Developing technology based products
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Developing technology based products - The principals and issues behind developing technology based products.

Developing technology based products - The principals and issues behind developing technology based products.

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Developing technology based products Developing technology based products Presentation Transcript

  • Developing
    New technology products
    Workshop 21st December 2009
    Murray Hunter
  • Why are you here?
  • What Does it take?
  • Cultural Paradigm
    Skills Paradigm
    Chance & Fate Paradigm
    Positive Entrepreneur Attributes
    Strategic Paradigm
    Interpersonal
    Paradigm
    Personality Paradigm
    Action Paradigm
    Creativity Paradigm
  • Invention
    Less than 2% of filed patents are ever commercialised
    Does a new invention have consumer benefits or create any competitive advantage?
    Can consumers accept the new invention?
  • Product Evolution
  • Evolution Verses Revolution
    Changing Technology (slow to Change)
    Changing Lifestyles
    Cheap Clothes Available (substitute)
    Had to Reinvent the Company due to Slow Product Development
  • Products more than 5 years old usually don’t make major contributions to a company’s revenue
    • Technology
    • Consumer style change
  • Why do companies need Innovation?
    Products more than 5 years old usually don’t make major contributions to a company’s revenue
    • Technology
    • Consumer style change
  • Innovation
    Under the
    microscope
  • Vanilla Breakthrough?
    Evolution
    New Flavour – New Product
  • Examples of Innovation
  • Examples of Innovation
  • Examples of Innovation
  • Cationic Breakthrough?
  • To soap or not to soap?
  • Is this a breakthrough or not?
  • Prawn fishing successful in Kuala Lumpur
  • Not all innovations are successful
    Why did it fail in Perlis?
  • Not all innovations are successful
    Because these people in Perlis can fish for free by the roadside
  • The Myths of Invention
  • Dispelling the myths about innovation
    • Less than 5% of new products launched
    on the market are successful
    • Out of 100 new ideas, less than 2 become
    a commercial reality
    • Most companies are followers and not
    innovators (even the Body Shop)
    • Very few really novel innovations are
    ever launched commercially
    • Most new products are incremental steps
    in enhancement, rather than something
    completely new (similar to the
    automobile industry)
  • Present time
    The Future
    The Past
    A Radical change in technology
    Will radically change the timeline into a new industry
    This changes the parallel of the market gradually
    We know the past and present
    The effect of competitor innovation will bring product evolution
    Without any changes our timeline will remain relatively unaltered
  • Present time
    The Future
    The effect of competitor innovation will bring product evolution
    The Past
    Without any changes our timeline will remain relatively unaltered
    This changes the parallel of the market gradually
    A Radical change in technology
    We know the past and present
    Will radically change the timeline into a new industry
  • Areas of Firm Innovation
  • Technology/Market Positioning
    Hotel Coffee Shop
    Coffee Bean
    High
    Style
    Kedai Kopi
    Fast Food
    Low
    Low
    High
    Technology
  • Many Factors Change Markets and Give rise to Opportunities
  • Product Lifecycle
    IP Value &
    Novelty
    Potential Profitability
    IP Value
    Competitive
    Risk Taking
    Concept
    Risk Taking
    Profit
    Late
    Majority
    Late
    Followers
    Pioneers
    Early followers
    Early
    Majority
    Time
  • What are the
    sources of innovation?
  • Sources of Innovation
    Drucker (1984) Identified seven sources of innovation
  • Unexpected occurrences unexpected success
  • Unexpected failure
  • Incongruities
  • Process needs
  • Demographic changes
  • Industry and Market Changes
  • Perceptual changes
  • Knowledge based concepts
  • Types of Innovation
  • Invention
    Totally new product
  • Extension
    New use or different application of an already existing product
  • Duplication
    Creative replication of an existing concept
  • Synthesis
    Combination of existing concepts and factors into new use
  • Other Examples
    Teflon
    Unexpected occurrences
  • incongruities
  • incongruities
  • incongruities
  • Process Needs
  • Industry Changes
  • Demographics
  • changes in perceptions
  • New knowledge
  • Principals of Innovation
    Scan opportunities through purposeful processes
    Be both conceptual and perceptual – get out into industry
    To be effective, it has to be simple and focused – has to be used by average people
    Pursue ideas that are going to make major change
    Market knowledge is important
  • New Knowledge Innovation is the most risky
    Better to focus on other sources of innovation: ie, applications of existing ideas and technologies as new knowledge technology development is extremely long term.
    Bright ideas are the riskiest source of
    innovation and rarely succeed.
