Technology scouting

From CEOpedia | Management online

Technology scouting is a service performed by consulting companies which consist of searching various sources for technologies potentially beneficial for the company. It consist of:

  • analysing new scientific research
  • identifying emerging technologies in products and processes
  • analysing research trends and publication of research institutions
  • analysing adoption of technology in industry
  • analysing patent databases and innovative activities
  • identifying complementary technologies

Technology scouting is defined as a systematic approach by companies in which they delegate some of their employees or employ new consultants to gather information in the field of science and technology. This information facilitates or implements the acquisition of technology. It is focused on a specific technological area or is not targeted at all. It is based on formal and informal sources of information. Technology Scouting is often seen as the logical response to the enlargement of the technological know-how market caused by the globalization of R&D (Rohrbeck,2007).

Research on the systematic search for current and future technological developments has evolved over time and covers more and more aspects. The identification of technological developments is largely based on weaker signals and aims at detecting technological discontinuity. In the 1970s, this research was conducted as Technology Forecasting and mainly focused on methods of predicting the future using various econometric modelling techniques, mainly using data from the past. Technology Foresight has significantly broadened the scope of research on forecasting technological development in the future. What is new is research into methods by which we are able to create a network of contacts to collect evaluation and interpretation of information. In addition, this technology includes research into how organisations can cope with the future. Techniques of technological forecasting as well as technological forecasting techniques were studied at the company level (Davis, 2005).

The organization of Technology Scouting

In the identification phase, technological scouts are used to gain access to various sources of information about technological development. Technologies that may be important are briefly presented with a technological description, research status and business potential, and are then reported to the Technology Exploration Unit. Both internal experts and external consultants are used as technology scouts. The selection phase consists of two screens. In the first, technologies are selected according to their degree of novelty, and the second screen ensures that the technology is not yet used by the unit to explore the technology. During the assessment phase, technologies are assessed against two criteria: the impact of the market and the complexity of technological implementation (Rohrbeck, 2007).

Examples of Technology scouting

  • Identifying new technology trends: Technology scouting can help identify new trends in the industry and evaluate how they can be applied to the company’s business model. Companies can use technology scouting to identify potential partners, suppliers, and customers.
  • Conducting competitive intelligence: Technology scouting can help companies uncover competitive intelligence. This can include researching competitors' products and services, understanding their strategies and marketing tactics, and monitoring their activities.
  • Researching new markets: Technology scouting can help companies research new markets for their products and services. This can include researching potential customer segments and evaluating the competitive landscape.
  • Identifying potential business partners: Technology scouting can help companies identify potential business partners that can help them expand their operations. This can include researching potential suppliers, distributors, and other potential partners.
  • Evaluating new technologies: Technology scouting can help companies evaluate new technologies and understand how they can be applied to their business model. This can include researching the latest advancements in technology, understanding the potential benefits of new technologies, and evaluating the impact of technology on the company’s operations.

Advantages of Technology scouting

Technology scouting is a service performed by consulting companies which consist of searching for technologies potentially beneficial for the company. The advantages of technology scouting are numerous and include:

  • Increased efficiency - Technology scouting can help a company identify the latest technological advancements that can help them save time, money and resources. This can result in increased efficiency and cost savings.
  • Improved innovation - Technology scouting helps companies to identify the latest technological advancements that can help them create innovative products or services. This can help them stay ahead of the competition and develop new products and services faster.
  • Reduced risk - Technology scouting can help a company identify potential risks associated with a technology before investing in it. This can help them make informed decisions and reduce risk.
  • Increased visibility - Technology scouting can help a company gain visibility into the latest technological advancements, which can help them stay ahead of their competitors.
  • Access to new markets - Technology scouting can help a company identify new markets and opportunities, which can help them expand their business.

Limitations of Technology scouting

Technology scouting is a service performed by consulting companies which consist of searching various sources for technologies potentially beneficial for the company. However, there are certain limitations to technology scouting that must be considered, including:

  • Limited Access to Sources: Technology scouting often relies on external sources such as patent databases, open source inventories, and industry publications, which may not be accessible to all companies depending on their resources.
  • Resource Intensive: Technology scouting can be a time and resource intensive process, requiring dedicated personnel and resources to be effective.
  • Difficulty Evaluating Technologies: Technology scouting can be challenging as it often requires complex evaluation of technologies to determine their potential value, requiring specialized knowledge and expertise.
  • Data Overload: Technology scouting can often lead to a data overload, as there may be too much information to process, making it difficult to identify the most relevant technologies.
  • Expense: Technology scouting can be expensive, as it often requires specialized personnel, resources, and expertise to be effective.

Other approaches related to Technology scouting

Technology scouting involves much more than just searching for new technologies, it also involves assessing potential technologies, understanding their applications and assessing their suitability for the particular business. Other approaches related to Technology scouting include:

  • Evaluating existing technologies: Evaluating existing technologies for their potential to be redesigned or retooled for new purposes.
  • Market research: Analyzing market trends and dynamics to identify areas of opportunity and potential gaps in the market.
  • Industry trends: Analyzing industry trends to identify opportunities for new and innovative solutions.
  • Competitor analysis: Analyzing competitors’ products, services, and strategies to identify areas of opportunity.
  • Patent analysis: Analyzing patents to identify new technologies and gain insights into competitor and industry trends.
  • Networking: Networking with industry contacts and experts to identify new technology and trends.

In summary, technology scouting involves more than just searching for new technologies. It involves assessing existing technologies, market research, industry trends, competitor analysis, patent analysis, and networking in order to identify new opportunities and innovative solutions.


Technology scouting — recommended articles
Opportunity analysis — Distinctive competencies — Innovative research — ASTRA analysis — Technological risk — Competitive risk — Benchmarking - Sources of information — Measurement of innovation — Benchmarking

References

Author: Karina Obiegła

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