Bringing Technology to Market Presented by Dr. Jeffrey Alves September 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 change Market sea change Societal sea change Brontosaurus factor Irrational 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 DiscoveringDevelopingDoing

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 1Stage 2Stage 3Stage 4Stage 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 Growth Historical Success Rates 35% success 5% success 50% success 15% success New Existing Market New Technology

 “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