an online help manual.
• Reward early adopters. Use gamification, compensation, swag or company perks.
• Treat adoption as ongoing. Host meetings and training sessions, and encourage
employees to participate in discussions.
• Solicit employee feedback. Incorporating employee ideas promotes ownership and
adoption.
Customer adoption:
• Offer promotions, discounts, or access to exclusive products and services to reward early
adopters.
• Create content such as blog posts, how-to guides, podcasts, case studies, video tutorials
and webinars to educate customers.
• Solicit customer feedback through one-on-ones, surveys or discussion forums.
5. Ensure continuous improvement.
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Successful technology change management requires an ongoing commitment to

continuous improvement. This requires iteration until the desired results are achieved. The MVP
approach perfectly supports the process of continuous improvement.
A U.S. pet food distributor we worked with had rapidly expanded through acquisition to become
one of the nation’s largest pet supply distributors. They inherited different websites, ERPs,
warehouses and disconnected business solutions. This patchwork approach required customers,
vendors and sales reps to access multiple systems to place and manage orders, determine pricing
or promotion eligibility and manage accounts.

Bringing everything together represented a major technology change to be managed. The MVP
approach allowed them to implement change and realize improvements without disrupting
operations. They started by eliminating data silos and unifying data from legacy systems.

Throughout change implementation, the company continuously communicated the value of the
improvements to employees and customers. Their initial goal was to move 10% of their
customers online. However, once customers experienced a smooth, self-service experience that
didn’t require multiple applications, adoption grew quickly.

The MVP was the foundation for a continued digital transformation. Subsequent iterations
included a mobile app for quick reordering by scanning product codes, B2B2C capabilities so
retailers could quickly launch their own integrated storefront, and 3PL support to streamline
logistics.

Had the company set out to change its entire digital presence at once, the project would have
likely failed. But by taking the continuous improvement approach and iterating an MVP, they
successfully managed major technology change with minimal disruption. Technology constantly
changes, but the steps to successful technology change management remain static.

How to face Technological Change

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In an organization, In many instances, Implementation of new technological adjustments

usually has some resistance among the employees,whilst when they involve andput themselves
forcefully into it, helps in realizing its benefits.

A successful change of method may happen rapidly, but new versions, formats or innovations
that decision for razing or significantly modifying acquired knowledge to adapt emerge even
faster still.

The value lies in understanding that, inevitably, companies and technology go hand-in-hand.
albeit they wanted to urge obviate it, this is often not always an option when aiming for
continuous improvement and a successful presence on the market.

The combination of costs, corporate risks and their complexity are important reasons why
companies should stay top of technological changes and incorporate them if they provide value.
it's important to recollect that if there's one thing that's permanent during a company, that's
change; evolution is an intrinsic characteristic of today’s companies.

When a corporation is forced to adapt to vary , an issue pops up: Is it able to do so? the solution
isn't simple; it requires analyzing variety of things that affect the convenience or difficulty of the
method that comes with change.

Some of them are linked to:

THE ORGANIZATIONAL CULTURE

The paradigms and policies deeply rooted across the whole organizational culture usually cause a
setback or obstacle within the outlook of technological change.

MEMBER ATTITUDE

Undertaking challenges as a part of an organization’s activities requires its members to be

predisposed to undertake and sustain them by means of an outlook oriented toward continuous
improvement.
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However, this is often not always the case. an outsized number of companies experience a
reluctance to implement technology. this is often an important effort that directives must
encourage when the time involves transform the reluctance of employees.

KNOWLEDGE

The lack of data regarding new technological innovations may be a common hindrance, and it
must be eradicated through efficient communication and internal training where members can
dispel their doubts and obtain to understand the advantages to the new technology in order that it
are often used and applied to their own, and therefore the company’s, benefit.

GENERATIONAL RELUCTANCE

Companies that have older workers may experience more reluctance regarding the addition of
latest technology.

CONFIDENCE

Despite its multiple benefits, technology can cause certain feelings of insecurity, which is
detrimental to the corporate and its workers.

There are many cases where and advance has made employees feel that the innovations might
replace their added value within the workplace. Nothing might be beyond the reality .
Technology requires employees even more for its control and operation.

Once the foremost important factors of reluctance to vary are identified, companies have the
challenge of implementing the required strategies to spot problems and manage an adequate
internal communication that informs employees that the technological change is a chance for
private and organizational growth.

To do this, one must consider the subsequent aspects:

Mentoring actions: This method is effective toward the acceptance of latest technologies,
since it offers the foremost reluctant employees the support of a peer who progressively allows
them to know the necessity for the modification. the method includes motivation, incentive and
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visualization of the benefits; the supply of sufficient time to adapt; fostering support among
employees; listening and continuous assistance.

Training: the simplest method to realize adaptation is training workers in reference to the
technology to be implemented. Knowledge may be a key tool to accomplish change, not only in
reference to technical or operational matters, but also to deeper ones, like raising awareness
regarding the utilization of latest technological tools for everyone’s benefit.

Summary
 Technology Cycle Management (TCM) is a multi-phased approach that encompasses the
planning, design, acquisition, implementation, and management of all the elements
comprising the IT infrastructure.
 Specifications for the appropriate technology are created from the results of the technical
evaluation and needs analysis. The end-user needs analysis, which involves identifying
and categorizing specific business, operational, and technical needs, and defining
requirements and expectations from the customer/user perspective, provides the details
for an outcome plan.
 Regularly scheduled reviews and assessments of the IT infrastructure systems enable
organizations to ensure that the technology integrated into their IT infrastructures
continues to perform to expectations.
 A complete assessment of the costs and resources required to manage assets through the
entire technology lifecycle enables an organization to plan for the disposal of the devices
when they reach the end of their useful life.
 Acquiring technology assets and services involves executing the recommendations
developed during the assess and identify phase of the TCM process and includes: (1)
Procurement of assets (2) Logistics planning
 (3) Finalization of financing.
 Asset management is important for ensuring IT security and the organization’s ability to
recover vital assets and information. Effective asset management requires a well-planned
implementation of a data repository that stores and manages information on where the
assets are located throughout the enterprise.
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 Under a traditional capital acquisition plan, funds that were allocated for refresh may go
to other departments. With TCM, the funds for refresh are secure. This enables IT
departments to upgrade the IT infrastructure to keep up with increasing user demands and
applications and prevent system failures and service interruptions.
 The disposal of retired assets is addressed during the planning phase and is Notes
 a standard offering of full-service TCM vendors. Some organizations may choose to
cascade technology to administrative or other business units that do not require the most
advanced computing platforms.
 Computer technologies are not neutral - they are laden with human, cultural and social
values.
 Communications technology is supporting distribution rather than centralization of
control can be highly disruptive, notably for those governments, organizations and
individuals who have a material interest in the ownership and control of information and
knowledge systems.

Keywords

 Return On Investment (ROI): A performance measure used to evaluate the efficiency of

an investment or to compare the efficiency of a number of different investments.
 Earned Value Management Standards (EVMS): It is a project management technique for
measuring project performance and progress in an objective manner.
 Asset Disposal: Asset disposal is an act of selling an asset usually a long term asset that
has been that has been depreciated over its useful life like production equipment.
 Technology Acquisition: It is the process of acquiring a new technology, new product,
process or service by efforts of an individual or enterprise.
 Technology Refresh: It is defined as the periodic replacement of technology to ensure
continued viability and protection against the technology becoming obsolete.

Self-Assessment Questions
Short Answer Questions
1. What is technology cycle management?
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2. What is technology refresh?

3. What is asset disposal strategy?
4. What are the steps in the technology acquisition process?
5. Why is asset management important?
6. What should be included in the support services?
7. What is the purpose of personalization?
8. What is the long term structural impact of ubiquity?
9. How can communications technology be disruptive?
10. What is the challenge for education
Long Answer Questions
1. What are the steps in the Technology Cycle Management process? Explain in detail.
2. What are the major areas of technological change and the challenges faced by them?
3. What are the issues and concerns regarding technological change?
4. Describe the financial planning.
5. How does technology acquisition and its integration and implementation come under
financial planning purview?
6. Discuss about autonomy and personalization and how they affect technological change

Further Readings
Graynor, Gerard H., (2007), Digital, Handbook of TechnologyManagement, McGraw Hill
Khalil M., Tarek., (2009), Management of Technology, McGrawHill
Khurana, Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009),Management of Technology, HPH
Narayanan V.K., (2009), Managing Technology and Innovation forCompetitive Advantage, Pearson
Publishers
Szakonyl, Robert, (2008), Handbook of Technology Management,Viva Books Private Limited
White, (2007), The Management of Technology & Innovation,Thomson Publications
https://www.unicomgov.com/files/4914/9994/9798/UGI_TLM_WhitePaper.pdf
https://profitadvisorygroup.com/blog/the-6-steps-of-effective-technology-lifecycle-management/
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LESSON 4 - ADOPTION OF TECHNOLOGY

CONTENTS
Learning Objectives
After studying this lesson, you should be able to:
 Describe the adoption of technology in organizations
 Understand how the management succeeds in overcoming resistance to new technology
by the workers
 Discuss or grasp the different approaches used for adoption of technology
Learning Outcomes
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 define adoption of technology
 explain technology cycle and its users
 determine overcoming resistance
 user resistance to change impedes software adoption
 reviewing information systems research approaches
 recall different methods of adoption
Overview
4.1 Introduction to Adoption of Technology
4.1.1 Technology Cycle and Its Users
4.1.2 Technology diffusion
4.1.3 Strategies for overcoming resistance to change
4.1.4 Factors influencing technology adoption
4.1.5 Adoption Diffusion and Dissemination
4.2. Understanding Resistance
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4.2.1 Identifying Resistance

4.2.2 Tactics to overcome resistance to change
4.3 Technology adoption strategies
4.4 Technology Adoption Challenges
4.4.1 Employee Resistance
4.4.2 Insufficient Onboarding and Training
4.4.3 Measuring the Rate of Adoption
4.4.4 Poor Leadership and Communication
4.5 Steps to successful technology adoption
4.5.1 Proceed one step at a time
4.5.2. Develop a training approach early
4.5.3 Coordination of technology and strategy
4.5.4. Highlight progress and celebrate victories
4.6 How to Drive Technology Adoption With A Digital Adoption Platform
4.6.1 Advantages of a Digital Adoption Solution
4.6.2Apty Adoption Platform
OVERVIEW
No one can deny the fact that technology has a huge impact on businesses all over the world. For
all these businesses, technology has opened up a whole new world of information and
possibilities, allowing them to obtain a better understanding of their customers, improve their
products and services, and optimise their operations, among other things at a rate that is
unimaginable. However, introducing new technology isn't easy, and it is frequently faced with a
lot of resistance from employees who are accustomed to and comfortable doing their daily
routine jobs in a certain way and might have developed a strong will of ‘Don't want to change’.
In this lesson we will learn about certain aspects of adoption of new technology, how to
overcome resistance to the adoption and the different approaches used to facilitate the same.

4.1 Introduction to Adoption of Technology

There are basically five steps in consumer adoption process, like awareness, interest,
evaluation, trial, and adoption.
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1. Awareness Stage:
Individual consumer becomes conscious of the innovation. he's exposed to innovation but
knows little or no regarding the innovation. He has only limited information about it. he's
conscious of either by discussion with friends, relatives, salesmen, or dealers. He gets idea a few
new product from various means of advertising like newspapers, magazines, Internet, television,
outdoor media, etc. At this stage, he doesn’t give much attention to the new product.
2. Interest and knowledge Stage:
In this stage, the buyer becomes curious about innovation and tries to gather more information.
He collects information from advertising media, salesmen, dealers, current users, or directly from
company. He tries to understand about qualities, features, functions, risk, producers, brand,
colour, shape, price, incentives, availability, services, and other relevant aspects. Simply, he
collects the maximum amount information as he can.
3. Evaluation Stage:
Now, accumulated information is employed to guage the innovation. the buyer considers
all the many aspects to guage the price of innovation. He compares different aspects of
innovation like qualities, features, performance, price, after-sales services, etc., with the
prevailing products to reach the choice whether the innovation should be tried out.
4. Trial Stage:
Consumer is prepared to undertake or test the new product. He practically examines it.
He tries out the innovation during a small scale to urge self-experience. He can purchase the
merchandise, or can use free samples. this is often a crucial stage because it determines whether
to shop for it.
5. Adoption Stage:
If trial produces satisfactory results, finally the buyer decides to adopt/buy the innovation.
He decides on quantity, type, model, dealer, payment, and other issues. He purchases the
merchandise and consumes individually or jointly with other members.
William Stanton, the author of serval books on marketing and sales forecasting advices us
to considers the sixth steps that is post-adoption stage.
6. Post Adoption Behaviour Stage:
This is the last stage of consumer adoption. If a consumer satisfies with a replacement
product and related services, he continues buying it frequently, and vice-versa. He becomes a
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daily user of innovation and also talks favourable to others. this is often an important step for a
marketer.
In every stage of consumer adoption, a marketer is required to facilitate consumers. He must take
all possible actions to form them try, buy, and repeat buy the innovation. Be clear that each sort
of consumer (innovators, early adopters, early majority, late majority, or laggards) follows all the
stages of adoption process, but takes different amount of your time to adopt the innovation.
4.1.1 Technology Cycle and Its Users
In 1962, the sociologist Everett Rogers published the book Diffusion of Innovations. In
this book, he classified consumers in distinguished groups based on their purchasing behavior.
He based this classification using research from over 500 diffusion studies. Today, the model is
well known as the Technology Adoption Life Cycle. This model comprehensively describes the
adoption or acceptance of a new technological product or innovation. In Crossing the Chasm,
Geofrey Moore elaborates the marketing techniques to successfully target mainstream consumers
based on customer groups in the diffusion lifecycle.
Customer groups
Based on demographic and psychological characteristics, customers fall into one of the 5
adopter groups, namely:
1. Innovators
2. Early Adopters
3. Early Majority
4. Late Majority, and
5. Laggards
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Distribution:
As can be observed, the technology adoption lifecycle has a bell curve. The divisions are
approximately equivalent to where standard deviations would fall. This means:
• Innovators make up about 2.5% of the total population
• Early Adopters about 13.5%
• Early Majority and Late Majority both at 34%, and
• Laggards the remaining 16%
Each group represents a unique psychographic profile i.e. a combination of psychological
and demographic traits. Hence, marketing to these groups require completely different strategies
from those of other groups. Marketers, by better understanding the differences among the groups,
can better target all of these consumers with the right marketing techniques.
Innovators:
Innovators are technology enthusiasts. This is the first group of consumers that are likely
to invest in your product. Innovators aggressively pursue new products and technologies.
Sometimes, they seek out innovations even before the company has launched a formal marketing
program. This is because technology occupies a central interest in their life or business. For this
customer group, completeness of product feature set or performance are secondary.
Unfortunately, there aren’t a lot of innovators (roughly 2.5%) in any given market segment.
Usually, they are unwilling to pay a lot for new products. Nonetheless, winning them over is
important because their endorsement offers the required reassurance for other consumers in the
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marketplace. Furthermore, technology enthusiasts serve well as a test group to make the
necessary modifications before targeting the mainstream.
Early Adopters:
Like Innovators, early adopters are visionaries that buy into a new product concept very
early in its life cycle. However, unlike Innovators, they are not technologists. Rather, they are
visionaries that are not just looking for an improvement, but also a revolutionary breakthrough.
Consequently, they are willing to take high risks trying something new. They are the least price-
sensitive of the customer groups and are highly demanding in product feature set and
performance.
Early Adopters do not rely on well-established references in making buying decisions.
Instead, they prefer to rely on their own intuition and vision. In addition, they are willing to serve
as highly visible references to other adopter groups in the population. Since visionaries are good
at alerting the rest of the population, they are of upmost importance to win over.
Early Majority:
This customer group comprises of the Pragmatists. The first two adopter groups belong to
the Early Market. However, in order to become truly successful, a company must win over the
Mainstream Market, starting with the Early Majority. These Pragmatists share some of the Early
Adopters’ ability to relate to technology. However, they are driven by a strong sense of
practicality. They know that many inventions end up as passing fads. Consequently, they are
content to wait and see how other customers are faring with the technology before investing in it
themselves. They want to see well-established references before investing substantially. Because
there are so many people in this segment (roughly 34%), winning these people over is
fundamental for any business that strives for substantial profits and growth.
Late Majority:
This group comprises primarily of the Conservatives. The Late Majority as a group is
about as big as the Early Majority (34% of the total population). They share all the concerns of
the Early Majority. In addition, they believe far more in tradition than in progress. Customers in
the Early Majority group are comfortable with their ability to handle a new technological product
if they decide to purchase it. In contrast, members of the Late Majority are not. As a result, these
Conservatives prefer to wait until something has become an established standard and invest only
at the end of a technology life cycle. Even then, they want see lots of support and tend to buy
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from large, well-established companies only. Being the market leader is therefore an important
prerequisite in order to win over the Late Majority.
Laggards:
This group is comprised of the Skeptics. This segment constitutes 16% of the population.
These people simply don’t want anything to do with new technology. The only time they ever
buy a technological product is when its buried deep inside another product. These Skeptics have
a strong believe that disruptive innovations rarely fulfill their promises. They are almost always
worried about unintended consequences. From a market development perspective, Laggards are
usually regarded as not worth pursuing. However, their criticism on the product feature set and
performance provide valuable feedback for technology companies.f
The Chasm
You can see a gap between Early Adopter and Early Majority groups in the Technology
Adoption Life Cycle. This gap represents the chasm that the technology has to cross. It signifies
the credibility gap that arises from using the group on the left as a reference base for the
customer base on the right. The chasm exists because consumers trust references from people
that belong to their own adopter group.
Of course, this creates a challenging dilemma for technology companies.
How could you use people from the preferred reference group if they haven’t bought
from you yet?
In other words, using customers from one group as references for the other groups is
highly ineffective. Hence, the Chasm!
Since the leap from the Early Adopters to the Early Majority means the transition from
the Early Marktet to the Mainstream Market, crossing the chasm is of upmost importance to truly
achieve market success with a newly launched product / technology.
4.1.2 Technology diffusion
Technological diffusion is defined widely as the process by which the market for a new
technology changes over time and from which production and usage patterns of new products
and production processes result.
Factors affecting technology diffusion
The four main factors that influence the spread and adoption of new technology are:
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· The nature and degree of innovation of new technologies. This factor is difficult to
measure, especially when technology is truly new. We do not know precisely how innovative is
the major innovative inventions such as lights and locomotives were of its time.
· Communication channel. This factor determines the transfer of information from one
unit to another. Nowadays, the internet facilitates information and the adoption of new
technologies more quickly. When there is an innovation in a country, the information can quickly
spread to various countries through the internet.
· Time. The new technology takes time to be widely adopted.
· Characteristics of human resources. This factor can be related to demographic variables
such as education level or social system, such as the presence of opinion leaders.

4.1.3 Strategies for overcoming resistance to change

When considering the strategies and techniques for reducing resistance to change, there are six
broad areas in which organizations must operate.
1. Communication and education
Common issues that cause resistance to change include fear of the unknown and a
misunderstanding of why change is needed.
People will only accept change if they believe the risk of doing nothing is higher than the risk of
changing direction. Similarly, if people don’t understand why change is needed, they will
question why you are changing something that they believe works well.
Communication and education about the change should begin before it is initiated. This will help
your people to rationalize the change, and ensure that individuals and teams receive adequate
information to make positive judgements.
2. Participation
A lack of belief that the organization can make effective change leads to resistance to change.
Likewise, when people aren’t consulted and change is forced upon them, there is likely to be
more resistance. This is especially the case if people believe their jobs will be at risk.
It is critical that the stakeholders and those implementing change are involved in its design. A
collaborative effort will engage people in the change, and in the identification of potential issues
and solutions. People are far less likely to resist change that they have helped to create.
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Many studies have shown that participation has wide-ranging positive effects during periods of
organizational change. For example, a 2011 study (Change Recipients’ Reactions to
Organizational Change: a 60-Year Review of Quantitative Studies) found that participation
reduces resistance to change and leads to positive effects such as change readiness and
acceptance, a sense of competence, a sense of control and better trust. Participation will reduce
the stress that snaps your people’s desire to change.
Another participative strategy is to employ socialization, putting people before practice and
ensuring that shared values crush resistance to change.
3. Support
Organizational transformation is usually accompanied by a change to routines, taking people out
of (long-established) comfort zones. This may also lead to exhaustion, especially if the
organization is subject to frequent change or business evolution.
Even if people appear to be accepting of change, it may be that they are simply resigned to it.
They must be given the support needed to enable new skills to be developed and ensure that
change burnout does not become a reality.
Support requires managers to develop their emotional intelligence and connect with their people.
Offering adequate support is also time-consuming, requiring trained managers and leaders to
employ coaching tactics to be most effective when managing change in an organization.

4. Agreement
Resistance to change is also precipitated when people feel they will be negatively affected by its
consequences. This may be because of a perception that their earnings or career potential will be
harmed or that the rewards of the change are not worth the effort required.
To combat this type of resistance to change, an organization may consider offering incentives.
Such incentives may include extra pay, improved benefits, or offering structured career plans.
This strategy requires negotiation to reach agreement. The drawback is that such agreements can
be expensive and do not guarantee engagement with change.
5. Co-opting
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People become connected to the way that things have always been done. There are often strong
emotional connections to processes and procedures that employees may have been at least partly
responsible for developing. To bond with the old may require a Herculean effort.
One strategy is to co-opt those who may be most resistant to change into central roles in the
implementation of change initiatives. This can gain the support of would-be resistors relatively
cheaply, though it does come with a caveat – placing people who are deemed to be resistant to
change in such positions could give them a position from which to influence greater resistance
across a wider audience.
6. Coercion
Sometimes it is necessary to coerce people into accepting change. This is often the case where
people feel they cannot learn the new skills needed or if they feel that change is a temporary fad
that will be reversed.
Techniques for implementing change include wielding the threat of disciplinary action while
insisting that people fall into line with required behaviors and actions. If speed of change is
critical, coercion may be the only viable option.
A major drawback of this strategy is that it does not remove resistance to change, which may
continue to bubble under the surface and result in a destructive atmosphere at a later date
(particularly if the proposed transformation does not produce at least the outcomes promoted by
the initiator of change).

4.1.4 Factors influencing technology adoption

Everett M. Rogers (1931-2004) identified the five factors influencing the adoption of any
innovation, and ultimately its degree of success. When assessing the potential for an innovation,
whether it is a new product or service, benchmarking the benefits provided by the innovation
against the five factors will help identify potential barriers to adoption and areas for
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improvement.

Research findings have shown that the first three factors, the relative advantage, compatibility
and complexity consistently influence the level of innovation adoption. Those technologies that
score best on those criteria are likely to reach the highest saturation level among potential
adopters.
Relative advantage
An innovation will be adopted more widely when it is considered superior to the alternative
solution that it replaces. The relative advantage might be measured in economic terms (the new
technology is cheaper than the old, or as expensive but more powerful) but it could also be a
convenience factor (receiving email is faster than writing letters and going to the post) or a status
aspect (“I need this product in order to look cool”). Relative advantage is important because a
new product is rarely without alternative, whether it is using digital cameras rather than analogue
ones, or watching video on demand rather than renting DVDs from a DVD shop. However,
relative advantage is not enough to guarantee fast diffusion speed, and the market abounds of
superior technologies that never made it to success, from the Dvorak keyboard to the Betamax or
Video 2000 video recorder.
Compatibility
Compatibility measures whether the innovation is consistent with the set of norms, values and
other cultural aspects or religious beliefs that predominate in the population. This also includes
naming issues: a product wearing the wrong name or the wrong colours in a society that
associate special meanings to these attributes has a low level of compatibility.
Complexity
Complexity is the level to which an innovation is seen as being complex to use in practice,
maybe because its user interface is not intuitive, or it requires too many successive steps to be
applied, like swallowing pills every hour ten times a day. This is an area where well-thought-out
solutions bundling hardware and software like the iPod and the iTunes application can have a
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real competitive advantage: each component is easy to use on its own and the components have
been optimally designed to interact with each other.
Tribality
Tribality is the degree to which an innovation may be experimented with on a limited basis. It
lowers barriers to entry for customers, especially the late majority. Triability can help convince
those who are risk averse and would delay their usage of the technology because they are not
sure whether it will satisfy their requirements or be superior to the previous practice. For
instance, many telecom service providers provide new services for free in an initial launch phase,
for example unlimited mobile TV access, to encourage their subscribers to use the service.
Observability
Finally, innovations that have a lower degree of observability will spread more slowly than
others, because observable innovations advertise for themselves. These could be innovations
used in the home only rather than outside, or innovations that have been allocated more limited
shelf space that other products.
According to Rogers, “the five attributes of innovation have been found to explain about half of
the variance in innovations’ rate of adoption”. The other half is influenced by:
 the intensity of the promotion efforts, in particular with aggressive marketing campaigns
 the right timing and combination of mass-media and interpersonal channels
 whether the adoption decision is taken individually, collectively by consensus, or
authoritatively by the state or a company’s management, as collective decisions are
slower to diffuse, and authoritative ones faster.
4.1.5 Adoption Diffusion and Dissemination
Diffusion is the communication process through which an innovation travels or spreads
through certain channels from a person, an organization, or any unit of adoption to another
within a social system over time. An innovation can be an object, technology, behavior, practice,
program, idea, and/or meme perceived as new to potential adopters.
Adoption is the decision (i.e., acceptance or rejection) and the subsequent implementation,
discontinuance, and/or modification by an individual or an organization. Therefore, adoption is
an individual or organizational process that leads to diffusion as a systemic process. Studies of
adoption tend to focus on the perspective of the adopters while studies of diffusion usually
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examine the perspectives of the market and society as a whole. Although diffusion and adoption
are commonly used together in the literature, the two are different levels of processes.
In addition to adoption, another term that is commonly used in conjunction with diffusion
is dissemination. Dissemination is the active push and promotion of an innovation toward
members of a social system. Diffusion is the organic spread of an innovation from one member
to another. A key distinction is that a dissemination effort often employs mass communication
strategies, while diffusion usually takes place through interpersonal communication. An analogy
for diffusion is the ripple effect after a pebble is thrown into a pond. Another visual image for
diffusion is the spreading of a drop of colored dye as it slowly disperses and eventually changes
the color of water in a beaker. However, some studies use diffusion as the umbrella term to
include both the active push and the organic spread of an innovation.

4.2. Understanding Resistance

In their work on resistance to change theory, John P. Kotter and Leonard A. Schlesinger
concluded that there are four common situations in which people’s resistance to change
germinates and grows:
1. Self-interest
2. Misunderstanding and lack of trust
3. Different evaluations
4. Low tolerance for change
Using our example of change, we can see how different types of resistance to change develop.
1. Self-interest
When someone believes they may lose something valuable as a result of the change, they
are likely to resist the change. People focus on their own self-interests (every stakeholder has
their own agenda) and not the best interests of the organization. Eventually this develops into
group resistance to change.
In our example, the worker is losing his direct relationship with ‘the boss’. He feels that his voice
is no longer heard, because of the new reporting line put in place. The worker will come up with
reasons why the new way of doing things will not work, and small errors and any downtime will
be blamed on the change.
2. Misunderstanding and lack of trust
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A lack of understanding about the implications of the change is also a driver of resistance to
change. An existing lack of trust between the manager initiating change and the workers
expected to implement it exacerbates this misunderstanding.
For example, if the auto worker believes that the new technology he is being asked to use will
reduce the time it takes to do the job, he may believe that his job is threatened – or that he will
lose overtime and experience a cut in earnings – no matter what the manager says. Trust is
crucial when making organizational change.
3. Different evaluations
This situation arises when people assess the impacts of transformation differently to their
managers or others who initiate the change.
In our example, it may be that the manager initiating the change has access to information that
the workers don’t have. The reorganization of reporting lines may be needed because of the need
for closer collaboration with the engineering department. However, the workers on the shop floor
view the change as another (unnecessary) layer of management and are suspicious that the
supervisor’s real role is to micromanage the department as it prepares for redundancies.
4. Low tolerance for change
Some people fear change because they worry that they cannot develop the skills and abilities
needed. This is particularly true of projects that require rapid change – the bigger and faster the
change, the harder it is for people to come to terms with.

4.2.1 Identifying Resistance

Resistance to change is the act of opposing or struggling with modifications or transformations

that alter the status quo. This resistance can manifest itself in one employee, or in the workplace
as a whole. Learn what causes resistance to change and how you can reduce it.

What Is Resistance to Change?

Resistance to change is the unwillingness to adapt to altered circumstances. It can be covert or

overt, organized, or individual. Employees may realize they don't like or want a change and
resist publicly, and that can be very disruptive.
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Employees can also feel uncomfortable with the changes introduced and resist, sometimes
unknowingly, through their actions, their language, and in the stories and conversations, they
share in the workplace.

In a worst-case scenario, employees can be forceful in their refusal to adopt any changes,
bringing confrontation and conflict to your organization.1

How Resistance to Change Works

Resistance to change is evident in actions such as:

 Criticism
 Nitpicking
 Snide comments or sarcastic remarks
 Missed meetings
 Failed commitments
 Endless arguments
 Sabotage

When employees are poorly introduced to changes that affect how they work, especially
when they don't see the need for the changes, they may be resistant. They may also experience
resistance when they haven't been involved in the decision-making process.

Resistance to change can intensify if employees feel they have been involved in a series of
changes that have had insufficient support to gain the anticipated results. They also become
weary when changes happen too frequently, becoming a flavor-of-the-month instead of strategic
action.

Whatever causes the resistance to change can be a big threat to the success of your business and
can affect the speed at which your organization adopts an innovation. It affects the feelings and
opinions of employees at all stages of the adoption process. Employee resistance also affects
productivity, quality, interpersonal communication, employee commitment to contribute, and the
relationships in your workplace.
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Spotting Resistance

Note whether employees are missing meetings related to the change. Late assignments, forgotten
commitments, and absenteeism can all be signs of resistance to change.

Some employees will publicly challenge the change, its purpose, or how it is unfolding. An
employee who has a higher position and more seniority may be more resolute in their resistance.
Less well-positioned employees may resist collectively in ways such as a work slowdown,
staying home from work, deliberately misunderstanding directions, and, in rarer cases,
organizing to bring in a labor union.

Employees also resist change by failing to take action to move in the new direction, quietly
going about their familiar and accustomed business in the same ways as always, withdrawing
their interest and attention, and failing to add to conversations, discussions, and requests for
input.

4.2.2 Tactics to overcome resistance to change

Having identified the causes (or potential causes) of resistance to change in your workplace and
the strategic approaches that your organization should take to overcome this resistance, the next
step is to consider specific tactics and techniques for reducing resistance to change that your
organization and its managers can utilize to eventually eliminate that resistance.
Leadership is an organizational imperative when managing change, and leaders who inspire a
cultural shift in their staff have the greatest success in managing resistance to change in an
organization.
In a 2013 PwC survey, nearly two-thirds of staff surveyed felt that a top leader is in charge of
change management, and almost half felt that top leaders should be in charge of cultural change.
The good news here is that the same number of people felt that cultural change is also their
responsibility.
The bad news is that only 14% saw any responsibility for change management falling on their
shoulders. The harsh reality is that effective change is determined by having in place a corporate
culture conducive to continual transformation. It is here that inspirational leadership in flat
hierarchical structures is, perhaps, at its most potent.
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Here are seven techniques for reducing resistance to change in the workplace and helping to
embed engagement in your change process.

1. Structure the team to maximize its potential

After communicating the change initiative, consider the strengths and weaknesses of each team
member.
In one-to-one sessions, establish how the team member is best suited to aiding with the change
initiative, and consider ways in which it may help the individual improve personal weaknesses
while simultaneously taking advantage of their strengths.
Give team members appropriate roles and responsibilities that use skills to their best advantage,
while also providing the potential for personal and team development. Such a personal
collaboration within the team effort will help engage each team member in the change effort.

2. Set challenging, achievable and engaging targets

Be clear in guidance about goals and targets. Break change projects into smaller milestones, and
celebrate achievements. Goals should be progressive and in line with values and beliefs.
Don’t limit the creation of milestones and measurement of goal achievement to the overall effort.
While these are important team milestones that will help to motivate the team to continue with
maximum effort, it is also important that you consider individual progress. Seek ways to anchor
personal development to the creation and continuation of team goals along the change journey.

3. Resolve conflicts quickly and effectively

Utilize the seven methods of care-fronting to regulate and control communicative breakdowns.
Encourage openness and honesty and engender an environment of mutual trust and respect.
It is imperative to engender a good team spirit, so you should consider ways in which you can do
so. During periods of change, tensions may run high and personal anxieties will be heightened.
Team meetings and team bonding sessions will help your people to understand and appreciate
their colleagues more easily, especially if you ensure transparency of communication and a
systematic approach to problem solving that encourages frank exchange of view to reach a
collective and collaborative partnership.
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4. Show passion
Communicate passionately and be an example of belief in the future vision. When other people
see leaders’ behaviors emulating those required by change, they more quickly come into line
with the new behaviors and become change advocates themselves.
‘Where leaders tread, others follow’ is an apt edict for executives to live by. Only by being the
change can you expect others to onboard the new values and behaviors expected.
5. Be persuasive
Engage employees in change by being an energized leader. Focus on opportunities, and persuade
rather than assert authority. Share experiences as you persuade change through stories that focus
on positive change.
Train your storytelling brain to discover ways to explain culture, brand and the future vision with
similes that help employees relate to organizational motives and goals.
6. Empower innovation and creativity
Give opportunities for feedback and remain flexible as you alter course toward your change
goals. Encourage people to be creative, to discover solutions to unfolding problems, and to
become part of the change process.
Remove the fear of taking risks by framing failure as an experience from which to learn, and a
necessary step on the path to success. Help people to be accountable for their own actions, while
also encouraging collaboration across silos. This will aid pollination of innovative ideas in an
environment in which people develop greater knowledge and expand their professional capacity
to think more creatively.
7. Remain positive and supportive
People find change unsettling, even though change is a constant in personal lives as well as
professional environments. They will need the support of a positive leader who inspires free
thought, honest communication and creativity, as personal and team development is encouraged.
Employees expect leaders to manage change. Inspirational leaders create a culture where change
becomes the remit of all.
4.2.4 Tips for Ensuring the Effectiveness of User Awareness Programme
As organizations implement their communication plan, the following tips will helpensure their
success in overcoming user resistance to new technologies andprocesses.
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Obtain the Sponsorship of Business Executives and Managers

When organizations implement a communication plan, they often createcommunications -
newsletters, blogs, emails - to explain the changes, which isgood but none of these will be effective
without the sponsorship of businessmanagement and executives. Sponsors are essential to emphasize
and relay thevalue of the solution and the gains it will bring to the organization.Management must
therefore be committed to the change and sponsor thecommunications to ensure their effectiveness.
To demonstrate sponsorship,management should pre-announce the project, explain why they want to
implement it, and explain how the new technology will support their goals.
Ensure that People Understand the Change and its Consequences onMultiple Levels
Employees need to understand both the strategic rationale for the change andoperational details
about how it will impact their job. Strategic communication from top management
shouldpromote thechange, through the overall program vision and goals, the explanation of
itsneed, and what it means to the organization as well as to its internal andexternal stakeholders.
Tactical communications from change actors (Project team) targetingstakeholders and
sponsors responsible for implementing the change mightdetail the key messages (to support them
in their role of relay ofcommunication) on the new technology and processes impacts, the
projectstatus - particularly successes and achievements.
Operational communication from direct manager focus on how the new technology and
processes will impact the daily practices, the proposedsupport (skills development) all along the
project.
Take Responsibility for the Communication with Users
To ensure the program’s credibility, management, sponsors and stakeholders at thecompany
should take responsibility for signing and sending outcommunications. The software vendor can
support the change and help theorganization to develop the strategy and the technical message
about thesolution and creating communication artefacts.Communicate what isn’t Changing in
Addition to what is ChangingWhen creating an awareness program, it’s easy to forget about
what isn’tchanging. Yet people are often relieved when some things stay the same.Making sure
that you communicate both changes and what’s staying the same canmake employees more
confident with the changes.
4.3 Approaches for Adoption of Technology
Technology adoption strategies
Familiarize yourself with the technology so you can see firsthand how it has applied in other
organizations and industries, for example - technology adoption in healthcare. This way, you'll
approach the technology from a perspective that considers your specific needs.
Generate an internal champion to lead the initiative for the successful adoption of new
technologies within your company.
Once you have found someone who will support this project, provide them with all the needed
resources they need to build momentum for successful adoption of new technologies within your
organization such as resources and training opportunities.
Advantages and Importance of Technology Adoption
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Improved Product adoption improves your ROI on your technology investment by

ROI ensuring your technology is utilized to its maximum potential. If you pay
for technology and then don't use it, you'll waste your entire investment.
Even if some parts of the technology or small groups inside the
organization use the technology, you could likely still see a negative return
on investment. Successful company-wide adoption is the key to getting the
largest return.

Increased Technology adoption also makes your organization more productive.

Productivity Technology should help your users get more done in less time. Successfully
adopting technology should lead to an increase in the output of your
workforce. If you do not see increases in productivity, it could signal that
your processes need updating or users are struggling with an aspect of the
new technology.

More efficient Technology adoption should also increase your efficiency. You should be
processes able to respond to issues and customers more quickly. Process completion
times should decrease.

4.4Technology Adoption Challenges

4.4.1 Employee Resistance
Most often, employees are comfortable with the status quo and bringing in new technologies can
cause resistance. This resistance could be due to a fear of the unknown or a change in status quo.
They may dread the process of learning new systems. Whatever the reason is, leaders need to
understand the causes of resistance early on, before it hinders adoption.
Communicate the benefits of the new tech to the employee and help them understand the reason
behind the change.
4.4.2 Insufficient Onboarding and Training
Poor training leaves employees confused about the new software and drastically reduces your
software adoption rate. Employees forget more than 70% of what they learn within a day of
training.
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Due to this, traditional classroom-style training methods are proving to be ineffective in the long
run. It removes the employees from their work environment and separates them from the tools
that they use for their work. It also takes up their time that could otherwise be spent being
productive.
When onboarding employees to new systems, use a digital adoption platform that guides users
step by step through the new processes and workflows.
4.4.3 Measuring the Rate of Adoption

What is not measured cannot succeed. Figuring out how to track and measure the success of your
digital adoption initiatives is one of the biggest challenges to adoption. Simply viewing when a
user has logged into a system is not an accurate measure of the adoption rate of your system.
How do you know if your employees are using the software for its intended purposes? You need
to find out which features of the software are used by employees and if they are completing
processes as intended. As a start, you can track where users are dropping off, what processes
have a high drop-off rate, the completion rate of processes, etc.

4.4.4 Poor Leadership and Communication

Leaders have a responsibility to ensure proper technology adoption at the organization. They
must clearly understand the changes required in their team's daily work and guide each employee
to embrace the new changes. Without proper communication from leaders, team members will
be confused and demotivated, hindering software adoption rates.

Leaders have to deal with employee resistance, change communication, and be an advocate for
the new technology at the organization. Without effective top-down and bottom-up
communication channels and strategies, there will be no transparency, leading to assumptions
and misunderstandings, and thus poorer adoption.
4.5 Steps to successful technology adoption
Companies can find ways to accelerate employees' technology adoption curve and implement it
effectively. The following are some steps that can ensure successful technology adoption,
4.5.1 Proceed one step at a time
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In a technologically backward environment, it's not uncommon to see construction organizations

try to digitize every operation at once or purchase a slew of equipment that will go unused. The
key to successful technology adoption is to take small steps at a time.
If it's new software, the implementation should be done gradually, module by module, once the
technology has been chosen. By breaking technology adoption down into steps, everyone may go
at their own pace and integrate technology into their daily lives.
A pilot project can also be an excellent way to get started with a new product because it allows
you to pick the people and procedures that will be engaged in the initial deployment. The
findings can then be utilized to establish the best course of action for rolling out the technology
across the organization.
4.5.2 Develop a training approach early
One of the major reasons for the failure of technology adoption is the lack of sufficient and
customized training. Introducing new technology is not easy. It is important to monitor whether
the adoption needs to be in stages or not. Also, your employees should be prepared and trained to
manage the new technology.
For successful digital adoption, structure and awareness are important. That is why it is
important to create an effective employee training structure within an organization to help in
training, decision making, managing risks, and issues, etc.

4.5.3 Coordination of technology and strategy

Adoption of new technology necessitates early and frequent communication with your
employees. You must first identify all of your new hires before you can communicate with them.
Each person's present work methods, or processes, should be documented. It is necessary to
identify and describe the effects that new technology will have on them. It's also important to
disclose how your company plans to mitigate any negative consequences for employees.
Remember that cultural change is also critical when adopting new technologies into an
organization or facility – showcase success stories where applicable and encourage others to use
the new.
There's nothing like acknowledging your employees' efforts to boost motivation and dedication.
Celebrating team and individual accomplishments helps to create a favorable attitude about new
technology, which encourages adoption.
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4.5.4 Highlight progress and celebrate victories

Change is unsettling for the majority of individuals. From the beginning to the end of the
technological implementation, you must constantly encourage and positively reinforce your
employees.
HR professionals recommend preparing the implementation of new features so that employees
can immediately experience modest wins to facilitate the adoption of any new technology. To do
this, the organization could create measurable, specific, and attainable adoption goals.
Remember that cultural change is also critical when adopting new technologies into an
organization or facility – showcase success stories where applicable and encourage others to use
the new.
4.6 How to Drive Technology Adoption With A Digital Adoption Platform
If you want to improve your technology adoption rates, consider using a product adoption or
digital adoption platform. This growing category of SaaS providers focuses on helping users
navigate and adopt web-based applications.
The features of each digital adoption solution can vary, but most of them include:
· On-screen guidance,
· Integrated support or help content, and
· Digital Process Automation.
A product adoption tool shows users where to click and what to do next. They can help users
complete their work instead of just reading how they should do their job.

