Assignment -Technology Management)

AMITY SCHOOL OF DISTANCE LEARNINGPost Box No. 503, Sector-44

Noida – 201303TECHNOLOGY MANAGEMENT

Assignment A

a) What is technology? Discuss the role of technology in the productivity growth.

Ans:- Technology is the process by which humans modify nature to meet their needs and wants. Most people, however, think of technology in terms of its artifacts: computers and software, aircraft, pesticides, water-treatment plants, birth-control pills, and microwave ovens, to name a few. But technology is more than these tangible products.

Technology includes all of the infrastructure necessary for the design, manufacture, operation, and repair of technological artifacts, from corporate headquarters and engineering schools to manufacturing plants and maintenance facilities. The knowledge and processes used to create and to operate technological artifacts -- engineering know-how, manufacturing expertise, and various technical skills -- are equally important part of technology.

Technology is a product of engineering and science, the study of the natural world. Science has two parts: (1) a body of knowledge that has been accumulated over time and (2) a process-scientific inquiry-that generates knowledge about the natural world. Engineering, too, consists of a body of knowledge-in this case knowledge of the design and creation of human-made products-and a process for solving problems. Science aims to understand the "why" and "how" of nature, engineering seeks to shape the natural world to meet human needs and wants. Engineering, therefore, could be called "design under constraint," with science-the laws of nature-being one of a number of limiting factors engineers must take into account. Other constraints include cost, reliability, safety, environmental impact, ease of use, available human and material resources, manufacturability, government regulations, laws, and even politics. In short, technology necessarily involves science and engineering.

Productivity is one of the most closely watched indicators of long-term economic prospects. Rising productivity is the key to making possible permanent increases in the standard of living.

Changes in technology are the only source of permanent increases in productivity, but a number of transient factors can affect both true and "measured" productivity. For example, workers may work harder during periods of high demand and firms may use their capital assets more intensively by running factories for extra shifts; both factors can lead measured productivity to be too high relative to actual technological progress. Similarly, during periods of high demand, productivity can rise because firms take advantage of increasing returns to scale; the authors argue that this effect is not permanent and should be discounted when measuring long-run technical change. The strength of the latest economic expansion in the second half of 1990s has led many commentators to argue that the rapid increases in measured productivity during that period were attributable to bad measurement or to temporary factors of this type.

The expansion that began in the 1990s also is distinguished by a large and long-lasting increase in business investment. Although labor force employment, labor force participation, and rates of unemployment have been comparable to what occurred in earlier expansions, the share of investment in information technology rose from a baseline of roughly 3 percent of GDP in the late 1980s to almost 6 percent of GDP by 1999. The authors suggest that this unusually rapid rate of investment actually may lead measured productivity growth to understate the underlying rate of technical change -- because rapid capital investment disrupts firms' ability to produce output, for example because their workers often are diverted from their normal tasks to install new equipment and learn to use it effectively. These "adjustment costs" lower output growth, and thus lower measured productivity growth as well.

Controlling for this range of confounding effects, the authors find that the strong performance of productivity growth in the second half of the 1990s was in fact attributable to accelerating technical change, not to poor measurement or to temporary factors. They find that in the first half of the 1990s, true technology grew at an annual rate of 1.2 percent, but

this rate rose to 3.1 percent for the 1995-9 period. In fact, the rate of technical change over 1995-9 exceeded even the measured growth rate of 2.5 percent, because of the temporary damping effect of higher investment on productivity growth noted above.

In the aggregate, the authors conclude, there is "evidence of a substantial increase in the pace of technological change in the latter half of the 1990s." More intensive use of capital and labor accounted for some of the increase in measured productivity in the first half of the 1990s, but that utilization was flat or declining over the second half. Adjustment costs masked a substantial fraction of the increases in true technology that occurred in the second half of the 1990s.

These results also suggest that productivity increases were distributed widely, if unevenly. Durable manufacturing experienced the fastest rate of technology growth and its largest acceleration, with increases of over 6 percent per year during the second half of the 1990s. Technological growth in the private non-manufacturing sector--which includes the large and important service sector--increased from 0.9 percent to 2.7 percent over the same period. In non-durable manufacturing, however, technology growth was "very slow," although the authors suggest that this result may arise from data problems at the end of the sample.

b) Explain the concept of atlas of technology.

Ans:-

2 .a) Why should technology be considered as a strategic resource?Ans:

1) It proposes that IT be treated as a key strategic resource and describes how the Information Management

(IM) and IT frameworks can support the organization .

2) Information Management is taken to mean the entire process of defining, evaluating, protecting, distributingand managing information within an organisation.

3) Information Technology is taken to mean all computer and communications-based technologies which

areused to collect, store, manipulate, access and disseminate information of all types and for all purposes.

4) It will be supported by other plans and policies offering more detailed information on the management of specific IT issues, the management of IT within particular areas and the general use of technology.

5) To support and enable a organization wide Information Technology environment where quality systems,

services and technology can be delivered and supported to meet the diverse needs of students, staff and the community.

