Management of Technology and Innovation Masters Project Management PDF

HARAMBEE UNIVERSITY POST GRADUATE PROGRAM, DEPARTMENT OF MANAGEMENT MASTERS OF PROJECT MANAGEMENT COURSE TITLE: MANAGEMENT OF TECHNOLOGY AND INNOVATION Credit Hr. 2 Course: MPM 741 By: Assefa Balda (Ph.D.) Co...

HARAMBEE UNIVERSITY POST GRADUATE PROGRAM, DEPARTMENT OF MANAGEMENT MASTERS OF PROJECT MANAGEMENT COURSE TITLE: MANAGEMENT OF TECHNOLOGY AND INNOVATION Credit Hr. 2 Course: MPM 741 By: Assefa Balda (Ph.D.) Contents of the course Chapter 1: Introduction to Technology and Technology Management Chapter 2: Technology Intelligence Chapter 3: Innovation and Innovation Management Chapter 4: Open Innovation Chapter 5: New Product Innovation Game Chapter 6: Project Decision  1.1 Introduction What is Technology?  In today’s modern world technology is advancing day by day.  Due to such advancement the life of human beings has become very easy.  Technology is the practical application of scientific knowledge to solve real-world problems and improve human welfare. It aims to achieve either a commercial or industrial objective.  Technology is the result of advancement of science.  Technology is comprised of the products and processes created by engineers to meet our needs and wants.  Technology is the systematic application of scientific knowledge to a new product, process or service. In general, technology refers to all the tools, machines, or devices used in our day to day life.  Some Popular Types of Technology  Technology is a broad concept you can split into different types based on the methods of application, problems they solve, and purposes they serve.  1. Information Technology  Information Technology allows us to send signals around the world.  It simply involves development, maintenance, and use of computer systems, networks, and etc Examples: Television systems, Internet, satellite, GPS, cell phones, radio equipment.. Impacts of Information Technology POSITIVE NEGATIVE IMPACTS IMPACTS INTERNET – Harder to INTERNET – distinguish between Information is stored reliable and for easy access unreliable sources 2. Communication Technology Communication Technology: is giving or exchanging information. Communication technology uses tools and systems to pass messages to people. It Includes expanded entertainment choices Enables us to contact people thousands of miles away It refers to any thing used to process and communicate information that enables modern computing. It simply refers to transfer of message from one place to another among people or machines by using technology. Examples of Communications Technology Telephone: This device enables people to communicate from anywhere in the world. The early phones could only make voice calls. Today, you can make voice and video calls, send text messages, and browse the web with your smartphone. Internet Technologies: The internet is the most transformative technology of the modern world. You can use it to stay in contact with people beyond geographical barriers Impacts of Communication Technology POSITIVE IMPACTS NEGATIVE IMPACTS Digital cameras Computers, printers, Allow you to edit & digital cameras and print only the Make forgery/ fake pictures you like and plagiarism easier  3. Bio-related and Agricultural Technology DNA Replication image from the Human Genome Project Biotechnology transforms living things into products or new forms of life. Examples: Genetic engineering, bionics Agricultural Technology produces plants and animals for food, fiber, and fuel. Examples: Irrigation, food preservation, weed and insect control Both deal with living things: Plants, animals, and people Agricultural biotechnology is a range of tools, including traditional breeding techniques, that alter living organisms, or parts of organisms, to make or modify products; improve plants or animals; or develop microorganisms for specific agricultural uses. Biotechnology provides farmers with tools that can make production cheaper and more manageable. For example, some biotechnology crops can be engineered to tolerate specific herbicides, which makes weed control simpler and more efficient. Other crops have been engineered to be resistant to specific plant diseases and insect pests, which can make pest control more reliable and effective, and/or can decrease the use of synthetic pesticides. Impacts of Bio-Related Technology POSITIVE IMPACTS NEGATIVE IMPACTS HEALTH HEALTH – Side effects of some – Improves quality of medications life, vitamins, vaccines, – nausea, shortness of medications breath, etc.  Impacts of Agricultural Technology POSITIVE IMPACTS NEGATIVE IMPACTS FERTILIZERS FERTILIZERS –can make plants produce –have found their way into more food per acre ground water, polluting good drinking water  4. Medical Technology Medical technology is the application of scientific knowledge to solving problems in the human body. Doctors and other medical experts use it to discover symptoms to prevent, delay and treat diseases. Medical Technology creates tools to treat disease and injury. Examples: MRI, Lasers, prostheses, ultrasound, medications MRI Scanners: A diagnostic radiologist uses this medical device to scan the human body to check for cancerous tissues, organ malfunctions, and torn ligaments Impacts of Medical Technology POSITIVE NEGATIVE IMPACTS IMPACTS X-RAYS – Make it X-RAYS – Too many easier to diagnose x-rays can cause injuries cancer.  