Technology Management - Essay Example

TECHNOLOGY MANAGEMENT Introduction Mega-competition, increased globalization, and development of information technology are some of the factors thathave made many organizations to undergo radical transformations of their strategies. On the one hand these changes are viewed as challenges for entrepreneurs, on the other hand – great opportunities. In order to stay competitive and grow business, decision-makers at the company level continuously practice strategic technology management (Kiyazaki and Kijima, 2000). The aim of this paper is to provide a brief overview of the key theories and common practices in technology management and to analyze how the principles of technology management could be applied for business development of this organization. Also, the paper is aiming to explore and evaluate the means/approaches surrounding technology and business value and business model creation, and business process management. The remainder of the paper is structured in the following way: Section I provides a brief introduction of the technology management, main principles, concepts, theories and issues related to opportunities and processes of the new business development; Section II defines Technology Management methodologies and applications; Section III provides analysis of the chosen organization with application of relevant concepts and common practices in technology management followed by recommendations; Section IV is concluding part of the paper. Section I: A brief introduction of the Technology Management Technology management is defined as a systems management that combines the stages of creation, acquisition and use of technology (Khodadadsiaestalkhi et al., 2013). While this definition is too broad, there is another, more precise definition where technology management is “process, which includes planning, directing, control and coordination of the development and implementation of technological capabilities to shape and accomplish the strategic and operational objectives of an organization (Liao, 2005:381). Technology management as an interdisciplinary science utilizes three key studies: engineering, science and management (Khodadadsiaestalkhi et al., 2013). Technology management being an interdisciplinary knowledge includes both macro and micro levels. At the national/international or macroeconomic level, technology management might be very helpful in shaping public policy. At the organizational or microeconomic level, technology might be helpful for individual firms/organizations in forming and stabilizing their competitive position on the market (Khodadadsiaestalkhi et al., 2013). The focus of this paper is made on the role of technology management at microeconomic level, with application to a specific company. There were identified several key factors, which have significantly influenced the new technology development. Some of these factors are referred to the following tectonic changes: pervasive globalization of markets, supply chains, sourcing and innovation; open innovation, linked to a preference for open systems with diverse stakeholders; cloud and mobile businesses, cyber-physical systems and self-managing intelligent environments, crowdsourcing of talent and technologies created trough online channels (Akhilesh, 2013: 136). In a result of several substantial changes within the last ten years, many companies have faced the necessity to adjust to the current trends in technology management in order to stay competitive and to develop their businesses. The strategic functions of corporate technologies Corporate technologies are differentiated by the type of strategic function(s). There are identified the following strategic functions: Core or critical functions (for example, technologies for product development and product design); Background or enabling functions (for example, production machinery, materials, instruments, software); Emerging or key functions (fields of knowledge presenting potential threats/opportunities) (Tidd, Bessant, and Pavitt, 2005). Section II: Technology Management methodologies and applications The process of managing technologies can be divided into several categories varying from innovations’ development and management to assessment, product development, commercialization, market entry and strategic actions (Kunz and Warren, 2011). There was also developed a huge variety of Technology Management methodologies. However, all these methodologies could be grouped into eight key categories, including: Technology Management framework, Information systems, Information and communication technology, general and policy research, database technology, intelligence/expert systems, modeling and statistics methodology (Liao, 2003). Further, Liao (2003) has summarized relevant literature review on technology management and has developed a framework and its applications, for each of the above listed categories. Below is presented with technology management applications. Category of Technology Management Modeling/Applications Technology management framework computer integrated manufacturing; construction project management; business process reengineering; project appraisal; product design; space disaster management; technology assessment; process design; engineering design; knowledge management. Information systems Healthcare management; Environmental management; Distributed system; Product data management; Manufacturing information network; Military; Product design; Waste management; Data acquisition; Marketing; System development in SMEs Information and communication technology Decision support; New Product development; Organizational memory; Knowledge Integration; Workflow management; Electronic commerce; Automatic system; Product data management; Program generation, etc. General and policy research Patient management; R&D management system; Technology assessment; New product development; Hospitality management; Government policy research; Risk management; Food design; Supply chain management; Energy management Database technology Hierarchical modeling; Machine learning; Error analysis; Database design; Web applications; etc. Intelligence/expert systems System maintenance; Electronic power programming; Financial management; Credit scoring; Catalog retrieval; System design and milling; Ergonomics design; Energy management; Modeling and statistics methodology Production management; Product development; Business process reengineering; Traffic management; Error analysis; Supply chain management; Design methodology; Purchasing evaluation; Manufacturing process, Manufacturing system, etc. Table 1. Technology Management Applications (Liao, 2003). As not all applications are relevant to the case of Company XXX, only some of the applications will be discussed in greater details, namely: new product development, business model, business planning, new strategy, and design. Section IV: Technology Management and Company Asia Odyssey Briefly about the Company The company analyzed in this case study is an existing company Asia Odyssey. It is a UK travel agency offering a tailor-made holidays and honeymoons to the Far East and India (Asiaodyssey.com,2014). This company is operating in the Internet-based industry as a tour operator. For the information-intensive firm, operating in the tourism sector, the main sources of technology are systems departments, in-house software departments, suppliers of IT hardware and software (applications) (Tidd, Bessant, Pavitt K, 