1-1 Management of Technology Taking Technology to Market Commercializing Technology: What the Best Companies Do

1-2 Management of Technology Taking Technology to Market Develop or Sell Maximize Return on Technology Investment Plan for Fullest Market Exploitation of All Technologies – Sell for Lump Sum or Royalty Direct Sale License

1-3 Management of Technology Exploiting Technologies Key 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 ?

1-4 Management of Technology Selling Technologies Why ? Costs and Risks of R&D Strategic Fit Limited Protection By Patents Control Technology Diffusion Financial or Production Limitations Import Restrictions Antitrust Legislation

1-5 Management of Technology Technology Life Cycle Stage 1: Technology Development Further Development – Strategic Fit; Identifiable Market ? – Financial Resources; Production/Marketing Capabilities – Rate of Return ? Alternatives – Partnership – Sell

1-6 Management of Technology Technology Life Cycle Stage 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

1-7 Management of Technology Technology Life Cycle Stage 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)

1-8 Management of Technology Technology Life Cycle Stage 4: Application Growth Market Value of Technology at Maximum Timing is Crucial Factors to Consider – Market Size – Technological Leadership – Standardization

1-9 Management of Technology 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

1-10 Management of Technology Technology Sales Marketing 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

1-11 Management of Technology Technology Sales The Best Strategy “To seek both wide application and standardization of a technology while discouraging other companies from producing substitute technologies”

1-12 Management of Technology 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

1-13 Management of Technology Commercializing Technology The Commercial Imperative Proliferation of New Technologies Rapid Obsolescence of Existing Technologies Shrinking Product Life Cycles Technology Diffusion Cost of Technology Development Fragmentation of Markets

1-14 Management of Technology Commercializing Technology: Measuring Commercialization Capability Time to Market Range of Markets Number of Products Breadth of Technologies

1-15 Management of Technology Introduced six month late -31.8% -14.9% -3.8% -2.3% Loss of Profits Quality problems -> 10% price discount Comparability problem -> 10% volume reduction Product cost goal exceeded by 10% R&D budget overrun by 10%

1-16 Management of Technology 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