Bringing Technology to Market

Presented by Dr. Jeffrey AlvesSeptember 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) 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

Industries < 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

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 changeMarket sea changeSocietal sea changeBrontosaurus factorIrrational 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

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 √ √ √ √ √

Mfg √ √ √ √ √

Marketing √ √ √ √ √

Controller √ √ √ √ √

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 GrowthHistorical Success Rates

35% success 5% success

50% success 15% success

New

Existing

Existing Market New

Tech

nolo

gy

“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