6) organization information is a strategically important resource and all staff are responsible for the accuracy

and currency of information in their domain.

b) Why management of technology at the enterprise level important?

Ans:- Enterprise Content Management (ECM) is a formalized means of organizing and storing an organization's documents, and other content, that relate to the organization's processes. The term encompasses strategies, methods, and tools used throughout the lifecycle of the content.[1]

Enterprise software, also known as enterprise application software (EAS), is software used in organizations, such as in a business or government,[1] as opposed to software chosen by individuals (for example, retail software).

Services provided by enterprise software are typically business-oriented tools such as online shopping and online payment processing, interactive product catalogue, automated billing systems, security, content management, IT service management, customer relationship management, resource planning, business intelligence, HR management, manufacturing, application integration, and forms automation

Enterprise software describes a collection of computer programs with common business applications, tools for modeling how the entire organization works, and development tools for building applications unique to the organization.[3] The software is intended to solve an enterprise-wide problem (rather than a departmental problem) and often written using an Enterprise Software Architecture.[4] Enterprise level software aims to improve the enterprise's productivity and efficiency by providing business logic support functionality.

Capterra broadly defines enterprise software in the following manner:[5]

Targets any type of organization — corporations, partnerships, sole proprietorships, nonprofits, government agencies — but does not directly target consumers.

Targets any industry. Targets both large and small organizations — from Fortune 500 to "mom and

pop" businesses. Includes function-specific (Accounting, HR, Supply Chain, etc.) and industry-

specific (Manufacturing, Retail, Healthcare, etc.) solutions.

Due to the cost of building or buying what is often non-free proprietary software, only large enterprises attempt to implement such enterprise software that models the entire business enterprise and is the core IT system of governing the enterprise and the core of communication within the enterprise.

1. a) What is technology absorption? What are the reasons for the external acquisition of technology ?

Ans:-

Most technology in ‘latecomers’ comes from abroad, in mixture of two forms:

- Embodied: in capital goods, patents, blueprints,designs, models and so on-Tacit: knowledge that can be ‘transferred’ only by close interaction and learning by new user Using technology efficiently thus needs conscious effort by the enterprise & also the ‘system’ in which it works (suppliers, customers, technology support, training institutions and so on). Technology flows forms:• Non-contractual: Public knowledge, fairs, conferences, migration, export activity and informal networks• Contractual:o FDI related: (internalized) transfers within multinationals or joint ventures with MNCsRole of internalized technology flows• Innovation is highly concentrated, by region, country and enterprise• MNCs lead in innovation: most R&D is performed bylarge firms and most innovative firms are globalized• MNCs dominate technology flows in all forms, but form depends on nature of technology: newest and most valuable technology is internalized, others licensed• Role of MNCs in global economy is growing steadily FDI is growing faster than other economic aggregates: national investment, GDP or exports• MNCs control about 2/3 of world trade.•About 30-40% of this trade is within MNCs, and their role is particularly large in high-tech manufacturing• MNC export activity is taking new forms: ‘global production networks’, with very fine vertical specialization by function/component between countries• Local companies are also involved in global production networks, but only if they have very high levels of technological capabilities – and form strong ties with MNCs to access and absorb their technological know-how and management skills

What this means for:

Developing & Transition economies:

• FDI is the most efficient way to access foreign technology if countries want• New, fast-changing proprietary technologies not available at arm’s length• Rapid access to new technology and subsequent upgrading, without local effort• Non-core components of operation (i.e. management, marketing, finance etc)• Access to MNC foreign markets, particularly to global production networks

b) What is technology intelligence capability?

Ans:- The concept of Technology Intelligence plays an important role here, referring to:

"...the activity that enables companies to identify the technological opportunities and threats that could affect the future growth and survival of their business. It aims to capture and disseminate the technological information needed for strategic planning and decision-making. As technology life cycles shorten and business becomes more globalized, having effective Technology Intelligence capabilities is becoming increasingly important."

We're moving from the "Information Age" to the "Intelligence Age." The former was all about building the database -- i.e. the Web and its vast amount of content -- but today we've progressed to creating contextual access to the right pieces of information to derive intelligence, meaning and insight

4. A) Explain the term world class manufacturing?

Ans:- World Class Manufacturing is a different set of concepts, principles, policies and techniques for managing and operating a manufacturing company. It is driven by the results achieved by the Japanese manufacturing resurgence following World War II, and adapts many of the ideas used by the Japanese in automotive, electronics and steel companies to gain a competitive edge. It primarily focuses on continual improvement in quality, cost, lead time, flexibility and customer service.

World Class Manufacturing is a process-driven approach where implementations usually involve the following philosophies and techniques:

Make-to-order Streamlined flow Small lot sizes Families of parts Doing it right the first time Cellular manufacturing Total preventive maintenance Quick changeover Zero Defects Just-in-time Variability reduction High employee involvement Cross functional teams Multi-skilled employees Visual signaling Statistical process control

Companies engaging in World Class Manufacturing strategies focus on improving operations, strive to eliminate waste and create lean organizations. This often results in higher productivity. But these companies also focus on speed of total throughput from order capture through delivery setting new standards for delivery without the heavy dependence on inventory. Sequential methods of performing work are being replaced with concurrent methods to compress time, and functional and hierarchical divisions of duties are being replaced by team-driven activities

b) What is JIT? Discuss the basic elements that constitute JIT.

