Managing Technological Change

Managing technological change

Technological change 

Competitive advantage is based on firm specific

combination of scientific and technical knowledge and know-how leading to & embedded in products, services and management systems Technologies are embedded not only in product but in all the primary and support activities of the Firm. 

Technological Changing on the Basis of Non Price Factors Customers Demand  More variety  More customization  Frequent model changes  High quality  Faster delivery  Better Service  Advanced design

Understanding the Technology Management Challenge Traditional trade offs – between price and quality or between price and choice – are replaced by competitive prices and whole set of non-price factors.  Quality used to be a differentiator earlier now if you cannot offer quality, you cannot be in the market. 

Activities Primary Support

The Value Chain and Technology Change Firm Infrastructure

M A

Human Resource Management

R G

Technology Development

I N

Procurement

M

Inbound Logistics

A

Operations

Outbound Marketing Service Logistics and Sales N

Acknowledgement - UNIDO: Guidelines for the Formulation of Technology Strategies for Hi-tech Companies

R G I

Technological Change Mapping Basic / Generic Technologies, Proprietary Technologies, Pacing Technologies and Emerging Technologies Possible future products / processes Planned new products / processes Core products / processes

Can use but need to keep track of best sources of supply

Basic

Keep watching Invest in R&D

Keep close watch

MUST MAINTAIN Proprietary

Pacing

Emerging

Impact of Technological Change Technological change allows firms to produce the same rate of output using fewer inputs  Technological change may be input neutral, labour saving or capital saving  Single most source of economic growth in the USA has been “Technological Change” 

Response Strategy to cope with Change 

Products • • •

What product is the company making? Is that product environmentally acceptable? Are there short-, medium-, or long-term risks in the continuation of this product? • Should this product be re-designed to take account of the environmental issue? • What are the risks and what are the opportunities presented?

Response Strategy to cope with Change 

Technologies • Have technologies moved on? • Is there an opportunity to innovate with technology? • Is there room to modify existing technologies? • Could these technologies be better used? • Is operator training adequate? • What are the risks in opportunities?

Response Strategy to cope with Change 

Competitors • Who are the enterprises competitors? • Who are the local, national and international competitors? • What are these competitors doing?  Are they designing products and processes for the environment?  Are they marketing their products in an innovative way?  Are they driving down costs through environmental innovation?  What risks do I face in comparison to my competitors?

Proposed model for PDTCs Universities

Data & Information Center

Intranet

High Tech Companies Technology Pole I

Specialized projects

Research Labs

Training Regional Pole or Technology Management Center

Technology Pole II

Fund Mobilization

Govt./Local body relations Technology Pole n

Project 1

P2

P3

Pn

Thank-you