Technology Management
Technology Management
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Abstract
This paper focuses on the implications of digital technologies (DTs) for the technology
management (TM) discipline. The study explores DT-induced changes through the lens of the
widely used TM framework, where TM is a dynamic capability consisting of activities
developing and implementing technologies as a source for competition. The findings help to
offer an expansion of the TM framework in three major ways: (1) inclusion of orchestration as a
new TM capability/activity, (2) integration of TM activities across multi-modal stakeholder
interactions, and (3) emphasis on the critical role of TM professionals in carrying out TM
activities. The proposed expanded version of the TM framework aims to provide a basis for
future theoretical and applied research to advance understanding of the TM discipline.
I. INTRODUCTION
The digital era refers to the fourth industrial revolution, where organizations use new
general-purpose technologies, including digital technologies (DTs) [1]. The majority of studies
consider DTs consisting of a wide range of information and communication technologies,
including artificial intelligence (AI), robotics, the Internet of things, autonomous vehicles, three-
dimensional (3D) printing, distributed ledger technology, and quantum computing [2]. The use
of new technologies introduces challenges for organizations as a wide range of business
operations are required to manage them effectively. Organizations transform by continuously
changing their value creation, structure, and business model to keep up with DT-induced
changes, which is widely known as “digital transformation” [3, 4, 5].
Recent studies have already started to explore the radical impact of DTs in a few
academic fields, highlighting the need to develop new theories in the digital age [9, 10, 11]. For
example, a management study [8] considers the changes regarding the nature and purpose of
dynamic capabilities due to the ubiquity of new DTs and proposes a “Digital Dynamic
Capabilities theory.” Another study [12] indicates how DTs radically change innovation
management, pointing to the rise of “Digital Innovation Management.” A study by Verganti et
al. [13] explores AI’s influence on the design management discipline in a similar vein.
Inspired by these studies on the impact of DTs on specific academic fields, this paper
explores the implications of DTs for the technology management (TM) discipline. Drawing on
the dynamic capabilities definition used by Helfat et al. [6], TM in this paper is defined as an
organizational capacity to purposefully create, extend, or modify its technology base [14, 15].
a
Dilek Cetindamar is with the University of Technology Sydney, Sydney, NSW 2007, Australia (corresponding author, e-mail:
[email protected])
b
Robert Phaal is with the University of Cambridge, Cambridge, UK (e-mail: [email protected])
That is why when technology base changes through the evolution of technologies, TM also
evolves in parallel to the changes inherently taking place in technologies [15, 16].
Thus, this paper aims to shed light on the following research question: how do DTs
change the TM discipline? To find an answer to this question, it becomes critical to understand
the TM discipline and the nature of DTs. The present study is a conceptual paper like recent
studies trying to grasp the DT-enabled changes in academic fields [7, 12, 13]. The basis of the
study draws on a general TM framework used in the literature [8, 17, 18]. Based on the
framework, we summarize significant DT-induced changes at the macro-level (business
processes) by bringing together evidence from the extant literature. Then, we develop
propositions regarding the implications of macro changes at the micro-level (TM activities)
described in the framework.
Our study seeks to make two unique contributions to the TM literature. First, we offer an
expansion to the general framework to improve our understanding of TM in the digital era. We
suggest its expansion in three unique ways: including a new TM activity, considering multi-
modal stakeholder interactions, and highlighting the role of TM professionals. Second, our study
highlights how many features of DTs allow bundling TM capabilities with greater benefits. This
finding supports the recent studies aiming to expand the dynamic capabilities theory from
observing individual capabilities to a group of capabilities. Our study also has a contribution to
practice in the TM field. We draw the attention of TM managers, researchers, and practitioners to
tackle the challenges of managing DTs, to equip TM professionals better to cope with them by
improving their technical and soft digital skills such as digital literacy.
