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
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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
√
√
√
√
√
Marketing
√
√
√
√
√
Controller
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√
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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
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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


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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
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
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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
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“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