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

2. 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

3. 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 ?

4. 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

5. 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

6. 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

7. 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)

8. 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

9. 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

10. 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

11. 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”

12. 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

13. 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

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

15. 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%

16. 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