Technology Acquisition is the act of acquiring a specific technology, product, new procedure or new service by private efforts of an organization or a person. This process can also be carried out externally or internally for the organization. Acquiry have Many types of technology acquisition processes exist and they are as follows:
The major types of technology acquisitions are: internal and external acquisition. Internal acquisition refers to any transactions and negotiations that happen within an organization. On the other hand, external acquisition takes place when a person acquires technology outside the organization. Both internal and external acquisitions have several important benefits. The advantages of internal technology acquisition include the reduction of cost, control of risk, improved efficiency and the ability to meet time deadlines.
When a person conducts a technology acquisition, it does not mean that he/she has completed the acquisition process. There may be several phases to an external acquisition and it is necessary to know the phases involved in the acquisition. An external technology acquisition usually occurs when organizations need a technology to fulfill a short-term need, such as for the preparation of new product development, market research, or the improvement of a specific business process. A person cannot conduct an internal acquisition which deals with a long-term goal like transforming a business into a green business.
Core Competencies identifies the transformation of the organization from its operational model to its strategic alignment model. Core competence research is vital during a technology acquisition. It helps determine the organizational needs and the capacity of the technology to meet these needs. Acquiring the wrong technology in the wrong stage can lead to organizational failure.
Types of technology acquisition can also take the form of in-house transfers where the existing employees are trained or brought on board to execute the acquired task. In addition to hiring new employees, external acquisition can also take place through acquisitions sponsored by the owners. Examples of in-house transfers include software development, acquisitions of technology from other companies, and purchases of critical network infrastructure components.
Types of technology acquisition are usually separated into three categories: internal/external, core competencies-based, and value stream combinations. Internal/external acquisitions refer to purchases within the organization. They are typically made when the organization needs a specific technology but has limited financial resources to pursue this need at the earliest opportunity. Core competency based acquisitions refer to those required by core competencies. These can include specific technology solutions that are required for specific job roles. Value stream combinations are combinations of internal and external technologies that can deliver the desired effect at a reasonable cost.