In the following three sections, the general TM framework will be summarized as a basis
to explore the impact of DTs, leading to the presentation of a set of propositions to advance our
understanding of DT-induced changes in the TM field and a summary of findings, contributions
and limitations of the study, and research avenues for future studies.
The TM framework
The TM discipline has a history of 70 years [19], and Figure 1 shows one of the long-
standing TM frameworks in the literature, which is based on the dynamic capabilities theory [18,
20]. The framework considers technology a resource, representing the technological knowledge that
needs to be turned into products, processes, and services through the TM capabilities. TM
capabilities are dynamic since they help induce change to an organizations’ resource base [14].
Hence, companies achieve sustained competitive advantage through TM [6]. The TM framework
prefers to call TM a set of activities since routines (i.e., repetitive patterns of activity), processes,
capabilities, and activities are apparently used interchangeably [6, 20, 33].
The TM framework argues that TM activities are distributed and embedded in three core
business processes – strategy, innovation, and operations, operating at the macro level in the
firm. Effective TM aims to ensure that technological issues are incorporated appropriately in
these processes to form a coherent and integrated system across and beyond specific business
processes and activities. The framework emphasizes the dynamic nature of the knowledge flows
between the macro-level (processes) and the micro-level (TM activities) [17, 20]. These
knowledge flows appear as a push mechanism initiated by technological changes, technological
changes, or a pull mechanism affected by customer demand.
The generic nature of this framework comes from the fact that it is applicable irrespective
of firm size, scope, industry, and structure. It implicitly assumes managers apply and adapt TM
activities appropriately for the particular organizational context. Furthermore, the model takes
account of the environment where the organization operates, as Figure 2 shows. TM activities of
an organization try to strike an appropriate balance between market ‘pull’ (requirements) and
technology ‘push’ (capabilities) that are operating external to the organization.
Figure 1. The TM Framework
Source: [14]
Technological changes radically affect the management of organizations [1, 16]; thus, it
is no surprise that the general TM framework faces some critical challenges in the digital era
which require research attention. To put it simply, DTs comprise devices (such as smartphones
and sensors), applications (such as computer software and information systems), and
infrastructure (such as fixed-line and wireless networks). The key unique feature of DTs comes
being general-purpose technologies, which refers to having much scope for improvement and
being widely used [21].
Literature highlights the critical characteristics of DTs as follows [5, 9, 12, 22, 23, 24, 25]:
1) Reprogrammability of DT enables many products and services to have flexible and editable
characteristics.
2) Homogenization of data makes it easy to build open and transferable systems.
3) Ubiquity and continuously increasing the use of digital technology provide a continuous
flow of data.
4) Layered architecture facilitates digital products/services by assembling product-agnostic
components from a set of heterogeneous layers (such as devices, networks, services, and
contents) that use standardized interfaces [23].
5) Automation of data generation through many sources, including sensors and machine
learning, increases data availability.
6) Creation of new business models and value propositions relying increasingly on the
provision of services.
7) Speed of development of software and devices requires flexible and agile management
methods.
8) Intensified technological interactions and evolution of host-parasite technological systems,
defined as “relationship of mutualistic symbiosis between a host (or master) technology and
inter-related technologies to satisfy needs and/or to solve consequential problems of
socioeconomic subjects over time.” [9, p.1].
The unique features of DTs deliver many benefits and challenges to companies in using
these general-purpose technologies. These benefits are instrumental in increasing firms’ three
core capacities: openness, affordance, and generativity [26]. Openness refers to open innovation
practices, where DT can help decouple the form and function of products and services,
modularize tasks at granular levels and automate data [26]. These features allow innovators to be
anywhere and still cooperate for digital product and service design and development [2].
Affordance refers to action possibilities or opportunities for action; thus, DT’s realization
depends on how technology is created by different actors [12]. That is why the same digital
artifact, digital platform, or digital infrastructure can lead to different innovations depending on
the user or its context. Generativity refers to the capacity exhibited by DTs to produce
unprompted change through the mechanisms of blending or recombination where many
stakeholders are involved [12]. The designers of components in a layered modular architecture
cannot fully know how the components will be used [16, 23, 27].
