HANDBOOK OF TECHNOLOGY MANAGEMENT

Gerard H. "GUS"Gaynor,
Editorin Chief

McGWAW-Hlhb
New York San Francisco Washington, D.C. Auckland Bogota Caracas Lisbon London Madrid MexicoCity Milan Montreal Mew Delhi San Juan Singapore Sydney Tokyo Toronto

Library o f Congress Cataloging-in-Publication Dada

Handbook of technology management / Gerard H. "Gus" Gaynor, editor in chief. p. cm. Includes bibliographical references and index. ISBN 0-07-023619-4 1. Technology-Management-Handbooks, manuals, etc. I. Gaynor, Gerard 13. T49.H257 1996 658-dc20 96-11637 CIP

McGraw-Hill

A Division of 7keMc~ew.HilLCompanies

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Copyright 0 1996 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or dislnbuted in any form or by any means, or stored in a data base 01. retrieval system, without the prior written permission of the publisher.

ISBN 0-07-023619-4
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CHAPTER 1

MANAGEMENT OF TECHNOLOGY
DESCWIPBiON, SCOPE, AND BMPbBiCATIONS
Gerard H. (Gus) Gaynor
G. H. Gayizor. aizd Associates, hlc. Mii7izeapolis, Minizesotn

In a speech at the First International Conference on Engineering Management in 1986 E d w a r d Roberts, David Sarnoff professor of management of technology a t Massachusetts Instilute of Technology, suggested that the failures of the automotive, office equipment, and electronics industries were not a result of trade, economic, or political policies but froin the inability of industry to implement programs in technology management. He emphasized the need for Integrating technology into the firm's strategic objectives Taking a proactive stance in introducing new technologies, new products, and new processes with a greater emphasis on cycle time Increasing the productivity and performance of the firm's technical cornrnuility Understanding the interdisciplinary needs in project management Analyzing Lhe resources and infrastructure to effectively select the technical scope of the y o r k effort

Dr. Roberts also focused on the need for increasing the manager's understanding of the issues related to the 177nnngeineizt of teclznology (MOT). His major concern was that universities could be accused of false advertising in their depiction of MOT courses. He said that there is seldom any teaching of either engineering management or MOT. There is a teaching of both engineering and management as separate disciplines, but no teaching of engineering and management combined. For seine reason the "and" was omitled. This situation is not unusual; acadenlic inslitulions rarely recognize interdisciplinary study or research. Somehow it offends them. But MOT, wilh its need for integration, requires an interdisciplinary approach.

j.4

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

1.5

Since that time inany books have been written on MOT and several thousand papers presented at conferences. The industry press has also focused attention on the many issues involved in MOT. Yet organizations fail to manage their technology effectively, efficiently, and with the econo~nicuse of resources. Projects conliilue to miss timely implementation, continue to fail to meet requirements and specifications, and continue to exceed allocated funding. In the intervening years organizations have failed to focus any significant effort on managing technology as an integrated effort. While many organizations have been caught up in the frenzy of hiring the latest guru anointed by the business press, that effort has resulted in focusing attention on single issues which may afford some short,I, teim benefit but provide no benefit for sustainable future performance. Single-issue i management, as a piinciple of management, ignores the realities of the coinpelitive forces that allow an organization to meet the expectations of the stakeholders. By now, most organization have discovered that they cannot Baldrige or I S 0 9000 their way to economic success for either the short or long term. The suggestions presented by Dr. Roberts continue to be valid not only for managing the technology-related issues but also for the total business enterprise. Management of technology (MOT) cannot be accomplished by some predete~mined recipe or prescription. Guidelines provide direction and the caution lights, but the fact remains that R4OT can be implemeilted effectively only within the context of a specific organization with consideration of its strengths and weaknesses and in relation to its available resources and infrastructure. This introductory chapter, on the general characteristics, scope, and implications of technology management, includes

grated into a technology management system. There is one key word that must be emphasized in the management of technology: integration. MOT involves managing the system; it also involves managing the pieces. Neither the system nor the pieces can be subordinated. MOT involves integrating the "pieces" into an acceptable "whole" by focusing attention on the interdependence of the pieces.

1.2.1 Management and Administration To understand management of technology, it is necessary to clarify what we mean by nznrzageriierzt and what we mean by techrrolog)~ and then explain nznnngenzerzt of techrlology. The discussion is further complicated by the fact that technology can be viewed in many different ways. As an example, technology can be viewed as a Tool Physical manifestation Knowledge Applied science Academic discipline We view technology as a tool. It is a means for accomplishiilg some end. Viewing technology as an applied science limits the scope and essentially focuses on the issues engaged by engineers and scientists. MOT as an academic discipline could provide a benefit at some future point in time when academia becomes oriented toward intensive multidisciplinary research that possesses some semblance of relevance and is directed toward problem solving and problem finding. The physical manifestation of technology surfaces in all our lives 24 hours a day and has no relevauce to this discussion. To reiterate, technology will be considered as a tool throughout this chapter. To understand just what MOT includes, it is necessary to clearly differentiate between management and administration. Management and administration are not the same; there is a clear distinction between the-two, and that differentiation is important. Simply stated, 17zanagenzerztinvolves degrees of creativity, leadership, risk, and concern about future performance, while adrizirzistratiorz involves supervising the assigned activities or tasks that are essential to keep an organization afloat. Management, or, moTe appropriately, managing, is a complex process-much illore complex than administration. Such factors as managerial creativity and innovatioil and taking a proactive approach make special demands. Pushing the frontiers, regardless of discipline or function, requires people with not only special talent but also foresight of what is possible on the basis of available resources and infrastructure. Managemeut of technology requires leadership. That leadership function must focus on the loiigterm as well as the sllort-term requirements in order to maintain the viability of the firm. That kind of leadership requires focus and discipline, moves the organization into the future, and takes place at all levels of the organization. The traditional approach that the leader is at the top is no longer viable, if ever it was. It is certainly not viable for managing technology where technology leadership is expected at all levels. Chief executive officers (CEOs) do not make the decisions that determine success or failure of technology.
1. Manageinent. Manageinent is not a science. As much as researchers try, they cannot and have not developed any consistent theories that guide human performance in a logical sequence from point a to point b. Not only are people different, but the

m
e

An overview A general description of technology management Delineation of the scope of technology mailagenlent A system model-resources, infrastructure, and activities An integrated and holistic model A brief introductioil to strategic, operational, and management issues Classification of technologies A section on education in technology management Summary and conclusions

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e

1.2 MANAGEMENT OF TECHNOLOGY A DESCRlPTlON

Is it necessary to ask the question: What is management of technology? The answer is a resounding "yes." You lnay argue that the answers are self-evident, but any discussion of MOT usually brings out a diversity of opinion-opinion but not knowledge or understanding. The two words i7zarznger7zent and technology carry the burden of many different meanings. The combination of the two words presenis additional complexiinforties. To many, MOT means mai~agingengineering. To others it means mai~aging ination, managing research, managing development, managing inanuhcturiilg operaktions, managing the activities of engineers and scientists, or mailaging functional activities without concern for the total spectrum of activities that encompass the business concept to commercialization process. Those interrelated activities must be inte-

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MANAGEMENT OF TE(XI-$OLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

1.7

same person acts and reacts differently in different situations. There are no mathematical equations that can be written and then applied to describe the interactions that take place between people. At best, management is an applied art that involves using the linkage of data, information, knowledge, and the social interaction between people in solving problems or pursuing opportunities.

some are very simple and others, very con~plex.A description of technology in the MOT context must go beyond the traditional. Technology can be described in different ways: includes whatever is needed to convert resources into products or services. 2. Technology includes the knowledge and resources h a t are required to achieve an objective. 3. Technology is the body of scientific and engineering laowledge which call be applied in the design of products andlor processes or in the search for new lcnowledge.

