Month: August 2022

Management Notes

Job Specification, Meaning, Need, Features, Components, Challenges

indiafreenotesby indiafreenotes2

Job Specification (JS) is a written statement that defines the Minimum qualifications, Skills, Knowledge, Experience, and Personal attributes required to perform a specific job effectively. Unlike a job description, which outlines duties and responsibilities, job specification focuses on the person who will perform the job. It typically includes details such as educational qualifications, technical skills, work experience, communication ability, physical requirements, and personality traits. Job specification helps HR in recruitment, selection, and training by providing a clear benchmark for evaluating candidates. It ensures that only suitable individuals are chosen for a role, thereby enhancing efficiency, reducing turnover, and aligning employee capabilities with organizational needs.

Need of Job Specification:

  • For Recruitment and Selection

A job specification is vital in recruitment and selection as it defines the minimum qualifications, skills, and experience required for a role. It guides HR managers in screening applicants by matching their profiles with job needs, ensuring only suitable candidates proceed to the next stage. This saves time, reduces hiring errors, and improves the quality of new hires. Applicants also benefit by understanding whether they meet the eligibility criteria before applying. Thus, job specifications make the hiring process more systematic, objective, and effective, ensuring the right person is selected for the right job.

  • For Training and Development

Job specifications help in identifying skill gaps between employee capabilities and job requirements. By outlining the qualifications, technical skills, and personal attributes needed, HR can design targeted training programs that bridge these gaps. Employees also understand the competencies they must acquire for career advancement. This ensures training resources are effectively utilized, aligned with organizational goals, and focused on enhancing performance. Moreover, job specifications provide a basis for developing succession planning strategies, ensuring future leaders are equipped with the right skills. Overall, they play a crucial role in employee growth, capacity building, and organizational development.

  • For Performance Appraisal

Job specifications are important for performance appraisal because they provide clear benchmarks of skills, knowledge, and competencies required for a role. Supervisors can evaluate employees by comparing actual performance with expected abilities and attributes outlined in the JS. This helps in conducting fair, transparent, and objective appraisals. It also identifies areas where employees may lack specific skills, guiding future training and development needs. Furthermore, it supports decisions related to promotions, rewards, and career progression. By ensuring alignment between employee competencies and job requirements, job specifications make performance evaluations more reliable and growth-oriented.

  • For Compensation Management

Job specifications assist in determining fair compensation and benefits by highlighting the qualifications, skills, and efforts required for a job. Positions that demand higher education, specialized skills, or extensive experience can be compensated accordingly. This ensures fairness, maintains internal equity, and supports external competitiveness in the job market. Job specifications also help avoid wage discrimination and comply with labor laws by establishing objective criteria for pay decisions. Linking compensation to skill and knowledge requirements motivates employees to upgrade their capabilities. Thus, job specifications provide a rational basis for structured, transparent, and equitable salary administration.

Features of Job Specification:

  • Focus on Candidate Qualifications

A Job Specification details the essential qualifications a candidate must possess to perform the job successfully. It moves beyond the duties listed in a Job Description to outline the specific human traits required. This includes must-have credentials like educational degrees, professional certifications, and licenses. By clearly stating these non-negotiable prerequisites, it serves as a primary screening tool, ensuring only candidates who meet the baseline criteria are considered, thereby increasing the efficiency and focus of the recruitment and selection process.

  • Outline of Required Skills and Abilities

This feature provides a precise inventory of the necessary skills and abilities. It differentiates between hard skills (technical, teachable capabilities like software proficiency or data analysis) and soft skills (inherent interpersonal traits like communication, leadership, or problem-solving). It also includes physical and sensory abilities essential for the role, such as lifting requirements or visual acuity. This clarity helps recruiters accurately assess resumes and guides interviewers in formulating questions to test for these specific competencies, ensuring a candidate can not only do the job but also fit its practical demands.

  • Emphasis on Experience

The Job Specification explicitly defines the type and amount of experience required. It specifies the number of years needed in a particular field or role and, crucially, the kind of relevant experience that is valuable (e.g., “experience in a fast-paced retail environment” or “hands-on experience with CRM software”). This sets a clear benchmark for evaluators and helps candidates self-select, ensuring that those who move forward in the process possess the practical knowledge and proven track record deemed critical for immediate contribution and success in the position.

  • Basis for Objective Selection

By converting job requirements into measurable and objective criteria, the Job Specification minimizes subjective hiring biases. It provides a standardized checklist against which all applicants can be fairly evaluated and compared. This objectivity is vital for legal defensibility, demonstrating that hiring decisions are based on bona fide occupational qualifications (BFOQs) rather than personal preferences. It ensures fairness, promotes diversity by focusing on relevant criteria, and helps the organization select the most competent candidate based on a pre-defined set of skills and qualifications aligned with the job’s needs.

  • Tool for Career Development and Training

While used primarily for hiring, a well-crafted Job Specification also serves as a foundational tool for employee development. By outlining the ideal candidate profile, it reveals the skills, knowledge, and experience valued by the organization. This allows current employees to identify competency gaps and pursue targeted training or professional development to prepare for future roles or promotions. For managers, it provides a clear framework for guiding career conversations and creating individualized development plans that align an employee’s growth with organizational needs.

  • Legal and Compliance Framework

A Job Specification strengthens an organization’s legal compliance by grounding hiring criteria in job-relatedness. It helps justify employment decisions by proving that requirements are essential to job performance, which is a defense against claims of discrimination. It is particularly critical for outlining the physical and mental demands of a job, which is necessary for complying with disability laws and engaging in the interactive process for reasonable accommodations. This documented, objective standard ensures the organization adheres to equal employment opportunity (EEO) principles throughout its recruitment practices.

Components of Job Specification:

  • Educational Qualifications

Educational qualifications are a key component of job specifications, as they define the minimum academic background required for a position. This may include school, college, or professional degrees, as well as specialized certifications. For example, a finance role may require a degree in commerce or accounting, while a technical role may demand engineering or IT qualifications. Educational requirements ensure that candidates possess the basic theoretical knowledge needed to perform job tasks. Clearly stating these qualifications helps HR filter out unqualified applicants and ensures that only capable candidates with the required academic foundation are selected.

