AT6001: Fundamentals of Technology

Management
Lecture 1
Introduction

Dr. Swagata Dutta

Associate Professor, IAT, BUET
Course Evaluation Structure

⚫ Continuous Assessment – 70 %of total marks

⚫ Attendance – 10 %
⚫ Best 3 out of 5 Assessments – 60 %
⚫ (Assignments (2)nos.Mid-term (1 no.) and Class Tests (2/3 nos.))

⚫Final Examination – 30 %total marks

⚫ You must sit for the final exam!
LEARNING OUTCOMES
Understand Technology Management Fundamentals: Cover principles of
technology transfer, forecasting, assessment, planning, portfolio management,
resource allocation, and legal/ethical considerations to effectively govern technology
initiatives.

Analyze Technology Transfer And Its Implications: Study the movement of

knowledge, skills, and innovations between organizations, considering licensing,
alliances, and challenges like intellectual property rights.

Forecast Emerging Technologies And Their Impact: Learn methods for

predicting disruptive technologies, such as trend analysis and scenario planning, to
anticipate their influence on markets and business strategies.

Assess Suitability And Feasibility Of Technologies: Evaluate technical

capabilities, cost-effectiveness, and compatibility with existing systems to make
informed decisions about technology adoption and implementation.

Study The Relationship Between Technology Policy And Business

Management: Explore how technology integrates with marketing, operations, finance,
and HR, enabling optimization, innovation, and competitive advantage.
Agenda:

 Introduction to Technology Management

 Importance and Benefits
 Key Concepts and Frameworks
 Case Studies and Examples
What is Technology Management?
Basic Definition: The discipline that combines management
and engineering principles to plan, develop, implement, and
evaluate technological capabilities within an organization.

Technology Management focuses on effectively and strategically

leveraging technology to achieve business objectives.

The Association of Technology, Management, and Applied Engineering (ATMAE) based in

the United States defines technology management as "the process of planning, organizing,
staffing, directing, and controlling the use of technology to achieve organizational goals
efficiently and effectively." [Reference: ATMAE]

The International Association of IT Asset Managers (IAITAM) based in the United States
defines technology management as "the set of policies and practices that leverage
technologies to improve organizational performance, deliver business value, and ensure the
effective and efficient use of technology resources." [Reference: IAITAM]
What is Technology Management?

The Project Management Institute (PMI), a globally recognized organization, defines

technology management as "the planning, organizing, and controlling of technological
activities in an organization to achieve desired goals and objectives." [Reference: PMI]

The Information Technology Management Association (ITMA) based in the United States
defines technology management as "the discipline whereby all of the resources of
technology are managed in accordance with an organization's priorities and needs."
[Reference: ITMA]
Importance of Technology Management:
 Drives Innovation and Competitive Advantage
 Enhances Operational Efficiency and Effectiveness
 Enables Strategic Decision Making
 Facilitates Adaptation to Technological Changes
 Supports Growth and Sustainability

Benefits of Effective Technology Management:

 Improved Productivity and Performance
 Enhanced Customer Experience
 Increased Profitability and Market Share
 Better Risk Management and Mitigation
 Sustainable Business Growth
Key Concepts in Technology Management:

 Technology Transfer
 Technology Diffusion
 Technology Convergence
 Technology Lifecycle
 Technology Planning and Forecasting
 Technology Adoption and Diffusion
 Technology Portfolio Management
 Technology Governance and Policy
Technology: The root of Societal Evolution

⚫ Over hundred of centuries human societies have gradually

evolved from their predominant dependence on Mother
Nature to a predominant involvement with various kinds of
Tools
⚫ Tools enable the mankind to depart from a direct dependence on Nature!
Technology: The root of Societal Evolution

⚫ The progress of civilization

is frequently identified by the
dominant technology of that
age……
The Evolution of Production Technology

In the late 1800s, Fredrick Taylor introduced the

Scientific method in factory administration –
Technology Scientific Management System
• He introduced the idea that management should design the
work and workers should execute it!
• The concept of Standard Time was created to enable
management to exercise control over production..
• Problem areas pertaining to work were identified and
scientifically analyzed; alternative solutions were evaluated;
technology best alternative was selected and implemented
• Incentive system to raise productivity!
The Evolution of Production Technology

In early 1900s, Henry Ford – Assembly Line!

