Technovation 20 (2000) 3–10 www.elsevier.com/locate/technovation A model for the assessment of new technology for the manufacturing enterprise M.W. Pretorius * , G. de Wet Department of Engineering and Technology Management, University of Pretoria, Pretoria 0002, South Africa Received 18 February 1999; received in revised form 19 April 1999; accepted 4 May 1999 Abstract Modern technology plays a key role in the ability of manufacturing enterprises to compete as world class manufacturers. Managers need to make complex decisions regarding applicable technologies in order to gain optimal return on technological investment. A model was developed to assess the impact of manufacturing technology on the productivity and competitiveness of the enterprise. The approach taken by the model is to view the manufacturing enterprise as a manufacturing system in which different dynamic process structures exist. A framework is defined by the hierarchical structure of the enterprise, the business processes and the fundamental business functions. This creates a 3-dimensional space in which the business processes can be mapped. From the relationship between technology and process, the impact of new technology on the enterprise can be projected onto the 3-dimen- sional framework. Proven world class manufacturing methodologies can be assessed by the model. These typically include automated manufacturing, production management and concurrent engineering systems. Ultimately, the model can be a useful tool for developing or evaluating technology strategies for the enterprise. 1999 Elsevier Science Ltd. All rights reserved. Keywords: Management of technology; Technology assessment; Manufacturing technology 1. Introduction Multi-dimensional analysis in the World Competi- tiveness Report (Garelli, 1992–95) identified world class technology as a key factor in global competitiveness. A comparison between the results for Domestic Economic Strength and Science and Technology in the reports shows a direct relationship between the two factors. This relationship defines a technology growth path as shown in Fig. 1. Two alternative growth scenarios are pointed out in the figure. Scenario A represents a high rate of investment in technology without a corresponding growth in economic strength. This scenario typically points to problems in the technology strategy. Scenario B, on the other side, represents a high growth in econ- omy supported by a relatively low investment in tech- nology. A typical Scenario B strategy would be to * Corresponding author. Tel.: + 27-12-420-3882; fax: + 27-12-362- 5307. E-mail address: timus.pretorius@eng.up.ac.za (M.W. Pretorius) 0166-4972/99/$ - see front matter 1999 Elsevier Science Ltd. All rights reserved. PII:S0166-4972(99)00092-9 Fig. 1. The ideal technology growth path. acquire technology from outside the country and use relatively cheap labour to create jobs. This is however a short-term strategy for the creation of wealth, with the longer-term objective to invest the profits in tech- nology development.