  • Work Experience

Work experience is another crucial component, as it specifies the practical exposure and industry knowledge required for the job. It includes the type of experience (e.g., sales, management, technical) and the duration (e.g., 2–5 years). For higher-level jobs, prior leadership or decision-making experience may also be required. This component ensures that candidates can apply theoretical knowledge in real-world situations and handle job challenges effectively. Stating experience requirements also helps organizations hire employees who are ready to contribute immediately, reducing the need for extensive training. Thus, it ensures competence, efficiency, and a better cultural fit in the workplace.

  • Skills and Abilities

Skills and abilities form a central component of job specifications, as they outline the technical, analytical, interpersonal, and communication skills needed to perform a role effectively. For example, computer proficiency may be essential for IT jobs, negotiation skills for sales roles, or problem-solving ability for managerial positions. Abilities may also include leadership qualities, adaptability, teamwork, and decision-making capacity. This component ensures that candidates are not only academically qualified but also capable of applying their knowledge practically. By clearly listing required skills, HR can evaluate candidates more objectively and ensure a match between organizational needs and employee competencies.

  • Personality Traits and Attributes

Job specifications also include personality traits and attributes required to succeed in a role. These may cover attitude, behavior, emotional intelligence, leadership qualities, discipline, honesty, and teamwork. For example, customer service roles may require patience and empathy, while managerial jobs may demand leadership and decision-making qualities. Physical attributes such as stamina, vision, or fitness may also be included depending on job demands. These traits ensure that candidates not only perform tasks but also align with organizational culture and values. Highlighting personality attributes in job specifications helps in selecting well-rounded employees who contribute positively to workplace harmony.

  • Physical Requirements

Physical requirements are an important component of job specifications, especially for roles that demand strength, stamina, mobility, or specific health conditions. They include aspects like height, weight, vision, hearing ability, physical fitness, and endurance, depending on the nature of the job. For example, defense, police, or manufacturing jobs may require strong physical fitness, while desk-based roles may only need basic health standards. Stating physical requirements ensures that candidates are capable of performing job duties safely and effectively. It also helps employers comply with occupational safety standards, reduces workplace risks, and ensures overall efficiency in physically demanding roles.

Challenges of Job Specification:

  • Risk of Unrealistic or Inflated Requirements

A major challenge is the tendency to create an “ideal candidate” profile that is unrealistic. Hiring managers may inflate requirements, demanding more years of experience, higher educational degrees, or a longer list of skills than the job truly necessitates. This creates a barrier to entry, artificially shrinks the talent pool, and can lead to prolonged vacancy periods. It also increases the risk of discriminating against capable candidates who could learn the role quickly but don’t meet every exaggerated criterion on paper.

  • Perpetuating Unconscious Bias and Lack of Diversity

Job Specifications can inadvertently embed bias into the hiring process. Using language or criteria that favor a particular demographic background, or requiring credentials from specific institutions, can systematically disadvantage diverse candidates. Over-reliance on traditional qualifications like prestigious university degrees can overlook skilled individuals with non-linear career paths or equivalent experience. This challenge threatens diversity and inclusion goals and can limit the organization’s access to innovative talent from varied backgrounds and perspectives.

  • Balancing Specificity with Flexibility for Potential

Focusing too rigidly on a narrow set of specific skills and experiences can cause recruiters to overlook high-potential candidates. This approach fails to account for transferable skills, cultural add, and learning agility. A candidate might lack a specific software proficiency but possess exceptional problem-solving skills that would allow them to master it quickly. An overly strict specification prioritizes a perfect match on paper over a candidate’s potential to grow and bring fresh ideas, potentially causing the organization to miss out on exceptional talent.

  • Keeping Pace with Evolving Job Roles

In fast-changing industries, the skills required for a role can become obsolete quickly. A Job Specification created one year ago may no longer reflect the current technological landscape or business needs. The challenge is to ensure these documents are regularly reviewed and updated. Failure to do so results in hiring candidates with outdated skill sets, creating immediate skill gaps that require extensive training and hindering the organization’s ability to remain competitive and agile in a dynamic market.

  • Legal and Compliance Risks of Poor Wording

Inaccurate or poorly worded specifications pose significant legal risks. Listing requirements that are not “Bona Fide Occupational Qualifications” (BFOQs) can lead to claims of discriminatory hiring practices. For instance, specifying “recent graduates” could imply age bias, or stating physical requirements not essential to the job’s core functions could violate disability acts. Ensuring every criterion is justifiable, relevant, and non-discriminatory requires meticulous drafting and constant vigilance to comply with evolving employment laws, making it a complex legal challenge.

Management Notes

Meaning and Role of HR Analytics

indiafreenotesby indiafreenotes1

HR analytics, also known as people analytics, involves the application of data analysis methods and statistics to human resources data to improve employee performance and retention, enhance hiring processes, and optimize the overall workforce contribution to business outcomes. By systematically analyzing data on recruitment, performance, employee satisfaction, and other HR-related metrics, organizations can identify trends, predict future HR needs, and make evidence-based decisions. HR analytics helps in uncovering insights that can lead to better decision-making, strategic HR planning, and a more efficient and effective workforce, ultimately contributing to the achievement of organizational goals.

This method of data analysis takes data that is routinely collected by HR and correlates it to HR and organizational objectives. Doing so provides measured evidence of how HR initiatives are contributing to the organization’s goals and strategies.

Common examples of HR Analytics:

  • Employee Churn:

Overall turnover in an organization from existing employees leave to new joiners hired.

  • Time:

Time consumed in recruitment, training sessions, building team, engaging employees, etc.

  • Capability:

Core competencies of the workforce are measured to assign roles and responsibilities.

  • Culture:

Organisational culture is considered for actionable insights and metrics

  • Capacity:

Determine operational efficiency of employees on basis of evaluation factors

  • Leadership:

Know the leadership style of managers and other seniors for HR Analytics.

Benefits of HR Analytics for Human Resource Management

HR analytics offer many benefits for human resource management, including:

  • Better hiring decisions

With more data to drive hiring decisions, companies can potentially choose better candidates and reduce their employee turnover rates. Companies with low turnover rates can create a rich, positive company culture, reduce workplace errors and make assimilation into the business easier for new candidates. With an abundance of accurate, informative data, companies can choose the best candidates for every position and minimize the expenses of high turnover rates.

  • Improved training

By compiling HR data, the company can revisit its training process to learn what methods work well to provide better support for new employees and determine what practices or methods it can discard. The initial training process is a critical time period for a new employee because it details their work responsibilities and their role in the business. With a more comprehensive training program based on positive historical trends, the company can create a better training process to better prepare new employees to succeed in their positions.

