Technology Transfer: An Overview

Technology transfer is specific, only occurring when a technology is used in a project. Within this context, we examine the roles involved in technology transfer: the technology supplier the technology user and the technology driver. Older views linked the driver with the supplier (technology push) or the user (market pull). Within the scope of this three-role model, we examine the phases of technology transfer: awareness, education, acceptance and insertion. Companies should structure their technology transfer programs along the lines discussed above and include teams members from all the roles.

Technology transfer is one of the three processes defining technology management. In this report, we will examine it from two perspectives: the roles involved in technology transfer and the phases in which it occurs. These two models form the foundation of technology transfer by answering the questions: Who is involved? What is performed?

What is technology transfer?

Before progressing further, we must answer a fundamental question: what is technology transfer? While appearing to be simple, the term is open to multiple interpretations. A misunderstanding of the topic results in the inability to develop viable, widespread technology transfer programs. Simply stated:

Technology transfer is the process whereby an organization within a company uses a technology to design, produce, distribute or support a product or process.

Let us look at it in some detail. First, it is a process, not an art. Steps, independent of the technology, of the process can be defined. The choice of an appropriate approach is determined by a number of factors such as the technology's maturity, the corporate and organizational in addition to the available resources.

Second, it makes no assumption about the technology. The maturity of the technology can range between a theoretical analysis to a product. It can be hardware, software or a process such as a design methodology. It does not make any assumptions about the source of the technology. The technology can arise in one part of the company and be inserted into another. It can come from the outside the company and used within.

The last element in the definition that requires further amplification is the phrase: used by an organization within a company. This is critical. Technology transfer only occurs when the technology is used. This must occur within an organization, not abstractly throughout a company. Since the eventual goal of technology is the incorporation of the technology into the design, production, distribution or support a product or process, it must occur within a concrete well-defined project undertaken by an organization. The more organizations or projects that incorporate the technology, the greater its leverage and return on investment (ROI). This breadth should have been identified at the time of technology identification.

With this context, we will examine, at a high level, the two models that form the basis for our coverage of technology transfer: the roles involved in the process and the phases that occur within the process

Roles in technology transfer

Technology transfer is usually described in terms of the technology push and market pull models. That is to say, two roles describe the process of technology transfer.

The technology supplier is a representative of the source of the technology. It requires an intimate knowledge of the technology itself, it limitations as well as the effort and resources required for its use.

The technology user is the representative of the user of the technology. It is the individual or organization into which the technology will be inserted.

When the supplier role is dominant, the process is referred to as technology push, as shown in Figure 1. This results in a common situation for research and advanced technology groups. The technology supplier has identified, imported or developed a technology – then it searches for applications. One might say this is a case of a solution in search of a problem. If an appropriate solution is not found, the technology investment is wasted. Thus, considerable effort is expended in identifying these applications. This requires that the technology supplier become a salesperson, a role for which many are ill suited. In many companies, failure to find an application results in the premature death of a technology that could improve a corporation’s profitability.

Figure 1
Technology Push.

When the technology user is the dominant role, it results in market push, as shown in Figure 2. In this case, the user of the technology identifies the need for a technology, then looks for a supplier. In this approach, there is a use for the technology. In fact, it can result in the development of a product road map. While appearing to address the application of the technology, it places technology awareness on the shoulders of the user. If not problem is perceived or the technology user is unaware of the technology, a technology that might also contribute to the success of a company will never see the light of day. There is the added danger that the company will follow, not innovate a liability in today’s market.

Figure 2
Technology Pull

These models are simplistic; they only incorporate two of the three implicit roles that come into play whenever a technology is transferred and managed. They manage technology on a tactical basis. We will examine the latter problem in reports focusing on the development of the corporate technical strategy.

We believe that three, rather than two, roles interact in the technology transfer and technology strategy processes. The first two have been seen in the push – pull models; the latter is new.

The technology driver is the representative of the organization that identifies a use for the technology. This is usually referred to as a technology champion.

In many cases, the technology driver may come from another organization, such as within the marketing function. Other management functions may fill the role of driver. This results in the three-role model shown in Figure 3. All three roles cooperate to leverage the technology to the maximum. Failure to include technology drivers may limit the effective leveraging of a technology.

Rather than requiring the technology supplier or user to identify a need, the technology driver now assumes that role. The two older models remain as degenerate representations of the situation where either the technology supplier (technology push) or the technology user (market pull) is also the technology driver.

Three Role Model
Figure 3

It changes the dynamics of technology transfer from one role being dominant to a dynamic team approach. This, in turn begins the process of formalizing the interrelationships between all segments within a company that have a stake in adopting new technologies.

