Framework for evaluating the various costs and benefits issues associated with developing a new technology prodcut.

1. How mechanical engineers can make a
technological splash
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2. The Business Side of Evaluating
(Mechanical) Technology Innovation
Andrew.maxwell@lassonde.yorku.ca

3. Aspects of Technology Assessment
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4. Assessing viability of new engineering technology
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Five important questions:
• What does the technology do?
• Who would value each of these functions?
• Who would be most motivated to adopt this technology?
• What are the costs and benefits of adoption?
• What other factors would affect the adoption decision?

5. What does the technology do?
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• How does the technology work?
• What are the functions that you can perform with the technology?
• On what dimensions would you measure performance?
• Safety Reliability
• Convenience Capital cost
• Operating cost Compliance
• Quality Environmental lifecycle

6. Who would value each of these functions?
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• Is solution a pain killer or a vitamin?
• Which potential users would value each of these functions:
• Safety Reliability
• Convenience Capital cost
• Operating cost Compliance
• Quality Environmental lifecycle
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7. Who would be most motivated to adopt this technology?
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A compelling value proposition is one that motivates adoption, where
the costs and risks of adoption are significantly less than the benefits.
The value proposition is linked to the motivation to adopt, which is
linked to the difference between the benefits and the costs :
• How would you quantify the benefits?
• How can you demonstrate the benefits?
• How does the competitive environment influence willingness to
adopt?

8. What are the costs of adoption?
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How do you assess the costs:
• Capital and operating costs
• Cash flow
• Net present value or internal rate of return
• Payback
• How do you compare the costs and the benefits?

9. Maxwell’s three laws of innovation inertia
1. There is a natural tendency for organizations to keep doing what
they’re doing and resist changes. In the absence of a force, they will
continue to do what they’ve always done.
2. Larger organizations require more force to change what they are
doing than smaller organizations.
3. For every force there is a reaction force that is equal in size, but
opposite in direction. When someone exerts a force on an
organization, he or she gets pushed back in the opposite direction
equally hard.
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10. What other factors would affect the adoption decision?
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• What are the technology risks?
• What are the implementation risks?
• What are the business risks?

11. What are the technology risks?
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• Reliability?
• External validation?
• What is the state of technology readiness?
• What is the minimum viable product?

12. What are the implementation risks?
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• What will you have to change to implement the solution?
• Who makes the decision?
• Who will it affect (and how)?
• Can you embed technological solutions to reduce impediments to
implementation?
• What are the operational constraints for the user (Time, space, cost….)?

13. What are the business risks?
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• What is the reputation of the supplier?
• How will you get support?
• What are the service issues?
• What is your current or anticipated relationship with the potential
supplier or potential customer?

14. NASA’s Technology Readiness Level

15. Parting thoughts
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• The development of a new technology that is adopted by users is
more complex than it appears
• Better understanding the various issues will increase the likelihood
that innovative technologies you develop are adopted in the market,
and commercially successful