Because of these capacities, DT has the power to transform companies and industries on
a large scale [16, 21, 37]. DTs have already created digital transformations across various
industries, particularly healthcare, telecommunications, automotive, banking, and manufacturing
sectors [28, 29]. Digital transformation refers to a process of improving an entity by triggering
significant changes to its properties through combinations of information, computing,
communication, and connectivity technologies [4]. What is different in the case of DTs
compared to other general-purpose technologies such as biotechnology is that DTs create an
ongoing process of using new DTs in everyday organizational life [8, 30]. They enable
innovation practices, improved designs, and new business models and shapes how organizations
create value on the Internet [4]. In other words, DTs continuously offer opportunities for
companies.
In sum, the continuous and rapid DT-enabled transformations exceed any single
organization’s borders and transform simple products/services/industries into complex ones. The
TM field needs to examine the impact of DT on business processes and TM activities to cope
with the impact of DT-enabled transformations on business processes and TM activities.
III. THE NEED FOR THE EXPANSION OF THE TM FRAMEWORK
The continuous and fast transformations induced by DTs bring in numerous macro-level
changes in innovation, operations, and strategy processes that ultimately trigger micro-level
changes in how TM practices are carried. After all, the macro-level changes of processes and
micro-level changes of activities are mutually constitutive and shape each other [32]. Hence, the
following paragraphs summarize findings from the literature showing the impact of DTs on each
process and its consecutive effect on TM. Based on the analysis, we propose an expanded
version of the TM framework to accommodate DTs’ impact and navigate TM professionals in a
digital future.
Innovation
that depends on continued innovation and maintenance of the platform by its owner(s) for
success [33, p.10]. For example, a smart bulb, integrated by sensors, can be connected to other
objects such as Google’s Nest and a smart doorbell. However, more importantly, it could become
part of a security system, turn into a motion-sensing device, and feed live cameras within a house
or a street [34].
This kind of increased connectivity among objects, assets, systems, and people points to a
need for a new TM capability to manage a wide variety of stakeholders [4] or to integrate
multiple stakeholders [13]. We call this an orchestration activity, from [4, p.1395]: “orchestration
activity directed toward the introduction and modification of products; resources and
capabilities; business models. They can be internal (within the firm) or external (across firms,
e.g., through alliances and partnerships)”. In other words, companies’ orchestration ability helps
them be part of a digital product platform [23]. This capability/activity helps firms to create new
meanings for their products and services and to redefine products through an active reshaping of
the product ecology on a real-time basis [12]. One example is Apple’s iOS service system,
shaped and reshaped through distributed tuning involving actions of a network of heterogeneous
actors and artifacts [35]. Hence, we claim that:
Operations
Regarding operations, DT seems to bring three critical changes to the operation process.
First, DT helps to modularize tasks [24]: specifying the details of inputs and outputs of digital
tasks, defining modules of tasks, and building their standardized interfaces. Both modular
architectures and learning algorithms enable organizations to divide, allocate and integrate tasks.
Learning algorithms are already automating administrative coordination by managing task
decomposition and integration [5]. On top of that, the inputs, processes, and outcomes associated
with digital tasks can be tracked and traced at a granular level, along with contextual parameters.
