Chapter 01

Introduction
Abu Taher
Lecturer
Department of IPE, BUET
2
Definition of Technology
Technology can be defined as all the knowledge, products, processes, tools, methods,
and systems employed in the creation of goods or in providing services.

In simple terms, technology is the way we do things.

Zeleny ( 1986) highlighted this point by proposing that any technology consists of three
interdependent, codetermining, and equally important components:

o Hardware
o Software
o Brain ware
3
Classification of Technology
• New Technology

• Emerging Technology

• High Technology

• Low Technology

• Medium Technology

• Appropriate Technology
4
Characteristics of High and Low Technology

High Technology Low Technology

• It employs highly educated people • It employs people with low levels of
• Changing rate is faster education and skill
• Competes with technological • Manual or semiautomatic operation
innovation • Stable technology with little change
• High level of R&D expenditure • Low level of R&D expenditure
5 Management of
Technology

Management of technology (MOT) is an

interdisciplinary field that integrates
science, engineering, and management
knowledge and practice.
 Chapter 03
Critical Factor in Managing
Technology

Abu Taher
Lecturer
Department of IPE, BUET
7
The Creativity Factor
Invention: Invention is either a concept or the creation of a novel technology. It could be
a product, a process, or a previously unknown system.

Example: steam engine, the transistor, and the Xerox machine

Innovation: Innovation involves the creation of a product, service, or process that is

new to an organization.
8 The Link Between
Science & Technology
Brooks (1965) argues that science and
technology grew up relatively independent
of each other until the nineteenth century.

However, Braun (1984) observes that the

separate and parallel development paths
followed by science and technology have
now intersected.
9
Technology Price Relationship
When a company has a technological
advantage, it is able to command a premium
price for its technology. The magnitude of this
premium is de pendent on the value of the
technology to customers.

Company should also guard against

shrinking the gap in knowledge. One
approach is to continue building a
technological lead over time.
 Chapter 05

Technology Life Cycle

Abu Taher
Lecturer
Department of IPE, BUET
11
Introduction

• The TLC is a concept that illustrates the various stages that a technology goes
through from its initial development to final obsolescence
• This concept can assist businesses and innovators in understanding the stages
of technological evolution, anticipating future trend, making strategic
investments and development decisions.
• The shape of TLC often refer to the S – curve shape
12 The S – curve of Technological Progress
 13
S – curve: technological progress
Embryonic Growth Maturity Aging
• Invention • Technology • The technology • The technology
• Initial development improvement becomes more becomes obsolete or
of new technology • Technology begins standardized and new technology
• Slow initial growth to get wider widely adopted replace it
• Invest heavily on R acceptance and • Growth begins to • low profit
&D adoption slow down • Move to new
• Few or no • Profit can be high, • Market saturated technology
competitor in the but competition can • Progress
market also be fierce performance slow
down
14
S – curve: technological progress

A technology's rate of performance improvement

is dependent on the effort devoted to its
development.

Technology may progress on curve A or A',

depending on a number of factors:
• Type of Technology
• Cost
• Time
15 Technology life cycle
and market growth

When technology reaches the

market, it generates income.
As technology develops, following
the recognized technology life
cycle, market penetration occurs
and so does market growth,
expressed as market volume.
16 Multiple Generation
Technology
Technology, like all systems, has a
hierarchy. A system can consist of a
number of sub systems, and each
subsystem may have a number of
components.
Technology need not consist of a single
component or derive from a single
innovation. Technology can consist of
multiple technologies and derive from
different generations of innovation.
17 Technology and Market Interaction

Science Technology Push Market Pull

18
Technology and Market Interaction

Technology Push:
• Scientific discoveries
• Applied knowledge
• Recognized needs
• Intellectual capital

Market Pull:
• Market demand
• Proliferation of application areas
• Recognized needs
• Opportunities for increased:
profitability, quality, productivity
19 The Product Life Cycle

A product life cycle closely resembles the profile of

the technology life cycle and its as sociated market-
growth profile.

New products threaten mature-technology products

and may substitute for them and eventually render
them obsolete. Obsolete products have little or no
monetary value. They may be recycled, placed in
museums, or kept as collection items if they possess
aesthetic or appealing characteristics.
20
Technological Progress

When scientific and engineering advances lead to the

introduction of new technology, turbulence is created in
existing systems. New products emerge in the embryonic
phase of a technology and many product innovations occur.

Process innovation follows new product designs. It

continues throughout the technology life cycle in support of
both radical and incremental product innovations. Process
innovations increase a product's life cycle and help maintain
competitiveness until a substitute technology creates a
discontinuity in the system and a new life cycle emerges.
21
Competition at different Phases

• In the early stage of the technology life cycle, competition is based on innovation.
• In the early phase of the growth stage of the technology life cycle, the introduced technology
helps expand the market size for the product or service offered. In this stage a company
must be able to balance its growth strategies with its marketing strategies. A dominant
design of the product emerges. Technology in this phase of the growth stage is known as key
technology.
• At Maturity stage the technology is called as base technologies and have little ability to give a
company a strong competitive edge.
22
Competition in Mature Technology

As the technology approaches the maturity stage, the rules for competition change, as follows:
• The competition switches from being based on innovation to being based on price and quality.
• Process innovations tend to dominate, and they assume greater importance in achieving a
competitive edge.
• Companies compete by introducing product lines into segmented markets.
• Companies rely on economy of scale to reduce price.
• Specialization and production efficiency within companies assume greater importance.
• Only firms with dominant markets tend to survive.
• Mature technology is continuously threatened by substitution of newer technology.
23
Diffusion of Technology

Diffusion is the process by which an innovation is communicated, over time,

through certain channels to members of a social system. The rate of adoption of
an innovation by members of a social system is dependent on the following
factors:
• The degree to which the innovation is perceived to be offering better
advantage than does existing practice.
• The degree to which the innovation is compatible with the values and needs
of the users.
• The degree to which the innovation is considered complex and difficult to
use.
• The degree to which the innovation can be introduced on a trial basis before
users must fully commit to its adoption.
• The degree to which the innovation is seen, and its results are observed, by
potential adopters
24 Diffusion-Communication-
Channel Relationship
Mahajan et al. (1990) suggest that adopters of an innovation
are influenced by two types of communication channels:
• interpersonal word of mouth and
• mass media channels
Mass media influence is greatest in the early phase of
diffusion but occurs continually throughout the diffusion
process. In contrast, the number of users who adopt a new
innovation as a result of interpersonal communication
expands during the early phase of the diffusion process and
declines during the second half of the process. This behavior
results in a cumulative S-shaped diffusion curve
25
Diffusion-Communication-Channel Relationship

The decision to adopt an innovation by an

individual or an organization takes a certain
period of time and consists of several stages. It
starts with gaining knowledge of the innovation,
forming a favorable opinion about it, making the
decision to adopt it, implementing the
innovation, and following up on its
performance. Innovative organizations that are
considered technology leaders require a shorter
time period than others to go through the
innovation-decision process.