1-1 management of technology taking technology to market commercializing technology: what the best...
TRANSCRIPT
1-1Management of Technology
Taking Technology to Market
Commercializing Technology:
What the Best Companies Do
1-2Management of Technology
Taking Technology to Market
Develop or Sell Maximize Return on
Technology Investment Plan for Fullest Market
Exploitation of All Technologies– Sell for Lump Sum or Royalty
• Direct Sale• License
1-3Management of Technology
Exploiting TechnologiesKey Questions
Problems Involved in Selling Giving Away its “Seed Corn” ?
– Jeopardizing the Future How, To Whom, and When ? Relationship Between Sale of
Technology and Sale of Product Based on that Technology ?
1-4Management of Technology
Selling TechnologiesWhy ?
Costs and Risks of R&D Strategic Fit Limited Protection By Patents Control Technology Diffusion Financial or Production
Limitations Import Restrictions Antitrust Legislation
1-5Management of Technology
Technology Life CycleStage 1: Technology
Development Further Development
– Strategic Fit; Identifiable Market ?
– Financial Resources; Production/Marketing Capabilities
– Rate of Return ? Alternatives
– Partnership – Sell
1-6Management of Technology
Technology Life CycleStage 2: Technology
Application Technology To Be Applied To a
New Product High Costs --- New Processes Produce, Sell, or License ?
– Development Costs– Projected Revenues– Cash Position– Perception of Importance
1-7Management of Technology
Technology Life CycleStage 3: Application Launch
Factors Against Licensing– Lack of Skilled Buyers Could Damage Technology’s Reputation
– Long Lead Times– Government Restrictions– “Not Invented Here”– Purchaser’s Resistance to Change– Greater Market Acceptance (Seller)
1-8Management of Technology
Technology Life CycleStage 4: Application Growth
Market Value of Technology at Maximum
Timing is Crucial Factors to Consider
– Market Size– Technological Leadership– Standardization
1-9Management of Technology
Technology Life Cycle
Stage 5: Technology Maturity– Timing Not Crucial– Production Costs Key
Stage 6: Degraded Technology– Third World Markets (not only technology but also experience)
– Technology Middlemen
1-10Management of Technology
Technology SalesMarketing of Technology
Coherent Strategy for Full Portfolio of Technologies
Acquisition/Divestment of Individual Technologies
Value of Direct Sale License/Product Sales
Relationship Reliance on Technology
Marketers
1-11Management of Technology
Technology SalesThe Best Strategy
“To seek both wide application
and standardization of a technology while discouraging other companies from producing substitute technologies”
1-12Management of Technology
Commercializing Technology:
What the Best Companies Do
Commercialization of Technology/ New Product Development; Battleground of the 90s and beyond
Leading Companies – More New Products and Processes– More New Technology– Fast to Market– More Markets
1-13Management of Technology
Commercializing Technology
The Commercial Imperative Proliferation of New Technologies
Rapid Obsolescence of Existing Technologies
Shrinking Product Life Cycles Technology Diffusion Cost of Technology Development Fragmentation of Markets
1-14Management of Technology
Commercializing Technology:
Measuring Commercialization Capability
Time to Market
Range of Markets
Number of Products
Breadth of Technologies
1-15Management of Technology
Introduced six month late
-31.8%
-14.9%
-3.8%
-3.8%
-2.3%
Loss of Profits
Quality problems -> 10% price discount
Comparability problem -> 10% volume reductionProduct cost goal exceeded by 10%
R&D budget overrun by 10%
1-16Management of Technology
Commercializing Technology:
Building Commercialization Capability
The Commercialization Process Make Commercialization a
Priority Set Goals and Benchmarks Build Cross-Functional Skills Promote Hands-On
Management to Speed Action and Decisions