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MANAGEMENT OF TECHNOLOGY TO ACHIEVE EFFICIENT PERFORMANCE IN ORGANIZATION

by Dr. Helen O. Aderemi

Head, Technology Innovation and Enterprise Studies Dept., NACETEM, OAU, Ile-Ife, Nigeria

Presented at a National Training Workshop on Technology Acquisition and Management Strategy in the Public and Private Sector held at Lagos Chamber of Commerce and Industry (LCCI), Conference and Exhibition CentreNovember 22 – 23, 2011

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Outline of Talk Introduction Basic concepts: Management,

Technology Management Philosophies Management by Objective Total Quality Management How to Manage Technology in Private

and Public Sectors in Nigeria Concluding Remark

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Introduction

Many managers are aware of the strategic importance of technology in delivering value and competitive advantage to their companies.

These issues are becoming more critical as the cost, complexity and rate of technology change increase, and competition and sources of technology globalise.

The management of technology for business benefit requires effective processes and systems to be put in place to ensure that the technological resources within the organisation are aligned with its needs, now and in the future.

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Management

Management is a combination of strategic vision and leadership capabilities.

Management is the essence of moulding people in an organization into a unified whole that incorporates individual beliefs and values in align with the organizational vision.

As technology, competition, and business environments change managers must be willing to meet the needs of stakeholders and adapt in the every changing business climate.

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t vs T

When you think about the term “technology” do you think of it as:

“The people that run “A way of doing

our computers.” things.”

Tactical Strategic

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Technology Technology can be considered as a specific type of knowledge

(although this knowledge may be embodied within a physical artefact, such as a machine, component, system or product).

The key characteristic of technology that distinguishes it from more general knowledge types is that it is applied, focusing on the ‘know-how’ of the organisation.

While technology is usually associated with science and engineering (‘hard’ technology), the processes which enable its effective application are also important - for example new product development and innovation processes, together with organisational structures and supporting knowledge networks (‘soft’ aspects of technology).

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Technology Cont’d

Treating technology as a type of knowledge is helpful, as knowledge management concepts can be useful for more effectively managing technology

For instance, technological knowledge generally comprises both explicit and tacit knowledge.

Explicit technological knowledge is that which has been articulated (for example in a report, procedure or user guide), together with the physical manifestations of technology (equipment).

Tacit technological knowledge is that which cannot be easily articulated, and which relies on training and experience (such as welding or design skills).

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Technology Management

"Technology management addresses the effective identification, selection, acquisition, development, exploitation and protection of technologies (product, process and infrastructural) needed to maintain a market position and business performance in accordance with the company’s objectives“ (EITM).

Typical concepts used in technology management are:› technology strategy (a logic or role of technology in organization), › technology forecasting (identification of possible relevant technologies for

the organization, possibly through technology scouting), › technology roadmapping (mapping technologies to business and market

needs), technology project portfolio ( a set of projects under development) and

› technology portfolio (a set of technologies in use).

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Management Philosophies

High performance managers have a set of management philosophies at the root of their priorities and decisions. This keeps them focused on achieving results through development of themselves, the team environment and individual team members.

Article Source: http://EzineArticles.com/999219

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Management Philosophies 2

All management behaviour is based on daily, demonstrable, non-negotiable standards, values and ethics.

Leadership skill focus on vision, strategy, values and spirit Management skills target tactical short term development Focus on team development The foundation of employee’s performance improvement is

daily development that addresses their behaviour

Article Source: http://EzineArticles.com/999219

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Management Philosophies 3

Communication between managers and employees become more effective through a collaborative communication style

Develop employees using nurturing relationships Improved employee productivity results in

increased employee tenure and sense of self worth

Article Source: http://EzineArticles.com/999219

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Management by Objectives

Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization.

The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'

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Management by Objectives

The objectives must be clear and achievable, and the plan must include a time frame and evaluation criteria. For example, a salesperson might set a goal of increasing customer orders by 15 percent in Naira terms over the course of a year.

MBO is primarily used as a tool for strategic planning, employee motivation, and performance enhancement.

It is intended to improve communication between employees and management, increase employee understanding of company goals, focus employee efforts upon organizational objectives, and provide a concrete link between pay and performance.

An important factor in an MBO system is its emphasis on the results achieved by employees rather than the activities performed in their jobs.

It is particularly recommended for small firms and businesses.

Read more: http://www.answers.com/topic/management-by-objectives#ixzz1eNcUITlU

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Total Quality Management

TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations.

The practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) include:

cross-functional product design,  process management, supplier quality management, customer involvement, information and feedback, committed leadership,  strategic planning, cross-functional training, and employee involvement

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TQM vs

Servicom in the public sector is actually based on the TQM Principle

It is a social contract between the Federal government of Nigeria and its people.

Servicom gives Nigerians the right to demand good service.