Accelerated By making new technology easier to use, Digital Adoption Solutions can
Adoption help you decrease the amount of time it takes to adopt new technology.
Apty clients report they can fully adopt new software 2-3 times faster
using Apty’s adoption tools.

Decreased When adopting new technology, training and support costs can quickly
Training and spiral out of control. Digital Adoption Solutions decrease training and
Support Costs support costs by providing on-screen guidance. Users are less likely to
open a support ticket when they can use the adoption tool to show them
where to click and what to do. Some Apty clients report up to a 70%
decrease in support tickets after implementing Apty’s guided
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workflows.

Improved User User onboarding is another area when companies struggle when adopting
Onboarding new technology. Not only do you have to onboarding your entire
userbase during implementation you also have to onboard new hires as
they join. Digital Adoption Solutions make onboarding easier. On-screen
guidance allows users to be productive on their first day - even if they've
never used the technology before.

Usage Analysis You can’t improve your product adoption if you don’t know what the
problem is. The analytical tools in a digital adoption solution like Apty
can help you identify where users are struggling so you can deploy extra
help to overcome the challenges.

4.6.1 Advantages of a Digital Adoption Solution

Digital Adoption Platforms offer several benefits when implementing new technology. They can
help you realize the benefits of your new technology sooner

4.6.2 Apty Adoption Platform

If you have any challenges on how to increase adoption of technology and how to drive
technology adoption, consider using Apty’s advanced Digital Adoption solution. Apty helps
companies adopt new technology faster and makes technology easier for your users. Adoption
challenges Apty can solve include:
· User onboarding
· Training
· Usage Analysis
· Cost Management
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Summary
4.2 Importance of technology adoption in agriculture
Until recently, the choice of technologies available to farmers was largely determined by
the need to increase production, profits and productivity. The main constraints were the
availability of capital, knowledge of how to use the technology and market risks — risks that in
many countries policies were shielded by government policies. In the past, “good policy
practices” was therefore rather straightforward, relating primarily to increasing output and the
aim of agricultural policies was to increase productivity in agriculture. Agricultural research and
extension services could concentrate, for example, on improving the productivity of small farms.
Now agriculture has to fulfil diverse objectives: it needs to be internationally competitive,
produce agricultural products of high quality while meeting sustainability goals. In order to
remain competitive, agricultural producers need rapid access to emerging technologies. Farmers
are faced with many more constraints — and also more opportunities. In addition to being
profitable, they need to meet environmental standards and regulations, as well as deal with direct
and indirect consumer and lobby group pressures. They may also be flooded with information
from various government and industry sources, that make choosing appropriate technologies
more difficult. Farmers also need to change their production and management practices in
response to agricultural policies that include environmental conditions and I am confident that
farmers have the capacity to do so.
Uncertainty may increase even more in the future. There may also be uncertainty related
to the future policy environment, especially with respect to support, trade and pressures from the
agro-food sector. Adopting technologies by farmers is an investment. It takes time, however, for
the rewards to flow and farmers may be reluctant to invest in an uncertain climate with more
constraints, where some of the benefits are for society. Should it be the farmer or society that
pays?
Technological change has been the basis for increasing agricultural productivity and
promoting agricultural development. Research affects the productivity of farming systems by
generating new technologies which, if appropriate to farmers’ circumstances, will be rapidly
adopted. Historically, researchers and extension workers have been primarily responsible for
identifying and injecting economic and environmental factors into the process of developing and
introducing an agricultural innovation. This is typically characterised as a top-down process,
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whereby researchers develop the innovation, extension workers promote its use, and farmers
either adopt or reject the innovation based on the features important to them

Factors affecting the adoption of technologies:

Diffusion is the process by which a new idea, practice or technology spreads in a given
population. The characteristics of technologies, such as relative advantage, complexity,
divisibility, observability and compatibility affect their diffusion.

Farmers will be encouraged to adopt appropriate technologies for sustainable farming systems if
the dissemination of information is efficient. There is a paradox here one must bear in mind,
however. On the one hand, experience in other sectors undergoing the transition to less polluting
or more resource-conserving practices shows that it is inefficient for governments to be too
prescriptive. Those environmental policies that set performance standards, as opposed to forcing
the use of particular technologies, tend to encourage innovation of a sort that lowers the cost of
achieving a given result. Yet when a really important, useful technology comes along there may
be an interest in encouraging its quick adoption. At that point, it is too late to start educating the
educators, the extension agents and others responsible for explaining to farmers the merits of the
technology.

It is thus important to facilitate the dissemination of improved farming system technology to

farm households through farmer-participatory methods and to strengthen existing resource-
planning capability and improve the research and extension capability.

Assimilation and adoption of new and available technology at the farm level is a function of
science, economics and human behaviour. One or more of the physical sciences or biology
serves as the foundation for technology development, and economics usually serves as a strong
motivator for adoption. The psycho-social and human behavioural aspects of technology
adoption are less tangible, but clearly influence the potential adoption of any technology to
change.

Technology and change will most likely be assimilated and implemented when: the benefits of
implementation will be quickly realised (within one to two years), the tools for implementation
are readily available and accessible in the local marketplace, the risk of the implementation are
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small and the change or new technology can be comfortably integrated into other basic on-going
aspects of daily life.

Several “barriers” have hindered the assimilation of new agricultural technology through
extension:

− A perceived fundamental inability to demonstrate a linkage between profitable technology

adoption and sustainable production at the farm level.

− The limited movement away from a discipline-based or uni-dimensional approach to a broader

systems may have reduced the ability to evaluate the economic and environmental components
of technology uptake.

− The instruction and demonstration of new technology within the controlled setting of a
university research farm may not encourage farmers to adopt the technology for their own farms,
which have distinct and different resources.

− The failure to recognise and address the psychological component of technology adoption as
part of the educational process, because generating knowledge is not always synonymous with
diffusing and adopting knowledge.

The adoption process involves an interrelated series of personal, cultural, social and institutional
factors, including the five stages of: awareness, further information and knowledge, evaluation,
trial, and adoption. Characteristics of a technology, such as simplicity, visibility of results,
usefulness towards meeting an existing need and low capital investment promote its eventual
adoption and should be considered when transferring any technology.

Profitability is a major concern to farmers. But given the vast array of available technologies, the
uncertainty of their effects and the policy and market context, it is difficult to decide where and
in what to invest. The opportunity to witness an investment in profitable technology by a fellow
producer with similar facilities and resources often helps in decision making and can guide the
changes ultimately adopted.

Surveys show that in most OECD countries farmers are becoming better-educated and are
continuing their education and training throughout their careers. This is good news, since better
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educated and informed farmers have always been at the forefront of technology adopters.
Traditionally, publicly funded extension services have played a leading role in dispensing
information and advice. However, in many countries extension services have been privatised
since the mid-1980s. Privatisation has brought about a number of changes. The influence of
farmers’ representatives on the extension service is increasing. In the Netherlands, for example,
provincial offices for agricultural affairs have been created, which effectively separates
Extension advice on farm management from the provision of information on government policy
by provincial offices.
SUMMARY
 Diffusion can be seen as the cumulative or aggregate result of a series of individual
calculations that weigh the supplemental benefits of adopting a new technology against
the costs of change, often in an environment characterized by uncertainty as to the future
evolution of the technology and its benefits and by limited information about both the
benefits and costs and even about the very existence of the technology.
 The obvious determinants of new technology adoption are the benefits received by the
user and the costs of adoption. In many cases these benefits are simply the difference in
profits when a firm shifts from an older technology to a newer one.
 A stable and secure customer base is an important factor for technology adoption.
 Due to the uncertain nature of demand, the firms cannot be sure about how long it will
take them to recover the cost of adopting new technology or even if they will or not.
 If a new technology is imperfect in its early stage, then the subsequent rate of
improvement is an important determinant of adoption of the technology.
 The regulatory environment and governmental institutions generally have a more
powerful effect on technology adoption due to the ability of a government to “sponsor” a
technology with network effects.
 Technology is meant to improve productivity and efficiency. Yet new implementations
rarely achieve their objectives without buy-in from users.
 One of the biggest challenges companies face in making technology and process changes
is user resistance to change.
 Individuals who are risk takers or otherwise innovative will adopt an innovation earlier
than their counterparts who are averse to risky propositions.
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 Diffusion takes place over time with innovations going through a slow, gradual growth
period, followed by dramatic and rapid growth, and then a gradual stabilization and
finally a decline.
Keywords
 Computer Numeric Control (CNC): Computer numeric control is one in which the
functions and motions of a machine tool are controlled by means of a prepared
programme containing coded alphanumeric data.
 Diffusion: The process by which something new spreads throughout the population.
 Innovativeness: It refers to renewing, changing or creating more effective processes,
products or ways of doing things.
 Return on Investment (ROI): A performance measure used to evaluate the efficiency of
an investment or to compare the efficiency of a number of different investments.
 Technology Adoption: The choice to acquire and use a new invention or innovation.

Self-Assessment Questions
Short Answer Questions
1. What is diffusion?
2. Why is adoption of technology costly?
3. What are the factors for ensuring successful adoption of technology on the supply side?
4. Why does the government have a powerful effect on adoption of technology?
5. What are the categories of customers based on demographic and psychological
characteristics?
6 What is the biggest challenge an organization faces when making technological and
process changes?
7. What are the factors for end user resistance?
8. What do organizations do when implementing a communication plan?
9. What are the different types of communication an employee needs to be convinced of
going
ahead with change?
10. List the different approaches that can be utilized for adoption of technology.
11. What is innovative decision process theory?
Long Answer Questions
1. What is adoption of technology?
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2. What are the demand determinants and supply behaviour for the same?
3. How can resistance to change be overcome?
4. Write how user resistance to change impedes software adoption.
5. How does communication play an important role in technology implementation?
6. What are the ways in which effectiveness of user awareness programme be ensured?
7. What are the different approaches that can be utilized for adoption of technolog?

Further Readings
Ali Hussein Saleh Zolait (2013)Technology Diffusion and AdoptionGlobal Complexity, Global
Innovation, IGI Global
David Preece (2018) Managing the Adoption of New Technology, Taylor & Francis
Graynor, Gerard H., (2007), Digital, Handbook of TechnologyManagement, McGraw Hill
Khalil M., Tarek., (2009), Management of Technology, McGrawHill
Khurana, Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009),Management of Technology, HPH
Narayanan V.K., (2009), Managing Technology and Innovation forCompetitive
Advantage,Pearson Publishers
Stephen J Andriole, Thomas Cox, Kaung M. Khin (2017)The Innovator’s ImperativeRapid
Technology Adoption for Digital Transformation, CRC Press
Sushil K. Sharma · 2013Adoption of Virtual Technologies for Business, Educational,
andGovernmental Advancements, Information Science Reference
Szakonyl, Robert, (2008), Handbook of Technology Management,Viva Books Private Limited
White, (2007), The Management of Technology & Innovation,Thomson Publications
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Lesson 5 TECHNOLOGY FORECASTING

CONTENTS
5.1 Technology Forecasting - An Introduction
5.2 THE ROLE OF TECHNOLOGY:
5.3 THE TECHNOLOGIST'S NEED TO FORECAST
5.3.1 Need of Technology Forecasting
5.4 Methodologies
5.4.1 Qualitative and Quantitative Research
5.5 Delphi
5.5.1 Forecasting Delphi
5.5.2 Decision-Analysis Delphi
5.5.3 Advantages
5.5.4 Disadvantages
5.5.5 Acceptance
5.6 Trend Analysis
5.6.1 Fitting a Trend: Least-Squares
5.6.2 Trends in Random Data
5.6.3 Data as Trend Plus Noise
5.6.4 Noisy Time Series
5.6.5 Goodness of Fit (R-squared) and Trend
5.6.6 Real Data is Auto-correlated
5.7 Analogy
5.7.1 Applications and Types of Analogy
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5.8 Soft System Methodology

5.8.1 What is SSM?
5.8.2 The Origin of Soft Systems Methodology (SSM)
5.8.3 Analyses and Techniques
5.9 Mathematical Models
5.9.1 Classifying Mathematical Models
5.9.2 Complexity
5.9.3 Model Evaluation
5.10 Simulation
5.10.1 Physical and Interactive Simulation
5.10.2 Computer Simulation
5.10.3 Simulation in Education and Training
5.11 System Dynamics
5.11.1 Elements of System Dynamics
5.12 S-curve
5.12.1 S-curve Describing the Growth of Entities
5.12.2 What causes inflection points?

LEARNING OBJECTIVES
After studying this lesson, you should be able to:
Understand technology forecasting
 Learn the need and methods in technology forecasting
 Comprehend the techniques and concepts in Trend Analysis, Analogy, Delphi, Soft
System Methodology, Mathematical Models, Simulation, System Dynamic and S-curve
LEARNING OUTCOMES
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 define technology forecasting and explain need of technology forecasting
 explain qualitative and quantitative research
 recall decision-analysis Delphi and explain trend analysis
 analyzing goodness of fit (R-squared) and trend
 determine applications and types of analogy
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 identifying soft system methodology

 explain classifying mathematical models
 simulation in education and training
 determine elements of system dynamics
 s-curve describing the growth of entities
Overview
In the previous lesson, you learnt the organization redesign, organizational reengineering and the
different financial considerations which affect the planning for technology.
In this lesson we will learn about the forecasting of technology along with its needs and different
methods used which aid in the technology forecasts.
So we advise you to study carefully and learn the concepts described in this lesson with your full
and thorough concentration.
5.1 Technology Forecasting - An Introduction

Why are forecasts needed? The reason is simple. We live in a rapidly changing world,
changes which affect both the technologies we use and the purposes they serve. When a technical
decision is taken today, it is essential to ensure that it will lead to a result which is appropriate to
the circumstances, sometime in the future, when it results reach the light of day. Since lead times
are involved, which in many industries are growing longer, it is necessary to take a view of the
future. The future is not a distant point in time. It is a steady evolution punctuated by occasional
discontinuities. Hence, the situation in five years’ time will be different from that in ten years. It
is not sufficient to take a view of what will happen sometime in the future; it must be associated
with the time when it will occur. What is needed is the identification of the path into the future.
The aim of forecasting must be to relate a future performance level with the date when it is likely
to happen. It introduces the time dimension into technical decision making. Technologists take a
view of the future whenever they take a decision , consciously or unconsciously. Sometimes the
intuitive process leads to good decisions, sometimes not. The quality of the decision is attributed
to the judgement of the person taking it. Judgement forms an important input to any forecasting
activity, but it is not sufficient in itself. Forecasting forces the user to examine explicitly all the
changes impinging on the decision methodically. It ensures that data are collected systematically.
Forecasting is not a panacea. There are too many unknowns surrounding the future for us to ever
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hope to forecast it with certainty. The forecasts will inevitably contain errors, but this cannot be
avoided. The decisions must be taken in the present using the best information available at the
time, but it behaves us to use the information in the most effective way. That is objective of
forecasting, for although it cannot eliminate uncertainty, it can assist in reducing it, thereby a
better view of the future and its evolution are obtained, leading to better decisions.

Forecasting, thus, can be considered as an important input to the process of planning

future developments. Using forecasting techniques, governmental and industrial organizations
have for many years made good estimates of various social and economic parameters such as
growth of future labor force, employment levels, population size, demographic distribution, etc.
These forecasts were used as inputs to many decision-making processes. However, forecasting
the future of technology was not practiced. This was due, in part, to the lack of techniques for
forecasting changes in technology, and the belief that these changes are inherently unpredictable.
Methods for forecasting social and economic parameter s depend on historical time-series data,
and are not suitable for predicting changes and breakthroughs in the technology. For the case of
technology forecasting, historical data does not exist and fore - casting techniques must be based
on human judgment and the use of quantitative data obtained from experts' opinions and
information about special events.

5.2 THE ROLE OF TECHNOLOGY: Technology can be defined as the application of scientific
knowledge for the satisfaction of human needs. The role of the individual technologist is to
ensure that his expertise makes its maximum contribution to the organisation that employs him,
but that organisation itself only prospers by satisfying the market that it serves. Thus, any
consideration of the corporate role of technology must focus on the needs of both the
organisation and the market. Neither the organisation nor the customer is primarily concerned
with the technology. The elegance of a technological solution is of little concern to them. They
are interested in the benefits they obtain and the cost of acquiring them. The technology is a
means, not an end in itself. Many technologists fail to understand this fully. It is, however, of
fundamental importance in any consideration of the future , for if it is not possible to identify
why a particular technological outcome is desirable, then it is unlikely to eventuate . However
feasible an envisaged technological advance may appear, there is little likelihood of it occurring
in the absence of a need for it. Thus, technology is market driven and any forecasting activity
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must be focussed on the market. Forecasting by technologists cannot be divorced from a

consideration of market, social, economic, political as well as technological factors.

5.3 THE TECHNOLOGIST'S NEED TO FORECAST Within our society technologists make a
vital contribution to corporate success. The role of technology is to add new dimensions to
human capability by enabling us to accomplish tasks or satisfy needs which were not possible in
the past. Thus, we live in a continuum of progress starting in the past and stretching through the
present into the future. Decisions and the Future: The two determinants of the magnitude of
change : 1. The decision lead time 2. The rate of environmental change

Technological Forecasting deals with the prediction of the future of useful machines, procedures,
or techniques. Bright (1) defines Technology forecasting as "systems of logical analysis that lead
to common quantitative conclusions about technological attributes, and parameters, as well as
technical- economic attributes. Such forecasts differ from opinion in that they rest upon an
explicit set of quantitative relationships and stated assumptions, and they are produced by a logic
that yields relatively consistent results." The techniques of TF are broadly classified as
exploratory, normative, or dynamic. Exploratory techniques are used to forecast future
technological capabilities based on studies of the past and the present state of the art. They
involve monitoring technological changes, the use of trend extrapolation, and/or Delphi studies.
Trend extrapolation is used to forecast a technology parameter based on historical data and the
assumption that the factors contributing to the trend will remain constant.

Technology forecasting, in general, applies to all purposeful and systematic attempts to

anticipate and understand the potential direction, rate, characteristics, and effects of
technological change, especially invention, innovation, adoption, and use. One possible analogy
for technology forecasting is weather forecasting: Though imperfect, technology forecasting
enables better plans and decisions. A good forecast can help maximize gain and minimize loss
from future conditions. Additionally, technology forecasting is no more avoidable than is
weather forecasting. All people implicitly forecast the weather by their choice of whether to wear
a raincoat, carry an umbrella, and so on. Any individual, organization, or nation that can be
affected by technological change inevitably engages in forecasting technology with every
decision that allocates resources to particular purposes.
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5.3.1 Need of Technology Forecasting

It is very important to enhance the communication between the different communities,
namely government, politics, various industries and science and technology sectors and it is
possible only by providing a common platform which facilitates easy communication between
these bodies. Communications requires reliable information, an information system, access to
information, and a system for processing the data. More than this there should be a proper
network for communication without which the functionality of the governing bodies cannot be
achieved. With such a facility, technology forecasting helps in accurate prediction of the future
requirements of an organization or a society.
Technology forecasting largely helps an organizations to be well-informed about the
radical change likely to happen in the near future. It also gives the approximate timing of the
anticipated change.
It helps to maintain a stable relationship with the people (in the form of
customers/society) by keeping them informed/updated about the future technological innovations
and the kind of possible technological advancements that are likely to the organizatio strives to
go for. This keeps the employees(internal customers) informed about the technical upgradations
that are expected from them in the near future. It also boosts the self-confidence of an individual
or an enterprise to put forward their ideas before the authorities and the people.
When they cope up to the requirements, It promotes a feeling of empowerment among
the professionals and also helps to motivate the people to carry forward their works more
efficiently.
Technology forecasting gives an idea about the best time to release a particular product
into the market. It shows the various challenges and hurdles likely to be experienced during the
development of technology.
It helps to understand the parameters necessary to be implemented in an innovation so as
to convince the consumers about its importance and efficiency in their lives, both professional
and personal. It helps to plan strategies on how to improve the standards of living of people with
the technological advancements. It helps the nation to participate with the other countries in the
competitive market.

The need for technology forecasting is essential for the following reasons:
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 Future oriented R & D

 Prevention of import of obsolete technologies
 Anticipating technical innovation
 Shift towards appropriate technology
 Effective technology transfer
 Development of exportable technologies
 Leap across generations
 Rapidity of innovations
 Trade restrictions
 Avoid surprises
5.4 Methodologies
Forecasting can be broadly classified in to two types viz.qualitative forecasting methods and
quantitative methods. Qualitative method of forecasting are based on opinion, perception,
customer complaints and feedback of individual or a group while Quantitative methods are based
on certain mathematical procedure and algorithms of varying complexity.
Another basic categorization of forecasting as such is exploratory, and normative forecasting
methods. These methods include normative and exploratory techniques.
Normative Technique: It is necessary to construct a path from the present to the desired
future which can be justified through a logical argument. Forecasting can provide that logic. This
is the basis for the Normative Forecasting Technique.

Exploratory Technique: A forecasting technique relying on the extrapolation of past

trends into the future is termed as the Exploratory Technique. Extrapolation is mostly a
mechanistic process and does not in itself generate ideas. They come from human insight
stimulated by the act of forecasting.

5.4.1 Qualitative and Quantitative Research

Qualitative forecasting:
Both quantitative and qualitative forecasting can be used to make better business
decisions. The difference between the two depends on what kind of information the organization
is using and how they can use it to project or forecast future revenue. You will understand thekey
differences between quantitative and qualitative forecasting in the following passages:
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Qualitative forecasting is an estimation methodology that uses expert judgment, rather

than numerical analysis ie. Qualitative forecasting is based on individual or a groups perception
on something. It generally does not deal with numbers. This type of forecasting relies upon the
knowledge of highly experienced employees and consultants to provide insights into future
outcomes. Qualitative forecasting is most useful in situations where it is suspected that future
results will depart markedly from results in prior periods, and which therefore cannot be
predicted by quantitative means. For example, the historical trend in sales may indicate that sales
will increase again in the next year, which would normally be measured using trend line analysis;
however, an industry expert points out that there will be a materials shortage at a key supplier
that will force sales downward.
Another situation in which qualitative forecasting can be useful is in the assimilation of
large amounts of narrowly-focused local data to discern trends that a more quantitative analysis
might not find.
A simple example is an elderly person with farming knowledge can easily tell the number
of days a mango tree will take to bear ripened fruits from the day its stars flowering.
A more technical example is, a construction company needs to know what style of home to build
in a certain area, and relies on a local population expert to find out that the area in question is
being abandoned by younger families and replaced by an older, retirement-age group.
Consequently, the builder constructs smaller one-level homes with fewer bedrooms having in
mind the total number of occupants per home.
Another situation in which qualitative forecasting can provide value is when management
modifies historically-derived trends based on expert opinions. In this case, quantitative methods
are used to create a preliminary forecast, which is then adjusted with a qualitative review. In
theory, the result should be a forecast derived from the best of both methods.

Quantitative forecasting:
Running a business or working in sales requires a clear understanding of how the history
of the business can influence its future. Quantitative forecasting is one way that can help an
organization to effectively assess its business by using the collected data to make educated
inferences about its potential future opportunities. Whether the organization is keen in navigating
its own business or trying to forecast the future of a specific product, understanding quantitative
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forecasting methods and applying it can help visualize the future sales projections and make
better business decisions.
Quantitative forecasting is an objective, data-based process that businesses and
salespeople can use to make accurate predictions to guide future business decisions. Using
collected sales data from the past, quantitative forecasting provides individuals and businesses
with the ability to better understand how they are performing and what they can do to improve.
A business may use quantitative forecasting methods to track any patterns that appear
over time. By tracking their past and noting patterns that form using quantitative forecasting, a
salesperson might notice that profits dip in the winter and then surge in the spring, for example.
This can help them make better decisions about realigning their strategy for more consistent
results.
This also allows businesses to determine whether they should take certain risks and how
those risks may improve their business. Quantitative forecasting provides business owners with a
deeper look into their businesses to help them decide whether the decisions they want to make
are workable and worth the effort.
This forecasting method uses objective, empirical data that already exists to arrive at
educated predictions that can help guide business decisions. This means that you would use
concrete information to reach each conclusion.
5.5 Delphi
Delphi method is a process that is used for setting a framework in forecasting which is
used in multiple rounds of questionnaires sending expert panels and anonymous responses to
your questions which can be shared with other group experts.
Delphi method is an iterative process. So, This involves getting the board and a wide
range of comments and opinions of group experts for the current topic and project. This
method’s first step is questionnaires and then all questionnaires are commented on.
Then they compile and summarize all questionnaires. Go for the second round of
questionnaires when all questionnaires are commented then they move on to the third round. So
this is the reason the Delphi method is iterative.

5.5.1 Forecasting Delphi

History of Delhi Method
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Olaf Helmer and Norman Dalkey of Rand Corporation developed the process of the Delphi
method and the name “Oracle of Delphi”. Hence, the Delphi method allowed experts to work
and conduct the questionnaires in series and release or get feedback with other rounds.
Working of Delphi Method
Firstly, the group selects the group of experts on the topic which are selected by group
examination. Once participants are confirmed.
Then each member starts sending questionnaires to instruction and commenting on each topic
which is selected by a group of experts and shares your experience.
So, Questionnaires were returned to the facilitator and prepared copies current topic, and
compiled the comments. At last, the participant used the topic for current and further started
commenting.
Hence, In the end, start the commenting section, the Expert returned all questionnaires. And go
for another round based on the current results and Check for publishing and This method is
repeated many times.
Delphi method provides a wide range of steps that helps you to achieve success in your
project. The steps are the following.

Step I: Choose team or facilitators for your Project

Experts can include internal or external individuals in the company. They may consist of
the project team or any individual who is knowledgeable about a specific topic. The facilitator
needs to occupy a neutral position and be a person who has experience in data collection and
research.
Step II: Find Experts for your project
Identify experts. The requirement may vary from a single expert to a group of experts. It
depends on actual requirement of the issue at a time. For different projects, different experts may
be used.
Step III: Define the problems of your project
An organization needs to identify their issue at hand and its main goal for using the
Delphi technique. They should research and ascertain the importance of the thing they want to
forecast. In a project, you need to make a checklist that you find the problem and issue of the
project and then you need a summarized definition of all problems within your project.
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Step IV: First Round of Questionnaires

The facilitator issues the experts with their first questionnaire. The questions are usually
open-ended to allow the experts to brainstorm their ideas. The facilitator takes the questionnaires
from the experts and comes up with a summary report for the answers which he gives the
experts. The experts don’t reveal their identity, as this helps them share their opinions without
fear.
Step V: Second Round of Questionnaires
So, the Second Round is based on the result of the first questionnaires. Hence, In simple
words all relevant answers of first-round questionnaires. So, In those cases, the second round
starts again, writes questions, makes surveys, and gets the result moved to the third round.
Step6:Third Round of Questionnaires
An organization needs to set the questionnaire basing on the answers the experts gave in
round one. They should identify similarities in the responses and leave out solutions that were
out of context. The second questionnaire needs to follow answers that show consensus among
the experts.
The expert’s opinions and answers in this questionnaire may remain the same or have a
few changes. They may change their views after reading the summary report of the first
questionnaire. The facilitator then makes a summary report of the second questionnaire answers
and give the experts.
Step7: Analyze on your Finding
Delphi method is an iterative process, you can also move on to the fourth-fifth round. So,
according to research, most of the time third round is a decision-maker. Hence, Analyze all
answers and convert your findings into plans that decrease the risk in the future. and finding
Opportunities for your project topic and upgrade.
Delphi Method Examples
For instance, for Example of using the Delphi method, Suppose you are working as a
project manager in an organization like In IT business pharm, or in medical pharm, etc. Your
task is to make your organization’s product successful in the market.
And also want opinions on your product and finding consensus “How to make your
project successful in the market”.
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In that case, The Delphi method comes and helps you because it works like a forecasting
system. Now this time, you can invite 100-200 people who worked on your organization or
sometimes you invite outsiders to participate in answering the questionnaires.
Conduct the survey or questionnaires, ask the participants to rate the survey, and answer
the questions for achieving the goals. Followings options are must include in your
questionnaires.
These five questions in your survey allow people to rate between one to five rating
options. Show this result on the tabular form including participants’ names and write its end
percentage as shown on the given table.

Questionnaire Participants 1 Participants 2 Participants 3 Participants N %

Effective team development 2 5 3 1 10%

Product pricing 5 2 4 4 60%

Product size 5 5 5 5 100%

Feedbacks 4 3 3 3 70%

This tabular generates through “when participants filled the survey and you received feedback”.
Once you get the feedback then you repeat the step until you are not getting the result and
achieve the thought from the expert.
Example Summary:
In simple words to explain the previous example is that, conduct the questionnaires and survey
and invite 100+ participants to fill the survey. make the table according to feedback until each
participant filled the questionnaires. When the survey is completed then conduct 2nd survey then
again invite and ask to fill the survey and make a table of feedback. Once you get the feedback
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then you repeat the step until you are not getting the result and achieve the thought from the
expert.

5.5.2 Decision-Analysis Delphi

Delphi as it originally was introduced and practiced tended to deal with technical topics
and seek a consensus among homogeneous groups of experts. The Policy Delphi, on the other
hand, seeks to generate the strongest possible opposing views on the potential resolutions of a
major policy issue. In the author's view, a policy issue is one for which there are no experts, only
informed advocates and referees. An expert or analyst may contribute a quantifiable or analytical
estimation of some effect resulting from a particular resolution of a policy issue, but it is unlikely
that a clear-cut (to all concerned) resolution of a policy issue will result from such an analysis; in
that case, the issue would cease to be one of policy. In the face of the policy issue, systems
analysis, operations research, and other related disciplines can do no more than supply a factual
basis for advocacy. The expert becomes an advocate for effectiveness or efficiency and must
compete with the advocates for concerned interest groups within the society or organization
involved with the issue.
The Policy Delphi also rests on the premise that the decision maker is not interested in
having a group generate his decision; but rather, have an informed group present all the options
and supporting evidence for his consideration. The Policy Delphi is therefore a tool for the
analysis of policy issues and not a mechanism for making a decision. Generating a consensus is
not the prime objective, and the structure of the communication process as well as the choice of
the respondent group may be such as to make consensus on a particular resolution very unlikely.
In fact, in some cases the sponsor may even request a design which inhibits consensus
formulation.

5.5.3 Advantages
 Little room for error or bias
 Each expert contributes greatly to the study
 Having more people makes it easy to produce concrete results
 Its cheap and quick to initiate
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 Delphi does not require experts only. Even concerned citizens and stakeholders can be
selected at random
 Answers are tested again and again until a consensus is reached. This creates concrete
information
 Delphi is good for conducting estimates and future predictions
 Delphi technique is very easy to learn and implement
 No person can easily chnage the pinion of the group
 Provides controlled feedback which reduces noise among group members based on other
rankings
5.5.4 Disadvantages
 Delphi technique does not produce a right or wrong answer
 Technique is based on opinion hence consensus does not mean its the correct answer,
compared to other techniques
 Procedure is easy and it does not have a large known internal validity
 Results for Delphi are hard to know if there reliable or not
 Delphi technique is not a replacement for vigorous scientific report of original reports. Its
not a substitute for forms of evidence high above the pyramid.
 Delphi has no single methodology and has lack of methodology
 Delphi makes it hard to create survey tool
 Delphi technique is slow because it relies on expert response. Takes minimum of 2 weeks

5.5.5 Acceptance
Overall the track record of the Delphi method is mixed. There have been many
cases when the method produced poor results. Still, some authors attribute this to poor
application of the method and not to the weaknesses of the method itself. It must also be realized
that in areas such as science and technology forecasting the degree of uncertainty is so great that
exact and always correct predictions are impossible, so a high degree of error is to be expected.
Another particular weakness of the Delphi method is that future developments are not always
predicted correctly by consensus of experts. Firstly, the issue of ignorance is important. If
panelists are misinformed about a topic, the use of Delphi may add only confidence to their
ignorance. Secondly, sometimes unconventional thinking of amateur outsiders may be superior
to expert Thinking. One of the initial problems of the method was its inability to make complex
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forecasts with multiple factors. Potential future outcomes were usually considered as if they had
no effect on each other. Later on, several extensions to the Delphi method were developed to
address this problem, such as cross impact analysis that takes into consideration the possibility
that the occurrence of one event may change probabilities of other events covered in the survey.
Still the Delphi method can be used most successfully in forecasting single scalar indicators.
Despite these shortcomings, today the Delphi method is a widely accepted forecasting
tool and has been used successfully for thousands of studies in areas varying from technology
forecasting to drug abuse.

5.6 Trend Analysis

Trend analysis is a technique used in technical analysis that attempts to predict future stock price
movements based on recently observed trend data. Trend analysis uses historical data, such as
price movements and trade volume, to forecast the long-term direction of market sentiment.
Trend analysis tries to predict a trend, such as a bull market run, and ride that trend until data
suggests a trend reversal, such as a bull-to-bear market. Trend analysis is helpful because moving
with trends, and not against them, will lead to profit for an investor. It is based on the idea that
what has happened in the past gives traders an idea of what will happen in the future. There are
three main types of trends: short-, intermediate- and long-term.
A trend is a general direction the market is taking during a specified period of time. Trends can
be both upward and downward, relating to bullish and bearish markets, respectively. While there
is no specified minimum amount of time required for a direction to be considered a trend, the
longer the direction is maintained, the more notable the trend.
Trend analysis is the process of looking at current trends in order to predict future ones and is
considered a form of comparative analysis. This can include attempting to determine whether a
current market trend, such as gains in a particular market sector, is likely to continue, as well as
whether a trend in one market area could result in a trend in another. Though a trend analysis
may involve a large amount of data, there is no guarantee that the results will be correct.
In order to begin analyzing applicable data, it is necessary to first determine which market
segment will be analyzed. For instance, you could focus on a particular industry, such as the
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automotive or pharmaceuticals sector, as well as a particular type of investment, such as the bond
market.
Once the sector has been selected, it is possible to examine its general performance. This can
include how the sector was affected by internal and external forces. For example, changes in a
similar industry or the creation of a new governmental regulation would qualify as forces
impacting the market. Analysts then take this data and attempt to predict the direction the market
will take moving forward.
Critics of trend analysis, and technical trading in general, argue that markets are efficient, and
already price in all available information. That means that history does not necessarily need to
repeat itself and that the past does not predict the future. Adherents of fundamental analysis, for
example, analyze the financial condition of companies using financial statements and economic
models to predict future prices. For these types of investors, day-to-day stock movements follow
a random walk that cannot be interpreted as patterns or trends.
Uses of Trend Analysis in surveys
Researchers and businesses run a trend analysis report after data collection for the following:
· To understand consumer behavior: Based on historical data, it helps companies understand
what the consumers need and what gets outrightly rejected. It helps them make timely
changes in the products and then push it out in the market. For instance, it helps identify and
target customers and make informed decisions in a bear market situation.
· To identify a shift in consumer realization: Consumer perception concerning the product or
service can be quite volatile. Short term planning won't lead you too far. Customer
satisfaction levels can change due to even minor changes in the business style or product.
Trend analysis involves the technical analysis of consumer needs and how they perceive a
product or a service.
· To understand the cost drivers: Businesses need to study the financial aspects of their
business like the stock price and cost drivers affecting their products or services over time
periods. They need to innovate and come up with the best possible products at a lower price
than their competitors. Analyzing the trend over a period of time helps identify these drivers.
Trend analysis is a handy tool to gauge the profit for an investor.

5.6.1 Fitting a Trend: Least-Squares

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Each point on the fitted curve represents the relationship between a known independent variable
and an unknown dependent variable.
In general, the least squares method uses a straight line in order to fit through the given points
which are known as the method of linear or ordinary least squares. This line is termed as the line
of best fit from which the sum of squares of the distances from the points is minimized.
Equations with certain parameters usually represent the results in this method. The method of
least squares actually defines the solution for the minimization of the sum of squares of
deviations or the errors in the result of each equation.
The least squares method is used mostly for data fitting. The best fit result minimizes the sum of
squared errors or residuals which are said to be the differences between the observed or
experimental value and corresponding fitted value given in the model. There are two basic kinds
of the least squares methods – ordinary or linear least squares and nonlinear least squares.

5.6.2 Trends in Random Data

Prior to studying a real system, study and analysis of a virtual model is encouraged in many
situations. Hence, before considering trends in real data, it is useful to understand trends in
random data. In case a series of random numbers (data) is analysedviz fair dice falls, or
computer-generated pseudo-random numbers – and a trend line is fitted through the data, the
chances of an exactly zero estimated trend are negligible. But the trend would be expected to be
small. If an individual series of observations is generated from simulations that employ a given
variance of noise that equals the observed variance of our data series of interest, and a given
length (say, 100 points), a large number of such simulated series (say, 100,000 series) can be
generated(extrapolated). These 100,000 series can then be analysed individually to calculate
estimated trends in each series, and these results establish a distribution of estimated trends that
are to be expected from such random data – see diagram. Such a distribution will be normal
according to the central limit theorem except in pathological cases. A level of statistical
certainty, S, may now be selected – 95% confidence is typical; 99% would be stricter, 90%
looser – and the following question can be asked: what is the borderline trend value V that would
result in S% of trends being between −V and +V?
The above procedure can be replaced by a permutation test. For this, the set of 100,000 generated
series would be replaced by 100,000 series constructed by randomly shuffling the observed data
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series; clearly such a constructed series would be trend-free, so as with the approach of using
simulated data these series can be used to generate borderline trend values V and −V.
In the above discussion the distribution of trends was calculated by simulation, from a large
number of trials. In simple cases (normally distributed random noise being a classic) the
distribution of trends can be calculated exactly without simulation.
The range (−V, V) can be employed in deciding whether a trend estimated from the actual data is
unlikely to have come from a data series that truly has a zero trend. If the estimated value of the
regression parameter a lies outside this range, such a result could have occurred in the presence
of a true zero trend only, for example, one time out of twenty if the confidence value S=95% was
used; in this case, it can be said that, at degree of certainty S, we reject the null hypothesis that
the true underlying trend is zero.
However, note that whatever value of S we choose, then a given fraction, 1 − S, of truly random
series will be declared (falsely, by construction) to have a significant trend. Conversely, a certain
fraction of series that in fact have a non-zero trend will not be declared to have a trend.

5.6.3 Data as Trend Plus Noise

The Seasonal component
The seasonal component explains the periodic ups and downs one sees in many data sets such as
the one shown below.
In the above example, the seasonal period is approximately 12 months and it peaks in March and
bottoms out in November or December before peaking in March again.
A time series can contain multiple superimposed seasonal periods. A classic example is a time
series of hourly temperatures at a weather station. Since the Earth rotates around its axis, the
graph of hourly temperatures at a weather station will show a seasonal period of 24 hours. The
Earth also revolves around the Sun in a tilted manner, leading to seasonal temperature variations.
If you follow the temperature at the weather station at say 11 am for 365 days, you will see a
second pattern emerging that has a period of 12 months. The 24 hour long daily pattern is
superimposed on the 12 month long yearly pattern.
In case of the hourly weather data, one knows what are the underlying physical phenomena that
are causing the two seasonal patterns. But in most cases, it’s not possible to know what are all
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the factors that are introducing seasonality into your data. And so, it is seldom easy to unearth all
the seasonal periods that may be hiding in a time series.
That being said, the commonly occurring seasonal periods are a day, week, month, quarter (or
season), and year.
Seasonality is also observed on much longer time scales such as in the solar cycle, which follows
a roughly 11 year period.
The Trend component
The Trend component refers to the pattern in the data that spans across seasonal periods.
The time series of retail eCommerce sales shown below demonstrates a possibly quadratic trend
(y = x²) that spans across the 12 month long seasonal period:

The Cyclical component

The cyclical component represents phenomena that happen across seasonal periods. Cyclical
patterns do not have a fixed period like seasonal patterns do. An example of a cyclical pattern is
the cycles of boom and bust that stock markets experience in response to world events.
The cyclical component is hard to isolate and it’s often ‘left alone’ by combining it with the
trend component.
The Noise component
The noise or the random component is what remains behind when you separate out seasonality
and trend from the time series. Noise is the effect of factors that you do not know, or which you
cannot measure. It is the effect of the known unknowns, or the unknown unknowns.
5.6.4 Noisy Time Series

There are two types of noise in time series data, white noise, and red noise.
White Noise:
A noise sequence is a white noise sequence if
· The expectation of each element is 0.
· The variance of each element is finite.
· The elements are uncorrelated.
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To check white noise Fisher’s test is performed. Fisher’s test checks that if a sequence is white
noise sequence or not. If the value of Fisher’s test outcome is less than 0.5, the sequence is
considered as noise free.
What is a White Noise Time Series?
A noise sequence is a white noise sequence if
· The expectation of each element is 0.
· The variance of each element is finite.
· The elements are uncorrelated.

To check white noise Fisher’s test is performed. Fisher’s test checks that if a sequence is white
noise sequence or not. If the value of Fisher’s test outcome is less than 0.5, the sequence is
considered as noise free.
Why Does it Matter?
White noise is an important concept in time series analysis and forecasting.
It is important for two main reasons:
1. Predictability: If your time series is white noise, then, by definition, it is random. You
cannot reasonably model it and make predictions.
2. Model Diagnostics: The series of errors from a time series forecast model should ideally
be white noise.
Model Diagnostics is an important area of time series forecasting.
Time series data are expected to contain some white noise component on top of the signal
generated by the underlying process.
For example:

1y(t) = signal(t) + noise(t)

Once predictions have been made by a time series forecast model, they can be collected and
analyzed. The series of forecast errors should ideally be white noise.
When forecast errors are white noise, it means that all of the signal information in the time series
has been harnessed by the model in order to make predictions. All that is left is the random
fluctuations that cannot be modeled.
A sign that model predictions are not white noise is an indication that further improvements to
the forecast model may be possible.
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Red Noise:
Red noise has a power spectrum towards low frequencies. A time series is a red noise sequence if
· The sequence has zero mean.
· The sequence has constant variance.
The Sequence has a serial correlation in time.
5.6.5 Goodness of Fit (R-squared) and Trend
WHAT IS GOODNESS-OF-FIT FOR A LINEAR MODEL?