Ans:-

Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. Just In Time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT can improve a manufacturing organization's return on investment, quality, and efficiency.

Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this work is often misunderstood.

For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "...end up with the opposite of the desired result." [1]

In recent years manufacturers have continued to try to hone forecasting methods (such as applying a trailing 13 week average as a better predictor for JIT planning,[2] however some research demonstrates that basing JIT on the presumption of stability is inherently flawed.

5. A) Differentiate the terms invention and innovation.

Ans:- An invention is a new composition, device, or process. An invention may be derived from a pre-existing model or idea, or it could be independently conceived in which case it may be a radical breakthrough. In addition, there is cultural invention, which is an innovative set of useful social behaviors adopted by people and passed on to others. [1] Inventions often extend the boundaries of human knowledge or experience. An invention that is novel and not obvious to others skilled in the same field may be able to obtain the legal protection of a patent. In economic theory, inventions are one of the chief examples of "positive externalities", a beneficial side-effect that falls on those outside a transaction or activity. One of the central concepts of economics is that externalities should be internalized—unless some of the benefits of this positive externality can be captured by the parties, the parties will be under-rewarded for their inventions, and systematic under-rewarding will lead to under-investment in activities that lead to inventions. The patent system captures those positive externalities for the inventor or other patent owner, so that the economy as a whole will invest a more-closely-optimum amount of resources in the process of invention.

Innovation comes from the Latin innovātus which means to renew. Innovation can therefore be seen as the process that renews something that exists and not, as is commonly assumed, the introduction of something new.

For the renewal to take place it is necessary for people to change the way they make decisions, they must choose to do things differently, make choices outside of their norm. Schumpeter c.s. (~1930) seems to have stated that innovation changes the values onto which the system is based . So when people change their value (system) the old (economic) system will tumble over to make

room for the new one. When that happens innovation has occurred. So innovation must be seen as something that does not something that is

On a lower level, innovation can be seen as a change in the thought process for doing something, or the useful application of new inventions or discoveries. [1] It may refer to incremental, emergent, or radical and revolutionary changes in thinking, products, processes, or organizations. Following Schumpeter (1934), contributors to the scholarly literature on innovation typically distinguish between invention, an idea made manifest, and innovation, ideas applied successfully in practice. In many fields, such as the arts, economics and government policy, something new must be substantially different to be innovative. In economics the change must increase value, customer value, or producer value. The goal of invention is positive change, to make someone or something better. Invention and introduction of it that leads to increased productivity is the fundamental source of increasing wealth in an economy.

Innovation is an important topic in the study of economics, business, entrepreneurship, design, technology, sociology, and engineering. Colloquially, the word "innovation" is often synonymous with the output of the process. However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds. Since innovation is also considered a major driver of the economy, especially when it leads to new product categories or increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth.

Those who are directly responsible for application of inventions are often called pioneers in their field, whether they are individuals or organizations. When pioneers are followed by many other the dominant value system may be replaced by the new one. When this happens innovation has occurred a posteriori.

is the embodiment of something new. While both invention and innovation have "uniqueness" implications, innovation is related to acceptance in society, profitability and market performance expectation.

An improvement on an existing form or embodiment, composition or processes might be an invention, an innovation, both or neither if it is not substantial enough. According to certain business literature, an idea, a change or an improvement is only an innovation when it is put to use and effectively causes a social or commercial reorganization.

In business, innovation can be easily distinguished from invention. Invention is the conversion of cash into ideas. Innovation is the conversion of ideas into cash. This is best described by comparing Thomas Edison with Nikola Tesla. Thomas Edison was an innovator because he made money from his ideas. Nikola Tesla was an inventor. Tesla spent money to create his inventions but was unable to monetize them. Innovators produce, market and profit from their innovations. Inventors may or may not profit from their work.

b) Why organizations resort to technology transfer? What are the issues that encompass technology transfer?

Ans:- Technology transfer is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer.

Technology brokers are people who discovered how to bridge the disparate worlds and apply scientific concepts or processes to new situations or circumstances. [1]

Related terms, used almost synonymously, include "technology valorisation" and "technology commercialisation". While conceptually the practice has been utilized for many years (in ancient times, Archimedes was notable for applying science to practical problems), the present-day volume of research, combined with high-profile failures at Xerox PARC and elsewhere, has led to a focus on the process itself.

Issues in Technology Transfer :-

For several years the author was involved in a research project at a major aerospace corporation. The project studied techniques for program synthesis, automatic code generation, very high-level languages, graphical design tools and similar topics. The goal was to simplify specification of software systems and to make code synthesis practical by working in a restricted domain.

As in most industrial research laboratories there was the pressure to show practical relevance of the work. To that end, the project developed a number of prototype tools that were considered practical .

