Technology management comprises of various tools which include devices for supporting both action/practical application and frameworks for conceptual understanding. Now, the selection of the right technology management tools is highly important to obtain the results you are expecting from your technology management strategy.
Let us have a look at the various tools available with us. Firstly, I will explain each technology management tool in detail. Also, I will also give a quick explanation of the tool and its applications. Finally, I will share with you how to select the best tool/tools for your Technology Management strategy.
What’s in it for me?
Patent Analysis
Explanation:
Often managers & IP (intellectual property) strategists use Patent Analysis. It is used in order to synthesize useful information about companies or sectors in terms of technological competitiveness. They do so by tracing the development trajectory of a particular technology over time. To illustrate, after a specific technology is selected, the number of patents filed under that technology are documented and studied to realize how that technology has developed over time. So, if the number of patents are increasing, that means the technology has potential and the world is interested in that technology. If they are decreasing, then it could be a red flag which means that the technology might not be worth the effort.
Usage:
We can use Patent analysis in the following activities: Acquisition, Identification, Protection. It serves as a key input for the Research & Development managers since the number of patents is a major indicator of technological output of a company. This technology management tool is also widely used by technology companies engaging in Merger & Acquisition activities with the purpose of making the best decision from a technological standpoint. Patents have different laws, validity periods, rules & regulations in different parts of the world. Hence, Patent Analysis is also a vital tool for protecting intellectual assets within the organization. It is also used for filtering patents as per requirements and specializations for licensing decisions.
Process:
These are the steps to be followed:
Patent search: A database of patents from our organisation as well as competitors to be created with accurate of information about the patent, filing date, validity period and information about the filer.
Categorisation: The patents are to be classified and allocated to clusters. Similar clusters shall be labelled as as patent families. The larger the patent family within a company, the more technology a company has.
Visualisation: We must visualize the rich set of information using software such as Aureka or ELK Stack to represent the information. Hence, we can interpret data better and comprehension of data becomes easier.
Data driven decision making: Integration of data into strategic decision making is the prime objective here. Also, we must make informed decisions based on the data, managers are provided from the patent analysis activities.
Example:
In 2000, Siemens a manufacturer of medical devices, acquired Acuson based on Patent Analysis. Acuson had various patents files under the ultrasound technology which was actually the area of interest for Siemens at that time. So, Siemens did a patent analysis from 1995-1999 in the ultrasound technology sector and the results are illustrated in the diagram below.
Portfolio Management
Explanation:
A portfolio is a bundle of projects that are grouped together to facilitated their effective management in order to accomplish the business objectives. It has active usage in financial services industry to define investment mix & policy, matching investments to objectives, balancing risk against performance. Recently this technology management tool is also deemed important in technology management as a dynamic decision process that includes a constant updating and revising of a company’s active new technology projects. This tool comes in handy to tackle the problems of uncertainty and risk when it comes to technology management.
Usage:
Portfolio Management is used in the following activities: Acquisition and Selection. It serves as a key input for the Research & Development managers, Risk Management departments and engineers since it provides the ability to diffuse risk and efforts to come up with an optimal mix of technological investments. This technology management tool not only aids decision making but facilitates efficient utilization of resources for the company.
Process:
These are the steps to be followed:
Individual project analysis: Each individual project is sent through a series of tests including pre-screening, screening, feasibility analysis. The projects then go through calculation on various parameters like the ROI, NPV, etc. with the estimation of their uncertainties as well.
Optimal portfolio selection: As per the rating of each project, we must create an optimal mix of projects to diversify the risk. The motive should be to maximize the value of the portfolio providing balance and supporting the technology strategy of the organization.
Portfolio adjustment: After appropriate resources are allotted to portfolios, some parameters are recalculated and suitable adjustments are made to substantially improve value and reduce risks.
Example:
A company with the aim of tapping into the IoT sector (Internet of things) creates a portfolio of various sub-technologies technology sector and then decides on an optimal mix to endeavour. For example, M2M, Smart Appliances, Smart City projects, etc.