Definition: Residual = Observed value - Fitted value

Linear regression calculates an equation that minimizes the distance between the fitted line and
all of the data points. Technically, ordinary least squares (OLS) regression minimizes the sum of
the squared residuals.
In general, a model fits the data well if the differences between the observed values and the
model's predicted values are small and unbiased.
Before you look at the statistical measures for goodness-of-fit, you should check the residual
plots. Residual plots can reveal unwanted residual patterns that indicate biased results more
effectively than numbers. When your residual plots pass muster, you can trust your numerical
results and check the goodness-of-fit statistics.
WHAT IS R-SQUARED?
R-squared is a statistical measure of how close the data are to the fitted regression line. It is also
known as the coefficient of determination, or the coefficient of multiple determination for
multiple regression.
The definition of R-squared is fairly straight-forward; it is the percentage of the response
variable variation that is explained by a linear model. Or:
R-squared = Explained variation / Total variation
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R-squared is always between 0 and 100%:

 0% indicates that the model explains none of the variability of the response data around
its mean.
 100% indicates that the model explains all the variability of the response data around its
mean.

In general, the higher the R-squared, the better the model fits your data. However, there are
important conditions for this guideline that I’ll talk about both in this post and my next post.
GRAPHICAL REPRESENTATION OF R-SQUARED
Plotting fitted values by observed values graphically illustrates different R-squared values for
regression models.

The regression model on the left accounts for 38.0% of the variance while the one on the right
accounts for 87.4%. The more variance that is accounted for by the regression model the closer
the data points will fall to the fitted regression line. Theoretically, if a model could explain 100%
of the variance, the fitted values would always equal the observed values and, therefore, all the
data points would fall on the fitted regression line.

5.6.6 Real Data is Auto-correlated

So far, the data is supposed to consist of the trend and noise, and it was assumed that noise at
every data point was independent (Markov, Gaussian noise). The very assumption that the Noise
is a stationary Gauss-Markov process hails from the principle of minimal information.
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This is considered to be of prime importance because of the fact that it is handy in making
statistical analysis. Actual data (such as climate data) may not meet this standard.
Autocorrelation time series can be modelled using auto-regressive moving average model.

5.7 Analogy
An Analogy is a relation of similarity between two or more things, so that an inference
(reasoning from premise to conclusion) is drawn on the basis of that similarity. So if item or
person or process A is known to have certain characteristics, and if item or person or process B is
known to have at least some of those characteristics, the inference is drawn that B also has those
other characteristics. If the cases are not similar enough to warrant the inference, then it is a false
analogy.
An analogy is either the cognitive process of transferring information from a particular
subject (the analogue or source) to another particular subject (the target), or a linguistic
expression corresponding to such a process. In a narrower sense, an analogy is an inference or an
argument from a particular to another particular, The word analogy can also refer to the relation
between the source and the target themselves, which is often, though not necessarily, a similarity,
as in the biological notion of analogy.
Analogy has been studied and discussed since classical antiquity by philosophers,
scientists, and lawyers. The last few decades have shown a renewed interest in analogy, most
notable in cognitive science.
With respect to the terms source and target, there are two distinct traditions of usage:

 The logical and mathematical tradition speaks of an arrow, homomorphism, mapping, or

morphism from what is typically the more complex domain or source to what is typically
the less complex codomain or target, using all of these words in the sense of
mathematical category theory.
 The tradition that appears to be more common in cognitive psychology, literary theory,
and specializations within philosophy outside of logic, speaks of a mapping from what is
typically the more familiar area of experience, the source, to what is typically the more
problematic area of experience, the target.
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Analogy plays a significant role in problem solving, decision making, perception,

memory, creativity, emotion, explanation and communication. It lies behind basic tasks such as
the identification of places, objects and people, for example, in face perception and facial
recognition systems. It has been argued that analogy is "the core of cognition" (Gentner et al.
2001). Specifically analogical language comprises exemplification, comparisons, metaphors,
similes, allegories, and parables, but not metonymy. Phrases like "and so on," "and the like," "as
if," and the very word "like" also rely on an analogical understanding by the receiver of a
message including them. Analogy is important not only in ordinary language and common sense,
where proverbs and idioms give many examples of its application, but also in science,
philosophy and the humanities. The concepts of association, comparison, correspondence,
homomorphism, iconicity, isomorphism, mathematical homology, metaphor, morphological
homology, resemblance, and similarity are closely related to analogy. In cognitive linguistics, the
notion of "conceptual metaphor" may be equivalent to that of analogy.
5.7.1 Applications and Types of Analogy
Analogy is metacognitive task; it plays a significant role in problems ñ solving, decision-
making, perception, memory, creativity, emotion, explanation, and communication. It
encompasses the specific analogical language that comprises exemplification,
comparisons,.metaphors, similes, allegories, and parables, but not metonymy. Phrases such as
and so on, and the like, as if, and the common word like also rely on analogical understanding. In
a narrower sense, analogy is an inference or an argument from one particular to another.
IN LANGUAGE:
• In rhetoric. An analogy can be a spoken or textual comparison between two words (or sets of
words) to highlight some semantic similarities between them. Such analogies can be used to
strengthen political and philosophical arguments, even when the semantic similarity is weak or
non-existent (if crafted carefully for the audience). Analogies are sometimes used to persuade
those that cannot detect the flawed or non-existent arguments.
• In linguistics. An analogy can be the linguistic process that reduces word forms perceived as
irregular by remarking them in the shape of more common forms that are governed by rules. For
example, the english verb help once had the preteriteholp and the past participle holpen. Those
obsolete forms have been discarded and replaced by helped by the power of analogy (or by
widened application of the productive verb ed rule). This is called leveling. However irregular
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forms can sometimes be created by analogy; one example is the americanenglish past tense form
of drive: drove, formed on analogy with words such as thrive: throve.
• In neologism. Analogies can be also formed with existing words. A good example is software,
form by analogies with hardware, analogous neologism such as firmware and vaporware have
followed. Another example is the humorous term underwhelmed, form by analogy with
overwhelm.
In Sciennce:
Analogies are often used in theoretical and applied sciences in the form of models or
stimulations that can be considered as a strong analogies. Other much weaker analogies assist in
understanding and describing functional behaviour of similar systems. For instance an analogy
commonly used in electronics textbooks compares electrical circuits to hydraulics. Another
example is the analogue ear based on electrical, electronic or mechanical devices.
In Mathematics:
Some types of analogies can have a precise mathematical formulation through the
concept of isomorphism or the one to one correspondence between sets so that an operation such
as addition and multiplication in one produces the same result as the analogous operation in the
other. It means that given the same mathematical structures of the same type, an analogy
between them them can be thought as a bijection.

In Anatomy:
In anatomy, two anatomical structures are analogous when they perform similar
functions. For example, the legs of the vertebrates and the legs of insects.

In Engineering:
In engineering, a physical prototype is built to model and represent some other physical
objects. For instance, wind tunnels are used to test scales models of wings and aircraft, which act
as an analog to full sized wings and aircraft.

In Morality::
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• In morality, analogy is also applied. If it is wrong to do something in situation A, and

situation B is analogous to A in all relevant features, then it is also wrong to perform that action
in situation B.

In Cybernetics:
Where there is dependence and hence interaction between a pair or more of biological or
physical participants communication occurs and the stresses produced describe internal models
inside the participants. Pask in his conversation theory asserts there exists an analogy exhibiting
both similarities and differences between any pair of the participants' internal models or
concepts.

In History:
In the history science comparative historical analysis is often using the concept of
analogy and analogical reasoning. Recent computational approaches operating on large
document archives allow for automatically finding analogical entities from the past for arbitrary
user queries (e.g., Myanmar - Burma) and for their explanation.

5.8 Soft System Methodology

5.8.1 What is SSM?
“Soft Systems Methodology (SSM) is a cyclic learning system which uses models of
human activity to explore with the actors in the real world problem situation, their perceptions of
that situation and their readiness to decide upon purposeful action which accommodates different
actor’s perceptions, judgments and values.”(Checkland, 1999)
SSM attempts to learn and appreciate the problem situations between the groups of
stakeholders rather than set out to solve a problem that is pre-defined (Huaxia). This soft or
‘purpose exploring’ approach helps managers to improve their processes when it comes to the
decision making about their companies purpose (Torlak). There are two modes to SSM, real
world activities and systems thinking about real world. Most work involves interviews and
meetings to gain insight of the problem situation, this is represented by the use of ‘rich pictures’
and/or ‘CATWOE’. Systems thinking will use concepts such as; emergent properties,
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communication, hierarchy, and control to identify ‘relevant systems’ which could provide useful
information (IfM Management Technology Policy). SSM is a systemic methodology that focuses
on the whole, instead of the parts (Mehregan, 426).

5.8.2 The Origin of Soft Systems Methodology (SSM)

To better understand SSM, we must first consider why it was created in the first place. It
originated from the understanding that “hard” Systems Thinking such as, Operations Research
techniques, was inadequate for the complexity of large organizational issues (Wang). Soft
Systems Methodology was created by Peter Checkland for the main purpose of dealing with
these large issues. During his career, he had been working with many hard systems
methodologies. He saw how the current systems were inadequate for the purpose of dealing with
high levels of complex problems, which had a large social component. In the 1960s, he went to
the University of Lancaster to research this area further (Checkland, 2000). This is where he
would conceive his “Soft Systems Methodology” through his research projects and years of
applications and refinements

5.8.3 Analyses and Techniques

What happens in an SSM intervention?
When you have a complex organizational problem, SSM intervention is used to help
break down the issue. SSM does have a clear structure, but it is up to the practitioner to use it in
a smart, flexible way. The user must see the problem they face as a system. After, they form it
into an unstructured problems, creating a conceptual model in decision making. The
development model of the system can be done my discussion with the stakeholders and joint
problem solving (Prasetyo).

The SSM intervention follows as such:

1. Determine the situation
2. Think about different systems which could or could not be employed in the situation
3. Measure the thinking to the systems
4. Take an action depending on previous information learned
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One cannot simply perform these four stages and get a ‘right’ answer. They must take
these four stages as a bases for action, keeping each in mind (Hopkins)

5.9 Mathematical Models

Mathematical modelling is the process of using various mathematical structures – graphs,
equations, diagrams, scatterplots, tree diagrams, and so forth – to represent real world situations.
The model provides an abstraction that reduces a problem to its essential characteristics.
Mathematical models are used almost in every field of sciences (such as physics, biology, earth
science, chemistry) and engineering disciplines (such as computer science, electrical
engineering), as well as in non-physical systems such as the social sciences (such as economics,
psychology, sociology, political science). The use of mathematical models to solve problems in
business or military operations is a large part of the field of operations research. A model may
help to explain a system and to study the effects of different components, and to make
predictions about behavior.

5.9.1 Classifying Mathematical Models

Linear vs. nonlinear: If all the operators in a mathematical model exhibit linearity, the
resulting mathematical model is defined as linear. A model is considered to be nonlinear
otherwise. The definition of linearity and nonlinearity is dependent on context, and linear models
may have nonlinear expressions in them. For example, in a statistical linear model, it is assumed
that a relationship is linear in the parameters, but it may be nonlinear in the predictor variables.
Similarly, a differential equation is said to be linear if it can be written with linear differential
operators, but it can still have nonlinear expressions in it. In a mathematical programming model,
if the objective functions and constraints are represented entirely by linear equations, then the
model is regarded as a linear model. If one or more of the objective functions or constraints are
represented with a nonlinear equation, then the model is known as a nonlinear model.
Linear structure implies that a problem can be decomposed into simpler parts that can be
treated independently and/or analyzed at a different scale and the results obtained will remain
valid for the initial problem when recomposed and rescaled.
Nonlinearity, even in fairly simple systems, is often associated with phenomena such as chaos
and irreversibility. Although there are exceptions, nonlinear systems and models tend to be more
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difficult to study than linear ones. A common approach to nonlinear problems is linearization,
but this can be problematic if one is trying to study aspects such as irreversibility, which are
strongly tied to nonlinearity.

Static vs. dynamic: A dynamic model accounts for time-dependent changes in the state of the
system, while a static (or steady-state) model calculates the system in equilibrium, and thus is
time-invariant. Dynamic models typically are represented by differential equations or difference
equations.

Explicit vs. implicit: If all of the input parameters of the overall model are known, and the
output parameters can be calculated by a finite series of computations, the model is said to be
explicit. But sometimes it is the output parameters which are known, and the corresponding
inputs must be solved for by an iterative procedure, such as Newton's method or Broyden's
method. In such a case the model is said to be implicit. For example, a jet engine's physical
properties such as turbine and nozzle throat areas can be explicitly calculated given a design
thermodynamic cycle (air and fuel flow rates, pressures, and temperatures) at a specific flight
condition and power setting, but the engine's operating cycles at other flight conditions and
power settings cannot be explicitly calculated from the constant physical properties.

Discrete vs. continuous: A discrete model treats objects as discrete, such as the particles in a
molecular model or the states in a statistical model; while a continuous model represents the
objects in a continuous manner, such as the velocity field of fluid in pipe flows, temperatures and
stresses in a solid, and electric field that applies continuously over the entire model due to a point
charge.

Deterministic vs. probabilistic (stochastic): A deterministic model is one in which every set of
variable states is uniquely determined by parameters in the model and by sets of previous states
of these variables; therefore, a deterministic model always performs the same way for a given set
of initial conditions. Conversely, in a stochastic model—usually called a "statistical model"—
randomness is present, and variable states are not described by unique values, but rather by
probability distributions.
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Deductive, inductive, or floating: A deductive model is a logical structure based on a theory.

An inductive model arises from empirical findings and generalization from them. The floating
model rests on neither theory nor observation, but is merely the invocation of expected structure.
Application of mathematics in social sciences outside of economics has been criticized for
unfounded models.Application of catastrophe theory in science has been characterized as a
floating model.

Strategic vs non-strategic Models used in game theory are different in a sense that they model
agents with incompatible incentives, such as competing species or bidders in an auction.
Strategic models assume that players are autonomous decision makers who rationally choose
actions that maximize their objective function. A key challenge of using strategic models is
defining and computing solution concepts such as Nash equilibrium. An interesting property of
strategic models is that they separate reasoning about rules of the game from reasoning about
behavior of the players.

5.9.2 Complexity

In general, model complexity involves a trade-off between simplicity and accuracy of the
model. Occam’s Razor is a principle particularly relevant to modelling; the essential idea being
that among models with roughly equal predictive power, the simplest one is the most desirable.
While added complexity usually improves the fit of a model, it can make the model difficult to
understand and work with, and can also pose computational problems, including Numerical
instability. Thomas Kuhn argues that as science progresses, explanations tend to become more
complex before a Paradigm shift offers radical simplification.

Example: When modelling the flight of an aircraft, we could embed each mechanical part
of the aircraft into our model and would thus acquire an almost white-box model of the
system.

However, the computational cost of adding such a huge amount of detail would
effectively inhibit the usage of such a model. Additionally, the uncertainty would increase due to
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an overly complex system, because each separate part induces some amount of variance into the
model. It is therefore usually appropriate to make some approximations to reduce the model to a
sensible size. Engineers often can accept some approximations in order to get a more robust and
simple model. For example Newton’s classical mechanics is an approximated model of the real
world. Still, Newton’s model is quite sufficient for most ordinary-life situations, that is, as long
as particle speeds are well below the speed of light, and we study macro-particles only. Any
model which is not pure white-box contains some parameters that can be used to fit the model to
the system it shall describe.

If the modelling is done by a neural network, the optimization of parameters is called

training. In more conventional modelling through explicitly given mathematical functions,
parameters are determined by curve fitting.

5.9.3 Model Evaluation

A crucial part of the modeling process is the evaluation of whether or not a given mathematical
model describes a system accurately. This question can be difficult to answer as it involves
several different types of evaluation.

Fit to Empirical Data

Usually the easiest part of model evaluation is checking whether a model fits
experimental measurements or other empirical data. In models with parameters, a common
approach to test this fit is to split the data into two disjoint subsets: training data and verification
data. The training data are used to estimate the model parameters. An accurate model will closely
match the verification data even though this data was not used to set the model’s parameters.
Defining a metric to measure distances between observed and predicted data is a useful tool of
assessing model fit. In statistics, decision theory, and some economic models, a loss function
plays a similar role. While it is rather straightforward to test the appropriateness of parameters, it
can be more difficult to test the validity of the general mathematical form of a model. In general,
more mathematical tools have been developed to test the fit of statistical models than models
involving Differential equations. Tools from nonparametric statistics can sometimes be used to
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evaluate how well data fits a known distribution or to come up with a general model that makes
only minimal assumptions about the model’s mathematical form.

5.10 Simulation

Simulation may be defined as the imitation of real world systems and their processes over
time to gain insight about the system. It requires building a model of the system under
consideration with all the influencing factors included in it. Simulation analysis of systems
can provide worthy information about the system through statistics.

Simulation can be applied for cases study of increasing population rate and its impact on
employment food and water scarcity, The utilization of resources in a cafeteria and its
returns, routing changes of traffic and its impact, Capacity requirements of a hospital,
bottleneck analysis of flow lines, Maximization of throughput of an industry etc.

Simulation analysis can throw light on the mysterious and unknown aspects of industrial
situations that need immediate attention and quality solutions. It can help engineers explore
new horizons of real life organizational cases that is practically impossible.

Simulation helps understanding how a process will be done. For example, a pilot run of a
CNC machining operation can be verified and validated by writing a CNC code for it. Sitting
before the monitor we can virtually see how a work piece will be cut to produce the final
desired shape and size.

Simulation is vastly used as a pedagogical tool for teaching and learning. It is an

excellent training tool for the trainees of different fields. Driving schools initially put a
learner on a car simulator to learn the basics. After getting enough training the trainee gains
sufficient experience and confidence to try driving on the roads.

In a similar way, simulators are available to train the EMU trainees, racing cars, aircraft
pilots. These simulators consists of hydraulic capsules with screens where virtual
environments are created. The trainee controls the system through a hand console or by some
other apt means. Simulators are very effective in helping a trainee to undergo trainings at
various levels before they are put for further training in a real system. The trainees are
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benefited in many ways. Virtual accidents become learning experiences rather than the threat
for life that may result with a conventional training means.

In classical thinking there are three types of simulation; discrete event, continuous, and
Monte Carlo. Discrete event simulation utilizes a mathematical/logical model of a physical
system that portrays state changes at precise points in simulated time. Both the nature of the
state change and the time at which the changes occur mandate precise description. Customers
waiting for service, the management of parts inventory or military combat are typical
domains of discrete event simulation. Monte Carlo simulation mostly refers to the static
systems that operate with fixed number of items on fixed duration. These models can be
either stochastic or deterministic that make use of random numbers for describing inputs.

5.10.1 Physical and Interactive Simulation

A physical model (most commonly referred to simply as a model but in this context
distinguished from a conceptual model) is a smaller or larger physical copy of an object. The
object being modelled may be small (for example, an atom) or large (for example, the Solar
System).

Physical models allow visualization, from examining the model, of information about the thing
the model represents. A model can be a physical object such as an architectural model of a
building. Uses of an architectural model include visualization of internal relationships within the
structure or external relationships of the structure to the environment. It can even be a town plan
for piping and water resources.

A physical model of something large is usually smaller, and of something very small is larger. A
physical model of something that can move, like a vehicle or machine, may be completely static,
or have parts that can be moved manually, or be powered. A physical model may show inner
parts that are normally not visible. Like a wooden assembly model of human heart which can be
detached to show its valves and chambers. The purpose of a physical model on a smaller scale
may be to have a better overview, for testing purposes, as hobby or toy. The purpose of a
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physical model on a larger scale may be to see the structure of things that are normally too small
to see properly or to see at all, for example, a model of an insect or of a molecule.
Interactive simulation is a special kind of physical simulation, often referred to as a
human in the loop simulation, in which physical simulations include human operators, such as in
a flight simulator or a driving simulator. Human in the loop simulations can include a computer
simulation as a so-called synthetic environment.

5.10.2 Computer Simulation

A computer simulation is the usage of a computer for the imitation of a real-world
process or system. The dynamic responses of one system are represented by the behavior of
another system, which is largely modeled on the former. A simulation requires a model, or a
mathematical description of the real system. This is in the form of computer programs, which
encompass the key characteristics or behaviors of the selected system. Here, the model is
basically a representation of the system and the simulation process is known to depict the
operation of the system in time.
Computer simulations find usage in the study of dynamic behavior in an environment that
may be difficult or is dangerous to implement in real life. Say, a nuclear blast may be represented
with a mathematical model that takes into consideration various elements such as velocity, heat
and radioactive emissions. Additionally, one may implement changes to the equation by
changing certain other variables, like the amount of fissionable material used in the blast.
Simulations largely help in determining behaviors when individual components of a
system are altered. Simulations can also be used in engineering to determine potential effects,
such as that of river systems for the construction of dams.

5.10.3 Simulation in Education and Training

In Militaries: The military has got a variety of applications which require new technology such
as simulation. The uses include training the officers, rehearsing for military operations, testing
and conducting evaluations and analyzing the effectiveness of war activities. Military training
can be classified into training at the units or technical training. Technical training is usually
structured from the time it begins till its end while training at the unit involves practical use of
the tools that the trainee will be expected to use.
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There are various types of simulation used by the military in its operations and in offering
training to the officers. The simulation can be subdivided into two the first sub division
comprising of systems and the people. The second sub division can comprise systems and people
combined together and it can also be in such a way that there is neither people nor systems or
one of the two.

The first type of simulation used in the military is live simulation. This type of simulation is
comprised of systems and people that are alive in a situation involving a large group of people
taking part in a simulated battle. The simulated battle employs live weapons and other equipment
used in war.

This type of simulation is intended at preparing the officers for war. It is a real encounter that
soldiers experience without necessarily going to battle fields. Militaries of different countries
establish several locations in their countries to offer this type of training (Hang, 2011).

The second application of simulation in the military is the use of virtual simulation. It is among
the most widely used new technologies in the military. It is used by military personnel to offer
training to soldiers and aviators to guarantee success in the battle fields. Virtual simulation is
used in conjunction with tank simulators which are used in training soldiers effective use of
battlefield tanks.

Flight Simulators:
A flight simulator is a virtual reality system capable of simulating the environment of a
flying machine for a pilot. Flight simulators are largely used for pilot training or for
recreation/gaming, but can also be used to research aircraft characteristics, control
handlingcharacteristics, design and development of aircraft.
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A flight simulator helps in artificially recreating the aircraft flight environment for pilot
training, design or other purposes.The main purpose of a flight simulator is to help the pilot to
achieve, test and maintain proficiency in handling airplane operation without involving any risk
to property or lives, and at a much lower cost than training in the air. A simple flight simulator
system consists of multiple displays, control devices, an audio system for communications and a
computer system to process control inputs and record flight data.

Overall effectiveness and training efficiency are the chief reasons behind using flight
simulators as training devices. Novice pilots can experience the flight environment and can learn
from mistakes without any risks. It relieves instructors from safety considerations and flight
duties. It is a cost-effective training solution as it saves crew time, fuel and maintenance of the
real aircraft. The flight simulation does not depend on any environmental conditions and also
permits repetition of the practice of a particular phase of flight. Accurate replication of numerous
environmental and flight conditions is possible through a flight simulator.
However, the simulator is not able to replicate the mental conditions or stress level in a
pilot when flying an actual aircraft. The simulator can not reproduce the boredom or fatigue
involved in lengthy flights. Furthermore, certain aircraft flies quite differently in real life
compared to flight simulators. Although a flight simulator can train pilots for different
conditions, a flight simulator alone would not be able to give an accurate analysis of a pilot’s
flying capabilities.
Robotic Simulators: Robotics simulation is a digital tool used to engineer robotics-based
automated production systems. Functionally, robotics simulation uses digital representation – a
digital twin – to enable dynamic interaction with robotics models in a virtual environment. The
purpose of robotics and automation simulation systems is to bring automation systems online
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much faster and launch production with fewer errors than occurs with conventional automation
engineering.
Health care Simulators: Healthcare Simulation is the modern way to educate and train
healthcare professionals to master cognitive, technical, and behavioral skill sets through
technologically advanced crafted experiences. This style of experiential learning enables
professionals and learners to practice and test their profession while building confidence in their
abilities, prior to working in real world scenarios. Healthcare Simulation is also commonly
referred to as Medical Simulation, or in specific circumstances Surgical Simulation and Nursing
Simulation.
Not only does healthcare simulation, aka medical simulation, help to ensure that
professionals and facilities are offering the highest quality services, but healthcare simulation
also ultimately increases the likelihood of following best practices. Furthermore, this
representation of healthcare situations has come to serve as a primary research tool and a means
by which increased patient safety can be integrated and facilitated in practices.

Bike Simulator: The motocycle simulator is a replica of a real bike with brake, clutch,
accelerator, gear and ignition key switch place in ergonomically correct locations. During
training, the rider gets exposed to various weather conditions, traffic density, different traffic
scenarios and real life hazardous under complete safety. The motorcycle simulator is ideal to
train novice as well as advanced riders.

5.11 System Dynamics

5.11.1 Elements of System Dynamics
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5.12 S-curve
What does an S-curve represent?
An S-Curve’s definition is a mathematical graph that represents all of the data for a project. It’s
called an S-curve because of the graph’s striking similarity to the 19th letter of the alphabet. This
information plotted on the graph is typically the project cost or the number of hours worked
compared against time— making it a useful tool for project managers to see the project progress
at a high level.
At the start of the project, progress is slow and looks more like a straight line, whereas more
rapid growth would be reflected with a sharper incline. Many internal and external factors
through a project’s life cycle can impact the shape of an S- curve graph.
In the first stages, the project team is coming together, stakeholders are getting on board, and
your time is spent planning rather than doing. Once the project is in full swing, growth in project
activity — like man-hours — is significantly higher and the steep curve upward continues to
grow to form the middle part of the S-shape. The point of maximum activity is called the
inflexion point. Consequently, as the project begins to wind down and move to closure, the curve
levels out again.

How does the S-curves help a manager make decisions?

An s-curve is helpful in monitoring project success because the real-time cumulative data of
various project elements on it can be compared with projected data. You can examine the degree
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of alignment between two graphs to reveal the progress—or lack thereof— of whichever element
is being studied. Here are a few more ways S-curves can serve a project manager well in the long
term.
S-curves help you track project progress
Only 50% of PMs baseline their project schedule, which makes it difficult to monitor actual
progress. By plotting an S-curve during project initiation, using estimates for data such as
expected man-hours and cost, you have a baseline to track progress against. During the project
lifecycle, the project manager can plot actual resource use to see how well it matches what’s
expected. If there’s a gap between them, it’s an opportunity to make corrections on how
resources are being used.

They enable you to predict when resources will be heavily utilized

Plotting your S-curve indicates when you expect the project to be most resource-intensive, such
as when you need a cash injection or when activities are higher. This will make budget planning
and resource allocation more accurate, as you will be able to clearly and confidently
communicate when you need a large chunk of the project budget released by business
stakeholders, or when you need to supplement your core project team with contractors.
They help you manage stakeholder expectations
S-curves can also help with keeping stakeholders engaged with your project, as they are a visual
and intuitive way to explain to stakeholders the probable pace of work throughout the stages of
the S-curve.
Explaining that progress is likely to be slow in the early stages of project execution before there
will be a significant upturn in the amount of work can help manage stakeholder expectations that
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change might be rapid. It also keeps your team members on the same page for the deliverables of
the product or service.
They enable you to plan for different schedule scenarios
Once your baseline S-curve is created, you can play with the inputs to identify the impact on the
project. In such time-sensitive industries like marketing or advertising, smart and swift decisions
are essential to staying relevant or dare we say, ahead of the curve.
This creates 2 curves that join at the start and finish and are known as a ‘banana curve,’ because
of their shape. Project managers often estimate the earliest, and latest, a task can start in the
schedule while not affecting overall duration. This indicates how much flex or ‘float’ there is in
the schedule should things change during project execution.
As actual work is delivered, you can plot this against the banana curve. If the data points are
close to the ‘latest date’ curve, it flags risk of project delay and prompts the project team to take
action.

2 common uses of S-curves in project management?

Resource allocation planning
Plotting an S-curve using the variables of ‘expected man-hours’ and ‘time,’ shows how the
project team size will need to flex over the project lifecycle. In the early stages of the project,
when expected man-hours are low, you’ll likely just recruit a core project team. However, the
recruitment process can take a long time, so it’s helpful to be able to plan when recruiting needs
to start in order to have the right amount of people when required man-hours start to increase.
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Expenditure vs. cash flow

Less than half of all projects are completed within budget, and careful monitoring and
management of budgeted costs are crucial. This must be balanced with the fact that it’s rare for a
project manager to get a hold of their whole project budget at once —it’s usually released in
stages.
An S-curve can show planned expenditure over the life of the project. If this is overlaid with
information on when project funds are expected to be received, it’s easy to understand if the
project is going to run into cash-flow problems.
This allows project managers to either negotiate the schedule of when funds are going to be
released, or delay any tasks that aren’t on the critical path until the next cash injection can be
secured. If actual spend is lower than expected, there may be an opportunity to speed up the
project timeline by securing extra resources to deliver work, or to increase the project scope.

5.12.1 S-curve Describing the Growth of Entities

An s-curve describes a curve with an s shape that starts close to zero, grows gradually
until it reaches a relatively sudden increase, then levels off or decreases. When a business starts,
its growth usually follows this pattern. As the business launches, its products sell slowly. As it
gains customers and popularity, it may have a time of rapid growth. Eventually it slows to
relative consistency because of one or more internal or external events. Individual products or
technologies also follow this pattern of growth.

This curve can be useful for understanding the pattern of a business's growth or a
product's development. Recognizing a business's position on the s-curve may be helpful for small
business owners or people in sales who are making long-term strategic business decisions, like
when to hire staff and increase manufacturing efforts. This s-curve is shaped like the s-curves
used in project management and mathematics, but has specific business applications.
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5.12.2 What causes inflection points?

For s-curves in business, the inflection point is the point along the curve where changes in the
business's environment or practices shift the curve itself from upward to downward or vice versa.
This means that the business's growth slows down, and may eventually stop or decrease.
Both internal and external events can bring an inflection point for a business, and some events
impact entire industries or sectors. Here are some causes of inflection points:

 New technology in the industry: When a company's competitors release a new

technology or product, this may cause an inflection point for the company.
 Market saturation: If a company's product was very successful in a certain market,
demand for their product may go down when they have reached a majority of their
possible customers.
 Regulatory changes: Additional regulations that impact a company's production or
distribution can slow their growth and cause a negative inflection point, while reduced
regulations may cause a sudden growth increase.
 Funding changes: Financial changes like new bank policies or government policies that
affect subsidies, grants and loans can limit or enable a company's growth, bringing an
inflection point.
 Natural disasters: Natural disasters can change what resources and infrastructure are
available over the long or short term, sometimes bringing inflection points for entire
industries.
 Economic changes: Businesses may find their growth limited or enabled as the economy
cycles through different stages.
 Trends: The rise and fall of trends often causes inflection points for products perceived as
luxuries or items that gain viral popularity.
 Infrastructure: New infrastructure can enable businesses to distribute much more easily,
while changes in publicly maintained infrastructure may cause temporary or permanent
additional costs.
 Scaling issues: Some companies may have internal decision-making challenges when
they begin to scale, as founders and leadership work to hire, supervise and provide for a
larger group of employees.
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 Changing values: For some companies, values may be harder to communicate or

maintain as more people join the organization, and if the values are an important part of
company culture or product value, this can cause an inflection point.
 Customer relations: As companies scale, maintaining a high level of customer attention
and individual care can be challenging. This change in customer relations may change
consumer behavior, bringing a decreased demand and eventually an inflection point.
 Slower innovation: New companies or products that are built on new technology may
face challenges to their rate of innovation as they scale and their development process
changes. If innovation doesn't meet customer needs or keep up with competitors, this can
cause an inflection point.

Summary

BENEFITS FROM FORECASTING Even though forcasting is surrounded by a number of

uncertainties a number of important but less tangible benefits can be derived from it. These may
be valuable as formal forecasting outputs.

i) Developing a future orientation: Forecasting gives an orientation to any organisation so as

to achieve better targets in the future.

ii) Discovery and insights: The process of forecasting often leads to some discoveries and an
insight into the future which could have remained ignored if this method would not have been
implemented.

iii) The forecast as an agenda for corporate discussion: The forecast provides a basis for a
wide ranging examination of the total environment in which a company operates. It becomes an
agenda for informed discussion.

iv) Gaining confidence - forecasting as a continuing activity : Forecasting should not be

regarded as a one-off exercise conducted only to assist in making a decision at a given point in
time although this may often be the immediate stimulus in practice. It should be regarded as an
unfolding picture rather than a snapshot. The longer one lives with a forecast the greater the
confidence in it is likely to be.
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v) Integration and communication: Research into effective management of technological

innovation indicates the importance of the technological contribution to corporate strategy
formulation and the need for all technical decisions to be taken in relation to the wider interests
oftheorganisation. These objectives can be achieved by the meeting of minds and the sharing of
information between people of differing backgrounds and functional roles. Forecasting is one of
the means where this can be achieved.

vi) Development of judgement: The involvement in forecasting can be regarded as partly

educational. The study of patterns and Their use in forecasting etches them in the subconscious
memory, whether or not they are being applied formally. This helps to develop an understanding
of the dynamics of technological development and an enhanced appreciation of all the non-
technical factors influencing it.

SUMMARY

 Technology forecasting is defined “as a collection of formalized processes or methods of

future technology evolution caused by developments in science and society, and;
interactions between these developments.”
 The term “trend analysis” refers to the concept of collecting information and attempting
to spot a pattern, or trend, in the information.
 Analogy is both the cognitive process of transferring information from a particular
subject (the analogue or source) to another particular subject (the target), and a linguistic
expression corresponding to such a process.
 The Delphi method is a systematic interactive forecasting method for obtaining forecasts
from a panel of independent experts.
 Soft Systems Methodology (SSM) is an approach to organizational process modeling and
it can be used both for general problem solving and in the management of change.
 A simulation is an imitation of some real thing, state of affairs, or process. The act of
simulating something generally entails representing certain key characteristics or
behaviours of a selected physical or abstract system.
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 Constructive simulation is often referred to as “wargaming” since it bears some

resemblance to table-top war games in which players command armies of soldiers and
equipment that move around a board.
 System dynamics is an approach to understanding the behaviour of complex systems over
time. It deals with internal feedback loops and time delays that affect the behaviour of the
entire system.
 The S-curve emerged as a mathematical model and was afterwards applied to a variety of
fields including physics, biology and economics. It describes for example the
development of the embryo, the diffusion of viruses, the utility gained by people as the
number of consumption choices increases, and so on.
 The point on the graph of the S-curve where it switches from being concave up (smiling)
to concave down (frowning) is a critical one. This is where the growth, though still
positive, begins to slow

Keywords
 Technology Forecasting: A technological forecast is a prediction of the future
characteristics of useful machines, techniques or procedures.
 Trend Analysis: Method of time series data (information in sequence over time) analysis
involving comparison of the same item (such as monthly sales revenue figures) over a
significantly long period to detect general pattern of a relationship between associated
factors or variables, and project the future direction of this pattern.
 Occam’s Razor: It is a principle which states that one should not make more assumptions
than the minimum needed.
 Computer Simulation: Computer simulation has three meanings. Computer simulation
can refer to a computer program that simulates an abstract model so that it can be studied
and analysed.
 Qualitative Research: Qualitative Research is taking more and more inputs from
psychology, to develop latest techniques in Qualitative Research.
 Quantitative Research: Quantitative research is most common encountered as part of
formal or conclusive research, but is also sometimes used when conducting exploratory
research.
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Self-Assessment Questions
Short Answer Questions
1. Define technology forecasting.
2. What are the two major types of technology forecasting? Explain each with an example.
3. What is analogy?
4. Describe military simulation.
5. What is an S-curve?
6. What is Delphi method of Forecasting?
7. What do you mean by Mathematical models?
8. What do you mean by Scientific Modelling?
9. What do you mean by System dynamics?
Long Answer Questions
1. Explain the need for technology forecasting.
2. What are the methods of technology forecasting? Explain in detail.
3. Explain the differences between quantitative and qualitative forecasting
techniques.
4. Explain how techniques like Trend Analysis, Delphi, Analogy, Soft System
Methodology, System Dynamics, Mathematical Models, Simulation and S-curve can be used to
forecast technology.
5. What are the applications and types of analogy?
6. Write notes on the following:
(a) Trend Analysis
(b) Analogy
(c) Simulations
(d) Mathematical Models

Further Readings
Brian C. Twiss(1992) Forecasting for Technologists and EngineersA Practical Guide for Better
Decisions, P. Peregrinus

Joseph P. Martino (2018)An Introduction to Technological ForecastingTaylor & Francis

Khurana, Vijay Kumar. Management of Technology andInnovation, Ane Books India, 2007
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Szakonyl, Robert. Handbook of Technology Management, VivaBooks Private Limited, 2008

Murthy, C.S.V. Technology Management, Himalaya, PublishingHouse Private Limited, 2006
Narayanan, V.K. Managing Technology and Innovation forCompetitive Advantage, Pearson, 2009
Krishnamacharyulu, C.S.G., and Ramakrishnan, Lalitha.Management of Technology, Himalaya
Publishing House PrivateLimited, 2008
Khandwalla, Pradip N., Corporate Creativity, TMH, 2006
https://www.simscale.com/industries/

Lesson 6 - ROLE OF TECHNOLOGY INFORMATION, FORECASTING AND

ASSESSMENT COUNCIL (TIFAC)

CONTENTS
Overview
6.1 Technology Information, Forecasting and Assessment Council(TIFAC)
6.1.1 Activities of TIFAC
6.2 Technological Forecasting - The Indian Scene
6.2.1 Use of Electronic Form
6.2.2 Technology Information Services
6.2.3 Patent Facilitating Centre (PFC)
6.2.4 Special Initiatives
6.3 Technology Vision for India upto 2020: Follow-up Action Teams
6.3.1 Nodal Points of Indian Prosperity
6.3.2 What was India supposed to do?
6.3.3 Research-High Performance Computing Facility (ICOSER)
6.3.4 HGT Programme
6.4 Technology Vision 2035
6.4.1 EDUCATION
6.4.2 URBAN INFRASTRUCTURE
6.4.3 GLOBAL RESOURCES
6.4.4 DEVELOPMENT POLICIES
6.4.5 ENVIRONMENT ISSUES
6.4.6 TECHNOLOGICAL SOLUTION
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6.4.7 ELECTRONIC COMMUNICATION

6.4.8 QUALITY RESEARCH

Learning Objectives
After studying this lesson, you should be able to:
 Understand the role, objectives, special initiatives and services rendered by TIFAC
 Know the vision of the Technology Information, Forecasting and Assessment Council
(TIFAC) for 2020
Learning Outcomes
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 concept of technology information, forecasting and assessment council
 recall activities of TIFAC
 identifying technological forecasting - the Indian scene
 analyzing technology information services
 explain technology vision for India up to 2020
 HGT Programme and explain technology vision 2035
Overview
In the previous lesson, you learnt about technology forecasting, its needs and the different
methodologies used such as Trend Analysis, Analogy, Delphi, Soft System Methodology,
Mathematical Models, Simulation, System Dynamic and S-curve.
TIFAC is an autonomous organization set up in 1988 under the Department of Science &
Technology to look ahead in technologies, assess the technology trajectories, and support
technology innovation by network actions in select technology areas of national importance.
In this lesson we will learn about role played by Technology Information, Forecasting and
Assessment Council (TIFAC) and its vision for India for the coming future. Also, will focus
upon the important role played by TIFAC

6.1 Technology Information, Forecasting and Assessment Council(TIFAC)

TIFAC is an autonomous organization set up in 1988 under the Department of Science &
Technology to look ahead in technology domain, assess the technology trajectories, and support
innovation by networked actions in select areas of national importance. TIFAC continues to
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strive for technology development in the country by leveraging technology innovation through
sustained and concerted programmes in close association with industry and academia.

TIFAC embarked upon the major task of formulating a Technology Vision for the country in
various emerging technology areas. Under the leadership of Dr. APJ Abdul Kalam, the then
Chairman of TIFAC, Technology Vision 2020 exercise led to set of 17 documents, including
sixteen technology areas and one on services. In more than 25 years of its service to the nation, it
has delivered number of technology assessment and foresight reports.
TIFAC, with the mandate to assess the state of the art technology, set directions for future
technological development in India in important socio-economic sectors. Leveraging its
knowledge networking capabilities, TIFAC have implemented a wide array of programs in many
technology areas. The Organisation has to play a major role in developing a strong foresight
framework and network for the country by carrying out foresight studies in crucial sectors of
national importance. Foresight activities are to be driven by factors like economic growth and
environmental issues.

