Technology Marketing Principles and Methodologies 2001.11.09 Kim Han Joo, Techno MBA E-mail: hjkim60x@hanmail.net Mobile:018-223-8230

Table of contents 1. The concept of marketing 2. The concept of Technology Marketing(TM) 3. The methodology of TM - Before Service - In Service - After Service 4. Technology Evaluation 5. Summary

Learning Focus What is Technology Marketing? Who is doing Technology Marketing? Why we do Technology Marketing Whom we do Technology Marketing for? Where we do Technology Marketing? How we do Technology Marketing?

1. The concept of marketing Product Company Customer Cash Survival & Growth Satisfaction of needs Exchange * Sales: One way (Company’s push) * Marketing: Two way (Customer’s pull & Company’ push)

The concept of Marketing The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. * 4P of marketing are Product, Price, Place, Promotion * The current concept of Products can include ideas, goods and even services. * Promotion include discount, public ad, sales promotion, sales forces operation, public relationship. * Customer can be individual and organization.

The relationship between Marketing and R&D 70% of R&D investment is being used for product development. 60- 80% of successful products are based on satisfying market’s needs. The cross function between marketing and R&D is inevitable & prerequisite for successful R&D project execution. The innovative company is producing the products with marketability. The feed back of latent needs from customers in the market is very important for R&D activities.

2. The concept of Technology Marketing The process of facilitating the planning, progressing, and commercialization of R&D projects to make a dominant design for a successful business which satisfy customers and markets. * CFT activities, technology & market trend analysis for project planning stage. * Technology outsourcing & collaboration, tech tree method support for project progressing stage * Technology value evaluation, transfer, venturing for commercialization stage.

The role of technology marketing Before service In service After service R&D Project planning R&D Project progressing Commercial -ization Project Goal setting support Feed Back of customer’s latent needs F/B of Market & tech trend Technology outsourcing Functional approach (Tech Tree Method) F/B of Market & tech trend Tech value assessment Negotiation & contracting Business Development (Tech Application)

The role of technology marketing BS:To support researchers with market analysis and competitor’s tech information when the R&D project is being setting up. To support researchers with a prompt feed back of market trend regarding the latent needs of customers in the market. IS: To support researchers with outsourcing the promising technology from the outside origin of innovative technology. To make a functional approach for finding a critical path with tech tree method AS:To evaluate the value of developed technology based on the future market projection. To facilitate the transfer and commercialization of technology for the successful business.

The relationship between TM and other R&D management roles Tech information Tech outsourcing Tech transfer Service for researchers Technology Marketing BS IS AS R&D Project planning R&D Project progressing Commercial -ization R&D IP Service R&D Planning R&D Project Management Patent work Patent analysis Goal setting CFT operation Design Review R&D methodology

3. The Methodology of Technology Marketing Before Service stage (Front End stage) - Market Potential Analysis - Cross functional team operation In Service stage (Breakthrough stage) Technology outsourcing Technology Tree Method - Feed back of the latent needs of customers After Service stage (Application stage) Technology value evaluation Technology transfer - The Process of venturing

Market Potential Analysis Market / Sales Potential Method - Chain Ratio Method ex) Total coffee industry volume * Home coffee ratio * Instant coffee ratio = Home Instant coffee market potential Market potential * Market share = Sales potential Sales Forecasting Method - Delphi Method - Trend Projection - Seasonal Variation

Cross Functional Team Operation Why CFT operation? R&D Project goal setting is very important. Concurrent engineering concept can be adopted. “The First or The Best” can be a candidate concept Who join CFT? Researchers, SBU planners. Marketing engineers, IP management R&D method specialists How to do it? Market potential analysis Competitors R&D information searching (Previous patents, thesis survey) SWOT analysis , etc

Technology outsourcing -Stages of Tech outsourcing Hunting Fishing Farming stage Tech survey Tech buying Tech collaboration Recruiting Local organization For researching Standardization action Overseas trip Local liaison office Local lab/ R&D center Org.

Technology Tree Method Functional approach to design of experiment Function necessary for customers can be accomplished by many technological approach. Main Goal of Tech Tree Method To find a promising research subject To find a core technology and research goal The process of Tech Tree Method. Functional analysis of research subject Subdivide the core technology - 1 Target function - Several basic function - Theoretical mechanism of basic function - Hypothesis and technological theme extraction

Feed back of customer’s latent needs The importance of Latent Needs. R&D projects should target the potential needs of market and customers. Periodic feed back can be done through continuous communication with customers. KM can be a method for communication Customer Market KM R&D Development

Technology value evaluation

4. The Evaluation of Technology Marketing Why to evaluate - To motivate the TM engineers - To Upgrade the level of TM activities What to evaluate - Product of TM - People of TM - Process of TM How often to evaluate - Quarterly , Semi -yearly, Yearly

Technology Marketing control process TM goal setting Evaluation index development Actual performance checking Feed back & adjustment - Major Evaluation Index CSI Index of researchers No of CFT participation & the output quality No of Market survey, Focus group interview, etc Tech outsourcing result, Tech acquirement Tech sales volume Tech commercialization (No of ventures, New SBUs)

5. Summary Technology Marketing for the innovation of R&D Customer’s latent need feed back is very important. (Especially in the planning and progressing stage) R&D is not a cost center, but a profit center by TM (Productivity concept should be the ratio of input to output) Outsourcing of technology Commercialization by researching in the marketplace Value Innovation through technology innovation Adopt the 4G R&D concept Develop New Dominant Design KMS activities for new capability and new architecture e - R&D(Off line into On line) The Best or The First