I. Technology is the means for accomplishing a task-it

2. Administration. Administration, on the other hand, implies following rules and regulations. It implies following predeterlllined processes and methods. Words such as cr-entivily, irii~ovntioiz,and rislc are not in the administrator's lexicon. This does not meall that creativity and innovation are not essential to the organization. It does imply that these activities will be Inore tightly controlled. It does not excuse these administration functions from exercising their creativity in a systematic way toward continuous improvement. 1 1 2 MOT administration, creative accounting on a daily basis would most likely be challenged. Creativity and inilovatioll may not be desirable attributes for the payroll department. Paychecks must be issued in the correct amount and on time. Administration, however, must be differentiated froin the general negative attitudes toward bureaucracy. Bureaucracies are essential to survival of any business, but those bureaucracies must be effective and efficient. In essence. ndnzii~istrntionmeans fulfilling the routine activities of the organization. These routine activities can neither be ignored nor dominate the actions of the organization.
This distinction between mauagement and administration becomes of greater importance in considering the issues related to the management of technology. For many years managers iilvolved in managing the technical activities of the business have tended to spend a greater percentage of their time on routine adini~listrative matters. Managers in science and engineering in many situations have become paper pushers. Much of this evolution from management to administration came about as a result of some misguided human resource professionals and academic behavioral scientists-the manager was not to interfere and was to let scientists and engineers do their own thing and let every employee start at the bottom of the learning curve. In the process, the role of the manager as teacher was totally ignored. Both management and administration are essential. The question that n u s t be answered in the context of the organization's purposes and objectives is: What is the proper balance between management and administration? That question must be answered. and the answer depends on the many characteristics that define the organization-the resources, infrastructure, and the activities in which the organization company lilce engages. The proper balance may be quite different for an auto~notive Ford and a multiproduct innovative company like 3bl. The balance will be quite different for an order-entry department and a research department. The best product cannot be introduced on time, within specifications and requirements, and at estimated cost without the effective performance of many routine activities.

1.2.3

Management as a Technology

Within this context. is iizanngeme~zt a technology? The response can be a resouilding "yes" or a resounding "no." The response depends on the limits placed on the description of teclzizology. Every mallagement action requires a process-or at the least should follow a process. But that process must be accompanied by substance, action, and integrity. The "seat of the pants" and "play it by ear" approaches have outlived their usefulness. Gut reactions may be acceptable but should be validated from other perspcctives. It seems almost trite to say that all decisions should follo\v some predetermined process regardless of whether the decision involves a major financial investment or the introduction of some new human resource program. Both involve alloca~ionof resources, so a fiscally responsible action must be guided by some process. To that extent management as a technology can be defined simply:
Management as a technology can be described as the process of integrating the business unit resonrces and infrastructnre in the fulfillment of its defined purposes, objectives, strategies, and operations.

1.2.2 What ls Technology?

The word techno log)^ usually conjures up many different images and generally refers to what has been described as the "high-tech" (high-technology) industries. Limiting genettechnology to high-tech industries such as computers, chips, supercond~~ctivity, ic engineering, robotics, and SO on focuses excessive attention on what the media consider news\vorthy. Limiting technology to science, engineering, and mathematics also loses sight of other supporting technologies. Technology includes more than machines, processes, and inventions. There are many different manifestations of technology;

This is a simple statement with significant implications for management of technology. If the broader descriptions in I and 2 (in the list at the end of Sec. 1.2.2) are accepted, then management definitely is a technology. If the restrictive approach of description 3 (technology as a body of scientific and engineering knowledge) is used, management would probably not be considered as a technology. It could be argued that descriptions 1 and 2 are so broad that they encompass all of management and further that considering management as a technology is stretching the desciiption of technology. It is true that the broad perspective is all-encompassing, . but then technology in one form or another or to a greater or lesser extent drives most organizations-especially those that are concerned about the future. If it does not drive the product base, it does drive the distribution process from order entry to customer satisfaction. Technology cannot be restricted to the manufacturing industries. It airencompasses not only the inanufacturing sector but all industries-agriculture, lines, banks, communication, entertainment, fast food, clothing, hospitals, insurance, investment, and so on-and determines future viability of the business unit as well as the industry. There is no limit to the way in which organiza~ionscan describe technology. The important point is that organizations define what they mean by teclzi101og)l.This chap-

1.8

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

ter uses the description of technology as the means for accomplislcng a task; it includes whatever is needed to convert resources into products and services. This is a holistic approach and differentiates MOT from the single-issues approach-managing engineering, inanaging research, and so on.

1.3.1 Phase 3-The

Beginning of MOT

1.3 MANAGEMENT OF TECHNOLOGY SCOPE

Figure 1.1 shows a five-phase coiltinuurn for managing technology. This is a simpli.fied version but is presented here to show what MOT includes. At h e present time it is difficult to find organizations that manage technology as an integrated function and holistically. The 5 pliases are arbitrary because in reality there could he 20 or more different phases. In this scenario each function would represent a phase. Much of what is described as MOT is generally a phase 1 effort involving some overlap with phase 2. Managing research and development usually receives die greatest amount of attention in reference to management of technology. These two functions also overlap with what is often 1-efeued to as i?aaiaagiiageiagi~teei-ii~g. I purposely eliminate the use of "managing engineers and/or engineering" because engineel-s are not the only specialists involved in research and development-there are many scientists and science majors worlcii~gin these two functions. Phase 1 does not involve managing technology. It is, pure and simple: management of research and management of development since these functions are often only loosely connected. Phase 2 adds design and manufacturing to research and development and at least links the product side of the business with the process side. Little by little organizations have learned that designs must eventually he transformed into some form of tooli11g and eventually to a inanufacturable product that meets certain quality and reliability standards. Phase 2 requires integration of these four functions into a cohesive group.

