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TECHNOLOGY MANAOEMENT - THE SYSTEM APPROACH

MANAGEMENT OF TECHNOLOGY

TECHNOLOGY MANAOEMENT - THE SYSTEM APPROACH

In the absence of a powerful theory able to incorporate the results of previous studies and information concerning technologi- cal development, systems theory and a systems approach can help to synthesize different analytical results and to focus on certain questions or a combination of various aspects to achieve an in- tegrated and broad theoretical view with practical applications

about technology and its management. The systems approach permits a step-by-step analysis and study of separate system elements and their relations, while connecting the whole system. Based on that, a simple model of technological development and its manage- ment can be built (See Figure 5).

FIGURE 5

In this model, technological process embraces the activities of creation, development, implementation, exploitation and even- tually replacement of one technology or group of technologies.

The internal structure of this process can be described through different models (life cycle, research-production cycle, etc.).

The impacts experienced by the technology selected for our study, during the stages of birth, growth and maturity differ in nature, intensity, and direction. But they can be integrated and expres- sed ( a s is shown in the model) in the following way:

Input: the input to the process of technological development (technological process) is defined by the resources necessary to be used in this process as well as by their availability and the

ability of the system to spot and use them efficiently. Those resources can be described as RCD efforts or activities, even as the RCD level of the environment (i.e., the ability of the en- vironment to carry out RCD activities through which new technolo- gies in the field can emerge, including the intellectual input to the process). Skills needed in the process to make the new tech- nology work as well as to improve already existing technologies are also considered as an input to the process (i.e., availabi- lity of various skilled personnel and organizational settings for their education and training). New raw materials with better quality, easier procurement, and lower cost are essentially impor tant as a main input in the process. Ideas of any kind are also very important.

Output: the output of any technology should be described as a product or service with higher quality and greater value as well as a better standard of living for society, better working conditions, greater environmental protection ( i n some cases, even its restoration).

Both the output and input of technological processes should be managed by the company. It is important to study to what extent these factors depend on the environment and to what extent the company is able to forecast and manage them.

The environment plays a major role in technology management.

The main factors influencing technological development and its management outside the system (company, country, or industry, etc.) can be summarized in the following groups:

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Stage of economic development: characterized by the level of industrial and economic development of a country, region, or economic system which either facilitates or inhibits the technological development of the system under study. A well developed infrastructure and favorable economic conditions can facilitate the introduction, development and exploitation of technology.

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Organizational culture within the environment: can play an accelerating or inhibiting role in the development of tech- nology. This influences the style of the system and in- dividuals working in it through the value system and cultural habits. Society's learning curve for managing big organiza- tions and technologies is also connected with the stage of industrial and economic development (nations with a short industrial history have no accumulated organizational and managerial experience and habits, which in any case does not facilitate technology management itself).

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Government policy and strategy: the participation of govern- ment in financing different technological ventures a s well as the organizational settings created to facilitate the pro-

curement of various types of inputs to the process has an important impact on the technological process.

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International scientific collaboration, trade and production:

results in extensive scientific and technical cooperation between countries and research organizations. Many new technologies are already resulting from the work of special- ists in different countries. Therefore, technologies are more easily available to different systems than decades ago.

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International trade through the exchange of goods, operation- al know-how, services and knowledge: provides easier access to some of the process inputs for companies and countries.

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International cooperation: one of the main reservoirs of new technologies and all types of innovations. Technology transfer between countries as well as between two economic systems is a growing phenomenon despite political and econo- mic difficulties. These conditions advance the problem of transferring managerial and organizational know-how as well.

Based on the above concept and model, the study hypothesizes the following:

Technologies require for their development and exploitation similar conditions and experience similar impacts, not because of their technical nature and characteristics, but because of the stage of their development (rate of novelty) and the source of their procurement (inside or outside the system).

Companies behave similarly during the various phases of the technological life cycle. This makes the life cycle an instrument for company technology management.

The life cycle model is one of several possible models ex- pressing technological development. Its phases can be used not only to study the dynamics of technology, but also to study the dynamics of management and organization.

Management is influenced by both internal and external fac- tors which change the impact of the technological life cycle.

Technological life cycles at different levels have different impacts o n company technology management.

To check the elaborated hypothesis, a pilot study concentrat- ing on the steel industry was undertaken. The following method- ological issues were taken into consideration within the pilot study:

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Specifying the technological life cycle on three different levels (company, national, and world) and the boundaries

between the various phases to serve as a base of comparison and analyais of management dynamics.

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Describing technology management, concentrating on strategy, by developing sets of variables.

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Creating an appropriate data base necesaary for performing analytical and empirical investigations.

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Elaborating and aelecting appropriate methods (mathematical, statistical, and others) which will result in useful find- ings.

Data to describe management must be selected very carefully because much of it is so-called "soft data" and very difficult to quantify. According to recent research (Sciberras, 1986), all commonly used indicators of RLD activities suffer from severe limitations ( i n other words, value to wait ratios of finished products, RCD expenditure, number of RCD employees, patents and licenses, rate and direction of technology flow). Furthermore, a reliable understanding of the role of management can be obtained only by combining quantitative data with more qualitative sector- based research. Different studies use a number of different kinds of data or indicators to describe management (e.g. Goncha- rov, 1982 and 1983; Jamielson, 1980).

The study has developed a set of variables constructed in a way that allows technology management to be described in countries with both centrally planned and market economies (See Appendix).

Two approaches in choosing variables describing management and organization are possible. The first is to choose qualitative variables which reveal organizational behavior. Qualitative

variables make it possible to evaluate the relations of the tech- nology development process in a given organization to such tan- gible factors as management style, methods and environment. The second approach is to choose variables which can be measured quantitatively and mainly indicate company performance, such as economic efficiency of implementing a new technology, resources allocated to RCD or technology change, and so on. The results of each analysia permit us to draw qualitative conclusions about the efficiency of technology management, but it is difficult to draw conclusions about the nature of the organieation's behavior towards the environment and the pattern of management itself.

The combination of the two approaches will create a better appraiaal of the efficiency and usefulness of the management system in a given organieation regarding technology.

Over 50 different variables expressed through various in-