How is this used practically? First, it indicates that the leadership of technology transfer occurs within a team, not by a single individual or organization. When putting together this technology transfer team, all roles should be represented. Identifying the technology sources and users may be easy; the drivers may be more difficult. It requires thinking about everyone that could be impacted by the technology or would have an interest in its adopting.

When the situation involves including a technology in a product, marketing representatives are required. When considering a productivity improvement tool or methodology, not only include those who will use it, but those who must make plans for the results of a faster development cycle or a more rapid processing of information. Not only will they add to the strength of the argument to adopt the new technology, but will be able to take advantage of the results. As an added benefit, the more representatives of the different roles, especially the drivers, the better received will be the results.

Phases in technology transfer

Technology transfer does not occur at once, but in phases. The first two phases (Awareness and Education) constitute the distribution process, where the potential users understand how the technology can be used. The latter two phases (Acceptance and Insertion) result in the utilization of the technology. In other reports we will examine each phase in detail, examining the techniques that can be applied in each case.

The process of technology transfer is shown diagrammatically in Figure 4. This diagram is, unfortunately simplistic. Issues of awareness are also necessary at the time technologies are identified and acquired. The individuals responsible for developing the technology strategy should reflect the same roles as for technology transfer.

Within the four-phase process, the number of people involved decrease as we move from awareness to insertion. As the process continues, a cycling between education and acceptance results in the individuals becoming closer to the point of insertion addition education of the implementation tools, languages and implementation technologies become necessary.

These are phases, not stages in the process of technology transfer. At any point in time, more than one phase will be active, usually in different parts of the company. It should be viewed as an iterative process. As soon as one organization passes on to the next phase, it should act as a resource for those at earlier phases.

Figure 4
Technology Transfer Process

Awareness
Prior to this stage, potential users are unaware of the existence or the potential of the technology. The goals of this phase are simple: to promote the technology, indicate its potential and begin the process of identifying additional potential users and drivers. In a number of cases, awareness occurs outside the formal, technology transfer process. Many times business publications will feature a technology, bringing it to the attention of management.

Education
Once an individual is aware of the potential of the technology, an understanding of its limitations and the effort required to use it to design, produce, distribute or support a product or process. This injects an element of realism into the process. Different levels of education are required for individuals filling the different roles. Suppliers usually have the deepest knowledge, followed by the users and lastly the drivers. By the end of this phase, all parties will have a realistic understanding of the technology. They will know where and how the technology can be used.

Acceptance
Now comes the marketing. By the end of this phase, at least one organization has accepted the technology into its plans for a new product or process. The relationship between the supplier and the user becomes formalized. Detailed plans, including product road maps can be developed. It sets the stage for the final phase of the process - the sale has been made.

Insertion
This phase is the goal of technology transfer. The technology is actually used in the design, production, distribution or support of a product or process. It is only at this stage that we obtain the benefit of the technology. However, the other phases of technology transfer should not stop while a technology is inserted. This phase can be used to further create awareness, educate and develop a level of acceptance of the technology.

Use of the process model
This process model has two main applications in practice. First, it provides knowledge of the activities required when transferring a technology. At the time the technology was identified (the first stage in technology management), the importance of the technology should have been determined. This included both the breadth of use and the level of importance to an organization in the corporation. With this information, it is possible to identify the techniques and tactics that will be used in each of the four phases. If, for example a technology were expected to have widespread use, a different approach to the awareness phase would be used than if it had limited, but critical applications.

This brings us to its second use. One of the most important measurements in determining the effectiveness of a new technology is its ROI. While a number of factors enter into this calculation, the one usually overlooked is the cost of technology transfer. With the technical transfer plan discussed above, a good estimate or budget for this process can be made.

Action items

In this report, we have examined an overview of the technology transfer stage in technology management. In other reports, we will examine techniques and tools that can be employed in implementing a viable technology transfer program. While ad hoc technology transfer programs can be implemented on a technology-by-technology basis, the construction of an infrastructure to facilitate this process and integrate it with the overall management of the technology is desirable.

The approaches discussed above were derived from personal experience in working with a number different companies in establishing a technology transfer program, either for one specific technology as well as for technology transfer in general. Thus, these models are empirically derived from experience, then placed in a more structured form. They work.

Companies should begin to structure their technology transfer along the lines discussed above. Include within the technology transfer teams members of all the roles identified. By using the process model, it will be possible to create a viable and cost-effective technology transfer program.

Entire contents (C) 1999 by Integrated Business Information Systems Ltd.. (IBIS, www.ibisl.com) All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. IBIS disclaims all warranties as to the accuracy, completeness or adequacy of such information. IBIS shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.

Table of Contents

What is technology transfer?

Roles in technology transfer

Phases in technology transfer

Action Items

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