Phase 3 adds the marketing, sales, physical distribution, and custoiner service activican clainl to have a semblance ties. It is the minimum level at which an orga~lization of an MOT approach. Certain conditions preclude pursuing the requirements of phase 3. Tlie primary constraint involves h-ying to integrate eight cl~ffercnt major functions wit11 a multiplicity of subfunctions into some form of cohesivc system. But these are the functions that are directly responsible for new products aiid processes and must be integrated in the process of introducing new products. The project approach provides tlie means for integrating these functioiis. Products and processes are generally developed through some form of project approacli. But those activities are seldom integrated. While research and development may be workiilg on a new product, the remaining functions in phase 3 may be sittiiig on the sidelines waiting for sometlling to happen. They are part of the project in name only. Approaches such as concurrent engineering have attempted to resolve some of the issues, hut with relatively little success. Successful impleinentation of phase 3 requires a new way of thinlci~lgand a new model. It begins with a clearly defined approach as to what is required in project inanagement. This type of project n~anageinenthas nothing to do with planning or programming systems. It has nothing to do with coiltrol of costs or schedules. The illode1 deals with the up-front work that must be perforn~ed by all the functions. It involves inputs from all associated functions relative to an understallding of the resource capabilities, an evaluation of the infrastructure, a definition of the decision criteria, a welldeveloped statement of purpose, a project specification, and an evaluation and validation of assun~ptions.All these requirements illust be integrated through manageable and enforceable feedback loops to take into account the possibilities and limitations as established by each function. What must emerge from the dialogue is a business unifplan that raises the issues as to the factors that define the success of the project. The issues for which no solution exists must be placed on t h e table. Contingency approaches must be clearly stated. The approach that says "we don't have the right people for this project, but we'll get it done somehow" does not woi-k. Implementing a phase 3-or-beyond approach to MOT requires certain specific operational characteristics:

I I

LEVEL OF INTEGRATION OF BUSINESS FUNCTlONS I N MANAGEMENT OF TECHNOLOGY

Deveiopmenl Manufacturing Manufacturing Marketing Phvslcal Dislrlbullon Manufacturing Marketing Phvslcal Distribution C&lomer Service Information Syslems Human Aesources Finance Purchasing Palent and Legal Public Relations Manuiacturlng Markeling

11 1

Physical Dislribulion C&omer Sarvice lnlormatlon Syslems Human Resources Finance Purchsslng Paten1 and Legal Public Relations General Admlnlslration Customers Suppliers Olher lnlluencers Internal External

or ethics; it must be practiced) far above what is A level of integrity (call it l~onesty generally practiced. * The ability to face up to the unresolved and potentially uilresolved issues; proble~lls cannot be hidden. 0 Continuous sensitivity to issues that may in some way modify the initial assumptions; if original assumptioils have changed, recognize those changes and act accordingly. Phase 4 adds the administrative functions to the integration process. These include the major functions such as human resburces, finance, purchasing, patent and legal, public relations, and general administration. Phase 5, the ultimate level of integration, adds customers, suppliers, and other internal and external influencers. These five phases represent one approach for considering managelllent of teclmology as a model for managing. Attempting to reach phase 5 is not an easy task when research shows that most organizations operate someplace between phase 1 and phase 2. In reality managelllent of technology begins in phase 3, where integration of the process begins. concept to commercializatiol~

PHASE 1

PHASE 2

PHASE 3

PHASE 4

PHASE 5

FIGURE 1.1

Phases of technology integration for managenlent of technology.

I .I 0

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

1.11

1.4 SYSTEM MODEL: RESOURCES, INFRASTRUCTURE, AND ACT1 WlTlES

Discussing MOT as an abstract concept does not provide much insight into the complexity of practicing the basics of MOT. Management of technology is practitionerbased. In that sense MOT is comnplicated by the fact that it involves interaction of people with their strengths, wealmesses, foibles, biases, aspirations, and so on. But the difficulties in exploiting MOT come from a narrow description of the resources of an organization, a lack of consideration of the business infrastructure, and little, if any, consideration for the specific activities that are assigned the resources. Resources include more than people, plant and equipment, and money.

resources; the successful use of technology depends on the availab~lityof the other 10 resources. This is not a profound discovery, yet organizations ignore these relationships. As an example, intellectual property is a resource, but the not-invented-l~el-e (NIH) approach flourishes-start at the bottom of the learning curve, do not build on what is known-reinvent the wheel. Time is a vital resource. It cannot be replaced. It includes total tlnie, cycle time duration, and timing. Information is a resource, but the sources and integrity of the information must be lmown. Organizational characteristics are a resource and include more than culture. Even from the limited perspective of culture, it is a resource. But when characteristics are described as those principles and practices that differentiate one organization from another, the importance as a resowce is even more profound.

1.4.1 Resources

Figure 1.2 is a model relating business resources, infrastructure, and activities. It lists the plilnary elements related to each. This classification is one used by the author to expand the range of the elements involved when dealing in real-life situations. The classification of available resources, while broad in scope, will consist of lnany subcategories depending on the particular business unit under consideration. People, plant and equipment, and finance are the traditional resources. These are inadequate in a technology environment. As an example, intellectual property, information, organizational characteristics, time, and customers and suppliers,are seldom considered as resources. These resources are inside or outside the organization and all are interdependent. No single resource, by itself, provides any beneficial business result. In the leftlnost c o l u n ~ n of Fig. 1.2, technology is highlighted as one of 11

The business unit infrastructu~.eelements listed in Fig. 1.2 are equally important and determine the viability of the resources. Infrastructure plays a major role in business perrormance. The utilization and viability of resources depend on the supporting infrastructure. Purposes (mission), objectives, and strategies must flow down to the people who malte things happen-those responsible for doing the work. Organizational structure-the real operative organizational structure, not the rectangular boxes on the organization chart-must meet the needs for a particular activity. Guiding principles, policies and practices, and management attitudes determine how people respond to the organization's purposes, objectives, and strategies. The breadth of lnanagement expertise and Imowledge provides the underlying understanding for effective decision support and decision making. Managers who do not understand what they are managing and play the role of administrator make good candidates for the profit-prevention department. If Ule infrastructure does not support innovation and accept the associated rislc, none will surface. And finally, the manner in which the organization comnunicates-not just from the top down, bui. from the bottom up-and laterally-determines how this infrastructure is perceived by those who are asked to respond.

1.4.3 Activities
Intellectual Property

Organizational Structure Guiding Principles Policies and Practices Management Attitudes Management Expertise

Piant and Equipment

Support for Innovation

- Acceptance of Risk
FIGURE 1.3 Elemenls of resources, infrastructure, and activities in the context of management of technology.

Resources and infrastructure do not reside in a vacuum. They are applied to some type of activity and can be classified in Inany different ways. The point is that it is necessaiy to differentiate among them in consideration of the resources and infrastructure. Each of these activities will be impacted differently by the resources and the infrastructure. There is a continuum from allnost totally ignoriilg the other relationships to being totally dependent on them. An individual person involved in an activity may ignore tbe other resources and infrastructure. This will depend on the individual's proactive qualities, independence of thought, past track record of accomplishment, self-confidence, and the other personal attributes that allow a n individual to function as a creative and contributing maverick. Activities that involve more than one person enter a totally different domain that ~ d Consider, as an must take into account the supporli~lgresources a ~ infrastructure. example, the specific activity related to a project. In this situation exploitation of all the resources is essential. The infrastructure nlust support the objectives of Ihe project. The project must meet the requiren~entsof the purposes, objectives, and strategies of the organization. An acceptable organizatiopal structure must not impede the forward progress; the guiding principles and the policies and practices cannot unnecessarily

1.12

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND lMPLICATIONS

1.13

restrict the freedoin to act. Management attitudes and expertise will avoid micro managing yet allow for constructive involvement based on past knowledge and experience-perhaps even some wisdom. Without management's support for innovation and acceptance of the associated risk, the project will provide limited benefit. The use of teams or teamwork has been intentionally excluded froin this listing of activities. All the categories listcd under activities except "individual" involve some type of team effort coupled with individual proactive initiatives.