As recent studies point out, working in independent, modular, and mobile arrangements enables
the development of practices that continually construct productive spatial, temporal, social, and
material contexts for work [36]. Second, DT allows the formation of a doubly distributed
organizing logic, defined as [23, p. 730]: “It is doubly distributed because (a) the control over
product components is distributed across multiple firms, and (b) the product knowledge is
distributed across heterogeneous disciplines and communities.” This organizing logic is based on
generativity from the unbounded mix-and-match capability of heterogeneous resources across
layers facilitated by DT. For example, cloud technologies allow the leverage of ubiquitous
availability of a broad and varying range of digital capabilities. Third, DT enables organizational
adaptiveness by providing infrastructure functionality [37]. Adaptiveness results from changes in
business processes that allow the exploitation of diverse opportunities, overcome organizational
and technological boundaries through integrated systems, and deploy new processes such as
cloud-based services. These adaptive capabilities reinforce the flexibility to scale and maintain
organizational resilience to radical changes in markets and technologies.
Changes taking place in operations result in higher performance for TM activities.
Studies highlight how DTs provide the opportunity to continually improve all types of TM
activities’ efficiency and effectiveness through communication platforms and analytic [38]. For
example, DT makes it easy to manage open and transferable systems and increases products and
processes’ flexibility. Similarly, learning drives the dynamic and continuous improvement into
TM. Many DT features help TM practitioners flow knowledge among projects and between
different units and internal or external organizations. Learning activity seems to flourish thanks
to the availability of endless support through big data and AI. In particular, machine learning
speeds up the learning process and turns it into a continuously evolving form [13]. As shown in a
bank in South Africa, continuous learning capability enables a conducive environment for tacit
and codified knowledge to be transferred among peers and external stakeholder involvement
[38].
The dynamic capabilities literature presents many studies showing a linear performance
improvement due to these capabilities, regardless of the category of these capabilities [57]. What
is interesting with DTs that these technologies’ openness and generativity features allow
companies to enjoy the benefits of bringing together capabilities of various stakeholders as a
bundle rather than from isolated capabilities of individual companies per se [6]. In fact, even
individual companies benefit from the synergies of bundling diverse capabilities together at the
company level. For example, an empirical study shows how various manufacturing capabilities
bundle together and improve company performance [58]. It is natural to expect that
collaborations with stakeholders in managing technologies could generate positive outcomes.
Hence, we propose that:
Strategy
Regarding strategy, DTs offer several affordances for the whole strategy process. Some
studies mainly describe digital transformation as an ongoing process of using new DT to enable
an organization’s strategic renewal [8]. Hence, the impact of DT on strategy happens through
decision-making and business models. DT impacts strategic decision-making processes in many
ways. For example, big data analytics “focus on very large, unstructured and fast-moving data”
[39, p. 10], and hence they enable managers to analyze and interpret any digital information.
Technical and analytical advancements in big data analytics enable digital products and services,
and they are also crucial for developing sophisticated AI, cognitive computing capabilities, and
business intelligence [40]. All these technologies collaboratively improve the effectiveness and
efficiency of decision-making for managers.
In terms of business models, DTs expand the horizon of strategy processes to digital
platform-based ecosystems. For example, platform-based strategies require platform leaders to
engage with the design, management, and transformation of ecosystems as conditions change
[39, 41]. The case study of Alibaba shows that platform providers have to mentor, facilitate and
make rules for their platforms to facilitate the engagement of small, medium-sized enterprises as
contributors of platforms [41]. In other words, new business models around platforms need a
high level of strategic effort in terms of communication and coordination with platform
stakeholders. Companies can utilize platforms for their business models since DTs have a
layered architecture consisting of devices, networks, services, and contents. Literature suggests
different platforms ranging from transactions to innovation platforms [33]. For example, a
transaction platform facilitates exchanges of consumers and firms such as eBay, and a digital
transaction platform leverages the knowledge shared by its users, such as Facebook [42]. Many
examples from Apple, Google, and Samsung show how platforms harness technological
affordances to facilitate entrepreneurial opportunity pursuit [34].