2005). As this type of business involves significant amount of information, it is important to process the information flow in most effective and rational way. There should exist systems for processing information. As Tidd, Bessant, and Pavitt, (2005:193), information –intensive firms should focus on the “development of complex information-processing systems, and the development of related and often radically new services”. The development of a new service New product/service development is often recognized to be a new source for profit development. Companies can generate significant returns if the right new product/service is successfully introduced at the right location and time, for right price and for the right consumer (Fojt, 1996). However, in order to implement this strategy, companies have to take a close look at the industry in which it operates, examine market competition and market position, and a number of other external factors. Use of technology enables the companies to determine how new products/services will help them to maintain competitive advantage and to meet/exceed customer’s expectations. This process is also known as “the management of strategic new product development” (Fojt, 1996:18). For the development of a new product, or a new service, or both, there has been widely used technology road-mapping method, which technology alternatives were first identified and then mapped and supported with resource planning process (Philbin, 2013). The company is also recommended to adopt this process of technology management in order prioritize its business goals and to accelerate transfer of technology into products (Wells et al cited in Encyclopedia of Business ,n.d.). Thus, the company’s management will be able to see the “whole picture” with the links between capability targets, requirements and R&D programs, if any. Business strategy, adoption of CRM Technology enables companies to develop effective customer-focused business strategies. This concept is also widely known as Customer Relationship Management (CRM). This concept is comprised of strategies, philosophies, systems, and technologies which are integrated together in order to enable the company to manage its transactions and subsequent relationships with customers in a more effective and efficient ways (Nguyen & Waring, 2013). CRS in tourism industry enables to formulate a new travel marketing and distribution systems (Buhalis, n.d.). In this case, technology enables the firm to develop appropriate relationships with its customers and other relevant stakeholders (Nguyen & Waring, 2013). By adopting CRM to its strategy, the company gains the opportunities for using and managing data about its customers. It helps to better understand customer’s behavior and their needs, to classify customers by groups, and to develop business strategies for customer engagement and retention (Nguyen & Waring, 2013). Moreover, with the CRS the company can manage the inventory of a tourism enterpised more effectively, and distribute it electronically to external partners and remote sales offices (Buhalis, n.d.). With CRS consumers and intermediaries will have access to inventory and will be able to make reservations (Buhalis, n.d.). The company is recommended to consider options for Information Technology (IT) investment, based on its strategy, objectives and therefore, business priorities. Utilization of IT can be used to gain a competitive advantage on the market (Dibrell, Davis, and Craig, 2008). Involvement of new technology / innovative idea / new strategy / While there are many various components of the technology and technological progress, the most important components are known to be innovation, research and development (Khodadadsiaestalkhi et al., 2013). In the era of globalization and increasing consumers’ demands and expectations, innovation nowadays is recognized to be the main source of economic as well as non-economic wealth (Akhilesh, 2013; Khodadadsiaestalkhi et al., 2013). Innovation can have different forms and aspects, varying from a new product, a new service, a new process, a new market, to patents, cost reduction methods, R&D, etc. (Akhilesh, 2013). The company XXX should focus on innovating new processes which will enable it to reduce costs, to add value to the existing products, and to differentiate from its competitors. Section IV Conclusion The paper explored and evaluated the means, approaches and applications of technology management. While there are many different methodologies and applications of TM, the focus of this paper was made only on several of them. Therefore, some of the key approaches and concepts of technology management have been applied to the case of travel company, followed by recommendations. As the company information-intensive firm, operating in the Internet-based industry, the number of recommendations were limited. It was recommended to adopt new technologies for developing new services, developing business strategy and improving customer service via integration of the Customer Relationship Management system, and developing innovations that will enable the company to reduce costs, to add value to the existing products, and to differentiate from its competitors. References: Akhilesh, K. (2013). Emerging dimensions of technology management. New Delhi: Springer. Asiaodyssey.com, (2014). Asia Holidays and Asia Honeymoons with Asia Odyssey. [online] Available at: http://www.asiaodyssey.com/ Buhalis D (n.d.). Strategic use of information technologies in the tourism industry. Dibrell, C., Davis, P.S. & Craig, J. 2008, "Fueling Innovation through Information Technology in SMEs*", Journal of Small Business Management, vol. 46, no. 2, pp. 203-218. Encyclopedia of Business (n.d.). Technology Management - strategy, organization, system, examples, advantages, manager, definition, school, model. [online] Available at: http://www.referenceforbusiness.com/management/Str-Ti/Technology-Management.html Fojt, M. (1996),"New product development", Journal of Product & Brand Management, Vol. 5 (5), pp. 1 – 56. Philbin, S. (2013). Emerging Requirements for Technology Management: A Sector-based Scenario Planning Approach. Journal of Technology Management & Innovation, 8(3), pp.7-8. Khodadadsiaestalkhi, F., Maghouli, F., Hasanzadeh, S.M. & Alkami, H.A. (2013), "Technology Management in Business", Interdisciplinary Journal of Contemporary Research In Business, vol. 5, no. 2, pp. 626-634. Kiyazaki K, and Kijima, K. (2000). Complexity in Technology Management: Theoretical Analysis and Case Study of Automobile Sector in Japan. Technological Forecasting and Social Change 64, 39–54. Kunz, V. and Warren L. (2011). "From innovation to market entry". Technology analysis & strategic management (0953-7325), 23 (4), p. 345-463. Liao, S. (2003). Knowledge management technologies and applications—literature review from 1995 to 2002. Expert Systems with Applications, 25(2), pp.155-164. Nguyen, T.H. & Waring, T.S. (2013), "The adoption of customer relationship management (CRM) technology in SMEs", Journal of Small Business and Enterprise Development, vol. 20, no. 4, pp. 824-848. Tchuta, L. & Fuji, X. 2013, "Towards a Strategic Innovation Management Framework, The Interplay of Business, Technology and management innovations", The Academy of Business and Retail Management (ABRM), London, 03, pp. 32. Tidd, J., Bessant J., Pavitt K. (2005). Managing innovation: Integrating technological, market and organizational change. 3rd Edition. Haddington: Scotprint. Read More