Technological portfolio
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Technological portfolio is one of the methods used in the analysis of development opportunities of the company. Development of this method and its raise in popularity was due to continuous development of products, stronger competition and rapidly changing technology. Quick change in technology contribute to the fact that not every product has the time and ability to generate excess financial surplus. Often this causes crowding out products that have the largest market share. In this situation, it is considered appropriate to use portfolio analysis methods.
Technological portfolio is determined on the basis of the position in life cycle of the technology, the degree of attractiveness of future technology and the size of the production potential of the company. It is measured on the basis of the comparative studies of the company and its competition. The criteria for this evaluation are: the possibility of developing the technology, process of dissemination of technology, level of standardization, possibility to use technology in a variety of production fields, or the versatility of the technology, time and cost needed for its development and implementation.
Stages of design of technological portfolio
- the grouping of products according to technology used,
- determine the level of attractiveness of technology,
- to develop a forecast of anticipated technological changes in the industry and related sectors,
- determine the level of production with current technology
- estimation of the level of risk arising from the loss of technological advantage over competing companies
- evaluation of the applicability of specific policies in the enterprise in the field of research and development
The technology is attractive in situations where its application causes a reduction in costs as well as enhance the quality of products. The attractiveness of the technology and its skillful use is the basis for portfolio creation and according to these guidelines, the company can make a variety of decisions, for example: invest in technologies implemented with medium or large mastery, select and reject badly applied technologies. The concept of technological portfolio encourage managers to take action adjusted to the requirements of the market, as well as to cope with the competition.
See also:
References
- Farrell, J. L., & Reinhart, W. J. (1997). Portfolio management: theory and application. McGraw-Hill.
- Luehrman, T. A. (1998). Strategy as a portfolio of real options. Harvard business review, 76, 89-101.
