Bringing Technology to Market
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Transcript Bringing Technology to Market
Bringing Technology to Market
Presented by
Dr. Jeffrey Alves
September 2009
Agenda
Technology in action
Historical perspective
Sources of innovation & opportunity
Process of bringing technology to market
Examples
The next sea change?
Technology
things and processes
+
Market
customers/users
= Value
Historic Perspective –
Time for Technology to Spread to 25% of
Population
Household electricity (1873)
Telephone (1875)
Automobile (1885)
Air Travel (1903)
Radio (1903)
PC (1975)
Cellular phone (1984)
Internet
Ipod
46 yrs
35 yrs
55 yrs
54 yrs
22 yrs
15 yrs
13 yrs
7 yrs
5 yrs
Industries < 30 Years Old
Personal Computers
Healthful living products
Biotechnology
Electronic paging
Wireless cable TV
CAD/CAM
Fast oil changes
Voice mail technology
PC software
Cellular phone services
Desktop information
CD-ROM
Wireless communications/
handheld devices/ PDAs
Internet publishing &
shopping
Industries < 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
Where Are Opportunities
Born?
Technology sea change
Market sea change
Societal sea change
Brontosaurus factor
Irrational exuberance
Types of Innovation
Invention
Extension
Duplication
Synthesis
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.
Bring Technology to Market:
A Process
Discovering
Developing
Doing
Discovering
Basic R&D
Application development
Process/manufacturing research
Market feedback
Developing
Prototype development & testing
Market research & testing
Manufacturing feasibility
Business plan
Doing
Launch
Growing
Sustaining
One Company’s Approach
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Build
Knowledge
Determine
Feasibility
Test
Practicality
Prove
Profitability
Commercialize
R&D
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Mfg
√
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Marketing
√
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Controller
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Stage 1: Build Knowledge
Obtain fundamental knowledge
Seek ideas (unique phenomena,
discontinuities, opportunities, customer
needs)
Advance state-of-the-art techniques
Establish team
Stage 2: Determine Feasibility
Narrow alternatives
Develop idealized specs from customers
Demonstrate at experimental level
Investigate competition
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.
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.
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
10 Famous Product Failures
… and the advertisements
that did not sell them
Show me
The Next Sea Change?
Sources of Growth
Historical Success Rates
Technology
New
35% success
5% success
50% success
15% success
Existing
Existing
Market
New
“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
“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