The changes in strategy processes highlight the role of TM professionals. Even though
DTs tend to automate and carry out many activities that humans can, there are certain areas
where they need human intervention for several reasons [7]. TM professionals realize daily TM
practices not as simple automata but as innovative interpreters of these practices. Thus, the active
involvement of TM professionals could unfold the affordances and generativity of DTs. As
studies show, there are soft skills that AI algorithms cannot replace. For example, Verganti [13,
p. 225] points out that “an algorithm that has been created to solve a problem cannot refuse to
solve it; it cannot pull the plug (unless this trigger is already incorporated in its code). A human
can. She can avoid to create, if it does not make sense, morally, emotionally, or by intrinsic
motivation.” Discussions on trust, ethics, and fairness are increasingly becoming critical
concerns about AI algorithms [43]. For example, AI algorithms find patterns within datasets that
reflect implicit biases such as gender and, in so doing, emphasize and reinforce these biases as
global truth in employment software [44]. The related problem is that data are becoming
decontextualized, which happens when data comes from many information systems and digital
resources of various kinds [7]. That is why there are efforts to make sense of the data for further
processing and delivering socially meaningful messages based on that data, such as data mining
and explainable AI. However, all these concerns strongly underline the role of humans in
decision-making [5, 59], leading us to suggest:
However, digital skills are not limited to technical knowledge. TM professionals have to
have a wide range of soft skills to know what the technology is, how to use it, when to use it, and
why. One such soft skill is digital literacy, referring to digital knowledge, competence, and
learning needed to carry out daily work using DTs [47, 48]. The expectation is that digitally
literate TM professionals could conceive possibilities arising from DT, put them into use, learn
from interactions to adapt their behavior, and find new ways of using technologies through their
daily practices [32, 45]. That is why studies point out employees’ digital literacy as critical for
organizations during their digital transformations [4, 22, 47].
One final remark about TM professionals is their increased role in working with
stakeholder organizations. DTs allow the immediate exchange of explicit knowledge, but TM
professionals’ soft skills could make a difference working with the flow of tacit knowledge
among stakeholders, improving DTs’ utilization [46]. Accordingly, TM professionals might
develop a “shared digital identity” defined as “the collective self-concept(s) of an in-group
towards the creation, application, development, and emergence of digital technology built on a
sense of community, enthusiasm, being part of something special and common values and
norms” [49, p. 81]. The example of knowledge flow among stakeholders of a digital ecosystem
in the 3D printing industry shows how DTs have managed to form a digital identity among their
employees for effective knowledge flow within the ecosystem.
Figure 2. Expanded TM model in the digital era (three expansions highlighted in bold).
Note: Stakeholders include customers, users, suppliers, competitors, universities, government agencies,
communities, etc.
Source: Authors.
Overall, we offer three expansions to the original model based on the three propositions
respectively:
1) TM activities are expanded with the inclusion of a new process capability, orchestration
(Proposition 1).
2) Stakeholder interactions between organizations are highlighted, outside-in and inside-out.
These two alignments within the framework facilitate TM activities between organizations
through intensive multi-modal stakeholder interactions (Proposition 2).
3) The critical role of professionals in carrying out TM activities is emphasized. Increased
complexity and the continuous nature of DT transformations require more and more
involvement of TM professionals within the organization and outside the organization
(Proposition 3).
Our study further shows that TM professionals are the actors realizing the TM activities
daily as innovative interpreters of practices and DTs. As widely discussed in the management
literature, the critical role of professionals in carrying out strategic activities need to be
recognized [59]. Recognizing their role explicitly could help managers consider sought-after TM
professionals’ technical skills complemented with soft, generic, and transferable digital skills
[15]. Among those skills, digital literacy seems to stand out as an essential skill for all TM
professionals, regardless of their employment status as engineers or managers. This skill makes
the foundation for TM professionals who face more and more challenges related to mindsets that
could align with digital workplaces [5]. TM professionals recognize affordances and capture
them through sensemaking skills. Hence, the management of DT brings forward the critical role
of TM practitioners who could combine their technology and soft skills to align with the
continuous form of DT-enabled transformation crossing the borders of individual organizations.
