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Technology Readiness Model for Enterprises
Technology Readiness Model for Enterprises
Ercan Oztemel and Tulay Korkusuz Polat Sakarya
University, Engineering Faculty, Dept. of
Industrial Engineering, 54187, Sakarya,
TURKEY eoztemel_at_sakarya.edu.tr,
korkusuz_at_sakarya.edu.tr
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Contents

• Contents
• Introduction
• Technology Management
• Literature Review
• Technology Readiness Model of SERM
• Graphical Representation of TRM
• Technology Elements of TRM
• Weighted Values of Each Technology Assessment
  Elements
• Technology Infrastructure Assessment Matrix
• Case Study
• Conclusion.

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Introduction

• The speed of technological developments are
  rapidly increasing everyday. The enterprises need
  to follow new innovations and new technologies to
  preserve the competitive advantages. There are
  various aspects of technology to be taken into
  account. At each level of the enterprise there
  are technology related decisions as well as the
  use of technologies with different
  characteristics in nature.

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Technology Management

• Technology management and technology transfer are
  the subject of various studies. There have been
  some studies on defining the level of
  technological readiness in enterprises.

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Literature Review 1/3

• Technology and Process maturity model called CE
  which is developed by Karandikar et.al. This
  study was later extended to include collaborative
  Technologies and called CERC. In these models,
  technology maturity and process maturity is
  considered as the key elements of technology
  management. Technological maturity is evaluated
  in terms of information sharing coordination and
  communication. Process maturity on the other hand
  is evaluated with respect to leadership, team
  formation, management systems, products and
  agility. 5 process maturity levels, 3 technology
  maturity levels are defined and enterprises
  evaluated using these levels. Most of the later
  studies are based on this study.

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Literature Review 2/3

• Capability maturity model (CMM) was also
  introduced for assessing the maturity of the
  software systems developed for Ministry of
  Defense in USA. It defines various level of
  technological readiness starting from ad-hoc use
  of technology and follows the stages given below.
• Applied technology,
• Standard and consistent technology,
• Reliable technology
• Continuously improving technology.
• Although there does not seem to have much
  implemented, this model could be extended to
  other areas.

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Technology Readiness Model 1/2

• One of the main deficiencies of these models was
  that, technology assessment was mainly based on
  information focused analysis. Some basic issues
  such as technology portfolio, technology
  forecasting, technology requirements analysis,
  technology change rates, technology innovation
  etc. seem not to be explicitly evaluated.
• Technology assessment module which is proposed
  here is developed to fill this gap.
• This model can be called as Technology Readiness
  Model (TRM).

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Technology Readiness Model 2/2

• Note that the proposed technology readiness model
  is a part of Strategic Enterprise Resource
  Management (SERM) methodology (Figure 1 shows the
  SERM model).

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Strategic Enterprise Resource Management (SERM)
SM Strategic Management CFA Customer Focused
Activities TM Technology Management PM
Performance Management MRP Material Requirements
Planning HRM Human Resource Management MRP-II
Manufacturing Requirements Planning ERP
Enterprise Resource Planning CRP Capacity
Requirement Planning RCCP Rough-cut Capacity
Requirement Planning
Figure 1 Components of Strategic Enterprise
Resource Management (SERM)
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TRM

• The TRM checks the technology in 3 different
  levels mainly, strategic, tactical and
  operational. At each level, the technological
  elements have different values weighted in an
  overall scale. Figure 2 shows the technological
  readiness area with respect to these levels. The
  shaded area shows the technology readiness area
  of a particular enterprise. Sectoral
  possibilities of technological readiness are also
  shown in the figure where the outer triangle
  shows the ideal case.