  • More efficient hiring process

Efficiency in the hiring process helps save the business time and money and simplifies onboarding for both HR and new employees. The company uses historical data that it compiles over time to identify positive trends in the hiring process in order to focus resources on those trends and minimize challenges. For example, a company using HR analytics might determine that the application portal on its website is a challenge for new candidates because it needs an update. Resolving this issue can make the hiring process easier and simpler in order to attract the right people to the company.

  • Better employee insights

HR analytics also help companies gain better, more informative insights from employees within the business. Often, employees have a good understanding of how the internal structures of the business operate and may offer better insight into challenges and positive aspects of the business. By focusing resources on HR analytics, companies can extract important insights from the people who know the work environment best, which may drive future company policies and innovation and impact company culture.

  • More positive company culture

Better hiring and training can help new employees develop a positive mindset about the company and its culture. New employees might feel more welcome or confident in their abilities, which can increase their willingness to involve themselves in the company culture and help them find their place within the organization. A positive, supportive company culture can have the added benefits of increased collaboration and teamwork in employees, which can drive innovation in products and services.

  • Increased Workplace production

With more data driving better hiring decisions and a positive company culture, businesses might benefit from an increase in workplace production. Happy, fulfilled employees might have a better attitude about contributing work and ideas to the organization, therefore increasing their motivation and driving production. Higher production can result in an overall increase in revenue for the company.

Types of HR Analytics

  • Advanced Reporting

Advanced reporting differs from operational reporting in that it occurs more frequently, and the company may automate the process with analytics software or other AI tools. Advanced reporting examines the relationships between certain variables to determine possible outcomes or explain current outcomes for company actions or trends. This helps the company identify new trends and overcome the challenges of historical trends with new sets of data.

  • Predictive analytics

Predictive analysis is the most advanced level of HR analysis, but can produce beneficial results and even reduce costs and time commitments for common personnel challenges. Predictive analyses use historical trends to produce predictions for the future and create strategies to address them. This analytics process typically pairs with strategic analysis to create a stronger system for predicting, addressing and measuring HR data and trends.

  • Operational reporting

Operational reporting is the foundational level of HR analytics. At this level, the company studies events from the past that might have influenced the company’s current position or policies. The company compiles historical data about personnel, production, company culture and other aspects of human resources to determine if current policies meet the company’s needs or if changes are necessary to keep the company aligned with its objectives.

  • Strategic analytics

Strategic HR analytics help the company develop better strategies for addressing specific challenges. It can use this data to identify and eliminate negative trends before they develop into larger, more complex challenges.

For example, if the HR department is measuring employee turnover rates, they can learn what might affect the suddenly increasing rate of turnover. Once they identify potential causes, they can form strategies based on accurate data to address the turnover rate and prevent it from rising again.

Management Notes

Impact of Globalization on Indian Businesses

indiafreenotesby indiafreenotes0

Globalization in Indian businesses refers to the integration of the Indian economy with the global market, allowing free flow of goods, services, capital, and technology. It has opened new opportunities for Indian companies to expand internationally, attract foreign investment, and adopt modern practices. While it boosts growth, competitiveness, and innovation, it also brings challenges like increased competition and the need for constant upskilling and modernization.

Positive Impact of Globalization on Indian Businesses:

  • Increased Foreign Investment

Globalization has significantly boosted foreign direct investment (FDI) in India. With economic liberalization in the 1990s, India opened its doors to multinational companies, leading to increased capital inflow. This investment helped build modern infrastructure, advanced technology, and create employment opportunities. Foreign companies established joint ventures, subsidiaries, and partnerships, providing Indian firms access to global markets and expertise. Sectors like IT, telecommunications, automobile, and pharmaceuticals saw tremendous growth. Overall, globalization has transformed India into an attractive investment destination, enhancing productivity, improving standards, and integrating Indian businesses more deeply with the global economy.

  • Access to Global Markets

One of the most notable benefits of globalization for Indian businesses is access to international markets. Indian companies can now export goods and services across the world, boosting revenue and reputation. The IT and software services sector, in particular, gained global recognition, with firms like TCS, Infosys, and Wipro serving clients worldwide. Market expansion beyond national borders reduced dependence on the domestic market and diversified risk. Additionally, globalization encouraged Indian businesses to meet global quality standards, improving overall product and service excellence. This international exposure has strengthened India’s position in the global business landscape.

  • Technology Transfer and Innovation

Globalization facilitated the transfer of advanced technologies from developed nations to India. Through collaborations, joint ventures, and foreign partnerships, Indian businesses gained access to modern machinery, processes, and knowledge systems. This exposure enhanced operational efficiency, innovation, and competitiveness. Industries such as manufacturing, pharmaceuticals, and agriculture adopted new techniques to improve productivity and reduce costs. Globalization also encouraged investment in research and development, helping businesses to innovate and cater to global consumer demands. As a result, Indian companies have become more technologically adept, fostering a culture of continuous improvement and global benchmarking.

  • Improved Quality Standards and Efficiency

With the entry of global players into the Indian market, local businesses were pushed to improve their quality standards to stay competitive. This competitive environment encouraged Indian firms to adopt international best practices in production, customer service, and management. Certification standards like ISO became common, ensuring consistency and excellence. Businesses streamlined operations, reduced wastage, and optimized resources to enhance efficiency. These improvements not only benefited customers with better products and services but also helped companies reduce costs and increase profitability. Thus, globalization led to a more disciplined, efficient, and quality-focused business environment in India.

  • Employment Generation and Skill Development

Globalization has played a vital role in generating employment in India, especially in sectors like IT, BPO, manufacturing, and retail. The rise of multinational companies and outsourcing opportunities created millions of jobs for skilled and semi-skilled workers. Additionally, globalization led to skill development through corporate training programs, exposure to international work cultures, and increased emphasis on English and technical skills. Youth across India, including those in smaller towns, benefited from these opportunities. As a result, the workforce became more competent and globally employable. This socio-economic upliftment has contributed to India’s emergence as a global talent hub.

Negative Impact of Globalization on Indian Businesses:

  • Increased Competition for Local Businesses

Globalization brought global brands and multinational corporations into India, intensifying competition for local businesses. Small and medium enterprises (SMEs), which often lack resources, technology, and global exposure, struggle to compete with well-established international players. These global firms offer better quality, branding, and pricing due to economies of scale. As a result, many local businesses have either shut down or suffered reduced market share and profitability. This tough competition has led to the decline of traditional industries, crafts, and indigenous products, affecting the livelihoods of many small business owners and workers dependent on them.