MANAGENIEIVT of TECHNOLOGY
--

PRODUCT GENESIS
Research Development Design Manufacturing

I
I

DISTRIBUTION
Marketing Sales Physical Distribution Customer Service

1.4.4 Technology as a Resource

The relationship of the elements of this model relating resources, infrastructure, and activities is complex. But then, there is no reason to think that managing is a simple process. It may appear so iron1 a macro perspective or when quantified in a two by two matrix in two dimensions, but the real world is more complex. I n Fig. 1.2, technology is highlighted as one of the resources. But technology as a resource is elfective only if it is applied to some specific activity and within the confines of a particular infrastructure. The same is true for every other element of the resources. People without technology, without available time, and without input from customers do not enhance periormance. People without a supporting infrastructure do not enhance performance. People without assigned or self-generated activities do not enhance perfoilllance.

I I
Information

ADMINISTRATION
Human Resources Public Relations
b v s

Financial Purchasing
-

Patent and Legal

General Administration
a -

SUPPORTIVE INFLUENCES
Customers
FIGURE 1.3 The tripartite organization.

Suppliers

1.5 INTEGRATED AND HOLISTIC MODEL

Management of technology is explained with the aid of Fig. 1.3, which shows a model of what I describe as the tripartite organization. It includes the same 17 functions shonln in Fig. 1.1, phase 5. It includes three main internal organizational units: product genesis, distl-ibutioiz, and ndntiizisti-ntioiz, and a fourth unit, supporting iizflue~zces, that is external to the organization.

1.5.1

Product Genesis

Product genesis provides the creativity and innovation for new products. I t includes research, development, design, and manufacturing. The conventional wisdom of discussing R&D as a unified function leads management to some erroneous conclusions. For that reason I differentiate between research and development and add the additional function of design. It may be good public relations to focus on R&D expenditures, but in most organizations the "R" is a relatively small part of the total-most of the expenditures are allocated to "development." Most organizations allocate a minimum of resources to what would be classified as research. Most of what is classified as research involves a search for a solution to some unknown requirement of a product or process development pi-ogram-generally only some small segment of the total project. These projects usually deal with knowledge that is integrated in some new way or processed in some new way in order to meet a product specification. The process basically involves packaging existing lcnowledge in new ways. This is not to minimize the creativity required by design and development. On the contrary, that creativity is vital but seldom yields new discoveries.

The function of product design, which includes the aesthetic, functional, and operational considerations of a product, seldom receives the required attention. I have included design as a supporting entity because of its much-too-often overlooked but essential importance. Design involves the details as contrasted to the big picture. Yet, the execution of the details determines the success of a product. While it is true that the aesthetic design of an automobile will receive lnuch greater attention from top management, the functional and operational factors determine the number o l recalls. Automobile executives do not design drivetrains. Manufacturing, as a part of product genesis, is often left out of the MOT loop. The approach [hat process development follows product developn~entis not, and never was, a viable approach to effective business management. The spread of such unsubstantiated advice has led many industlies to the brink of self-destruction-witness the past performance of the auto industry and the electronics industry and the long difiicult climb to some acceptable level of performance. Manufacturing requires a process research focus that must be integrated with the other functions of the tripartite organizational model.

1.5.2 Distribution
Distribution con~prisesthe functions of marketing, sales, physical distribution, and customer service. These four distribution functions represent those required to interact with the product genesis functions to agree on a product concept; to defi:ne the market, to find the customers, to negotiate the sale, to provide the customer with before-and-

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MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTNES

MOT: DESCRLPTION, SCOPE, AND IMPLICATIONS

after service, and finally and the most forgotten: to bring the customer feedback to the organization- in a timely manner. The distribution function also provides a rich source for new-product ideas.

1.5.3 Administration

~drnillistratioll technologies are more difficult to identify than the technologies of the product genesis and distribution functions. When it comes to administration, many questions are raised at the suggestion that these functions utilize specific technologies. While science and engineering, in the strictest and classic sense, may not be involved in these administration functions, they have their own technologies. The use of information systems as technology in these administration functions is accepted, but skepis attributed to the related administration functicism arises when the word teclzrzologj~ tions. I suggest that each of these administrative functions has its own set of technologies, lceeping in mind that technology is defined as "a means for accomplis11ing a task."

Hz~1na12 Resonrces. Human resources techllologies include personal appraisal forms, flexible scheduling, compensation based on performance, the behavioral science base. educational technology, and all the work processes used in meeting their objectives. Fina~zcial. Financial and accounting departments also use specific technologies. The processes used to justify investments in capital equipment, research, new-product development, and the miscellany of business operations are all technologies. Additional technologies coine into play as financial departments attempt to make a clear distinction between project justification and project evaluation. Are balance sheets and profit/loss statements a result of processes and technology? How many decades did it take the financial and accounting functions to recognize that traditional accounting methods did not meet the needs of manufacturing organizations? I~zfornzation. Information, as a function, is generally considered to involve t'echnology. But this is primarily because of the extensive use of computer hardware and software. As in tlle other functions, process plays a major role in managing informationif not, it must. Just thinlc about how much data you receive and how little information. The techniques by which information departmeilts make decisioils are technology. The eventual use of expert systems or artificial intelligence provides additional examples of information technologies. Patent and Legal. Patent and legal, which in recent years has expanded to protecting the intellectual property of the organization, uses processes which are technologies. Contracts, agreements, and other legal documents are a form of technology. Pareto's 80120 rule (80 percent of the work performed in 20 percent of the time) is a technology. It is a "means for accomplishing a task" more effectively. It may substitute using the tools for evaluating situations to determine the degree of risk rather than dotting every "in and crossing every "t" and still ending up in litigation. Pzcblic Relatioris. Public relations uses technologies to convey the interests of the organization. Those interests usually revolve around content and focus attention on process. The process by which private (individual) knowledge and public (community) knowledge are differentiated plays a major role, whether related to products, social

Audiovisual services Benefits administration: pension, medical, etc. Communication services: internal and external Custodial sewices Data processing Ecouonlic studies Education and training Environmental nlonitoring F i e and emergency evacuation Food services: cafeterias, vending machines, etc. Library services Mail services: internal and external Maintenance of office equipment Medical: health and hygiene Office maintenauce and rearrangement Supplies Toxicology services Transportation Travel services and analysis Waste and scrap disposal or recycling Others depending on the organization

FIGURE 1.4

Subfunctions in general administration

issues, catastrophes, and so on. The advanced technologies will play a major role in developing new commuilication models.

Pz~rchasi~zg.Purchasing plays a major role in project success. Its processes determine whether projects are completed on time, within specifications, and within cost estimates. Restrictive policies and procedures, methods of selecting vendors, and limiting access to vendors solely by purchasing or with a purchasing representative create delays. These processes are a type of technology. General Administration. General administration functions conlprise a group of subfunctions that are essential in support of the organization's objectives. Figure 1.4 provides examples of some of these administrative subfunctions where technologies exist but may not be self-evident.

