Slides of Technology absorption and acquisition

1. Technology Absorption &
Acquisition

2. Introduction
• Technology absorption :refers to the
acquisition, development, assimilation, and
utilization of technological knowledge and
capability by a firm from an external source.
• The transaction occurs between transferring
and receiving organizations.

3. Phases of technology Absorption

4. • ADOPTION:The process under which the
various features of the technology which is the
subject of transfer are suitably modified,
changed or altered keeping in the view the
needs of the buyer.
• The needs of the buyer of technology get
crystallized and the supplier makes suitable
modifications in the technology being supplied
so that it conforms, as far as possible, to the
requirements of the buyer

5. • ADAPTION:It is a phase that takes place after
a technology has been adopted and put into
use in production activities/facilities.
• During this stage, a number of alterations and
modifications to suit the indigenousconditions
are made and they may relate to the use of
raw materials/components manufactured.
• It covers both product modifications as well as
production technology changes, using
indigenous skills as well as local materials.

6. • ABSORPTION:It involves ‘Know-why’ exercises,
basic investigations into the product and or
process and or systems.
• This will require unpack aging of a technology
package.
• It requires R&D projects in know-why,
optimization and improvement of
product/process/systems and related
equipments.

7. • OPTIMISATION:t is the effective savings in the
use of material and energy consumption both
in product and processes which constitute
optimization of technology

8. Project stages of technology
absorption

9. PROJECT FORMULATION:
• Prefeasibility report/project report
• Technology negotiations
• Approvals/clearances with Government
• Foreign collaboration agencies
• Funds from financial institutions
• Land Acquisition
• Clearances from State Govt. and other bodies
for power etc

10. PROJECT EXECUTION:
• Technology Transfer.
• l Design/know-how, experts, training
• l Use of Indian consultants
• l Procurement of equipments, components
and materials.
• l Payments for technology, RM, and
equipments.
• l Project implementation.

11. TECHNOLOGY ADAPTION
• Trial runs
• Debottlenecking /rectifications
• Production based on selective imports of
components/RM
• Indigenization of RM/ components,
equipments.
• Adjust product/process technology to suit
local conditions.

12. TECHNOLOGY ABSORPTION:
• Analyze and unpackaged technology
• Investigate product/process designs and
technology.
• Optimize technology for higher quality and
performance.
• Design; develop components/raw
materials/equipments.
• Use research linkages.

13. TECHNOLOGY IMPROVEMENT AND
UPGRADATION
• Improve product/process designs and technology for better
performance/utilization.
• Use Research linkages.
• Upgrade product/process to reach larger scales/capabilities.
• Benefits of technology Absorption and up gradation
• Repeated collaborations for the same product/process are
avoided.
• Acquisition of further technologies becomes selective.
• Ability is developed to unpackaged technology.

14. • Savings can be affected in foreign exchange.
• l Effective utilization can be made to achieve desired results.
• l Exports are increased.
• l Know-why and technology up gradation capabilities are built
up.
• Technically competent groups of scientists and engineers
trained in technology absorption get matured and
strengthened.
• The base for technological self-reliance is enhanced.
• Product and Process cost saving can be done.
• Increase in sales and profits.

15. Future Thrust for Technology
absorption
• Industry should attempt to obtain best
available technology closest to international
trends and provide R&D at the stage of
project planning.
• Speedy indigenization of raw materials and
components.
• Efforts for unpack aging of tailor-made
equipment in the acquired technology

16. Technology Acquisition
• By Acquisition we mean :The purchase of one
corporation by another, through either the
purchase of its shares, or the purchase of its
assets
• Technology Acquisition : Purchase of one
corporation’s technology by another.
• Acquisition of technology and knowledge
involves the purchase of external knowledge
and technology

17. Process

18. Technology acquisition Process
1. Needs assessment
carefully review the actual situation and
consider the needs for technology
introduction
2. Technology and solutions available :
look for the solutions available on the market.
Industry is proposing various alternatives which
must be considered and selected before
starting the specification work.

19. • 3. Project definition
• scope of the project has to be further studied
and defined.
• 4. Technology specification:
• necessary to draw up a detailed technical
specification which will adapt it to the
identified needs and constraints.

20. • 5. Project organization ;
a Project Management Team has to be
organized and establishedmission must be
defined and objectives specified.
6. Purchasing process
guidelines can be established in order to ensure
that the procurement process is transparent,
fair and comprehensive.

21. • Acquistion Channels

22. BUY
• Sponsoring university research
• External R&D centers
• Consultants
• Licensing agreements
• Vendors/ suppliers
• Acquiring machinery or the firm

23. MAKE
• R&D
COLLABORATE
• Joint ventures
• Sub-contracting

24. The reasons behind technology
acquisition
• Limited resources
• Time pressure
• Complementary assets
• Protecting image
• Diversification
• Supporting internal technologies
• Avoid development risks

25. • Checking the sampling process
• Preparation of questionnaire
• Pilot survey
• Fix procedures
• Use of competent manpower
• Provide information
• Provide training
• Use of experts
• Checking data processing and analysis