Technology Audit

by

David P Jasper

INTRODUCTION

Carrying out an audit of all the technology within a company can be a

daunting task, particularly where the company in question is large and
complex and made up of separate subsidiaries and operating divisions in
different parts of the world. The benefits of carrying out such an audit
can be difficult to define in advance. However, the potential uses of the
technologies identified as a result of that audit can include new products,
licensing of products and technology out of the company and technology
transfer within the company. So when the management of this large multi-
national company made its commitment to establish a comprehensive inventory
of existing technologies, all employees were called to action.

More specifically the objective of the audit was to create a private,

computerised data bank of all usable technology in the company, including
current and active technology, obsolete and retired technology and dormant
or partially developed technology. Technology, for the purposes of this
inventory, was defined broadly to include laboratory technology,
manufacturing and production techniques and processes, special measurement
and analysis techniques, know-how in uncommon subjects, uncommon
administrative procedures or systems, unique equipment and departmental
capabilities and unique financial tools or systems. Special note was made
that non-technical 'technologies' such as administration and finance, were
important and valuable assets which were also being sought by this
comprehensive inventory.

EMPLOYEE PARTICIPATION

Management knew that the participation of employees, who through their jobs
were closest to the technologies and who could succinctly describe those
technologies, was crucial to the success of the audit programme. All were
urged to participate - salesmen and secretaries as well as technicians and
chemists; financial analysts and product managers as well as product makers
and engineers - everyone, irrespective of job assignment.

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100 INNOVATION AND TECHNOLOGY TRANSFER

Management also knew that preparing an acceptable technology submission

required extra effort beyond normal job duties. So, to get maximum
participation and interest, an incentive programme was set up whereby
employees could win and accumulate points redeemable for merchandise.

For each technology submitted that was signed and recommended by a

supervisor as technically sound and within the scope of the programme, an
employee would receive certificates worth 100 points. Additional 1,000
point certificates were given for each technology accepted by a Submissions
Review Board, comprised of a group of knowledgeable people with
responsibility for making the final judgement on a submission's
acceptability.

The Technology Audit programme was promoted heavily over a 12 week period
with stories and photo coverage in the company's weekly publication for its
employees; a visual explanation via video tape was made available for
viewing around the world; and all managers were provided with handbooks
detailing the pertinent facts about the audit and suggesting ways to
encourage and assist their employees in their participation.

Overseas companies used additional ways to promote the programme to suit

their specific countries. In Brazil, a writer/editor was charged with
responsibility for helping Brazilian employees prepare their submissions.
Holland and Australia ran separate mini-sweepstakes of their own to
encourage participation. Japan asked a US manager there on business to
conduct a class on how to prepare technology submissions.

THE RESULT

Although the results of the audit programme will be emerging for several
years to come, some comments can be made and some facts revealed.

All objectives set down for the inventory identification were exceeded. The
specific objective of 1,000 reusable technologies was exceeded by 22 per
cent. Participants were widespread throughout the worldwide company,
totalling 868 - almost 400 from overseas subsidiaries. Although technical
people in research and development, whose job it is to work with and create
technology, were understandably the major contributors, assembly workers in
Holland, production engineers in Japan and office staff in England also
became prominently involved in the inventory of technological know-how.

Stories of local teamwork and other evidence told of the positive effect of
the programme on employees worldwide. Australia reported that certain of
its employees formed teams - some members would work at digging out data and
others would specialise in writing the submissions. A US subsidiary
Research and Development manager shared all his old notebooks, making them
available to his people to mine out all the technologies and submit them to
the programme.

Overall, employees earned more than $189,000 in awards and compensation.

Considerable monies were invested, but it was well worth it to the company.
A review of the current technology inventory data base reveals over 200
possible new products, 110 management procedures, 200 production
technologies and 580 chemical and material related technologies.

It is interesting to note that even before the complete inventory was on the
computer data base, several cases of shared know-how or technology transfer
 TECHNOLOGY AUDIT 101
were observed between the subsidiary companies in Canada and England, and
between other groups who had been made aware of the possibilities to reuse
technology. The Canada/England exchange occurred when a technology
submitted from Canada was mentioned in passing to a visiting British
employee who visualised its application in England and then wrote to Canada
for more information. This demonstrates the previous inability of the
company to utilise technology already in its possession, to the best
advantage.

The accepted technologies were entered on the QFT computerised data file by
the technical and business information staff, and will have their impact on
current new products and new technology research through internal cycling,
re-application and through new uses for earlier technology.

CONCLUSION

The initial technology audit was only the first phase of a broader programme
aimed at stimulating the innovative process, expanding the use of present
technology and identifying external technologies for acquisition or internal
technologies for sale - all of which contribute to more effective
application of technology to corporate goals. The success of the programme
has demonstrated that involvement of company personnel in identifying
technologies already utilised within the company can have long term
benefits for other parts of that same company. Although thecosts of the
audit were high, in the medium term, the benefits to the company included
not only a number of valuable new products but a greater awareness within
the company of the value of technology transfer both within and outside the
firm.