6.1.1 Activities of TIFAC

TIFAC plays an important role in the country's technology space through technology foresight
exercises, technology information services and demonstrating models of technology
development through academia-R&D-industry interaction. In the process, TIFAC has shaped
itself into a vibrant knowledge network. TIFAC activities encompass a wide array of technology
areas and fill a critical gap in the overall S&T system of India through required technology
intervention. TIFAC also prepares Technology Impact Statements, with a view to uncover the
likely implications and consequences, both desirable and undesirable, of the existing as well as
newly emerging technologies upon society, indicating to decision-makers, through generation of
future-oriented scenarios, their short-4erm and long-term implications. TIFAC also has been
actively supporting innovations and innovative technologies through patent support or extending
soft koans. With a technology perspective, TIFAC assessed, evaluated and defined the impact of
the pandemic on Indian economy with a view to mitigate the widespread economic shock.
Towards such efforts, TIFAC released the White Paper on "Focused Interventions for 'Make in
India": post COVID -19". This white paper captured sector-specific strengths, market trends and
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opportunities in five (5) sectors, critical from a country's perspective that included healthcare,
machinery, ICT, Agriculture, electronics and manufacturing. with reference to supply and
demand, self-sufficiency and production capacity of technologies and products. In another follow
up report. TIFAC brought out the issues which needs to be addressed for AtmaNirbharta in the
API sector. Post-release of the white paper, TIFAC organised a series of brainstorming
workshops and prepared a comprchensive report titled "AAAN" as an Action Agenda for an
AtmaNirbhar Bharat This comprehensive action plan highlighted short medium and long- term
interventions in various identified sectors. The document defined overarching policy
recommendations with reference to technological inputs, focusing lowards Local to Global
thereby reviving Indian economy, in identified domains of Innovation and Technology
development, Technology Adoption Diflusion, Boosting up Manufacturing and Productivity,
Trade and Globalization, Internet Policy and Data Management & Education and Training All
these initiatives would give further momentum for AtmaNirbhart
During the year wenty patents have been granted the name ef various institutions facilitned by
PIC-TIFAC TIFAC impanolene year training so 110 women scientists on IPR under the KIRAN
IPR (WOSO lth Batch TIFAC has also facilitated startups and yoangentreprencun for sceling up
of indigenostexhnology innovations under TIFAC- SIDBI TechnokgyInnovtionPogramme
(Srjana. One of the companies supperted by Seijangt a contract fvemMs Serum Instute of India,
Pune for supply of Smgle Use Bircto for the prdation of Cevidieke vaccine and from M
haratBiteh Lad Hyderahad for manudacturing of Covanin vaccine. TIFAC also inititeda new
programme
on "Assessment of Technology Maturity for AatmaNirbharta (ATMA), which aims at
assessment of technology maturity and to create a technology portfolio. TIFAC has been
working with MSME clusters with R&D and technical support since last fourteen years towards
upgrading their technological capabilities. This year, TIFAC reached out to five new MSME
clusters across the country towards their comprehensive technology mapping namely Toys
Cluster, Channapatana, KatkhalSitalPati Cluster, Assam, recanut/Sal Leaf Plate Manufacturing
Cluster, West Bengal, Apparel Manufacturing Cluster, West Bengal, Fisheries and Food &
Spices Clusters, Manipur. TIFAC celebrated its 34th TIFAC foundation Day on February 10,
2021, during which two new initiatives of TIFAC-Shramik Shakti Manch (SAKSHAM-a
dynamic job portal for mapping the skills of Shramiksvis--vis requirements of MSM ES to
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directly connect Shramiks with MSMES and facilitate enrollment of 10 lakh blue-collar jobs and
SeweedProgramme for commercial farming of seaweeds and its processing for value addition
towards boosting national economy were launched by Dr. VK Saraswat, Chairman. For
harmessingtruc potential of seaweeds, TIFAC has initiated steps for commercial farming of
seaweeds and its processing for value added products in collaboration with the Ministry of
Fisheries, Gol. In another pioneering effort, TIFAC has undertaken to demonstrate and validate
the efficacy of new medical sensor devices towards tele-diagnosis. This project has been
launched in collaboration with IIT Madras Pravartak Technologies Foundation, Ministry of
Health & Family Welfare and C-DAC-Mohali. TIFAC has strengthened its international reach.
Recognizing the mutual benefits of scientific collaboration in a broad ficld of activities of global
concem and interest, TIFAC has taken up a few projects of strategic importance with the
International Institute for Appliod Systems Analysis (IIASA), Laseburg. Austria. To leverage the
International linkages, a collaborative programme between TIFAC and High School of
Economics, Moscow, Russia has boen signed to understand the SAT needs of India & Russia in
the area of science, technology and innovation policy, measurement and foresight, analysis of
innovation systems, RAD and innovation strategies, and developing a strategic partnership on thc
basis of equality. Further to emplhasize, TIFAC will contimue to proactively keep a close
technology watch kowards informing, assessing. prioritizing and nucleating requisite R&D
efforts towards making our country AtmaNirbhar

6.2 Technological Forecasting - The Indian Scene

Technology Forecasting as the name indicates, deals with the estimation of future growths/trends
in technology. This purports to answer questions like (1) What may happen to Indian steel
production in the year 2020? (2) What may be transportation modes available in the country at
that time? Technology forecasting is of recent origin and is useful for examining future choices
and making current decisions(which may influence the future) for an extremely wide range of
long term planning processes, be it national or regional planning, or organizational planning such
as corporate, or parts of it such as production planning and marketing planning.
Technology is an important change element, which brings about social and political changes in
the world at large. Since long range planning involves the consideration of national and
international economic, political, social forces in the future to come, technology forecasting is a
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vital tool in the hands of planners even at the micro-level of corporate production planning. For
instance a corporation making heavy machines or machine tools, or heavy electrical equipment
needs a long time horizon for its planning purpose. It cannot plan for a year or two but has to
plan for a longer period. Unless long range planning is done properly, the intermediate range or
short range planning will have only temporary and sometimes marginal beneficial effects.
Intermediate range planning has to fit into the framework of a long range plan and short range
planning has to be done within the framework of the intermediate range plan. For high
technology products, which need a long preparation or gestation time to become productive,
forecasting of long-range technology trends and developments is imperative.
Uses of technology forecasting:
Technology forecasting can give qualitative or probabilistic quantitative indications about future
developments in technology. This part of technology forecasting is termed Exploratory
Technology Forecasting and depends on the past and the present data for exploration of the
things to come in the future. An interesting fact to note is that there is a definite relationship
between the past, present and the future of technology developments, inspite of the so called
breakthroughs in the technology. In fact many of the so called breakthroughs are due to a
deliberate and consistent research effort and corresponding expenditure of finance and
manpower energies involved in the past. Many discoveries and developments in the field of
atomic physics and space research are really not breakthroughs in the real sense of the word
because they follow the continuous research efforts planned and deliberately helped by national
and international policies. This is borne out by the past continuous trends observed in the various
technological developments in the world such as: the increase in the efficiency of illumination,
increase in the use of artificial fiber as a substitute to natural fiber, the development of polymers,
increase in the use of synthetic detergents as a substitute to soaps and various such technological
developments. For this reason, exploratory forecasting is of much use in understanding future
technological developments, so as to be prepared with adequate production capabilities to cope
with future developments.
If the projection given is combined with the projections of hydel and thermal power availability
and the availability from non-conventional sources of energy and conservation, it throws light on
the necessity of nuclear power generation as well as various controversial issues such as the
nuclear power plant at Kaiga, Karnataka.
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Another aspect of technology forecasting is called Normative Forecasting. This follows from the
long term future backwards. For instance, one may project the requirements /objectives and goals
of a nation, or of an organization, and from this deduce what technology might be required to
achieve these targets. From the very long term future, we plan technological requirements for the
long term future, and for the intermediate term future.
6.2.1 Use of Electronic Form
Electronic forms, also referred to as e-forms, are not new, but there are many businesses and
organizations that still use paper forms. Many forms are prefilled, printed, and then used to
record a signature. Some companies use a word-processing program to create a fillable PDF and
end up printing the form to retain a paper document. These are not e-forms!
It’s time to abandon paper forms and switch to electronic forms. Here are 10 reasons why your
organization needs to make the change.

Electronic Forms Cut Cost

According to AIIM, the average cost to process a simple paper form is $4.56. Let’s do some
math. If you have five people who handle five forms each day during a five day week, that’s 125
forms at a cost of $570 per week or $29,640 per year. Complex forms cost much more.
According to a recent study, companies in the U.S spend annually more than $120 billion on
paper forms, and most forms are outdated within three months. Electronic forms dramatically
reduce these costs.

Electronic Forms Eliminate Paper

It should go without saying that a switch to electronic forms will eliminate paper. One recent
study shows that the average office worker uses 10,000 sheets of copy paper every year, but
there’s more to this than cutting an organization’s carbon footprint. The true cost of paper isn’t
the cost of the paper itself, but the costs associated with handling the paper, including printing,
capturing, distribution, storage and retrieval. Eliminating paper from the start can have a huge
impact.

Electronic Forms Simplify Document Sharing

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Paper forms are a pain to route. Often the form needs to be copied or scanned so multiple
individuals, groups and department have access to the information on the form. Sometimes
forms end up buried on someone’s desk or are misplaced, which makes timely sharing
impossible. If the information on the form is important enough to be on a form in the first place,
it needs to be in a format that allows for easy document sharing with the ability to control access
and security.
Electronic Forms Enable Remote Access
Sure, paper forms can be scanned and emailed, but electronic forms are inherently easier to
access remotely using any device. More importantly, the access can be easily controlled –
ubiquitous access doesn’t equate to open access as document security is managed with a few
clicks. With the distribution of work to remote, non-centralized locations, the ability to provide
for secure, remote anytime, anywhere access to forms is essential.

Electronic Forms Ensure Data Accuracy and Integrity

It’s easy to make a mistake on a paper form, and it’s easy to err during data entry. E-forms allow
for data validation to ensure the information that’s being captured is in a valid format (for
example, telephone and email information). Electronic forms also allow for automatic
formatting and calculations, further reducing errors. Form fields can be integrated with current
databases for synchronization, ensuring the right data is flowing where it needs to go.

Electronic Forms Integrate with Other Business Platforms

A form is not an island, but paper forms often end up looking like the Florida Keys – scattered
and loosely connected. E-forms can be easily integrated with other business platforms, including
HRIS, ERP and accounting platforms from companies such as Microsoft, Info, Sage, SAP and
Epicor. Business uses might include purchase orders, sales orders, contracts, student records,
patient records, HR onboarding and employee information, and the like. Related forms can be
bundled together to form a document package so the forms can be gathered, grouped, reviewed,
approved, and distributed quickly and easily in a consistent and accurate process. The forms
reside in the enterprise content management platform but are synchronized with the appropriate
business platform and databases.
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Electronic Forms Are Auditable

Forms typically pass through many hands, and some of these are making changes to information
collected. Who sees the form and what changes were made can be extremely difficult to track
using paper forms or scanned documents. E-forms are trackable – you can see who has viewed
the form and if any changes have been made to the data. If the form is part of a process, you can
quickly see where the form is in the process, and report on its status. Try doing that with paper!

Electronic Forms Are Legally Binding

Electronic forms are legally binding, and in most countries, e-signature is the same as a written
signature.
In the United States, the Electronic Signatures in Global and National Commerce (ESIGN) Act
of 2000 granted legal recognition of electronic signatures if all parties to a contract choose to use
electronic documents and to sign them electronically. This applies to virtually all uses. The
European Union and the United Kingdom have similar regulations as well. In most countries,
electronic signatures are treated the same as a written signature. Electronic forms are easy to
distribute, easy to sign and easy to verify; this is all done securely with advanced safeguarding to
prevent fraud and misrepresentation.

Electronic Forms Enable Real-Time Workflow Integration

This is perhaps the best reason to switch from paper to e-forms. Electronic forms allow for
automated notifications of workflow assignments to ensure faster, more efficient processing
across every department. Paper forms simply do not offer this. Real-time workflow integration
streamlines the entire document management process, and secure, remote anytime, anywhere
access ensures that forms are getting to the right people, no matter where they’re located or how
they chose to connect.

Electronic Forms Deliver a Quick ROI

Add up all the reasons to switch, and you’ll find that e-forms will deliver a quick ROI. Some
businesses look at the cost of the switch and balk, but they’re not looking at the true cost of
document management and all the benefits that electronic forms offer. Electronic forms increase
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data and workflow visibility, shorten cycle times, improve service and eliminate paper and
paper-related expenses. That adds up to a real ROI, real fast.

Where can Electronic Forms be used?

When thinking about how your organization collects data, there are likely opportunities
everywhere to embrace eForm technology.
Here are just a few examples of how you can benefit from using eforms and some of the types of
forms that could be used.
 Accounting: Use for Purchase Orders, Expense Reports, Capital Expenditure Requests,
Mileage Reimbursement.
 Human Resources: Use for Position Changes, I-9, Vacation Requests, Time Sheets,
Employee Reviews.
 Engineering: Use for Defect Tracking, Engineering Change Orders, Product
Enhancement Requests.
 Manufacturing: Use for Employee Training Certification, Safety Inspections, Document
Change Requests, Quality Assurance Variances.
 Customer Service: Use for Survey forms, Customer Warranty Requests, Requests for
customer service, incident reports.

6.2.2 Technology Information Services

The Technology Information Services are an important part of TIFAC’s Vision 2020programme and
crucial to its role in the technology sector. They help in thefollowing:
TIFAC Library
TIFAC Library was set up to make the flow of scientific and technicalinformation easily through the
formal channel, and has continued to support theenhanced requirement of scientists and users. In
addition, 56 journals includingspecialized serials have been subscribed.
TIFAC News
With a view to disseminate information on the various activities of TIFAC,three issues of newsletter
have been brought out. The circulation of thenewsletter is
6.2.3 Patent Facilitating Centre (PFC)
The PFC continued its efforts towards meeting its objectives and theachievements during the period
are given below.
IPR Bulletin
These bulletins inter alia covered WTO’s third Ministerial Conference, patentlaws of Norway,
litigation in patents, different case laws, Indian universities inpatent filings, patenting of display
devices and few case studies based onpatents awarded in different areas. A case study based on US
patent granted toan anti-diabetic herbal drug based on karela, jamun and brinjal was published inthe
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bulletin. This attracted a lot of media attention and public interest andresulted in healthy debates at
various forums.
Patent Awareness Workshops
Conducted IPR/patent workshops during the period through which more than 900scientists and
technologists were sensitized.
Patent Searches
PFC has provided patent search services to a large number of users fromuniversity, R&D institutions,
government departments and private industryever since the activity was started in the middle of
1996.
Hardware and Other Facilities for Patent Search
CD-ROM databases for bibliographic/abstract searches on patents issued byUS Patent Office,
European Patent Office and the PCT applications wereupdated. A new system with advanced
features and a scanner were installed forscanning, internet searches and patent searches. Internet was
extensively usedfor conducting searches and obtain information on patents granted published inother
countries, details of the International Deposit Authorities (IDAs) underthe Budapest Treaty, details
from American Type Culture Collection (ATCC)and the likes.
Special Reports/Publications
The PFC has been bringing special reports and publications for awareness, forshowing how patent
information could be used for technology forecasting andR&D decisions, licensing of patents etc.
Special studies and reports weregenerated by the PFC. Just last year, the Ministry of Environment &
Forests hadawarded a study on “Patenting in Micro-organism” to PFC and had providedpartial funds
for the same.Extensive studies and analyses of patent laws in respect of microorganismranging
around 10,000 patents were granted in US and Europealone and responses sent by 23 countries to a
structured questionnaire weremade.The report has four volumes namely, Executive Summary, Patent
Laws &
Practices, Deposit Mechanisms & Examination Standards and Case Studies.
Counselling and Advisory Role
PFC has become a referral point for industry, universities, governmentagencies, NGOs, foreign
embassies and individual scientists, innovators andconsultants, for information and advice on IPR
related matters, especially up to date patent information. In the process, PFC was instrumental in
generatingcritical inputs including conceptual framework, actual patent data, analysis,etc., for
decision making, policy formulation and future planning at thenational level in the area of IPR and
related matters. Many of the governmentagencies namely DAE, ISRO, ICAR, ICMR and BHEL
approached PFC forspecific inputs and organized patent awareness workshops with technicalsupport
of the PFC.

6.2.4 Special Initiatives

Strategy Paper on Non-ferrous Metals: TIFAC-Indian Institute of Metals(IIM) Joint Project
TIFAC & IIM have to prepare ten techno-commercial reports on all-importantnon-ferrous metals. So
far, four reports (Aluminium, Copper, Magnesium,Titanium) have been released. The reports on
Niobium, Molybdenum,Tungsten, Rare Earths etc. have been completed by March 2000.
Surface Engineering
As a result of initiatives taken by TIFAC earlier in the field of SurfaceEngineering, several industries
have taken lead in setting up new projects likedevelopment of Diamond like coatings using PVD,
coating by D-Gun,Titanium Nitride coating by PVD, Plasma coating of Ceramics on
Hydroturbinecomponents. These projects have been funded under variousmechanisms of TIFAC,
DST etc. User awareness and propagation ofknowledge on this emerging area is being continued by
TIFAC through
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lectures, articles (a cover story was published on this technology in MM-TheIndustry Magazine this
year).
Special Initiatives on Materials: Steel
Major initiatives taken on Steel sector by TIFAC earlier have led toformulation of a large number of
R&D projects, which are now beingconsidered by Ministry of Steel for funding. TIFAC is a member
of theEvaluation Group set up to review and recommend proposals. During the pastone year, this
group has reviewed around 48 proposals, related to emergingtechnologies in the Iron and Steel
sector. Out of these, the EmpoweredCommittee of the Ministry of Steel has approved 20 proposals
(Total value:149 crore, out of which Steel Development fund contribution is ` 79 crore).
Interaction with International Agencies
TIFAC as a nodal agency for S&T cooperation with ASEAN countriesparticipated in the third
ASEAN-India Working Group meeting on26 and 27th August 1999 at Jakarta, Indonesia. TIFAC
also participated in thesecond, ASEAN-India Working Group meeting on Science &
Technology(WGST) which was held at Singapore on 25-26 October 1999. An
eightmemberdelegation of scientists from India attended the meeting.
Fuel Pellets from Municipal Solid Waste (MSW)
This is a DST-CMC Technology executed by TIFAC through Andhra PradeshTechnology
Development & Promotion Center (APTDC), a joint project ofTIFAC, CII & Govt. of Andhra
Pradesh. One technology project formanufacturing Fuel Pellets from MSW has been executed at
Gundumguda;
Hyderabad in Phase I. This plant is under commissioning/trial stage. In PhaseII an electrical power
generation plant using the Fuel Pellets would becommissioned. The plant will process about 1000
Tons per Day (TPD) ofMSW with a yield of about 200 TPD of Fuel Pellets which in turn
wouldgenerate about 8 MW of electricity in Phase II. The Fuel Pellets also known asRefuse Derived
Fuel (RDF) having a calorific value of about 3500 Kcal/kg,could be used to generate steam for use in
Industrial boiler as well as togenerate electricity. A number of Indian and Foreign companies have
showninterests in this technology. Recently one request about this technology hasbeen received from
one Sri Lankan Company.
Hydrogen Technology Cell
A Hydrogen Technology Cell (HTC) of TIFAC has been approved with anobjective to make a
special initiative to embark on a series of studies andtechnology developmental pursuits for ushering
in Hydrogen economy in thecountry on a programmatic approach. Developing information up
dates,creating knowledge networks, building up local capacity for technology andhuman resources
development, facilitation of resources development andinnovative financing of new technologies and
organizing regular awarenessprogrammers are some of the immediate activities taken up by the HTC
ofTIFAC to make a beginning and gain a foot hold in opening up anenvironmental friendly era in the
next millennium.
Energy Tower Project
The principal concept is to cool the hot and dry air of desert by a fine spray ofwater within a tall and
large diameter shaft where the higher density cooleddownward air flow reaches high velocity and
actuates turbine to generateelectricity. TIFAC is studying the project with an experienced
international
group of technology.
Government/Industry Cooperation in Cartography
The Special Core Group constituted under the Chairmanship of Secretary DSTand Director
(NATMO) as Member Secretary in March 1997 has submitted itsreport on “Government-Industry
Cooperation in Cartography”. The reportgives an account of the Indian cartography in last fifty years,
the current statusof cartography in government sector and the industry, the technologicalscenario,
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Indo-foreign co-operation, strengths and weaknesses in governmentand industry.The report also

includes several recommendations for improved cooperationbetween government and industry.
Assessment of Innovation Potential of Students Practical Projects fromProfessional Colleges
TIFAC has signed a MoU with Indian National Academy of Engineering(INAE), New Delhi for
carrying out a Pilot Study and collection of data onstudent projects. The study, which is to cover
professional engineeringcolleges, has already started and data on student’s projects is being collated
by INAEto assess their innovation potential. These reports are to be circulated by INAE toselect
industries and research laboratories.
Interactive S&T Promotion
In order to promote Science & Technology awareness in schools and colleges,along with IT based
learning at homes, schools and colleges, TIFAC andVigyanPrasar have undertaken a joint project to
develop an IT based model. Themodel uses CHOIS Server technology developed by M/s Innomedia
Technologies Pvt. Ltd. Bangalore.The CHOIS Server is placed at the cable head-end and allows
distribution ofinteractive TV services over the Cable TV Network. This project proposes toextend the
CHOIS Server for the educational needs and S&T promotionalactivities. The project has already
begun with one server and the initial phaseof building a replication model for this technology is
being experimented withone school.

6.3 Technology Vision for India up to 2020: Follow-up Action Teams

India Vision 2020 was initially a document prepared by the Technology Information, Forecasting
and Assessment Council (TIFAC) of India’s Department of Science and Technology under the
chairmanship of Dr. A P J Kalam and a team of 500 experts. The plan is further detailed in the
book India 2020: A Vision for the New Millennium, which Dr. A P J Abdul Kalam coauthored
with Dr. Y.S. Rajan.
In their work, the authors have discussed various important aspects that can lead India to
become developed nation by 2020. The discussions have been made under the titles
1. Can India Become a Developed Country
2. What other countries Envision for Themselves
3. Evoultion of Technology Vision 2020
4. Food, Agriculture and Processing
5. Materials and the Future
6. Chemicals Industries and Our Biological Wealth
7. Manufacturing for the future
8. Services As People’s Wealth
9. Strategic Industries Health Care for All
10. The Enabling Infrastructure 217
11. Realizing the Vision
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Some of the major Challenges for India for then were

• A targeted approach to bring millions of families above the poverty line.
• Generation of nearly ten millions of new employment opportunities per annum, especially
for those in the lower income groups.
• Eradication of illiteracy.
• A concerted effort to raise primary and secondary enrolment rates and minimize dropouts.
• Improved public health to reduce infant mortality and child malnutrition.
• Massive investment in power generation, telecommunications and other physical and social
infrastructure.
• Accelerated acquisition of technology capabilities to raise productivity in agriculture,
industry and services.
• Becoming a more important player in the world economy in terms of both trade and
investments.

NODAL POINTS OF INDIAN PROSPERITY 1. Peace, Security & National Unity – Physical
security both from external and internal threats—strong national defence, domestic law
enforcement and social harmony. 2. Food & Nutritional Security – A vibrant, highly productive
commercial farm sector that can ensure food & nutritional security, generate employment
opportunities, stimulate industrialization, and produce renewable energy from biomass and fuel
crops. 3. Jobs for All – A constitutional commitment to ensure the right of all citizens to a
sustainable livelihood that will provide them with the purchasing power needed to freely cast
their economic votes in the market place. 4. Knowledge – 100 per cent literacy & school
education, and vocational training for all new entrants to the workforce, to equip youth with the
knowledge and skills needed to thrive in an increasingly competitive world: adult education
programmes to compensate working age school drop-outs for the lack of education, and
continued investment in science and technology to improve productivity, quality of life and the
environment. 5. Health – Expansion of the infrastructure for public health and medical care to
ensure health for all. 6. Technology & Infrastructure – Continuous expansion of the physical
infrastructure for rapid low-cost transportation and communication that is required for rapid
economic growth and international competitiveness. Application of computers to improve access
to knowledge and information, and increase in the speed, efficiency and convenience of activities
in all fields of life. Globalization – Successful integration of India with world economy. 8. Good
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Governance – Farsighted and dynamic leadership to maximize national prosperity, individual

freedom and social equity through responsive, transparent and accountable administration that
removes all the bottlenecks to economic development. 9. Work Values - Activation of all these
nodal points requires firm and determined adherence to high values, including prompt decision-
making, disciplined execution, systematic implementation, finely tuned co-ordination, unceasing
effort and endurance.

WHAT was India supposed to do?

The following objective was to be set in the minds of every Indian. If we are aiming to be a
global economic superpower then it is not a game of one-up-man ship for India. It is important to
ensuring stability, progress and prosperity in a rapidly changing strategic through global
landscape.

The level of achievemen through mission 2020:technology Vision for India up to 2020 is now
known to all of us. Currently TIFAC is planning for a mission 2035 which is still under
construction. Let us hope the plan helps elevates India to a new height.

Research-High Performance Computing Facility (ICOSER)

A supercomputing environment was developed for high performance computing in field of
agricultural bioinformatics and computational biology under NAIP funded project Ëstablishment
of National Agriculture Bioinformatic Grid (NABG) in ICAR”. The supercomputing hub
consists of hybrid architechture of high performance computing with 256node Linux cluster with
two masters with 3072 cores and 38 Tera flops computing power at IASRI, New Delhi alongwith
1 node Linux cluster and one master with 40 TB storage at ICAR-NBAIM, Mau and other
Bureaux.
The supercomputing facility at ICAR-NBAIM namely ASTHA ( Advanced Supercomputing
Technology Hub for Agriculture ) was inaugrated by the then honable DDG (CS), DrSwapan K
Datta on 27.12.2014. A number of computational biology and bioinformatics softwares,
workflows and pipelines along with National Biological Computing Portal are being deleoped to
provide seamless access of Biological Computing resources for Biological researchers across the
country.
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6.3.5 HGT Programme

The Home Grown Technology programme started in 1992, is one of the earliest
initiatives in the country for supporting scale-up of technology from laboratory to pilot or semi-
commercial stage.
TIFAC continued the programme till 2005 and supported 76 projects. Three types of
projects were supported under the programme: industry supported pilot implementation at R&D
institutes, collaborative developments by industry and R&D institute and in-house developments
by industry.
The programme set up one of the earliest model in the country for collaborative
technology development involving academia/ R&D institute and industry. It also succeeded in
promoting among the small and medium enterprise, the culture of venturing into new technology
fields.
Wide spectrum of technologies including chemicals, medical science, surface
engineering, materials, electronics, manufacturing, environment friendly technologies and value
addition to natural products were developed under this programme.
Some of the many successful developments are HFC-134a(refrigerants),
chlorpyriphos(pesticide), Rapid Diagnostic Kits for poultry and cattle, Detonation Spray Gun for
surface coating, 3,5 xylenol, standardized natural dyes, Omega-3 fish oil, plasma pyrolysis of
medical waste, gallic acid, haemoconcentrator, low molecular weight heparin, probiotics,
electronic module for intermittent wiper, heat pipe based heat sinks, power electronics products
for power sector, Clinical Decision Support System etc.
The programme helped several start-up companies and first generation entrepreneurs to
establish themselves based on innovative technologies.
The programme had a total outlay of Rs. 34 crore. A sample survey conducted in January
2012 among a basket of 15 projects showed that these projects achieved a total turnover of about
Rs. 780 crore and tax/ excise duty paid to the government over the years from these projects has
been about Rs. 80 crore so far.

6.4 Technology Vision 2035

 TECH NOLOGY IS ONE OF THE KEY DRIVERS for empowering individuals,
societies and countries. Technologies that facilitate development in all its dimensions and
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enhance human capabilities are of particular importance. This is of even greater

significance for our country with its handsome demographic dividend. It is imperative
that we embark upon an exercise to explore technological possibilities to attain our
development goals taking into account new opportunities that we have in the emerging
knowledge economy era. While doing so we should set our eyes even on new technology
paradigms that might appear in the future and the game changing impact that some of
them could offer. A technology vision exercise is thus aimed at capturing possible
technology-society horizons through a comprehensive involvement of different
stakeholders. Such an endeavour was undertaken by TIFAC in 1996 with a view to
sketch the scenario as of the year 2020. Decade and a half down the line, it is important to
repeat such an exercise to review the actual state of play and take into account new
possibilities and challenges that would take the country to the year 2035. Hopefully, such
rolling exercises would enable a more calibrated approach to evolution of technology
related national planning process. This is essential as new discoveries, innovations in
techno-socioeconomic space and international dynamics in a highly competitive
environment could significantly alter the evolution of technology. Broadly speaking, the
key challenges before India are the following:
o DEVELOPMENT: Enhancing its pace in a manner that leads to greater happiness
all around us.
o EMPOWERMENT:Empowering our youth to embrace emerging knowledge
based globalized economy in the most competent manner possible.
o INCLUSIVENESS: Bridging the divide by accelerated inclusive access to the
process of empowerment of the lower layers of the socioeconomic pyramid.
o SUSTAINABILITY: Ensuring equitable access to the use of rapidly depleting
natural resources or newly discovered substitutes in a sustainable manner while
keeping in mind the increasing demands of the large population.
o ENVIRONMENT:Ensuring quality environment (air, water, soil and biodiversity)
by synergising development and environmental enrichment. While age-old human
needs like food, water, healthcare, communication and energy have to be kept
uppermost in mind for Indians in 2035 other aspects of development such as
education, habitat, materials, manufacturing, infrastructure, transport and
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environment also assume considerable weight. Further, since impact of

technology depends on the people harnessing it, particular attention would have to
be paid to nurturing human resource appropriately. Articulating some perspectives
may be useful at this stage

6.4.1 EDUCATION: Education being the key to empowerment of people, we have to enhance its
quality and make it accessible to all. We need to prepare our youth to be effective and
beneficiaries of the emerging A3 (Anyone, Anytime and Anywhere) society. Deployment of
ICT, with the emergence of low cost knowledge access devices and rapidly expanding broadband
connectivity, should make it possible for all learners throughout the country including in rural
domains to access high quality education. Large scale participation of teachers and other experts
in this process should raise the quality of our education to global levels. This can indeed lead to a
paradigm shift in a more or less non-intrusive manner. While ICT has the ability to transform
quality and reach of education, it also broadens the horizons of individuals by bringing different
cultures closer together. Emphasis on value education, pride for one’s cultural identity while
respecting other cultures and deeper engagement towards achieving higher goals is equally
necessary during the formative years of students in order to prevent their undesirable drift as a
consequence of the new found liberal environment.

6.4.2 URBAN INFRASTRUCTURE: Urban infrastructure is groaning under continuous and

large increase in population caused by migration from the hinterlands. A major cause for this is
growing non-viability of agricultural enterprise coupled with lack of adequate livelihood
opportunities in rural areas. Leveraging new knowledge and technology to spur economic growth
in rural areas can mitigate this situation by providing new livelihood opportunities and urban
amenities to rural population. This could make it attractive even to a section of urbanites inclined
to rural habitation. To ensure that the technologies are appropriate to local needs and remain
competitive, it is important to link implementation of such technologies along with requisite skill
training, with a live knowledge/ research domain, active right in the rural area itself. Setting up
100 such Integrated Education, Research and Development Complexes (IERDC) where the best
of researchers engage in addressing problems of the neighbourhood and engage in skill,
technology and entrepreneurship outreach in the surrounding area can bring about radical
transformation while enriching local human resource.
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6.4.3 GLOBAL RESOURCES: We should rightfully have access to global resources

commensurate with the fraction of world population that we constitute. Given our demographic
advantage and the potential to enhance human capability, we could perhaps do with less
provided we leverage appropriate technology. Such knowledge empowered wiser society, can
adopt a more balanced lifestyle with concomitant increase in our happiness quotient. However,
our large development deficit as of now cries out for a rapid economic growth even as we exploit
our resources, material and human alike, without endangering our environment. This necessitates
defining long term strategies and equipping ourselves with necessary technological capabilities.
For example, gas hydrates are a major energy resource for India. Our ability to exploit this
resource on a large scale could make a significant difference to our energy security. Seen in the
context of threat to climate change, a quick look at our energy resources and requirements in the
long term would reveal that we must focus on solar energy and energy from Thorium for
securing our sustainable energy future. Here again both require significant India specific
technologies needing large scale indigenous technology development effort. Our R&D
infrastructure and its linkages with industry should therefore be configured to achieve such an
objective. We should also target reaching a significant fraction (say 50 %) of electricity supply
coming from non-fossil sources like renewable (hydro included) and nuclear energy by the year
2035. To ensure our long term energy resource security, our effort to develop fusion energy and
our participation in the International Thermonuclear Experimental Reactor is of crucial
importance. Search for better resource use efficiency including need for technology shifts is
another area that needs attention. For example, greater use of DC appliances in light of expected
large scale growth in roof top solar generators could lead to significant energy savings and also
cost saving in the long run. Similarly, there are possibilities for exploiting our large scale
Ilmenite deposits as well as liquidating red mud dumps to produce titanium, steel and other
outputs in a more competitive way with reduced environmental burden.

6.4.4 DEVELOPMENT POLICIES: Our development policies have to be holistic in nature as

they often impact more than one sector at the same time. Demand/supply dynamics of any one
sector cannot be the sole factor in devising policies as they impact those in another and vice
versa. For example, supply of unmetered electricity for agriculture has led to over exploitation of
ground water and higher tariff for industry. Instead, promotion of standalone solar powered
pumps could correct the situation on both counts with significant gains in terms of carbon
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emission, conservation of ground water and competitive industrial production. Similarly, there
are opportunities to promote solar lights in areas where grid electricity has not yet reached and
save on corresponding use of kerosene and a substantial part of related subsidy. Proper
management of bio-degradable urban and rural waste can lead to lowering methane emission,
environment friendly energy, enriching of soils through replenishing carbonaceous matter and
reduced public health management burden. In the context of the need to grow manufacturing
sector, we need to shift emphasis away from personalised vehicles running on fossil fuels to
defence manufacture and manufacture of mass transportation systems that are resource efficient.
Likewise greater thrust should be given to enhancing railway track density before adding to the
train density. A number of Defence Economic Zones (say six) that can cater to around 80% of
defence equipment produced indigenously, each linked with a knowledge domain (institution
engaged in PhD level research) leading to unprecedented innovation environment, could lead to
large scale boost to growth in GDP and reduction in current account deficit. To enable such
holistic approach to policy making, a process based on a comprehensive understanding of cross
cutting issues involving multiple concerned departments in the decision making process would
need to be evolved.

6.4.5 ENVIRONMENT ISSUES: Environment issues are often seen as impediments to project
development. We need to recognise that growing population and consumption would lead to ever
increasing environmental burden. On the other hand a properly conceived development project
with due attention to minimising environmental impact could lead to wealth generation, some of
which could be utilised towards enriching the environment. Environmental appraisal of a
development project should thus be based on comparing a do nothing scenario that would
invariably lead to some degradation of environment, with the environmental impact of the
proposed project and a demonstration of net benefit to environment.

6.4.6 TECHNOLOGICAL SOLUTION: While the actual choice of a technological solution

would be dictated by expectations and aspirations of society at large and also by considerations
of cross cutting issues, one must be on the lookout for new technological possibilities that may
appear on the horizon as a result of ongoing open ended research. There are several instances in
the past when major paradigm shifts have taken place following adoption of such game changing
technologies. Ability to be ahead of others in such areas would determine our competitive edge
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on the global stage. While one can never be sure of how the future would unfold, sustained
efforts in some of the emerging areas of scientific research such as nanoscience, 3D printing,
new materials and tailored precision processing, biological manufacturing, hand held devices
could lead to very desirable outcomes.

6.4.7 ELECTRONIC COMMUNICATION: As we enter the ICT age, wide scale use of fast
electronic communication systems, for accessing and exchange of information and data as well
as for a variety of transactions, has resulted in complexities in the cyberspace leading to regional,
national and even global security threats. Development of relevant security related technologies
that are free from vulnerabilities is thus extremely important. National security issues today arise
not just from economic and military strength as perceived by adversaries but also from ethnic,
religious and ideological conflicts, trade and economic conflicts, potential misuse of
technologies during inter personal conflicts and other such factors. Additionally there are global
dimensions to security issues which include those arising out of transnational, trans-cultural and
non-state actors. Technological solutions meeting these multifarious security requirements would
also have to ensure that justice and privacy for all individuals and the society are not
compromised. While all these issues of national security are discussed at some length in this
document defence related technologies are not covered as a part of conscious decision.

6.4.8 QUALITY RESEARCH: Quality research, that pushes the knowledge frontiers forward
and explores potential applications, should be a part of a conducive innovation ecosystem that
links it to entrepreneurs and industry/society on one side and young students on the other.
Nurturing industry institute interaction in a variety of ways such as; joint problem solving,
participation in teaching/ learning and industry research park located on the institution campus
with structured opportunities for participation of faculty and students, is thus of crucial
importance. Incentivising industry to leverage such an ecosystem to develop new products
should be part of the strategy to accelerate national technology capability build up. MSMEs have
contributed significantly to employment generation as well as exports. Most of these units are
not in a position to invest in R&D. As a result, they run a risk of obsolescence and loss of
competitiveness. Linking them up with knowledge institutions could lead to a win-win situation.
Twelve sector specific committees have discussed their perceptions as well as inputs
collected/received pertaining to their sectors and come up with detailed reports. They along with
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this main document constitute Technology Vision 2035. The entire activity was overseen and
guided by a national apex committee.

Summary
 TIFAC is an autonomous organization set up in 1988 under the Department of Science &
Technology to look ahead in technologies, assess the technology trajectories, and support
technology innovation by network actions in select technology areas of national
importance.
 In 1993, TIFAC embarked upon the major task of formulating a Technology Vision for
the country in various emerging technology areas: Technology Forecasting (TF),
Technology Assessment (TA) and Techno Market Survey (TMS) Studies
 PFC has become a referral point for industry, universities, government agencies, NGOs,
foreign embassies and individual scientists, innovators and consultants, for information
and advice on IPR related matters, especially up to date patent information.
 As a result of initiatives taken by TIFAC earlier in the field of Surface Engineering,
several industries have taken lead in setting up new projects like development of
Diamond like coatings using PVD, coating by D-Gun, Titanium Nitride coating by PVD,
Plasma coating of Ceramics on Hydro- turbine components.A Hydrogen Technology Cell
(HTC) of TIFAC has been approved with an objective to make a special initiative to
embark on a series of studies and technology developmental pursuits for ushering in
Hydrogen economy in the country on a programmatic approach.TIFAC is studying an
eco-friendly concept of generating clean electrical energy from the atmospheric wind by
artificially manipulating its humidity and thermal gradients and is conducting the project
with an experienced international group of technology.
 As a part of its Technology Vision 2020 Bihar has undertaken a detailed study on
benchmark Survey for the project “A Systems approach to agricultural production for
increasing production in low productivity regions” was carried out. The work included
identification of villages, soil testing and analysis, water management plans and
strategies.
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 The Project “Improvement in Milk Quality & Yield through better Farm Management”
has been approved. The project envisages better farm management practices, use of
milking machines, use of bulk coolers and training of extension officers and farmers.
 Technology Vision 2035 would take into account our capabilities and competitiveness,
accommodate regional aspirations, priorities & disparities and placed as a referential
document.

Keywords
 Intellectual Property Rights (IPR): Intellectual property rights are the legally recognized
exclusive rights to creations of the mind. Under intellectual property law, owners are
granted certain exclusive rights to a variety of intangible assets, such as musical, literary,
and artistic works; discoveries and inventions; and words, phrases, symbols, and designs.
 Refuse Derived Fuel (RDF): Refuse derived fuel is a fuel produced by shredding and
dehydrating solid waste with a waste converter technology.
 Cable TV based Home and Office Interactive Service (CHOIS): Cable TV based Home
and Office Interactive Service is a server technology developed at Innomedia, Bangalore
with the aim to provide information on demand
 Home Grown Technology (HGT): It is a programme implemented by TIFAC and was
designed to focus on supporting the Small and Medium-Sized Enterprises (SME)-led
technology efforts.
 Enzyme Linked Immunosorbent Assay (ELISA): Enzyme Linked Immunosorbent
Assay is a test that uses components of the immune system and chemicals to detect
immune responses in the body, for example, to infectious microbes.

Self-Assessment Questions
Short Answer Questions
1. Why was TIFAC set up?
2. What are the main objectives of TIFAC?
3. What are the three major technology missions being implemented by TIFAC?
4. Describe the role performed by PFC.
5. Explain the technology information services.
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6. How many people contributed in the vision 2020?

7. Why was Hydrogen Technology Cell (HTC) set up?
8. Describe the Energy Tower Project undertaken by TIFAC.
9. What is the purpose of CHOIS Server?
10. Describe the plan formulated for Orissa as a part of Technology Vision 2020 for India.
11. How would the milk sector be improved as a part of Agro Food Processing?
12. Describe the aim of ICOSER project.
Long Answer Questions
1. Give a detailed background of TIFAC along with its vision and purpose.
2. Describe the role performed by the Patent Facilitating Centre.
3. Describe the special initiatives undertaken by TIFAC in detail.
4. What is the Technology Vision 2020 for India by TIFAC?
5. What is the ICOSER project?
6. Explain in detail the HGT programme of TIFAC.
7. Summarize the vision 2035 by TIFAC in your words.
8. Discuss in detail any one project undertaken by TIFAC.

