Design Technology Management in Housing Industry: A Case Study

Transcription

1 Design Technology Management in Housing Industry: A Case Study Biranchi Prasad Panda, Assistant Professor, School of Management, KIIT University, India Biswajit Das, Professor, School of Management, KIIT University, India Abstract This paper presents a case study describing the management of design technology in the housing industry at Bhubaneswar, the capital city of Odisha (INDIA). The paper is based on the survey results and focus group discussions with the people from real estate firms. A comparative analysis is done on the design practices. The authors of this paper have tried to relate the design and construction activities of housing industry analogous to product design and development activities of manufacturing industry. The study covers the range of business activities from land acquisition for housing projects to the construction of houses and large apartments. A firmlevel assessment of competitiveness; design capability; and absorption of intelligent computer-aided design technology, concurrent engineering (CE) and design for X (DFX) is done through this case study. The design technology management in the participating firms is carefully studied against the best practices in the prevailing business environment. Keywords: Design Capability, Design Technology, Concurrent Engineering, Competitiveness 1. Introduction Odisha is historically popular for its art, sculpture and architecture. Government initiatives towards civil township and infrastructure development came in the post-independence era only. Distributed housing sites and integrated housing schemes were launched in India after the World War II (Behuria, 1990, 1991) subsequently adopted in different states. Bhubaneswar being the state capital remained as the center of urbanization. People from around migrated to this city with varied reasons. The demand generated thereof created a good business ISSN: August Page 1

2 opportunity for the real estate firms. The business grew further with the emergence of various education institutions and IT firms. Ultimately the city got twinned with peripheral cities namely Cuttack, Puri and Khurda. The housing industry, in the city, grew very fast, rapidly converting the ideas into plans and designs and finally into properties. The industry imagined, created, funded, controlled and orchestrated the overall process of building real properties from design to delivery. The competition in the market forced the industry to feature with new materials, methods, models, technical and managerial skills. To offer a competing level of customer satisfaction the housing industry looked for Achieving higher competitiveness Using advanced technologies Launching new projects at new locations Consulting external firms and architects for business support Providing contractual construction services to private institutions and individuals The industry is presently using computers for record keeping, demonstrations, communications, and modifying the existing plans and designs or import of new ones. Slowly the industry looked for developing the in-house designs. Hence the firms gradually tried to explore the embedded features of the existing CAD software. Newly advanced materials and methods are gradually adopted to cope with the cycle time and other competitive factors like cost, quality and variety. The firms started seeing the quality of materials, methods and services as the hygiene factors while trying to operate with an affordable time and cost. Looking at the current market needs, the housing industry needs to adopt cost-cutting, time-saving and customizing the products and services. It is proposed through this paper that the housing industry can enhance its firm-level design capability and competitiveness by absorbing intelligent computer-aided design technology and concurrent engineering (CE) practices. 2. Approach to Research The study was undertaken by deploying some trained enumerators to gather the data from the real estate firms by using Design Atlas, as the instrument. The questionnaire was an adapted version of the Design Atlas, a standard audit tool and assessment framework discussed in the book Design in Business: Strategic Innovation through Design by Bessant, J. & Bruce, M. (2002), duly recommended by the UK Design Council. Further insights were gathered by the authors for qualitative interpretations. A cross-examination of present organization structures in the housing industry was done with reference to the manufacturing industry to know whether similar benefits are derived from design technology practices. Accordingly the strategy of implementing soft technologies such as intelligent CAD and CE was recommended (Brookes, N. J. and Backhouse, C. J., 1998; Anumba, C. J. et. al., 2002). The response was collected from at least three levels of management. Additional responses in some places provide a better insight of various functional areas in the business. 3. Analysis of the Design Practices The design practices in the housing industry were studied by administering a questionnaire. Basically it studied the firm s capability levels in terms of systematic planning, process, resources, people and culture for design. Additional information was explored from extended rounds of discussions with the respondents giving the researcher a deeper insight to the firm s competitiveness and design technology absorption level. The firm-level study is interpreted and rated with a score in four levels, level-1 and level-4 respectively indicating the lowest and highest degree of design performances. The only exception in rating is done on cost factors, since level-1 and level-4 of cost indicate high-cost and low-cost respectively. Twenty responses were collected in total from nine housing firms. The case is treated as an embedded one i.e. cases within a case (see Figure 1). The case study describes a broader case comprising cases of firms within it. The responses are first cross-examined within the firm and then compared with other firms under study. Then the interpretation leads to a generalization validating the firm-level study of the industry. The cases are shown in the following sub-sections and a conclusion is drawn at the end of the study. The summary of responses are represented numerically (see Table 1) and graphically (see Table 2). The firm-level competitiveness is assessed on cost, quality, flexibility and time through detailed discussions. Then these factors are converted to four levels of competencies. Each design factor is rated with a level-score so as to know their impact on the dimensions of competitiveness. For the improvement of competitiveness, therefore, it is recommended that the firms should stress on the positive influence and eliminate the negatively influencing factors to the possible extent. ISSN: August Page 2