But academic standards are not good enough to be accepted by those responsible for real products. Several attempts to transition some of the lab's technology to product divisions were met with universal rejection. There were several reasons for this rejection, most of them non-technical in nature.

Academics tend to develop tools in the abstract, i.e., they solve an intellectually interesting problem without regard to actual applications. When scientists talk about concepts such as ``completeness of decision procedures'' of ``expressiveness of languages,'' their value will not be apparent to decision makers. Technology must be sold by describing the concrete problems being solved, how much time is saved, and how quality is improved. The technology is irrelevant, it is its impact that matters.

People in charge of software projects are extremely concerned about schedule risk. Even if a new tool promises great time savings, it will be rejected if there is

even minimal risk that it might negatively impact the schedule. Large potential time savings are often not realistic due to a steep learning curve.

Researchers tend to build tools in isolation without consideration of the environment and the work process of software production. Tools that require changes in an established software development process are difficult to sell.

An important reason for rejection is the perceived and often real lack of maintenance and support for systems that come out of research labs.

One frequent objection to the use of machine generated code was readability. From the academic point of view, machine generated Ada code is no different than compiler generated assembly code. But the programmer in the field will be skeptical of the new technology and will want to inspect and understand the code. As a consequence significant effort was spent on generating human readable, commented code.

Y TRANSFERBL TECHNOLOGY FERPROBLEMSMany reasons can be cited for lack of teAssignment B

1.a) What is technovation? Explain the process of tehnovation.Ans:-TechnovationIn today's competitive business environment, entrepreneurs must consider how todistinguish their business from all the others. Those businesses that don't have adistinction often languish in price wars and then go out of business. One way to set yourbusiness apart in today’s high-tech world is through technovation.Starting new companies creates dynamism and affluence in a society. TechnologyInnovation contributes to the development of both society and the new company byproviding capital, expertise and networks for innovative entrepreneurs.An innovation is a value addition that is a novelty in the market and is commerciallyviable. Customers recognize the utility and are therefore prepared to pay for such value.An innovative product is one that takes a leap in the cost-benefit analysis in the area ofendeavor by an entrepreneur.

What is Technovation?Technovation is an innovation that is technologically advanced. Innovating a newtechnology involves risking capital. If you undertake a project without a sufficientsupporting infrastructure, you don't know how long it will take, how much it will cost,how much market demand there will be, or how soon.Innovative project concepts might be high-tech products, new production methods, newinventions with great potential, new services, or perhaps a knowledge-based businessconcept. It is vital that the project has strong commercial potential, that it is a vehicle forchange and the creation of wealth, and that it is ethically sound and sustainable.The trick is to be innovative and profitable, and at the same time technologicallyadvanced.Criteria for evaluating a development effort:

List and quantify ways in which the user's experience with the task will causeimprovements with respect to:* costs* benefits* technologyYou could say that all innovation is successful by definition because any increase in abenefits-to-costs ratio is a success, but the innovator has to be careful if he/she wants tomake a profit because of the amount of money that often has to be spent on technology.Constantly ask questions like - What other innovations have made your productpossible, and when did they show up? What other innovations are still needed for your

product to become practical?

b) What are the principles of technology fusion?

2. A) Explain the term intellectual property right?

Ans:- Intellectual property (IP) is a term referring to a number of distinct types of creations of the mind for which property rights are recognized—and the corresponding fields of law.[1] Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property include copyrights, trademarks, patents, industrial design rights and trade secrets in some jurisdictions.

Although many of the legal principles governing intellectual property have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the United States.[2] The British Statute of Anne 1710 and the Statute of Monopolies 1623 are now seen as the origin of copyright and patent law respectively.

b) What is the role of WTO in protecting IPR?

3. Write short notesa) Concurrent engineering

Ans:- The concurrent engineering method is still a relatively new design management system, but has had the opportunity to mature in recent years to become a well-defined systems approach towards optimizing engineering design cycles.[1] Because of this, concurrent engineering has gathered much attention from industry and has been implemented in a multitude of companies, organizations and universities, most notably in the aerospace industry.

The basic premise for concurrent engineering revolves around two concepts. The first is the idea that all elements of a product’s life-cycle, from functionality, producibility, assembly, testability, maintenance issues, environmental impact and finally disposal and recycling, should be taken into careful consideration in the early design phases.[2]

The second concept is that the preceding design activities should all be occurring at the same time, or concurrently. The overall goal being that the concurrent nature of these processes significantly increases productivity and product quality, aspects that are obviously important in today's fast-paced market.[3] This philosophy is key to the success of concurrent engineering because it allows for errors and redesigns to be discovered early in the design process when the project is still in a more abstract and possibly digital realm. By locating and fixing these issues early, the design team can avoid what often become costly errors as the project moves to more complicated computational models and eventually into the physical realm. [4]

b) Core competencyAns:

core competency is a specific factor that a business sees as being central to the way it, or its employees, works. It fulfills two key criteria:

1. It is not easy for competitors to imitate 2. It can be leveraged widely to many products and markets.

A core competency can take various forms, including technical/subject matter know-how, a reliable process and/or close relationships with customers and suppliers.[1] It may also include product development or culture, such as employee dedication.