    Receptability is always the problem
    (look at patents files but never
    commercialised)
    Issues about University Commercialization
  • Introduction
    Traditionally Research has been:
    ● Single disciplinary
    ● Followed personal interests of researchers
    ● Research output objectives:
    ►a paper
    ►a conference presentation
    ● Not part of any strategic research plan
  • Researchers’ Environment
    Teaching commitments
    Intellectual and market isolation
    Research driven by need of funding
    Little expectation other than ‘traditional research output’
    ‘Lukewarm’ supportive environment
    Something that is expected
  • Typical Research Model
    Idea from
    Research Institute,
    University faculty
    or individual
    within them
    Undertake study with objectives interesting to researchers
    Project
    results and
    conclusion
    Publish
    Primarily
    single
    discipline
    approach
    Paper at Conference
    Add to CV
    Objectives based on
    discipline thinking
    Little commercial interest:
    • Private sector unaware
    • No or limited economic study or little consideration to scale up potential
    NB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer)
  • Types of Research
    Pure Basic Research
    Experimental and theoretical work undertaken to acquire new knowledge without looking for long-term benefits other than the advancement of knowledge
  • Types of Research
    Applied Research
    Original work undertaken primarily to acquire new knowledge with a specific application in mind
  • Types of Research
    Strategic Basic Research
    Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas that are expected to lead to useful discoveries
  • Types of Research
    Experimental Development
    Systematic work, drawing on existing knowledge gained from research and/or practical experience, that is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed.
  • Types of Research
    Experimental Development
    Systematic work, drawing on existing knowledge gained from research and/or practical experience, that is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed.
  • Types of Research
    Collaborative Research
    research projects jointly developed by the university and the external partner
  • Types of Research
    Contract Research
    request made by industry or government agency for a specified research project to be carried out with identified aims & objectives
  • Types of Research
    Sponsored Research
    granting agencies advertise a call for applications and applications are normally peer reviewed. Research projects are normally basic or strategic but not normally concerned with commercial outcomes
  • Types of Research
    Consultancy
    project involves buying the skills and expertise (background IP) of university staff, as well as infrastructure to work on a specified project
  • Types of Research
    Demonstrative Research
    Seeks to answer a question or solve a problem from data collected, usually un-replicated, for the purposes of demonstrating a concept or process to a group, or a method, part of skill development or experiential learning
  • Thus research will stem from
    Basic Research
    to
    Applied, Collaborative, demonstrative &
    Contract Research
  • Problems
    Associated
    with
    Commercialization
  • Problems Associated with Commercialisation
    Market
    Technology takers
    Legal
    Institutional
    Technology
    Other
  • Market Problems
    Failure of invention to meet market needs
    Small size of target market
    Lower price than expected
    Unable to gain distribution
    Lack of market research
  • Technology Taker Problems
    Lack of willingness of companies to take up technology
    Disagreements on terms and conditions of technology transfer
    Perceived complexity of technology and risk
    Limited human resources on the part of companies to put time into implementing the new technology or launching the product
    Not familiar with industry
    Financially weak
    Returns not attractive enough
    High capital expenditure not worth the risk
    Limited distribution capability
  • Legal Problems
    Lack of Clear and clean patent ownership
    Government regulations
    Legal costs
    Due diligence and burden of risk
    License exclusivity
    Long period of time for patent grant
  • Institutional Problems
    Too many people to deal with at the university or research institute
    Low priority by university administrators to allocate resources for patents, contract research, consultancy, technology transfer and education services
    High cost of licensing
    Post license technical support offered by university
    Researcher leaves institution
    Researchers too many projects (time constraint)
    Lack of expertise in commercialisation unit
  • Competency and Strength of Research Institutes/Universities
    Investors expect complete technology transfer
    R&D Institutes offer to development stage
    Research
    Laboratory
    Results
    Development
    Pilot Plant/
    Prototype
    Commercialisation
    Industrial
    Scale
    Technology
    Transfer
    Strong
    Moderate/
    Strong
    Moderate/Weak
    Tan Sri Dr. Yusof Basiron, Commercialisation of R&D Outputs – MPOB Ex
  • Other Problems
    Unreliable financial estimates
    Rely on Government grant that never comes
    Poor follow up
  • University Organisation
    Hierarchical
    Process orientated
    Procedurised
    Departmentalised
    Strong “conformity” values
    Social goals verses performance goals
    THIS IS AN EXCELLENT ORGANISATION DESIGN FOR A TEACHING INSTITUTION
  • Conflict Between Organisational Design and the Creative Individual
    Hierarchical design excellent for time and motion activities – In macro terms a teaching organisation is a time and motion logistical exercise
    An organic organisational structure has been found to be much more supportive of a creative environment
  • Typical Research Project Structure
    Problem
    Potential Applications of Technology
    Basic Technologies
    Industry
    Collaborators Resources
    Entrepreneurs
    Potential Product/Process Outcomes
    Research Institutions
    Milestones/Expected Outcomes
    Market or Other Significance for Developed Application
    Technology Needs
    Spin-Offs Downstream/Vertical
    Solution
  • A simple Market Driven Research Model
    Parameters of problem researched with reference to interdisciplinary frames
    Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements
    Industry defined problem or issue
    Laboratory trial
    Scaling up
    Process design
    Industry implementation
  • Steps in the New Product
    Development Process
  • Steps in Commercialisation
    Adopt Market Driven Research Framework
    View Research in a Product Development Framework
    View Technology as a means to problem solving rather than an end (i.e., what basic technologies can be utilised?)
