Technological environment analysis

2. Flow
• Meaning of Technology
• Impact of Technology on Business
• Source of Technology
• Meaning of Technology Transfer
• Significance of Technological Transfer
• Types of Technological Transfer
• Technology Transfer Agreement

3. Technology
• Technology is the knowledge or process or
method that are necessary to carry on or to
improve the existing production and
distribution of goods and services, products or
processes.
• Technology refers to the tools and machines
people have invented to make life easier.
• Technology helps convert ideas into useful
products.

4. Technological change
• Introduction of advanced products
• Change in methods of production
• Changes in the quality of resources
• New ways of distributing the products and new
ways of storing and disseminating information
• Information Technology Advancement

5. Impact of technology on Business
• Impact on Operating Cost
• Impact on Human Resources
• Impact on Productivity
• Impact on the way of Communicating
• Impact on Customer Outreach

6. Impact on Operating Cost
• Businesses can use technology in order to
reduce the operating cost. These days
companies can sell their products or services
online.
• The cost of startup has dropped dramatically as
every individual can launch a venture from
home says and the enterprise software allows
businesses to automate back-office operations
like accounting, record keeping and payroll.

7. Impact on Human Resources
• Today’s students are stimulated to get ready
for technology-based works like data analysis,
computer programming etc.
• Technology has also changed employing
process, with the internet permitting
employees to do their job from home or
another remote location.

8. Impact on Productivity
• Implementing different technologies increases
the employee’s productivity. Computer
programs and business software let workforces
to process more information than the manual
method.
• Moreover, the business persons can also
implement technology to lessen the amount of
human employment in corporate functions.

9. Impact on Customer Outreach
• Because of social media and internet, it has
become easier to reach a huge amount of
customers.
• Small business owners can use social media
platform and do-it-yourself website tool in
order to increase the customer outreach.

10. Impact on the way of Communicating
Business technology helps businesses advance
their communication processes. Emails, texting,
websites and apps, for example, facilitate
improved communication with patrons.

11. Successful Companies
• Infosys
• Tata Consultancy Services
• Paytm
• Oyo Rooms
• Zomato

12. Technology Life Cycle
• The technology life-cycle (TLC) describes the
commercial gain of a product through the expense of
research and development phase, and the financial
return during its "vital life".
• Some technologies, such as steel, paper or cement
manufacturing, have a long lifespan (with minor
variations in technology incorporated with time)
while in other cases, such as electronic or
pharmaceutical products, the lifespan may be quite
short.

13. TLC can be described as having four distinct
stages.
• R & D Stage
• Ascent or Growth Stage
• Maturity Stage
• Decline Stage

14. Technology Life Cycle

15. Research and Development
• During this stage, risks are taken to invest in
technological innovations.
• No Profit are made during this phase.
• This is a risky stage since the final product
may not be worthy of implementation and all
the expenses so far incurred will waste.
• This can be one of the reason many companies
are averse to money invest in R&D.

16. Ascent or Growth Stage
• At this point the objective of company is to see
to the rapid growth and distribution of the
invention.
• In this stage newly developed technology starts
yielding results.
• Out of Pocket expenses are recovered in this
stage.
• In this stage companies take benefit of having the
newest and most effective product.
• Profit are increasing in that stage.

17. Maturity Stage
• In this stage new technology becomes
accepted by the general population.
• In this stage new competitor enters in
market.
• Supply begin outstrip Demand.
• Return are going stagnant.

18. Decline Stage
• The existing technology can no more
employed gainfully.
• Its competitive utility has come to an end.
• It needs to be replaced by next generation
technology.

19. • Even the most successful technological
innovations like the iPhone, Google and Facebook
did not become popular overnight. It takes time.
• After introducing the Technology how person
respond to technology that is important. There are
lot researches made on it.
• One of the famous research by Everett Rogers in
1962. He explore the five stages of the technology
adoption life cycle to understand how society
reacts to innovations or technology.

20. • The technology adoption life cycle is a
sociological model that describes the adoption or
acceptance of a new product or innovation,
according to the demographic and psychological
characteristics of defined adopter groups.
• The Technology Adoption Life Cycle divides
potential new technology adopters into five
adopter categories or segments. In Technological
Adoption Life Cycle on X axis there is time and
on Y axis is number of Adopter.

21. There are five Segments Of Technology Adoption
which are as follows:
• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards

23. Innovators
• These are the first people to adopt a new product
or service.
• By nature they are risk takers and are excited by
the possibilities of new ideas and new ways of
doing things.
• Products tend to be more expensive at their point
of release but innovators purchase because they
have a higher social class and higher income that
they are willing to spend on new technology.
• The innovators segment is usually only 2.5% of
society

24. Early Adopters
• After Innovator early adopter purchase the product.
• They purchase the product on the basis of review and
feedback of innovator.
• They are generally young people with higher income
and higher education.
• The early adopters segment is usually 13.5% of the
society.
• They may be very active in social media.
• They take reasonable approach towards risk.

25. How to Cross the Chasm
• Successfully firm crossing the chasm can be achieved by
targeting a very specific niche market.
• Segmenting is everything here: focus all your marketing
resources on one specific segment at the time and make sure
you become market leader in that specific segment before
moving on the next one. This is a so called ‘Big Fish, Small
Pond’ approach.
• In addition, you should make sure that your product offers a
complete solution and that service levels are high (i.e.
Whole Product Solution). Once you have established a
strong word-of-mouth reputation within different segments
of the Early Majority, you have crossed the chasm properly.