Core competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value. Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. It is communication, an involvement and a deep commitment to working across organizational boundaries. Few companies are likely to build world leadership in more than five or six fundamental competencies.

c) Appropriate technology

Ans:- Appropriate technology is being mindful of what we're doing and aware of the consequences. Appropriate technology works from the bottom up; it is not an overlay to the situation; it is a genuine grassroots solution to economic needs. In the Industrial World small businesses account for more technological advances in their areas of expertise than government supported researchers or research departments in massive corporations. Third World craftspeople, farmers and other villagers invent, create, and contribute to the technological process of their area much more than outside "experts" do.

The idea of appropriate technology is that local people, struggling on a daily basis with their needs, understand those needs better than anyone and can therefore suggest or in fact, invent the technological innovations necessary to meet

those needs. Not only that, local people can prioritize solutions to save precious funding and labor. Planners and those who want to help others grapple with food and energy problems are wise to include local people in the early stages of project vision. The result is consistency in the carry-through of the work by locals and continued maintenance and interest in the well-being of the project over the long haul.

While grassroots activity is vital in developing appropriate technology, a larger view is definitely called for in understanding how organizations can combine funds and human resources to develop and market technologies. Communication among international aid agencies can greatly enhance efficient use of funds for appropriate technology and a reduction of the "reinventing the wheel" syndrome.

The definition of "Appropriate Technology" changes with each situation. It's not appropriate to install solar modules in a place with very little sun, a wind generator in a place with little or no wind. What's appropriate in a large urban location is very different from what's appropriate in a remote, isolated environment. One quality that remains the same, however, is taking care of things. In each situaton, the essence of AT remains appreciating, helping, caring. Planned obsolescence, throw-away products, poor quality all go against intelligent decision-making and the true spirit of appropriate technology

4. Case study: Please read the case study given below and answer questions given at the end.

Case Study

Managing Technology and R&D

ESAB Indian limited, Bombay is a leading manufacturer of welding consumables and equipment. ESAB India Limited is the Indian associate of ESAB AB, the Swedish multinational and the world’s largest company in welding and cutting, with production centers, core representation in most of the countries.

ESAB India, a Public Limited Company with paid up capital of Rs. 50 million, employs 206 people, including 35 S&T personnel, at its Kalwa unit which is the major manufacturing facility. It had a turnover of above Rs. 30 crores during 1991-92. It is licensed to make 1250 nos. of welding and cutting equipment and 24020 km of welding electrodes.The in-house R&D unit of the company employs about 10 persons including S&T personnel (scientists and engineers) and is headed by a well qualified chief at the level of General Manager directly reporting to the Managing Director. The R&D unit is a separate entity situated within the company premises occupying a floor area of about 300 sq. m. but closely interacts with other functional groups. It has well equipped laboratories and pilot plant facilities for development purposes. The annual R&D expenditure was about Rs. 24 lakhs during 1991-92, i.e. about 0.8% of the annual turnover. A good technical library having books, journals and periodicals in the field of manufacturing is maintained. The company also encourages close interaction with the relevant R&D organizations and academic institutions. R&D personnel participate in technical seminars and meetings in India and abroad. A computerized information facility has also been built up.

The R&D unit of the ESAB India closely interacts from time to time with the principals in Sweden and at other places on developmental needs and receives relevant technical information which is very useful for R&D in India. In fact, there are some products/areas which have specifically been developed to meet the needs of India and could be relevant to other developing countries as well, but are not covered in the product range of the principals abroad. Most of the developments relate to highly specific applications such as for oil, power, underwater uses and are import substitutes. There are immense export possibilities through constant development efforts to meet the specific requirements of other countries.

In the early eighties ESAB realized that to survive in the competitive world of welding it had to become the biggest company and a leader in technology. As a route to achieve this objective, ESAB acquired a number of companies active in the field of welding and cutting. It acquired the European welding activities of Philips electrical and electronic group, based in the Netherlands in 1985. Subsequently, the welding business unit of Philips India Limited also became a part of ESAB Group in July 1988. This unit was not doing well commercially. The turnover of ESAB (India) almost tripled in three years due to active marketing efforts. In May, 1991 ESAB India Limited acquired the welding business of Indian Oxygen Limited (IOL), Calcutta. The turnover then approached Rs. 100 crore. The new Indian organization now has four major manufacturing centers and has sales outlets in all parts of the sub-continent.

TECHNOLOGY AND STRATEGY POLICYESAB’s objective was to become a world leader in welding technology. This was to be achieved by carrying in-house research and by absorbing the technology of newly acquired companies. ESAB now has well established R&D facilities in a number of countries, including India. The R&D unit of ESAB is a DSIR recognized unit and works presently mainly for the Indian market. In setting the objective of ESAB India, the top management of the parent company takes into account the in-house capability and potential for further advancement through imported technology. All possible support to R&D is extended by the management to retain the leadership in its field.