Further Readings
Graynor, Gerard H., (2007), Digital, Handbook of TechnologyManagement, McGraw Hill
Khalil M., Tarek., (2009), Management of Technology, McGrawHill
Khurana, Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009),Management of Technology, HPH
Narayanan V.K., (2009), Managing Technology and Innovationfor Competitive Advantage, Pearson
Publishers
Szakonyl, Robert, (2008), Handbook of Technology Management,Viva Books Private Limited
White, (2007), The Management of Technology & Innovation,Thomson Publishers
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LESSON 7 - DISSEMINATION OF TECHNOLOGY

CONTENTS
7.1 Dissemination of Technology Information and Strategic Planning
7.1.1 Development of Technology Demonstration and Dissemination System
7.1.2 Objectives of Technology Dissemination System
7.1.3 Methodology of Technology Dissemination
7.1.4 Strategic Planning
7.2 Technology Choice and Evaluation Methods
7.2.1 Choice of Technology in Small-scale Enterprises
7.2.2 Problems in Small Enterprises
7.2.3 Factors Influencing the Choice of Technology by SSEs
7.2.4 Problems Hindering the Effective Choice of Technology by SSEs
7.2.5 Policy Implications
Learning Objectives
Learning Outcomes
Overview
LEARNING OBJECTIVES
After studying this lesson, you should be able to:
 Comprehend the dissemination of technology information and its strategic planning
 Understand technology choice and the different evaluation methods
LEARNING OUTCOMES
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 dissemination of technology information and strategic planning
 explain objectives of technology dissemination system
 recall methodology of technology dissemination
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 technology choice and evaluation methods

 determine technology evaluation centre assessment format
OVERVIEW
In the previous lesson, you learnt about the role played by the Technology Information,
Forecasting and Assessment Council (TIFAC).
The technology information management (procurement, storage and delivery) requires software
development and computer aided presentation. The system when developed and used as an
outsourcing centre on regular basis can be a source of information about traditional technologies
and other various technologies given by different technology transfer organisations, national and
international.
In this lesson we will learn about the dissemination of technology information and strategic
planning as well as the technology choices and the evaluation methods used to evaluate them

7.1 Dissemination of Technology Information and Strategic Planning

Technology transfer and diffusion are two aspects of technology dissemination, which is
the process by which innovations are transmitted from donor to receiver. Technology transfer
involves communication between a specific donor and a specific recipient or group of recipients.
In technology diffusion, the donor is not necessarily aware of who the recipients may be.
Technology itself can take the form of an object (“material technology”) or a concept or
technique (“social technology”). Technology transfer is a major component of international
policy — military policy, trade policy, and humanitarian policy are three spheres in which it
operates.
7.1.1 Development of Technology Demonstration and Dissemination System
Development of Technology Demonstration and Dissemination System is a project work
jointly funded by Department of Science and Technology (DST), Govt. of India, and Council of
Scientific & Industrial Research (CSIR), New Delhi. The system involves analyses of technology
requirements of the state, performance of the traditional technologies and of proven technologies
in the local context.
The single window service to the technology users for dissemination of appropriate
technologies seems to hold much promise about effective Science & Technology intervention in
development activities in the state. The system intends to serve different parties viz., the
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technology generators, technology traders, technology users (entrepreneurs, NGOs, and

government departments, researchers) and financing institutions at a time together thereby
causing a synergistic boost of technology pushed industrial activity in Manipur.
The project Development of Technology Demonstration and Dissemination System
analyses the technology requirements of the state. It can cause a trend setting impact on the
sleeping industrial economy of the technology-starved State.
The technology information management (procurement, storage and delivery) requires
software development and computer aided presentation etc.
Need based technology generation, modification works etc. will demand design
development and performance analyses purely through R&D research with the help of capable
laboratories and organizations.
The system when developed and used as an outsourcing centre on regular basis can be a
source of information about traditional technologies and other various technologies given by
different technology transfer organizations, national and international.
The financial detail of one such project granted to Manipur for the development of the
industrial scenario in Manipur is provided below:

Financial Pattern:
Total Project Cost: -15.04 lakhs
CSIR Share - 5.80 lakhs
DST, GoI Share - 9.24 lakhs
Released Amount
a) DST, GoI - 6.00 lakhs
b) CSIR - 5.80 lakhs
Total released -11.80 lakhs
Date of Commencement - 22 December 2000
Projected Completion - 31 March 2004

7.1.2 Objectives of Technology Dissemination System

It includes the following objectives:
 Assessment of technology requirements in all the developmental sectors.
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 Inventorisation of the existing infra-technologies in various occupations.

 Data referral system for available technologies developed by CSIR, DST
and several other establishments for dissemination to potential technology
users.
 Generation of local situation specific technologies in collaboration with
capableorganisations.

7.1.3 Methodology of Technology Dissemination

1. The objectives of the project were met through the following methodologies:
Extensive survey and inventorisation of infra-technologies in all sectors and assessment of
technology requirements:

a) Resource inventorisation& identification of resource linked industries

b) Inventorisation of traditional skills, methods & tools used in economic activities
c) Survey of social & traditional attitudes towards technology interventions
d) Assessments of technology requirements in i) farm and ii) non-farm sectors

2. Setting up of CD-ROM based data referral system for appropriate technologies through:

a) Tie up with several technology generators, technology traders, R&D institutions etc. and also
with technology transfer organizations -
national and international
b) Software development & preparation of CD-ROM data referral system using multi-media

3. Technology information dissemination through:

a) Selling CD-ROM
b) Intranet
c) Internet
d) Hard Copies
e) Publicity
f) Seminars & Workshops (with the assistance from technology generators)
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4. Liaison between local entrepreneurs/NGOs with technology providers and financing

institutions through:

a) Client initiatives
b) Outreach programmes

5. Technology generation and need-based modification of proven technologies to meet local

demands through,

a) MASTEC R&D activity

b) Arrangement with technology generators and traders

6. Internal Review of the clientele build up and performance of the data referral system will be
carried out by setting up a committee representing experts,
entrepreneurs, NGOs and Government Departments.

7.1.4 Strategic Planning

What is strategic planning?
Strategic planning is a process in which an organization's leaders define their vision for the
future and identify their organization's goals and objectives. The process includes establishing
the sequence in which those goals should be realized so that the organization can reach its stated
vision.
Strategic planning typically represents mid- to long-term goals with a life span of three to
five years, though it can go longer. This is different than business planning, which typically
focuses on short-term, tactical goals, such as how a budget is divided up. The time covered by a
business plan can range from several months to several years.
The product of strategic planning is a strategic plan. It is often reflected in a plan
document or other media. These plans can be easily shared, understood and followed by various
people including employees, customers, business partners and investors.
Organizations conduct strategic planning periodically to consider the effect of changing
business, industry, legal and regulatory conditions. A strategic plan may be updated and revised
at that time to reflect any strategic changes.

Why is strategic planning important?

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Businesses need direction and organizational goals to work toward. Strategic planning offers that
type of guidance. Essentially, a strategic plan is a roadmap to get to business goals. Without such
guidance, there is no way to tell whether a business is on track to reach its goals.

The following four aspects of strategy development are worth attention:

1. The mission. Strategic planning starts with a mission that offers a company a sense of
purpose and direction. The organization's mission statement describes who it is, what it does
and where it wants to go. Missions are typically broad but actionable. For example, a
business in the education industry might seek to be a leader in online virtual educational
tools and services.

2. The goals. Strategic planning involves selecting goals. Most planning uses SMART
goals -- specific, measurable, achievable, realistic and time-bound -- or other objectively
measurable goals. Measurable goals are important because they enable business leaders to
determine how well the business is performing against goals and the overall mission. Goal
setting for the fictitious educational business might include releasing the first version of a
virtual classroom platform within two years or increasing sales of an existing tool by 30% in
the next year.

3. Alignment with short-term goals. Strategic planning relates directly to short-term,

tactical business planning and can help business leaders with everyday decision-making that
better aligns with business strategy. For the fictitious educational business, leaders might
choose to make strategic investments in communication and collaboration technologies, such
as virtual classroom software and services but decline opportunities to establish physical
classroom facilities.

4. Evaluation and revision. Strategic planning helps business leaders periodically

evaluate progress against the plan and make changes or adjustments in response to changing
conditions. For example, a business may seek a global presence, but legal and regulatory
restrictions could emerge that affect its ability to operate in certain geographic regions. As
result, business leaders might have to revise the strategic plan to redefine objectives or
change progress metrics.
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What are the steps in the strategic planning process?

There are myriad different ways to approach strategic planning depending on the type of
business and the granularity required. Most strategic planning cycles can be summarized in these
five steps:
Identify. A strategic planning cycle starts with the determination of a business's current strategic
position. This is where stakeholders use the existing strategic plan -- including the mission
statement and long-term strategic goals -- to perform assessments of the business and its
environment. These assessments can include a needs assessment or a SWOT (strengths,
weaknesses, opportunities and threats) analysis to understand the state of the business and the
path ahead.
Prioritize. Next, strategic planners set objectives and initiatives that line up with the company
mission and goals and will move the business toward achieving its goals. There may be many
potential goals, so planning prioritizes the most important, relevant and urgent ones. Goals may
include a consideration of resource requirements -- such as budgets and equipment -- and they
often involve a timeline and business metrics or Key performance indicators (KPIs) for
measuring progress.
Develop. This is the main thrust of strategic planning in which stakeholders collaborate to
formulate the steps or tactics necessary to attain a stated strategic objective. This may involve
creating numerous short-term tactical business plans that fit into the overarching strategy.
Stakeholders involved in plan development use various tools such as a strategy map to help
visualize and tweak the plan. Developing the plan may involve cost and opportunity tradeoffs
that reflect business priorities. Developers may reject some initiatives if they don't support the
long-term strategy.
Implement. Once the strategic plan is developed, it's time to put it in motion. This requires clear
communication across the organization to set responsibilities, make investments, adjust policies
and processes, and establish measurement and reporting. Implementation typically includes
strategic management with regular strategic reviews to ensure that plans stay on track.
Update. A strategic plan is periodically reviewed and revised to adjust priorities and reevaluate
goals as business conditions change and new opportunities emerge. Quick reviews of metrics can
happen quarterly, and adjustments to the strategic plan can occur annually. Stakeholders may use
balanced scorecards and other tools to assess performance against goals.
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Who does the strategic planning in a business?

A committee typically leads the strategic planning process. Planning experts recommend
the committee include representatives from all areas within the enterprise and work in an open
and transparent way where information is documented from start to finish.
The committee researches and gathers the information needed to understand the
organization's current status and factors that will affect it in the future. The committee should
solicit input and feedback to validate or challenge its assessment of the information.
The committee can opt to use one of many methodologies or strategic frameworks that
have been developed to guide leaders through this process. These methodologies take the
committee through a series of steps that include an analysis or assessment, strategy formulation,
and the articulation and communication of the actions needed to move the organization toward
its strategic vision.
The committee creates benchmarks that will enable the organization to determine how
well it is performing against its goals as it implements the strategic plan. The planning process
should also identify which executives are accountable for ensuring that benchmarking activities
take place at planned times and that specific objectives are met.

How often should strategic planning be done?

There are no uniform requirements to dictate the frequency of a strategic planning cycle.
However, there are common approaches.
· Quarterly reviews: Once a quarter is usually a convenient time frame to revisit assumptions
made in the planning process and gauge progress by checking metrics against the plan.
· Annual reviews: A yearly review lets business leaders assess metrics for the previous four
quarters and make informed adjustments to the plan.
Timetables are always subject to change. Timing should be flexible and tailored to the needs
of a company. For example, a startup in a dynamic industry might revisit its strategic plan
monthly. A mature business in a well-established industry might opt to revisit the plan less
frequently.

Types of strategic plans

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Strategic planning activities typically focus on three areas: business, corporate or

functional. They break out as follows:
· Business. A business-centric strategic plan focuses on the competitive aspects of the
organization -- creating competitive advantages and opportunities for growth. These plans
adopt a mission evaluating the external business environment, setting goals, and allocating
financial, human and technological resources to meet those goals. This is the typical
strategic plan and the main focus of this article.
· Corporate. A corporate-centric plan defines how the company works. It focuses on
organizing and aligning the structure of the business, its policies and processes and its senior
leadership to meet desired goals. For example, the management of a research and
development skunkworks might be structured to function dynamically and on an ad hoc
basis. It would look different from the management team in finance or HR.
· Functional. Function-centric strategic plans fit within corporate-level strategies and
provide a granular examination of specific departments or segments such as marketing, HR,
finance and development. Functional plans focus on policy and process -- such as security
and compliance -- while setting budgets and resource allocations.
In most cases, a strategic plan will involve elements of all three focus areas. But the plan may
lean toward one focus area depending on the needs and type of business

Benefits of strategic planning:

1. It allows organizations to be proactive rather than reactive
A strategic plan allows organizations to foresee their future and to prepare accordingly.
Through strategic planning, companies can anticipate certain unfavourable scenarios before they
happen and take necessary precautions to avoid them. With a strong strategic plan, organizations
can be proactive rather than merely reacting to situations as they arise. Being proactive allows
organizations to keep up with the ever-changing trends in the market and always stay one step
ahead of the competition.
2. It sets up a sense of direction
A strategic plan helps to define the direction in which an organization must travel, and
aids in establishing realistic objectives and goals that are in line with the vision and mission
charted out for it. A strategic plan offers a much-needed foundation from which an organization
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can grow, evaluate its success, compensate its employees and establish boundaries for efficient
decision-making.
3. It increases operational efficiency
A strategic plan provides management the roadmap to align the organization’s functional
activities to achieve set goals. It guides management discussions and decision making in
determining resource and budget requirements to accomplish set objectives — thus increasing
operational efficiency.
4. It helps to increase market share and profitability
Through a dedicated strategic plan, organizations can get valuable insights on market
trends, consumer segments, as well as product and service offerings which may affect their
success. An approach that is targeted and well-strategized to turn all sales and marketing efforts
into the best possible outcomes can help to increase profitability and market share.
5. It can make a business more durable
Business is a tumultuous concept. A business may be booming one year and in debt the
next. With constantly changing industries and world markets, organizations that lack a strong
foundation, focus and foresight will have trouble riding the next wave. According to reports, one
of every three companies that are leaders in their industry might not be there in the next five
years… but the odds are in favour of those that have a strong strategic plan!

How to create a great strategy in the digital age

 Collaborate with the wider leadership team
 Create an approach that drives the whole organisation forward
 Try to think in an organic manner
 Explain the technology that powers disruption
 Listen to your customers and assemble talent
 Make your executive peers feel confident about technology

7.2 Technology Choice and Evaluation Methods

Private-sector development as a suitable alternative for promoting sustainable and balanced
growth has attracted considerable attention. Many governments and development organizations
have focused on the promotion of small-scale enterprises (SSEs) as a way of encouraging
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broader participation in the private sector. The promotion of SSEs and, especially, of those in the
informal sector is viewed as a viable approach to sustainable development.
A number of factors have helped to direct the attention of development agencies to the merits of
SSEs. For instance, at the peak of the economic crisis in the early 1980s, the SSE sector grew
tremendously and exhibited unique strengths in the face of recession . The sector continued to
grow, despite hostile economic, regulatory, and political environments. The entrepreneurs in this
sector came to be regarded as highly opportunistic and innovative. They emerged spontaneously
to take advantage of opportunities that arose in the changing business environment. Moreover,
they demonstrated great creativity in starting enterprises with minimal resources. It has been
suggested that most technological innovations and product diversifications come from this
sector. The SSE sector has been described as the most accessible and competitive economies
(World Bank 1989).
SSEs have characteristics that justify promoting them in a development strategy. They create
employment at low levels of investment per job, lead to increased participation of indigenous
people in the economy, use mainly local resources, promote the creation and use of local
technologies, and provide skills training at a low cost to society (ILO 1989).
The sector plays an important role. The sector makes a significant contribution to the gross
domestic product in the world and provide a key role in employment criteria.
However, it is generally recognized that SSEs face unique problems, which affect their
growth and profitability and, hence, diminish their ability to contribute effectively to sustainable
development. Many of the problems cited have implications for technology choice. These
problems include lack of access to credit, inadequate managerial and technical skills, low levels
of education, poor market information, inhibitive regulatory environments, and lack of access to
technology.
7.2.1 Choice of Technology in Small-scale Enterprises

SME’s- Their significant role in the Indian economy and the challenges they face
“Technology Adoption”.Small and medium-sized enterprises (SMEs) at a global level, all over
the world, have become the backbone of struggling and developing economies. These are
constantly in search of a solution for recession and unemployment. Governments are
encouraging entrepreneurship at a great scale for providing multiple benefits, including job
opportunity creation, increasing the productivity, increasing industrial output & exports, the
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development of entrepreneurship, developing rural economy, healthy competitiveness, gradually

eradicating poverty and achieving various societal goals. One of the universal concerns is to
facilitate the creation of such enterprises.

In spite of playing the key role in the Indian economic development, Indian SME’s have to deal
with major challenges such as inadequate credit facilities, unavailability of proper technology
and skilled manpower. Meanwhile, facing competition from both, national as well international
sectors of their respective industry or the organizations associated with them.

India’s technology sector, inclusive of the large Indian Corporation, also small and medium
organizations have aided companies worldwide. An evaluative look at technology adoption by
SME’s would present that the manufacturing and service sectors are comparatively slow in
technology adoption. They still depend heavily on the traditional non-technical systems for the
purpose of sales, marketing, and finance and for maintaining interaction with customers.

India’s ambitious growth targets and economic goals can be achieved by providing, proper
support, training and for the SMEs. Technology adoption may be the single most important
factor in this growth strategy.

Some major challenges faced by SME’s are discussed below:

Limited Equity Flow

Mostly SME sector is formulated by individuals getting in their own expertise and manpower
with limited capital.

The workforce is comprised of mostly family and friends also the same for general support and
capital source. Owners, financial institutions could only incorporate limited equity investments.
There is a lot of pressure on revenues and profit margins for SME’s. All these further create
extreme competition amongst them.

The landscape of Indian businesses is rapidly changing. Not just for large enterprises but also for
the SMEs. One of the biggest drivers is technology and communication for this long-lasting and
rapidly developing change. If the adoption of technology by SMEs in India is evaluated, it is
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clearly evitable that they have multiple barriers that come in their way. The most significant
hurdles to technology adoption in SMEs are as follows

 Lack of awareness of beneficiaries

 Unfamiliarity with technology
 Lack of proper guidance
 Lack of credible support from Governmental institutions
 Very poor technology adoption.

The technology is extremely important in every sector like selling an online marketplace,
management of inventory, post-sales support, financial reporting etc.

SMEs, somehow do not give technology adoption the attention that it deserves. SMEs are not
enough convinced about the return on investment in technology and cost is the biggest obstacle.

IT policies

Several rules and regulations are established by governments, that guide business. Organizations
normally change the way they function when the government changes policies. Economic policy
and market regulations by the government have an influence on the business profitability.
Regulations established by federal, state and local governments must be compiled by the owners.
As technologies are rapidly changing, it’s important for organizations to innovate.

Technology challenges for SME can be dealt easily by IT consultants. They consult and integrate
new technologies, particularly in mobile, for app development, and in cloud computing.

Dependence on physical IT resources

Enabling employees to work productively and ensuring the security of the IT network and data is
one major challenge for SME’s. Systems should be actively working to aid employees to work
effectively. Cloud computing and IT Managed Services have helped enterprises enormously.
Some organizations also outsource IT services.

Not staying up with changing technology

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Rapidly advancing technology demands these organizations to keep up with its pace. Purchasing
latest smartphones, tablets, routers and other such utility devices for an entire team could be
expensive. It is very expensive to subscribe to Software-as-a-Service applications that are very
important for much functionality like accounting, customer relationship management, invoicing
etc. Because of budget constraints, SMEs can’t upgrade technology frequently, hence
technology budgeting is one of the biggest technology challenges for SME.

Upgrading technology is very crucial as it helps businesses to be competitive and enable

employees to work better and efficiently. Establishing a precise annual budget is essential to
keep technology up to date.

Inappropriate backup systems

Power outage, server crash, files getting deleted accidentally, or any such data disaster can
demolish important data in the system. SMEs don’t have massive budgets to spend on data
backup, storage, and protection. They do not have a plan for backup and disaster recovery. The
appropriate backup solution and disaster recovery steps can help to deal and overcome these
events thus eliminating the expenses that come along with them. There are various data solutions
available.

Unclear device policies

The security of Information technology systems is one such duty for which every employee is
responsible. Policies should be implemented and precisely communicated to the employees.

To make SMEs aware of all the resources available for technology adoption, it is important that
the Government of India, private sectors and training institutions and other such stakeholders
must work together to develop the SME’s an effective communication program.

The government today is highly concerned for the growth of SMEs like never before. Subsidies
and other cost benefits are being offered to SMEs. With increasing awareness about these
benefits including reduced costs, our Indian economy will see more advanced technology
adoption. A realization must be brought in amongst these organizations that technology is not
just an option but a necessity.
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Technology Assessment:
TA is the study and evaluation of new technologies. It is a way of trying to forecast and prepare
for the upcoming technological advancements and their repercussions to the society, and then
make decisions based on the judgments. It is based on the conviction that new developments
within, and discoveries by, the scientific community are relevant for the world at large rather
than just for the scientific experts themselves, and that technological progress can never be free
of ethical implications. Technology assessment was initially practiced in the 1960s in the United
States where it would focus on analyzing the significance of "supersonic transportation, pollution
of the environment and ethics of genetic screening."[3]
Also, technology assessment recognizes the fact that scientists normally are not trained ethicists
themselves and accordingly ought to be very careful when passing ethical judgement on their
own, or their colleagues, new findings, projects, or work in progress. TA is a very broad
phenomenon which also includes aspects such as "diffusion of technology (and technology
transfer), factors leading to rapid acceptance of new technology, and the role of technology and
society."[3]
Technology assessment assumes a global perspective and is future-oriented, not anti-
technological. TA considers its task as an interdisciplinary approach to solving already existing
problems and preventing potential damage caused by the uncritical application and the
commercialization of new technologies.
Therefore, any results of technology assessment studies must be published, and particular
consideration must be given to communication with political decision-makers.
An important problem concerning technology assessment is the so-called Collingridge dilemma:
on the one hand, impacts of new technologies cannot be easily predicted until the technology is
extensively developed and widely used; on the other hand, control or change of a technology is
difficult as soon as it is widely used. It emphasizes on the fact that technologies, in their early
stage, are unpredictable with regards to their implications and rather tough to regulate or control
once it has been widely accepted by the society. Shaping or directing this technology is the
desired direction becomes difficult for the authorities at this period of time. There have been
several approaches put in place in order to tackle this dilemma, one of the common ones being
"anticipation." In this approach, authorities and assessors "anticipate ethical impacts of a
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technology ("technomoral scenarios"), being too speculative to be reliable, or on ethically

regulating technological developments ("sociotechnical experiments"), discarding anticipation of
the future implications."[4]

Technology assessments, which are a form of cost–benefit analysis, are a medium for decision
makers to evaluate and analyze solutions with regards to the particular technology assessment,
and choose a best possible option which is cost effective and obeys the authoritative and
budgetary requirements. However, they are difficult if not impossible to carry out in an objective
manner since subjective decisions and value judgments have to be made regarding a number of
complex issues such as (a) the boundaries of the analysis (i.e., what costs are internalized and
externalized), (b) the selection of appropriate indicators of potential positive and negative
consequences of the new technology, (c) the monetization of non-market values, and (d) a wide
range of ethical perspectives.[5] Consequently, most technology assessments are neither objective
nor value-neutral exercises but instead are greatly influenced and biased by the values of the
most powerful stakeholders, which are in many cases the developers and proponents (i.e.,
corporations and governments) of new technologies under consideration. In the most extreme
view, as expressed by Ian Barbour in '’Technology, Environment, and Human Values'’,
technology assessment is "a one-sided apology for contemporary technology by people with a
stake in its continuation."[6]
Overall, technology assessment is a very broad field which reaches beyond just technology and
industrial phenomenons. It handles the assessment of effects, consequences, and risks of a
technology, but also is a forecasting function looking into the projection of opportunities and
skill development as an input into strategic planning."[7] Some of the major fields of TA are:
information technology, hydrogen technologies, nuclear technology, molecular nanotechnology,
pharmacology, organ transplants, gene technology, artificial intelligence, the Internet and many
more. Health technology assessment is related, but profoundly different, despite the similarity in
the name

7.2.2 Problems in Small Enterprises

1. Lack Of Proper Marketing: One of the major business problems faced by small businesses
is lack of proper marketing. When you establish your business, you are not provided with a
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notebook explaining all the A-Zs of marketing and mareting strategy for your business. It’s
really important to consider the amount of competition you have out there, as they are
outnumbering your expectations every day AND IT WILL!
You need to learn marketing in order to let people know that you exist -- and you are here to
solve their problems.
Online marketing, offline, social, direct and more, marketing comes in all shapes and sizes. As
per information from LinkedIn, social media marketing was the single most astounding popular
skill in Australia in 2015, nearly took after by digital media marketing.
What if the successful personal brands on the Internet like ShamaHyder, Sam Hurley and
Rebekah Redice had never utilized marketing?
It wouldn’t have been possible for us to see them on our Social Media news feeds every day.
One of the most effective marketing technique to solve this small business challenge is
Influencer marketing. It allows you to reach your target audience by finding and connecting with
Influencers on social media.
2. Getting And Retaining Customers: Gandhi revealed the importance of customers even
before the modern marketing definitions were explained,
“A customer is the most important visitor on our premises. He is not dependent on us. We are
dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an
outsider in our business. He is part of it. We are not doing him a favor by serving him. He is
doing us a favor by giving us an opportunity to do so.”
Putting this valuable quote into consideration, you get the responsibility to attend your customers
at any random times. Customers stay when they are taken care of. Each and every customer must
be your priority even if they aren’t paying you big. Building trust and credibility with your
customers will help you retain them.
Marketing and Promoting your product or brand will definitely get you new customers but It's
not the only debate here.
Only the ones who come and stay with you will make your dream come true. Your customers
will not pay if you impose your busy schedule on them.
3. Money Management: Literally, having a strong cash flow can keep your business running.
It’s one of the most important ingredients to put in mind while you want to hit the top of
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finances, especially with your business revenue in order to make sure that you’re operating
successfully.
Cash Flow is one of the huge small business problems arise when you don’t efficiently work
with your accounts or don’t produce enough revenue from your customers..
You shouldn't spend money foolishly, but running a business out of fear never works. It seems
highly contradicting, but that kind of thinking can actually pool your business.
Even if you are receiving enough money from your customers, you are likely to go down on that
revenue graph if there’s no money management. There are multi-talented that can create
budgets, calculate VAT, generate online invoices and most likely helps feel strategized and
relaxed.
4. Maintaining Online Presence: There’s no denying it: Everyone has a presence on Social
Media. If you and your business don’t have an online presence, you are already missing a huge
piece of cake waiting for you to take it.
To sustain your business, you need people to know about you, you need people to give their
opinion on what you do and how you do. There’s no better place than the internet to spread your
brand awareness. It's an undeniable opportunity for you to share valuable content with your
audience. This will also solve your
Your online presence will get you to new opportunities and markets, bigger audience and
customer base and especially the loyal connections.
Start building your business on Social Media. Entrepreneurs, leaders and trendsetters are
overtaking one another. Believe me, people are obsessed with growth and there’s no reason left
for you to not be.
5. Time Management: While the time is infinite, the hours of a day are not. Indeed, running a
business will exhaust you and consume more time than expected. Ultimately, being an
entrepreneur cum small business owner makes you a multi-tasker and caretaker of all the small
business problems.
This is a common experience for 90% of the business owners out there.
In case you don’t make an effort to manage your time, your knees are going to buckle and your
business will have a hard time corresponding to that.
You are already running out of time in this fast-moving competitive world. The ones who are
managing the time righeously are the ones who make difference.
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6. Social Media Management Tools: In order to stay on top of everything as a small business
owner, you need to focus on your online presence and put your business on the wavelength.
Neglecting this fact can be one of your small business problems.
Growing on Social Media is not a one-day soccer game. It will take a lot of your time to generate
results, at the same time, you cannot put all your time for just growing on Social media as you
have many other tasks to take care of.
Using the right Social Media Management tools will positively save a ton of your time. Many
small business owners and entrepreneurs are in love with everything that Statusbrew offers them
-- from scheduling and publishing multiple posts, managing and engaging with the potential
audience, finding influencers and generating business leads to super efficient customer success
team

7.2.3 Factors Influencing the Choice of Technology by SSEs

Entrepreneurs decide which technology to use at the enterprise level. Key factors
influencing their technology choices include knowledge of the company's goals, available
resources, market nature, and available technologies (Stewart1987). In addition, entrepreneurs
need technical and administrative skills to effectively select, adapt and use technology.
In addition, if we can estimate the demand for a company's products, estimate the rate of
change in the market where technology changes may be required, gather information on
alternative technologies, and estimate potential profits, the technology will be better. You will be
able to make the right choice.
Invest in all options. However, many entrepreneurs in this sector lack the education,
training, management experience, and other skills needed to address these issues. Many SSEs
lack information about technology because of their economic and organizational characteristics.
And there is no way to assess the suitability of the people they know (Neck and Nelson1987).
Macropolitics also influences technology choices at the enterprise level by the sum of
socio-economic, political and legal forces. It has been suggested that general socio-economic
environment, industry regulations, taxes, subsidies, trade and monetary policy, science and
technology research, and dissemination policies tend to favor large corporations (ATI1987).

7.2.4 Problems Hindering the Effective Choice of Technology by SSEs

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The literature indicates that SSEs face unique constraints that hinder the effective choice
of technology. Many SSE owners or managers lack managerial training and experience. The
typical owner or managers of small businesses develop their own approach to management,
through a process of trial and error. As a result, their management style is likely to be more
intuitive than analytical, more concerned with daytoday operations than longterm issues, and
more opportunistic than strategic in its concept (Hill 1987). Although this attitude is the key
strength at the startup stage of the enterprise because it provides the creativity needed, it may
present problems when complex decisions have to be made. A consequence of poor managerial
ability is that SSE owners are ill prepared to face changes in the business environment and to
plan appropriate changes in technology.
Lack of information is a key problem affecting SSE`s access to technology. Harper
(1987) suggested that technologies used by SSEs in developing countries may be inappropriate
because their choice is based on insufficient information and ineffective evaluation. Neck and
Nelson (1987) suggested that ignorance is a key constraint affecting the choice of technology by
SSEs. Further, level of education is relevant, as it may determine the entrepreneurs' access to
information. Generally, the ability to read and write, exposure to a broader world, and training in
the sciences enhance one's ability to understand, respond to, use, and control technologies
(Anderson 1985).
Lack of access to credit is almost universally indicated as a key problem for SSEs. This
affects technology choice by limiting the number of alternatives that can be considered. Many
SSEs may use an inappropriate technology because it is the only one they can afford. In some
cases, even where credit is available, the entrepreneur may lack freedom of choice because the
lending conditions may force the purchase of heavy, immovable equipment that can serve as
collateral for the loan. Another related problem is the lack of suitable premises and other
infrastructure.
The national policy and regulatory environment has an important impact on technology
decisions at the enterprise level. Structural adjustment programs (SAPs) currently in place in
many African countries aim to eliminate serious policy distortions that have been seen as
negatively impacting the growth of the private sector. While these policies may, in principle,
support SSE growth in the long run, concerns have been expressed about the ability of the SSE
sector to increase production and create more jobs in the face of declining demand. (Henk et al.
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1991). SAP tends to have a significant short-term impact on vulnerable groups and is associated
with worsening living conditions in many African countries (USAID 1991). In addition,
significant reductions in government services such as health and education have forced many
small business owners to withdraw more money from their businesses to meet these needs,
leading to technology and business expansion. It is hindering investment.

7.2.5 Policy Implications

Obviously, SSE cannot procure, evaluate, and adapt technology effectively. Therefore,
government policy should aim to develop these skills at SSE through aid agencies. Policies can
facilitate the development of support programs to improve access to SSE resources, information,
training, and technology. In addition, policies need to encourage the development of
technologies suitable for SSE. While it is possible to develop strategies aimed at improving the
SSE situation, it may be more realistic to support the development of technologies that are
compatible with the SSE situation. The policy should be aimed at stimulating and encouraging
the development of local technology. The focus should be on promoting the local tool industry to
reduce reliance on imports. SSE is said to be facing "responsibility for smallness". Due to limited
size and resources, it is not possible to develop new technologies or make radical changes to
existing technologies. Still, there is evidence that SSE may initiate smaller innovations suitable
for the situation. However, for SSE to fully develop and take advantage of this potential, certain
policy measures are required to ensure that technology services and infrastructure are delivered.
In addition, publicly funded R & D organizations should be encouraged to target the needs of
SSE technology.

Problems with access to information can be due to inadequate SSE support facilities. This points
to the need for support policies to facilitate the establishment of documentation centers and
information networks to provide information to SSEs at an affordable price. The characteristics
of the market have a great influence on the choice of technology. Governments can facilitate
technology choices for SSEs by creating an environment that promotes fair competition. The
main focus of the policy should be an environment that enables enterprise-level technology
decisions. Beyond the declaration of policy objectives, concrete and coherent actions must be
taken to ensure that the policy objectives are achieved. An overall policy framework needs to be
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addressed to ensure that policy instruments are in line with key objectives. In some cases, there
seems to be a clear contradiction between the policy and the implementation.

Summary
 The technology information management (procurement, storage and delivery) requires
software development and computer aided presentation. Need based technology
generation, modification works will demand design development and performance
analyses purely through R&D research with the help of capable laboratories and
organisations.
 The objectives of Technology Dissemination System are assessment of technological
requirements in all the development sectors and inventorisation of the existing infra-
technologies in various occupations.
 Strategic planning is an organisation’s process of defining its strategy, or direction, and
making decisions on allocating its resources to pursue this strategy, including its capital
and people.
 Strategy can only be applied once, after that it is process of application with no unique
element remaining.
 Strategic analysis is an activity which includes conducting some sort of scan, or review,
of the organisation’s environment (for example, of the political, social, economic and
technical environment).
 Action planning is carefully laying out how the strategic goals will be accomplished.
Action planning often includes specifying objectives, or specific results, with each
strategic goal.
 Many governments and development organisations have focused on the promotion of
Small-scale Enterprises (SSEs) as a way of encouraging broader participation in the
private sector. The promotion of SSEs and, especially, of those in the informal sector is
viewed as a viable approach to sustainable development.
 SSEs face unique problems which affect their growth and profitability thereby,
diminishing their ability to contribute effectively to sustainable development. These
problems include lack of access to credit, inadequate managerial and technical skills, low
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levels of education, poor market information, inhibitive regulatory environments, and

lack of access to technology.
 The typical owner or managers of small businesses develop their own approach to
management, through a process of trial and error. As a result, their management style is
likely to be more intuitive than analytical, more concerned with day-to-day operations
than long-term issues, and more opportunistic than strategic in its concept.
 Technology assessment is the study and evaluation of new technologies. It is based on the
conviction that new developments within, and discoveries by, the scientific community
are relevant for the world at large rather than just for the scientific experts themselves,
and that technological progress can never be free of ethical implications
Keywords
 PEST Analysis: It is an analysis of the political, economic, social and technological
factors in the external environment of an organisation which can affect its activities and
performance.
 Small Scale Enterprises (SSEs): Sometimes called a small business, a small- scale
enterprise is a business that employs a small number of workers and does not have a high
volume of sales. Such enterprises are generally privately owned and operated sole
proprietorships, corporations or partnerships.
 Structural Adjustment Programmes (SSPs): Structural adjustment programmes are free
market economic policy reforms imposed on developing countries by the Benetton
Woods institutions as a condition for receipt of loans.
 Commercial Off-the-shelf (COTS): Commercial off-the-shelf is a term that references
Non-developmental Items (NDI) sold in the commercial marketplace and used or
obtained through government contracts.
 Technology Dissemination: It means spread of technology widely so that it can reach as
many people as possible
Self-Assessment Questions
Short Answer Questions
1. List some of the objectives of technology dissemination system.
2. What are the methods through which the objectives of technology dissemination system
are met?
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3. What is strategic planning?

4. How are strategies different from tactics?
5. What are small scale enterprises?
6. What are the unique problems faced by SSEs?
7. List some of the problems hindering the effective choice of technology by SSEs.
8. What is technology assessment?
9. What is technology evaluation?
10. What is the impact of systems for systems?
Long Answer Questions
1. What is dissemination of technology information? Discuss the objectives of technology
dissemination system and the methodology used for its dissemination.
2. What are the major activities in strategic planning?
3. Discuss SSEs, their problems, the factors influencing and the problems hindering the
effective choice of technology by them.
4. Discuss about technology assessment and the technology evaluation centre used for their
assessment.
5. Write about technology evaluation and the impact for systems of systems in detail

Further Readings

Betz Frederic, (1996), Strategic Technology Management,McGraw Hill

Graynor, Gerard H., (1996), Handbook of TechnologyManagement, McGraw Hill
Khurana and Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
M.Khalil, Tarek., (2003), Management of Technology, McGrawHill
Osman T. Damba, Isaac GershonKodwoAnsah, Samuel A. Donkoh, Amin Alhassan, Gary R.
Mullins, KamaldeenYussif, MusahSalifu Taylor, Bright KD. Tetteh, Mark Appiah-Twumasi,
Effects of technology dissemination approaches on agricultural technology uptake and utilization in
Northern Ghana,Technology in Society,Volume 62,2020,
Szakonyl and Robert, (2008), Handbook of TechnologyManagement, Viva Books Private Limited
https://www.un.org/press/en/2015/gaef3426.doc.htm
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Lesson 8 ALTERNATIVE TECHNOLOGIES

CONTENTS
Overview
8.1. Alternative Technologies: An Introduction
8.2. Implementing Technology Programmes
8.2.1. Issues to Implement Technology Programmes
8.2.2. Technology Transfer
8.2.3. The Payoff
8.3. Technology Analysis: A Foundation for Technological Expertise
8.3.1. Technology Analysis
8.3.2. Traditional Tools
8.3.3. Corporate Strategy
8.3.4. Competitive Strategy
8.3.5. Price
8.3.6. Other Advantages
8.3.7. Functional Policies
8.4 Strategic Management
8.4.1 Traditional Strategy Setting
8.4.2 Traditional Strategy: Fit vs. Stretch
8.4.3 Traditional Strategy Implementation
8.4.4 Limitations of Traditional Strategic Management
8.4.5 Technological Change and Traditional Strategic Management - Strategic Analysis
8.5 Future Energy Technology
8.5.1 Power from Two Energy Sources?
8.5.2 Advantages of Renewable Energy at Macro and Micro Level
8.5.3 Converting Waste Heat into Electricity
8.5.4 Hydrogen Generation and Storage Made Easy with Nanotechnology

Learning Objectives
After studying this lesson, you should be able to:
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 Describe alternative technologies used in technology assessments

 Understand the implementation of technology programs and explain how they work
Learning Outcomes
Upon completion of the lesson, students are able to demonstrate a good understanding of:
 Analysing alternative technologies and implementing technology programmes
 Explain issues to implement technology programmes
 Determine technology analysis and corporate strategy
 Define strategic management
 Technological change and traditional strategic management - strategic analysis
 Recall future energy technology
Overview
In the previous lesson, the dissemination of technology information and strategic planning as
well as the impact of small scale enterprises and how technology affects their business operations
were given. Moreover, the technology choice and the methods used in their evaluation is to be
recalled. There are some alternate technologies for any activity - the alternative ways of doing it.
Some “alternative technologies” have in the past or may in the future become widely adopted,
after which they might no longer be considered “alternative.” For example the use of wind
turbines to produce electricity. They help a lot in easing the work and at the same time also are
less harmful to the environment. In this lesson, the various alternative technologies and the
different technology programmes used in their implementation will be discussed in detail.
8.1 Alternative Technologies: An Introduction
Alternative technology refers to technologies that are more ecologically friendly than the
functionally comparable technologies that are already employed in practice.
Example: Handling the transportation of material products from the point where the supplier
hands them over to the point where they enter into operations is known as inbound logistics.
There are a variety of other ways to carry out these activities, as well as alternative technology
that could be used, such as:
 Manual labour,
 Manual labour supplemented by tools (hand carts),
 Conveyor systems,
 Forklift trucks,
 Automated guided vehicles,
 Robotic loaders/un-loaders,
 Stacking cranes, and
 Pneumatic hoses.
Of course, the nature of the inbound material would limit the applicability of some of these
technologies, but an input/output analysis of inbound materials handling using forklift trucks vs.
conveyor systems technologies would highlight the differences in inputs required, intended
outputs achieved, unintended outputs produced, and conversion process efficiency. Similarly,
inbound materials storage and inbound materials inspection activities should be examined. The
technology you choose has a big impact on your business's growth and productivity. The
application of technology is always linked to a goal. The issue of choice arises because numerous
types of technology might be used to meet an organization's goals. The concept of technological
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choice is based on the assumptions that having access to knowledge on alternative technologies,
as well as the ability to appropriately evaluate them.
Effective choice, according to Moustafa (1990), is based on pre-determined criteria for a
technology's ability to suit certain objectives. It also depends on the capacity to perceive and
discover opportunities in various technologies. The desired result is that the company will choose
the best appropriate or "alternative" technology (AT) for its needs.
For many years, the concept of AT has been a source of contention. Stewart (1987) drew a
distinction between two broad perspectives. To begin, AT is defined in welfare economics as a
set of approaches for making the best use of available resources in a given context. Second, AT
is associated with a specific set of traits by social scientists and individuals who work in AT
institutions. AT is typically "more labour demanding, less capital-heavy, less skill-intensive,
making more use of local materials and resources, and smaller in scale," according to Stewart.
It is also occasionally highlighted that AT should not have a detrimental impact on the
environment and that it should be compatible with the community's socioeconomic structures.
The number of recommended features is excessive, implying that a technology can be
appropriate in some respects but not in others. Kaplinsky looked at the trade-offs involved in
technology selection and discovered that automated production can sometimes provide a
cheaper, higher-quality product for consumers, but traditional manufacture of a lower-quality,
higher-cost product generates more jobs (ATI 1987). This exemplifies the difficulty of
appraising technology and poses several problems, including:
 Who is it appropriate for?
 Is it concerned about knowledge, talent, or resource shortages that obstruct successful
technology selection at the enterprise level?
The term 'appropriate' is used loosely in this context to refer to technology that is most beneficial
to the enterprise's purpose and conditions.
Learning Activity: Visit any company and ask if they use any alternative technology in their
manufacturing process.
8.2 Implementing Technology Programmes
8.2.1 Issues to Implement Technology Programmes
 Incorporate technology into the company's strategic goals.
 Taking a proactive approach to the introduction of new technologies, with a focus on
cycle time.
 Increasing the technical community's productivity and performance.
 Recognizing project management's transdisciplinary requirements
 Assessing the resources and infrastructure to determine the technical scope of the project.
Strategic, Operational and Management Issues
The following are the foundational elements of any organisation:
 Purpose or purposes,
 Vision,
 Objectives,
 Strategies,
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 Operations (doing the work to achieve its purposes, vision, and objectives), and
 Management of the process from purposes to customer satisfaction.
The extent to which Management of Technology (MOT) is compatible with corporate
management can be seen when viewed from the perspectives of strategy, operations, and
management.
Strategic Issues
Managers involved in establishing business unit strategy should pay more attention to MOT's
strategic challenges. Take a look at the following strategic issues:
 Recognizing the extent of technology management
 Different layers of technology management
 Technology managers: who is in charge of the technology?
 Using technology to add value
 Creating a technological policy
 Bridging the technological policy-to-results gap
 Technology strategy's forerunners
 Incorporating technology into business plans
 Making strategy and operations more rational
 Taking charge of the decision-making process
 The importance of systems thinking
 Consequences of single-issue management
 How technology can help you gain a competitive advantage
 Technology management in a fast-paced setting

Technology was largely disregarded during the strategic-planning mania. Without a strategy,
elaborate strategic plans were established. Volumes were prepared, but they were rarely checked
once they were approved. Processes for strategic planning produced amounts of data rather than
information, an interjection of operational detail but insufficient as an operational plan, and were
constructed on the basis of at least dubious, if not fraudulent, assumptions. These assumptions
included assuming a static rather than dynamic environment, relying on the dubious premise of
an annual event, dealing with data rather than information, focusing on analysis rather than
synthesis, failing to translate the strategy into meaningful terms across the organization, and
ignoring technology that affects over 75% of the sales value of production. Can technology
continue to be overlooked while formulating a strategy? Is there a technology approach that
can be implemented? Is it necessary to incorporate technology challenges into company
strategy? Yes, absolutely.

