PRICING OF TECHNOLOGY:
CATEGORIES OF PAYMENTS: Payments for the technology may be divided into three broad categories, although in practice an agreement may involve a combination of all three: lump sum payment, royalties and fees.
LUMP SUM PAYMENT:
Lump sum payments are calculated in advance through the agreed sum may be paid in installments. This method may be appropriate where it is desired to obtain the technology by outright purchase. It may also be a means of obtaining the data on a patented process. Traditional reasons for down payment or lump payments are as follows:
Down payment is a transfer cost representing the specific costs borne by the licensor to prepare a “technology package” for the licensee. Costs could arise form preparing drawings, specification lists, operating manuals, on-site training of personnel etc.
ROYALTIES:
Payments are made for the use of all forms of industrial property rights, the ownership rights, the ownership rights of which are established by national statutory law (patent, trade mark, copyright) civil law or international consensus. Royalties may be paid as a percentage of sales value, whether the technology is in the forms of know-how or the use of patented equipment/process of production.
FEES:
Fee for technology which may be remunerated specifically include training, whether in the licensor’s or in the licensee’s works, the position for technical experts required to introduce the technology and fee for expert assistance in the setting up of associated research and development, design and engineering services.
The basic principles of governing the acquisition of technology were:
Import of technology and foreign investment in this regard, were to be continued to be permitted in a selective basis where; need had been established, technology indigenously was likely to delay the achievements of development targets.
Government form time to time, would identity such as areas of high national priority, in respect of which procedures would be simplified further to ensure timely acquisition of the required technology.
Wednesday, January 23, 2008
Technology Transfer
Technology Transfer: It is acquisition and use of knowledge. Basically there are two ways of acquiring new technology.
Develop it or purchase.
Technology Transfer
The important reasons for purchasing technology.
It involves little or no R &D investment.
Technology can be used quickly.
Technical and financial risks are quite low.
Good reasons for selling technology.
Increasing return on R&D investment.
Technology may not have immediate use.
Technologies have been utilized up to its limit.
Therefore technology transfer occurs because if existence of buyers and sellers. The sellers are called transfers or licensors and buyers are called transferees or licensees in technology transfer process.
There is no transfer of technology unless and until the technology knowledge is put to use.
The factor in technology transfer include
· Transplantation of technology
· A sense of opportunism
· Nature of transferred technology how it is transferred is critical to success of technology transfer process.
Models of Technology Transfer:
Research Development
Key entities
Diffusion Adaption
(R&D Diffusion Model)
Need Felt
Application of solution Articulated as
Problem
Choice of Solution Search for solutions
Problem solver Model
Technology Transfer Model:
Adaption
Development Communication Utilization
Technical Transfer Modes:
Technology Base User / Needs Public sectors
Engineering Technology Traffic safety
Communication Transfer Emergency Health
Medicine Modes Crime Prevention
Electronics Public Transport
Energy Preserving Water
(Passive/ Energy conserve
Active/Semi active) Urban constrn
Private Sectors
Structures Industries
Chemicals Agricultural
Materials Mining
Computer
Passive Mode: For the technology is transferred through published literature, manuals, such as television repair manuals and how to guide for home repairs.
TECHNOLOGY BASE TECHNICAL INFORMATION USER
*PRIMARY
INNOVATOR
* PUBLICATIONS FOR APPLN OF
TECHNOLOGY
* COMPUTERISED
DATABASES
* PERSONAL CONTACTS
Semi-active mode: Here the role of technology transfer agents is limited, the agent act as a interpreter or communicator no active participation in the application of technology.
TECH BASE TECH INFORMN TECH TRAN AGENT USER
Active mode: The transferring process is carried out to demonstrate by the transfer agent or the consultant. Agent fully involved and acts as a bridge in technology transfer from enterprise.
TECH BASE TECH INFORMN CHAMPION AND TEAM USER
Horizontal transfer: It implies transfer of technology from one firm to another. Such transfers take place generally between the firms located in different countries, mainly due to reasons of competition and maturity of technologies.
Vertical transfer: It means transfer of technology from an R&D organization to a firm. Such transfers are mostly within the country and technologies are new, and may often require further efforts in terms of establishing commercial viability. Such a transfer involves considerable risk.
DIMENSIONS OF TECHNOLOGY TRANSFER:
· What is actually transferred
· The mode of transfer
· The absorption capabilities of the recipient enterprise.
· The capabilities and motivation of the supplier enterprise and
· The technology gap between the supplier and the recipient.
FEATURES OF TECHNOLOGY PACKAGE:
The technology package consists of three principal elements namely, product design, production technique and management system. The three principal categories of technical information or know-how inherent in technological systems are general knowledge, system specific and firm-specific knowledge.