3 The factors having positive effect on the cost are integration of activities, structured communication, identification of design objectives, using proper design tools, process approach, continuous improvement of designs, established procedures, regular design evaluations and reviews, allocation of budgets, in-house design skills, collective design contribution, commitment of senior management, and identification of cost centers. Similarly, the factors negatively affecting the cost are limited analysis of internal and external factors, individual approach to design projects, limited planning, limited financial procedure, involving external designers or design agencies, cost of inefficient collaboration, and failure cost. The factors positively affecting the quality are integrated plans and objectives, structured communications, complete understanding of plans and objectives, process approach, continuous improvement, established procedures and reviews, evaluation and review of budgets, adequate design skills, design collaboration, and holistic view of senior management. Similarly, the factors negatively affecting the quality are short planning horizon, individual approach to design projects, and limited financial procedures. The factors positively affecting the flexibility are integrated plan, fully updated understanding of plans and objectives, short cycle designs, process approach, design skills and experiences, design collaboration, senior managers interest and commitment. Similarly the factors negatively affecting the flexibility are fixed structure of communication, individual approach, standard procedures and practices, budget allocation on return basis, and limited financial procedures. The factors positively affecting the time are directional plans, clear objectives, appropriate tools, and shortterm deliveries, process approach, less downtime, collaboration, and commitment of senior management. Similarly the factors negatively affecting the time are limited analysis of internal and external factors, individual approach, and limited financial procedures. Absorption of intelligent CAD technology and CE practices in the business are similarly assessed on four levels as level-1 and level-4 show very low and very high performances respectively. The study was conducted by interacting with the directors of all firms; AGM of Firm-4; Senior Project Manager and Site Supervisor of Firm-5; Technical Head, Housing Coordinator, and HR & Admin Executive of the Firm- 6; Project Manager and the Supervisor of the Firm-7; Chief Project Manager, and GM (Corp)/ Project Head of Firm-8; Site Executive, and Supervisor of the Firm-9. The interaction led to the assessment of the capability of planning, process, resource, people and culture for design Planning for Design The business plans are mostly done by the top management, sometimes in consultation with the middle level mangers. It is understood from discussions that most of the planners just qualify the rules and norms of Bhubaneswar Development Authority (BDA) and customer s requirements. Only a few are trying from the day- 1 to become the order winner. The plans and objectives are mostly found directional and integrated with all business functions, but a very little analysis of internal and external factors is done by any firm. Only one out of twenty firms mentioned the use of computer-aided planning in their business during the survey General Planning Awareness (A1): Firm-1 has the general planning awareness at level-3; Firm-2 at level-3; Firm-3 at level-3; Firm-4 at level-3; Firm-5 at level-3; Firm-6 at level-3; Firm-7 at level-3; Firm-8 at level-3; and Firm is at level-2. So, the overall firm-level general planning awareness of housing industry is at level General planning communication (A2): Some of the firms communicate their plans and strategies through meetings; some firms bring intermittent updations or modifications to their plans and communicate; and only a few of the firms involve all functional people of their business in planning. So Firm-1 has the general planning communication at level-3; Firm-2 at level-3; Firm-3 at level-3; Firm-4 at level-2; Firm-5 at level-3; Firm-6 at level-2; Firm-7 at level-2; Firm-8 at level-3; and Firm-9 is at level-3. So, the overall firm-level general planning communication of housing industry is at level Design Planning Awareness (A3): Some of the firms understand the importance of design in business and successful framing their design objectives as design strategies. So, Firm-1 has the design planning awareness at level-4; Firm-2 at level-4; Firm-3 at level-4; Firm-4 at level-3; Firm-5 within level-3 to level-4; Firm-6 at level-3; Firm-7 at level-3; Firm- 8 at level-3; and Firm-9 is at level-3. So, the overall firm-level design planning awareness of housing industry is slightly above the level-3. ISSN: August Page 3