  • Threat to Domestic Industries

The liberalization of trade allowed an influx of cheap imported goods into the Indian market, especially from countries like China. These low-cost products often outprice locally manufactured items, harming domestic industries such as textiles, toys, electronics, and handicrafts. The imbalance in trade affects local production and can lead to shutdowns, job losses, and reduced investment in indigenous industries. Over-reliance on imports also makes the Indian economy vulnerable to external shocks. While consumers may benefit from cheaper goods, the long-term impact on domestic production capabilities and economic self-reliance is a serious concern.

  • Cultural Erosion and Consumerism

Globalization introduced Western lifestyles, values, and consumer behavior into Indian society. As global brands, media, and entertainment became widely accessible, there has been a gradual shift in cultural preferences and consumption patterns. Traditional Indian products, foods, attire, and values often take a backseat to global trends. This cultural erosion affects Indian businesses rooted in local traditions, including artisanal crafts, ayurvedic products, and ethnic fashion. Moreover, globalization promotes consumerism and materialism, leading to increased spending and a shift away from sustainable practices. It creates a homogenized culture, threatening India’s rich cultural and economic diversity.

  • Job Insecurity and Labor Exploitation

While globalization has created jobs, it has also led to job insecurity and labor exploitation. Many multinational companies operate in India to benefit from low labor costs, often offering temporary, contract-based, or low-paying jobs without proper social security. Workers, especially in unorganized sectors, face long hours, poor working conditions, and limited legal protection. Automation and outsourcing further threaten job stability in traditional industries. Additionally, globalization encourages a “hire-and-fire” model, affecting the mental and financial well-being of workers. This growing job insecurity undermines the long-term stability and inclusiveness of the Indian labor market.

  • Unequal Growth and Regional Imbalance

Globalization has led to uneven economic development in India. Urban centers like Bengaluru, Delhi, and Mumbai have become major beneficiaries of globalization, attracting investment and development. In contrast, rural and backward regions continue to lag behind, lacking infrastructure, opportunities, and access to global markets. This urban-rural divide has widened income inequality and led to large-scale migration to cities, putting pressure on urban resources. Small towns and villages often miss out on the benefits of globalization, resulting in social and economic disparities. Addressing these regional imbalances is essential for inclusive and sustainable growth.

Management Notes

Digital transformation in Indian business

indiafreenotesby indiafreenotes1

Over the past three decades, India has experienced immense change in just about every aspect of life. GDP per capita has soared, literacy is up, life expectancy is higher than ever, and the country’s digital economy is booming.

It is expected that consumer spending will double by 2025 and eCommerce penetration will increase by a factor of five, creating an ideal environment for exponential growth. Reports show FinTech Investments in India almost doubled to US$3.7 billion in 2019, up from US$1.9 billion the previous year. This pegs the country as the world’s third largest FinTech hub, behind the US and the UK.

Accessing the growth opportunity that India represents requires deep understanding of a diverse, dynamic economy and a culture that is both ancient and cutting-edge, as well as the latest regulatory and payments environment.

The Government of India launched the National Strategy for Artificial Intelligence (NSAI) in 2018. Also, it launched its flagship project, namely Digital India. The objective of these moves was to transform the landscape of digital technology in a way that it could be integrated with businesses.

Following the outbreak of the Covid-19 pandemic, India started advancing towards achieving its digital transformation goals faster. This has been possible due to an improvement in the country’s digital infrastructure amid a series of subsequent lockdowns to curb the pandemic.

Acknowledging the significance of AI and digital technology, many technology and business leaders have embraced them. This trend is likely to gain traction in the coming years.

Whether one thinks of the Internet or digital technology, both have improved speed and connectivity due to innovation. At present, they are indispensable for business organizations as well as consumers. They are likely to remain valuable assets to business organizations in the future.

India’s rapid digital transformation

India’s digital transformation was jumpstarted by ‘Digital India’, a campaign launched by the Indian government in 2015 aimed at ensuring the country’s citizens are connected through high-speed networks and can access a robust digital ecosystem. The economic rationale behind this campaign is clear; research from McKinsey states that digitisation can create 65 million new jobs by 2025 and add US$1 trillion to the economy. This is a very positive indicator for global companies who are looking to build digital businesses in India.

Digital payments and FinTech are now a big part of life for many of the country’s 1.35 billion people, with 52% of the country adopting some form of FinTech. 99% of the adult population is part of the Aadhaar digital identity system and 60% of that population is under the age of 40. With an estimated 750 million smartphone users you can see how far India has travelled in its rapid digital transformation, providing a strong environment for many digital businesses.

Despite these impressive numbers, digital payments can still increase on a massive scale as a large part of the population has not fully adopted digital payments yet. If you look at eCommerce, it accounted for 3% of consumer spending in 2020, compared to 21% in the US. It is clear that despite India being a huge market and growing fast, it is still early days and entering now can lay the foundation for future growth.

High Barriers to entry

The opportunities India has to offer are huge but changing regulation and rapid developments in the digital and payments landscape can be challenging, making India a difficult market to enter. Every online business hoping to make a successful entry to the Indian marketplace should be aware of these.

Even global multinationals have tried to crack India’s unique market with mixed fortunes. Some, like Amazon, eBay, Uber, McDonalds and Tata group have successfully identified and adapted to the trends and requirements of a hugely multi-faceted country and populace. Others however have struggled to make headways on entry, or even withdrawn altogether as they did not adapt their strategy to the local culture.

To succeed in India, it takes a deep appreciation of hundreds of sub-cultures and demographics. From a payments perspective, it also means understanding that local payment methods are the norm, not the exception. Therefore, offering the full range of payment modes that consumers are accustomed to alongside what are traditional payment methods in other parts of the world will be essential.

India’s unique payments ecosystem

Traditionally India has been a high-cash economy. However, in 2008, the Reserve Bank of India and Indian Banks’ Association set up the National Payments Corporation of India with the goal of migrating to a less-cash economy. The obvious replacement for cash was debit cards and since mobile phone use is so widespread, phone-based payments and eWallets.

Amongst NPCI’s many payments innovations, is the widely used Unified Payment Interface (UPI), which allows instant payments through a variety of services, including PayTM, PhonePe, Amazon Pay, Google Pay and WhatsApp pay. The impact of UPI has been immense and in February 2021, India’s UPI system crossed 2.7 billion transactions with over 100 million users, merely three years after its launch. UPI now fulfils more than half of all digital transactions in the country. The Indian government is exploring launching the UPI app internationally.