Operational Issues
MOT's operational concerns present a similar wide range of topics that must be established in the
context of the company. It's even longer than the list of strategic concerns.

Consider the following important operational categories that must be addressed:

 Concept and idea generation

 Forecasting
 Evaluating
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 Justification of expenditures
 Management of the planning process
 Keeping track of the project management process
 Dealing with inconsistencies
 How, where, and why descriptions
 Problem-solving and opportunity-seeking
 Controlling the system's cycle time
 Technological know-how
 Innovation
 Entrepreneurship
 Transfer of technology
 Information
 Integration of functions
 Investing in research and development
 Planning for successful product development
 Market-driven and/or technology-driven
 Implementing new procedures
 Launching new items
 Project selection, monitoring, and termination
 Bringing technology, goods, and markets together
 Making connections between goals, objectives, and methods
 Concentrating on activities that bring value
 Solving the information conundrum
 Resource effectiveness, efficiency, and cost-effectiveness
 The outcomes are determined by analysis and synthesis.
 Distinguishing between the mean and the extremes
 Removing roadblocks to successful IT management
 Creating and implementing technology plans for business units
 Allocating and organising resources
 Creating baseline profiles (plus/minus analysis)
 Bridging the gap between competence and capability in order to gain a competitive edge
 Putting in place activity-based management
 Putting the project concept into action at all levels
 Examining R & D, technology, and prospective new goods and processes
Management Issues
The principles of managing any organisation are included in the management concerns. The
following is a list of general categories:
 People-related
 Developing capable personnel
 Overcoming opposition to change and objections
 Capabilities and competencies
 Productivity and results
 Segmentation and specialisation
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 Creating a healthy and balanced atmosphere

 Organizational education
 Organizing the company
 Bringing business functions together
 Getting the most out of technology management
 Dealing with the facts
Does management penalize manufacturing in any manner if it fails to meet the 10% reduction
objective, or do they applaud the group's efforts? It's sad that senior management is unaware that
all cost-cutting or improvement plans have some element of game-playing. Manufacturing knew
it could cut costs by 3% without putting in a lot of extra effort - no new ideas, just more of the
same. Managers should not be afraid to establish difficult goals as long as they do not become
overly obsessed with artificial goals and instead focus on achieving realistic results.
Raising expectations is a serious issue that has to be addressed. Without challenging the
legitimacy and integrity of the assumptions, information should not be accepted.
Consider connecting operational concerns to strategic concerns, and then to managerial concerns.
In a continual feed-back cycle, this results in a continuum from strategy to operational to
management, to strategic or operational, and so on. A shift in one necessitates a shift in the other.

It's possible to claim that strategy is a management problem. It may have been the case in the
past, but critical technological choices are now made by employees at the lowest levels of the
business. In the product or process development domain, a relatively young engineer can make
some key technical strategic decisions. A young marketing or sales professional may be able to
contribute innovative ideas for future market development, new product requirements, or client
wants.

8.2.2 Technology Transfer

It can be used to assist or implement a process, or it can be considered a component or module in
a product or a product in and of itself for derived demand. The technology transfer step sees a
technology go from the development stage to product development and manufacturing.
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Organisational
direction and
Capability
Inter - Knowledge
Organizational characteristics
Networks of technology

Technology
Transfer
system

The technology transfer step sees a technology go from the development stage to product
development and manufacturing. In terms of technology transfer, there are two primary issues to
consider: technology and people.
"The problem of conveying information concerning physical phenomena, equipment, analytical
and manipulative techniques, terminology, and other technology-related issues" is the first
dimension. Information transfer can lead to ambiguities in specifications, misinterpretations of
meaning, and a lack of on-the-job training to comprehend the technology, its interdependencies,
and architecture.
The second factor "concerns feelings and attitudes in both R&D and product development
engineering organisations [concerning] two groups of people with distinct skills, values, and
priorities to become effective in transferring the baton from one to the other." This is a common
issue with management styles and practises.
Table 8.1. Technological Change Restructures Industry

Technology from new suppliers Improved supplier differentiation or cost

reduction, maybe increased supplier power,
possibly more cost competition

Plant and equipment costs are reduced as a New entrants' entry hurdles have been
result of technological advancements. decreased, resulting in increased
competitiveness.
High plant motivation and equipment Increased entry hurdles for new entrants—
expenses are driven by technology could boost motivation and equipment costs
for substitutes, or boost firm power.
Competitive replacements based on new Firm power is threatened by entry obstacles
technologies and the emergence of new competitive
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substitutes.
Firms with proprietary technological entries Reduced firm power—lower hurdles to
have been dispersed entry for newcomers, resulting in potentially
higher cost competition
Example: The impact of learning effects on unit production costs and pricing of an innovative
product is a significant property of technical advances for full-scale production settings that has
yet to be studied.
8.2.3 The Payoff
Even with a plan that places it below manufacturing cost, the payback of a timely technology can
help a company obtain a market advantage by cutting pricing. Higher sales are expected to result
in cost savings in the future as a result of the increased volume of output.
8.3 Technology Analysis: A Foundation for Technological Expertise
8.3.1 Technology Analysis
This is a new field of study that seeks to take a holistic approach to technology. MOT focuses on
the following three levels of the organisation:
 Individual products and processes, i.e., management dealing with nitty-gritty difficulties
 Functional aspects, such as operations and company-wide issues (e.g., quality and
productivity)
 Strategy, which entails deciding on a corporate course and directing the company through
a tumultuous technological landscape.

All corporate executives must be technologically literate in order to properly handle technology.
This does not imply in-depth knowledge, but rather a comfortable familiarity with a wide range
of technologies. Technology analysis gives you the tools to think about how to get to that
comfortable familiarity.
The essence of technology analysis is covered by six main tools:
 A method for viewing and discussing specific technologies that is universally accepted.
 A technology classification
 A chart depicting technological interactions
 A series of trends that describe technological progress.
 A diagram depicting the zones of technological breakthrough
 A social preference profile in terms of technology

Technology analysis can be thought of as a kind of "skyway theory" for technology. Similar to
how a skyway connects several buildings, enabling simple access to the key parts without having
to cover every floor, technology analysis enables easy access to the fundamental features of all
technologies without having to grasp every aspect.
Table 8.2. Linkages of Direct Technology Driven Changes

Product design is made easier by Operations costs were lowered,

procurement requirements were altered,
technological advancements. marketing was redefined, and service was
simplified, among other things.
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Electronic order processing and shipping Customers must be informed about fewer
are now available from the supplier. stock-outs due to a change in
procurement procedures and the
introduction of JIT (just-in-time
marketing).
A new online consumer feedback Customer costs are decreased as a result
system has been launched by the of marketing's new consumer-focused
service. campaign, operations' utilisation of input
for quality improvement, and technology
development's incorporation of customer
ideas for product improvements.
Customer-specific shipping Customer expenses are decreased in a new
packages and lot sizes are marketing campaign, and a customer-
introduced by outbound logistics. designated delivery service has lower
customer demands and costs.

8.3.2 Traditional Tools

Analytical approaches used in traditional strategic management can be useful in addressing

technological concerns. They do, however, suffer from the following issues to varied degrees:
 A lack of distinction between technology and other sorts of change;
 Limited understanding of the dynamic processes underlying technological change;
 Reliance on the knowledge, competence, and understanding of (often technical) analysts;
and
 Some people have questioned the validity of the underlying notions. They don't have the
attention and intensity that modern strategic management analysis requires.
8.3.3 Corporate Strategy
Marketing strategy, manufacturing strategy, competitive strategy, corporate strategy, business
strategy, and technological strategy are all terms that have become popularised, and it is required
to sift through their various meanings by evaluating different levels of the firm's organisation.
There is the multi-industry business corporation, the conglomerate or the diversified firm, at the
highest corporate level, of which there are many instances, such as General Electric. At this
level, corporate strategy deals with issues like deciding which industries or businesses to be in,
using portfolio management techniques to achieve a balance among the industries or businesses
chosen, and achieving synergy among the industries or businesses chosen (in the case of a
diversified firm).
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What type of business (or series

of enterprises) should we be in?

Corporate What value does the main

business bring to the
Strategy
Strategizing

subsidiaries?

How does being successful in

one business help us compete in
our other ventures?

Business What strategy should we use to

compete?
Strategy

8.3.4 Competitive Strategy

The single industry-business firm, such as Bethlehem Steel, or the division of a multi-industry-
business corporation, such as GE Aircraft Engines, are the next step below. The question of
which business or industry to be in is irrelevant at this level; one is either in steel or the aviation
engine sector, and the only question is how to compete successfully in it, or get out. This is the
level at which we're concerned with competitive strategy, a phrase most strongly connected with
Michael E. Porter, who put it this way: Developing a competitive strategy entails creating a
general formula for how a company will compete, what its objectives should be, and what
policies would be required to achieve those objectives.
Characteristics of Competitive Strategy
In order to formulate a viable competitive strategy, information about the firm's capabilities and
competencies, as well as its strengths and weaknesses, must be communicated upward, and once
a competitive strategy has been formulated, it must be implemented through policies and
decisions made in all of the firm's functional activities. In practise, it's never easy to decide
which comes first: the strategy or the talents and/or competencies. In actuality, it's an iterative
process in which the chicken-and-egg problem doesn't matter.
A firm cannot have a "strategy of the month" since competitive strategy is a long-term
phenomenon. In response to evolutionary changes in the environment, there is a long-term
demand for stability and a short-term need for continuous updating. However, depending on the
internal dynamics of each industry, what constitutes long-term can differ. In the electronics
business, a long-term plan might be 2 to 3 years, but in the chemical industry, it could be 8 to 10
years or more. When the environment undergoes a discontinuous change - such as a global oil
embargo, the end of fixed exchange rates, or a global war - all strategies must, of course, be
reviewed for major adjustments or reformulation.
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Strategies

Strategy in general Corporate strategy Competitive strategy

Choices and Competitors &

Courses of action Commitments Competitions

The relationship Businesses, PORTER: Cost,

between ends Markets, Products Differentiation &
and means and Services Focus

Treacy & Wiersema:

Operational excellence,
Customers Intimacy,
Product Leadership

Competitiveness
The generic goal of industrial enterprises in a free-market economy is competitiveness, which is
defined as follows: Competitiveness is defined as the capacity to persuade customers to choose
your product or service above competing options on a long-term basis.
This definition of competitiveness has the advantage of being operational, as opposed to other
definitions that are too complex to assess and include factors such as free and fair market
conditions, standard of life, and preserving or increasing the actual income of its population.
Market share trends through time are used to determine competitiveness, which can be described
as increasing, declining, or steady. The size of the market share is determined by the size of the
competition; for most produced goods today, a worldwide scope and market share are important.
So, competitiveness isn't a metric that can be measured at a particular point in time.
Sustainability
However, there is a crucial caveat in the preceding definition, which is that competitiveness must
be built on a long-term basis. In the short run, a company can persuade customers to buy its
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products or services over competing alternatives on an unsustainable basis by mortgaging assets

and utilising the proceeds to subsidise and lower prices, drawing customers until the proceeds
run out and the company falls. A discussion of profits and the trade-off with growth and market
share is useful in this context of sustainability. However, we would argue that the goal of
competitiveness is not to maximise profits, but to sustainably increase market share, and that,
conversely, a firm can lose competitiveness while achieving record profit levels.
Profitability
To compete on a long-term basis, any company must meet a certain profit level. Even the most
successful companies cannot thrive without profits. Lending or investment institutions,
stockholders, and even government’s will eventually lose tolerance, and the company will go out
of business. Even if our primary focus on competitiveness is market share, profitability must be
maintained at a certain level in order to sustain competitiveness. This threshold level can vary by
industry and, more crucially, by country, and it can be influenced by national policy.
Customer Focus
Many watchers of competition begin by focusing on firms and what they are doing to enhance
themselves in R&D, manufacturing, or marketing. This isn't the best place to start. Customers
decide competitiveness by their aggregate decisions to purchase one product or service over
competing alternatives. Customers will have reasons for making this decision that reflect what
they value if we presume that such purchasing decisions have any rational basis. These factors
are referred to as competitive advantages.
Competitive Advantages
When we consider why customers choose the items or services they do, we may think of a few
general reasons:
 The cost is less.
 The quality has improved.
 Availability is earlier or more consistently just-in-time.
 Customer service has improved.
 Attractiveness has improved.
 There is a higher level of awareness.
 Long-term relationships require a high level of stability.
 Other sociological, psychological, and ideological considerations
8.3.5 Price
The majority of the time, the client is unaware of the costs, and cheaper prices may have been
reached through changes in currency rates (in international competition) or internal or
government subsidies. Customers pick one product or service over competing alternatives for a
variety of reasons, the most prominent of which being a lower price.
It's vital to note that, from the customer's perspective, the price is usually more relevant than the
cost of providing the product or service - i.e., reduced costs. The only exception is when
industrial clients enter into long-term collaboration agreements with suppliers, in which case a
lower cost structure may be needed and the more relevant advantage.
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8.3.6 Other Advantages

Finally, buyers buy one product or service over competing alternatives for a variety of reasons
that are difficult to categorise or describe - the other group. These additional reasons are based
on sociological, psychological, or political-ideological considerations rather than rational
customer decision-making.
For example, snob appeal, as well as whatever is involved in an impulsive purchase, would
appear to fall into this group.
When "buy national" behaviour is used as a form of patriotism, it eliminates a wide range of
competitive foreign-sourced options. Although there are certainly many more idiosyncratic
factors for customers' purchase decisions, we will concentrate on the major competitive
advantages of price, quality, and availability.
8.3.7 Functional Policies
The firm's functions - the usual R&D, engineering, manufacturing and production, marketing,
sales, service, people and human resources, purchasing, accounting, finance, and planning
services - are a step down from competitive. Policies must be developed and enforced in every
aspect of the business, including how to structure the organisation, allocate resources, and reward
employees. The crucial aspect to remember is that in order for the firm to compete effectively, all
functional policies must support, reinforce, or contribute to the firm's competitive strategy.
8.4 Strategic Management
Strategic management propels the company forward; it determines the company's overall
direction; and it gives the company a competitive advantage (or impairs that of its competition).
Formal and rational (synoptic) approaches are being questioned, as are reactive and adaptable
(not quite seat of the pants) approaches. "When the dynamos of competition are addressed,
strategic ideas such as fit, sustainable advantage, obstacles to entry, long-range planning, the use
of financial goals to regulate strategy implementation, and SWOT [Strengths, Weaknesses,
Opportunities, and Threats] analysis all break apart." All acts are relative in today's complex,
moving environment; all actions are really interactions, and each meaningful action necessitates
an assessment of its long-term evolution and course. Traditional tools and concepts focus on
strategy, but they can no longer fully capture strategy formulation and implementation.
8.4.1 Traditional Strategy Setting
Traditional synoptic (rational) strategic management begins with "vision," which is frequently
criticised as a soft-headed or idealistic term or a figment of the CEO's ego. Perhaps "foresight" is
a better term, but whatever name is used, there must be a clear understanding of where the
company is going and what it will become. Lack of vision affects public and private sector
companies of all sizes, from small businesses to multinational conglomerates, and CEOs ranging
from sole owners to presidents of the United States.
Strategic management then uses environmental "scanning" to identify and define certain essential
aspects such as finance, markets, channels, or competition characteristics (sometimes including
technology challenges).
This obviates the examination of (1) relevant parts of the firm's socio-politico-economico-
technical environment; (2) structural characteristics of its industry; and (3) the firm's internal
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characteristics, strengths, weaknesses, and interrelationships. Environmental vigilance is time

and resource costly, but there is no replacement for it.

8.4.2 Traditional Strategy: Fit vs. Stretch

The distinction between "fit" and "stretch" is a fundamental one. The results of the scan are
compared to the company's vision, strengths, and weaknesses, as well as the challenges and
opportunities it confronts. Traditional strategic management, maybe reflecting traditional risk
aversion, favours strategic goals and objectives that align with the firm's strengths and
capabilities, limiting the firm's options. Individual and situational factors influence fit/stretch
decisions. Risk-benefit trade-offs are subtle and complex in these situations. Accepting a natural
"inclination" toward fit, while less risky in the short term, can be disastrous in the long run.
8.4.3 Traditional Strategy Implementation
The firm's vision is reflected in the strategies it formulates, its strategic goals (long-term and
general), and its specific objectives under the traditional hierarchical approach to strategic
management (see Figure below) (shorter term, measurable, time-based). Policies, practises,
procedures, budgets, schedules, audits, and reports, which provide guidance, information, and
restraint mechanisms that keep the firm on track, are implemented, and results monitored and
controlled by familiar mechanisms such as policies, practises, procedures, budgets, schedules,
audits, and reports, which provide guidance, information, and restraint mechanisms that keep the
firm on track., while perhaps less risky in the short term, can prove fatal in the long run.

Vision

Strategic
Each goals
element
supports
those
Objectives
above it

Vision Policies/ Practices

driven
down in to
supporting Monitoring/ Control
elements

Consistent/ Supportive implementation throughout organizational structure

Along the structure, there is bidirectional influence. All supporting elements and activities are
driven by the vision, which in turn is driven by the strategies. Simultaneously, each underlying
 221

piece must be compatible with and supportive of the one above it. As a result, practises support
policies that advance objectives that are in line with strategic goals, and so on. These vertical
relationships must be maintained horizontally throughout the organisation.
However, this creates problems. First, changes in the environment, either outside the firm (the
economy, competitive or market shifts, political changes, new technologies, etc.) or within the
firm (the economy, competitive or market shifts, political changes, new technologies, etc.). (New
skill sets, loss of key personnel, worsening financial performance, etc.) Dictate near-constant
monitoring, scanning, and (most likely) correction. Second, imposing strict strategy conformance
can backfire; coherence can stifle innovation, responsiveness, and necessary change. As a result,
consistency and adaptation, control and empowerment must always be balanced. For
responsiveness and flexibility, monitoring and control systems must be designed and operated,
and methods must include controlled adaptation (strategic incrementalism).
8.4.4 Limitations of Traditional Strategic Management
Successes of organisations that defy recognised strategic management concepts or firms cited for
intelligent strategic management just before downfall or oblivion are particularly aggravating to
management researchers. Although some studies demonstrate a favourable link, many observers
question that traditional strategic management improves business performance or eventual
success.
Rigid, structured strategic planning has fallen out of favour, and this trend is increasingly
spreading to broader strategic management techniques. Environmental scanning and competitive
factor trend monitoring take up a modest percentage of top management's time and attention.
This is most likely due to:

 In the face of rapid, multifaceted change, mechanical long-range strategy planning

produces poor results.
 Intense competition necessitates more "firefighting" by management's limited ranks.
 There is a lack of integration with the firm's operations.
 Traditional strategic management fails to account for crucial change drivers, particularly
technology. The static nature of most strategic analysis frameworks and models, which
essentially address existing competitive circumstances, is highlighted in this last point.
These merely provide a glimpse of a point in time as well as indications of pressure and
forces. They're frequently based on economic theory and hypothetical equilibrium, both
of which are becoming increasingly disconnected from commercial realities.
Basic strategic management principles such as long-term competitive advantage are being
called into question, and they can easily become a source of distraction. Microsoft's regular new
software releases and Sun Technology's "burning" of older products with better and cheaper
workstations are examples of successful corporations destroying existing competitive
advantages by offering successor items before their competition could. Compare this to IBM's
worry of minicomputers cannibalising mainframes, a mistake that was repeated with personal
computers vs. minicomputers.
Firms must constantly scan and change in order for today's amazing vision to become
tomorrow's accepted wisdom. Because success supports the persistence of management frames
and resistance to new ideas, the learning organization must selectively forget. Many successful
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American managers were educated a few decades ago that high quality products and services
were irrelevant due to "superstitious learning" of faulty cause-effect correlations.

8.4.5 Technological Change and Traditional Strategic Management - Strategic

Analysis
Traditional strategic management techniques usually try to answer the following questions:
 What is the firm's standing in its industry?
 How appealing is that field?
They're useful simplifications of more complicated realities; the real world can't be reduced to
simple matrices and two-dimensional models. They were also not designed to resolve
technology-related concerns; rather, they were designed to partially address them. Despite these
and other flaws, they are nonetheless effective in some situations. We'll look at three common
types:

Firm-Level: Strengths, Weaknesses, Opportunities, Threats (SWOT)

Analysing a company's strengths and flaws in a systematic manner is essential. The outcomes
can then be compared to environmental dangers and opportunities (both external and internal)
(old, new, and potential, in present markets, different markets, or entirely new competitive
space). Technology should always be considered in a SWOT analysis.
Definitions of SWOTs
Harmful to
Helpful to
achieving
achieving the
the
objective
objective
Internal
(Attributes
Strengths Weaknesses
of the
organisation)
External
(Attributes
Opportunities Threats
of the
environment)

For example, a company's exclusive technology can be a large asset, whereas new competitor
technology can be a major liability. Simple examples are included in Table 8.3.
SWOT outcomes are very reliant on the knowledge, understanding, and frameworks of
individuals performing them (a particular issue with technologies), can readily devolve into
generalisations, and overlook unseen technology.
Table 8.3. Technologies Redefine SWOT

Strengths  The company's key technology is proprietary.

 Consistently on the cutting edge of technology in a fast-paced
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industry
 The company employs highly qualified technologists.
Weaknesses  In a fast-paced industry, the company's technology are ageing.
 Key technical personnel on the verge of retirement
Opportunities  The company provided favourable licence terms for a crucial
technology.
 Possibilities for existing corporate technology to be spun off
Threats  A major rival adopts a new "killing" technology.
 Customers benefit from a new low-cost device that performs a
critical corporate function.

Firm and Infrastructure: Value-chain Analysis

Michel Porter popularised the value chain, which is a diagram that shows how a company adds
value to items (goods or services) for distribution channels or customers. Inbound logistics,
operations, marketing, outbound logistics, and service are the five key value-adding activities
that drive support activities (e.g., administration, technology development, human resources,
procurement). The efficiency and efficacy of a company's operations are largely determined by
complex links between its primary and support activities, with its channels or consumers, and
with its suppliers. Management's ability to optimise, integrate, utilise, and leverage its resources
to add value, satisfy consumers, and exhibit competitiveness is reflected in these, as well as the
abilities of particular activities.

Core
Five Forces Game Theory Adaptability
Competence
Industry in
Firm as a Industry viewed
Stable Industry rapid,
Assumptions bundle of as a dynamic
Structure unpredictable
competence oligopoly
change
Continuous
Defensible Sustainable Temporary
Goal flow of
position advantage advantage
advantages
Performance Industry Unique from Ability to
Rigid moves
Driver structure competencies change
Pick an
Create a vision, Make the ‘right’
industry, pick a Emergent
built and exploit competitive and
Strategy strategy strategic
competencies to collaborative
position, fit the direction
realize vision moves
organization
Long term Continual re-
Success Profits Short term win
dominance invention

A complete grasp of the company, its activities, and its external relationships is required for
value-chain analysis. Technology has a role (see technology growth), and competent analysis
should uncover pertinent connections, although technological change is accommodated rather
than emphasised. Furthermore, such issues may fall outside the analysts' purview.
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Industry: Five – forces Model

The five – forces structural analysis paradigm, developed by Michael Porter, deduces power
connections among five elements that make up an industry: inter-firm rivalry, suppliers,
customers, new entrants, and replacements for the firm's products. Each of them places pressure
on the company, and each is affected by the company. Relative power ties, such as the firm's
influence over its suppliers (or vice versa) or the pressures the firm feels from its consumers (or
vice versa), can be explored in greater depth.
Michael Porter (Harvard Business School Management Researcher) devised a number of useful
frameworks for formulating a company's strategy. The five competing forces model, which
defines industry structure, is one of the most well-known among managers making strategic
decisions. The nature of competitiveness in any industry, according to Porter, is personified in
the following five forces:

 The threat of a new entrant

 Substitute products/services are a threat
 Supplier bargaining strength
 Buyer bargaining power
 Competition between present competitors

Risk of entry by
Potential
Competitors Complementaries

Intensity of
Bargaining rivalry among Bargaining
power of established power of
suppliers firms buyers

Threat of
substitutes

There is a clear overlap between five-forces analysis and SWOT analysis: new entrants and
substitutes are often threats, compliant suppliers are strengths, and so on. However, five factors
can reveal hurdles to new entrants or distinct market niches, assist in determining the firm's long-
term viability, and provide insight into the relevance of its plans. It may also involve
technological concerns. Technological development has shifted entrance or mobility obstacles,
resulting in changes in relative power positions, according to Porter and others. This form of
 225

examination can expose more technological concerns, but it's also a framework for mounting
technological change components without revealing their full consequences.

8.5 Future Energy Technology

Civilization will be obliged to investigate and develop alternate energy sources in the future.
This century will see an energy crisis as a result of our current use of fossil fuels. Leaving aside
the future, many companies in the energy industry are creating innovative techniques to harvest
energy from renewable sources in order to survive the current energy crisis. Although progress is
gradual, public awareness and political pressure are increasing. Now we'll talk about the future of
energy technology.
8.5.1 Power from Two Energy Sources?
Alternative energy sources are clean and environmentally friendly, however they provide less
energy than fossil fuels. As a result, scientists are currently attempting to create power from
multiple alternative energy sources at the same time and in the same location. Attempts are being
made to generate external energy by combining two types of external energy sources, such as
light and heat or light and vibration, in order to collect enough energy for practical application.
Fujitsu Laboratories has now succeeded in generating electricity using hybrid energy sources. By
2015, Fujitsu Laboratories hopes to have this technology available for commercial use.
8.5.2 Advantages of Renewable Energy at Macro and Micro Level
It is now clear that the world's current energy systems and technological breakthroughs will not
be sufficient to rid the globe of the carbon dioxide released by those resources. To address this
issue, new technologies and old technologies can be combined to maximise the benefits of the
entire energy system, which includes energy generation, transformation, transportation, and
distribution. Work in this approach will need to be done on a large and micro scale.
8.5.3 Converting Waste Heat into Electricity
The world has seen the development of a number of items or units that generate heat as a result
of rapid industrialization. Until recently, this heat has been viewed as a waste, prompting people
to wonder if the massive amounts of heat being generated may be converted into a source of
electricity. This ideal is about to become a reality, thanks to scientists at the University of
Arizona who have discovered new ways to capture energy using heat.
8.5.4 Hydrogen Generation and Storage Made Easy with Nanotechnology
Gasoline and other hydrocarbon-based fuels pollute the environment and leave a carbon imprint.
Since the 1970s, hydrogen has been touted as a viable substitute to fossil fuels. However, due to
storage and commercial production issues, hydrogen's potential has only been partially realised.
For many years, scientists have been studying renewable energy sources such as hydrogen.
Recently, ground breaking research has resulted in the development of a new method for storing
hydrogen.
Learning Activity: Visit any organisation of your choice to see if technology transfer has
occurred at their location. If true, the technology was then transferred to a different department
inside the company.
Summary
 226

 For any activity, there are alternate technologies - alternative ways of doing it. There are
new and old, labor-intensive and capital-intensive, appropriate and inappropriate, and
unknown technologies yet to be developed.
 The underlying elements of any organization include its purpose or purposes, its vision,
its objectives, its strategies, its operations (doing the work to achieve its purposes, vision,
and objectives), and its management of the process from purposes to customer
satisfaction.
 The technology transfer step results in the transfer of a technology from its development
to product development and manufacturing. It can be considered as part of a component
or module in a product or a product itself for derived demand, or it may be used to
support or implement a process.
 The payoff of a timely technology can make a firm gain a market edge by lowering price,
even with a strategy that places it below production cost.
 The expectation is that increased sales would ensure future cost reductions Notes
 from increased volume of output due to increased sales.
 To effectively manage technology, all corporate managers must have a certain level of
technological literacy. This does not necessarily mean in-depth expertise but a
comfortable familiarity with the whole gamut of technologies. Technology analysis
provides the tools for thought for achieving such a comfortable familiarity.
 Technology analysis may be viewed as a “skyway theory” of technology. Just as a
skyway is a passageway linking various buildings, allowing easy access to the main areas
without attempting to cover every floor, so technology analysis allows easy access to the
essential feature of all technologies without attempting to grasp every detail.
 Information must be communicated upward regarding the capabilities and competencies,
the strengths and weaknesses, of the firm in order for a feasible competitive strategy to be
formulated and once a competitive strategy has been formulated, it must be implemented
through policies and decisions made in all the functional activities of the firm. In practice
it is always difficult to resolve the chicken-egg issue: which should come first - the
strategy or the capabilities and/or competencies.
 The goal of competitiveness is not to maximize profits, but to sustainably increase market
share, and the converse point - that it is very possible to be losing competitiveness even
as a firm is achieving record levels of profit.
 Strategic management drives the firm; it sets the overall direction of the firm; it creates
competitive advantage for the firm (or impairs that of its competition).
 Systematic environmental scanning and competitive factor trend analysis occupy a
vanishing small portion of top management time and attention

Keywords

 Alternative Technology (AT): The way something is made with less pollution that is
more efficient than the traditional method.
 Competitive Strategy: It refers to how a company competes in a particular business and is
concerned with how it can gain a competitive advantage through a distinctive way of
competing.
 227

 Competitiveness: Ability of a firm or a nation to offer products and services to meet the
quality standards of the local and world markets at prices that are competitive and
provide adequate returns on the resources employed or consumed in producing them.
 Sustainability: It is the management and coordination of environmental, social and
financial demands and concerns to ensure ongoing, ethical and responsible success.
 Strategic Management: The systematic analysis of the factors associated with the
customers and competitors (external environment) and the organization itself (internal
environment) to provide the basis for providing optimum management practices
Self-Assessment

Short Answer Questions

1. What are the issues which have to be tackled while implementing technology programmes?
2. List some of the strategic issues of management of technology.
3. What happens in technology transfer?
4. How can payoff of a timely technology help the firm gain market supremacy?
5. What are the characteristics of competitive strategy?
6. List some of the competitive advantages why customers choose a particular product or
service over others.
7. What are the factors which determine environmental scanning?
8. What are the limitations of traditional strategic management?
9. What is a value chain?
10. What is the five forces model?
11. What are the primary value adding activities?

Long Answer Questions

1. What is alternative technology?

2. What are the various issues which plague the implementation of technology programmes?
3. Explain the various factors which help in the implementation of technology programmes.
4. How does strategic management help in the implementation of programmes and what are its
limitations?
5. Explain strategic analysis and how technological change and traditional strategic
management work hand in hand.
6. What is competitive strategy?
7. What are the characteristics of competitive strategy?
8. How are competitiveness, sustainability and profitability crucial to competitive strategy?

Further Readings

Charles A. Cole, Charles Speers, Barbara Yeaman (1980) Innovative and Alternative Technologies,
U.S. Environmental Protection Agency
Graynor, Gerard H., (2007), Digital, Handbook of TechnologyManagement, McGraw Hill
Khalil M., Tarek., (2009), Management of Technology, McGrawHill
Khurana, Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
Krishnamacharyulu C.S.G. and LalithaRamakrishnan, (2009),Management of Technology, HPH
 228

Narayanan V.K., (2009), Managing Technology and Innovation forCompetitive Advantage, Pearson
Publishers
Szakonyl, Robert, (2008), Handbook of Technology Management,Viva Books Private Limited
White, (2007), The Management of Technology & Innovation,Thomson Publishers

Unit -V

Lesson 9 – FACTORY AND OFFICE AUTOMATION

CONTENT

Learning objectives

Learning outcomes

Overview

9.1 INTRODUCTION

9.1.1 Office Automation

9.1.2 Why office automation system

9.1.3 How to implement an Office Automation system

9.1.4 Office Automation: The Basic
9.1.5 Key Features of an Office Automation System.

9.2 ESSENTIALS OF OFFICE AUTOMATION TOOLS

9.3 THE NECESSARY PIECES TO AUTOMATE

9.3.1 Types of Office Automation Tools

9.4 BUSINESS PROCESS REENGINEERING

9.5 BPR FRAMEWORKS

9.5.1 Robert’s Framework

9.5.2 Lowenthal Framework (1994)

9.5.3 Cross, Feather & Lynch Framework (1994)
9.6 QUALITY MANAGEMENT

LEARNING OBJECTIVES

After studying this lesson, you should be able to:

 Understand the meaning and definition of office automation

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 Know why office functions needed to be automated

 Understand the meaning and definition of business process re-engineering
 Know the implementation of business process re-engineering
 Gain knowledge about the quality management
 Understand the concept of quality planning, quality control and quality
implementation
 Know the uses of technology transfer

LEARNING OUTCOMES

Upon completion of the lesson, students are able to demonstrate a good understanding of:

 Define office automation and explain its need

 Concept of document management systems
 List out of advantages and disadvantages of office automation
 Define business process re-engineering and how to implement BPR
 Concept of quality management and explain uses of transferred technology

OVERVIEW

An office performs many important functions of an organization. All the management and
administrative tasks are performed at office. These tasks may be categorized into different types.

In this lesson, you will learn about outsourcing and what is the need of outsourcing and what is
HRO advantages and disadvantages of HRO, factors influencing when and where not to
outsource.

So we advise you to read carefully and learn with an open mind and your full concentration.

9.1 INTRODUCTION

Office automation refers to the varied computer machinery and the software used to
digitally create, collect, store, manipulate and relay the office information needed for
accomplishing some of the basic tasks.
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Office automation refers to the varied computer machinery and software used to
digitally create, collect, store, manipulate, and relay office information needed for accomplishing
basic tasks.

Raw data storage, electronic transfer, and the management of electronic business
information comprise the basic activities of an office automation system. Office automation
helps in optimizing or automating existing office procedures.

The backbone of office automation is a LAN, which allows users to transfer data, mail
and even voice across the network. All office functions, including dictation, typing, filing,
copying, fax, Telex, microfilm and records management, telephone and telephone switchboard
operations, fall into this category. Office automation was a popular term in the 1970s and 1980s
as the desktop computer exploded onto the scene.

Advantages are:

1. Office automation can get many tasks accomplished faster.

2. It eliminates the need for a large staff.
3. Less storage is required to store data.
4. Multiple people can update data simultaneously in the event of changes in schedule.

Businesses can easily purchase and stock their wares with the aid of technology. Many of
the manual tasks that used to be done by hand can now be done through hand held devices and
UPC and SKU coding. In the retail setting, automation also increases choice. Customers can
easily process their payments through automated credit card machines and no longer have to wait
in line for an employee to process and manually type in the credit card numbers.
Office payrolls have been automated which means no one has to manually cut checks,
and those checks that are cut can be printed through computer programs. Direct deposit can be
automatically set up and this further reduces the manual process and most employees who
participate in direct deposit often find their paychecks come earlier than if they'd have to wait for
their checks to be written and then cleared by the bank.
Other ways automation has reduced employee manpower on tasks is automated voice
direction. Through the use of prompts, automated phone menus and directed calls, the need for
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employees to be dedicated to answer the phones has been reduced, and in some cases,
eliminated.

9.1.1 Office Automation

Office automation is a general term that describes the different types of computer systems
and software that are used to collect digitally, store, transfer, alter and utilize office information
to execute tasks. In essence, office automation helps to manage data.
Office automation allows data to move without human intervention. Since humans are
left out of the equation, there is no risk of manual error. What once began with a typewriter has
evolved into a myriad of automation and electronic tools that have changed how people work.
Office automation (OA) refers to the collective hardware, software and processes that
enable automation of the information processing and communication tasks in an organization. It
involves using computers and software to digitize, store, process and communicate most routine
tasks and processes in a standard office.
Office automation is the process of watching data flow around on its own without any
human intervention, inaccuracies, and errors. It is the process of using an automation tool to
create, collect, store, analyze, and share confidential office data that is required to accomplish
basis day-to-day routine tasks and processes effectively.
Technology has made a serious impact on the daily work of office administration. Emails
have replaced memos, shared drives have done away with filing cabinets, and biometrics have
taken over employee timesheet stamping. Many businesses think that they have attained office
automation nirvana simply by going paperless.
Office automation calls for having all hardware, software and network resources to
automate basic to advanced-level tasks in an office environment. A comprehensive office
automation solution typically includes:

 Computers for all employees and/or data processing personnel

 Software that enables word processing, creating spreadsheets, managing accounts and
more
 Internet connectivity and email programs to send and receive email messages
 Fax and printing services
 Instant communication such as VoIP and more
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An office automation system is the tool that enables data to move from one system to
another on its own without human intervention and inaccuracies. These tools help organizations
collect, manage, and analyze securely to accomplish everyday tasks and processes. It optimizes
and automates existing business processes and procedures.
9.1.2 Why office automation system?
In today’s digital age, office automation systems offer an array of benefits for
organizations of every size. Powerful office automation systems reduce manual effort and store a
large amount of data in little space. They not only streamline day-to-day tasks but also speed up
information retrieval. Additionally, these tools improve process visibility and help businesses
spot bottlenecks easily.
On the other hand, you could be watching data flow around on its own – that’s
automation.
The system consists of both hardware and software solutions that enable the transfer of
data between systems absent human contributions or interventions. Office automation eases
organizational workloads by simplifying and automating processes like accounting, data
management, training, facility management, and various administrative tasks.
An office automation system doesn’t consist of just going paperless. For example,
maintaining all work product and client correspondence in a document management system. Yet,
an office automation system offers organizations much more than going green by cutting down
on paper. It is a powerful tool that can be used to eliminate manual processes, identify inefficient
workflows, and facilitate informed decision-making.
Benefits of an Office Automation System
Implementing an office automation system offers organizations a broad range of benefits.
These benefits include:
· Improved accuracy
· Reduced costs
· Reduced time and resources
· Data storage and management
· Data insights and more informed decisions
· Business process improvement
Some of the biggest advantages of automating office workflows include:
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· Reducing the manual effort to complete mundane tasks

· Cutting down on manual errors
· Shrinking the processing time for items
· Getting insights into process performance metrics
· Gaining greater process visibility and identifying potential bottlenecks
· Making sound business decisions based on data
9.1.3 How to implement an Office Automation system?
The benefits of an office automation system are easy enough to understand and
appreciate. Just about every organization in the world would welcome improved accuracy,
greater efficiency, and higher profit margins. Yet, many organizations do not make the jump to
an office automation system because the process seems overwhelming. With an
ordered approach, however, implementation is both manageable and achievable.

Office automation adds efficiency to your workflows, but you need to look beyond
emails and digital forms to really embrace it.
If you are looking for an office automation solution that can take your company
workflows to the next level, don’t settle for anything that doesn’t have these five essentials.
Office automation is a way of dealing with tedious and repetitive work with the help of
technology. No sector in an organization is left untouched by automation.
Digitization has now become an integral part of an organization. The optimal use of
automation strengthens your overall business workflow.
The success rate of running mission-critical processes relies on many different aspects of
your organization, like the workers and procurement, schedule and budget, reporting and
management, network and security, plus other vital infrastructure.

9.1.4 Office Automation: The Basics

There is are a lot of different aspects of office automation, but they can be easily divided
into the following categories:
Information storage: This includes the recording of information, like forms, documents, files,
images and spreadsheets. Information storage generally exists in formats of word processors or
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spreadsheets, but it can also be more sophisticated like records in a CMS or automation software
tool like SolveXia.
Data exchange: Systems allow for the real-time exchange of information, such as fax machines
or emails. Automation software tools also fit into this category as you can easily share
information and send reports between people.
Data management: Office automation must also be easily manageable between different parties
and relevant information. As such, office automation systems can handle short-term and long-
term data, including financial plans, marketing expenditures, inventory management, etc.
9.1.5 Key Features of an Office Automation System
There are countless applications and software programs that promise improved efficiency
through automation. As we discussed above, however, achieving organizational efficiency
through an office automation system requires more than downloading a few apps.
Rather, you need a comprehensive office automation solution that offers the following
features:

· Process modeling and workflow design

· Mobile Compatibility

· Integration
· Managing tasks and deadlines
· Access control and security
· Communication
· Reporting and Analytics
9.2 ESSENTIALS OF OFFICE AUTOMATION TOOLS
1. Easy work flow designer
Creating workflows used to be the domain of hard-core system coders. So, as workflow
software evolved, it assumed the people using it would be programmers as well.
However, a modern office automation system should start with the business user in mind,
not the coder.
When you sit down to trial an office automation tool, start off by making your own
workflows. How easy is it? Can you intuitively create the sequence of tasks needed to finish a
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process? If you can’t figure it out within the first five minutes, you need to move on to the next
option.
A piece of software shouldn’t determine how your business should set its operations. It
should instead aid your teams to strengthen the existing processes.