    Seek to develop a multidisciplinary team with industry representatives
  • Steps in Commercialisation (Cont)
    Once established technology, identify its benefit to particular applications
    Horizontal diversifications
    Focus on IDS (Information Delivery Systems) for user friendliness
    Protect IP
    Show off Potential applications where potential takers are
  • Some Problems
    Finding out what the market requires is a skill that needs to be developed
    There may be no companies involved in a particular niche of an industry sector that we are interested in – This is another barrier to commercialisation in Malaysia
    Scientists are used to working in isolation to industry
  • The Product Development Process
    Ideation
    Developing Product Specifications
    Market and Application Planning
    Concept and Prototype Generation
    Product Registration
    Product Design
    Further System Development
  • Steps in the Product Development Process (Cont.)
    Manufacturing System Design
    Review Packaging and Product
    Marketing Review
    Test Market (Optional)
    Refining of Product Before Major Launch
    Major Launch
  • Opportunity is a Construct
    Vision
    Platform
    Resources
    Networks
    Having the right Skills
    Product/Market
    Strategy
    Ability to make linkages
    Anchoring a source
    of innovation
    Cognitive, hemispherial & field Perception
  • Opportunity is a Construct
    Vision
    Platform
    Resources
    Networks
    Dream, ego, aspiration, greed, survival, education
    Experience
    Reference & Benchmark
    Having the right Skills
    Product/Market
    Strategy
    Ability to make linkages
    Anchoring a source
    of innovation
    Cognitive, hemispherial & field Perception
  • Figure 11.14. The Risk Matrix for a New Product/Strategy
  • Intellectual Property
  • Commercialisation
    Commercialisation of intellectual property is taking or using the idea, expression, invention, process or other intangible item to the marketplace for the benefit of the holder.
  • Patent
    Is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something, or offers a new technical solution to a problem.
  • Manner of manufacture
    A legal term used to distinguish inventions which are patentable from those which are not. Artistic creations, mathematical methods, plans, schemes or other purely mental processes usually cannot be patented.
  • Industrial Design
    An industrial design - or simply a design - is the ornamental or aesthetic aspect of an article produced by industry or handicraft
  • Trademark
    Is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise.
  • Copyright and Related Rights
    A legal term describing rights given to creators for their literary and artistic works (including computer software). Related rights are granted to performing artists, producers of sound recordings and broadcasting organizations in their radio and television programs.
  • Trade Secrets/Undisclosed Information
    Is protected information which is not generally known among, or readily accessible to, persons that normally deal with the kind of information in question, has commercial value because it is secret, and has been subject to reasonable steps to keep it secret by the person lawfully in control of the information.
  • Why?
  • Figure 4. Two Pathways for the Commercialisation of Research
    (example for a plant extract)
    Farm to Consumer As an Intermediate Product
    Identification of Active ingredient in
    plant
    Identification of
    Active ingredient in
    plant
    Preliminary ASSAY
    Preliminary ASSAY
    Seek advice on market potential
    Cultivation, harvesting, extraction, refining, stabilisation, etc
    Cultivation, harvesting, extraction, refining, stabilisation, etc
    Collaborate
    Trials in ‘made up’ formulations, eg shampoo, cream
    Trials in ‘made up’ formulations, eg shampoo, cream
    Collaborate
    Various trials and assays
    Collaborate
    Go to market and sell product to customers, supermarkets, direct selling, distributors, etc.
    Find a distributor
    Negotiate Agreements
    (farming, processing, marketing)
    Product Registration
    To international market as
    a raw material fine
    chemical
    Little IP Generated
    Most likely to stay in domestic market
    IP Generated that is transferable for
    Value
    Potentially has a global market
    Beware of Becoming Dyfunctional
  • Thank You