Technology

Unit 1

Review of Technology Management:

The future of the Strategy as defined in the book refers to the definition, planning and achievement of the long-term objectives of the organization. The purpose of a business strategy is to gain a sustainable economic advantage while that of a technology strategy is to gain a competitive edge through technology. Success of a business strategy is directly related to the correct identification of technology required for the business (e.g. product design is a key technology requirement for manufacturing) and correct analysis of the strategic options provided by the existing and emerging technologies.

Strategizing is a creative process while planning should be a systematic process. Effective technology management is based on successfully linking technology and business strategies. The goal of strategic planning is to transform business strategies into core technologies so that change in business direction is reflected in the R&D of the organization. Forecasting of technology leads the way to successful technology planning e.g. Microsoft gained a major advantage when it correctly forecasted the major shift in technology from PC based applications to internet based applications in the 1990s.

Technology planning consists of making decisions that affect the selection of R&D projects, allocation of resources and timetables for successful implementation of strategies. Technology exploitation (how technology can be used to achieve the strategic objectives of an organization) is an integral component of technology strategy. The use of technology to gain a competitive advantage is equally effective for both service and manufacturing organizations. A two pronged approach of focusing on customer satisfaction and technology is a winning combination. e.g. Wal-Mart, the world's largest retailer apart from being customer savvy, has a strong logistics and transportation arrangement.

Companies must use special...