• Specialization of workers!
• Producing just a few standardized products – Increase Efficiency!
• Economy of Scale was born
Frank and Lillian Gilbreth – Motion study!
• Reducing wasted movements

In 1950s, the era of Digital Computers Emerged

• Better efficiency in technology solution of complex numerical problems
• Ushered the Information age - Revolution in S&T!
Important Technological Innovations
Interrelationship between Science & Technology

⚫ Science – deals with understanding the laws of nature!

⚫ This leads – discovery of fundamental knowledge about the world, the universe,
and all living things!
⚫ Neutral on the question of how this knowledge may be used.
⚫ When scientific knowledge is applied to the things, we do in life….that
knowledge enters the realm of Technology!

⚫ Enormous technological preparation facilitated many advances in Science.

⚫ Technology and science are now highly interrelated and interdependent…
Interrelationship between Science & Technology

⚫ Science – Evaluation criteria – based on its Merit!

⚫ Not on its possible application!
⚫ Technology - in terms of its contributions to the desired social and
economic goals of a country.
⚫ Scientific knowledge – extensively and universally available as
published material
⚫ Technology – tradable commodity with a price tag
⚫ Proprietary elements are build on …

⚫ Scientific Discoveries & Technological Innovation – interconnected, can influence

each other, scientific discoveries lead to innovation, technology permits scientific
discoveries, together when connected with the market – Influence human lives!
Components of an Innovation Cycle
Five different Phases – each succeeding phase
being characterized by an economic activity of
higher technology content.
Transformation from Natural World to Man made
World
⚫ The present man-made world
– Technological World
⚫ The creation of humans!
⚫ Application of technological
knowledge and wisdom
⚫ The process started when
mankind begin to utilize his
brain to create options and
opportunities beyond those
originally offered by
nature….
Transformation from Natural World to Man made
World
Price of a Technology
⚫ The price of a technology is
determined by – Market Forces!
⚫ A typical norm of price of a
technology is shown at the right…
⚫ During the initial phase of entry
into open market – high price
elasticity!
⚫ Price comes down as more
producers evolve and the product
price becomes competitive… .
⚫ In the maturity stage - Available
to considerable majority of people.
Technology – Price Relationship
When a company has a technological advantage – command a
premium price for its technology – Value of technology to
customers!
• If the knowledge gap between the company and the customer is high – high price!
• With time - customers gains experience with the technology – knowledge gap
shrinks…
• The value of technology – will decline or even reverse ( if the knowledge is
transferred to the customer who can improve on the initial technology)

• Strategy required – for technology diffusion!

Statistics
Here are some statistics related to technology management:

Digital Transformation: According to a survey by Gartner, 66% of

organizations have plans to invest in digital transformation initiatives. This
highlights the growing importance of technology management in enabling
organizations to adapt and thrive in the digital age. [Reference: Gartner]

Cloud Computing: The global public cloud services market is projected to

reach $397.47 billion in 2022, demonstrating the increasing adoption of cloud
technologies. Effective technology management is crucial for organizations to
leverage the benefits of cloud computing, such as scalability, cost efficiency,
and flexibility. [Reference: Statista]

Data Security: Cybersecurity Ventures predicts that global spending on

cybersecurity will exceed $1 trillion between 2017 and 2021. With the
increasing prevalence of cyber threats, organizations must prioritize
technology management practices that ensure robust data security and
protect against cyber-attacks. [Reference: Cybersecurity Ventures]
Statistics
Internet of Things (IoT): By 2025, it is estimated that there will be over 75
billion connected IoT devices worldwide. Technology management plays a
critical role in harnessing the potential of IoT, managing device connectivity,
data collection, and leveraging IoT analytics for improved decision-making.
[Reference: Statista]

Artificial Intelligence (AI): According to IDC, global spending on AI systems

is forecasted to reach $97.9 billion in 2023. Effective technology management
is necessary to implement AI solutions, integrate AI algorithms into business
processes, and leverage the transformative power of AI for improved
efficiency and innovation. [Reference: IDC]

IT Asset Management: The global IT asset management market size is

expected to reach $3.3 billion by 2026, driven by the need for efficient
management of IT assets, compliance with software licensing, and cost
optimization. Technology management practices that encompass IT asset
tracking, inventory management, and software license management are vital
for organizations to maximize their IT investments. [Reference: Grand View
Research]
Real-World Example: Tesla's Disruption of the
Automotive Industry

Background: Tesla, founded by Elon Musk in 2003, is an electric vehicle

(EV) manufacturer that has transformed the automotive industry through its
innovative technology and business model.