Similarly, NetBanking is a local Indian Real-time Bank Transfer product. With this solution, consumers with an account at one of several banks are able to pay for their online purchases via an online bank transfer.

RuPay, another NPCI initiative, essentially functions as an alternative to Visa and Mastercard, providing credit and debit cards, contactless payments, QR code payments and is used in nine other countries.

Equally, another great ‘must have’ for online businesses is the ability to swiftly, securely and seamlessly repatriate revenues, enabling the cross-border settlement of funds in the referred currency such as EUR, USD or GBP.

Management Notes

Impact of changes in Technology on Business

indiafreenotesby indiafreenotes2

Technology has revolutionized the way companies conduct business by enabling small businesses to level the playing field with larger organizations. Small businesses use an array of tech everything from servers to mobile devices to develop competitive advantages in the economic marketplace. Small business owners should consider implementing technology in their planning process for streamlined integration and to make room for future expansion. This allows owners to create operations using the most effective technology available.

  • Impact on Operating Costs

Small business owners can use technology to reduce business costs. Basic enterprise software enables a firm to automate back office functions, such as record keeping, accounting and payroll. Mobile tech allows home offices and field reps to interact in real time. For example, field reps can use mobile apps to record their daily expenses as they incur them and have them sync automatically with accounting software back at the office.

  • Impact on Customer Outreach

Thanks to social media and the internet, reaching consumers is easier than ever. Using a do-it-yourself website tool and various social platforms, even the newest small business can post content that helps interested customers find them. Instead of paying third parties for advertising in print or electronic media, today’s businesses are in charge of their own customer outreach. The result is a reduced cost that levels the playing field between large corporations and startups.

  • Securing Sensitive Information

Business owners can also use technology to create secure environments for maintaining sensitive business or consumer information. Many types of business technology or software programs are user-friendly and allow business owners with only minor backgrounds in information technology to make the most of their tools and features.

  • Improved Communication Processes

Business technology helps small businesses improve their communication processes. Emails, texting, websites and apps, for example, facilitate improved communication with consumers. Using several types of information technology communication methods enable companies to saturate the economic market with their message. Companies may also receive more consumer feedback through these electronic communication methods.

Technology also improves inter-office communication as well. For example, social intranet software gives employees a centralizes portal to access and update internal documents and contracts and relay relevant data to other departments instantly. These methods also help companies reach consumers through mobile devices in a real-time format.

  • Increased Employee Productivity

Small businesses can increase their employees’ productivity through the use of technology. Computer programs and business software usually allow employees to process more information than manual methods. Business owners can also implement business technology to reduce the amount of human labor in business functions. This allows small businesses to avoid paying labor costs along with employee benefits.

Even fundamental business tech can have a major impact on employee performance. For example, by placing employee-performance appraisal information in an online framework, supervisors can easily create measurable goals for their employees to reach and sustain company objectives. Business owners may also choose to expand operations using technology rather than employees if the technology will provide better production output.

  • Broaden Customer Bases

Technology allows small businesses to reach new economic markets. Rather than just selling consumer goods or services in the local market, small businesses can reach regional, national and international markets. Retail websites are the most common way small businesses sell products in several different economic markets.

Websites represent a low-cost option that consumers can access 24/7 when needing to purchase goods or services. Small business owners can also use internet advertising to reach new markets and customers through carefully placed web banners or ads.

  • Collaboration and Outsourcing

Business technology allows companies to outsource business functions to other businesses in the national and international business environment. Outsourcing can help companies lower costs and focus on completing the business function they do best. Technical support and customer service are two common function companies outsource.

Small business owners may consider outsourcing some operations if they do not have the proper facilities or available manpower. Outsourcing technology also allows businesses to outsource function to the least expensive areas possible, including foreign countries.

Management Notes

Impact of the Natural environment on business

indiafreenotesby indiafreenotes1

The physical environment is an essential component of the business environment in which you intend to operate or in which you already run your business, irrespective of whether it’s conventional or online, small or big. It refers to the availability of resources that you need to run your business efficiently. These resources may generally include, among others, inputs like materials, services, land, climate, water, physical plants and facilities. Every business needs these resources to get started or have its work done efficiently and effectively.

Your physical environment comprises both natural and artificial resources. Features like land, water, climate, wildlife, and vegetation are natural components of the physical environment where we live and operate our businesses. On the other hand, dams, roads, premises, and many others are unnatural resources that affect your business.

Natural factors such as climate, soil, forests, minerals, rivers and ocean have tremendous influence on the functioning and growth of commerce and industry. The impact of natural environment of business may be described under the following heads:

  • Mainstay of Agriculture: People and business both require several types of agricultural items for their survival and growth. Agriculture largely depends on nature. Cultivation of crops and raising of livestock are directly dependent on soil. The types of crops that can be grown in an area depend upon climate and soil.
  • Source of Raw Materials: Natural and physical environment provides the raw materials required for the functioning of industries. For example, iron and steel industry cannot function without ore and other necessary minerals. In fact, the mines, flora, fauna, land mass, nature of soil, etc. serve as the basis of production function.
  • Location of Industry: Heavy industry has to be located near the source of raw materials. For example. India’s iron and steel industry is concentrated in the regions which are rich in the deposits of iron ore and coal. Extractive industries such as mining, oil drilling, stone quarrying, etc. depend on the availability of minerals deposited by nature. Industrialists don not like to set up factories in areas which are climate affect the location of certain industries like cotton textiles and watch manufacturing.
  • Foreign Exchange Earner: A country can export its surplus natural resources like minerals and oils and thereby earn valuable foreign exchange. Arabian countries have become affluent by exploiting their oil resources gifted by nature. In fact the genesis of international trade lies in the natural environment. Trade between nation is the outcome of geographical differences. Due to natural factors some regions are more suitable for production of certain goods, e.g., tea and coffee in India, Petroleum in Middle East, dairy products in Denmark and so on.
  • Employment Generation: Existence of minerals and other natural resources alone does not guarantee economic prosperity of people. Proper exploration and utilisation is necessary. Exploitation and utilization of natural resources provides jobs to millions.
  • Demand Pattern: Demand pattern depends upon topographical and weather conditions. For example, jeeps may be in greater demand than cars in hilly areas with a difficult terrain. Similarly, woolens are in demand in cool areas while coolers and air conditioners are more in demand in high temperature regions. Natural environment may also call for modifications in product mix, packaging and storage systems.
  • Basis of Transportation and Communication: Business depends upon transportation and communication facilities which in turn are largely dependent on geographical factors. Uneven land surface, deserts, oceans and forests are barriers in transportation and communication, Though modern technology has enabled man to overcome these barriers, the costs increase tremendously. Even today business activities do not flourish in areas which by nature lack efficient transportation and communication systems.
  • Key to Human Life: Business can prosper only when people are healthy and happy. Nature serves not only as a store house of raw materials, it also provides the physical and biological conditions within which people can live in a healthy and happy manner. Almost every commodity which we consume and produce has existed originally in the natural environment. Nature is also the source of almost all the energy used in production and distribution. Nature has is a symbiotic link between man and nature. In fact, earth is so crucial to mankind that out Vedas and seers suggest worship to the Mother Earth.
Management Notes