'8.5.4 Product and Service Qrganizations

This tripartite organizational structure of Fig: 1.3 applies to product as well as service industries. A close look at the differences between product and service businesses clearly shows that both are similar, if not identical. An accounting firm, generally considered a service industry, sells a product. That product is information in the form of a report. It utilizes all the functions-research, develop men^, design, and manufacturing-of the tripartite organization shown in Fig. 1.3. You may accept research, development, and design as par1 of an accouuting firm's functions but probably question the use of the term nzarzclfactur-ing in this accounting example. In essence, the work effort to prepare the contents-the mental work-of that report falls into the classification of production. It is necessary to expand the use

1.16

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

of the word in,arz~~acturing only to include information products and recognize the high level of knowledge, skill, and intellect required to produce them. The fasl-food industry, at the opposite end of the intellectual spectrum, is classified as a service industry, but it embodies all the elements of the tripartite organization. There is probably no dispute thal the.functions of research, design, and development apply, but !he word n1:111~factcrl-ir1g probably raises some concerns-ho\vever, every has its own productioil facilities-the kitchen. fast-food c-siablishme111 These two examples, with accounting at one end of the spectrum and fast-food establishments at the other end, require only a new view of what rna~z~fact~.~l-ilzg includes. At the accounting end of the spectrum the product is information developed by highly educated and skilled professionals-at the fast-food establishment the product is food in one foim or another provided by lower-level education and skills. What are the appropriate limits for management of technology? The cornprehensive and holistic approach described around Fig. 1.3, of the tripartite organizational structure, may be coilsidered idealistic, but the gap between the presel~tseginented approach to technology management and the comprehensive approach must be closed. The past malpractice ill technology nlanagemeilt was prologue. The failure of projects to meet the specifications, the schedule, and the cost projections provides sufficient evidence that not only are the technologies related to science and engineering and iilforinalion inismanaged but the supporling technologies in the many support functions are totally ignored. The inedia more than adequately cover inajor and publicly oriented project failures. In recent tiines the Denver airport and the Chunnel (underwater Channel tunnel) connecting England and France are but two inajor examples. In both cases the time schedules and the costs far exceeded the original projections. But the thousailds of projects in industry, academia, and government that miss their projections seldom malce the headlines. In many cases managers ralionalize their organization's mismanagement with a shrug of the shoulder and "we can't expect perfection." But what is the cost? Probably less than 5 percent of all projects meet the projected specifications, schedules, and costs. For those of you who questioil this statement, look back at the work effort for the last 1 to 5 years in your own organization and determine hoiv many projects met the original projections-no excuses for anything, no fudging-the projections were either met or not met. There are lessons to be learned from such an exercise, and that investigation will show the lack of managing technology-not just managing the science- and engineering-related aspects but all the technologies relevant to the busiiless unit. As an example, think of the potential impact of human resource technology if creativity and innovation became a dominant factoi-. Human resource technologies need to be thought of in a new way. They require a shift in the basic hul~lan resource inodel. The new model expects creativity and in~lovationfrom human resource professionals at all levels and in all assignments. That new way of thinking requires understanding pi-ocesses and determining the impact of those processes before attempting irnplementation. At the veiy least, the inodel demands exainination of the effectiveness and the efficiency of huinan resource activities. The model also requires determination of the levels of creativity .and routine. What benefits arise from the inultipage annual or semiannual appraisals? What purpose do they serve? Why use them? Would a blank sheet of paper with the individual's name at the top suffice? Do nlanagers really know how to appraise performance? This new model demands dissatisfaction with the status quo. The same model applies to all business unit functions, including finance, marketing, and so on.

7.6 STRATEGIC, OPERATIONAL, AND MANAGEMENT ISSUES

The underlying elements of any organization include its purpose or purposes, its vision, its objectives, its strategies, its operations (doing the work to achieve its purposes, vision, and objectives), and its ~nanagementof the process from purposes to customer satislaction. A view of MOT from the perspective of strategy, operations, and management shows the extent to which MOT in reality is congruent with managing the enterprise.

1.6.1 Strategic Issues

The strategic issues of MOT require greater attention by managers involved in developing business unit strategy. Consider the following strategic issues: Understanding the scope of managing technology Managing technology-different levels Technology managers-who manages technology? Adding value with technology Developing a technology policy Bridging the gap between technology policy and results Precursors to technology strategy Including technology in business strategy Rationalizing strategy and operations Managing the decision-making processes Systeins thinking-the imperative Negative impact of single-issue management The role of techilology in achieving competitive advantage Managing technology in a dynainic environinent

0 0

Figure 1.5 details the subelements of these issues involved in integrating technology. During the strategic-planning craze, technology was essentially ignored. Elaborate slrategic plans were developed without any strategy. Volumes were prepared but were seldom reviewed after approval. Strategic-planning processes yielded volumes of data instead of information, an interjection of operational detail but insufficient as an operational plan, and prepared on a basis of at least questionable, if not false. assumptions. Those assumptions included the assun~ptions of a static rather than a dynamic environment, were based on a questionable premise of an annual event, dealt with data rather than information, focused on ailalysis without comparable emphasis on synthesis, failed to translate the strategy in meaningful terms throughout the organization, and ignored technology that affects over 75 percent of the sales value of production. The degree to which each item in Fig. 1.5 affects perfonnance will depend on the 01-ganization's purpose(s), industry linkage, and current competitive position and the activities required to attain the objectives. One point is certain-technology cannot be ignored and cannot be given short shrift. That strategy begins with an understanding of the basics of MOT and the role of technology in the business enterprise.

MANAGEhGNT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

1.19

Understanding the role of technology in the business A business, not technical responsibility Integrating resources, infrastructure, and activities

II

Lncluding technology in business strategy Research Developn~eilt Design Manufacturing Marketing Adnunistration

This list of strategic issues may be considered too extensive and too difficult to consider or implement, or you may flip the coin to the other side and ask, "What's new?" But in that process you also must inake a decision as to which elements are not important. Can decision processes be discounted? Can systems thinking be replaced with single-issue-inanageinent? Can rationalizing strategy with operations be eliminated? Can technology continue to be ignored in the process of developing a stralegy? Is there a viable technology strategy? Is the process of including the technology issues in business strategy essential? Absolutely, yes.

1.6.2 Operational Issues

levels

Managing technology-diHerent

Globally Corporate, sector, group, division, strategic business unit Research, development, design, manufacturing, marketing, sales, physical distribution, customer service, all adlnjniskative and support functions Managing technology at the project level-tenn level Managing technology by scientists, engineers, and other professionals
0

The operational issues of MOT present a similar vast array of topics that inust be defined in the context of the business. It is even more extensive than the list of strategic issues. Consider the following major categories of operational issues that inust be resolved: Idea and concept generation Forecasting Evaluating Justifying investments Planning management Managing the project manageinent process Managing discontinuities Descriptions-how, where, and why Resolving problems and exploring opportunities System cycle time management Technological intelligence Innovation Entrepreneurship Technology transfer Information Functional integration Investing in research Organizing for elfective product development Market-pull and/or technology-push Introducing new processes Introducing new products Selecting, monitoring, and terminating projects Integrating technology, products, and inarkets Linking purposes, objectives, and strategies Focusing on value-adding activities Resolving the information paradox Effectiveness, efficiency, and economic use of resources

Technology managers-who

manages technology?

