1. Technology Maps

2. © 2000 Jakki Mohr Technology Maps Define a stream of new products (breakthroughs + derivatives) company plans to develop over time. Used for: Commitment to new product development Allocation of resources A flexible blueprint that must be updated regularly

3. © 2000 Jakki Mohr Technology Map: 4-Step Process

4. © 2000 Jakki Mohr 1. Technology Identification Inventory of firms valuable know-how that may be sources of revenue generation Products Processes Such as superior manufacturing skills Management practices Such as knowledge management

5. © 2000 Jakki Mohr 2. Decide on needed additions Where does firm need new skills/products to round out its offering? Make vs. buy decision Internal development External acquisition Partnering

6. © 2000 Jakki Mohr Adding New Technology: Focus on Development Risk Internal Development New development close to existing skills Confidentiality reasons NIH (not invented here): Only good technology is developed internally. External Acquisition Someone else has already developed Save time and effort Let others take risks first Keep up with competitors Obtain technology for existing brand name/marketing resources

7. © 2000 Jakki Mohr 3.Commercialization Decision: What to sell? Focus on Marketing Risk Continuum of options, based on the additional expenditures customers must incur beyond the cost of the purchase to derive the intended benefits of the technology Know-how only Proof of concept Components to OEM Final products to end-user Service bureau

8. © 2000 Jakki Mohr Lean Towards Selling Know-How When: Technology lacks fit with corporate mission Lack of financial resources to exploit technology Tight window of opportunity and lack of speed Market smaller than expected/business unlikely to be profitable When allowing firms access to technology is most appropriate (next slide) When range of technologies in market is diverse

9. © 2000 Jakki Mohr Allow other firms access to technology (license) when: Network externalities: more value as more customers use a product Tends to favor position close to know-how But, know-how hard to price, which pushes away from selling know-how. Seek standardization of technology via licensing, etc. (Aside) Likely customer of know-how? One closest to having knowledge themselves

10. © 2000 Jakki Mohr Lean Toward Selling End- Product When: Firms components are incompatible with general industry standards. What if firm competes at end-product with iconoclastic product? Hard to get third-party developers

11. © 2000 Jakki Mohr Sell at Multiple Points on the What to Sell continuum when Offering technology to competitors may encourage industry standardization License know-how or sell components on an OEM basis Firm may have skills in some segments but not others Major buyers require second source To maximize rate of return on technology investment

12. © 2000 Jakki Mohr A Caveat: International Markets Sales of manufacturing technology and know-how may result in setting up a new low-cost competitor