Impact on the Automotive Industry:

 Electric Vehicle Revolution: Tesla's success has spurred a global shift

towards electric vehicles, challenging traditional gasoline-powered cars.
 Range and Performance: Tesla's EVs offer longer driving ranges and
impressive acceleration, dispelling the myth of limited range and
sluggishness associated with electric cars.
 Charging Infrastructure: Tesla's Supercharger network has revolutionized
EV charging by providing faster and more convenient charging options,
addressing one of the major concerns of potential EV buyers.
 Autopilot and Self-Driving Technology: Tesla's advancements in
autonomous driving technology have accelerated the development and
acceptance of self-driving vehicles.
Business Model Innovation:

 Direct-to-Consumer Sales: Tesla bypasses the traditional dealership model and

sells vehicles directly to consumers, enhancing the customer experience and
streamlining the purchasing process.
 Over-the-Air Updates: Tesla's ability to remotely update software and add new
features to its vehicles has redefined the ownership experience and allowed for
continuous improvement.
 Energy Storage Solutions: Tesla's expansion into energy storage with products
like the Powerwall and Powerpack has enabled the integration of renewable
energy sources and grid stability.

Lessons Learned:

 Disruptive Potential: Tesla's success showcases the potential for disruptive

technology and business models to revolutionize established industries.
 Technology Leadership: Investing in cutting-edge technology and continuous
innovation can drive market leadership and differentiation.
 Customer-Centric Approach: Placing a strong emphasis on customer
experience and addressing pain points can create a loyal customer base and
disrupt traditional industry practices.
Conclusion:

Tesla's story exemplifies the power of technology management in driving

industry-wide transformations and challenging conventional norms.

The course will delve deeper into the strategic management principles that
underpin such disruptive innovations and explore how organizations can
harness technology to gain a competitive advantage.
Real-World Examples:

Amazon Web Services (AWS): AWS is a leading cloud computing platform that provides on-demand
computing resources to individuals, companies, and governments. Amazon's technology management
expertise has enabled them to build a scalable and secure infrastructure, offering a wide range of
services such as storage, computing power, and machine learning. AWS's success has transformed the IT
industry by facilitating the shift from on-premises infrastructure to cloud-based solutions.

Netflix: Netflix has become the world's leading streaming platform, thanks to its effective technology
management strategies. The company utilizes big data and machine learning algorithms to personalize
recommendations and optimize content delivery. Netflix's continuous investment in technology
infrastructure and content distribution systems has allowed them to disrupt the traditional television
industry and capture a significant market share.

SpaceX: SpaceX, founded by Elon Musk, is known for its advancements in space technology and
exploration. The company's technology management revolves around developing reusable rockets and
spacecraft, reducing the cost of space travel. SpaceX has successfully disrupted the aerospace industry
by landing and reusing rockets, pushing the boundaries of what is possible in space exploration.
Real-World Examples:

Apple Inc. is a multinational technology company founded by Steve Jobs, Steve Wozniak,
and Ronald Wayne in 1976. The company's technology management practices have been
instrumental in its growth and success over the years. Here are some key aspects of Apple's
technology management:

Design and User Experience: Apple has consistently emphasized design and user
experience in its products. From the sleek and minimalist hardware designs to the intuitive
and user-friendly software interfaces, Apple products are known for their aesthetic appeal
and ease of use. This focus on design and user experience has created a strong emotional
connection with consumers and fostered brand loyalty.

Integration of Hardware and Software: One of Apple's strengths lies in its ability to tightly
integrate hardware and software components. By developing both the operating system
(iOS, macOS) and the hardware (iPhone, Mac), Apple ensures a seamless user experience
and optimal performance. This integration allows for better optimization, security, and control
over the entire product ecosystem.
Real-World Examples:

Ecosystem and Services: Apple has created a comprehensive ecosystem of devices,

services, and software that work together harmoniously. The Apple ecosystem includes
products like iPhone, iPad, Mac, Apple Watch, Apple TV, and services like iCloud, Apple
Music, Apple Pay, and the App Store. This integrated ecosystem provides a seamless
experience for users across multiple devices and encourages customer loyalty.

