Lecture 3 Apr 8, Discussion of chosen technologies 2.Lecture Technology and Market Acceptance 3.Case for Thursday

Technology and Market Acceptance Because something can be made does not mean that it should be made or that anybody will buy it

How do you know if someone will want to use your technology?

Grand Challenges of the 21st Century

Discover a methodology for moving Technology efficiently from a University or Industrial Laboratory to commercial exploitation This methodology is much more complex than any technology

Technology driven vs Market driven Technology Driven- we have a technology- now what do we do with it. –What examples can you think of? Market driven- we have a need- what is the best way of satisfying it, i.e. what is the solution (partial or complete) to a problem. –Name some unresolved problems

The Triangle - One way of looking at the business risk of moving into a new technology Market TechnologyCompany

What are these “markets”?

Describe the “pieces of a business” Mfg Logistics RandD Sales Marketing Human resources Financial Top management Public relations Corporate relations

Consider “Business to Business”...

How does Technology Development fit into Business Processes There are three Business Processes all people and activities in the company couple into one or more of these processes 1. Strategic - Answer the questions and implement the answers- What do we wish to be? Who are our customers? What is our value proposition? What are our products? How do we bring these products to the customer? What are our competencies? Who are our competitors? Who are our partners? How do we adopt to changing business conditions? Etc., etc.

Strategic Processes –How does technology couple into this process? IT companies Advanced statistical marketing Feedback from customers Investment in technology prediction products Decision making Organizational software Communications technology How does Technology development fit into Business Processes (cont.)

2. Design/Development - Define the product, Design the product, Transfer the product to manufacturing, Support the product –How does technology couple into this process? Modeling prototyping CAD Testing software and hardware Task management Data management New technolgy for the product How does Technology development fit into Business Processes (cont.)

Make/Market- Take an order, make the product, ship the product, collect the money –How does technology couple into this process? CAM Quality Control Inventory Control Distribution Packaging How does Technology development fit into Business Processes (cont.)

Relationship Between Business Processes Design Development Make/ Market Strategic

Product Life Cycle Design/Development + Make/Market Transition to Mfg Integrate and Test Detailed Design Systems Design Product Concept Technology Readiness Market Needs Manu- facture Research Support

Technology Life Cycle A Initiation B Early Growth C Fast Growth D Maturity A B C D Capability Time

Product Life Cycle A Initiation B Early Growth C Fast Growth D Maturity A B C D Volume Time

Product/Technology Platforms Technology Product A Product B Product C Product D

Product Life Cycle Where do you invest? Where do you reap? Where does manufacturing process change the most? Where should you invest in a new product? Where are the largest profits earned? Where are there the most competitors? Where should you get out of the business (kill the product)? Where is cannibalization (replacing an “obsolete” product) a good idea? Where is it a bad idea? A B C D

Technology Life Cycle Capability Time A B

Technology Life Cycle Capability Time A B Response of A to B

What are examples of a successful defense by A? That is responding to a threat from a new technology by refocusing on current technology. Use a sufficiently large R&D expenditure to keep ahead of the new technology.

Theory of Dominant Design In the initial phase of a technology’s evolution, there are many contending products or designs. These “precipitate” into a dominant design which drives out competitors. Some examples: –QWERTY keyboard –IC Automobile Engine –Operating Systems IBM mainframe Wintel PC –TV –VCR –Palm –Others? Is this one example of “first mover advantage”

Technology Life Cycle How do you know where in the cycle you are?

Technology Life Cycle Capability Time Fast growing Where are the following technologies on the curve? Internet Nuclear power Gas Turbine Quantum Computing Semiconductor IC Air Transport Mechatronics Major appliances TV Genomics Solar Power Wireless communication Electric Vehicles Home construction Space transport Factory Automation Speech Recognition Machine Translation Maturity initial Strategic inflection point

How do you survive a technological discontinuity? Premise: All Industries are subject to technological obsolescence These attacks come from competitors and are linear and to some extent predictable Many attacks come from outside the industry you are in. They could be far-out technologies which are not targeted at the present customer base. There are many of these and most are harmless. But some will be a direct threat to the companies survival To judge which is which subject the technology in question to two tests –Is it competence destroying? –Is the discontinuity a substitute or does it create a broadened product

Technology Management Summary of some thoughts on technology –Innovation driven by social/political and technological change –Technology driven vs market-driven companies/products –Process as the defining activity of companies –Product life cycle –Technology “s” curves As the class evolves, we will develop these further

Claire McCloud from Syllabus Claire McCloud Primary objective: To determine what qualities and skills are necessary to manage a High Technology firm. There are many questions going through Claire's mind? I would like you to address the following: 1.What issues should Claire be considering in her decision to accept or decline the General Manager's position? 2.What are the possible consequences to Claire of saying no? What are the possible consequences of saying yes? 3.What does Claire need to know about the technology to do her job effectively? 4.What are OWS's strengths and weaknesses? 5.What are Claire's strengths and weaknesses? 6.What are the most immediate long and short-term issues Claire should address? 7.Should Claire take the job?