Meaning and Nature of the Physical environment

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The business environment refers to the set of conditions or forces that affect the functioning of the business. They may be outside or inside the organization.

Understanding the nature of the business environment and their changes is a vital part of business analysis and in designing competitive strategies. That’s to make sure the company has the right success strategy, not only now but also in the future.

The physical environment for a business is the material objects that are used for a business. For instance, a business may be located in an office building with tables and chairs, or it may consist of a factory that makes products. All of the things that are in the area are part of the business physical environment.

The natural environment or natural world encompasses all living and non-living things occurring naturally, meaning in this case not artificial. The term is most often applied to the Earth or some parts of Earth. This environment encompasses the interaction of all living species, climate, weather and natural resources that affect human survival and economic activity. The concept of the natural environment can be distinguished as components:

  • Complete ecological units that function as natural systems without massive civilized human intervention, including all vegetation, microorganisms, soil, rocks, atmosphere, and natural phenomena that occur within their boundaries and their nature.
  • Universal natural resources and physical phenomena that lack clear-cut boundaries, such as air, water, and climate, as well as energy, radiation, electric charge, and magnetism, not originating from civilized human actions.

When planning international marketing activities, the possible impact of the physical environment should take into account. For example:

  • Population distribution will be affected by topography (i.e. a country’s rivers, mountains, deserts, etc.) and climate people tend to settle where the climate is temperate, and there is an adequate supply of water.
  • Certain climatic conditions may dictate adaptations to the product some glues and oils, for example, will not function in very cold climates.
  • Climate should also influence the arrangements made in respect of packaging (in the marketing context) and protective packing for the purposes of safeguarding the product while it is in transit or in storage. Products which are particularly vulnerable to climatic conditions are those that are adversely affected by extremes in temperature or excessive humidity changes (fruits being transported to hot climates or across the equator, for example).
  • Abnormal weather conditions (e.g. typhoon season in Asia) can disrupt the transportation of export products while unforeseen changes in the weather can threaten companies which produce seasonal goods.
  • Topography will influence the routing of goods and the choice of transport mode, which in turn will affect cost and thus impact on the price offered to the buyer.

Physical Environment

The way you design your business and display your merchandise can elicit different physical and emotional responses from consumers. For example, a small boutique tastefully designed with eye-catching displays and the smell of complimentary, fresh-brewed tea in the background can create a warm, comfortable physical environment. A crowded, noisy retail center with long lines, weary customers and jam-packed aisles can make consumers feel nervous, anxious and eager to leave.

Comfort Levels

Physical comfort determines emotional responses from consumers. A fast food restaurant with uncomfortable chairs and paper napkins, for example, may make a customer want to get in and get out as quickly as possible. An elegant restaurant with plush seating, candlelight and soft music is more likely to prompt customers to relax and enjoy themselves. The physical environment, in this sense, is directly and positively linked to the customer experience.

Perception of Value

The way a business is maintained can influence how the customer perceives the value of the products and services it offers. For example, a clothing store that features crowded racks of similar styles of clothing and plastic hangars promotes the idea of a low-quality bargain items. The same clothing displayed on back-lit mannequins wearing accessories can change the perception and add value — even for an identical product. Clean stores and businesses show management takes pride in the company, while a poorly maintained physical environment may cause customers to suspect the company’s commitment to quality.

Sensory Elements

 The five senses play a role in how the physical environment of a business is perceived. For example, a spa that smells of lavender oils, features soft, relaxing music and showcases a fountain in the center of the reception area speaks to pampering and elegance. A spa with paper robes, trained concrete floors and a medicinal aroma does not project the same image in the mind of a consumer.

Management Notes

Meaning and Principles of Technology transfer

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Technology transfer (TT), also called transfer of technology (TOT), is the process of transferring (disseminating) technology from the person or organization that owns or holds it to another person or organization, in an attempt to transform inventions and scientific outcomes into new products and services that benefit society. Technology transfer is closely related to (and may arguably be considered a subset of) knowledge transfer.

A comprehensive definition of technology transfer today includes the notion of collaborative process as it became clear that global challenges could be resolved only through the development of global solutions. Knowledge and technology transfer plays a crucial role in connecting innovation stakeholders and moving inventions from creators to public and private users.

Intellectual property (IP) is an important instrument of technology transfer, as it establishes an environment conducive to sharing research results and technologies. Analysis in 2003 showed that the context, or environment, and motives of each organization involved will influence the method of technology transfer employed. The motives behind the technology transfer were not necessarily homogenous across organization levels, especially when commercial and government interests are combined.  The protection of IP rights enables all parties, including universities and research institutions to ensure ownership of the scientific outcomes of their intellectual activity, and to control the use of IP in accordance with their mission and core values. IP protection gives academic institutions capacity to market their inventions, attract funding, seek industrial partners and assure dissemination of new technologies through means such as licensing or creation of start-ups for the benefit of society.

Technology Transfer in practice

Technology transfers may occur between universities, businesses (of any size, ranging from small, medium, to large), governments, across geopolitical borders, both formally and informally, and both openly and secretly. Often it occurs by concerted effort to share skills, knowledge, technologies, manufacturing methods, samples, and facilities among the participants.

Technology Transfer process involves many activities, which can be represented in many ways, in reality, technology transfer is a fluid and dynamic process that rarely follows a linear course. Typical steps include:

  • Knowledge creation
  • Disclosure
  • Assessment and evaluation
  • IP protection
  • Fundraising and technology development
  • Marketing
  • Commercialization
  • Product development

Technology transfer aims to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials, or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer. Horizontal transfer is the movement of technologies from one area to another.