Further, understanding digital literacy could explicitly give managers a tool to understand
their workforce’s capacity to improve their TM activities. Literature shows that prioritizing
employees’ focus on organizational practices results in innovations [54]. Many work practices in
digital organizations include team-based design, information sharing, aggregate compensation
strategy, flexible job design, and employee training [47]. In order to carry out this kind of
activity, companies need to assess their TM capabilities. Also, they need to understand gaps in
their digital capacities to design and implement their work practices allowing the utilization of
DTs.
First, this paper is a conceptual contribution, drawing from literature and using the lens of
TM practice. The discussion in this paper aims to draw the attention of TM academicians and
TM professionals on how DTs influence the discipline. In the future, studies might be interested
in reinventing TM at the theoretical level, similar to the efforts made in the innovation
management field [12, 60]. However, future studies should specifically conduct empirical
research to assess the changes taking place at digital enterprises and their impact on TM. These
empirical studies could shed light on the complex interactions among DTs’ material
characteristics with their context to shed light on the relationship between DTs and TM activities
[32].
Second, our research has not delved into any specific digital technology. This paper aims
to capture DT-enabled changes at companies as presented in the extant literature, which is highly
limited to general DT discussions [4]. A few studies explore particular technology areas, such as
AI in the entertainment company Netflix [13], cloud technologies [40], and digital three-
dimensional (3-D) [49, 55]. These studies are diverse in nature, and it is difficult to draw out
general implications for the TM field. This gap presents a significant opportunity for TM
researchers to study specific DTs and related changes in TM practice for in-depth studies of
specific DTs. A compilation of these individual technologies might pave the way for
comparisons of findings and enrich their management.
Third, this study adopts a company perspective, with the general TM framework
developed to understand how TM functions within firms [14]. Hence, the analysis and expanded
framework are limited to company settings. However, many organizations such as governments
and universities also run TM activities. Future studies could attempt to understand their practices
and drive new models applicable in various organizational contexts.
Fourth, the paper does not cover all aspects of the implications of DT-induced changes.
Even though the paper briefly mentions some negative impacts of DTs, such as unemployment
and ethics, the paper does not cover the negative impact of DTs in-depth [43, 44]. Another
sensitive issue concerns the impact of DT at the individual level for engineers and TM managers.
Recent studies clearly show the radical changes experienced by employees in terms of identity
and wellbeing [5, 56]. These neglected topics about the broader implications of DT could be
another avenue of research for TM researchers to develop a better and balanced understanding of
the impact of DTs on the TM discipline and its professionals.
Fifth, experience during the COVID-19 pandemic has shown that future workplaces will
become increasingly hybrid in form, where employees will work in independent, modular, and
mobile arrangements. These kinds of highly possible changes enabled by digital technologies
could eventually change productive spatial, temporal, social, and material contexts for work in a
continuous way [29, 36]. However, little is known about the different professional implications
of these transformative practices. Future studies could tackle this field to develop an in-depth
understanding of how the TM profession might change in the digital era.
The final limitation of this research is its focus on digital technologies. It does not have a
comparative analysis of the impact of many general-purpose technologies such as DT versus
nanotechnology. Historical studies in the evolution of technologies many benefits of such
comparative analysis [16]. This line of research could bring nuances in managing specific
technologies and advance the TM field. Future studies could conduct a comparative analysis
based on accumulated examples.
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Dr Robert Phaal joined the Centre for Technology Management at the University of
Cambridge in 1997, part of the Department of Engineering. As a Director of Research,
he conducts research in the field of strategic technology and innovation management.
Areas of interest include roadmapping, the emergence of technology-based industry,
technology evaluation, and the development of practical management tools. Rob has a mechanical
engineering background, with a PhD in computational mechanics from the University of Cambridge in
1990. He is a Chartered Engineer and Member of the IET, with industrial experience in technical
consulting, contract research and software development.