STC 380 Converting Technology to Wealth

1
STC 380 Converting Technology to Wealth
Course Objectives Commercialization as a
Process Technology Assessment Snapshot of
the MSSTC Curriculum
2
STC 380 Converting Technology to Wealth
Textbook Commercializing New Technologies,
Getting from Mind to Market. by Vijay Jolly
HBS Press, 1997.
3
STC 380 Converting Technology to Wealth
Improved Technology Commercialization (1990
--) -MacLachlan Improved Information
Processes Improved Technology Acquisition
Processes
4
STC 380 Converting Technology to Wealth
The premise of the course

Process
Results
Results are a consequence of the process
5
STC 380 Converting Technology to Wealth
Commercialization Process
Technology
Wealth
What is our process knowledge? (Knowledge
ability to predict)
6
STC 380 Converting Technology to Wealth
Commercialization Process
Technology
Wealth
What is our process understanding? (Understanding
ability to make it happen)
7

The Process of Technology Commercialization

Subprocesses1 Building the Value of a New
Technology

5. Demonstrate contextually in products and
processes
3. Incubate to define commer- cializability
7. Promote adoption
9. Sustain commercial-ization
1. Imagine the dual (techno-market) insight
4. Mobilize resource for Demo
6. Mobilize market consti-tuents
8. Mobilize complimen-tary assets for delivery
2. Mobilize Interest and endorse-ment
Source Jolly, Vijay. From Mind to Market, 1997
8

The Process of Technology Commercialization

Conceiving of technology commercialization as a
sequence of distinct subprocesses permits the
use of a sequential investment decision
framework based on options theory, which is best
suited for accomodating the long time horizons
and the nature of the risks involved.

Source Jolly, Vijay. From Mind to Market, 1997
9
The Commercialization Stages
Source Jolly, Vijay. From Mind to Market, 1997

• In each stage of the commercialization process, a
  subprocess of activities accepts an input and
  adds value to the input to create an output.

10
Characteristics of the Process
Source Jolly, Vijay. From Mind to Market, 1997

• Each stage/subprocess has independent go/no-go
  decision points
• Each stage/subprocess requires an increasing
  investment
• At each stage/subprocess, investments should
  match the value created
• Uncertainty is high throughout the process
• The sources of uncertainty change

11
Characteristics of the Process (cont.)
Source Jolly, Vijay. From Mind to Market, 1997

• Technology value is measured by what stakeholders
  perceive
• The research at each stage/subprocess must
  interest the stakeholders
• Researchers must manage the expectations of the
  stakeholders

12
Characteristics of the Process (cont.)
Source Jolly, Vijay. From Mind to Market, 1997

• Killing a technology project may be necessary to
  focus resources
• Use current information to judge the technology
  at each stage

13
The Real Value Adding Subprocesses
14
The Imagining Subprocess
Source Jolly, Vijay. From Mind to Market, 1997

• Competition for ideas
• Very high attrition rates
• Very subjective idea judgement
• Technical merit or market factors as decision
  factors
• Least investment in resources

15
The Incubating Subprocess
Source Jolly, Vijay. From Mind to Market, 1997

• Technology commercializability is defined
• Additional stakeholders are brought into the
  process
• Market opportunities are estimated over time
• Often development of other technologies is
  forecast
• Champions and agents can be important
• Greater investments in the technology begin

16
The Demonstrating Subprocess
Source Jolly, Vijay. From Mind to Market, 1997

• The product is developed to a commercially
  feasible stage
• Complimentary technologies may be important
• It may be necessary to expand the scope of the
  technology beyond what was initially foreseen
• Development is with the commercial end- markets
  in mind

17
The Promoting Subprocess
Source Jolly, Vijay. From Mind to Market, 1997

• Market acceptance is never assured -- people
  must be persuaded to adopt the technology
• Ideas that fail in this stage and beyond can
  result in large sunk costs
• Barriers to promotion go beyond the particular
  technology
• The infrastructure can be a barrier

18
The Sustaining Subprocess
Source Jolly, Vijay. From Mind to Market, 1997

• The key to realizing value from a technology is
  sustained market presence
• Sustaining commercialization is a planned
  activity
• Sustaining requires constant improvement in price
  and performance
• Sustaining requires paying attention to
  competitors

19

The Process of Technology Commercialization

Subprocesses1 Building the Value of a New
Technology

5. Demonstrate contextually in products and
processes
3. Incubate to define commer- cializability
7. Promote adoption
9. Sustain commercial-ization
1. Imagine the dual (techno-market) insight
4. Mobilize resource for Demo
6. Mobilize market consti-tuents
8. Mobilize complimen-tary assets for delivery
2. Mobilize Interest and endorse-ment
Source Jolly, Vijay. From Mind to Market, 1997
20

The Process of Technology Commercialization

• Source Jolly, Vijay. From Mind to Market, 1997

5. Demonstrate contextually in products and
processes
3. Incubate to define commer- cializability
7. Promote adoption
9. Sustain commercial-ization
1. Imagine the dual (techno-market) insight
4. Mobilize resource for Demo
6. Mobilize market consti-tuents
8. Mobilize complimen-tary assets for delivery
2. Mobilize Interest and endorse-ment
Bridging the Stages
Bridging the Stages
21
Bridging the Stages
These bridges evoke an important reality about
the innovation process that it is fundamentally
an exercise in stakeholder management.
Source Jolly, Vijay. From Mind to Market, 1997
22
Bridging the Stages
Source Jolly, Vijay. From Mind to Market, 1997

• Critical activities are
• Reaching out
• Interesting others
• Influencing stakeholders and customers

Bridges Satisfying and Mobilizing Stakeholders
at Each Stage (2, 4, 6, 8)
23
Bridging the Stages (continued)
Source Jolly, Vijay. From Mind to Market, 1997

• . Early bridges deal more with technology
  transfer
• Later bridges deal with sales and distribution
  activities
• One constant in each stage is marketing

Bridges Satisfying and Mobilizing Stakeholders
at Each Stage (2, 4, 6, 8)
24
Bridging the Stages
Source Jolly, Vijay. From Mind to Market, 1997

• Advocacy activities . . .
• Mobilize interest of stakeholders
• Mobilize resources to continue the
  commercialization process
• Mobilize market constituents
• Mobilize complimentary assets for delivery

25

The Process of Technology Commercialization

Subprocesses1 Building the Value of a New
Technology

5. Demonstrate contextually in products and
processes
3. Incubate to define commer- cializability
7. Promote adoption
9. Sustain commercial-ization
1. Imagine the dual (techno-market) insight
4. Mobilize resource for Demo
6. Mobilize market consti-tuents
8. Mobilize complimen-tary assets for delivery
2. Mobilize Interest and endorse-ment
Bridging the Stages
Bridging the Stages
Source Jolly, Vijay. From Mind to Market, 1997
26
STC 380 Converting Technology to Wealth
The Jolly Model All models are wrong. Some
are more useful.