At different levels-from executive to individual decision m&er Description of role Required skills, experience, and knowledge Balancing technology and management competency
0

Adding value with technology: leveraging available resources Internal and worldwide External and worldwide

I
o

Developing a technology policy Bridging the gap between technology policy and results Transfollning the thinkers into the thinkers and doers Transforming the doers into the doers and thinkers

I
s

o
0

Precursors to technology strategy Rationalizing strategy and operations Managing the decision-making process-practices Consensus Quantitative and qualitative Intuitive Balanced

and models

0 0

Systems tlinliing Iinpact of single-issue management Role of technology in achieving competitive advantage Dynamics of technology management Strategic issues in the management of technology.

FIGURE 1.5

'i.20

MANAGEMENT O F TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS FIGURE 1.6 (Continued) Part 1 operational issues.
0

1.21

Analysis followed by synthesis determines results Differeiitiating the means and the ends Eliminating the barriers to effective management of technology Developing and using business unit teclu~ology plans Organizing and allocating resources Developing as-is profiles (the plus/minus analysis) Closiilg the gaps from competence to capability to competitive advantage Implementing activity-based management Implemellting the project approach a1 all levels Auditing research. development, technologies, and potential new products and processes Figures 1.6 and 1.7 list these major operational issues randomly with many subcateto prioritize their importance. The relative importance or gories but without alten~ptillg priority of the topics depends on the particular business problem or opporluility. As with the strategic issues, which of these categories can be eliminated?

Managing the project management process Designing the process Planning Scheduling Designing and developing the end product or service lniplen~enting, moliitoiing, controlling, teiminating, etc.

Managing discontinuilies Descriptions-how, where, and why Technology-product-process-social, political, and economic

Resolving problems and exploring opportuinties Observing Synthesizing Describing Integrating data, information, knowledge, and wisdom

System cycle time inanagement Desciiption-more than concurrent engineering Benefits and costs Sources for optimizing Types of cycle time: system, project, product, and process

FIGURE 1.6 Part l operationd issues.

Idea and concept generation Forecasting Technologies Products Markets Productivity and perfoln~ance
e

-...

Technological intelligence Developing a process: inteinal and external Recognizing emerging technologies Using teclinological intelligence for technology leadership Innovation Description and scope Organizational environment Role of creativity In all business functions-not just science and engineering Innovating on scl~edule

Evaluating Infrastructure Resources Products Processes Marlcets Work practices Productivity and performance Organizational competencies and capabilities

1.6.3

Management Issues

Justifying investments Resources Business functions Strategic and operational fit Risk analysis Value-added products and processes Juslification or evaluation of alternatives

The management issues include the fundamentals associated with managing any organization. The following list provides some broad categories: People-related Developing competent personnel Overcoming objections and resistance to change Competencies and capabilities Productivity and performance Specialization and segmentation Providing a balanced environment Educating the organization

9
Q

Planning m a ~ a g e n ~ e n t From a dynamic or static perspective Up-front work Process-thought-process with thought Reshictions: business dynamics, change in requirements. new knowledge

e
Q

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

FIGURE 1.7

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

FIGURE 1.7 (Co~zrirrncd) Part 2 operational issues.
0

1.23

Pat 2 operational issues.

Introducing new PI-oducts Classification, description, and assesslnent of new products The planning process from concept to commercialization (marketplace)

Entrepreneurship Beyond the Ilype-the reality Organizational environment Successes and fN'1ures Internal and external
e

I
I
I

Technology transfer Within the 0rganization;business units, functions, individuals Acadenia and hdustry Government agencies and industry Global opportunities Consortium Illformation transfer Top-down, bottom-up, horizontally Sources of information beyond computers, beyond record keeping (Libraries, periodicals, patents, other i~ltellectual property) 2% Functional integration Going beyond coininunication Processes for achieving Corporate or operational Intenla1and external Organizing for effective product development Requirements-total spsteln The process Limitations of forlnalized structure Need for tlexibility Balancing freedoln and coilstmint Balancing stability and change Creating an appropriate environment

I
I

projects Selecting, monitoring, and tenl~i~lating hegrating technology, products, and markets Linking purposes, objectives, and strategies Foc~~sing on value-adding activilies 0 Resolving the information paradox e Effectiveness, efficiency. and economic use of resources e Analysis followed by synthesis determines results Differentiating the means and the ends e Eliminating the barriers to effective management of technology e Developing and using business unit technology plans Organizing and allocating resources Developing "as-is" profiles (the plus/minus analysis) * Closing the gaps horn competence to capability to competitive advantage e Implementing activity-based management-not activity-basedaccounting 0 Implen~enting the project approacl~ at all levels Auditing Research Design Development Manufacturing Marlteting New products New processes Technologies

I
-

I
a

Market-pull andlor tec111)ology -push Introducing new processes in every business function Reasons ior Benefits to be derived from Delinea~ing the issues Making the transition Focusing the organization Integrating business functions Achieving gains froin techllology ma~lagement Facing realities

Figures 1 .S and 1.9 provide a detailed listing of the inanagelnent topics that must b e considered. None can be ignored, and Ihe listing provides a checldist for the practicing manager or PI-ofessional. But MOT requires more than using the listing as a checklist. The topics listed under "people-related" are fundamental. Too often man-

agers at all levels fail to consider these issues in some formal or at least conscious manner. As an example, "identifying the required knowledge" for a particular project cannot be ignored; yet too often, assunlptions are made about the required ltnowledge that are inconsistent with the requirements. As a result, Ule wrong people are assigned. Another example nlay consider the topic of "raising expectations." Certainly expectations can be debated, but even in today's competitive environment a general reluctance exists on the part of managers to establish meaningful stretch targets. An additional example ]nay serve to illustrate the point. Assume that manufacturing is proposing cost-reduction targets. The manager suggests 3 percent as a logical target. Some person i n upper management states that 3 percent is insufficient and insists on a 10 percent reduction. The usual complaints arise from manufacturing that the targets are unrealistic. The year-end results show a reduction of 8 percent. How does upper management view such a situation? Does management penalize ~llanufacturillgin some way for not meeting a 10 percent reduction target, or do Llley recogi~izethe group's performallce? An 8 percent cost reduction is certainly better than 3 percent. In the initial stage nlanufacturing played it safe. It is unfortunate that top management does not realize that there is a certain amount of game playing in all cost-reduction or improvement programs. Manufacturing knew that costs could b e reduced by 3 percent without any great amount of extra effort-no new thinking, just more of the same. At the same time, the arbitrarv 10 uercent ~ s t n h l i r l 7 p J1~
t710n8-tm-

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

h4OT: DESCRIPTION, SCOPE, AND IMPLICATIONS

1.25

Providing a balanced environment Identifying the required knowledge Selecting the appropriate participants Developing a critical mass Inte~ating rhe unique characteristics and talent of the participants Focusing ,111 career emergence rather than career planning Raising expectations Stimulating as contrasted to motivating Identifying and rewarding the new heroes personal charac~enstics and human behavior Role 01 Managers as teachers
e