4 Design Planning Thinking (A4): Some of the firms frame and follow design planning thinking, therefore using computer-aided technologies. Few of the firms use appropriate design tools and techniques in planning and implementing their design plans and objectives. Firm-1 has the design planning thinking at level-3; Firm-2 at level-4; Firm-3 at level-4; Firm-4 at level-1; Firm-5 within leve-2 and level-3; Firm-6 at level-1; Firm-7 at level-3; Firm-8 at level-3; and Firm-9 at level-4. So, the overall firm-level design planning thinking of housing industry is close to level Design Planning Horizon (A5): Some of the firms set design plans for long-term in multiple projects aligned with their business objectives and strategies. Few of them fulfill those objectives. Firm-1 has the design planning horizon at level-2; Firm-2 at level-4; Firm-3 at level-4; Firm-4 within level-3 to level-4; Firm-5 within level-1 to level-2; Firm-6 within level-1 to level-2; Firm-7 at level-2; Firm-8 at level-3; and Firm-9 at level-3. So, the overall firm-level design planning horizon of housing industry is close to level Process for Design The business activities are mostly not seen as processes. This is why the firms have not succeeded to computerize many of its business activities and could not remains customer focused. The firms, due to lack of process-approach, could not focus much on continuous improvement or growth of the business General Process Awareness (B1): Some of the firms are adopting process-approach and trying to achieve continuous improvement. Firm-1 has the general process awareness at level-3; Firm-2 at level-4; Firm-3 at level-3; Firm-4 within level-3 to level-4; Firm-5 at level-2; Firm-6 at level-2; Firm-7 at level-3; Firm-8 at level-3; and Firm-9 at level-2. So, the overall firm-level general process awareness of housing industry is close to level Design Process Awareness (B2): Most of the firms prepare their designs manually and and preserve the hard copies for future use. A few of them have integrated CAD into their business. Firm-1 has the design process awareness at level-4; Firm-2 at level-3; Firm-3 at level-3; Firm-4 at level-3; Firm-5 at level-2; Firm-6 at level-2; Firm-7 at level-3; Firm-8 at level-3; and Firm-9 at level-2. So, the overall firm-level design process awareness of housing industry is close to level Design Process Management (B3): Most of the firms do not review the designs activities. Very few firms have established procedures and documentation mechanisms for managing the design process, progress and the risks involved therein. Firm-1 has the design process management at level-4; Firm-2 at level-2; Firm-3 at level-3; Firm-4 within level-2 to level-3; Firm-5 within level-2 to level-3; Firm-6 within level-2 to leve-3; Firm-7 at level-3; Firm-8 at level-2; and Firm-9 at level- 3. So, the overall firm-level design process management of housing industry is close to level Design Process Thinking (B4): Some of the firms use standard tools like checklists and calendars for structured thinking in design processes. Firm-1 has the design process thinking at level-3; Firm-2 at level-3; Firm-3 at level-3; Firm-4 within level-3 to level-4; Firm-5 within level-2 to level-3; Firm-6 at level-2; Firm-7 at level-3; Firm-8 at level-2; and Firm-9 at level-2. So, the overall firm-level design process thinking of housing industry is within level-2 and level Resource for Design The firms mostly invest by looking at the market trend and scope of return on investment. Few of them have a proper financial procedure in place General Resource Allocation (C1): Most of the firms allocate resources on the basis of potential return. Few of them do the risk analysis while monitoring the progress. Firm-1 has the general resource allocation at level-4; Firm-2 at level-3; Firm-3 at level- 3; Firm-4 within level-3 to level-4; Firm-5 at level-3; Firm-6 at level-3; Firm-7 at level-3; Firm-8 at level-4; and Firm-9 at level-2. So, the overall firm-level general resource allocation of housing industry is slightly above the level Design Resource Allocation (C2): Most of the firms have some budget for design activities based on their risk bearing capacity, expertise and timeframe of work. Firm-1 has the design resource allocation at level-3; Firm-2 at level-3; Firm-3 at level-3; ISSN: August Page 4