1) General Knowledge refers to information common to industry such as blueprint reading, tool and fixture design and fabrication, welding techniques etc.
2) Systems specific knowledge refers to information and industrial capability within a firm that gives it a competitive advantage over rival firms. This knowledge and know-how may consist of special solutions or procedures to a problem, acquired in the previous manufacturing experience in related product or process fields.
3) Firm specific knowledge differs from system specific in that cannot be attributed to a particular production item and usually results from the firm’s overall activities in such as gray-iron casting or their material fields.
ROUTES OF TECHNOLOGY TRANSFER:
The principal routes of enterprise-enterprise technology transfer are:
Licensing or franchise: Licensing and Franchise arrangements vary from a complete package of instructions, technical assistance and training to mere permission for the manufacture and sale of a product.
Suppliers of Materials and Parts: Suppliers of materials and parts are often willing to provide a full range of technical support, information and manufacturing know-how, and thy can be as effective in know-how transfer as in industrial licensing arrangements. The manufacturing of color TV sets in India is a classic example of this type.
Equipment Supplier: A variety of technical services are provided by equipment suppliers, including operational and maintenance procedures and even processing know-how . Some technologies are machine based and therefore the know-how is transferred along with supply of plant and equipment.
Outright purchase e.g., of turnkey plants or of complete manufacturing and operating specifications, drawings, know-ho, performance data and technical assistance.
Acquisition of the company or business owning the technology.
Joint ventures with the technology owners.
Franchising of trademarks and technical, management, and marketing know-how.
Combinations and variations of any of the above.
Develop it or purchase.
Technology Transfer
The important reasons for purchasing technology.
It involves little or no R &D investment.
Technology can be used quickly.
Technical and financial risks are quite low.
Good reasons for selling technology.
Increasing return on R&D investment.
Technology may not have immediate use.
Technologies have been utilized up to its limit.
Therefore technology transfer occurs because if existence of buyers and sellers. The sellers are called transfers or licensors and buyers are called transferees or licensees in technology transfer process.
There is no transfer of technology unless and until the technology knowledge is put to use.
The factor in technology transfer include
· Transplantation of technology
· A sense of opportunism
· Nature of transferred technology how it is transferred is critical to success of technology transfer process.
Models of Technology Transfer:
Research Development
Key entities
Diffusion Adaption
(R&D Diffusion Model)
Need Felt
Application of solution Articulated as
Problem
Choice of Solution Search for solutions
Problem solver Model
Technology Transfer Model:
Adaption
Development Communication Utilization
Technical Transfer Modes:
Technology Base User / Needs Public sectors
Engineering Technology Traffic safety
Communication Transfer Emergency Health
Medicine Modes Crime Prevention
Electronics Public Transport
Energy Preserving Water
(Passive/ Energy conserve
Active/Semi active) Urban constrn
Private Sectors
Structures Industries
Chemicals Agricultural
Materials Mining
Computer
Passive Mode: For the technology is transferred through published literature, manuals, such as television repair manuals and how to guide for home repairs.
TECHNOLOGY BASE TECHNICAL INFORMATION USER
*PRIMARY
INNOVATOR
* PUBLICATIONS FOR APPLN OF
TECHNOLOGY
* COMPUTERISED
DATABASES
* PERSONAL CONTACTS
Semi-active mode: Here the role of technology transfer agents is limited, the agent act as a interpreter or communicator no active participation in the application of technology.
TECH BASE TECH INFORMN TECH TRAN AGENT USER
Active mode: The transferring process is carried out to demonstrate by the transfer agent or the consultant. Agent fully involved and acts as a bridge in technology transfer from enterprise.
TECH BASE TECH INFORMN CHAMPION AND TEAM USER
Horizontal transfer: It implies transfer of technology from one firm to another. Such transfers take place generally between the firms located in different countries, mainly due to reasons of competition and maturity of technologies.
Vertical transfer: It means transfer of technology from an R&D organization to a firm. Such transfers are mostly within the country and technologies are new, and may often require further efforts in terms of establishing commercial viability. Such a transfer involves considerable risk.
DIMENSIONS OF TECHNOLOGY TRANSFER:
· What is actually transferred
· The mode of transfer
· The absorption capabilities of the recipient enterprise.
· The capabilities and motivation of the supplier enterprise and
· The technology gap between the supplier and the recipient.
FEATURES OF TECHNOLOGY PACKAGE:
The technology package consists of three principal elements namely, product design, production technique and management system. The three principal categories of technical information or know-how inherent in technological systems are general knowledge, system specific and firm-specific knowledge.