The company’s commitment to welding technology and product development is evident from the goal of the organization which is to provide technical solutions to the customers. Here the organization insists on the important distinction that is to provide solutions and does not sell products.

In a world where technology dominates there are new opportunities for continuous development. The development of low moisture absorption welding electrodes is a good example. The offshore structures of the North Sea required welding consumables (electrodes) which would produce welded fabrication free from structural failure in a very harsh working environment. The cost of such failures could be tremendous compared to the cost of welding consumables. Typically, welding consumables constitute less than 1.5% of the total cost of the structure. The cost of failure of the structures is frequently many times the cost of the structure itself.

The early objective was to have extra low hydrogen in the weld metal. For this purpose special low hydrogen electrodes were made and then re-packed just before use. This costly process could be eliminated by packing the electrodes in vacuum sealed packages (Vac Pac) at a relatively high cost. Efforts at developing the low cost devices for packing continued. The low moisture absorption electrodes have now been produced which reduce the cost of the solution of the welding problem. At the same time the product was further developed to give improved welding characteristics in order to improve manufacturability and to reduce cost.

Expenses incurred on product and process development have to be recovered from sales so that R&D process for continuous improvement can go on. The key words which characterize ESAB’s commitment to the continuous development of processes and system are:

The productivity of the welder and fabricator The quality of weld deposit The working environment

PRODUCTIVITYDuring the last decade and a half, a shift from the manual welding process to semi and fully automatic welding processes has taken place in most of the developed countries, mainly to achieve higher productivity and lower manufacturing cost. Today in these markets more than half of the total production of weld metal is derived from continuous solid and flux cored wires

processes. It, therefore, became necessary to develop consumables to meet this challenge. Many new automatic consumables have been added.

There was a parallel development of new welding machines to match the automatic welding processes (including welding robots). The packing standards were also changed to suit automatic welding consumables for uninterrupted supply of high-quality wire to the robotic processes (ESAB’s Marathon Pac).

QUALITYProducts are services which do not meet the quality requirements of the customers and do not stand the test of time. Today quality does not remain within the boundaries of the product alone. Total quality is the need of the hour. Introduction of a Total Quality Program is the ESAB group is a step in this direction. While finalizing the requirement for a new product the quality of the weld is inbuilt in the specification. Welding is not an end in itself. It is a process to produce a structure. The most successful welds produce the base component or fabrication at the lowest level.

ENVIRONMENTThe cost and quality of the weld very much depend on the welder who in turn is profoundly influenced by the working environment. The welder will produce better welds in a friendly environment or with electrodes with better welding characteristics, a single point control (synergic control) of the welding machines and reduce fume. Controlling the toxicity limit of the welding fume shows concern towards the health of the welder whilst at the same time improving the effectiveness. ESAB’s R&D is in the forefront of action to make the environment friendlier to the welder.

As can be seen, developments in welding concern while process and are realized by improving existing products and introducing new technologies. Attention will, in future, focus increasingly on issues relating to the internal and external environment and economy. Combining ESAB’s product, process research and development with the customers’ production experience often lead to collaborative ventures to improve economy, quality, and productivity and safety standards in the latter works.

The R&D department of ESAB India is the focal point of all technical activities of ESAB in India. It also acts as the interface between the principals in Sweden and the Indian organization. It undertakes research and development activities related to new products and technologies for meeting the needs of the growing Indian market. Emphasis is on continuous local technological development, absorption and up-gradation of imported technologies for all the welding activities.

The department is manned by a group of highly qualified persons who have the experience in other line functions so that their perception of the problem is realistic rather than theoretical. Members have had previous experience in quality control, production or marketing before they joined the R&D group. They are capable of understanding the real problems or the requirement of new products as envisaged by the customer. All members of the department help each other to keep expectation within feasible limits.

Technology and product is market lead in India. For instance, in a specific nuclear project the requirements were very stringent and critical. The required product was developed in two phases. In the beginning, the technical requirements were first met and subsequently the cost was reduced. Initially, market demand was not large but with time it expanded and now they have a proprietary product with large demand.

Many such market-led developments have been successfully carried out in India. This has helped ESAB earn the name of a technology based company. The R&D department

accordingly has established its importance in the organization and has representation in all decisions of the group management pertaining to technology and product management.

METHODOLOGYIf the product development is market-led, the marketing department has to present its requirements in regard to future market demand, possible new businesses or new applications. Once the need has been agreed the R&D department attempts to ascertain whether the product is available within the ESAB group. If it is, the principals abroad are contracted for details of formulation and production data. In the event that a group product cannot be identified, then the R&D department of the principals combines with their Indian counterparts for a program for development. After establishing the basic formulation and production data, work on adaptation to Indian condition starts. This adaptation is necessary because of variations in the raw materials and production plant.

The formulations are broken into their basic chemical constituents and on them the chemical composition of the indigenous raw materials is superimposed. Imbalances are suitably adjusted to provide the correct weld metal analysis and welding characteristics of the electrode. Theoretical knowledge and practical experience are essential for doing this. A tentative formula is obtained which is refined through experiment to give the final desired product. The new formulation is first tried on pilot plant and subsequently transferred to production. For successful development and commercialization of a product, marketing and sales, materials management and production departments are all involved. The R&D personnel remain involved till the product is established commercially. R&D must also be involved in manufacturing technology to meet the company’s own demand for improved productivity, quality or to increase manufacturing flexibility.