5 Firm-4 within level-3 to level-4; Firm-5 at level-3; Firm-6 at level-3; Firm-7 at level-4; Firm-8 at level-3; and Firm-9 at level-2. So, the overall firm-level design resource allocation of housing industry is at level People for Design The firms have some expertise and need to develop further their dessign skills and capabilities. Sometimes they hire the external support from some design agencies or experts Design Skills (D1): Most of the firms develop their designs by jointly working with external designers. Some of them use CAD technologies. Firm-1 has the design skill at level-3; Firm-2 at level-3; Firm-3 at level-3; Firm-4 at level-3; Firm- 5 at level-3; Firm-6 at level-3; Firm-7 at level-2; Firm-8 at level-3; and Firm-9 at level-3. So, the overall firmlevel design resource allocation of housing industry is close to level Design Organization (D2): Most of the firms understand the design responsibilities and procedures. Few of them follow the multidisciplinary team approach and working in CAD environment to contribute the design solutions. Firm-1 has the design organization at level-3; Firm-2 at level-3; Firm-3 at level-3; Firm-4 within level-3 to level-4; Firm-5 within level-2 to level-3; Firm-6 at level-3; Firm-7 at level-2; Firm-8 at level-3; and Firm-9 at level-3. So, the overall firm-level design organization in the housing industry is above the level Culture for Design The firms have some commitment towards design activities. Few of the firms take the design decisions promptly and use participatory approach Design Commitment In most of the firms, the seniors show some kind of interest and commitment towards design activities. Few of them are found very enthusiastic on implementing CAD technologies. Firm-1 has the design commitment at level-4; Firm-2 at leve-3; Firm-3 at level-3; Firm-4 at level-2; Firm-5 at level-2; Firm-6 within level-3 to level- 4; Firm-7 at level-2; Firm-8 at level-2; and Firm-9 at level-3. So, the overall firm-level design commitment of housing industry is close to level Design Attitude Most of the firms have lack of positive attitude in design management. Few of the seniors inn the firms only understand the importance of design, especially CAD technologies, in business. Firm-1 has the design attitude at level-4; Firm-2 at level-4; Firm-3 at level-4; Firm-4 at level-2; Firm-5 at level-2; Firm-6 within level-3 to level-4; Firm-7 at level-2; Firm-8 at level-3; and Firm-9 at level-3. So, the overall firm-level design attitude of housing industry is at level Design Capability Based on the responses, the firms possess an average capability of slightly lower than level-3 in terms of planning; slightly lower than level-3 in terms of process; level-3 in terms of resource; level-3 in terms of people; and level-3 in terms of culture for design. The survey further held a deep interaction with the respondents to capture more details and did a better assessment. Therefore, the overall firm-level design capability of the housing industry is at level Manufacturing Competitiveness Based on the analysis and interpretation of both positively and negatively influencing factors, the overall competitiveness of the housing industry is estimated. The major dimensions under considerations for estimating the firm-level manufacturing competitiveness of the housing industry are cost, quality, flexibility and time of delivery. Current study reveals the cost factor to be at level-3 (i.e. slightly low cost), quality at level-3 (i.e. slightly high quality), flexibility at level-2 (i.e. slightly low flexibility), and time at level-3 (i.e. slightly well timed). The survey further held a deep interaction with the respondents to capture more details and did a better assessment. So, the overall firm-level manufacturing competitive competitiveness of the housing industry is at level Design Technology Absorption Based on the analysis and interpretation of the design technologies practice the firm-level absorption of design technology is assessed. Some of the firms do planning and designing to deal with products, customers, market and competition all concurrently. Few of them integrate the design activities by using soft technologies like CAD and CE. So, the firm-level absorption of soft design technologies in the housing industry is rated at business of Firm-1 is above level-2. ISSN: August Page 5