Roadmapping
Explanation:
Industry leaders & government use this technology management tool to support strategy, innovation and policy by proving an extended look at the future of a chosen field of technology from the collective knowledge, imagination & educated estimates of the brightest drivers of change in that field. Also, we represent it as a horizontal funnel sometimes and we apply it to strategy processes. At the beginning, the process is divergent & exploratory. In the middle the process is iterative & focuses on development. On the right side of the funnel the processes are in tight control, efficient and implementation focused.
Usage:
We use Roadmapping in the following activities: Acquisition and Exploitation. Industry leaders use it to map out drivers of innovation in any technology domain. This technology management tool provides an integrating framework which summarizes various strategic elements that align to the organizational goals. The first organization known to use Roadmapping is Motorola.
Process:
We should follow these steps:
Preliminary activity: We have to record success factors, input from all relevant groups namely customers, suppliers, etc. Commitment of leadership from key decision makers is vital in this step. The context of the road map should be distinct and clear.
Development of roadmap: We must document the system requirements, time bound factors affecting each group. The major technology areas that contribute to our system must be specified. Now, we should identify Technology alternatives and then we should choose the most attractive and appropriate technology which has the potential to achieve the targets. Finally, we can record the output in graphical format.
Follow-up activity: Validation of roadmap needs to be done in this step. Also, frequent changes and improvements will ensure that the roadmap is up to date abreast of the recent changes in the market.
Example:
Biko, a bicycle manufacturer has crafted a roadmap for its sector:
S-Curve
Explanation:
Also known as growth curves, S-curves have emerged from an analogy with biological life. In addition, they are also important to illustrate the life cycle of a phenomenon or a new technology in the market. In addition, they describe the adoption and demand of an innovative technology over time. To summarize, they are useful for organizations to take better and data-driven as well as informed decisions. Hence, plotting S-curves is fundamental in forming technological strategies.
Usage:
S-Curve is an important technology management tool which is useful in the following activities: Identification, Selection & Acquisition. As a result, it serves as a key input for the technology managers to determine where the technology stands and what actions should they take. It maps growth and revenue against time so it helps firms in exploitation capabilities. They are useful to analyze the status of the the company’s products & services within the market so the firm can react more quickly to growing markets and take better informed and data driven decisions. They are also useful to identify and forecast advanced technologies. It helps firms evaluate different stages of a technology and also provide the opportunity to gain the first mover advantage within a particular market.
Process:
We ned to follow these steps:
Longitudinal data collection: After deciding on a performance metric, we need to collect longitudinal data for a that particular dimension. The metric can change over time so it is necessary to continuously improve the collection methodology.
Observing evolution & plotting the curve: Depending upon the stage of technology, we must make some assumptions if data is not available at the moment and a potential S-Curve is to be drawn. Remember to update the curve whenever the data is available.
Decision making using the curve: Every stage has its own significance and its own implications for marketers, R&D managers, analysts, etc. Hence, the decisions are based on the life cycle and the market circumstances as well.
Example:
It took Samsung Electronics 9 years to learn and fabricate 64K DRAM (Dynamic Random Access Memory) with the help of Micron. Using S-Curve, it took Samsung Electronics only 2 years to develop and fabricate 1M DRAM independently.
Conclusion:
For your reference, in this table I have summarised the application of all the tools discussed above:
| Tools/ Activities | Patent Analysis | Portfolio Management | Roadmapping | S-Curve |
| Acquisition | YES | YES | ||
| Exploitation | YES | YES | ||
| Identification | YES | |||
| Protection | YES | |||
| Selection | YES |
So, these are the 3 criteria you should keep in mind while selecting the best technology management tool for your organisation:
- The level of standardization of a tool
- The level of knowledge involved in the process
- The accessibility of the tool
To conclude, I would like to say that always choose the technology management tool/tools based on the situation you are in and the goal you want to achieve. Remember, the main aim is to attain competitive advantage from your technology. If you wish to learn more about technology management activities you can check out my blog on Activities in Technology Management.