5. Environmental Technology Environmental Technology creates tools to minimize the effect of technology on the development of living things. Examples: Hybrid vehicles, conservation, waste management (recycling) Impacts of Environmental Technology POSITIVE IMPACTS NEGATIVE IMPACTS RECYCLING – RECYCLING – Improves water and air Disposal of garbage is quality more complicated and time consuming  6. Production Technology Production Technology is the manufacturing of physical goods on an assembly line and the construction of structures on a job site.  Production Technology Manufacturing changes Construction Technology natural or synthetic builds structures that materials into usable support loads and protect products. us from the environment. Examples: Clothing, vehicles, Examples: House, bridge, roads… food… Impacts of Production Technology Positive impacts Negative impacts Manufacturing Manufacturing Many industries use – New products help to make our life easier and materials that can harm increase leisure time the environment Construction Construction – Provides shelter, Noise and debris/ the improves roads, creates remaining of something that has been destroyed or employment broken up, traffic opportunities problems, accidents and injuries  7. Materials Technology The development of materials with outstanding combinations of mechanical, chemical, and electrical properties that make other advances possible. Examples: Mosquito repellent clothing, artificial skin grafts for burn victims, advanced building materials such as composite decking Materials technology examines the structure and properties of a material, how it's made, and how it can be used. Materials technology enables us to design durable construction components. The ability to design and adopt better-performing, energy-saving, cost-efficient materials with known durability characteristics is key to our construction industries future. Impacts of Materials Technology POSITIVE IMPACTS NEGATIVE IMPACTS NEW MATERIALS – NEW MATERIALS don’t know how the – able to reuse recycled materials will behave materials to help the over long periods of environment time.  8. Transportation Technology Provides a Transportation Technology way for people, animals, products, and materials to be moved from one place to the next. Examples: Flight – Airplane, rocket, space shuttle Land – Train, subway, automobile, bicycle Water – Commercial, cruise ships Non-vehicle – Conveyor belts, pipelines Impacts of Transportation Technology POSITIVE NEGATIVE IMPACTS IMPACTS Traveling long Accidents distances faster  9. Energy and Power Technology Energy is the ability or capacity to do work. Examples: Chemical Energy  Gasoline Mechanical Energy  Motion Thermal Energy  Steam Electrical Energy  Electricity Radiant Energy  Light Energy technology is an interdisciplinary engineering science having to do with the efficient, safe, environmentally friendly, and economical extraction, conversion, transportation, storage, and use of energy, targeted towards yielding high efficiency whilst skirting side effects on humans, nature, and the environment.  Energy and Power Technology Power is the rate at which energy is transformed from one form to another. Examples: Electrical power – provides light and operates motors Mechanical power – moves automobiles, trains, and airplanes Fluid power – uses fluids to produce motion Hydraulic – uses a liquid Pneumatic – uses a gas In the above slide, we stated that energy is the capacity to do work. In this definition, we are referring to potential energy. Once we have potential energy, we put it to use by converting it into kinetic energy. We have power when we can apply kinetic energy over a period of time to do work. Power makes work easier. Impacts of Energy and Power Technology POSITIVE IMPACTS NEGATIVE IMPACTS Without energy and Overuse of nonrenewable power, most resources, Burning fossil fuels technologies would causes greenhouse gases associated with global warming. not exist or work  10. Nanotechnology Nanotechnology is the creation of functional materials, devices and systems through control of matter on the nanometer length scale (1-100 nanometers), and exploitation of novel phenomena and properties (physical, chemical, biological, mechanical, electrical...) at that length scale. For comparison, 10 nanometers is 1000 times smaller than the diameter of a human hair. A scientific and technical revolution has just begun based upon the ability to systematically organize and manipulate matter at nanoscale. http://www.ipt.arc.nasa.gov/nanotechnology.html Nanotechnology is manipulating materials on an atomic or molecular level. Examples: Sensors, molecular manufacturing MOLECULAR MANUFACTURING – Faster diagnosis of diseases MOLECULAR MANUFACTURING – Weapons and surveillance devices can be made small, cheap, and powerful.  Impacts of Nanotechnology POSITIVE IMPACTS NEGATIVE IMPACTS IMPLANTED SENSORS IMPLANTED SENSORS Continuously sense and Impede privacy adjust medical treatment 1.2  Diffusion of Technological Innovations AN INNOVATION WILL SPREAD QUICKLY IF IT:  Has a great advantage over its predecessor  Is compatible with existing systems, procedures, infrastructures, and ways of thinking.  Has less rather than greater complexity  Can be tried and tested easily without significant cost or commitment  Can be observed and copied easily.  