6 4. Recommendations to the Housing Industry After looking at the analysis and interpretations of the firm-level business processes of the housing industry, following recommendations are made in this study. 4.1 Recommendations for enhancing the design capability The firms should frame their business plans by making it inclusive of all functions. The plans should be prepared duly analysing the internal and external factors of the business. The importance of design investment should be understood and recognized. The communication need to be effective, if necessary, by changing the management style (e.g. conducting meetings frequently; designing the work environments; and communication channels like intranet and intranet). Suitable planning tools, techniques and procedures need to be introduced for developing a structured thinking or extending the design planning horizons. The firms should learn from the past failures and success to reflect on the current practice. Thus a continuous improvement of the design processes and projects are possible. The firms should look for enhancing the in-house design expertise with timely support from local design agencies. Design teams should use various tools, techniques and software for planning and monitoring the progress of design projects. The people in the business need to be trained on allocating the resources for design. Everybody in the business should understand the short term and long term benefits that might accrue from design. The design team should remain committed to use different design tools and techniques to benefit from all projects, which is possible with complete understanding of the design process, the design related discussions and debates, and studying the best practices. Demonstrations of successful case studies should be done to create a positive attitude towards design activities. People from all levels need to be involved in design decisions by contributing new ideas, products, processes thereby creating belongingness towards the organization and a positive attitude towards design. 4.2 Recommendations for enhancing the manufacturing competitiveness The firms need to improve the negatively influencing factors and strengthen the positively influencing factors to enhance the overall firm-level competitiveness of the housing industry. The cost, quality and time factors have the scope for improving to the level-4 form level-3; whereas the flexibility factor has still larger scope for improving to level-4 from level-2. These are all possible with an organization wide approach of design thinking so that everything is planned and performed by keeping the lifetime issues in mind for the total supply chain of the business. So, all it requires are better planning, processes, resource allocations, skills and culture for design. In other words, a higher design capability can enhance the manufacturing competitiveness. 4.3 Recommendations for enhancing the design technology absorption Most of the firms use intelligent CAD technologies in the business for preparing and reviewing the designs. The design thinking approach can be adopted in the firms to absorb intelligent CAD. The designers of the firms need to be skilled to work and communicate in a high-level CAD environment. Seniors and top-level managers should exhibit higher commitments towards CAD. Budgets of the firms should be prepared and projected by computer-aided allocations to various design activities so as to manage the risks and returns on investment. Firms should also implement computer-aided planning for all resources because it is often backed up with some structured thinking. Every firm should understand where design fits in their business and suitably adopt CAD and CE. The firms should reasonably handle all of their design activities internally and exceptionally by using outside design expertise. 5. Discussion The design capability, manufacturing competitiveness and design technology absorption in the housing firms under study are discussed in this section (see table 3 and table 4). Their correlation and impact on each other are discussed here. The design capability scores are taken from the summary of responses (see table 1). The competitiveness scores of the firms are calculated as the average of competencies rated against the dimensions of cost, quality, flexibility and time (of delivery) for each firm. The technology absorption scores are studied from the use of intelligent CAD in different functional areas and the extent of application as described by each firm. The extended discussions with the promoters and developers and then the study of secondary sources of information from the Housing Industry led to following findings and interpretations: The real estate business does construction of houses, colonies, apartments etc. while adhering just to the government rules for the sake of qualifying. A housing project is deemed to be legally and functionally abided by the rules and norms of Bhubaneswar Development Authority (BDA). However, it has been difficult for the builders in the state to access the accurate information and to remain updated all the time. This indicates a consistently required design support for performance as well as conformance. ISSN: August Page 6