Details of these rights are contained in Servicom charters which are now available in all government agencies where services are provided to the public based on their mandates. 

The charters tell the public what to expect and what to do if the service fails or falls short of their expectation.

Customer Satisfaction is the overriding consideration of service delivery and is broadly driven by five drivers which are given different weightings in the evaluation

Customer Satisfaction Drivers

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Managing Technology in Private and Public Sectors in Nigeria

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1. Have a strategic technology plan (STP)

A technology plan is the single most important ingredient to effectively using technology in your organization.

It is a formal document (usually the outcome of intense analysis) that helps organisation align technology use with mission and strategic goals

It is a process of determining which technologies not yet adopted will have a strategic impact on the company.

The technology planning process will help minimize technology-related crises, use staff time efficiently, and avoid wasting money on equipment. Create a plan to help you think through your priorities in order to use technology in a way that directly furthers your mission.

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2. Actively uses STP to address the technologies needed to fulfil the strategic goals of the organization

the foundation of STP must be the organization's strategic goals

the strategic goals can include those for various departments of the organization.

however, they should be phrased and looked at generically as if they apply to the whole organization (where applicable) for purposes of the STP

the strategic goals can be prioritized? this priorities can be used to prioritize (or one factor in

prioritization of) the implementation of the STP.

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The STP should address all technologies in use in your organization?

A good STP addresses not only each technologies in use but also how they interact and interwork with each other.

An STP that only addresses some technologies, such as only information technologies will still be useful BUT

Will have a narrower scope - Opportunities for better integration organization-wide, areas for better efficiency can be missed, poor funding decisions may be made, duplicate development can occur, and incompatible development can occur.

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The STP should continually be updated

A good STP is a living plan, changing as technologies become available, become implemented & are better understood, and as organizational goals change.

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The STP should drive development funding

An organization that manages technology well uses the STP to prioritize and assign funding for all technology development and related projects throughout the organization.

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All planners should be aware of the STP and follow its guidance, either directly or indirectly

An organization that manages technology well has its planners current with the STP and have them actively use it in developing technology implementation plans.

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The information technology models within the STP should be the basis of all information technology models used for implementation

An organization that manages technology well derives its more detailed implementation models from those within the STP.

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The STP address risks of technology immaturity and poor vendor implementation

An organization that manages technology well assesses the risks associated with each technology and understands the effects if it does not mature at the rate expected.

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Use Auditors to evaluate how well you manage technology

Given that technology is very complex and most executives are not technically knowledgeable enough to evaluate their organization's use of technology,

auditor can be very useful in helping the executive understand their technology and how well it is deployed and where improvements can be very beneficial to the organization.

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Should these auditors report to the shareholders (citizens) the state of technology use in the organization?

Given the effect that technology management has on the organization, the shareholders (citizens) should be informed on how well technology is managed so that they can influence management and make better investment decisions.

Do you know of any organization that has auditors report on technology management today to shareholders?No, but hopefully this will change.

Do you know of any organization that has auditors report on technology management today to executives?No, I personally do not know of any but hopefully there are some today and more in the future.

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Effects of Poorly Managing Technology

Significant Expenses (that could have been avoided)

Poor Technology Integration Failure to Achieve Corporate Goals Competitive Disadvantage with those who do Lack of Flexibility to Adapt Technologies to

new uses/services Inability to Stop bad Projects early Bottom-line impacts of millions to hundred of

millions or billions of naira each year

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The Process of Managing Technology

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Technology Alignment

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any events and communication that provide visibility to the project, add a small amount of value to the company, and give

people a “just-do-it” enthusiasm.

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Mike Gregory’s framework for the technology management process

The process is in five steps: 1. Identification: scan the

market and competitors for potential product ideas2. Selection: pick a technology based on competitive/market analyses, etc.3. Acquisition: turn that technology into a product (R&D, manufacturing)4. Exploitation: develop and sell that product (to bring in revenue)5. Protection: ensure ownership and protect the trade secret

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Managing Technology Process

It’s not necessarily linear, nor is it necessarily circular, and there’s lots of feedback loops happening along the way. But it’s a simple way to break down the technology management process, and it’s something every successful technology company has done at some point.

In my experience, organizations working with appropriate technologies in Africa focus on identification and selection. Sometimes they get to acquisition. Few, if any, get to exploitation.

However organizations that are revenue-dependent, really have to get to exploitation.

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Concluding Remark An organization’s success depends on scale. That’s what impresses the public and/or donors(10

million customers served). Often times people don’t care what you do as long as

you do it well and for lots of people. Very few organizations have a real understanding of

who their market is. They understand their clients are poor, but really

addressing the DESIRES of the poor is a huge challenge that I think few people have really understood.

I have also seen precious little data or analysis on market research for these products.

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Concluding Remark cont’d