26. Early Majority
• As a product begins to have mass market
appeal, the next class of adopter to arrive is the
early majority.
• This class of adopter is reasonably risk averse.
• They are average income class people.
• They use opinion of others while adopting
innovations.
• The early majority segment is usually 34%
(one third) of society.

27. Late Majority
• They tend to put their resources towards tried
and tested solutions only and are risk-averse.
• They’re not going to buy until lots of others
have the product, and what they’re using
instead has become inconvenient.
• This category of adopter lesser interaction with
society.
• Generally they are older people. (34%)

28. Laggards
• The Laggards are the final group of technology
adopters.
• These are people that never purposefully adopt
new technology.
• They are not really potential customers; goal is
not to sell to them.
• They are generally oldest .(16%)

29. Source of Technology
There are two source of technology:
• Either it may be developed
• It may be purchased at certain price

30. Research and Development
Budget
India's spending on R&D in terms of
percentage of GDP has been stagnant at 0.6
to 0.7 per cent in the last two decades --
much lower than the U.K, China, South
Korea, Israel , Singapore, Belgium, Finland
and Japan.

31. Technological development in India
• India has a strong network of science and technology
institutions and trained manpower. It has the third-
largest scientific and technical manpower in the world
with 162 universities awarding over 4,000 doctorates
degrees and 35,000 post graduate degrees annually.
• India’s gross expenditure on R&D increased from Rs
65,961.33 crore (US$ 14.07 billion) in 2011-12 to Rs
104,864.03 crore (US$ 16.27 billion) in 2016-17.
• India’s medical technology (MedTech) sector is
forecasted to reach US$ 9.6 billion in 2022 and US$ 7.8
billion in 2020 from US$ 5.7 billion in 2017.

32. Technological development in India
• The Government of India is extensively
promoting research parks & technology business
incubators (TBIs) and (RPs) which would
promote the innovative ideas till they become
commercial ventures.
• In July 2018, Under Atal Innovation Mission
scheme launched “Innovate India Platform” with
the aim of providing a common point for all the
innovation happening across India.

33. India improved its rank on the Global Innovation
Index for the second year consecutively. From
being ranked at the 81st position in 2015, India
improved its ranking to 66th in 2016 and further
to 60th in 2017.
In the year 2019 India got 52 position.

34. Government Initiatives
• In February 2018, the Union Cabinet has approved
implementation of Prime Minister Research Fellows (PMRF)
scheme, which will promote the mission of development
through innovation, at a total cost of Rs 1,650 crore (US$
245.94 million) for a period of seven years beginning 2018-19.
• In February 2018, Union Government of India announced
grant of Rs 1,000 crore (US$ 155.55 million) for the second
phase of Impacting Research Innovation and Technology
(IMPRINT), a fund created by Department of Science and
Technology and Ministry of Human Resource and
Development.

35. Government Initiatives
• The Government of India granted Atal Innovation
Mission with US$ 24.84 million will boost the
academicians, entrepreneurs and researchers to work
towards innovation.

36. Government Initiatives
The following fellowships schemes given by government:
• CSIR Junior Research Fellowship (JRF) and National
Eligibility Test (NET)
• Senior Research Fellowship (SRF)-Direct
• Shyama Prasad Mukherjee Fellowship (SPMF)
• CSIR JRF-GATE (for Engineering & Pharmaceutical
Sciences)
• CSIR Research Associateships (RA) to pursue post doctoral
research
• CSIR Senior Research Associateships (SRA)
• CSIR Nehru Science Postdoctoral Research Fellowship
Scheme

37. Technological Transfer

38. What is Technology Transfer ?
• Technology Transfer is the process by which
technology is disseminated. It involves communication
of relevant knowledge by the Transferor to the
Recipient.
• Without Transfer of Technology there is not any growth
and development in economy.
• Technology transfer is basis for development of
technology.

39. Benefit of Technology Transfer
• It leads to competitive advantage for a company
from its competitors.
• It helps in research and development of a product.
Transfer of technology helps organizations to
modify it according to needs.
• Transfer of technology makes technology new
and new innovations lead to the creation of a new
market and demand.
• It helps in the commercialization of technology.

40. Obstacles in technological transfer
• Cost
• Appropriateness
• Dependence
• Outdated technology

41. Classification of Technology
Transfer
• International Technological Transfer
• Regional Technological Transfer (within
country)
• Cross Sector Technology Transfer( Industry to
Industry)
• Inter Firm Technology Transfer (Firm to Firm)
• Intra Firm Technology Transfer ( within firm)

42. Technology Transfer Agreement
• Training or Employment of Technical Expert
• Contract for supply of machinery and
equipment.
• Licensing agreement
• Turnkey contracts
• Joint Venture Agreement

43. Steps in Technology Acquisition by a
firm
1.Identification of Need
2. Developing list of suitable technology providers
3. Short listing / selecting suitable technology providers
on the basis of compatibility of core competences,
appropriateness of technology, technical feasibility etc.
4. Negotiation
5. Agreement
6. Payments as per agreement
7.Transfer of specifications, blueprints, designs, and
documents.
8. Training of technical personnel of purchaser.

44. Modes of Payment for Technology
Transfer
• Lumpsum payment or periodical instalments
• Royalities as a %age of sales over next few
years
• Contracted supply of output
• Issue of equity shares in lieu of technology
transferred

45. Successful Companies
• Infosys
• Tata Consultancy Services
• Paytm
• Oyo Rooms
• Zomato