Taking Technology to Market Commercializing Technology: What the Best Companies Do - PowerPoint PPT Presentation

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Taking Technology to Market Commercializing Technology: What the Best Companies Do

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  1. Taking Technology to Market Commercializing Technology:What the Best Companies Do

  2. Taking Technology to MarketDevelop or Sell • Maximize Return on Technology Investment • Plan for FullestMarket Exploitation of All Technologies • Sell for Lump Sum or Royalty • Direct Sale • License

  3. 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 ?

  4. 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

  5. Technology Life CycleStage 1: Technology Development • Further Development • Strategic Fit; Identifiable Market ? • Financial Resources; Production/Marketing Capabilities • Rate of Return ? • Alternatives • Partnership • Sell

  6. 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

  7. 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)

  8. Technology Life CycleStage 4: Application Growth • Market Value of Technology at Maximum • Timing is Crucial • Factors to Consider • Market Size • Technological Leadership • Standardization

  9. 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

  10. 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

  11. Technology SalesThe Best Strategy “To seek both wide application and standardization of a technology while discouraging other companies from producing substitute technologies”

  12. 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

  13. Commercializing TechnologyThe Commercial Imperative • Proliferation of New Technologies • Rapid Obsolescence of Existing Technologies • Shrinking Product Life Cycles • Technology Diffusion • Cost of Technology Development • Fragmentation of Markets

  14. Commercializing Technology:Measuring Commercialization Capability • Time to Market • Range of Markets • Number of Products • Breadth of Technologies

  15. Loss of Profits Introduced six month late -31.8% Quality problems -> 10% price discount -14.9% Comparability problem -> 10% volume reduction -3.8% Product cost goal exceeded by 10% -3.8% R&D budget overrun by 10% -2.3%

  16. 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