Importance of Technology Transfer

Technology transfer is an important part of the technological innovation process, promoting scientific and technological research and the associated skills and procedures to wider society and the marketplace.

Tech transfer allows research to develop from the discovery of novel technologies along the value chain to disclosure, evaluation and the protection of these breakthroughs. From here, marketing, licensing and further development of products allow the research to become an impactful product, process or service for society. In addition, the financial returns afforded by a successful product can be reinvested into further research to begin the cycle again.

As a result, technology transfer creates revenues for universities to use for faculty recruitment, funding and more research. Companies are able to tap into the advances brought about by this academic research without having to spend on internal R&D to create new products to drive business forward.

The advantages of successful technology transfer can be felt through national and regional economies via growth through innovation, new ventures and stronger industry to boost employment.

Spin-outs

Spin-outs are used where the host organization does not have the necessary will, resources, or skills to develop new technology. Often these approaches are associated with raising of venture capital (VC) as a means of funding the development process, a practice common in the United States and the European Union. Research spin-off companies are a popular vehicle of commercialization in Canada, where the rate of licensing of Canadian university research remains far below that of the US. Local venture capital organizations such as the Mid-Atlantic Venture Association (MAVA) also sponsor conferences at which investors assess the potential for commercialization of technology.

Technology brokers are people who discovered how to bridge the emergent worlds and apply scientific concepts or processes to new situations or circumstances. A related term, used almost synonymously, especially in Europe, is “technology valorisation”. While conceptually the practice has been utilized for many years (in ancient times, Archimedes was notable for applying science to practical problems), the present-day volume of research, combined with high-profile failures at Xerox PARC and elsewhere, has led to a focus on the process itself.

Whereas technology transfer can involve the dissemination of highly complex technology from capital-intensive origins to low-capital recipients (and can involve aspects of dependency and fragility of systems), it also can involve appropriate technology, not necessarily high-tech or expensive, that is better disseminated, yielding robustness and independence of systems.

Informal promotion

Technology transfer is also promoted through informal means, such as at conferences organized by various groups, including the Ewing Marion Kauffman Foundation and the Association of University Technology Managers (AUTM), and at “challenge” competitions by organizations such as the Center for Advancing Innovation in Maryland. AUTM represents over 3,100 technology transfer professionals, and more than 800 universities, research centres, hospitals, businesses and government organizations.

The most frequently used informal means of technology transfer are through education, studies, professional exchange of opinions, movement of people, seminars, workshops.

There are numerous professional associations and TTO Networks enhancing different forms of collaboration among technology managers in order to facilitate this “informal” transfer of best practices and experiences.

In addition to AUTM, other regional and international associations include the Association of European Science and Technology Transfer Professionals (ASTP), the Alliance of Technology Transfer Professionals (ATTP), Licensing Executives Society (LES), Praxis Auril and others. There are also national Technology transfer associations and networks, such as the National Association of Technology Transfer Offices in Mexico (Red OTT Mexico), the Brazilian Forum of Innovation and Technology Transfer Managers (FORTEC), the Alliance of TechTransfer Professionals of the Philippines (AToP), the South African Research and Innovation Management Association (SARIMA), and other associations.

They promote cooperation in technology transfer and the exchange of best practices and experiences among professionals, as today international technology transfer is considered one of the most effective ways to bring people together to find solutions to global problems such as COVID-19, climate change or cyber-attacks.

IP policies

Universities and research institutions seeking to partner with industry or other organizations can adopt an institutional intellectual property policy for effective intellectual property management and technology transfer. Such policies provide structure, predictability, and a n environment, in which commercialization partners (industrial sponsors, consultants, non-profit organizations, SMEs, governments) and research stakeholders (researchers, technicians, students, visiting researchers, etc.) can access and share knowledge, technology and IP. National IP strategies are measures taken by a government to realize its IP policy objectives.

Management Notes

Meaning and Significance of Technological environment

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Technological environment refers to the state of science and technology in the country and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.

According to the well known economist J.K. Galbraith, technology means, “systematic application of scientific or other organised knowledge to practical tasks”.

Technology comprises of both machines (hard technology) and scientific thinking (soft technology) used to solve problems and promote progress. It consists of not only knowledge and methods required to carry on and improve production and distribution of goods and services but also entrepreneurial expertise and professional know how. Technology includes inventions and innovations.

The main Significance of technological environment are as follows:

  • Technological environment is a component of macro or indirect action environment.
  • Technological environment changes very fast.
  • Technological environment affects the manner in which the resources of the economy are converted into output.
  • Technological environment is self reinforcing. An invention in one place leads to a sequence of inventions in other places.

Technological Transfer

Technology transfer implies technology imported from technologically advanced foreign countries. Technology transfer can be through:

  • Globalization (MNCs)
  • Projects (Turnkey Projects: Ready for immediate use or operation)
  • Trade ( Sale of equipment by the manufacturer)
  • Training assistance (Bilateral and multilateral donors provide technical assistance)

Relationship between Business and technology

Technology is the backbone of running any successful business in modern society. The kind of business setup we have today requires an entrepreneur to take note of the ever-evolving technology and keep pace. Many businessmen would be sincerely surprised at the degree of impact modern technology can make in their business.

Impact of Technology in Business

Positive Effects

  • Productivity
  • Competitive advantage
  • Innovation
  • Increase in profit
  • Customer value

Negative Effects

  • Capital Burden: Huge investment
  • The threat of quick replacement
  • Increase in cost: regular maintenance
  • Need for skilled manpower.

Human Factor and Technology

Human Factors (Ergonomics): Human factors are the study of how humans behave physically and psychologically in relation to particular environments, products, or services. In other words, Human Factor is the scientific application of knowledge with the aim of making products, systems, services, and environments safe, efficient and easy to use.

Ergonomics is the science of the design of equipment, especially so as to reduce operator fatigue (tiredness), discomfort and injury.

Effective implementation of technology is totally depending on the human factor. Their knowledge, skills, and abilities determine technology effectiveness and efficiency. Technology must address natural (physical and mental) abilities and ensures success and safety. It should add value to human operation. There must be a close match between technology tech news and human factors for enhancing effectiveness.

Components of Technological Environment

The technological segment business environment includes the institutions and activities new knowledge and translating it into new products, processes, and materials. Technology diversified scope. Hence, it affects many parts of society. Given the rapid pace of technological vital for firms to study the technological segment thoroughly. The importance is that early technology often achieve higher market shares and earn higher returns. The different technological environment is mentioned below.