1) General Knowledge refers to information common to industry such as blueprint reading, tool and fixture design and fabrication, welding techniques etc.
2) Systems specific knowledge refers to information and industrial capability within a firm that gives it a competitive advantage over rival firms. This knowledge and know-how may consist of special solutions or procedures to a problem, acquired in the previous manufacturing experience in related product or process fields.
3) Firm specific knowledge differs from system specific in that cannot be attributed to a particular production item and usually results from the firm’s overall activities in such as gray-iron casting or their material fields.
ROUTES OF TECHNOLOGY TRANSFER:
The principal routes of enterprise-enterprise technology transfer are:
Licensing or franchise: Licensing and Franchise arrangements vary from a complete package of instructions, technical assistance and training to mere permission for the manufacture and sale of a product.
Suppliers of Materials and Parts: Suppliers of materials and parts are often willing to provide a full range of technical support, information and manufacturing know-how, and thy can be as effective in know-how transfer as in industrial licensing arrangements. The manufacturing of color TV sets in India is a classic example of this type.
Equipment Supplier: A variety of technical services are provided by equipment suppliers, including operational and maintenance procedures and even processing know-how . Some technologies are machine based and therefore the know-how is transferred along with supply of plant and equipment.
Outright purchase e.g., of turnkey plants or of complete manufacturing and operating specifications, drawings, know-ho, performance data and technical assistance.
Acquisition of the company or business owning the technology.
Joint ventures with the technology owners.
Franchising of trademarks and technical, management, and marketing know-how.
Combinations and variations of any of the above.
Tuesday, January 8, 2008
Technology changes
At the level of technology
1. Technology developers which are firms involved in innovation in their pursuit of competitive advantage.
2. Technology facilitators who provide the resources for financing and executing the innovation efforts.
3. Customers who are interested in fruits of technology development.
4. Regulatory agents, government bodies who shape the firm of products and processes by establishing standards or specifications.
5. Stakeholders who may be the beneficiaries ( e.g. suppliers to the innovating firms ) or victims of technology change ( e.g. Industry become obsolete by technology change )
Technology change – Innovation, Imitation and adoption lies significant learning by firms both individually and collectively. Three ways of learning are:
1. Environmental surveillance through technical and market Intelligence. Technical Intelligence creates awareness within a firm about the availability of scientific and technical knowledge. Market Intelligence creates awareness of customer needs and market potential.
2. Experimentation within firms where by firms can learn problem solving by simulation and by trial and error. Both failures and successes during innovation provides rich avenues of learning about what works and what does not.
3. Imitation through competitive Intelligence means learning from competitors about successful and unsuccessful attempts may enable a firm to learn without investment.
IMITATION Supply side (Competitors )
ADOPTION
INNOVATION
Demand side (Consumers )
INNOVATION means to renew to make new or to alter.
· A technology change new to both enterprise and economy (e.g. PC by Apple )
· A change that has diffused into economy and is adopted by the firm ( adoption of computers by printing firms to typesetting services )
· Innovation refers both to the output and process of arriving at a technologically feasible solution to a problem triggered by a technological opportunity or customer needs.
· Innovation refers to the process by which individuals or organizations arrive at a technical solution
· Innovation refers to a product or service.
COMPONENTS OF INNOVATION:
· A hardware component consisting of the physical aspects of innovation.
· A software component consisting of information based that is needed to use the innovation.
· An evaluation information component consisting of information that is useful for decisions related to adoption of innovation.
PROCESS OF INNOVATION :
Market pull : It is the advancement of technology oriented primarily toward a specific market need and secondarily towards technical performance.
Technology push : It is the advancement of technology oriented toward increased technology performance secondarily towards specific market needs.
CLASSIFICATION OF INNOVATIONS :
INCREMENTAL INNOVATIONS MODULAR INNOVATIONS
Product tech : Microprocessors Product tech : Mobile phones
Process tech : Continuous Improvement Process tech : Quality circles
ARCHITECTURAL INNOVATIONS RADICAL INNOVATIONS
Product tech : Interior decorations Product tech : CDS, Pen drives
Process tech : Just-in-time Inventories Process tech : Robotics in manufacturing
1. Technology developers which are firms involved in innovation in their pursuit of competitive advantage.
2. Technology facilitators who provide the resources for financing and executing the innovation efforts.
3. Customers who are interested in fruits of technology development.
4. Regulatory agents, government bodies who shape the firm of products and processes by establishing standards or specifications.
