how a tecnological environment hange

2. Technological Environment
• Technology is a ‘systematic application of
scientific or other organised knowledge to
practical tasks’

3. Classification of Technology
Technology can be classified according to any of the
following categories :-
Core technologies : Technologies that are
essential to maintain a competitive position.
Example-diesel Engine technology is central to
Mahindra& Mahindra
Complementary technologies : Technologies that
support several product& product development.
Example- Desigining Shockers in automobile industry

4. Peripheral Technology-It is defined as technology
that is not necessarily incorporate into product
whose application contribute to the business.
Example-Computer software or microprocessor
technology are peripheral technology for
Mahindra& Mahindra
Emerging technology: Technologies that are
currently under consideration for future products
or processes.
Example-Alternative fuel technology for
Mahindra& Mahindra

5. The Technology Cycle
Following classification, technology management
involves carefully implementing five stages :-
1. Awareness phase
2. Acquisition Phase
3. Adaptation Phase
4. Advancement Phase
5. Abandonment Phase

6. Technology Awareness
of marketable invention
Technology
Acquisition
by self-generation
or transfer
Technology
Adaptation
Minor modifications
of acquired technology
for specific needs
Technology
Advancement
Innovation involving
major modifications
of acquired technology
Technological
Abandonment
obsolescencing
External & internal
Environment
Factors affecting
the technology user
Promotion
Installation
1
2
3
4
5
6
Demolition
Time

7. The Technology Cycle, showing the five basic
elements
of technology management at any given level
(product,
service, function, work centre, plant/division,
corporation, industry, national or international)
applicable to deal with an existing or new
technology.
The dashed lines represent ‘analysis’.

8. 1. Awareness phase
• This is the first phase of the technology cycle in
which a company has a formal mechanism to
become aware of emerging technologies
• Some companies from ‘think tank’ with engineers &
scientists, who research from around the world &
put in short internal report form for the benefit of
corporate strategic planners & technology policy
markers.

9. 2. Acquisition Phase
• To go from the awareness phase from acquisition
phase, the company’s technology group, in
collaboration with the industrial engineering group,
would conduct technical feasibility, & economic
feasibility studies before justifying & acquiring a
new technology.

10. 3. Adaptation Phase
• Virtually every enterprise ends up adapting an
acquired technology for its particular needs
• If the homework done correctly, the transition from
acquisition to adaptation becomes much smoother
& less expensive
• Conversely, this not only frustrates the people
acquiring the technology but also slows down the
assimilation rate, causes major productivity losses,
& results in severe quality problems.

11. 4. Advancement Phase
• When capital is limited one cannot indiscriminately
purchase & abandon technologies with scarce
money
• It becomes imperative to improvise the acquired
technologies for one’s home needs.

12. 5. Abandonment Phase
• This last phase of the technology is the most critical
• Bad timing in prematurely abandoning a product
could result in lost revenues, & on the other hand,
waiting too long to abandon might also result in
lost revenues because a customer may find a better
alternative in competition.

13. Globalization & Technology
• The world economy is passing through structural
changes
• These changes are driven by globalisation of
business as well as by the revolution in information,
communication, & transportation technology
• Nations now have powerful technology in their
hands, fundamentally transforming the way in
which business is conducted around the globe
• The World Trade Organization (WTO) is
contributing to globalization by removing trade

14. barriers between countries & involving mechanism
for smooth conduct of trade among nations
• the WTO has also evolved a mechanism to manage
technology better
• The main provision of the WTO that influence
technology transfer are included under the following
sections :-
1. Trade Related Aspects of Intellectual Property
Rights (TRIPs)
2. Trade Related Investment Measures (TRIMs)
3. Subsidies & Countervailing Measures (SCMs)
4. The Information Technology Agreements
(ITA)

15. Appropriate technology
• The technology suitable in one environment
may not be appropriate in a different
environment due to several reasons. The
latest or highly sophisticated technology may
not be appropriate in several environments.
Intermediate technology, which often means a
technology which combine elements of
traditional technology with elements of
modern technology, gained importance in the
developing countries.

16. Characteristics of Technology
• It involves particular set of production
• Technological changes happened over time to
develop new method of production.
• Technology is characterized by the dynamic of
incessant improvement, which means that it need
to continually improved.
• Technology required new managerial philosophy
and practice.
• Technology is the prime factor of domestic
productivity and international competitiveness.

17. TECHNOLOGICAL TRANSFER
• Applications of technology for new users and
new usages.
Reasons for technological transfer
• Profit by selling Technology
• Location and logistic
• Competitive edge
• Limitation in Home/Host country

18. Methods of Technological Transfer
• FDI Policy
• Licensing
• Franchising
• Management contract
• Joint Venture
• Contract Manufacturing

19. Contribution in Countries Economy
• Revolution increment
– Green
– White
– Yellow
– Blue
• Employment increase
• Effect on Life-style