Wk 2 role of technology

• 1. Evolution By Age of Technology The Creation of Wealth The Evolution of Production Technology The Evolution of Product Technology Technology Role in Organization Technology and National Economy

2. Identify the evolution of technology Explain how technology role important tothe creation of wealth 3. Progress of civilization is frequently identified by thedominant technology of the age The stone age The bronze age The iron age The steam power age The electricity age The nuclear power age The electronics age The aerospace age The information age The biotechnology age 4. Technology generates wealth when it iscommercialized or used to achieve adesired strategic oroperational objective for an organization. Spinning Out Technology 5. Adam Smith (British economist, 18th century) : Economic Wealth (EW) is produced and distributed Argued that capital is best employed for the production of wealth Each nation should produce the goods in which it has absolute advantage Joseph Schumpeter (German economist, 1928) : EW is characterized by private initiative, by production for a market and by a phenomenon of credit He also showed that industrial expansion is also the result of economic forces 6. Meanwhile, many economists determined economicgrowth by the rate of change in per capita real GDP Robert Solow (1987 Nobel Prize in Economics)indicates that technological development will be themotor for EW in the long run Boskin & Lau (1992) indicate that 3 principal sourcesof EW are enhanced capital, labor and technicalprogress U.S National Science & Technology Council (1996)emphasized that technology is the engine of EW. Itreported that performance of individual companies isstrongly linked to their use of technology 7. Other factors that contribute to the wealth-creation systemNatural ResourcesTechnology Market Wealth CreationPublic &LaborEnvironmental PolicyCapital 8. Improvement in productivity is vitally important toan economic system technology is the driver Emerging and new technology spurs economicexpansion known as the long-wave or long economiccycle Betz (1987) suggested that the process behind it is aninteractionbetween technology,businessopportunities the new technology creates and aneventual overbuilding of capital after the technologyages. 9. Discoveries inPhenomenal baseCreates new sciencefor technological products innovationCreating excess Expanding markets Create new marketsproduction capacity& industries Decrease New science &profitability andMay lead totechnology provide increase business depressionsbasis new economicfailures expansion 10. Cutting-edge technology is behind the long wavesof economic activity. High-technology products displace old technologywhen there is a justification for performance overcost. Technology life cycles of industries affect long cyclesin the national economy. New technology comes from science and sciencecomes from new discoveries in nature. A new technology, when created, will began a newwave. 11. Agriculture Society manual labor dominated The Industrial Revolution factory concept was born1880 Scientific Management introduced by Frederick Taylor Times Studies & Mass Production Division of Labor, Labor Unions1880 > Standardization, Assembly Line introduced by Henry Ford Organizational Concepts Motion Study introduced by Frank & Lillian Gilbreth1900 > Piecework 12. Production Control & Management Planning Queuing, Wage Incentive, Management Planning1920 > Statistical Quality Control (SQC) introduced by Deming & Juran Tool Design, Human Factors Productivity, Engineering Economy1940 > Inventory Theory, Layout, Material Handling Computerization, Reliability Operational Research1950 > Statistical Analysis, Network Techniques 13. Automation, System Design, Teleprocessing Information Systems, Decision Theory, Simulation1960 > System Engineering, Optimization Theory Control Theory, Large Scale System Total System Design, Social System, Cybernetics1970 > Behavioral Theory, Personal Computers Technology Revolution Management of Technology1980 > 14. Cotton gin (Whitney)1793 - 1829 Practical Steamboat (Fulton) Steam Powered Locomotive for passengers andfreight Telegraph (Morse), Improved plow (Deere)1830 - 1900 Vulcanized Rubber, Internal Combustion Engine Telephone (Bell), Radio (Marconi) Air Conditioner, FM Radio1901 - 1939 First Flight (Wright Bros.), Model T (Ford) Helicopter, Jet Engine, Liquid-Fueled Rockets 15. Color TV, Electronic Appliance1940 - 1949 Digital Computer, Instant Camera Jet Airliner, Transistor, Supersonic Flight Sputnik 1 (USSR), NASA, Apollo XI1950 - 1969 Integrated Circuit, Operable Laser, Fiber Optics Telstar Satellite, First Man in Space Microprocessor, Recombinant DNA1970 onwards Laser Printer, MRI Scanner, Space Shuttle Scanning Tunneling Microscope 16. 1. Provides SustainableCompetitive Advantage2. Increases Productivity3. Creates Profits 4. Protects from Obsolescence5. Achieves Business-Market Fit 6. Enhances Motivation and Potential of Employees7. Engine of Economic Growth8. Improves Quality of Life 17. Developed economies countries that properly usetechnology for the creation of wealth Less developed economies countries lacking thetechnological know-how necessary to create wealth U.S has the greatest technological edge in the worldbut Japan & Germany have manage their resourcesand technological systems better (achieved economicadvantage) 18. Formulate policies to promote technology Place strategic focus on right technology Build technological capabilities Safeguard interests of society Provide resources Strengthen education and entrepreneurship Set up appropriate legal frame work Establish networks 19. Not the technology itself create the wealth it is theappropriate and effective use of such technology Wealth is created on the basis of technology,production and smart work 20. Proper management of low or medium leveltechnologies can still create a certain competitiveadvantage and be effectively used for wealth creation. Insupport of this point, one can observed the economicgrowth of newly industrialized countries (NICs),particularly those called the tigers of Asia such as Taiwan,Korea, Singapore and Malaysia. These countries havesucceeded in acquiring low or medium level technologiesand have done a credible job in managing technologicalresources. What strategy was followed by that countryto become a competitor? Discussed the points. 21. Strategy that been used to become competitor: 1. Cheaper labor 2. Fewer regulatory restrictions 3. Strategic geographical location 4. Focusing niches where it can prosper 5. Excellent infrastructure 6. Stable currency