2. Mobile compatibility

Your office is mobile, and all your tools should be too. Whether you have remote
workers or you just want to check in while waiting for a flight, the office automation tool you
choose should work just as smoothly on someone’s phone while on a trip to China as it does on a
PC at the main office.
Your marketing campaign can’t be delayed a day just because you need to wait for Greg
to get back from his vacation in Machu Picchu.
You should be able to run your core processes from a secure cloud and never have to
worry about where your data is or who is protecting it. If you use an office automation tool like
Kiss flow Workflow, then Greg can go over the marketing plan on his mobile from his hotel
lobby in Peru and give his nod before goes on to take selfies with the llamas.

3. Integration with other software

Office automation software isn’t the only thing you are running. You’ve got your internal
database, a CRM, a marketing automation tool, and your financial software, and that’s just for
starters. When you’re reliant on so many systems, you need a tool that doesn’t just keep to itself.
Of all the software out there, office automation should be the easiest to integrate with your other
tools. If it doesn’t, you are stuck pushing data around from one system to another. When doing
an evaluation, see what kind of pre-integrations the office automation software provides, or if it
takes advantage of connecting to a tool like Zapier to open access to thousands of other cloud
tools.

4. Reports and analytics

How do you know if your office automation is yielding results? You can’t just evaluate
process performance based on how happy your team is. Data is the ultimate decision-maker, and
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it’s important for your business to compare a process’ history, its speed, the outcome quality,
etc. Adopting another software to measure your workflow data is time-consuming and
unnecessary. Why not have a single piece of software that comes embedded with reporting and
analytics features? The best office automation products now come equipped with this feature as
part of their fundamental offering.

5. Access control options

Just like limiting entry to your office premises, you should also have access privileges set
to all of your business workflows. A good workflow automation system understands this
sensitive requirement and will have access control as part of its integral features. Don’t overlook
this capability when considering office automation software for your business
Functions of Office Automation Software
An ideal office automation software:
· Requires less space to store data
· Streamlines data storage and retrieval
· Retrieves information instantly
· Eliminates the need to preserve paperwork
· Removes any chance for data redundancy
· Allows multiple people to access data
· Reduces the possibility of errors

Save money, save time, step into the future

Office Automation: The Benefits
Businesses rely on a little or a lot of office automation tools. Regardless of the extent, the
benefits are expansive, namely:
· Reduction of manual effort to achieve tasks
· Minimization of human and manual errors
· Decreased processing time for task completion
· Enhanced transparency and process improvement abilities
· Better decision-making based on data and forecasts
· Enhanced metrics and KPI monitoring
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· Increased employee satisfaction and communication

· Results in better customer service

Office automation benefits in the following ways:

· Eliminates human error.

· Saves time and increases work efficiency.
· Provides timely analysis and reporting of performance metrics.
· Integrates your office database, and creates a secure, centralized data access
platform.
· Quick on identifying any potential issues and serves you with a sound business
solution.
· It gives you an overall perspective of ongoing processes and office workflow.
· Reduced labor on a single task, making extra room for undertaking multiple
projects simultaneously

9.3 THE NECESSARY PIECES TO AUTOMATE

When bringing automation into your organization, you will face two big decisions. For
starters, what do you want to automate? Secondly, what tool is the right tool to do the trick?
There are primary important change management considerations that s

hould be addressed when introducing a new technology tool which includes:

· an understanding of the tool itself / its purpose,

· adequate training
· A positive mindset on behalf of those who will use it.

Let’s take a look at how to accomplish all of this.

1. Choosing the Right Tool

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The best automation tools have a lot of necessary attributes. Here is how automation tools
can assist your business, such as SolveXia, a human analytical automation tool.
Easy workflow design: Automation tools should make your employees’ lives easier and not
more complicated. This means that workflows and their design should be intuitive to use. The
tool can complete your internal processes like account reconciliation, for example, without
requiring an IT team or anyone to code the procedure. Instead, you can choose from a library of
commands and put together any process easily.
Mobile compatibility: These days, employees and business leaders are always on the go.
Having a tool that is mobile compatible and accessible means that you don’t miss any exchange
of information when you are out of the office or away from your computer.
Software integration: You probably already have office automation tools working for your
business. Whether it be Slack, Google Sheets, Dropbox, Salesforce, Mailchimp or any other
software, it is best when these tools can speak to one another.
Reports and analytics: You’ll want to be able to measure if your tools are working in your
favor consistently. Software solutions with reports and analytics can take care of this
management aspect for you. Not only will these tools provide analytics based on your data and
day-to-day business, but you can also create internal reports that show, how many hours have
been spent on one task, for example.
Access control: With any software that touches data, one of the most critical considerations is
control and security. Tools like SolveXia allow for access control, meaning that you can restrict
and grant access to only those who should have it. You are also able to see who made any change
to data and when so that audit trails are valid and accurate.
2. Providing Proper Training
The right tool works only when people are on board. For those in your organization who
manage different processes, automation tools will help alleviate the burden of any manual and
repetitive tasks. It first requires proper training and understanding of how the tool works. The
best software on the market not only design for easy to use interfaces, but they also provide
training and support.
Proper training works best for those who are open to it. As a business leader, you can
help to support a culture that is open to change and constant improvement. One way to do this is
to practicecontinuous process improvement.
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9.3.1 Types of Office Automation Tools

Office automation spans all aspects of a business’ operations virtually. There are tools to
support.
· Facility Management:
Gain the ability to grant or deny access to your facilities remotely. Example: Kisi
· Access management
· Visitor management
· Service
· Membership and Room scheduling
Staffing:
Use automation to onboard employees and approve contracts. Example: Workable
· Contracts
· Hiring
· Rostering
· Onboarding
Productivity:
Store, share and collaborate regarding notes and essential information.
Zapier can connect various productivity apps to talk to one another.
· Notes
· Office supplies
· Events catering
· Communication:
· Try Google’s suite for emails and document sharing.
· Responding to enquiries
· Writing fewer emails
Administrative:
Use software tools like SolveXia to manage repetitive tasks, consolidate data from all
legacy systems in one place, automating the accounting and real – time analysis plus more.
· Collect and organize data
· Streamline repetitive tasks
· Less time on paper work
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· On top of billing, expenses and invoicing

Appointments and Scheduling:
· Avoid back and forth, emailing for scheduling.
Instead, try a tool like Calendlythat can help automate schedules.
· Schedule appointments automatically
· Emails before and after appointments
Office Automation Tools
1. Finance and Budgeting
2. Recruitment
3. Cloud Infrastructure Automation
4. Security
5. Task Management / Project Management
6. Procurement
7. SaaS Management
8. Back – Office Automation
9. Front Desk Automation
10. Communication
11. Facilities
12. Analytics
13. Reporting
14. Remote Work Force
15. eSignature Solution
Automation Technologies
An office automation system plays an important role in helping organizations to eliminate
time-consuming and repetitive tasks to reduce operating costs and improve employee
productivity.
Most office automation technologies fall into the following categories:
· Electronic publishing
· Electronic communication and collaboration tools
· Image processing and document storage
· Office management
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9.4 BUSINESS PROCESS REENGINEERING

Reengineering is the fundamental rethinking and redesign of business processes to
achieve dramatic improvements in critical, contemporary measures of performance, such as cost,
quality, service and speed. BPR seeks improvements of

– Cost
– Quality
– Service
– Speed

Process
A specific ordering of work activities across time and space, with a beginning, an end,
and clearly identified inputs and outputs: a structure for action.
Business Process
A group of logically related tasks that use the firm's resources to provide customer –
oriented results in support of the organization's objectives
Why Reengineering is required?

• Customers

– Demanding
– Sophistication
– Changing Needs

• Competition

– Local
– Global

• Change

– Technology
– Customer Preferences
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When should a process be reengineered?

– Are customers demanding more for less?

– Are your competitors providing more for less?
– Can you hand – carry a job through the process much faster than the
normal cycle time (Example: five times faster)?
– Have your incremental improvement efforts been stalled?
– Have technology investments been a disappointment?
– Are you planning to introduce radically new products/services or to serve
new markets?
– Are you in danger of becoming unprofitable?
– Have cost-cutting programs failed to turn the ship around?
– Are operations being merged or consolidated?
– Are the core business processes fragmented?

9.5 BPR FRAMEWORKS

9.5.1 Robert’s Framework

• Starts with a gap analysis and ends with a transition to continuous improvement.
• The gap analysis focuses on three questions:

1. The way things should be

2. The way things are
3. How to reconcile the gap between 1 and 2

9.5.2 Lowenthal Framework (1994)

• Consists of 4 phases

1. Preparing for change

2. Planning for change
3. Designing for change
4. Evaluating change

• Phase 1 – Goals
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1. Building management understanding, awareness and support for change

2. Preparing for a cultural shift and acquire employee “buy-in

• Phase 2 – Assumption

Organizations need to adopt to constantly changing marketplaces

• Phase 3 - Method

1. To identify, assess, map and design

2. A framework for translating process knowledge into leaps of change

• Phase 4 – Means

Evaluate performance during a specified time frame

9.5.3 Cross, Feather & Lynch Framework (1994)

1. Analysis

– In depth understanding of market and customer requirements

– Detailed understanding of how things are currently done
– Where are the strengths and weaknesses compared to the competition

2. Design

– Based on principles that fall into six categories

1) Service Quality – relates to customer contacts

2) Workflow – managing the flow of jobs
3) Workspace – ergonomic factors and layout options
4) Continuous improvement – self sustaining
5) Workforce – people are integral to business processes
6) Information technology

3. Implementation
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– Transforming the design into day to day operations

ORGANIZATIONAL TRANSFORMATION (6R’s)

• Requirements (customers, process owners, suppliers, products, services);

• Rethink (structures, systems, procedures, rules, processes, technologies);
• Redesign (the whole system, reducing waste, process optimization, output
optimization);
• Retool (competitive technologies and technological systems, supply systems,
transformation models);
• Reevaluate (results, metrics, goals);
• Realization (needs, challenges, threats, opportunities, strengths

BPR failures
There are still a lot of skeptics.

There is an extensive work considering BPRfailures, it seems that in the literature

there is a lack of findings about the process concepts such as
• Process Organization
• Process Organizational Structure
• Process Management
• Process Culture
• Process Metrics And Measurement
• Process Transformation

Why companies don’t reengineer?

• Complacency
• Political Resistance
• New Developments
• Fear of Unknown and Failure

KEY Characteristics

• Systems Philosophy
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• Global Perspective on Business Processes

• Radical Improvement

Ø Sustainable
– Process improvements need to become firmly rooted within the
organization\
Ø Stepped Approach
– Process improvements will not happen over night they need to be
gradually introduced
– Also assists the acceptance by staff of the change

• Integrated Change

Ø Viable Solutions
– Process improvements must be viable and practical
Ø Balanced Improvements
– Process improvements must be realistic

• People Centered

Ø Business Understanding
Ø Empowerment & Participation
Ø Organizational Culture

• Focus on End – Customers

Process improvements must relate to the needs of the organization and be relevant
to the end-customers to which they are designed to serve
• Process – Based

Ø Added Value
– BPR Initiatives must add-value over and above the existing process
Ø Customer-Led
– BPR Initiatives must meet the needs of the customer
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Steps Involved In Implementing BPR

SELECT THE PROCESS & APPOINT THE PROCESS TEAM
1. Select the process

Ø Review Business Strategy and Customer Requirements

Ø Select Core Processes
Ø Understand Customer Needs
Ø Don’t Assume Anything
Ø Select Correct Path for Change
Ø Remember Assumptions can Hide Failures
Ø Competition and Choice to Go Elsewhere
Ø Ask – Questionnaires, Meetings, Focus Groups

2. Appoint the process team

Ø Appoint BPR Champion

Ø Identify Process Owners
Ø Establish Executive Improvement Team
Ø Provide Training to Executive Team

Core skills required

Ø Capacity to view the organization as a whole

Ø Ability to focus on end-customers
Ø Ability to challenge fundamental assumptions
Ø Courage to deliver and venture into unknown areas
Ø Ability to assume individual and collective responsibility
Ø Employ ‘Bridge Builders’

Use of consultants

Ø Used to generate internal capacity

Ø Appropriate when an implementation is needed quickly
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Ø Ensure that adequate consultation is sought from staff so that the initiative is
organization – led and not consultant – driven
Ø Control should never be handed over to the consultant

UNDERSTAND THE CURRENT PROCESS

Ø Develop a Process Overview
Ø Clearly define the process

– Mission
– Scope
– Boundaries

Ø Set business and customer measurements

Ø Understand customers’ expectations from the process (staff including process team)
Ø Clearly Identify Improvement Opportunities

– Quality and Rework

Ø Document the Process

– Cost and Time

– Value Data

Ø Carefully resolve any inconsistencies

– Existing -- New Process

– Ideal -- Realistic Process

DEVELOP AND COMMUNICATE THE VISION OF CURRENT PROCESS

Ø Communicate with all employees so that they are aware of the vision of the future
Ø Always provide information on the progress of the BPR initiative - good and bad.
Ø Demonstrate assurance that the BPR initiative is both necessary and properly managed
Ø Promote individual development by indicating options that are available
Ø Indicate actions required and those responsible
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Ø Tackle any actions that need resolution

Ø Direct communication to reinforce new patterns of desired behavior

IDENTIFY THE ACTION PLAN

Ø Develop an Improvement Plan

Ø Appoint Process Owners
Ø Simplify the Process to Reduce Process Time
Ø Remove any Bureaucracy that may hinder implementation
Ø Remove no-value-added activities
Ø Standardize Process and Automate Where Possible
Ø Up-grade Equipment
Ø Plan/schedule the changes
Ø Construct in-house metrics and targets
Ø Introduce and firmly establish a feedback system
Ø Audit, Audit, Audit

EXECUTE THE PLAN

Ø Qualify/certify the process

Ø Perform periodic qualification reviews
Ø Define and eliminate process problems
Ø Evaluate the change impact on the business and on customers
Ø Benchmark the process
Ø Provide advanced team training

Problems in BPR

Ø Process Simplification is Common - True BPR is Not

Ø Desire to Change Not Strong Enough
Ø Start Point the Existing Process Not a Blank Slate
Ø Commitment to Existing Processes Too Strong

o REMEMBER - “If it ain’t broke …”

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Ø Quick Fix Approach

Ø Process under review too big or too small
Ø Reliance on existing process too strong
Ø The Costs of the Change Seem Too Large
Ø BPR Isolated Activity not Aligned to the Business Objectives
Ø Allocation of Resources
Ø Poor Timing and Planning
Ø Keeping the Team and Organization on Target

Reasons for BPR Failures

Ø Lack of support from senior management

Ø Poor understanding of the organization and the infrastructure
Ø Inability to deliver necessary technology
Ø Lack of guidance, motivation and focus
Ø Fixing a process instead of changing it
Ø Neglecting people’s values and beliefs
Ø Willingness to settle for marginal results
Ø Quitting too early
Ø Allowing existing corporate cultures and management attitudes to prevent redesign
Ø Not assigning enough resources
Ø Working on too many projects at the same time
Ø Trying to change processes without making anyone unhappy
Ø Pulling back when people resist change

9.6 QUALITY MANAGEMENT

Quality
Quality is defined in several ways and several quality Gurus have given definitions of
quality from different dimensions.
But when we look into the most of these definitions, we can find some common terms
like “fitness for the purpose”, “right first time”, “customer satisfaction”, “conformance to
requirements”, “value of money”, “customer delight”, “customer satisfaction” etc.
Some of the popular definitions of quality are discussed below.
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Quality is defined as fitness for the purpose at reasonable cost. —Joseph M. Juran
Quality is conformance to requirements. —Philip B. Crosby
Quality is totality of features and characteristics of a product or service that bears on its ability
to meet stated or implied needs. —. ISO 8402
Quality Management
Quality Management is a management approach that originated in the 1950s and has
steadily become more popular since the early 1980s. Total quality is a description of the culture,
attitude and organization of a company that strives to provide customers with products and
services that satisfy their needs. The culture requires quality in all aspects of the company’s
operations, with processes being done right the first time and defects and waste eradicated from
operations.
Quality Management is a method by which management and employees can become
involved in the continuous improvement of the production of goods and services. It is a
combination of quality and management tools aimed at increasing business and reducing losses
due to wasteful practices.
Quality Planning
Quality, like any other management function of business must be managed
strategically. Many quality improvement efforts focus solely on quality improvement tools and
the methodology to improve specific processes and ignore their impact on the overall business.
Hence the relationship between quality, productivity and profitability relationship is very
important.
Productivity improvements can be achieved through quality improvement efforts. By
shortening cycle time efforts incurred during production of products or services, the total
manufacturing costs are reduced. Eliminating errors or non-conformance, not only within the
organization, but also with any externally supplied material or services from different vendors
reduces costs further. Increased quality increases the productive use of facilities, machinery and
personnel. Improved quality of materials used in the process reduces scrap, rework and inventory
costs. Improved quality reduces assets required to support business operation. Reducing waste,
rework, non-value-added activities lowers overall service and support costs for an organization.
Profitability improvement is the result of increased quality and productivity. Increased
sales often results from improved delivery, reduced cycle time, increased reliability, and
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improved conformance to requirements. It is also possible to reduce selling price as result of

productivity and quality improvements, thereby increasing sales. In fact today, many customers
in several industries like automobile, consumer electronics, airlines, etc. are demanding annual
price reductions. Reducing manufacturing costs because of less errors, lower scrap and rework
costs, savings from the elimination of non-value added and redundant operations, all improve the
gross margins for the organization. Thus, increased quality and productivity will result in
increased competitiveness. Increased customer satisfaction leads to higher retention rates for
existing customers as well as attracting new customers and thus expanding the market share.
Hence quality planning becomes extremely important for the organization.
Quality planning should include the following steps:

· Developing Quality Strategy

· Establishing Quality Goals and Objectives
· Identifying Specific Quality Initiatives
· Implementing Action Plans

Quality Control
This includes activities related to:
· Identifying quality parameters so that no compromise is made on quality.
· Identifying units of measurement so as to ensure continuous and uniform size of the
product being manufactured and processed.
· Setting standards to ensure and enforce quality control.
· Measuring actual performance in order to keep utmost standards of quality.
· Taking corrective actions for any deviations in the quality to ensure uniformity and
assurance of quality
Quality Implementation
Quality implementation can be understood as follows:
Implementation of quality management is not an easy task and requires huge efforts and
energy as well as total involvement of employees at all the levels. It may also need major
changes in the organizational set-up.
The general steps involved in implementing quality management are explained below:
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· Collection and study of literature to understand the various facets of total quality
management and studying company’s situation.
· Interacting with outside professionals/consultants through workshops, seminars or training
programs and visits to other companies.
· Organizing an appreciation workshop for the top management and senior Notes
management in the company.
· Declaration of the intention of the CEO to introduce quality management in the company.
· Establishing a quality council or steering committee with clear cut mandate for directing
the company to achieve total quality.
· To constitute a working group to lay down the company’s corporate quality policy.
· Ensuring the communication of the quality policy to each and every person in the company
through training, newsletters, pledge cards, etc.
· To create an organizational framework in terms of assignment of quality management
responsibility to individuals. The person directing quality management activity should preferably
be at senior level.
· Preparation of a training plan to influence the attitudes of managers, supervisors and
workers in all functional areas of the company
· Conducting quality awareness training/workshops covering all employees.
· Formation of site steering committees and promotion programs giving records of priority
items at the unit level.
· Establishing quality improvement teams to identify, analyze and solve important quality
problems and to encourage cross – functional management.
· Training of quality management teams in problem-solving approach, tools and techniques.
· Initiation of small group activities such as a quality circle, work group and so on.
· Establishment of the organization-wide quality circles for implementation.
· Training of quality circle facilitators, leaders, members on approach, tools and techniques.
· Designing and implementing a system for recognition and reward-based evaluation of the
projects taken up by quality improvement teams and quality circles.
· Institutionalization of quality circles by documenting experience and registration of quality
circle projects.
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· Functional or divisional quality management workshops to identify inputs, suppliers,

outputs, and customers internally.
· Setting up of operational and control measurements and standards including benchmarking.
· Complete review of documentation processes and quality records.
· Identifying problem areas and weaknesses and upgrading the system to meet requirements
of ISO 9000 quality system standards.
· Simultaneous implementation of the systems and documentation process, procedures, and
job instructions relating to contract review, design, procurement, process control, product
identification, inspection, and tests, non-conforming products, packaging and storing, after sales
service and preparation of quality manuals in accordance with ISO 9000.
· Working out specific quality cost measurement system and integrating it with the
company’s existing financial management systems.
· Conducting quality review, follow-up, and quality audit by involving top management on
quality policy implementation, quality systems analysis of operational problems and cross –
functional effectiveness.

SUMMARY
 Office automation is the application of computer and related technologies like
communication and networking to integrate the general office tasks so that the
efficiency of office work is improved.
 Desktop Publishing (DTP) is another popular office technology, used widely
for generation of documents using computers and laser printers. This office
automation technology is used to produce a high-quality document for
commercial printing.
 The basic objective of using dictation systems is to utilize the maximum time
of stenographers, so that they need not have to wait when dictating person
thinks while dictating.
 Facsimile telegraphy, commonly known as Fax, is the most widely used office
automation system for transmitting images of documents and
photographs/graphics from one location to another through a telephone line.
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 Electronic mail (e-mail) is most widely used technology for sending messages
or documents from one location to another by using electronic workstations or
computers.
 Teleconferencing systems are the latest office automation technologies for
conducting meetings of widely separated people through a communication
channel. These systems enable people to communicate audio, video or image
information in a conversation taking place between two or more locations.
 Organizations are human systems and their system structure includes the work
culture, beliefs, and mental models of their leaders and members.
 Change management process helps to define the steps necessary to achieve the
desired changes and desired outcomes. The change management process is the
sequence of steps or activities that a change management team or project
leader would follow to apply change management to a Notes project or
change.
 Quality Management is a management approach that originated in the 1950s
and has steadily become more popular since the early 1980s. Total quality is a
description of the culture, attitude and organization of a company that strives
to provide customers with products and services that satisfy their needs.
 An excellent tool for strategic quality planning is the Japanese planning model
popularly known as “HoshinKanri”. HoshinKanri is a methodology for
planning, implementing and reviewing quality plans that are critical to the
business.
Short Answer Questions
1. What is office automation?
2. What are the needs for office automation?
3. What are the three different types of typewriters?
4. What are teleconferencing systems?
5. What is BPR?
6. Discuss some of the common pitfalls of BPR.
7. What is quality management?
8. List some of the activities involved in quality control.
9. What is technology transfer?
10. What are the uses of technology transfer for the host country?
Long Answer Questions
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1. What are the office functions that need to be automated? Discuss the different types of
office automation systems.
2. What are the different types of communication systems? Discuss some of their advantages
and disadvantages.
3. What are the advantages and disadvantages of office automation?
4. What are the different stages in the implementation of BPR?
5. What is quality planning? Discuss the steps involved in quality planning.

Further Readings
Graynor, Gerard H., (1996), Handbook of TechnologyManagement, McGraw Hill
Szakonyl, Robert, (2008), Handbook of Technology Management,Viva Books Private Limited
M.Khalil, Tarek., (2003), Management of Technology, McGrawHill
Betz Frederic, (1996), Strategic Technology Management,McGraw Hill
Khurana, Vijay Kumar, (2007), Management of Technology andInnovation, Ane Books India
Susan Curran, H. Mitchell (1982) Office AutomationAn Essential Management Strategy, Palgrave
Macmillan UK
AvinashMalekar(2021) Learn Everything about Factory AutomationPractical Lessons on PLC, HMI,
VFD, ServoProgramming and Machine Automation

Lesson 10 Collaborative Innovation

Content

10.1 Collaborative Innovation

10.2 How Business Leaders Can Foster an Innovative Work Culture

10.2.1 What is an innovation-friendly work culture?

10.2.3 How to create a culture of innovation?

10.3 Eight ways that you can increase knowledge sharing within your organization:

10.4 Leverage the Benefits of Collaborative Learning to Enhance Learner Performance

10.4.1 Different Types of Collaboration

10.4.2 Five Steps for Successful Collaboration

10.5 Eight Ways to Build Collaborative Teams

10.6 Collaboration Conundrums

10.6.1 Business and Government Relations

10.7 Types of Business Responses

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10.8 Tactics That Businesses Use to Influence Government

10.9 Preferences of funding sources

10.9.1 Demand for expanded capacity

10.9.2 Division of labor to complete tasks in a timely fashion

10.9.3 Ability to share resources

10.9.4 Opportunity to learn about other disciplines

10.9.5 Risk management

10.9.6 Opportunity to engage in collegiality

10.9.7 Opportunity to lend credibility and validity to project

10.10 Technological advances facilitating communication

10.10.1 Impact on RCR

10.10.2 What are the Four Asian Tiger

10.10.3 Overview of Four Asian Tigers

10.10.4Reason for Economic Growth of Four Asian Tigers

10.10.5The Four Asian Tigers and Financial Crisis

LEARNING OBJECTIVES

After studying this lesson you should be able to

 Understand how the adoption of technology take place in an organization

 Study how the management succeeds in overcoming resistance to new technology by the
workers
 Grasp the different approaches used for adoption technology

LEARNING OUTCOMES

 Upon completion of the lesson students are able to demonstrate a good understanding of
 Recall collaborative innovation environment
 Explain organization foster an innovative work environment
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 Organizations offer a wide variety of spaces for increasingly casual exchanges

 Define collaborative knowledge and explains its benefits
 Concept of intensive industry requirement
 Business and government relations
 Determine innovation in the context of developing countries
 List out strategies of the BRIC countries

OVERVIEW

You have learnt about the technology cycle and understanding the technologies changes which
take place along with the response meted out to tackle these technological changes

In this lesson we will learn about the adoption of technology how to overcome resistance ti its
adoption and the difference approaches used to facilitate the adoption of technology

So we advise you to study carefully and learn the concepts described in this lesson with your full
and through concentration

10.1 Collaborative Innovation

1.This sort of innovation takes place in collaboration with clients, suppliers, universities,
research houses, intermediaries and other partners in a collaborative way with shared ideas, but
envisioned goals. Learn more in: Open Innovation: Reaching Out to the Grass Roots Through
SMEs – Exploring Concerns of Opportunities and Challenges to Attain Economic Sustainability

2.Knowledge or products are created cooperatively by members of a virtual team, bringing

together various individuals and enterprises with complementary ideas, knowledge and skills.
Learn more in: Creating Business Opportunities Based on Use of Electronic Knowledge
Business Models

3.Knowledge or products are created cooperatively by members of a virtual team, bringing

together various individuals and enterprises with complementary ideas, knowledge and skills.
Learn more in: Creating Business Opportunities: Using Business Model Innovation Method to
Enhance Online Knowledge Trading
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4.The innovation process involving several human individuals as creators. The collaboration is
either intra- or inter-organizational (open), depending on whether the individuals belong
respectively to the same organization, or to different organization(s). Learn more in:
Contribution of Social Capital to Innovation: The Mediating Role of Knowledge Embedded in
Social Networks

5.Process of managing the interaction and collaboration of multiple partners to deliver new
solutions within a business ecosystem. Learn more in: Becoming Smart, Innovative, and Socially
Responsible in Supply Chain Collaboration

6.Process of managing the interaction and collaboration of multiple partners to deliver new
solutions within a business ecosystem. Learn more in: Becoming Smart, Innovative, and Socially
Responsible in Supply Chain Collaboration

7.Innovation process involving collective learning. Learn more in: Challenges to Firms'
Collaborative Innovation Facing the Innovation Babel Tower

8.Process in which multiple participants jointly develop new products with customers and
suppliers. Learn more in: Digital Innovation With Social Impact: The Case of ColorAdd

9.Is an approach in which different groups or parties work together to solve a common goal by
having a collective vision and sharing ideas, information and work. Learn more in: Implementing
Participatory Sensing in Environmental Mobile Applications

10.Acyberteam of self-motivated people with a collective vision, enabled by the Web to

collaborate in achieving a common goal by sharing ideas, information, and work. Learn more in:
Exploiting Technological Potentialities for Collaborative New Product Development

10.2 How Business Leaders Can Foster an Innovative Work Culture

If there’s one thing that sets a successful organization apart, it’s the ability to stay on the cusp of
innovation and technology.

Creating an innovation-friendly work environment was one of the top priorities on my

entrepreneurial journey. With that realization came the understanding that I would need to face
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the challenges, as well as the chance that I might make some mistakes along the way. Failure is,
after all, an important part of the process.

The tactics I’ve used to create an innovation-friendly work environment have proven to be a
productive ground for success. Now I’m paying it forward and sharing the lessons I have learned
with you

10.2.1 What is an innovation-friendly work culture?

An innovation-friendly culture is the kind of work environment that encourages its employees to
embrace unorthodox thinking rather than discouraging them from it. To nurture an innovation-
friendly culture means putting the status quo aside and challenging typicality to create something
new. It means empowering your employees to provide value to your company in ways other than
punching numbers and updating spreadsheets at a desk.

Your employees will look to you for leadership and mentorship, so it’s important that you guide
them on a more creative path and show them what a healthy and idea-centric work culture is.

On the contrary, strict management is the death of creativity. Many organizations have a
crippling work culture where they penalize rather than reward boldness, while also failing to
cultivate an environment that promotes creativity and innovation. Thus, they eliminate any
chances of breakthrough ideas and promising success.

10.2.2 The importance of an innovation-friendly work culture

Innovation-friendly work culture is an expression of ideas and behaviors. It’s easy for businesses
to take the simplest route and repeat their business processes as it allows them to scale smoothly
and predictably, but this also comes without any promise of explosive growth or the creation of
groundbreaking concepts. Incorporating a culture of innovation means taking risks and being
unpredictable with a chance to reap huge rewards — which is why it is not all that common in
organizations today.

To make things run smoothly, most businesses favor what they know, standardization and doing
things simply. Innovation, however, takes the road less traveled. As rationality doesn’t select
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innovation, it can be considered risky, but following the safe low-risk route will not help you
build a unicorn company and change the status quo.

An innovation-friendly organization is an amalgam of culture, methodologies, infrastructure and

healthy work practices. It prompts employees to think outside of their nine to five mentality,
giving real value to their roles.

Leaders in an organization that encourage this kind of culture understand that innovation drives
growth, and a workforce can only achieve this with a growth-positive attitude and shared passion
for operating outside the norm.

10.2.3 How to create a culture of innovation?

With technological advancements popping up in every sector of industry, there has never been a
better time and a more urgent need to incorporate an innovation-friendly culture in your
organization.

You must develop a culture that kindles a passion for new knowledge and bold ideas, paving the
way for more creativity to flow through. Make innovation culture an important part of your
company’s DNA and let it act as a framework for every corporate activity.

Here are some ways you can foster an innovation-friendly work culture:

1. Encourage new ideas

To cultivate a culture of innovation, you must encourage action on creative ideas. Let your
employees feel valued, like they have some autonomy in the idea creation process. They should
be able to feel safe to share bold or crazy ideas that come to their mind. Trust your team to find
new ways to solve problems.

2.Create a safe place to fail

If you’ve never failed, you’ve never taken chances. Taking risks is a big part of innovation. You
have to remind your employees that failure is inevitable and every idea has a degree of
uncertainty, and you can do this by creating a safe environment where you encourage your team
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to test their innovative ideas and even make mistakes that do not cost the company a huge
fortune. The important thing is to learn from your mistakes to ensure that you don’t fail the same
way twice.

If you hold back on ideas because of the fear of failing, you’ll stay confined to the monotony of
the status quo and your business will never make any significant leaps. The important thing to
remember is to recover and try again.

3.Encourage healthy competition

You can hold pitching contests for your employees and develop new ideas that they will be asked
to present in front of management. This will instill a sense of confidence in them whether they
win or not. Healthy competition is an interesting way to train your employees for pitch meetings.
The winning idea can be rewarded as well, but the real reward would be the skills they picked up
in the process along the way.

4.Workshops

Through workshops, employees can be directly involved in the creative process and work in
teams to develop new ideas and solutions. Not only will this cultivate team spirit, but it will also
encourage employees to be on their best game and commit to delivering.

5.Learning through trial and error

One of the most useful forms of learning — trial and error — allow us to analyze our failures
and figure out what’s needed to make that necessary change. Then you try again with a better
mindset, knowing what works and what doesn’t. In fact, one of my favorite job interview
questions is a failure story and lessons learned.

6.Don’t be afraid to execute your idea

Innovation is not recognized until you implement your ideas. To execute on top of these ideas,
you need to empower your employees with a morale boost and the right budget and tools
dedicated to bringing such innovative ideas to life. Strategize a clear action plan for execution
and go for it.
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7.Embrace positive thinking

This is one of our fundamental principles at 3DLOOK (and one of my main personal principles
as well), because as an entrepreneur, I’m always an optimist. Through trial and error, we were
able to persevere by embracing a positive outlook in anticipation of making the world better and
transforming the industry that we work in — that is what kept us going. Diving into innovation
with a positive attitude will allow you to take on new challenges and rise above any self-limiting
beliefs.

innovation is the foundation of growth. With that said, innovation doesn’t stop with one good
idea. There is a lot of hard work that goes into establishing an innovation-friendly environment.
It requires the input of the leaders and employees and a clear execution plan for the successful
implementation of these creative ideas. The goal should be to create a future-oriented atmosphere
with employees hungry for opportunities to grow and improve within the organization. This will
ultimately help the business succeed.

Set an example for your team. Prepare them always to hit the ground running and never to shy
away in the face of adversity. Encourage your team to be courageous with their ideas and tread
unchartered waters. Mold their mindsets to embrace failure and use that to be bolder with their
next steps. Build an appetite for better ideas and never settle for anything less than bold.

Whether you have an unorganized heap of knowledge or a knowledge hoarding problem, many
organizations fall flat when it comes to knowledge management strategies. When individuals
struggle to access information, they need to perform their jobs to the best of their abilities, your
company’s bottom line suffers.

For those of you who are unfamiliar, knowledge hoarding occurs when an individual possesses
knowledge that would be beneficial to their team members but either refuses to share it or makes
it difficult to access. While it sounds spiteful, it’s actually more common than you might think,
and it is a massive detriment to productivity for any organization experiencing it. Knowledge
hoarding causes distrust amongst your team, kills any efforts being made to increase
collaboration, and costs your company valuable time and money.
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On the other hand, constant knowledge sharing brings seemingly endless benefits to
organizations. Knowledge sharing increases social interaction in the workplace, leads to a rise in
creative problem solving, preserves pre-existing knowledge so it is not lost as employees retire
or move on, and enables every department to access the information they need, when they need
it, therefore speeding up response times.

10.3 Eight ways that you can increase knowledge sharing within your organization:

1. Create a knowledge sharing space

Whether you and your team work from the same office, are fully remote, or have adopted a
hybrid work model, it’s important to establish physical and virtual spaces that are conducive to
knowledge sharing. You’ll want to consider:

 Spaces for real-time collaboration: Employees should be enabled to work together on

projects, brainstorm together, and engage in other activities that require real-time
collaboration. In an office, this might mean having designated meeting rooms that team
members can book. In a remote or hybrid environment, this might involve
videoconferencing software like Zoom, a real-time chat platform like Slack or Microsoft
Teams, or a virtual whiteboard solution like Miro.
 Spaces for asynchronous collaboration: Real-time collaboration isn’t always practical or
the best option for certain activities, especially when team members are working from
different locations and on different schedules. Giving employees tools for asynchronous
collaboration ensures that people can continue working together and sharing knowledge
even when their calendars don’t align. For example, team members might record a video
of themselves giving project updates or presenting on recent learnings at a conference
and then share the video to a knowledge management platform so that their colleagues
can watch it when they have time.
 Spaces for team building: Team building activities help coworkers get to know one
another on a human level, which strengthens trust and increases their sense of
psychological safety so that they’ll be more comfortable sharing their knowledge. While
many teams prefer to gather in the same place for team building activities (when it is safe
to do so), it’s also possible to translate these activities to a virtual environment. For
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example, teams might choose to start virtual meetings with an icebreaker question, make
small talk with co-workers in a “watercooler” Slack channel, or share pictures of their
pets or home office setups.

Of course, when team members can get together in the same office, it’s important to think about
how the layout of the physical space influences collaboration and knowledge sharing.

Building a space that encourages collaboration doesn’t have to be a full-blown remodel. Here are
a few examples of easy fixes to make your office space social-friendly:

 Coffee stations: Set up several coffee stations throughout the office, and not just in the
kitchens. Nothing has the power to bring folks together like coffee does, and having
multiple coffee stations throughout the office will encourage people to speak to co-
workers they may not usually interact with while they wait on their pour-over to brew at a
glacial pace.
 Conference rooms: Who says conference rooms have to consist of one large table that
demands everyone sit in a nice, neat, rectangle? Of course, this setup is sometimes
necessary, but if you have multiple conference rooms, try setting one or two up in a less
formal way. Have several smaller tables with groups of chairs around them, and maybe
some couches. Not every conference is a stuffy, round-table discussion, so provide a
space that allows for something less formal.
 Casual seating in common spaces: How many times have you passed a co-worker in the
hallway without so much as a “How’s it goin’?” By placing cafe tables and casual group
seating in high-traffic common spaces, team members will be more likely to sit down and
have a quick chat with coworkers in passing.

2. Lead by example

If you are an executive or a team or department leader, your actions and attitude will be noticed
and modeled by many. Use a lot of positive reinforcement when employees share information
that is beneficial to the organization, and be open in terms of sharing your own knowledge. For
instance, if you have a centralized knowledge sharing platform, you might publish monthly video
updates or write-ups.
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It’s also important to be transparent and make it clear why you’re creating a knowledge
management framework and encouraging others to share what they know. Highlight examples of
successful knowledge sharing and show employees the impact it has had on specific projects and
business goals. If people understand how their work will contribute to a larger project, they will
feel more valued and will be more likely to offer creative and insightful solutions.

3. Incentivize knowledge sharing

Everyone loves being rewarded, and we are not above bribery. There are many different ways to
reward team members who embody your company’s knowledge sharing culture. The incentives
you offer should fit with your company culture, but some ideas might include:

 Recognition through shoutouts: Provide a shoutout in the form of an email, post, or

announcement when you notice a team member contributing something valuable that will
benefit the company. Specify exactly what the content was, and some tangible ways
everyone will benefit from the contribution.
 Tangible prizes: Give small prizes like t-shirts, water bottles, and other swag to team
members who are demonstrating excellent collaboration skills. Consider giving a bonus
to the employee who shares the most highly utilized piece of content every quarter, or
every year.
 Performance reviews: If employees know that sharing their knowledge is an expected
part of their job that they are being measured on, they will be more likely to share. If you
have a knowledge management platform, you might set an expectation that employees
share and update certain documents or information on a quarterly basis, or just ask that
they contribute or comment at least once a week. The key performance indicators you set
should be specific, measurable, and should feel reasonable and achievable to all.
 Professional development: For some roles, sharing knowledge might be a path to
promotion. In these cases, knowledge sharing expectations should be clearly spelled out
and baked into performance reviews. When employees earn a promotion, make it clear
how the knowledge they shared played a role and how it has impacted the company.

Whatever way you decide to reward employees for knowledge sharing, having an incentive is
sure to kickstart some next-level collaboration and get the creative juices flowing.
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4. Make knowledge sharing as easy as possible

Encourage employees to share knowledge by eliminating potential barriers. Not everyone is

good at writing or otherwise packaging information for others. In some cases, someone will have
knowledge that is important enough that it makes the most sense for someone else to extract it
from them. There are many ways to do this, including through an informational interview,
summarizing existing emails and documents, or even filming a demonstration.

You might also use a Q&A tool in your knowledge management platform to allow subject matter
experts to publish answers to questions that other employees have asked. This ensures that they
only have to answer the question one time (rather than fielding many one-off requests), and all
employees benefit from the information they have shared.

5. Revamp you’re training and onboarding methods

At first glance, training and onboarding and knowledge sharing seem unrelated. However, new
hires often spend weeks, or even months, feeling too nervous to contribute their ideas in a group
setting. As a result, you lose the valuable skill set and knowledge that you hired them for! Here
are a few suggestions to get your new hires contributing and collaborating on the first day:

 Give each new hire a mentor: Cultivating a successful mentor/mentee relationship has a
BIG positive impact new hires. To know that there is someone they can go to with their
questions, free of judgement, is a major confidence-booster and empowers new hires to
speak up when they’re not following.
 Job shadowing: Choose another team member (who is not the new hire’s superior) that
exemplifies knowledge sharing and collaboration and allow the new hire to shadow them
for a day or two as they work. Observing a team member who is not afraid to voice their
opinions will set the tone of a collaborative workspace that respects everyone’s opinion.
 Ask new hires for their input: A great way to make a person feel that their input is not
valued is to never ask for it. Don’t assume they don’t want to contribute just because they
are new! Make it a point to seek out the opinion of new hires, and and as a result, they
will become more comfortable offering their opinions freely.

6. Identify and direct knowledge sharing energy

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People share what they know in many ways–through emails, hallway conversations, messaging
apps, and meetings. Identify people throughout the organization and department who are excited
about documenting this knowledge, and ask them to make suggestions about how and where this
content should be shared. By getting them involved in your knowledge sharing initiative, they
will feel more invested in its success and can help champion the initiative throughout the
organization.

7. Build a knowledge library

As knowledge sharing becomes a part of your company culture, it’s essential to preserve all that
great shared knowledge so that current and future employees can benefit from it. Make it as easy
as possible for employees to document their knowledge and subject matter expertise so that it
becomes habit. For instance, you could develop simple templates for team members to document
certain types of knowledge, or you could give them the option to capture their knowledge in the
medium that makes the most sense to them, whether that’s through a video, slide deck, write up,
or other format.

