TEACHER: Hey, Student. Our discussion starts with the outline of two major theories: know-how and can-do.

Technology means understanding the way to do a thing: the know-how. Every industrial venture should have the know-how of a procedure, however easy it may be.

However, to actively take part in the current market, know-how has to be paired with the ability to use the technology, the can-do.

Can-do is essential. A company might have a technical understanding of a given production process, but it cannot employ it without the capacity to execute it efficiently. Can-do includes accessibility to trained employees, capital goods (machines and installations), as well as the capacity to advertise the merchandise.

STUDENT: How can a company acquire know-how?
TEACHER: The fundamental ways to get technology would be:

· Hire employees with experience in the specialty.
· Buy know-how from different companies through technical or license assistance agreements.
· Get it in the maker of technical equipment installed.
· Perform in-house development and research (R&D).

It’s crucial to mention that the requirement of a Technology Strategy.

In most businesses, from a shoemaker to some chipmaker, some Kind of Technology Strategy has to be set up to Remain aggressive and place opportunities

STUDENT: Would we talk as an example of this strategy?
TEACHER: Sure.

Elements of a Technology Strategy

I. Awareness

· A company has to be constantly conscious of the present and forthcoming technology in its area, be it from outside sources or from inside the business. The techniques to achieve this are numerous, from scanning trade magazines to attending trade shows to effectively handling the in-house pool of know-how.

II. Assessment

· Decide which technology can affect the business.
· Measure the potential of those technologies to influence the business favourably or negatively.
· Examine the company’s capability to integrate these technologies efficiently.

III. Implementation

· Maintain a priority program based on possible cost-benefit and viability.
· Organize to allow incorporation of new technologies.

STUDENT: lots of times, regarding an organization’s abilities, one hears about innovation, creativity and invention. Could you elaborate?

TEACHER: Gladly. We have to attempt to define and differentiate between those three activities, which would be the engines of technological change. Of course, the significance overlaps a whole lot, but there are fundamental differences. A company has to be clearly conscious of the differences.

I. Invention means finding something radically new.

· To formulate something in the modern environment is tough and quite costly. An intensive and expensive R&D activity has to be current.
· Many creations happen” before their time” and can’t be implemented profitably in present market conditions. Normally creations carry patent defence, however for a limited period only; a very long delay in the technical program can make this security useless.
· Despite the former caveat, occasionally an innovation may be hit and be exceptionally rewarding. We hear of the with specific frequency from the drug business, carrying recognizable names like Upjohn’s Minoxidil, Eli Lilly’s Prozac or Pfizer’s Viagra. However, it has to be understood that the investment in R&D supporting one or more of these strikes is huge.

II. Creativity is inventing a novel combination of existing practices or technologies.

· A brand new product comprising present components (as the very first Apple computer).
· An original approach to exploit a present technology (as utilizing the Internet to get a brand new support -i.e., a website publishing and promoting”digital books”).
· Creativity can be costly and between a great deal of high tech R&D at sub-technologies (like in creating a quicker, smaller computer processor ) but occasionally it might be economical and incredibly profitable This occurs many times in production when a worker believes in advancement in the manufacturing procedure.

III. Construction can be defined as the rewarding and practical implementation of these ideas originated by creativity or invention; “converting thoughts into significance”. In commercial businesses, the Aim of innovation would be:

· To deliver new profitable services or products to advertise.
· To boost competitiveness through reduced manufacturing price.

STUDENT: As in every part of business, there has to be a demand for handling this creation procedure.
TEACHER: Complex ideas flow always to direction from internal and external resources. Some might be helpful, others maybe not as great. The trick is, to put it simply, to recognize those that the business should invest in and eventually execute.

This stream of ideas must be invited, never discouraged. The origin of ideas is individuals.

STUDENT: A truism, of course. Evidently, machines don’t have thoughts!
TEACHER: Yes, however, a truism often abandoned by direction.

A huge proportion of new ideas comes from internal resources. A worker might have an original concept or might bring an observation he made in a trade show.

STUDENT: What can management do to inspire individuals to donate their thoughts?
TEACHER: Let us see. A Business must:

I. Motivate employees to convey their thoughts. Folks ought to be known for this, whether or not the notion is judged a glowing a dumb one. Nobody should be criticized because of their thoughts; regardless of what management believes of a proposal made by an employee, they need to be praised for the simple truth of communication.
II. Great ideas can come from any area of the provider. The flow of thoughts shouldn’t be restricted to coming from technical sources. An idea of a new product or an expansion of this product line will likely come out of a marketing pro, But a clerk might also have a helpful thought about marketing; after all, he’s also a customer.
III. Ideally, workers should get financial rewards for great ideas which are employed, particularly in the event of proposals coming from individuals not especially employed for this particular purpose like R&D personnel. Leading firms like IBM have experienced this kind of applications set up for a long time and while many workers received considerable benefits, the business profited by employing the thoughts.
IV. Criticism about a brand new idea ought to be postponed. No thought ought to be lost at first sight. There ought to be a systematic strategy to assess suggestions with a formally organized group or committee.