Technology Design and

Evaluation

Chapter I: Introduction

Prof. Dr.-Ing. Alexander Schönmann

© Eva Körner, TUM; alphaspirit – shutterstock
Source of image: NicoElNino – fotoloia.com 2
Why is Technology Design and Evaluation becoming
increasingly important? (I/III)
Early identification of trends and reduction of development times as success factors

Shortening of product life cycles

-33% -52% -44% -41%

source: Weiber R., Kollmann T., Pohl A. (2006) Das Management technologischer Innovationen. In: Kleinaltenkamp M., Plinke W., Jacob F., Sö A. (eds) Markt- und Produktmanagement.
Gabler. https://doi-org.thi.idm.oclc.org/10.1007/978-3-8349-9050-1_2. p. 87

Payback risk
Accumulated profit decreases by...

2% ...if development costs are 30% higher than planned

4%
...if actual product costs are 10% higher than planned

30%
...if product launch is 6 months late

source: Weiber R., Kollmann T., Pohl A. (2006) Das Management technologischer Innovationen. In: Kleinaltenkamp M., Plinke W., Jacob F., Sö A. (eds) Markt- und
Produktmanagement. Gabler. https://doi-org.thi.idm.oclc.org/10.1007/978-3-8349-9050-1_2 , p. 87
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Why is Technology Design and Evaluation becoming
increasingly important? (II/III)
Early identification of trends and reduction of development times as success factors

Important
Direction of action of technology management methods

Typical reaction of traditional companies

Value of adaption

Event

Insights about Methods for early detection

1
event become (technology foresight)
available
Analysis Methods for technology
completed Measures Measures 2
approved evaluation
takes effect

3 Methods for technology planning

1 2 3 4
time

Insight Analysis Implementation 4 Methods for technology design

Decision latency
latency latency latency

de
Action distance or reaction time
Loss of value / delay
Companies become faster and more agile with
technology design and Evaluation methods

source: based on Hackathom 2002; Muehlen/Shapiro 2010 / Schuh et. Al 2017,acatech Studie Industrie 4.0 Maturity Index
4 source: FIR e. V. / RWTH Aachen
Why is Technology Design and Evaluation becoming
increasingly important? (III/III)
Typical Questions from industrial practice

Which technology projects Which technologies will be

Are there alternatives to the should be prioritized, started or available and ready for use in
technologies used? stopped? the future?

How can technologies What technology competence

be planned efficiently? do we have as a company

How to identify new

technologies?
How to develop a
technology to
maturity? How do we exploit our
technology assets?

How to build and protect

technological knowledge? Image source: Audi AG

How do we select Does it make sense to use a

technology for business different technology? if so,
fit? when?
source: adapted from Schuh & Klappert p. 7 (978-3-642-12529-4), Cetindamar, Phaal, Probert 2016
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What is Technology and Technology Management?
Tasks and Definitions

„Technology is the Art of Technique“ Niiniluoto 1991

Technology is the application of knowlede to achieve practical results Rousel et al. 1991

Technique refers to the concrete application of technology to solve problems, i.e. the material Bullinger 1994 / Perillieux 1987
Technology

results of the problem-solving process (translated)

Technology is knowledge of natural, social and engineering sciences which is used to solve Tschirky 1998
(translated)
practical problems in the field of R&D (product) and production (process)

Technology encompasses technique as a subsystem and includes knowledge, skills, and

Binder & Kantowsky 1996
abilities for solving technical problems as well as the equipment, facilities, and processes that (translated)
serve to put scientific knowledge into practice. (Integradet understanding of technology)

„Technology is knowledge applied to products and production processes“ Trott 2017

Technology Management

„Technology Management includes planning, directing, control and coordination of the

National
development and implementation of technological capabilities so that a firm can shape and research
accomplish their strategic and operational objectives. Council 1987

Technology management has the task of making the required technologies available for future Gochermann 2020
business performance (e.g. products, processes, services of the company) at the right time and (translated and slightly
at a reasonable cost. adapted)

