Factors Determining Determinants of Mode of Technology Acquisition
Before discussing the determinants of mode of technology acquisition by Acquiry, it is important to highlight the fact that this discussion applies only to technology systems and items, that are used in business today. The acquisition of new technology items and systems involves far more than meets the eye. For instance, a company that was once a small local business may, today, have acquired the latest technology available for the aeroplane and decided to use this technology in their production line of aircraft, trucks and automobiles. This means that this company has to consider a whole range of factors such as the market demand, the type of products to be produced, the speed at which the process can be completed, the productivity of the staff using the new technologies, the cost involved in procuring these products and so on.
Determinants of mode of technology acquisition are not specific to just one type of acquisition. There are numerous such determinants of mode. They include the mode of distribution, the mode of competition, the mode of prices (i.e. competitive pricing, where customers’ prices are set keeping knowledge of other companies as well as the existing price level, cost- savings, cost- penetration, etc. ), and the mode of customers (i.e. how customers make use of a product and the way customers locate a company to avail of the product).
Acquisitions of technology are driven by many considerations. One of the primary considerations for most companies is whether they can make a profit from the sale. Many technology acquisitions are motivated by a desire to gain market share in a particular technological area. However, technological areas can quickly become saturated with competitors, with no room for further innovations.
Determinants of mode of technology acquisition also include whether the technologies involved will be used in the short or long term. For example, it makes little sense to purchase costly software for which there will be little or no market for ten years or more. Companies must also determine if the technologies involved will have a direct application for their business, or if it will be more effectively used by third parties. The cost of acquiring the technologies involved must also be considered in isolation of the cost of implementation.
Determinants of mode of technology acquisition are therefore more complex than simply determining whether the price is right or not. Most of these factors involve assessing the impact on the companies and the implications for the companies’ organizational structure and processes. For example, if the acquisition involves a relatively new technology, it may well be necessary to seek advice from outside specialists in the field. Similarly, if the technology involved has an established following, there will be a need to investigate whether any of those organizations have specific areas of expertise that can be put to good use within the company. The impact on employees and procedures, both short and long term, will also need to be considered.
The determination of which technologies are the most appropriate for acquisition will be influenced by a number of different factors. In order to be able to make an informed decision about the type of technologies best suited to the needs of the company, it is important for companies to consider all of the relevant considerations. These considerations will include the type of the markets the technology will enter, the industry in which it will be utilized, the impact on employees, and the procedures required for training and support. If a certain mode of technology acquisition cannot adequately satisfy these needs, then it is preferable to seek advice from consultants who specialize in such matters.