7 The success of some companies is attributed to their commitment for delivering the best. They have the required expertise and technology with intensive focus towards the customer service. This has made their organization trustworthy. But, to remain competitive there is a need of skill and technology, use of intelligent CAD and concurrent engineering in the business practice. The promoters have shown their design capability mostly in the areas of engineering and architecture, housing finance, and marketing, but not much in managing collaboration, integration, and concurrent practices in the business. Successful firms have introduced multiple project locations, variety of houses and flats with other amenities and some degree of customization to meet the customers choices and preferences. However, they need to operate with excellence in all dimensions by managing better the designs for planning, process, resources, people, and culture. 6. Challenges for the Industry It is learned through detailed discussions that the industry is facing the following challenges: Non -availability of quality manpower in the locality Rise of manpower and material costs in the locality Delay in plan approval and clearance remains the biggest regulatory challenge Realization of the need for an apex regulatory authority/council to facilitate transparency In the prevailing environment of challenges the industry is adopting the following major dimensions of customization in construction business: Product/ Service - designing and developing of a house on computer or drawing sheet Planning - architectural planning of housing product in different project sites Process - from land purchase to approval of BDA to construction of houses People designers, engineers and marketing executives are selected by their skills Promises - commitments are tried to be retained through delivery of quality and timeliness. o Vision to provide residential and commercial properties at affordable prices. o Proposing buyback arrangement, backing up with rent facility, compensating for all types of delays, facilitating easy bank loans etc. 7. Conclusion The business processes and services in the industry are not alike. Still all of them expect to have equal competitiveness of the best practicing firms. So, in this context, they should adopt different strategies for different products and different degree of customization where every organization need to remain competitive by differentiating its business with design capability and absorption of intelligent computer-aided design technology. A successful firm keeps track of its customer even in terms of his income, affordability, borrowing capacity, preferences, alternatives and the demand for housing. The supply of housing needs to be tracked by factors like availability of land, efficiency of builders, accessibility of credit and skilled labor in the entire supply chain. The firms should look for complete absorption of intelligent technologies, instead of merely investing the time and money in the business. This is possible by enhancing the design capability, for its multidisciplinary nature of bringing continuous and concurrent effort. CAD should not merely be seen as a drawing/drafting tool, but as an intelligent design technology. Design should be seen as a strategy of sustainability with clarity of benefits at all levels. Designers should therefore be involved in the top level of management discussions. The firm should show commitment to design by allocating resources to design projects. The top management should enhance and update the in-house design capabilities by involving its entire staff in the design process leading to a positive attitude towards design without feeling it to be a specialist s task. Biranchi Prasad Panda, Assistant Professor, School of Management, KIIT University, India Biswajit Das*, Professor, School of Management, KIIT University, India References Anumba, C. J., Baugh, C., and Khalfan, M. M. A. (2002). Organizational structures to support concurrent engineering in construction. Industrial Management & Data Systems, 102(5), Behuria, N. C. (1990). Orissa State Gazetteer. Gazetteers Unit, Ed. 30 July, 1990, Orissa State, I (IV), Behuria, N. C. (1991). Orissa State Gazetteer. Gazetteers Unit, Ed. 24 December, 1991, Orissa State, III, Bessant, J. and Bruce, M. (2002). Design in Business: Strategic Innovation through Design. Pearson Education. Bessant, J. and Francis, D. (2005). Transferring soft technologies: exploring adaptive theory. International Journal of Technology Management and Sustainable Development, 4(2), Brookes, N. J. and Backhouse, C. J. (1998). Understanding concurrent engineering implementation: a case-study approach. International Journal of Production Research, 36(11), ISSN: August Page 7

8 Das, B. and Pani, A.S. (2006). Real Estate Market (New Economy New Business). Excel Books, New Delhi. Figure 1: The Embedded Case of Housing Industry Table 1: Numerical representation of design capability as a Summary of Responses Table 2: Design Capabilities of nine firms shown on Radar Charts F1 R1 F6 R9 R10 ISSN: August Page 8

9 R11 R12 R13 F2 R2 F7 R14 R15 R16 F3 R3 F8 R17 R4 R18 R19 F4 R5 F9 R20 R6 NOTE F1 F9 represent nine hosing firms under study. R7 R1 R19 represent the respondents under study. Axis details: the levels of capabilities in terms of planning, process, resource, people and culture for design. F5 R8 Table 3: Design Capability, Competitiveness and Technology Absorption of Nine Housing Firms Firms Design Capability Competitiveness Technology Absorption ISSN: August Page 9

10 Competitiveness Technology Absorption Competitiveness International Journal of Business and Management Tomorrow Vol. 3 No. 8 Table 4: Correlation between Design Capability, Competitiveness and Technology Absorption of Nine Firms 4 (a) Competitiveness Vs. Design Capability Housing Industry Housing Firms 4 (b) Technology Absorption Vs. Design Capability Housing Industry Housing Firms 4 (c) Competitiveness Vs. Technology Absorption Housing Industry Housing Firms Design Capability The data points are close to the best fit trend line in the scatter diagram. The trend shows that the increase in the design capability increases the competitiveness. So the firms should look for enhancing their design capability further to remain more competitive Design Capability The data points are not very close to the best fit trend line in the scatter diagram. So more responses are required. The trend shows that the increase in the design capability increases the technology absorption. So the firms should look for enhance their design capability for more technology absorption Technology Absorption The data points are not very close to the best fit trend line in the scatter diagram. The trend shows a negative impact of technology absorption on the competitiveness. So the firms should look for full and intelligent technology absorption, not a mere investment, to enhance their competitiveness possibly by enhancing the design capability. ISSN: August Page 10