5. Stakeholders who may be the beneficiaries ( e.g. suppliers to the innovating firms ) or victims of technology change ( e.g. Industry become obsolete by technology change )
Technology change – Innovation, Imitation and adoption lies significant learning by firms both individually and collectively. Three ways of learning are:
1. Environmental surveillance through technical and market Intelligence. Technical Intelligence creates awareness within a firm about the availability of scientific and technical knowledge. Market Intelligence creates awareness of customer needs and market potential.
2. Experimentation within firms where by firms can learn problem solving by simulation and by trial and error. Both failures and successes during innovation provides rich avenues of learning about what works and what does not.
3. Imitation through competitive Intelligence means learning from competitors about successful and unsuccessful attempts may enable a firm to learn without investment.
IMITATION Supply side (Competitors )
ADOPTION
INNOVATION
Demand side (Consumers )
INNOVATION means to renew to make new or to alter.
· A technology change new to both enterprise and economy (e.g. PC by Apple )
· A change that has diffused into economy and is adopted by the firm ( adoption of computers by printing firms to typesetting services )
· Innovation refers both to the output and process of arriving at a technologically feasible solution to a problem triggered by a technological opportunity or customer needs.
· Innovation refers to the process by which individuals or organizations arrive at a technical solution
· Innovation refers to a product or service.
COMPONENTS OF INNOVATION:
· A hardware component consisting of the physical aspects of innovation.
· A software component consisting of information based that is needed to use the innovation.
· An evaluation information component consisting of information that is useful for decisions related to adoption of innovation.
PROCESS OF INNOVATION :
Market pull : It is the advancement of technology oriented primarily toward a specific market need and secondarily towards technical performance.
Technology push : It is the advancement of technology oriented toward increased technology performance secondarily towards specific market needs.
CLASSIFICATION OF INNOVATIONS :
INCREMENTAL INNOVATIONS MODULAR INNOVATIONS
Product tech : Microprocessors Product tech : Mobile phones
Process tech : Continuous Improvement Process tech : Quality circles
ARCHITECTURAL INNOVATIONS RADICAL INNOVATIONS
Product tech : Interior decorations Product tech : CDS, Pen drives
Process tech : Just-in-time Inventories Process tech : Robotics in manufacturing
Technology changes by innovation
TECHNOLOGY CHANGE: INNOVATION
Technology change can be described at two levels. at the level of the individual firm or at the level of the technology.
FIRM LEVEL:
It may be described as four stages in process of problem solving.
1. Problem recognition: Successful technological change begins when a firm recognizes the potential of a technology for new products or process, or when it recognizes a market need that needs to be fulfilled. When technical feasibility dominates design, we call the process as “technology push”. When market demand drives the process we call it “market pull”.
2. Technology selection: During this stage, the firm formulates several design concepts which are based on different technologies that will serve the market needs.
3. Solution development: In case of products, the may involve the development of prototype. In case of process innovation this may finalize a general approach or a blueprint for organizational change. Problem solving may be in two ways. A new solution is formulated within the innovation firm. or A ready made solution is adopted by the firm from outside.
4. Commercialization/Implementation: The economic benefits of an innovation are never fully realized until an item is actually introduced into the market or cost reductions from the process change are achieved.
PROBLEM
RECOGNITION
TECHNOLOGY
SELECTION
SOLUTION
DEVELOPMENT
COMMERCIALIZATION
Triggers Alternatives Mode of implementation Forms of change
Technology change can be described at two levels. at the level of the individual firm or at the level of the technology.
FIRM LEVEL:
It may be described as four stages in process of problem solving.
1. Problem recognition: Successful technological change begins when a firm recognizes the potential of a technology for new products or process, or when it recognizes a market need that needs to be fulfilled. When technical feasibility dominates design, we call the process as “technology push”. When market demand drives the process we call it “market pull”.
2. Technology selection: During this stage, the firm formulates several design concepts which are based on different technologies that will serve the market needs.
3. Solution development: In case of products, the may involve the development of prototype. In case of process innovation this may finalize a general approach or a blueprint for organizational change. Problem solving may be in two ways. A new solution is formulated within the innovation firm. or A ready made solution is adopted by the firm from outside.
4. Commercialization/Implementation: The economic benefits of an innovation are never fully realized until an item is actually introduced into the market or cost reductions from the process change are achieved.
PROBLEM
RECOGNITION
TECHNOLOGY
SELECTION
SOLUTION
DEVELOPMENT
COMMERCIALIZATION
Triggers Alternatives Mode of implementation Forms of change
Technology And Organisation Structure
IMPORTANCE OF TECHNOLOGY MANAGEMENT:
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Importance of Technology management
IMPORTANCE OF TECHNOLOGY MANAGEMENT:
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
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