DIFFICULTIES ENCOUNTEREDWhat has been discussed above works if the situation is ideal? Reality is often different. Some of the major difficulties encountered in actual practice relate to:

Changes in specifications during the development period Failure to achieve the required result by the R&D department Unduly long response time of development Prohibitive cost of product

In the course of development, the customers’ need may change. If such a change is not very major, it may only cause a small delay but in case of major changes, it may mean development in an entirely new direction. Alternatively, the specifications may sometimes be too stringent that it may not be possible to manufacture a new product within the constraints and projected cost. It is also possible that the targets laid down in the guidelines received from the principals cannot be met because of non-availability of specific raw materials at reasonable prices. These are all major handicaps in developing the desired product.

Undue delay in developing a product may result in losing market opportunity for which it was intended. Often development may use costly materials and the finished available product may become more expensive than an alternative product in the market resulting in failure to develop a commercially viable product. All problems and difficulties described above combine into a single problem—loading the interest of the customer. These difficulties can arise in market-led development. However, if development is production-led, many new and good developments never reach the market because they do not satisfy a recognized customer need. In relation to development activity, the following observations of general nature can be made:1. The top management must commit itself (through the company objectives) to render

active support of development of product and technology. Often in times, expenses incurred to development come under the microscope. The commitment of the top management will ensure that in the long-term, investment in R&D activities will pay off handsomely.

2. Development is not a single department’s job. Active involvement from marketing and sales, production and materials management is essential to make the new product reach the customer at right time and at the right cost.

3. Cost of the product plays an important role in the development efforts. This point must be kept in mind from the very beginning. A developer must be conversant with the cost structure of the product.

4. All industrial R&D activities must have commercialization of the development as its goal. Any development will be termed a failure if it does not improve the bottom line of the organization.

5. Many difficulties may be faced during the R&D process, so R&D is assured of a quick and easy success.

6. Guidelines and directions from the principals abroad are only part of the story. Local R&D is important to satisfy local needs and constraints. Appropriate technology is the need for all R&D effort while adapting products and technologies from abroad.

7. ESAB India’s role in future will be to develop the existing techniques and to participate in the research and development of new techniques with a view to maintain its leading position in the field of welding and cutting in the 21st century.

8.

OPPORTUNITIES OF ESAB INDIAIn the international scenario the technological developments are taking place at a very rapid pace. India with its wealth of technical expertise should adopt overseas technological advances for speedy commercial implementation and benefit from them. Such adaptation will hasten the process of industrialization. Indian R&D efforts should be directed initially towards meeting the local needs and overcoming local constraints by suitable adaptation. But finally we must aim to be a world competitive supplier of welding and cutting solutions.

QUESTIONS1. What strategic route ESAB AB followed to become technology leader in the world? What

could be the reasons behind such a route?2. What efforts were made by ESAB AB and ESAB India in the field of product

development?3. How is the R&D function at ESAB India organized? Critically examine.4. What difficulties ESAB has experienced in relation to product development efforts? What

would you suggest to overcome these difficulties? What opportunities are open to ESAB India? How best can it avail of those opportunities?

Assignment C(Objective Questions)

Tick Marks (√) the most appropriate answer

1. Which of the following is NOT a part of Techno ware A) Powered equipment B) Automated machines C) Computerized machines D) Operating ability

2. Info ware consists of all the following EXCEPT A) Describing facts B) Familiarizing facts

C) Repairing abilities D) Utilizing facts

3. Which of the following is NOT very important in managing technology A) Production process B) Product & process design C) Information systems D) Compensation packages

4. Technology management is concerned with all EXCEPTA) Incremental innovation in existing technologiesB) Development of new technologyC) Combining older technologiesD) Procurement of machines similar to the one existing

5. An R& D centre is to be set up whenA) Technology is a competing strategyB) The company uses reverse engineeringC) Subsidy exists for setting up R&D unitsD) A Ph. D qualified person is to be promoted as a unit head

6. Which of the following depict the central role of a corporate R&DA) Development of relevant breakthrough technologyB) Continuous process and product improvementC) Day to day problem solvingD) Engage in basic research

7. All of the following are determinants of productivity exceptA) Effective control over cost and qualityB) Rationalization of work flowC) Training hours spent on staffD) Optimal scheduling of work and material handling

8. A term used to indicate a good match between the technology utilized and the resources required for its optimal use

A) New technology B) Emerging technology C) Appropriate technology D) Codified technology

9. Reverse engineering is also known as A) Experience and design looping B) Design to cost C) Reengineering D) Zero defect production

10. Productivity techniques used to reduce costs of one or more of production inputs by replacing with the cheaper available substitutes is known as

A) Group technology B) TQM C) Factor substitution D) Six Sigma

11. All of the following are characteristics of high technology EXCEPTA) A fast rate of growthB) High ratio of R&D expenditure to sales