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Graphical Representation of TRM
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Technology Elements of TRM 1/4

• To be able to measure each level, four technology
  elements is introduced. These are
• A- Knowledge and information baseline where the
  following capabilities of the enterprise is
  evaluated. They can be considered as sub
  components.
• Management Information System And Data Processing
  
• Agent Based Applications
• Return of Investment
• Enterprise Resource Planning
• Databases
• Software
• Technology Knowledge Management
• Technology Identification and Selection

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Technology Elements of TRM 2/4

• B - Technologic Infrastructure where the
  following is evaluated.
• Technologic Suitability and Position Map
• Automation
• Communication Networks
• Information Networks
• Services
• Machine park

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Technology Elements of TRM 3/4

• C - Strategic Baseline where the following is
  evaluated.
• Strategy Development
• Technology Portfolio
• Technology Prospect /Forecasting
• Technology Transfer And Adoption
• Technology Change Rates
• Technology Innovation
• Technology Scenarios And Roadmaps
• Technology Creation
• Disruptive Technologies

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Technology Elements of TRM 4/4

• D - Management Baseline where the following is
  assessed.
• Technology Categorization and Planning
• Technology Risk Management
• Human Resource Planning
• Technology Requirement Handling
• Technological Investment and Capital Management
• Cost Management
• Quality Management
• Technologic Competitors Analysis

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Weighted Values of Each Technology Assessment
Element

• The relationship weights of these components and
  organizational technology levels as described
  above is given in Table 1.

Table 1 Weighted values of each technology
assessment element
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TRM
Each sub component of technology assessment
element is evaluated using several criteria.
Table 2 shows an example of a subcomponent and
its assessment criteria. The weights of Table 2
are defined through the same procedure of applied
for Table 1.
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Technology Infrastructure Assessment Matrix
Table 2 Technology infrastructure Assessment
matrix
Technology readiness assessment matrix for each
component of TRM is designed as similar to the
one described in Table 2. During the technology
assessment process, the enterprise is evaluated
taking all technology related issues into account
based on the components and criteria as described
above.
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Case Study 1/4

• The proposed Technology Readiness Model is
  applied to a hypothetical company for the proof
  of concept. The implementation in a real company
  is yet to be organized. The work along this line
  continues. The company in question is evaluated
  with respect to each technology, elements,
  related components and criteria. Table 3
  indicates the results of evaluation on technology
  infrastructure. Similar tables were defined for
  the other components as well. Underlined numbers
  in each row of the matrix in Table 3 indicates
  the technological level of particular components
  possess by the company. For example, the company
  has a machine park which is sufficient enough
  regarding the machine life cycle.

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Case Study 2/4
Table 3 Assessment of technology infrastructure
for a specific company
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Case Study 3/4

• Similar to the technological infrastructure,
  other components were also assessed for the
  company specified. Table 4 shows the over all
  results of the assessment.
• Table 4
• The overall technology assessment

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Case Study 4/4
Based on the results presented in Table 4, the
technology readiness area of this particular
company can be given as in Figure 3.
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Conclusion 1/2

• Measuring the technological assessment is one of
  the main concerns in technology management
  activities of the enterprises. The technology
  readiness model proposed in this study is
  intended to provide a systematic approach to
  measure the level of technological readiness of
  the enterprises. The proof of concept study
  produced encouraging results. The study continues
  in seeking the right weight values and applying
  the model in a real company.

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Conclusion 2/2

• Note that the model can be implemented in both
  Small and Medium Enterprises (SMEs) and big
  companies provided that business specific
  modifications can be made. These modifications
  can be done using artificial intelligence
  techniques such as expert systems. However neural
  networks can be used to define the weight
  factors. The technological readiness levels can
  be calculated and some remedies can be provided
  sing expert systems as well. Agent technology can
  be utilized along this line. The study will be
  extended for creating intelligent technology
  readiness and technology managements.

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Thank You Very Much Questions ?
Ercan Oztemel and Tulay Korkusuz Polat Sakarya
University, Engineering Faculty, Dept. of
Industrial Engineering, 54187, Sakarya,
TURKEY eoztemel_at_sakarya.edu.tr,
korkusuz_at_sakarya.edu.tr