Balancing creativity and routine Business discipline Balancing slability and change Freedom and constraint Financial success and stakeholder rewards Leading and following Educating r11e organization Emphasize "dlinking" as a precursor and postrequirement involved in going from illiteracy, to literacy, to acquiring inforUnderstand the funda~nentals mation, to knowledge, to learning from application Continuous education: what type, how much, when, and for whom Applying the "learning" of the organization
e

Developing conlpetent personnel Increasing flow of new ideas and concepts business pracThe business operating philosophy-the important fundamentals of ma~aging, tice, and manaping technology Balancing depth with breadth Becoming multidisciplinary and multifunctional, leading toward interdisciplinarity ~eveio~a &high-perfol-mance organization Understwdjng the art and practice of managing Accepting change Managing transitions Balancing team and individual pedormance

1 I

Focusing the organization Integrating and achieving the potential gains from Systems thinlung htanagement by objectives Participative management Benchmarking E~npowerment Exploiting organizational leanling Introducing the right amount of operational discipline Work analysis Organizational structure Reconcepting the organization Focusing on the thinlcing~learningorganization

II
(

Overcoming resistance New ideas and concepts New thinking New technologies Anything new and different Competencies and capabilities Transition from individual to business unit Core (also platform) and support Individual competence to business competency

Achieving the gains from technology management Automation of work in all functions Computer-integrated manufacturing Computer-aided design, engineering, manufacturing, and others C o n c u ~ ~ eor n t si~nultaneous engineering Design theory! all functions including administrative Infornlation systems that provide information Using technology and business models and simulations Using olher computer-aided technologies such as artificial intelligence, expert systems, chaos theory, catastrophe theory Understanding the limitations of computer technology Business-related processes Facing realities Abandoning the old myths Eliminating the organizational noise Dealing with issues rather thau personalities Playing games Work from the basics

+ B

Productivity and performance Expectations Measurement Specialization and segmentatioll For building organizational flexibi1i:y Realities of providing flexibility For whom, when, and how much Organizational focus and flexibility

FIGURE 1.8 Part 1 management issues.

FIGURE 1.9 Part 2 management issues.

I .26

W A G E M E N T OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

ment, while appearing totally unrealistic in the eyes of manufacturing, did provide the necessary unpetus to obtain better results. Managers should not be averse to settillg difficult targets provided they do not become overly concerned about some arbitrary targets but look for the actual realistic gains. The issue of raising expectations requires serious attention. Consider the situation associated with raising the expectations of engineers and scientists. Only one questio~l needs to be answered to delnonstrate 1 1 ~these t professionals spend probably less tllan 50 percent of their time in their professional endeavors. The other 50 percent involves routine work well below their level of cspertise. Decisions regarding this topic as well as others inust be made consciously. Assumptions must be validated and qualified. Information should not be accepted without questioning the vaLidity and the integrity of the assu~nptions. Now consider linking these operatioilal issues with the strategic issues and subsequently with tl1e.management issues. What results is a continuum from strategic to operational to management, to strategic or operational, and so on in a continuous feedback loop. A change in one requires a change in the other. You may argue that strategy is a inanagement issue. It may have been at one time, but people at low levels in the organization malce strategic technology decisions. A relatively young engineer can malce some major technology strategic decisions in the product or process developinent area. A youi~gmarketing or sales representative inay provide creative input for future marlcet development, new-product requirements, or needs of customers.

It is not important that an organization use this classification. It is important, however, to develop some format for classifying technologies in a mannel that is meaningful to the specific organization. Management seldom faces up to the realities of technology classification. Too often technologies used by competitors are considered as proprietary, the list of supporting technologies is limited because they are known, every technology seems to be a leveraging one, the list is too long. the list is too short, and so on. In reality, most organizatio~lsdepend totally on known technologies and may only be coinbining them in creative ways. Soine i.ealism must be applied to this classification process. Every technology is not a proprietary technology. Every technology is not a core technology. Many coinlnonly known technologies are not leveraging technologies. This classification of technologies must be rationalized in some way. As an example, is there a proper ratio for these technologies: State-of-the-art Proprietary Known Core Leveraging Supporting Pacing Emerging Scouting There is some ratio of these technology classes which determines where organizations invest their resources. Those percentages will vary significantly not only within organizations but also within organizations ill the same industry. The purpose for identifying these classes is to recognize where those resources are being applied. For exanlple, some resources must be applied to scouting new teclmologies, but a relatively small percentage. Yet many organizations fail to recognize the need to allocate some resources to this class. The classification allows putting technologies into perspective. While the core technologies may be considered the most important, the other classes cannot be ignored. Competence in supporting technologies may be just as important as the core technologies. Work on emerging techllologies must be planned on the basis of business unit strategy. Scouting technologies that flow into the emerging teclmologies and then into other categories represent future tecl~nologicalopportunities. The future demands consideration of the long-term technology needs. Technology classification can also be viewed from the perspective of proprietary technology that provides competitive advantage and state-of-the-art technology which may be available to competitors. Technology classification will also be modified by the type of product or process under consideration. As an example, new products and processes can be classified as "Me, too" products or processes Minor product or process improvement Major product or process inlprovenlent New-to-the-market products or processes Breakthrough products or processes

Technology is tecllnology is technology, and so on. Not true. Managing technologies requires some delineation of the technologies into categories. There are no agreed-on approaches for classification. Technologies can be classified according to any of the following categories:
s

State-of-tlze-ai-t-teclz~~ologies: those teclmologies that equal or surpass the competitors PI-O~I-ietaiy teclz~iologies: those technologies protected by patents or secrecy agreelneilLs that provide a measurable competitive advantage

K17owr7 techlzologies: those technologies that may be common to many organizations but are used in unique ways Core rechlzologies: those technologies that are essential to maintain a competitive position Leveragiizg tcck~tologies:those technologies that support several products, product lines, or classes of products Supportilzg technologies: technologies that support the core technologies Paci17g tecltnologies: technologies whose rate of developnlent controls the rate of product or process development Emergi~zgtech~zologies:technologies that are currently under consideration for future products or processes Scor~ti17gtech~zologies:formal tracking of potential product and process technologies for future study or application Idealized L L J Z ~ I ~ O M basic UI teclz~iologies:technologies that, if available, would provide a significant benefit in soine aspect of life

? .28

MANAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

Of course, each organization must describe just exactly what terms such as "me, too," "minor," "major," "new to the market," and "breakthrough" really mean. It is difficult for organizations to acknowledge that their products fall into the me, too category. There are no generalized rules that describe the relation between types of technologies and their application to different types of products or processes. At one end of the technology continuum, ;? breakthrough product or process could involve state-of-thearl or proprietary technologies. But a similar breakthrough product or process could involve known technologies but combined in a unique way.