C) Very limited marketD) Less educated employees

12. All are reasons for external acquisition of technology EXCEPTA) Firm lets other firms to take big risk before participationB) Technology already developed saves time and costC) Technology that can be handled with existing machines and equipmentD) Doesn’t require recruitment of skilled labor

13. Technology that proprietary to a firm is known as A) Basic technology B) Generic technology C) Key technology D) Appropriate technology

14. Which is NOT an issue in acquisition and absorption of technology from external sourcesA) Difficult to assess the relative merits of technologies which are complexB) Adapting and modifying technologies to local conditionsC) Negotiating technology licenseD) Arranging payment for the technology

15. All the following are technological intelligence capability EXCEPTA) Ability to monitor worldwide technological trendsB) Ability to source technologyC) Ability to get skilled laborD) Ability to mange acquired technology

16. A technology for which research has progressed far enough to indicate its success is known as

A) High technology B) Emerging technology C) Appropriate technology D) Codified technology

17. All of the following are basic constituents of JIT EXCEPTA) Simplification of product designB) Improvement of plant layout design based on flowC) Immediate payment to suppliersC) Making vendors partner to the production process

18. Which of the following is not a characteristic of CIMA) Compatible hardware and softwareB) Paperless office and integrated business systemC) Flexibility of operations and low cost of implementationD) Use of CNC machines

19. Gaurav’s role in his organization is to scan the market and bring new technologies to the organization. His role can be identified as A) Project managerB) SponsorC) Technological gatekeeperD) Entrepreneur

20. The development of new hybrid technologies by combining the capabilities of existing technologies is called

A) TechnovationB) Technology fusionC) Technology intelligence D) Technology push

21. A necessary condition for technological fusion isA) Technological diversificationB) Technological determinismC) Technology codificationD) Technology integration

22. All of the following are part of business alliances in use in Japan EXCEPTA) Exchange of expertise by companies in different fieldsB) Merger and acquisition of companiesC) Alliance among large, medium and small companiesD) International alliances among industries in developed countries

23. Core competence of Sony is A) Capacity to miniaturize B) Optical media expertiseC) Heavy R&D expenditureD) JIT production

24. Japanese companies focus on ___________ rather than resultA) People B) ProcessesC) QualityD) Plans

25. Which of the following is NOT a conducive atmosphere for innovationA) An open decentralized organizational structureB) Ensure that new ideas are not easily killedC) Minimize administrative interferenceD) Tight deadlines

26. Two basic objectives of a national policy relate to the promotion of productivity, innovation and competition on one hand and the facilitation of the firm’s _________ on the otherA) Competitive capabilitiesB) Financial strengthC) AutonomyD) Labor unions

27. Following are reasons for making inventions EXCEPTA) Personal satisfactionB) Solving problems faced in everyday lifeC) Being recognized by othersD) Zeal for charity

28. Neighboring rights does not include A) The rights of performing artists in their performanceB) The rights of producers of Phonograms in their phonogramsC) The rights of broadcasting organization in their radio television broadcastD) The rights of authors in their books

29. The process of ___________ threatens the developing world by appropriating the collective knowledge of the society into proprietary knowledge for the commercial profit of a fewA) LiberalizationB) GlobalizationC) PrivatizationD) Commercialization

30. Which is not a planned channel for technology transferA) Reverse engineering B) Joint venture C) FranchiseD) Foreign Direct Investment

31. The six step ASSETS process does not contain A) Asses current situationB) Specify technology strategyC) Codify technologyD) Select technology portfolio

32. Traditionally intellectual property is divided into two groups. If one is Copyrights, which is the otherA) Agricultural Property rightsB) Real estate rightsC) Industrial Property rightsD) Self expression rights

33. WIPO convention covers all of the following under IPR exceptA) Performances of performing artists, phonograms and broadcastsB) Scientific discoveriesC) Trademarks, service marks, and commercial names and designationsD) Agricultural patent rights

34. A form of networking of institutions and activities for inducting high technologiesA) Technology ParkB) Technology associationsC) Technology groupsD) Technology centers

35. The act of producing or selling a product containing an intentional and calculated reproduction of a genuine trademark is calledA) CounterfeitingB) Cyber squattingC) InfringementD) Copyrights violation

36. When a producer has authorization from an IPR holder to produce goods but exceeds the quantity, the excess goods areA) Illegitimate goodsB) Overrun goodsC) Grey market goodsD) Black goods

37. The term used to protect the rights of an unpublished bookA) CopyrightB) Trademark

C) Service markD) Publishing rights

38. Area not covered by TRIPS agreementA) Trademarks and service marksB) Industrial designsC) Geographical indicationsD) Layout design of manufacturing plans

39. MFM treatment under TRIPS meansA) Mild and fast foreign negotiations with MNC’sB) Treating everyone equallyC) Special treatment to some nationsD) Increasing reciprocity

40. Darjeeling tea has protected its intellectual property rights based on A) TrademarkB) Service markC) Geographical indicationsD) Patents