Bringing%20Technology%20to%20Market

1
Bringing Technology to Market

• Presented by
• Dr. Jeffrey Alves
• September 2009

2
Agenda

• Technology in action
• Historical perspective
• Sources of innovation opportunity
• Process of bringing technology to market
• Examples
• The next sea change?

3
(No Transcript)
4
(No Transcript)
5
(No Transcript)
6
(No Transcript)
7

• Technology
• things and processes
• Market
• customers/users

• Value

8
Historic Perspective Time for Technology to
Spread to 25 of Population
Household electricity (1873) 46
yrs Telephone (1875)
35 yrs Automobile (1885)
55 yrs Air Travel (1903)
54 yrs Radio (1903)
22 yrs PC
(1975)
15 yrs Cellular phone (1984)
13 yrs Internet
7 yrs Ipod
5
yrs
9
Industries lt 30 Years Old

• Personal Computers
• Biotechnology
• Wireless cable TV
• Fast oil changes
• PC software
• Desktop information
• Wireless communications/ handheld devices/ PDAs

• Healthful living products
• Electronic paging
• CAD/CAM
• Voice mail technology
• Cellular phone services
• CD-ROM
• Internet publishing shopping

10
Industries lt 30 Years Old MORE!

• Desktop computing
• Virtual imaging
• Convenience food superstores
• Pet care services
• Voice over internet applications
• Green buildings

• Large, scalable, wind solar power systems
• Biofuels bio materials
• Cloud computing

11
Where Are Opportunities Born?

• Technology sea change
• Market sea change
• Societal sea change
• Brontosaurus factor
• Irrational exuberance

12
Types of Innovation

• Invention
• Extension
• Duplication
• Synthesis

13
Commercialization of Technology

• 99.9 fail - 1 out of 5000 inventions have
  successful product launches. 
• 99.8 fail.  Only 3,000 patents out of 1.5
  million patents are commercially viable.

14
Bring Technology to Market A Process
15
Discovering

• Basic RD
• Application development
• Process/manufacturing research
• Market feedback

16
Developing

• Prototype development testing
• Market research testing
• Manufacturing feasibility
• Business plan

17
Doing

• Launch
• Growing
• Sustaining

18
One Companys Approach
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Build Knowledge Determine Feasibility Test Practicality Prove Profitability Commercialize
RD v v v v v
Mfg v v v v v
Marketing v v v v v
Controller v v v v v
19
Stage 1 Build Knowledge

• Obtain fundamental knowledge
• Seek ideas (unique phenomena, discontinuities,
  opportunities, customer needs)
• Advance state-of-the-art techniques
• Establish team

20
Stage 2 Determine Feasibility

• Narrow alternatives
• Develop idealized specs from customers
• Demonstrate at experimental level
• Investigate competition

21
Stage 3 Test Practicality

• Develop prototype and manufacturing process
• Test prototype in lab with customers
• Estimate manufacturing costs investment
  requirements
• Develop preliminary marketing plan. Thoroughly
  assess competitive response.

22
Stage 4 Prove Profitability

• Make samples in pilot or best product/ process to
  achieve specs
• Sell samples to target customers
• Set project timing based on window of opportunity
  manufacturing requirements
• Finalize market plan. Write funding request.

23
Stage 5 Commercialize

• Design, build, install, debug, run production
  line
• Launch product, sell product, grow business
• Increase profitability through quality
  improvements, manufacturing cost reduction,
  product extensions renewals

24
(No Transcript)
25
(No Transcript)
26
10 Famous Product Failures and the
advertisements that did not sell them

• Show me

27
The Next Sea Change?
28
Sources of Growth Historical Success Rates
New
35 success 5 success
Technology
50 success 15 success
Existing
Market
New
Existing
29

• Man will not fly for fifty years. Orville
  Wright, 1901
• The nickel-iron battery will put the gasoline
  buggy out of existence in no time. Thomas A.
  Edison, 1910
• There is a world market for about five
  computers. Thomas J Watson, IBM

30

• Well informed people know it is impossible to
  transmit the voice over wires and that were it
  possible to do so, the thing would be of no
  practical value. 1865, The Boston Globe
• X-rays will prove to be a hoax. William
  Thomson, Lord Kelvin, President of the Royal
  Society