Technology Absorption & Acquisition

Submitted by :Shruti Malhotra Krishna Kumar Yadav Sourabh Malhotra Pooja Poply

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.

Phases of technology Absorption

1.Adoption

2.Adaption

3.Absorption

4.Optimisation

 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

 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.

 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.

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

Project stages of technology absorption

PROJECT FORMULATION

TECHNOLOGY IMPROVEMENT AND UPGRADATION

PROJECT EXECUTION

TECHNOLOGY ABSORPTION

TECHNOLOGY ADAPTION

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

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.

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.

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.

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.

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.

Case study on technology absorption

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 equipments in the acquired technology

Technology Acquisition