Technology Diffusion Case Study : Read the following case study thoroughly and answer the following questions:

Technology Management Case Study : Read the following case study thoroughly and answer the following questions.

This case study deals with technology diffusion.

XYZ is a small software development company, established in 1970. Their products commanded a good brand value in the market. Their market value was Rs.200 crores by the year 1995. So the company decided to expand its business by offering new products based on cutting-edge software technologies. In this context, the company’s General Manager (GM) decided to buy new technologies and introduce them in the company. When he discussed this matter with company’s employees, they were not enthused because they had to learn new skills to master new technologies. They were comfortable with old skills and showed their reluctance towards new skills. They also though that new technologies may make them redundant. One of the employee also said that the new technologies will add to the company’s costs.

 
After considering all the opinions and suggestions, GM took a decision. He selected two employees who showed an inclination towards learning new things and sent them for training to ABC Software Company. At ABC the two employees of XYZ received technical know-how with respect to the usage of new software. After completing their training, the two employees returned to their company and conducted a workshop for one week on the usage of new software. This workshop helped the employees of XYZ to shed their inhibition towards new technologies and the usage of software.

 Now the employees started using the new software without any difficulty. For any doubts or clarifications, they could freely consult the two employees who had received training at ABC company. The GM felt happy that all the employees had no difficulty working on the new software. The good leadership qualities exhibited by the GM led to the introduction of new software and its acceptance in the company. In the year of 1996, the company bagged a project that especially required the assistance of the new software being introduced. Since all the employees were trained to work on the new software, the new project was successfully completed in a record time. The completion of the new project increased the XYZ’s profit to Rs. 500 crores. The credit for successful diffusion of technology in the company and resulting profitability goes to the insight and leadership qualities of the GM.

 

a) Why do you think the employees showed reluctance towards adopting new technologies or learning new skills?

Some factors that lead employees to show reluctance towards adopting new technologies or learning new skills could be:
· The employees at the XYZ company were comfortable with the old skills.
· They were reluctant to learn new skills.
· The employees felt that the new technology could make them redundant, hence resisted to the change proposed.
· Some employees expressed that the new technology will add more cost to the company.

 
When the XYZ Company decided to expand its business by buying new technologies, the employees at the company showed reluctance towards adopting the new technologies because of the fear of change. Change is often resisted initially due to lack of knowledge and adequate information. But with adequate awareness and change management workshops, perspectives can be changed. People start to think that they will have to learn new skills adding more burdens to their work. 

Some people who are open-minded and willing to learn and accept new challenges may come forward. The General Manager of the XYZ Company did the right things by identifying such resources and getting them trained on the know-how. They were effectively used to impart the knowledge with the rest of the employees which lead to the acceptance of change in the company. The resistance to change can often be minimized by imparting awareness and informing about the advantages of the new technology.
 

b) Why was the GM eager to introduce new technologies or software in the company?
Answer:

The General Manager of the XYZ Company was eager to introduce the new technology or software in the company mainly because he wanted to expand business, and to do so they needed the new technology. This shows that the GM had vision and foresight for the well-being of the company. 

He knew the new technology will add value to the company and help the company progress. As described in the passage, the XYZ Company is a small software company, but had a good brand value in the market. Being small, they needed to expand by acquiring new technological skills. But there was resistance from te employees to the change proposed.

 
The GM exhibited good leadership quality by handling the crisis situation well. He identified resources willing to accept the change and engaged them in the process by imparting them with training of the new know-how. The resources after training were used to impart the change management in the company.