Management and Technology Life Cycle: Two Original Bulgarian Technologies (Case Studies of Electrotermia and of Predima)

Razvigorova, E. & Djarova, J. (1989). Management and Technology Life Cycle: Two Original Bulgarian Technologies (Case Studies of Electrotermia and of Predima). IIASA Working Paper. IIASA, Laxenburg, Austria: WP-89-024

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Abstract

Strategic planning and coordination decisions become more and more important when opportunities for extensive economic development are limited by scarce material, energy and labor resources, by frequent and unexpected changes in the market situation, and by the increased technical and technological complexity of production processes. These decisions must fulfill the main goals of the producers, guarantee their survival, and therefore affect the basic tasks of their development: to define competitive and efficient products in the immediate and more distant future, to open sales markets, to secure sub-contracting relations with suppliers, to develop and renew production facilities, etc. this is the basis on which producers form the developmental strategy for periods of 5, 10, 15 or more years.

The creation of a developmental strategy in business organizations is preceded by analyzing and evaluating the current situation: technical level of products and technologies, economic production and sales results, marketing relations, prevailing organizational and management conditions, and personnel issues. Based on these analyses and evaluations and taking into account decisions of higher state authorities, companies define their production potential and strategic goals, and then alternative developmental strategies to reach those goals.

Apart from the numerous practical problems faced by business organizations in forming a developmental strategy, a fundamental methodological problem is selecting tools to analyze indicators and alternatives, compare technical and economic achievements, rank alternatives, select products, technologies, etc. Therefore, during recent years, much research has been aimed at creating a methodological basis of strategic planning (management) through creating, selecting and empirically testing tools which are suitable for strategic analysis and evaluation, such as: symbolic models, graphical and graphic analytical forms, matrix methods, and others.

This theoretical applied study "Management and Technology Life Cycle" presents the results from the first stage of two Bulgarian case studies, one conducted at the Electrotermia Company, one at the Predima Company. The study is being carried out in fulfillment of the research plan of the Institute for Social Management's Problem Center on the Management of Technological Development, in order to meet Bulgaria's national demand for a complex and systematic analysis of the problems of technological strategic management. The study also responds to the need to improve the management system of technological development at Bulgarian business organizations. The study's results fulfill the contractual obligations of the Institute's Problem Center and both the Electrotermia Company and the Predima Company with the International Institute for Applied Systems Analysis in Laxenburg, within the framework of the "Management of Technological Change" project, part of the "Technology, Economy & Society" program.

The following groups of technologies were considered in choosing the study objects: Group A -- New technologies, based on Bulgarian inventions; Group B -- New technologies for traditional industries (mainly license technologies).

This paper presents the results from the first stage of the case studies on the technology for laying protective coatings on electrodes for use with electric arc furnaces in steel production and on the technology for producing worsted fancy years known as "Predima."

The two technologies investigated find themselves at different phases of the life cycle. Electrotermia is in the maturity phase, the second in the growth phase. This difference between the two technologies provides an opportunity to compare their development as well as their management systems.

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