You’ll also need a place to preserve all this shared knowledge and make it searchable, no matter
what format it’s captured in. And that brings us to our final tip.

8. Encourage the use of knowledge sharing tools

Last but not least is selecting a knowledge management platform. Ever find yourself repeatedly
answering the same question? Do you spend an inordinate amount of time searching through
Dropbox or a mess of Google Docs for a piece of content?

The right knowledge management software will allow you to easily and quickly search for
content, ask questions, locate experts, store documents and videos, streamline your training and
onboarding process, and encourage everyone from interns to CEOs to contribute ideas. A cloud-
based knowledge management platform also allows team members to collaborate, share ideas,
and stay aligned around the same information even when they’re not working in the same office.
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Building a company culture of knowledge sharing looks different for every organization. Use
these tips as a launch pad, and your organization will be on its way to maximizing the impact of
every single team member’s valuable contributions. Good luck!

9 Major Benefits of Collaborative Learning

Collaborative learning has been slowly on the rise, but the COVID-19 pandemic has put it in the
spotlight as more organizations and schools go remote. Though life will go back to normal post-
pandemic, technology has undoubtedly made a lasting impact on how we live and learn.

One thing that is certain to continue long after the pandemic passes is online collaborative
learning. While passive remote learning practices have been widely panned, thoughtfully
planned peer learning is likely to be the future of online education.

The emergence of peer learning is excellent for both instructors and learners. Data tells us some
of the benefits of collaborative learning include higher-performing students and more engaging
lessons. Here are four of the most significant benefits of collaborative learning and the science
behind them.

10 Improved Knowledge Retention

The National Autonomous University of Mexico studied second-year medical students’ grades
and found learners are more likely to retain information when consuming training materials in a
collaborative learning environment.

Simply giving students or employees the information they need isn’t enough. Learning doesn’t
occur unless the information is preserved and applied by learners in the future. Without that,
classes are just busywork.
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In the University of Mexico study, grades were “significantly higher,” suggesting “that the
collaborative approach to teaching allowed a more effective understanding of course content,
which meant an improved capacity for retention of human physiology knowledge.”

Like the University of Mexico study, Dartmouth College also found strong evidence for
enhanced knowledge retention via collaboration. In the study, students who tutored other
students had a better understanding of and a positive attitude towards the material. Improved
knowledge retention makes for more confident and empowered learners who can become better
teachers themselves

Another way to tap into this benefit is through the peer-review process. Students or co-workers
can submit their work and review their peers’ submissions. They benefit not just from a nuanced
critique of their work but also from the retention-enhancing effects of performing a
comprehensive knowledge-based assessment of their peers’ work

11 Development of Higher-Level Thinking Skills

Collaborative learning promotes higher-level thinking

One analysis of STEM classroom instruction found that students who learned via traditional
passive lectures were 1.5 times more likely to fail than those who participated via more active
methods. Researchers asked students to cite the reason for their poor performance. “Difficulty
with the subject matter” was a frequent answer.

Collaborative learning can help students who are struggling to understand learning materials. For
example, discussion boards can create a safe place for students to ask and answer each other’s
questions. These discussions encourage deep collaborative learning and enrich the learning
process. For many, these discussions could be more exciting or easier to understand than the
course material you’ve laid out for them.

While many learners think they understand the information after a single presentation, their
understanding is superficial. Collaborative learning requires them to access lower-level learning
functions like recall and repetition but also higher-level ones like evaluation and creation. In the
course of collaborative learning, students must apply concepts to new situations, assess other
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students’ understanding, and use the material to solve problems in conjunction with their peers.
In addition to strengthening their mastery over the material, they enhance their critical-thinking,
problem-solving, and communication skills.

12 Stronger Ownership Over Assignments

Studies have found that collaborative peer learning boosts individual accountability in an
educational setting. In collaborative environments, students are more motivated to do their part
because others are also directly impacted by their performance.

One study, published in the Journal of Technology Education, found that students who studied
for a critical-thinking test in a collaborative learning environment performed significantly better
than those who studied individually. Their grade was based on two components: how well they
performed separately and how well their study group performed. Students were motivated not
just to do their work well for their own benefit but also for the benefit of the entire group.

Successful collaborative learning has an element of positive interdependence — the idea that our
wins or losses are shared. According to one study, “when members clearly understand positive
interdependence, they understand that each group member’s efforts are required for success of
the group.”

You can create a community of peer-driven learning and development that also provides
accountability at the individual level. This sense of belonging to an organization or team makes
individuals realize their impact on the larger group.

Along the way, learners also pick up critical soft skills that are difficult to teach directly.
Working together in a collaborative environment requires a more advanced skill set than merely
taking a course does. As people learn new concepts in a team-based environment, they inevitably
develop higher-level thinking skills like communication, conflict resolution, and leadership.
These are skills that translate well to any role.

13 Higher Course Completion Rates

Virtual learning is isolating — as opposed to a classroom or office environment, virtual learners

often learn alone, interacting only with a computer. It’s impersonal and not engaging.
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Collaborative learning techniques are a logical way to combat this phenomenon and keep
learners engaged accountable, and on track for completion.

The isolation caused by remote learning can lead to depression, anxiety, or merely a lack of
engagement with the course materials. All of these threaten course completion rates. It’s no
surprise then that studies have shown that low completion rates in Massive Open Online Courses
(MOOCs) are largely caused by unmotivated and disengaged learners.

As stay-at-home orders due to COVID-19 have led to more virtual and self-directed learning and
development, these challenges have become more prominent. It’s up to individual learners in
their own homes to stay on task.

Collaborative environments combat some of the loneliness and isolation that come with a remote
setup. Rather than learning in a silo, participants can lean on and help one another as they face
obstacles along the way. This teamwork helps troubleshoot issues with using the course itself
and promotes more in-depth learning in a group environment.

10.4 Leverage the Benefits of Collaborative Learning to Enhance Learner Performance

Collaborative learning has a ton of benefits for both instructors and learners, but it’s still
nowhere near as popular an online model as passive lectures, videos, and quizzes. This is
because, unlike passive learning, collaborative learning takes pre-planning and a thoughtful
approach. You need to develop the right strategies to keep students engaged and the right tools to
facilitate those activities.

10.4.1 Different Types of Collaboration

There are a two main types of collaboration that you can use, depending on what you hope to
achieve. These are:

1. Open collaboration. You invite people from inside or outside the business to generate
ideas or to solve a problem. Open collaborations work best for big, wide-ranging
challenges as they allow anyone to respond. This enables you to access a diverse
spectrum of opinion and expertise.
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2. Closed collaboration. Closed modes work best when you have a specific problem to solve
which requires specialist skills or knowledge. As a result, closed collaborative groups
tend to be much smaller than open ones.

Other types of collaboration include:

 Cross-functional collaboration. This involves working with people who have different job
functions (marketing, technology, or customer service, for instance) to achieve a
common goal.
 Cross-cultural collaboration. Here, you work with people from other countries or
cultures to learn more about different markets and encourage innovation.
 Virtual collaboration. In the wake of the COVID-19 pandemic, working from home has
become the norm for many organizations. Apps like Skype™, Slack ™, Asana™,
Miro™, and Google Docs™ have made it easier than ever for people to come together
and collaborate, even if they work in different offices or countries.

10.4.2 Five Steps for Successful Collaboration

While good collaboration can result in new and creative ideas and discoveries, poor
collaboration can be more damaging than no collaboration at all – it can waste time, energy,
money, and resources. Use this five-step approach to make sure your collaborations are
successful:

1. Define Your Purpose

First and foremost, you need to have a strong shared purpose. Only when you know what you're
working toward can productive collaboration begin.

So, before you set up a collaborative project, take some time to identify and clarify what you
want the group to achieve. This will give people focus and direction.

2. Choose Open or Closed Collaboration

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Your choice will depend on the problem that you need to solve. If you want to get ideas for a
new product, for instance, you might want to invite responses from people across the business, as
well as your customers. If this is the case, open collaboration will likely be the most suitable.

A great example of successful open collaboration is Lego's Create and Share website. It allows
Lego community members to share their designs with each other and the company. When
support for an idea reaches 10,000, the company then evaluates it and produces it under its Lego
Ideas label.

In contrast, if your purpose is to perfect a product or process that requires specialist knowledge,
closed collaboration will likely work best. This is because you'll need to limit the number of
collaborators to only those who have specialist knowledge of the topic.

For instance, if you wanted to improve the efficiency of your production line, you might choose
to collaborate with an external machinery designer. This will ensure that you get exactly what
you want and may even result in a new innovation that gives you an edge on your competition.

3. Involve the Right People

Once you've set your goals, you need to identify the people who are best placed to achieve them.
This is particularly important when you use closed collaboration.

Think about people who have relevant expertise, experience and skills, or who are good at
challenging assumptions and can contribute different perspectives.

Although collaboration is about equal participation, it can be useful to elect someone to organize
and lead the project so that it stays on track. Assign roles within the group, too. Research has
shown that this encourages people to take responsibility, and avoids time being wasted on
negotiating responsibilities or "protecting turf." [3]

4. Achieve "Buy-In"

While some people will jump at the chance to collaborate, others may not be so keen. They
might see it as an imposition on their time, and be worried about the extra work or stress that it
could bring.
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So, before you ask someone to collaborate think about how it can benefit him or her. Identifying
the wider strategic goal, like fine-tuning a process to increase income, can be persuasive. But so
can outlining the personal benefits to individual collaborators, such as recognition, the
opportunity to learn new skills, career progression, or the chance of a bonus.

5. Encourage Collaborative Behavior

Collaboration can demand a lot from people. It means being open-minded, listening to other
people's opinions and putting personal agendas to one side. So, it's essential that you try to
encourage collaboration across your organization. You can do this by:

 Leading by example. People watch how you act . If you aren't afraid to listen to new
ideas and offer solutions – even when it makes you vulnerable – you'll encourage others
to do the same.
 Building trust. Collaboration can stall when people don't feel able to open up. Combat
this by setting up team-building activities, and encouraging people to give honest and
constructive feedback. This will help to strengthen team bonds, to create a sense of
shared responsibility and to give people the confidence to speak up.
 Harnessing different spaces. Set up fun, relaxed spaces in your workplace that invite
creativity and collaboration. For instance, meeting pods or "chill out" areas. This will
help to instigate "random collisions" or casual encounters between colleagues.
Alternatively, book conference rooms, arrange walking meetings , or allow people to
head off-site.
 Fostering a creative culture. Creative thinking underpins good collaboration. It can help
to drive innovation and allows you to avoid groupthink . Encourage this behavior by
making use of creativity tools and processes.

10.5 Eight Ways to Build Collaborative Teams

The Research
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Our work is based on a major research initiative conducted jointly by the Concours Institute (a
member of BSG Alliance) and the Cooperative Research Project of London Business School,
with funding from the Advanced Institute for Management and 15 corporate sponsors. The
initiative was created as a way to explore the practicalities of collaborative work in contemporary
organizations.

We sent surveys to 2,420 people, including members of 55 teams. A total of 1,543 people
replied, a response rate of 64%. Separate surveys were administered to group members, to group
leaders, to the executives who evaluated teams, and to HR leaders at the companies involved.
The tasks performed by the teams included new-product development, process reengineering,
and identifying new solutions to business problems. The companies involved included four
telecommunication companies, seven financial services or consulting firms, two media
companies, a hospitality firm, and one oil company. The size of the teams ranged from four to
183 people, with an average of 44.

Our objective was to study the levers that executives could pull to improve team performance
and innovation in collaborative tasks. We examined scores of possible factors, including the
following:

The general culture of the company. We designed a wide range of survey questions to measure
the extent to which the firm had a cooperative culture and to uncover employees’ attitudes
toward knowledge sharing.

Human resources practices and processes. We studied the way staffing took place and the
process by which people were promoted. We examined the extent and type of training, how
reward systems were configured, and the extent to which mentoring and coaching took place.

Socialization and network-building practices. We looked at how often people within the team
participated in informal socialization, and the type of interaction that was most common. We also
asked numerous questions about the extent to which team members were active in informal
communities.

The design of the task. We asked team members and team leaders about the task itself. Our
interest here was in how they perceived the purpose of the task, how complex it was, the extent
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to which the task required members of the team to be interdependent, and the extent to which the
task required them to engage in boundary-spanning activities with people outside the team.

The leadership of the team. We studied the perceptions team members had of their leaders’
style and how the leaders described their own style. In particular, we were interested in the extent
to which the leaders practiced relationship-oriented and task-oriented skills and set cooperative
or competitive goals.

The behavior of the senior executives. We asked team members and team leaders about their
perceptions of the senior executives of their business unit. We focused in particular on whether
team members described them as cooperative or competitive.

In total we considered more than 100 factors. Using a range of statistical analyses, we were able
to identify eight that correlated with the successful performance of teams handling complex
collaborative tasks. (See the sidebar “Eight Factors That Lead to Success.”

10.6 Collaboration Conundrums

Four traits that are crucial to teams—but also undermine them

Large Size

Whereas a decade ago, teams rarely had more than 20 members, our findings show that their size
has increased significantly, no doubt because of new technologies. Large teams are often formed
to ensure the involvement of a wide stakeholder group, the coordination of a diverse set of
activities, and the harnessing of multiple skills. As a consequence, many inevitably involve 100
people or more. However, our research shows that as the size of the team increases beyond 20
members, the level of natural cooperation among members of the team decreases.

Virtual Participation

Today most complex collaborative teams have members who are working at a distance from one
another. Again, the logic is that the assigned tasks require the insights and knowledge of people
from many locations. Team members may be working in offices in the same city or strung across
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the world. Only 40% of the teams in our sample had members all in one place. Our research
shows that as teams become more virtual, collaboration declines.

Diversity

Often the challenging tasks facing today’s businesses require the rapid assembly of people from
multiple backgrounds and perspectives, many of whom have rarely, if ever, met. Their diverse
knowledge and views can spark insight and innovation. However, our research shows that the
higher the proportion of people who don’t know anyone else on the team and the greater the
diversity, the less likely the team members are to share knowledge.

High Education Levels

Complex collaborative teams often generate huge value by drawing on a variety of deeply
specialized skills and knowledge to devise new solutions. Again, however, our research shows
that the greater the proportion of highly educated specialists on a team, the more likely the team
is to disintegrate into unproductive conflicts.

To answer that question we looked carefully at 55 large teams and identified those that
demonstrated high levels of collaborative behavior despite their complexity. Put differently, they
succeeded both because of and despite their composition. Using a range of statistical analyses,
we considered how more than 100 factors, such as the design of the task and the company
culture, might contribute to collaboration, manifested, for example, in a willingness to share
knowledge and workloads. Out of the 100-plus factors, we were able to isolate eight practices
that correlated with success—that is, that appeared to help teams overcome substantially the
difficulties that were posed by size, long-distance communication, diversity, and specialization.
We then interviewed the teams that were very strong in these practices, to find out how they did
it. In this article we’ll walk through the practices. They fall into four general categories—
executive support, HR practices, the strength of the team leader, and the structure of the team
itself.

Eight Factors That Lead to Success

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1. Investing in signature relationship practices. Executives can encourage collaborative

behavior by making highly visible investments—in facilities with open floor plans to foster
communication, for example—that demonstrate their commitment to collaboration.

2. Modeling collaborative behavior. At companies where the senior executives demonstrate

highly collaborative behavior themselves, teams collaborate well.

3. Creating a “gift culture.” Mentoring and coaching—especially on an informal basis—help

people build the networks they need to work across corporate boundaries.

4. Ensuring the requisite skills. Human resources departments that teach employees how to
build relationships, communicate well, and resolve conflicts creatively can have a major impact
on team collaboration.

5. Supporting a strong sense of community. When people feel a sense of community, they are
more comfortable reaching out to others and more likely to share knowledge.

6. Assigning team leaders that are both task- and relationship-oriented. The debate has
traditionally focused on whether a task or a relationship orientation creates better leadership, but
in fact both are key to successfully leading a team. Typically, leaning more heavily on a task
orientation at the outset of a project and shifting toward a relationship orientation once the work
is in full swing works best.

7. Building on heritage relationships. When too many team members are strangers, people may
be reluctant to share knowledge. The best practice is to put at least a few people who know one
another on the team.

8. Understanding role clarity and task ambiguity. Cooperation increases when the roles of
individual team members are sharply defined yet the team is given latitude on how to achieve the
task.

10.6.1 Business and Government Relations: How Do Government and Business Interact?

Since businesses are strongly affected by public policies, it is in their best interest to stay
informed about public policies and to try to influence governmental decision making and public
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policy. There are different general ways that businesses view and act on their relationship with
government. One perspective is for businesses to consider business and government on “two
sides” and in opposition to each other. Some have argued that this was the prevailing dominant
mainstream business view in the aftermath of the Great Recession at the end of the first decade
of the twenty-first century. It has been characterized as the “antiregulatory” or “limited
government” view, and it has been associated with those who believe that free markets with a
minimal government role is best for the workings of the economy. This perspective most often
focuses businesses’ interactions with government on efforts to minimize government and reduce
the costs and burdens on private business and the general economy associated with government
taxes, regulations, and policies.

Another business perspective on government is that government should favor businesses and
incentivize business performance and investment because businesses are the main source of jobs,
innovation, and societal economic well-being, and therefore government should support
businesses with grants, tax credits, and subsidies.

A third general view of businesses and government relations is with business in partnership with
government in addressing societal matters. This is in contrast to government being the regulator
to ensure businesses act in a socially responsible manner.

These views are not mutually exclusive. For example, the same solar business can use some of
its interaction with government to try to maximize the benefits, such as favorable tax credits, it
receives from government and at the same time work in partnership with government to achieve
a social purpose, such as reducing carbon emissions, and then try to minimize its tax obligations.
It is also important, as described by Pacific Gas and Electric (PG&E) CEO Peter Darbee
previously, that the focus of business and government relationships should be on the type of
policies required in response to societal challenges rather than an ideological response about the
proper role of government in a free market economy.

Sustainable businesses, such as the companies presented in the case study chapters in this
textbook—such as Stonyfield Yogurt, Oakhurst Dairy, and Green Mountain Coffee—tend to
focus on their responsibility to the environment and societal impact and also tend to recognize
that government policies and programs are often necessary to help them achieve their objectives
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and therefore are inclined to try to work with and even partner with government to achieve
desired ends. It is always important for sustainable businesses to understand how their efforts to
achieve profits and to serve a social purpose are both strongly influenced by government
policies, and it is always important for sustainable businesses to manage their relationships with
government (local, state, national, and international) effectively.

10.7 Types of Business Responses

Once a business has an understanding of how government affects their operations and
profitability, it can formulate strategies for how best to interact with government. There are three
general types of business responses to the public policy environment—reactive, interactive, and
proactive.

Reactive responses involve responding to government policy after it happens. An interactive

response involves engaging with government policymakers and actors (including the media) to
try to influence public policy to serve the interests of the business. A proactive response
approach entails acting to influence policies, anticipating changes in public policy, and trying to
enhance competitive positioning by correctly anticipating changes in policy. For most
businesses, a combination of the interactive and proactive approaches is the best approach.

In meeting challenges from nongovernmental organizations (NGOs) and the media, businesses
may respond in a variety of ways, including the following:

 Confrontation. It may aggressively attack either the message or the messenger, and in
extreme cases, business has felt justified to sue its critics for libel.
 Participation. Business may develop coalitions or partnerships with NGOs, as
McDonald’s did with the Environmental Defense Fund (EDF; see the following
discussion) or as Home Depot did with the Rainforest Alliance (see the following
sidebar).
 Anticipation. Business may adopt issues management programs to forecast emerging
issues and to adjust or change business practices in advance of the passage of stringent
laws or regulations.
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When business is in a reactive response mode, it most often engages in confrontation of its
adversaries. When it assumes an interactive response mode, it participates in dialogues with
NGOs and the media and develops partnerships or coalitions to advance new policies and
programs. When business behaves in a proactive manner, it anticipates future pressures and
policy changes and adjusts its own internal corporate policies and practices before it is forced to
do so. While a reactive stance may sometimes work, it often only delays needing to engage in a
more interactive or proactive way. An interactive or proactive approach is usually a better way to
meet political and societal challenges while also protecting the reputation of the firm.

10.8 Tactics That Businesses Use to Influence Government

Businesses often engage in a variety of tactics to influence government policy. This includes
lobbying, political contributions, and interest group politics.

Business Lobbying

Businesses lobby in different ways. This can include lobbying of Congress and state legislatures
and executive branch agencies directly through its own government relations specialists, through
an industry trade association, through consultants, or through a combination of all those avenues.
Businesses may also engage in indirect or grassroots lobbying by appealing to its own
employees, stakeholders, or the general public to make their views known to policymakers. In
order to build a broad grassroots constituency, business may manage “issue advertising”
campaigns on top-priority issues, or purchase issue ads in media outlets that target public
policymakers or Washington insiders.

Business lobbying has a strong influence on public policies. There are more than 1,500 private
companies in the United States with public affairs offices in Washington, DC, and more than 75
percent of large firms employ private lobbyists to make their case for policies that can benefit
them. This includes more than 42,000 registered lobbyists in state capitals across the nation.

Business may engage in reactive defensive lobbying (defending its own freedom from
government regulation) or interactive lobbying (partnering with interest groups on policies that
the firm can benefit from). Businesses can also choose to engage in social lobbying, examples of
which include chemical companies with the best environmental track record joining
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environmental NGOs in lobbying for an increased budget for the Environmental Protection
Agency (EPA) and retailers wanting to address consumer concerns joining interest groups in
pressuring the Consumer Product Safety Commission to adopt more stringent product safety
standards. Corporations showing a willingness to join such public interest coalitions can gain
reputational rewards from NGOs, the media, and public policymakers.

Political Contributions

Businesses also use campaign contributions to support their position and to try to influence
public policies that can help them increase profits. Seven of the ten largest corporations in the
world are oil companies, based on revenues. Their access to funds for lobbying and campaign
contributions gives them a significant voice in the political system and on policies that can
impact sustainable businesses.

There are a range of avenues a company might use in making political contributions. The most
transparent and legitimate is that of forming a political action committee (PAC) to which
voluntary contributions of employees are amassed and then given in legally limited amounts to
selected candidates. Not surprisingly, larger firms in regulated industries, or in industries
exposed to greater risk from changing public policies, such as oil companies in 2010 during and
after the British Petroleum (BP) Gulf of Mexico oil crisis, use PACs more often than other firms.
Beyond contributing directly to political candidates, firms can also advertise on ballot measure
campaigns, and those contributions can come from corporate assets and are subject to no legal
limitations.

A 2010 US Supreme Court decision, Citizens United v. Federal Election Commission ruled that
the government could not ban independent political spending by corporations, as well as labor
unions and other organizations, in candidate elections. This has led to rise of what have become
known as “super PACS.” In the 2012 Republican presidential primary, about two dozen
individuals, couples, or corporations gave $1 million or more to Republican super PACs to try to
influence the primary election.

Interest Group Participation

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Business response can include participation in interest group politics. Interest groups play a key
role in all democratic systems of government. However, as an interest group is a group of
individuals organized to seek public policy influence, there is tremendous diversity within
interest groups. Business is just one of many interest group sectors trying to influence public
policy (see the discussion previously mentioned). Businesses will encounter interest groups that
may support or conflict with their position on an issue.

Other Business Interactions in the Public Arena

Businesses face a complex array of formal and informal public policy actors beyond (just)
government. Business practices can be strongly influenced by citizen actions that bypass the
formal institutions of government. Though they lack the economic clout and resources of
industry as tools of influence, citizen groups do possess other tools. They can lobby and litigate,
and they can get out large groups to demonstrate in public events and use exposure in the news
media as a vehicle for getting their perspective heard.

Businesses are influenced by direct citizen activism and protest. Organized interests and
nongovernmental organizations (NGOs) have been the source of influence. After their
experiences in affecting public policy in the 1960s and 1970s, many citizen activists grew
skeptical of the government’s ability to respond rapidly and effectively and discovered they
could often accomplish their objectives more directly and quickly. Citizen groups have both
confronted and collaborated with corporations in order to foster change.

Finding that confrontation is often counterproductive and that government lobbying is protracted
and ineffective, NGOs often turn to collaboration with business to resolve issues. Indeed, as both
sides have matured and grown less combative, business and NGOs have learned to work together
to resolve problems. There are many examples of such productive collaboration, the most
prominent of which have emerged on the environmental front. For example, the Rainforest
Action Network (RAN) has worked with Home Depot, Lowe’s, and several timber companies in
an initiative to protect old-growth forest. RAN combines elements of activism and even militant
protest along with peaceful collaboration.
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The EDF is an example of an NGO working cooperatively, in contrast to a confrontational

approach, with corporations. The EDF was an early actor in this way. In November 1990, the
Fund began to work with McDonald’s to help the company phase out its polystyrene clamshell
food containers. It was a collaborative effort to significantly reduce McDonald’s negative
environmental impact by cutting its solid waste. It was the first major partnership between an
environmental group and a Fortune 500 company in an era when environmental and business
interests were often at odds. EDF and McDonald’s worked together to develop a new solid waste
reduction plan. The initiative eliminated more than 300 million pounds of packaging, recycled 1
million tons of corrugated boxes, and reduced waste by 30 percent in the decade following the
initial partnership, and this was all achieved at no additional cost to the company.

Beyond the traditional political tactics, NGOs also have developed new tactics to pressure
business. Ralph Nader pioneered the use of the shareholder resolution to protest such corporate
actions as discriminatory hiring, investment in South Africa, nuclear power, environmental
impacts, and corporate campaign donations. Since the 1970s, religious organizations, most
prominently the Interfaith Center on Corporate Responsibility, have been the chief sponsors of
such resolutions. More recently, they have been joined by mainstream shareholder groups, such
as large institutional investors and pension funds, in calling for major changes in corporate
governance and more recently for more attention to businesses’ environmental footprint and
contribution to greenhouse gas emissions and global warming.

Businesses have to also understand the importance of another actor in the business and public
policy sphere—the news media. The media provides important functions for both society and
business. For example, it influences the public policy agenda by filtering the various events and
interest-group areas of attention and it can serve as a sort of “watchdog” over both business and
government exposing any unethical practices. Business must constantly monitor the media and
be ready to respond. In particular, since the media are usually a pivotal actor in any corporate
crisis, company “crisis management” plans must include steps for dealing appropriately with the
media and other critics.

10.9 Preferences of funding sources

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Funding agencies, such as government, private foundations, are increasingly structuring request
for proposals (RFP) to favor the involvement of interdisciplinary research teams, "The federal
government, including the National Institutes of Health and the National Science Foundation,
now supports projects that ask for researchers in different disciplines to work together. The
NIH's road map, a project that is determining the agency's future extramural and intramural
research mission, has defined certain areas for study, such as nanomedicine and structural
biology, which will involve research within and across disciplines, and, in some cases, with
industry" (RCR Collaborative Science, 2005).

Some funding agencies encourage collaborations that foster a cross-fertilization of ideas and
methodologies (Collaborative Research Grants, 2005). As one funding agency noted , " By
bringing together some of the best and most creative minds in the country, new scientific and
technological challenges can be tackled; business can go on to develop innovative and
commercially successful products, processes and services, and other benefits can be achieved
such as a positive impact on the environment (Link, 2005).

Thus, research teams comprised of members, each with an expertise in a relevant discipline, may
offer greater options in obtaining research funding. Additionally, universities are increasingly
supportive of focusing on collaboration between researchers who offer different and
complementary perspectives, knowledge, experience, and skills that can result in innovative
approaches to problem solving.

10.9.1 Demand for expanded capacity

According to Shamoo and Resnik (2003), contemporary research requires a great deal of
collaboration among scientists. Collaboration can address the demand for expanded capacity that
is required of research projects demonstrating suitable scope and complexity. Some research
questions can only be addressed in this manner. It is noted that breakthroughs are often more
likely to come from collaboration across disciplines than by adherence to tried and true methods
(RCR Internet Instructions, 2005). For example, the Human Genome project, international in its
scope, utilizes more than one thousand investigators from diverse disciplines (Macrina, 2000).
Collaboration is well suited to investigating research questions that cross over the parameter of
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multiple disciplines. Investigators, working on the same research team, may be studying different
aspects of the same problem. Thus, collaboration can:

 facilitate conducting research with a grander scope

 invite experts from diverse yet relevant disciplines
 handle larger number of study subjects
 permit research to be conducted at disparate locations either at a national or international
level

A research project may cover a wide range of methodology, technology, product and sector areas
through a number of programs. For example, the U.S. Agency for International Development,
(USAID) recognizes the importance of strengthening the agricultural sector of developing
countries to build a firm base for economic growth (Collaborative Support Programs, 2005). The
Collaborative Support Programs identifies nine Collaborative Research Support Programs
currently in operation to help build sustainable capacities of the National Agricultural Research
Systems of developing countries so that they can solve problems of agricultural production and
utilization over the long term. The scope of this kind of endeavor is likely to be far beyond the
research capabilities of a single researcher, and demands a carefully orchestrated effort between
multiple research groups.

10.9.2 Division of labor to complete tasks in a timely fashion

Research collaboration can also be useful when devising a division of labor scheme to complete
project tasks in a timely and efficient manner. This is particularly important when tasks are
sufficiently differentiated to require orchestrating efforts with collaborators having diverse
research interests, skills, and specialization. For example, in the sequence of research activities,
some members of the team may engage in data collection, others may specialize in data handling
and preparation, and yet others may perform data analysis and reporting. Given the nature and
demands of each project, certain specialized tasks will remain in the domain of select experts,
while more generic tasks may be shared by others. By dividing the workload according to
collaborator skills, completing the work may become more manageable. A tacit assumption and
expectation from the practice of 'division of labor', is that since each assigned activity targets
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team members with the appropriate experience and expertise, the tasks will be performed with
greater efficiency.

10.9.3 Ability to share resources

One important justification for collaboration is the enhanced ability to share and exchange
resources. Resources have been defined by Shamoo and Resnik as "data, databases, ideas,
equipment, computers, methods, reagents, cell lines, research sites, personnel, and many other
technical and human resources" (2003). Benefits from collaboration may include cost savings,
and the potential to facilitate scientific progress. An example of this would be the exchange of
reagents or cell lines in the biological sciences. Thus, resources found to be deficient with one
member of a team or institution may be readily available from willing collaborators within or
between institutions.

An example of a mutually beneficial arrangement of sharing resources would be a research team,

seeking to improve upon a particular medical or social intervention, agreeing to collaborate with
another research group that can provide access to a study population or database. Both parties
may stand to benefit from this sharing of resources

10.9.4 Opportunity to learn about other disciplines

Research collaboration may provide opportunities for investigators to learn how approaches from
complementary disciplines may be applied to existing problems, and lead to the development of
innovative solutions. This may occur when discussions among colleagues stimulate new ideas.
Collaboration between academia and private industry may also allow investigators to see real
world application of research. These types of collaboration may result in social and economic
benefit to society, science, and private industry.

10.9.5 Risk management

While most research may entail some risk or hazard, the degree of risk and its concomitant costs
will depend on the nature of the research conducted. Risk management is defined as d
ecisionsmade to accept exposure or to reduce vulnerabilities by either mitigating the risks or
applying cost effective controls (UTMB Information Services, 2003). Collaboration may be
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viewed as a strategy for the risk management of a research project. Research activities that may
knowingly or unknowingly expose investigators, participants (human or animal), or the public to
some degree of danger, cannot be conducted unless the risks are abated or eliminated.
Collaborative partners may differ in the experiences and expertise of risk management skills for
relevant areas. An example might be found in collaborations between 'clinical' research and
'basic' science groups. For example, clinical researchers should be aware of the requirement to
provide full disclosure to patients when collecting specimens from them. By obtaining informed
consent, specimens are able to be studied. In addition, basic science investigators must comply
with government regulations to inform and provide protection to laboratory staff members who
may be handling biologically hazardous materials. Ensuring that risk management procedures are
followed at both site protects both clinical and basic researchers who are considered
complementary members of the research team.

10.9.6 Opportunity to engage in collegiality

According to Merton, collegiality represents one of the four norms of science (1973). Its function
is to maintain a social environment promoting cooperation and trust. Shamoo and Resnik (2003)
further note that researchers who treat one another as colleagues are more likely to trust one
another to cooperate. In pursuit of a common goal, researchers engaged in collegiality treat each
other with respect providing constructive criticism as well as assistance (Shamoo, Resnik, 2003).

Collaboration may be seen as a mechanism to promote greater collegiality between colleagues,

departments, and institutions. This can be particularly useful in opening dialogue between
researchers from distinctly different disciplines where previous research efforts were in divergent
and perhaps unrelated directions. Collaboration can also be useful in establishing innovative
alliances between research teams from academic, government, and private industry. These
alliances can result in long term research relationships benefiting science, society, with broad-
based economic interests. Both science and society are best served by collegiality and open
collaboration (Magnus, Kalichman, 2002).

10.9.7 Opportunity to lend credibility and validity to project

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Collaboration can be beneficial when researchers invite the participation of investigators having
more experience in a desirable area of research. This experience could include a history of
successful proposal submissions, insightful and innovative approaches to problem solving, and
significant publications in the field. Collaboration with such experienced researchers can lend
credibility and increase validation to most project and may increase the chances of a successful
submission. This alliance can both facilitate successful ongoing research efforts as well as future
collaboration.

10.10 Technological advances facilitating communication

Collaboration has been increasingly facilitated by advances in communication technology. The

ability to learn about the work of others has greatly been enhanced by access to online databases.
Databases from numerous disciplines offer both up-to-date information as well as opportunities
to search past publications. Relevant information can be obtained or exchanged through phone,
e-mails, faxes, shipping (one-day delivery), teleconferencing, or through institutional/individual
websites. Researchers may be better able to learn about each other's works as well as sustain
collaborative efforts as a result of available communication technology (RCR Internet
Instructions, 2004). However, while collaboration using these technologies can be more efficient,
save time and resources, and provide a sense of immediacy in responding to queries, researchers
should be wary that use of communication technology may not guarantee better communication.

10.10.1 Impact on RCR

This section reviewed various justifications for research collaboration. This justification or needs
included structural determinants (preferences by funding sources), changes in research
paradigms (demand for expanded capacity and an opportunity to learn about other disciplines),
enhanced efficiency (division of labor, ability to share resources, risk management), relationships
(demonstrate collegiality, lending credibility), and technology (advances in communication).
While science can benefit from the practice of collaboration, investigators should be aware of
both the positive and negative impact on the responsible conduct of research. For instance, while
working with a larger staff can enhance the investigation of multifaceted aspects of a research
question, logistical challenges in dealing with a more complex project, as well as disagreements
about the appropriateness of methodologies and analyses, can result in acrimony. Adding a
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recognized name to a proposal in order to enhance a submission's credibility must be followed-

up by real participation, rather than in name only. Relying too heavily on technology to promote
communication is no substitute for a shared commitment to accountability in following through
on all assigned tasks. The next section will describe the types/format of collaboration.

10.10.2 What are the Four Asian Tiger

Four Asian Tigers is a term given to the economies of four countries – Hong Kong, Taiwan,
Singapore, and South Korea. Driven by exports and rapid industrialization, the Four Asian Tigers
have steadily retained a high rate of economic growth since the 1960s, joining the ranks of the
richest countries in the world

Singapore and Hong Kong are seen as leading foreign financial hubs, while Taiwan and South
Korea are pioneers in the manufacture of electronic components and computers. Their economic
growth serves as a model for many developing nations, particularly Southeast Asia’s Tiger Cub
Economies (Indonesia, Philippines, Malaysia, Thailand, and Vietnam).

10.10.3 Overview of Four Asian Tigers

Before the Asian Financial Crisis of 1997, the rise of the economies of the Four Asian Tiger
nations (known as the Asian Miracle) was due to export-oriented policies and strict development
policies. The economies were unique in terms of continued economic growth and high levels of
fair income distribution. A World Bank study recommends two growth strategies, among others,
as a cause of the Asian miracle – macroeconomic management and factor accumulation.

The economy of Hong Kong experienced industrialization with growth in the textile industry
during the 1950s. By the 1960s, production in the British Colony had grown and diversified to
include electronics, garments, and plastics for exports.

After Singapore’s independence, the Economic Development Board developed and adopted
national economic policies to boost the country’s manufacturing sector. Industrial estates were
established, and the country offered tax incentives that attracted foreign investment.
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Meanwhile, South Korea and Taiwan started to industrialize in the mid-1960s with significant
government intervention, including programs and policies. Both countries followed export-
oriented development, as in Singapore and Hong Kong.

The Four Asian Tigers were motivated by Japan’s recognizable progress and followed the same
strategy through investments in the same categories – education and infrastructure. They
benefited from the international exchange assistance that set them apart from other nations – the
most important being the economic assistance from the United States, which could be
demonstrated by the spread of American electronic goods in traditional households of the four
countries.

10.10.4 Reason for Economic Growth of Four Asian Tigers

The primary reason for the rise of the economies of the Four Asian Tigers was their export
policies. The four countries followed different approaches; Singapore and Hong Kong
implemented neo-liberal trading regimes that promoted free trade.

Whereas, Taiwan and South Korea adopted hybrid regimes that suited their export businesses.
Because of limited domestic markets in Singapore and Hong Kong, domestic and foreign prices
were linked.

South Korea and Taiwan implemented export incentives for the traded goods market. The
governments of South Korea, Taiwan, and Singapore all sought to promote certain export
sectors, which was described as an export-driven policy. All of the initiatives helped the four
countries reach an average growth rate of 7.5% per year for three decades, thereby gaining the
status of developed countries.

10.10.5 The Four Asian Tigers and Financial Crisis

The economies of the Four Asian Tigers suffered massive losses during the Asian Financial
Crisis in 1997. Hong Kong experienced extreme speculative assaults on its stock exchange and
currency, prompting extraordinary market interference by the Hong Kong State Monetary
Authority.
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South Korea was struck worst by the increase of its foreign debt pressures, resulting in its
currency crashing between 35% and 50%. At the beginning of 1997, the stock exchange in Hong
Kong, South Korea, and Singapore experienced declines of at least 60% in dollar terms.

The 2008 Global Financial Crisis hit hard the economies of Four Asian Tigers that profited from
consumption by Americans. By the end of 2008, the GDP of all four countries decreased by an
average annualized rate of about 15%. Exports were down by an annualized rate of 50%. Poor
domestic demand also impacted the revival of these economies. Retail revenue declined by 3%
in Hong Kong in 2008, by 11% in Taiwan in 2008, and by 6% in Singapore.

The Four Asian Tigers economies recovered strongly as the world revived from the financial
crisis. The recovery is highly attributed to government stimulus programs in each region, which
resulted in greater than 4% growth in the GDP of each country in 2009. The moderate corporate
and household debt in the four countries is another explanation for a quick rebound.

SUMMARY

 Innovation can be fostered by building connection between people and the organization,
integrating new, differing perspectives, and other social interactions.
 The search for competitive advantage through innovation and effective decision-making
has led many organizations to highly value group-oriented work, and workspaces.
 Informal interactions are the most valued, topped by brainstorming, which more than half
of all respondents said is the most important collaborative behavior for business success.
It is a safe forum for idea generation dependent upon a diversity of exchange.
 Collaborative knowledge requires working together toward a common goal. This type of
knowledge has been called by various names: cooperative learning, collaborative
learning, collective learning, learning communities, peer teaching, peer learning, or team
learning.
 Collaboration now frequently involves displaying and interacting with visual information
using a range of small handheld devices to large mounted screens and whiteboards.
 The market liberalization process and the functioning of Indian democracy have sharply
reduced the hierarchy within and among government structures.
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 The development strategy today must be based upon the evolving productive and
developmental logic of information technology and knowledge economics.
 There are many means of technology transfer for private goods. Direct foreign
investment, licensing, technical assistance, importation of technology as embodied in
capital goods, components or products, copying and reverse engineering, and foreign
study are the key channels.
 Much dissemination also occurs through the sale of new machinery or other inputs that
embody a new technology.
 Countries have followed different strategies in how they created, acquired, adapted,
disseminated or used knowledge for their development. Most countries that are behind
the global technological frontier can take advantage of acquiring knowledge that already
exists elsewhere in the world and adapting it for use in their local settings. This is most
often done through trade and through formal technology transfer agreements. Foreign
technology owners are not always willing to license their cutting-edge technology

Short Answer Questions

1. What is innovation?
2. How can innovation be fostered?
3. What is collaborative knowledge?
4. What are the benefits of collaborative knowledge?
5. What is cooperative knowledge?
6. What is the MRTP Act?
7. How does dissemination occur?
8. Why are Malaysia and Thailand more advanced than Indonesia and Vietnam?
9. What do you mean by FDI?
10. Discuss some of the ways of technology transfer for private goods

Long Answer Questions

1. How can organizations foster an innovative work environment?
2. Why are organizations offering a wide variety of spaces for collaborative work space?
3. What is collaborative knowledge? Explain in detail. Discuss the benefits of collaborative
knowledge.
4. Discuss about the evolution of government-business relations in the Indian context.
5. How does innovation play an important role in the context of developing countries?

Further Readings

Anne Moen, Anders I. Mørch, Sami Paavola (2012)Collaborative Knowledge Creation:

Practices, Tools, Concepts,SensePublishers
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Bernhard Ertl · 2010E-collaborative Knowledge ConstructionLearning from Computer-

supported and Virtual Environments
Khurana, Vijay Kumar, Management of Technology andInnovation, Ane Books India
Betz, Frederic, Strategic Technology Management, McGraw Hill,1996
Louis Phillips (2013), Knowledge and Power in Collaborative ResearchA Reflexive
Approach,Routeledge
Szakonyl, Robert, Handbook of Technology Management, VivaBooks Private Limited, 2008
Graynor, Gerard H., Handbook of Technology Management,McGraw Hill, 1996
M.Khalil, Tarek, Management of Technology, McGraw Hill, 2003