To use the simplest example: a hammer is the technology, and “hitting nails” (or thumbs) is the functionality. If you were talking about a complex computer system or network, it would be necessary to look at the technical building blocks used to assemble the system – combinations of hardware and software – and the interactions between them. Think about aspects of the technical performance, such as transaction speed or quality, reliability, latency, etc.; try to forget about the commercial applications of the technology, except insofar as the technical performance may be failing to meet performance objectives related to that commercial intent.
It should be noted that business risk is not the same thing as technological uncertainty, because a business risk may be addressed through purely routine or standard approaches. Failing to meet a business goal, or the risk of it, isn’t the same as a technological uncertainty, which begins when standard approaches to a technology problem have failed or have been ruled out.
Returning to the hammer example: hitting one’s thumb would be a business risk – but inventing a hammer that can tell the difference between a thumb and a nail, that would be a technological advancement.