  • Levels of Technology:

There are different levels of technology. Levels of technology refer to the degree of sophistication

technology. The levels may be manual, mechanized, automated, computerized and robotized a. Manual technology:

It is the simplest form of technology. It is based on human beings. It is traditional technologies are used. Production volume is low. The overall cost of production is high. In Nepal, the cottage industries still use manual technology.

  • Mechanized Technology:

With the advancement of science and technology, many machines are invented. Mechanized machine-based. The production and capacity utilization is high. The quality also improves. investment and maintenance costs are high.

  • Automated Technology:

It uses self-controlled machines. It is widely used in modern industries. The production high are mostly used in the industries involved in the production of standardized products. Workers is low. The investment is very high.

  • Computerized Technology:

It uses computer-based sophisticated machines. Digital technology is used. Investment is high. few employees to run the technology.

  • Robotized Technology:

It uses robots in place of human beings. It is mostly used in hazardous conditions. The productivity is superior. However, investment is very high.

  • Pace of Technology change:

It is the stage and speed of technological change. The change seems very low in organizations are not found to adopt modern technologies in a timely manner.

  • Technology Transfer:

It implies technology imported from foreign countries. The drivers of technology transfer companies, technical assistance by foreign countries, donor-assisted projects, and Multinational companies are playing an increasingly important role in technology transfer abroad to expand production, marketing, and research activities.

Management Notes

Modes of acquiring Technology

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Acquiring a technology is important since every business out there relies on some or the other technology. In this competitive business landscape, it is important to either develop or acquire a technology you need since you don’t want to lag behind just because of your technological laggardness. In addition, we live in a world filled with technological products & services so, technology management is highly important.

Every business in the world is using technology management tools like S-Curve, Roadmapping, etc. to carry out technology management activities in order to serve their customers better, automate their process flows, or to reduce cost and time. If you are not the inventor of that technology, then before using the technology you need to acquire it legitimately. Acquisition is the process of obtaining the technology needed for our business.

There are many different modes of acquiring these specific technologies. For organizations that focus on developing and deploying IT, the process might include applying for government programs, getting funding from venture capitalists and international agencies, purchasing complementary technologies and operating a joint venture with another organization. For organizations that specialize in the manufacturing of IT equipment, the process might include obtaining patents, licensing out technologies to third parties and establishing joint ventures with other companies. However, there are also other approaches to the acquisition of technology, such as sourcing or leasing.

Technology acquisition methods that are used for passive sources of technology include subscription purchase and lease buying. These methods involve an exchange of payments between the buyer and the seller. For active sources of technology, such as those that are being developed or deployed, the method used is contract process. Contract processes can be a complicated process, but they are usually characterized by short-term or long-term terms.

Technology acquisition methods may be used in all different forms of industries. Some of the most common types of technology requirements include software development, software outsourcing, hardware sales, computer manufacturing, digital electronic product sales and contract process outsourcing. The methodologies for each of these types of activities have their own specific characteristics. The acquisition of software development is characterized by a focus on new technology that may not be available from existing vendors. For software outsourcing, the focus is more on obtaining IT services from an external source while contracting the design and implementation of these services. In the case of computer manufacturing, the acquisition methods include purchasing the raw materials from an outside source while the methods for contract process outsourcing include incorporating these resources into the manufacturer’s production line.

Technology acquisition methods are continuously changing as technologies change. For example, during the last decade, the telecommunications industry has experienced rapid growth as a result of mergers and acquisitions and capital investments. These mergers and acquisitions have allowed companies to incorporate newer technologies into their business models. In addition, a variety of tools and devices designed to facilitate the integration of technologies have been introduced to the market. As a result, companies must adapt to these changes if they want to remain competitive in the marketplace. It is important for organizations to consider acquiring the latest technologies because they can help them to improve their competitiveness, reduce cost and reduce waste.

Internal R&D

The first method is to leverage the Research and Development department of your organization. Keep in mind this is an internal acquisition method since you are using resources internal to your organization. The R&D department does research to generate new knowledge at technical ideas aimed at solving the problems your business faces. The goals should be shared with R&D department when the strategy is development phase. The R&D department chooses projects based on these goals to satisfy the strategic needs.

This is a continuous process and involves frequent ideation, prototyping, testing and finally commercialisation if the research is successful. Many larger firms have in-house R&D departments that work all year round to innovate existing products or create new products/services. The internal R&D method has various uses like new product/service development and new process development.

The R&D department can also foster innovative ideas to improve process flows and on-going operations in the organisation. R&D portfolio is essential to reduce uncertainty. We must also make sure that we protect our developed technology using the intellectual property protection methods to prevent problems in the future.

Contracted-out R&D

We outsource all the research and development activities in this method. Now, the outsourced third party may be a contract research organization, teams of consultants, researchers or experts.

In some cases, we also outsource the research work to universities. Many enthusiastic students, under the guidance of their professors carry our research work on innovative technologies. Hence, universities are also a good option for firms to acquire any new and innovative technologies. The only thing to keep in mind is that as the work is contracted out, the company has little managerial input in the process. Thus, regular feedback must be taken to keep goals and efforts aligned.

Strategic Alliances

Ad-hoc partnerships formed to solve specific problems. Complex alliances and joint ventures are formed, to complete acquisitions. Ad-hoc alliances are flexible and are normally used to develop a technology that is critical to two or more businesses. Forming a consortium is another flexible alliance form, where many partners come together for pre-competitive R&D with no equity relationship involved.

More complex alliance forms are used, when two or more businesses are operating in different sectors to pool their resources. In addition, it helps them generate synergy so that the companies can gain access to a critical technology in which they are weak. Joint venture is vital when the area of cooperation is well defined. A joint venture shares the risks and acquisition costs between the partners and this method is highly valuable when these are high.

Licensing

A license is a legal binding document which allows a third party firm to use the invented technology for a specific purpose. In this situation, we are the licensee company and the company that own the technology and is ready to license it is the licensor.

Mergers & Acquisitions

Acquisition of a company is the most certain way of securing a technology and preventing others from acquiring it. But if the two companies are of roughly equivalent size, a merger may be appropriate. The goal in all M&A activity is to acquire and integrate an external entity into the existing company. Acquisition is the fastest way of transferring the required external critical capabilities and resources.

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