5 1 . 8 EDUCATION IN TECHNOLOGY MANA GEMENT

Some universities offer courses in the management of technology. These usually take the form similar to an executive M.B.A.-eveiy other weekend on alternate weeks or some such part-time arrangement. Most of these programs lack substance and focus more a~tentionon a graduate degree than on the content. Awarding a master's degree when the subject matter is often at the undergraduate level gives false impressions of the educational value. A review of many curricula reveals no clear understanding of purposes, objectives, and strategies. MOT courses are another product offered in the smorgasbord of master's-level programs. There is no simple process for delineating the differeilces of the objectives of various MOT programs. One analysis, from a study by Kamm,* shows that course objectives show a great deal of diversity in thinking about what MOT should include in the curriculum. My analysis of Kamm's study shows that if the verbs used throughout the discussion of academic curricula in MOT are identified, some ii~teresting conclusions can be drawn. The verbs have been classified in relation to "objectives for whom." DO these verbs relate to professors, students, or both? Here are the findings: Professors: clarify, design, develop, give, help: introduce, offer, present, ~ i o m o t e , provide, utilize Students: acquire, come to understand, gain, overcome, study, understand Professors and students: consider, examine, explore, identify, recognize Course objectives described by these verbs convey the idea of transmitting data and possibly information as contrasted to providing opportunities for gaining knowledge. There is a distinct difference between information and knowledge. The objective-related verbs are weak-in essence, professors give, and students receive. The objectives of MOT courses must emphasize "doing something" of significance that will lead to knowledge rather than data or information. This approach of acquiring data and infoimation ignores the basic requirements of MOT: creativity and illnovation. It appears that those studying MOT need nbt be the idea generators and the innovators, but will nlanage the idea generators and innovators. This approach by the academic community in teaching MOT is unfortunate. It places us on the road to

developing another generation of technology managers who cannot provide the necessary technological leadership-that leadership requires making a creative and innovative contiibution to the enterprise; thus we develop another generation of technology adnlinistrators rather than technology managers. MOT, a n~ultidisciplinary as well as interdisciplinary discipline, is a practitioner's discipline. Academia must focus on relevance and at the same time not ignore the theoretical foundations where they apply. Those conteillplating attending a course in MOT must nslc some questions. For instance, is the purpose to obtain a degrec or to gain an understanding of the issues in management of technology? With a bias, I suggest that the purpose is to develop an underslanding of the principles of MOT. MOT involves managiilg wilh the systems approach. Without hesitation, I say accounting or economics majors will not manage technology. Nothing against accountants or economists. They play a major role in business management, but they do no1 have the background to manage technology. MOT is a hands-on profession. It denlands a broad understanding of technologies related to the specific business.

7.9 SUMMARY AND CONCLUSiloNS

Management of technology provides firms with many opportunities for improving performance. But gaining that additional effectiveness and efficiency coines with a price. The cost of entry requires a change in thinking, a new mmagement model, a focus on the integration of the pieces of the system, and ignoring the quick fixes promoted by the latest management gum. MOT is not a quick-fix approach. Figure 1.10 summarizes the discussion of the description, scope, and implications of MOT. The summay of MOT illustrated in Fig. 1.10 brings together the phases of MOT, the primary elements, the business issues, and the tripartite organization. Each of these integrators interacts with all others. At a minimum, at least 10 interact at any one time. This is based on the fact that in the phases of MOT, only one phase would be involved at any one time. The complexity of these interactions is further magnified by Llle number of subcategories involved. As an example, a phase 1 approach to MOT involves resources, infrastructure, activities, management, strategy, operations, and the three major segments of the tripartite organization. If a systematic management process is practiced, the number of these interactions will not pose a illajor problem. At the same time, those interactions cannot be ignored. They are real, and that is why MOT requires their consideration as part of the system. For a moment coiisider the cost in correcting the malpractice in management due to not meeting project requirements and specifications, not conlpleting projects on schedule, and iiot meeting projected costs. When less than 5 percent of all projecLs are completed within specification, on schedule, and on time, it is cei-tainly time to reappraise the ways of managing. These corrections will not be made using the singleissue management model, in which every function attempts to build walls around its empire. That kind of activity is totally unproductive in a competitive economy. So to introduce MOT to your organization: consider some of the following suggestions. Conipetitivelless begins inside the &ganization. More importantly, L i begins with the individual. Coinpete with yourself, your past perfo~mance,and not wieh sonle external competitor. Recognize the role of process-not methods or methodology but process-process with substance, and not just going through the process.

'Judith Kamm, Bentley College, Waltham, Mass. Report on academic programs in the management of technology. Presented during a business meeting of the Technology and Innovation Management Division of the Academy of Management, August 1991.

' I .30

MNAGEMENT OF TECHNOLOGY (MOT) PERSPECTIVES

MOT: DESCRIPTION, SCOPE, AND IMPLICATIONS

FIGURE 1.10 Summary of all the integraiol.~involved in the managelllent of technology. Each of
these elements interacts with every other element, thus co~nplicalingthe process.

and process development and to capital investment but to all work in the adminishative functions. Technology can be justified if it provides a benefit. If it does not, it should not be implemented. That benefit, however, must be measured qualitatively as well as quantitatively. Clearly delineate the benefits from the investment. Emerging technologies-whether related to product, process, manufacturing, or other activities-should be treated as unknowns. Even scaleup of processes requires research. Establish criteria for investing in new technology. Objection by a single individual, regardlcss of management level, cannot be justified. Decisions to invest must be based on business needs and not only on financial analysis. Raise the levels of expectation for every person from the CEO to the lowest level. Emphasize activities that increase the value added for the effort expended. Technological literacy becomes an absolute must for MOT. Obviously the level depends on the need. But people involved in making technology-related decisions (at least those of significant scope) must understand exactly what the decisions involve. MOT is not a mystery. It requires following fundamentals of management. It requires taking a systems approach. It requires including inore than the activities of scientists and engine.ers. MOT involves the complete organization. Managers at all levels and in all professions must recognize that people generally do not buy technology-they buy perfornlance in some form or another.

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Reappraise strategic planning. Focus on strategy without all the associated bureaucracy. Strategy is the first step toward implementation of objectives. Separate strategy from planning. Planning responds to what should be done, why it should be done, who is going to do it, and when it will be done. Recognize that there is no single strategy of the firm. The strategies of all the functional organizations must be integrated into some form of cohesive strategy. The strategy of research cannot countermand the corporate strategy; it must support it. The same is true for all functions. Developing a strategy is an iterative process. It cannot be done on the annual 12month cycle. Strategy must be reviewed daily to determine whether it continues to be viable. Strategy is not a book, but a paragraph on a sheet of paper. e In the final analysis, strategy is not what is written on paper but what is in the minds of the participants. People play a major role in successful implementation of MOT. Do not allow human resource policies to reduce every person to some lowest conlmon denominator. Teams are a means to an end, but ideas and concepts come from individual creativity and innovation. Managers cannot become tour directors or social directors, and people cannot mentally retire at age 35. = Interfaces must be managed-one of the critical managenleilt issues. The competitive environment is dynamic; it cannot be treated as static. People are an organization's greatest asset. A clichi. Yes. Malce it a reality not by vying for "best manager of the yea-" award but the manager who challenged the staff and provided opportunities for interesting and business-oriented effort. e Recognize that all investments must be justified. That applies not only to product
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