Advantages and disadvantages of Technology leadership Advantages: Disadvantages:  First-mover advantage  Greater risks  Little or no competition  Cost of technology development  Greater efficiency  Cost of market development and  Higher profit margins customer education  Sustainable advantages  Infrastructure costs  Reputation for innovation  Costs of learning and eliminating  Establishment of entry barriers defects  Occupation of bets market niches  Possible cannibalization of existing products  Opportunity to learn Technology followership  A manager’s decision on when to adopt new technology also depends on the potential benefits of the new technology, as well as the organization’s technology skills  Following the technology leader can save development expense 1.3 Key factors to consider in Technology Decisions  Framing Decisions about Technological Innovation Considerations Examples Market receptiveness: assess external Cell phone, MP3, personal digital demand for the technology(short/long run). assistants (PDAs), HDTV Technological feasibility: evaluate Deep see oil exploration, physical technical barriers to progress size of PC microprocessors Economic viability: examine any cost Solar fusion, fuel cells for considerations, and forecast profitability automobiles, missile defense system Competency development: determine Information technology in hospitals, whether current competencies are sufficient. digital technology in cameras Organizational suitability: assess the fit with Steel companies focusing on creativity culture and managerial systems. and innovation 1.4 Technology Management Managing Technology  What is Technology Management?  Technology Management (MOT) is concerned with development, planning , implementation and assessment of technological capabilities to shape and accomplish the strategic and operational objectives of an organization or central planning goals and priorities of a nation.  Technology management can also be defined as the integrated planning, design, optimization, operation and control of technological products, processes and services, a better definition would be the management of the use of technology for human advantage.  Technology management is set of management disciplines that allows organizations to manage its technological fundamentals to create competitive advantage.  The association of technology, Management, and Applied Engineering defines Technology Management as the field concerned with the supervision of personnel across the technical spectrum and a wide variety of complex technological systems.  Technology management programs typically include: instruction in production and operations management, project management, computer applications, quality control, safety and health issues, statistics, and general management principles.  Typical concepts used in technology management are technology strategy, technology forecasting, technology road-mapping (mapping technologies to business and market needs), technology project portfolio (a set of projects under development) and technology portfolio (a set of technologies in use). Technology Management (MOT) is mainly carried out at two levels: a. At National Level b.At Enterprise Level a. Technology Management (MOT) At National Level :  Main objective of it is to assure that the nation and its business firms gain sustainable technological competitiveness in the international markets and maintain strong position in the international business on long-term basis.  Developing appropriate technology strategy for the nation (e.g. internalization vs externalization strategy of the nation) Technology forecasting (i.e. forecasting the technological changes) At national Justification / appropriateness level, the domain of new technology (including justification for technology of technology adoption ) management Sustainable technologies; development of renewable includes the energy technologies following areas: Sustainable economic growth Planning national technology portfolio  Knowledge management (i.e. creation, deployment and protection of national technological knowledge base)  Managing external technology acquisitions viz guidelines for foreign technology collaborations  Managing technology absorption  Managing technology diffusion  Performance measurement of new technology  Technology and environment management (Green accounting, Environment Protection Act, 1986 etc)  Technology and health & societal management  Its main objective is to assure that the firm gains & maintains a strong position in its core technologies b. Technology which are relevant to its Management product-market relationship (MOT) At and that these technologies support the firm’s competitive Enterprise Level strategies. Overview of Technology Management (MOT) At Enterprise Level Figure. 1.1 Management of technology Evolution of Technology Management (MOT) At Enterprise Level Figure. 