INNOVATION &

TECHNOLOGY
MANAGEMENT
UNIT 1
By:- Ayesha khan( Asst.
Professor of Management)
Technology: Definition &
characteristics
 WEBSTER’S dictionary defines technology in several ways:
1) The branch of knowledge that deals with the industrial arts,
applied science, or engineering science.

2) The application of this knowledge for practical ends.

3) The terminology of an art, science, etc.; technical nomenclature.

4) A scientific or industrial process, invention, method, or the like.

5) The sum of the ways in which social groups provide

themselves with the material objects of their civilization.
Characteristics:
 Opportunity

 Appropriability

 Transferability

 Resources
Levels of knowledge
Intuitive / Tacit

Codify and
verify

Science
formalized
knowledge

Develop

Physically
embodied
products and
processes
Management of technology
(MOT)
Management of Technology
PURPOSE
VALUE -

WHAT
DRIVEN How

TECHNOLOGY ORGANISATION &

MANAGEMENT
STRATEGY

TECHNOLOGY
CHOICES
Two complementary perspectives in
management
 Market based views
 Resource based views
Dimensions Market based Resource based

Drivers of strategy Customers and Unique resources

competitors
Derivatives Resources Market opportunities

Strategy profile Positional Core competencies

Appropriate contexts Mature markets Dynamic markets

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.
The four phases of the Technology
life-cycle
 The TLC may be seen as composed of four phases:

 Research and development (R&D) phase (sometimes called the "bleeding edge")
when incomes from inputs are negative and where the prospects of failure are high.

 The ascent phase when out-of-pocket costs have been recovered and the technology
begins to gather strength by going beyond some Point A on the TLC (sometimes called
the "leading edge")

 The maturity phase when gain is high and stable, the region, going into saturation,
marked by M, and

 The decline (or decay phase), after a Point D, of reducing fortunes and utility of the
technology.

 S-curve
The four stages of technology
life cycle are as follows:-
 Innovation stage: This stage represents the birth of a new product, material or process resulting
from R&D activities. New ideas are generated depending on gaining needs and knowledge factors.
Depending on the resource allocation and also the change element, the time taken in the innovation
stage as well as in the subsequent stages varies widely.

 Syndication stage: This stage represents the demonstration and commercialization of a new
technology, such as, product, material or process with potential for immediate utilization. Many
innovations are put on hold in R&D laboratories. Only a very small percentage of these are
commercialized. Commercialization of research outcomes depends on technical as well non-
technical, mostly economic factors.

 Diffusion stage: This represents the market penetration of a new technology through acceptance of
the innovation, by potential users of the technology. But supply and demand side factors jointly
influence the rate of diffusion.

 Substitution stage: This last stage represents the decline in the use and eventual
extension of a technology, due to replacement by another technology. Many technical
and non-technical factors influence the rate of substitution. The time taken in the
substitution stage depends on the market dynamics.
TECHNOLOGY ADOPTION LIFE CYCLE
TECHNOLOGY ADOPTION LIFE CYCLE

 Innovators - These are risk-oriented, leading-edge minded individuals who are extremely
interested in technological developments (often within a particular industry). Innovators
are a fractional segment of the overall consumer population.

 Early Adopters - A larger but still relatively small demographic, these individuals are
generally risk-oriented and highly adaptable to new technology. Early adopters follow
the innovators in embracing new products, and tend to be young and well-educated.

 Early Majority - Much larger and more careful than the previous two groups, the early
majority are open to new ideas but generally wait to see how they are received before
investing.

 Late Majority - Slightly conservative and risk-averse, the late majority is a large group
of potential customers who need convincing before investing in something new.

 Laggards - Extremely frugal, conservative, and often technology-averse, laggards are a

small population of usually older and uneducated individuals who avoid risks and only
invest in new ideas once they are extremely well-established.
Technological
Environment
 External factors in
technology that
impact business
operations. Changes
in technology affect
how a company will
do business. A
business may have
to dramatically
change their
operating strategy
as a result of
changes in the
technological
environment.
LEVELS OF TECHNOLOGICAL ENVIRONMENT

Macroenvironment
Task

Industry/
Firm
Competitive
Parameters of technological
environment
1. Task environment: It comprises generally of customers, suppliers,
competitors and other environmental agencies directly related to the firm.
2. Industry / Competitive environment: Environmental factors that directly
affects all competitors in the same industry can be a part of industry
environment. Ex:- substitute products, suppliers of raw material ,
customers, rivalry
3. Macro environment:- it can be categorized in 4 broad segments:-
• Social-Ex, demographics, life styles, social values.
• Economical- economic conditions facing by all industries.
• Political – administrative or regulatory laws, rule and regulations.
• Technological- new product, process or materials.
Changes in technological environment
 Induced changes:- Technological consequences created by social, political or
economic forces.
 Autonomous changes

Major current developments in the technological

environment

• Globalisation
• Time Compression
• Technology Integration