Submitted by : NISHA 007

RAJ RAJESHWAR 014

SHASHANK- 018
ABHISHEK RANJAN - 022
CHANDRA ABHISHEK GUPTA-038
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
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:

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.
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
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
corporations technology by another.
Acquisition of technology and knowledge
involves the purchase of external knowledge
and technology
Process
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.
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.
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.

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

MAKE
R&D
COLLABORATE
Joint ventures
Sub-contracting


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


Technology Absorption
Focus is on putting the acquired technology to use; i.e. reaping the
benefits from technology acquired.
Leads to market competitive advantage.
Involves some costs for putting the technology to use and leads to
increase in revenues, improvement in efficiences etc
Succeeds technology acquisition

Technology Acquisition
Focus is on acquiring technology i.e. becoming owner.
Leads to firm specific technological knowledge and advantage.
Requires substantial costs for acquistion of technology
Precedes technology absorption
Technology Absorption v/s Technology
Acquistion

Generally, enterprises / organizations plan for
technology absorption within reasonable time / planned
time as it provides following advantages like early use
of acquired technology and reaping benefits therefrom,
gaining technological competitive edge etc.
Sometimes there could be delays in technology
absorption due to variety of reasons.
Delays in technology absorption could be harmful to the
organization.
Therefore technology absorption needs to properly
managed by the organization.

Management of Technology Absorption
by Organizations
Developing good understanding and mutual
trust between technology transferor and
technology recipient organizations.
Proper, clearcut and well-defined agreement
between technology transferor and technology
recipient organizations
Developing time-bound and target-oriented
schedule for technology absorption
Top management support to the technology
absportion
Organizations take following steps
to manage technology absorption:
Hiring of requisite skilled workforce; if same is not
available, seeking early training of own current
employees by technologists / technicians from the
transferor enterprise.
By actively complying with various government
directives and requirements on technology
upgradation and technology absorption.
Due to variety of benefits of technology absorption,
national governments seek quick absorption of
technology.
While seeking approval to Foreign Technology Transfer
Agreements under the approval route from
Government of India, the technology acquiring
organizations / enterprises are required to indicate and
commit timebound schedule for technology absorption.
This puts pressure on organizations to plan systematic
and timebound technology absorption
Government Guidelines on Technology
Absorption by Organizations


Case Study : Wipro acquires SAIC's
global O&G IT services business


The IT giant has signed an agreement with
Science Applications International Corporation
(SAIC) for the acquisition of their global oil
and gas information technology practice of
the commercial business services business
unit



SAICs global oil and gas information
technology practice provides consulting,
system integration and outsourcing services to
global oil majors with significant domain
capabilities in the areas of digital oil field,
petro-technical data management and
petroleum application services addressing the
upstream segment.

Stronger appeal to clients in the energy industry,
and separation from its Indian provider peers
Wipro is already the largest offshore Tier 1 provider
in the energy and utilities sector in revenue terms,
and the acquisition will provide it with broader and
deeper consulting, technology, and outsourcing
capabilities in the upstream business, and enhanced
service capabilities in areas including digital oilfields,
exploration, and production data management.
Will help Wipro gain capabilities in areas such
as petro-technical data management and
petroleum application services and digital oil
fields.