1.2 Evolution of management of technology At enterprise level, MOT includes following areas:  Developing technology strategy (e.g. leader versus follower strategy)  Technology forecasting  Managing enterprise’s technology portfolio  Technovation (technology innovation)  Knowledge management (e.g. creation, deployment, transfer and protection of firm specific technological knowledge viz through patent etc)  Implementation of new technology (including its integration with the existing structure, systems and workforce)  Technology transfer (including problems & management issues), Technology absorption (including problems & management issues)  Managing technology change (including organizational issues viz productivity and quality of work life)  Integration of engineering (R&D) and management (of new project) leading to successful implementation / commercialization  Integration of product and process technology ( for delivering the objects)  Technology advancement (e.g. learning and process improvement)  Managing technology at the boundary / border of the firm (e.g. collaboration and coordination with supply chain partners and customers) and Technology diffusion (from firm to suppliers and customers)  Performance measurement of new technology (e.g. technology assessment, technology audit and feedback)  Technology and environmental sustainability (e.g. environmental impact assessment, environmental audit, discharge of environmental responsibility, green marketing  The Key Tasks of MOT: The key tasks of MOT at enterprise level may be summed up as below:  Technology Planning like deciding technology strategy, selecting appropriate technologies etc.  R&D Management  Innovation Management  Strategic Management of Technology (SMOT)  Strategic Management of Technology ( SMOT)  Strategic Management of Technology (SMOT) means that the product, service or process technologies of an organization / enterprise are managed from a long range perspective, as these technologies have wide-ranging effects on all levels and functions in the organization. STRATEGIC TECHNOLOGY MANAGEMENT SYSTEM (STMS)  Strategic Technology Management System (STMS) calls for adopting systems approach in the organization on long term basis i.e. STMS emphasizes systematic management of technology on long term basis as the technology moves along its life cycle from birth to decline.  Strategic Technology Management System is a systems life cycle approach for strategic management of technology that includes eight phases as shown below: Figure. 1.3 Management of technology  PHASES OF STRATEGIC TECHNOLOGY MANAGEMENT SYSTEM (STMS) I. Technology Creation: This phase involves creation & generation of new technologies. This phase involves following activities:  Creativity & Invention  Innovation  Senior management commitment to technology creation and generation  Developing requisite & supportive corporate culture for promoting technology creation and generation  II. Technology Monitoring This phase calls for monitoring technology trends and changes before implementing new technology. It involves following activities:  Installing & developing information systems for monitoring technological trends and changes  Competitive analysis to understand competitiveness provided by existing and prospective technologies  Customer & supplier interfaces to understand market and technological changes  People links (viz. internal staff, research bodies etc) to understand market trends and technological changes  III. Technology Assessment This phase involves following activities: Understanding directions of markets in terms of technology Integration of technology & business planning Customer interfaces to assess the commercial feasibility of prospective technologies Assessing contributions of technology projects to business strategy  IV. Technology Transfer This phase leads to transfer of technology from external source to own Research and Development (R&D); and internally from R&D to production. This phase involves following activities:  Entering strategic alliances to develop or acquire potential technologies  Using product design teams for reaping benefits of planned technological change  Reducing functional barriers to technology transfer  Utilizing people links for successful technology transfer i.e. involving people across the organization  V. Technology Acceptance This phase calls for acceptance of technology as a beneficial change and involves following activities: Supportive organizational design & structures Supportive corporate culture Senior management commitment Assessment of impacts of technological change on organization, enhancing benefits, reducing adverse effects, smoothening barriers / hurdles in the change  VI. Technology Utilization Effective project management for seeking maximum utilization Process technologies to support and facilitate maximum utilization Supportive marketing strategies, efforts and utilizing feedback for This phase improvement. involves following This phase leads to technology activities : growth as reflected by increase in sales.  VII. Technology Maturity This phase involves analyzing maturity of existing technology and its related products / services / processes through study of following indicators:  Efficiency vs. effectiveness contributed by the current technologies in attaining organizational goals  Market stability in terms of volumes / sales  Rise of substitutes in the marketplace  Diminished returns on investment  Decline of market share  Loss of competitiveness in the marketplace  VIII. Technology Decline This is the last phase.  During this phase a technology and its related products / services / processes/ applications show substantial / sharp decline in usage / applications / sales.  Technology and its associated products or services become ordinary commodity. Technology degrades and becomes obsolete.  This phase calls for movement to new technological opportunities.  Thereafter the cycle re-starts by the creation of a new technology / movement towards a new technology. All the above steps are repeated.