Last Updated on September 22, 2022 by krogerexperience

The term “technical capability” is used in a variety of industries, including manufacturing and IT, but it has different meanings depending on the industry and the person. Many people think that technical ability is important, but I think there are few people who recognize the correct definition of “technical ability”. Therefore, this time, we will explain in detail the definition of technical ability and the method and merit of improving technical ability.

What is “Technology”?

There are two definitions for the term “technique” according to the Japanese Dictionary of Expertise.

  • a way or means of handling things or doing things
  • A means of applying scientific theories and harnessing nature for the benefit of human life

For example, for a chef, “methods and means for cooking ingredients” correspond to techniques. In addition, the method of generating sunlight using a solar panel can also be said to be technology in that it utilizes nature in a way that is useful for human life.

Three ways of thinking about “technical capabilities” that differ depending on the industry and people:

The dictionary definition of technical ability is as described above. However, “what kind of technology is considered specifically” differs depending on the industry and the person. In this chapter, I will introduce three main ways of thinking about technological capabilities.

1. The way of thinking that regards technological capabilities as “applied ability” and “ability to create something”

The way of thinking that is closest to the definition is the way of thinking that regards technical capabilities as “applied ability” or “ability to create something.” For example, in the case of the IT industry, even if you know programming knowledge (how to write code, etc.), if you can’t use that knowledge to create products and services, you think you don’t have the technical ability. In other words, we have the technology, but we do not have the ability to apply it.

On the other hand, if you have the ability to create new products and services that have never existed before using your past experience, knowledge, and technology, you can say that you have technical strength in terms of “applicability.” For a company to continue growing over the long term, it is also important to create innovative products and services rather than copying other companies or continuing to sell the same products and services.

Human resources and companies whose strengths are technological capabilities are not limited to the ability to create existing products and services. Students should also acquire the ability to apply the knowledge and experience gained in the process to create new things.

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2. Thinking that technical ability is regarded as the “amount of knowledge”

There are quite a few people and industries that judge a person’s technical ability from the perspective of “how much they know how to handle things and how to process things.” For example, in the IT industry, technology is constantly changing. For this reason, engineers who are always up to date with the latest information tend to be judged to have higher technical capabilities than engineers who stick to one technology (programming language, framework, etc.) that they have learned in the past. It is in.

Also, in many cases, engineers who acquire important knowledge each time are considered to be “technical and excellent”. However, no matter how much useful knowledge you have, if you do not have the ability to create products and services using technology, there is a high possibility that it will not work in the long term. In order to make a profit, it is necessary to have the technical ability to create products and services. The knowledge acquired must be put into practice.

3. Thinking that technology is “the power to create things at low cost and short delivery time”

In fields such as manufacturing and IT, technical capabilities are sometimes considered to be the ability to produce products of the quality required by customers at low cost and with short delivery times. This is because the more you can produce products with less cost and shorter delivery times, the more profit you can make. For example, if a company can manufacture at a low cost, it can sell products at lower prices than those of its competitors to arouse the desire of customers to purchase them, or sell products at the same prices as those of its competitors to increase profit margins.

In addition, if we can manufacture products with a short delivery time, we will be able to meet the needs of customers who want immediate delivery, and we will also be able to cut costs such as personnel expenses. In other words, it can be said that the ability to create products at low cost and with short delivery times is the source of profits for companies. Earning profits is essential for a company to continue and grow its business. “The ability to make things with low cost and short delivery time” is as important as the ability to apply and the amount of knowledge.

3 benefits for companies to improve their technical capabilities

Technological capabilities are said to be important regardless of the industry, and this is because there are the following three advantages.

1. Generate more profit

The biggest benefit of improving technology is the ability to generate more profits. For example, if a company can produce better products than its competitors, it can attract customers who want higher quality products and increase profits. Also, if you can produce products at lower cost and with shorter delivery times than your competitors, you can expect to acquire many new customers and increase your profit margins.

2. Leads to long-term competitive advantage

From a long-term perspective, the point that leads to the establishment of competitive superiority is also an advantage of enhancing technological capabilities. Competitive advantage is the strength of a company that allows it to outperform its competitors. If a company can establish a competitive advantage, it will be possible for consumers to choose their own products and services, such as “be able to purchase excellent products that other companies do not sell” and “be able to purchase products at a lower price.” Become.

Even if price competition intensifies, it is possible to avoid losing customers to other companies and lowering profit margins, which ultimately leads to long-term continuation and growth of the business.

3. Create new business opportunities

If you have the technical ability to apply past experience and knowledge, you can create new business opportunities.

For example, suppose many consumers in a particular market are dissatisfied with existing products. Let’s assume that our competitors do not have the technological capabilities to create products that can eliminate that dissatisfaction. However, if you improve your company’s technical capabilities and use past experience and knowledge, you may be able to create new products and services that can eliminate consumer dissatisfaction.

In addition, by applying the technology cultivated in existing markets, it becomes possible to advance (diversify) into related markets. Successful diversification will secure new sources of income separate from existing businesses, and even if the profitability of existing businesses deteriorates, the company as a whole will be able to minimize losses.

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