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Technology Integration:Turning Great Research

into Great Products

Technology IntegrationWhat Is It ?

• Approach that Firms Use to Choose and Refine Technologies Employed in New Product, Process, or Service

Technology IntegrationWhat Is It Good For?

• Translating R&D Efforts into Products– Rapidly– Efficiently– Satisfy Market Needs– Easy to Make– Return on R&D Investment

Technology IntegrationWhy Is It Important ?

• Technological Proliferation– Lots of Technologies– Lots of Sources– Lots of Choices

• Technology Change and Unpredictability

• Short Product Life Cycles

• Increased Competition

Technology IntegrationHow It Was Done (Poorly)

• Explore and Select New Technologies– Isolated Research Groups

• Refine Technologies– Development Organization

• Debug and Produce– Manufacturing Organization

• No Integration

Technology Integration

Internal/External sources

R

R

R

R

Development

Development

Development

Development

Integration

Technology IntegrationU.S. Model

• Applied Science/Basic Research Mix

• Diverse Base of Suppliers and Partners (University, consortia, small firms)

• Integrator - Responsibility for Concept Development

• Consider Wide Range of Technologies

• “Refreshing” Project Teams (New hires)

Technology Integrationin Japan

• Weaker tradition of university research/fundamental research

• Long-term employment is the norm (difficult to hire from somewhere else)

Technology Integrationin Japan

• Close Links with Suppliers

• strong cross-functional relationship among workers

• involvement for several generations of a product or process

Technology IntegrationJapan Model

• “Network of Integrators”

• Smaller Number of Technological Experiments based on extensive experience

• Incremental improvements (know what works)

• Leverage cultural advantages

Technology IntegrationR&D Organization -- Semiconductor

Percentage U.S. Japan Korea

Long-term employment 14 100 100

Ph. D. degree 59 7 24

No previous R&D experience 34 14 14

One yr. R&D experience 28 34 22

Two yr. R&D experience 23 30 23

More than two R&D experience 15 23 41

Technology IntegrationR&D Organization -- Semiconductor

U.S. Japan Korea

Experimental capacity 1,450 480 417

Average experimental iteration time 16 13 6

Average experimental iteration time 5 7 5

Technology IntegrationR&D Organization

• U.S.– Centralized R&D– Revolutionary Approach

• Japan/Korea– Networked R&D– Evolutionary Approach

Technology IntegrationLessons Learned

• Successful Integration is a Necessity

• Multiple Approaches Can Be Successful

• Approach Must Be Tailored to Local Culture and Conditions

• Leverage Research Capability

• Use Processes to Integrate Research with Markets