ENGG 406 ENGINEERING MANAGEMENT

CHAPTER 9 : MANAGING
TECHNOLOGY

Marvill Jun C. Villanueva / May M. Ferry

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 LEARNING OBJECTIVES
1. Understand the role of research and development; and
engineering design process in the product development.
2. Identify technology and innovation management issues
3. Describe the significance of research and engineering
design factors in managing global challenges.

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 NATURE OF RESEARCH & DEVELOPMENT
• Research and development are commonly taken
together under the general term “R&D.”
• To distinguish between them, the National Science
Foundation defined the following terminologies:
• Research, both basic and applied, is systematic,
intensive study directed toward fuller scientific
knowledge of the subject studied.

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 NATURE OF RESEARCH & DEVELOPMENT
• Basic research is a research devoted to achieving a fuller knowledge or
understanding, rather than a practical application, of the subject under
study, although when funded by commercial firms, it may be in fields of
present or potential interest to the company.
• Applied research is directed toward the practical application of knowledge,
which for industry means the discovery of new scientific knowledge that
has specific commercial objectives with respect to either products or
processes.
• Development is the systematic use of scientific knowledge directed toward
the production of useful materials, devices, systems, or methods, including
design and development of prototypes and processes.
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 RESEARCH STRATEGY AND ORGANIZATION
• Design systems and processes that can identify, assess, and
develop technology based opportunities (or protect from new
technology threats). The systems and processes should be able
to sense what is coming.
• Identify communication needs and efficiently turn data into
information so that the right information can be available to
make the best decision in a timely fashion. The current interest
in big data and what it can tell firms is tied to the notion that we
have a lot of bytes of data available because of computer
technology that is not being used effectively or efficiently.
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 RESEARCH STRATEGY AND ORGANIZATION
• Develop employees through training and learning opportunities.
This becomes more critical as the competitive environment for
the organization becomes more dynamic. The management of
technology and innovation requires that all levels of the
organization are involved and that efforts are made to ensure that
employees are allowed to enhance their skills for themselves and
the organization. The more dynamic the environment, the more
important skill enhancement is for the firm and the individual.
• Use good change management processes to help the firm succeed
in introducing newness into the organization.
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 NEW PRODUCT STRATEGIES
Application
First to Market Follow the leader Me too
Engineering
• This demands • This strategy does • In its purest form • This role involves
major expenditures not require a this strategy means taking an
for research before massive research copying designs established product
there is any effort, but it from others, buying and producing it in
guarantee of a demands strong or leasing the forms particularly
successful product. development necessary well suited to
engineering technology, and customers’ needs.
then concentrating • It requires no
on being the research and little
absolute minimum- development, but a
cost producer good deal of
understanding of
customers’ needs
and flexibility in
production.

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 GLOBALIZATION CHALLENGE
• Globalization as defined is a process of interaction and
integration among the people, companies, and governments of
different nations, a process driven by international trade and
investment and aided by information technology.
• This process has effects on the environment, on culture, on
political systems, on economic development and prosperity,
and on human physical well-being in societies around the world.
• Globalization broadly refers to the expansion of global linkages,
the organization of social life on a global scale, and the growth
of a global consciousness.
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 Future Considerations in Engineering and Management

• Continuing computer-based information revolution

• Increasing technological sophistication of society
• International and political considerations in a
shrinking, interdependent world
• Demographic considerations
• Interactions of food, energy, materials, and the
environment
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 Challenges of INDUSTRY 4.0

• Industry 4.0 has been defined as a term for the modern trend
of automation and data exchange in manufacturing
technologies, together with cyber-physical systems, the
Internet of things, cloud computing and cognitive computing
and forming the smart factory.
• characterizes a new stage in the organization and control of
the business value chain, hence, makes it easier for different
industries to automate routine tasks and disrupt the balance
between job tasks completed by humans and those
completed by machines and algorithms.

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 Challenges of INDUSTRY 4.0

What is Industry 4.0?

Industry 4.0, which is

synonymous with smart
manufacturing, is the realization
of the digital transformation of
the field, delivering real-time
decision making, enhanced
productivity, flexibility and agility
to revolutionize the way
companies manufacture, improve
and distribute their products.
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 Challenges of INDUSTRY 4.0
How Industry 4.0 technologies are changing
manufacturing?

Manufacturers are integrating new technologies, including Internet of Things

(IoT), cloud computing and analytics, and AI and machine learning into their
production facilities and throughout their operations.

Smart factories are equipped with advanced sensors, embedded software and
robotics that collect and analyze data and allow for better decision
making. Even higher value is created when data from production operations is
combined with operational data from ERP, supply chain, customer service and
other enterprise systems to create whole new levels of visibility and insight
from previously siloed information.

These digital technologies lead to increased automation, predictive

maintenance, self-optimization of process improvements and, above all, a new
level of efficiencies and responsiveness to customers not previously possible

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 Challenges of INDUSTRY 4.0

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 Challenges of INDUSTRY 4.0

Internet of Things
(IoT) involves physically
connecting devices to the
internet, whereas

digitization is the
process of leveraging
digital technology to
change businesses and
how they run.
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 Challenges of INDUSTRY 4.0
• New business models — the definition of a new strategy
• Rethinking your organization and processes to maximize new
outcomes
• Understanding your business case
• Conducting successful pilots
• Helping your organization to understand where action is needed
• Change management, something that is too often overlooked
• Examination of company culture
• The genuine interconnection of all departments
•
15 Recruiting and developing new talent