Technology Design and Evaluation focuses on the engineering perspective of technology

management: technology development projects (technological point of view)
6 further reading: Taylor&Taylor (2012), The technology life cycle: Conceptualization and managerial implications. Int. J. Production Economics 140, 2012, 541-553
Classification of Technology Management in the corporate
context (I/II)
The whole picture
“Technology Management is a
challenging topic, in terms of both Dr. Rob Phaal
theory and practice.”
https://www.ifm.eng.cam.ac.uk/people/rp
108/

Key aspects of the generic framework

• The linkage between technological and

commercial perspectives in the firm
• The knowledge flows that support this
linkage
• The core business processes (strategy,
innovation, operations)
• The core Technology Management
activities (I identification, S selection, A
acquisition, E exploitation, P protection L
learning)
• The organizational and environmental
context in which the firms operates
• Time (synchronization, evolution)

source: Cetindamar, Phaal, Probert 2016, pp. 6

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Classification of technology management in the corporate
context (II/II)
Interfaces, differentiation and overlaps

A common framework of related disciplines…

IM
TM

R&D TM R&D
IM
Focus of Technology Design
and Evaluation
A technology-oriented A product-oriented
External acquisition perspective perspective
Technology Management

Innovation Management (in the broader sense)

Storage, internal acquisition Introduction of an Market launch of a new

and internal further innovation within the product or service
development of technological company, e.g. production
knowledge through R&D introduction / new process
efforts
R&D Management Innovation Management (in the narrow sense)

External exploitation

Technology
Technique
Integrated understanding of Technology
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source: adapted from Schuh & Klappert p. 9 (978-3-642-12529-4), Brockhoff 199. p. 71,153; Rummel 2014
What kind of projects will we consider? (I/II)
Technology development projects
ROI= Return on Investment

“Blue Box” research by William H. Matthews

Long tern research and
science: generate many 5 core questions
new ideas and consider moving from a
technical feasibility bright idea to a
commercially
succesful product

Technological
options for the “One of the cruelest business
future: assessment
and selection of
lessons that top managers must
technologies draw from the history of
technological progress is that
most technologies will be
replaced and most efforts to
replace them will fail.”

“A company can lose money,

market share, and/or its future
if it spends too little on
Project and Product
technological innovation; and,
Managers (product
development): a company can lose any or all
deliver marketable of these if it spends too much.”
results

Source: Matthews (1991): Kissing technological frogs: Managing technology as a strategic resource
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What kind of projects will we consider? (II/II)
Classification of R&D projects

The R&D continuum Classification of areas of R&D

R&D is to develop new knowledge and apply scientific or engineering knowledge to connect the knowledge in one field to
that in others Rousel et al. 1991

Involves work of a general nature. Conducted in laboratories. Output: Scientific Papers. Some findings will be
Basic reserach
developed further to produce new technologies
R&D operations

Applied research Involves the use of existing scientific principles for the solution of a particular problem. Conducted by
Universities and large companies. Output: Patents; base of new products

Development Involves the use of known scientific principles, but the activities centre on new products or products
improvements. Activity will involve overcoming technical problems associated with new products.

Technical Service Focuses on providing a service to existig products and processes. Typically this involves cost and/or
performance improvements including design changes to lower manufacturing costs
10 Source: Trott 2017: Innovation Management and New Product Development, 978-1-292-13342-3, pp. 306
Technology Design and Evaluation: Main activities
Structure of the Lecture and main activities

Technology
identification

Technology
Technology
evaluation and
protection
selection

Supporting activities:

Introduction and • Project Management

coporate • Knowledge
context
Management
Technology
marketing
Technology • Innovation
planning
Management

Technology
acquisition Technology
exploitation

Gregory (1995): Technology management: a process approach. Proc Instn Mech Engts Vol 209; Cetindamar, Phaal, Probert 2016, pp. 6
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