Research and Development (R&D): Apple has a strong focus on research and
development, investing a significant amount of resources into innovation. This commitment
to R&D has enabled the company to develop groundbreaking technologies, such as the
Touch ID fingerprint sensor, Face ID facial recognition, and the custom-designed Apple
Silicon chips for Mac computers. By pushing the boundaries of technology, Apple stays
ahead of the competition and maintains its reputation for innovation.

Supply Chain Management: Apple's technology management extends to its supply chain,
which is known for its efficiency and quality control. The company works closely with
suppliers to ensure the availability of high-quality components and to maintain strict
manufacturing standards. This attention to detail in the supply chain allows Apple to deliver
consistent and reliable products to its customers.
Real-World Examples:

Retail Strategy: Apple's technology management extends to its retail strategy, which
focuses on creating a unique in-store experience. Apple Stores are designed to showcase
products and provide a personalized customer experience. The integration of technology into
the retail environment, such as the use of interactive displays and knowledgeable staff, has
contributed to Apple's success in retail sales.

Apple's technology management practices have positioned the company as a leader

in the consumer electronics industry. By emphasizing design, integration, ecosystem
development, and innovation, Apple has consistently delivered products that resonate
with consumers and shape the technology landscape.
Real-World Examples:

Google, a subsidiary of Alphabet Inc., is a multinational technology company that

specializes in INTERNET-RELATED SERVICES AND PRODUCTS. Google's technology
management practices have played a significant role in its growth and dominance in
various areas. Here are key aspects of Google's technology management:

Search Technology: Google's success can be attributed to its pioneering search

technology. The company's search engine algorithm, known as PageRank, revolutionized
the way information is indexed and retrieved on the internet. Google's technology
management in search has focused on delivering relevant and accurate search results,
improving the user experience, and constantly refining their algorithms to stay ahead in the
search market.

Data Analytics and Machine Learning: Google has heavily invested in data analytics and
machine learning capabilities. Their technology management approach involves leveraging
vast amounts of data to gain insights and develop intelligent algorithms. Technologies like
Google Analytics and Google Cloud Platform enable businesses to extract valuable
information from their data, while products like Google Assistant and Google Photos
demonstrate the power of machine learning in everyday applications.
Real-World Examples:

Product Diversification: Beyond search, Google has successfully expanded its product
portfolio through strategic technology management. They have developed and acquired a
range of products and services, including Gmail, Google Maps, Google Drive, YouTube,
Android, and Google Chrome. Google's technology management strategy focuses on
delivering innovative solutions that enhance user productivity, communication, and
entertainment across various platforms.

Cloud Computing: Google Cloud Platform (GCP) is Google's cloud computing service that
offers infrastructure, storage, and analytics solutions to businesses. Google's technology
management in the cloud space involves providing scalable and secure cloud services to
organizations worldwide. By leveraging their infrastructure and machine learning capabilities,
GCP competes with other cloud providers, enabling businesses to leverage the power of the
cloud for their operations.
Real-World Examples:

Open Source Contributions: Google has been a major contributor to the open-source
community, demonstrating its commitment to collaborative technology management. Projects
like Android (open-source mobile operating system) and Kubernetes (container orchestration
platform) have gained significant traction and fostered innovation in the industry. Google's
open-source contributions have not only benefited the development community but also
allowed the company to influence and shape industry standards.

Research and Development (R&D): Google places a strong emphasis on research and
development, investing in cutting-edge technologies and long-term projects. The company's
research initiatives include areas such as artificial intelligence, machine learning, quantum
computing, and autonomous vehicles. By nurturing a culture of innovation and investing in
R&D, Google continues to push the boundaries of technology and explore new frontiers.

Google's technology management practices have positioned the company as a leader

in internet services, data analytics, and cloud computing. Their focus on search
technology, data-driven insights, product diversification, open-source contributions,
and ongoing research and development has allowed Google to shape the digital
landscape and provide innovative solutions to users and businesses around the
world.
Thank you for your patience!