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Developing technology based products


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

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Developing technology based products

  1. 1. Developing <br />New technology products<br />Workshop 21st December 2009<br />Murray Hunter<br />
  2. 2. Why are you here?<br />
  3. 3.
  4. 4.
  5. 5.
  6. 6.
  7. 7.
  8. 8.
  9. 9.
  10. 10. What Does it take?<br />
  11. 11. Cultural Paradigm<br />Skills Paradigm<br />Chance & Fate Paradigm<br />Positive Entrepreneur Attributes<br />Strategic Paradigm<br />Interpersonal <br /> Paradigm<br />Personality Paradigm<br />Action Paradigm<br />Creativity Paradigm<br />
  12. 12. Invention<br />Less than 2% of filed patents are ever commercialised<br />Does a new invention have consumer benefits or create any competitive advantage?<br />Can consumers accept the new invention?<br />
  13. 13. Product Evolution<br />
  14. 14. Evolution Verses Revolution<br />Changing Technology (slow to Change)<br />Changing Lifestyles <br />Cheap Clothes Available (substitute)<br />Had to Reinvent the Company due to Slow Product Development<br />
  15. 15. Products more than 5 years old usually don’t make major contributions to a company’s revenue<br /><ul><li>Technology
  16. 16. Consumer style change</li></li></ul><li>Why do companies need Innovation?<br />Products more than 5 years old usually don’t make major contributions to a company’s revenue<br /><ul><li>Technology
  17. 17. Consumer style change</li></li></ul><li>Innovation <br />Under the<br />microscope<br />
  18. 18. Vanilla Breakthrough?<br />Evolution<br />New Flavour – New Product<br />
  19. 19.
  20. 20. Examples of Innovation<br />
  21. 21. Examples of Innovation<br />
  22. 22. Examples of Innovation<br />
  23. 23. Cationic Breakthrough?<br />
  24. 24. To soap or not to soap?<br />
  25. 25. Is this a breakthrough or not?<br />
  26. 26. Prawn fishing successful in Kuala Lumpur<br />
  27. 27. Not all innovations are successful<br />Why did it fail in Perlis?<br />
  28. 28. Not all innovations are successful<br />Because these people in Perlis can fish for free by the roadside<br />
  29. 29. The Myths of Invention<br />
  30. 30. Dispelling the myths about innovation<br /><ul><li>Less than 5% of new products launched </li></ul>on the market are successful<br /><ul><li>Out of 100 new ideas, less than 2 become </li></ul>a commercial reality<br /><ul><li>Most companies are followers and not </li></ul>innovators (even the Body Shop)<br /><ul><li>Very few really novel innovations are </li></ul>ever launched commercially<br /><ul><li>Most new products are incremental steps </li></ul> in enhancement, rather than something <br />completely new (similar to the <br />automobile industry)<br />
  31. 31. Present time<br />The Future<br />The Past<br />A Radical change in technology<br />Will radically change the timeline into a new industry<br />This changes the parallel of the market gradually<br />We know the past and present<br />The effect of competitor innovation will bring product evolution<br />Without any changes our timeline will remain relatively unaltered<br />
  32. 32. Present time<br />The Future<br />The effect of competitor innovation will bring product evolution<br />The Past<br />Without any changes our timeline will remain relatively unaltered<br />This changes the parallel of the market gradually<br />A Radical change in technology<br />We know the past and present<br />Will radically change the timeline into a new industry<br />
  33. 33. Areas of Firm Innovation<br />
  34. 34. Technology/Market Positioning<br />Hotel Coffee Shop<br />Coffee Bean<br />High<br />Style<br />Kedai Kopi<br />Fast Food<br />Low<br />Low<br />High<br />Technology<br />
  35. 35. Many Factors Change Markets and Give rise to Opportunities<br />
  36. 36. Product Lifecycle<br />IP Value &<br />Novelty<br />Potential Profitability<br />IP Value<br />Competitive <br />Risk Taking<br />Concept<br />Risk Taking<br />Profit<br />Late <br />Majority<br />Late <br />Followers<br />Pioneers<br />Early followers<br />Early<br />Majority<br />Time<br />
  37. 37.
  38. 38. What are the <br />sources of innovation?<br />
  39. 39. Sources of Innovation<br />Drucker (1984) Identified seven sources of innovation<br />
  40. 40. Unexpected occurrences unexpected success<br />
  41. 41. Unexpected failure<br />
  42. 42. Incongruities<br />
  43. 43. Process needs<br />
  44. 44. Demographic changes<br />
  45. 45. Industry and Market Changes<br />
  46. 46. Perceptual changes<br />
  47. 47. Knowledge based concepts<br />
  48. 48. Types of Innovation<br />
  49. 49. Invention<br />Totally new product<br />
  50. 50. Extension<br />New use or different application of an already existing product<br />
  51. 51. Duplication<br />Creative replication of an existing concept<br />
  52. 52. Synthesis<br />Combination of existing concepts and factors into new use<br />
  53. 53. Other Examples<br />Teflon<br />Unexpected occurrences<br />
  54. 54. incongruities<br />
  55. 55. incongruities<br />
  56. 56. incongruities<br />
  57. 57. Process Needs<br />
  58. 58. Industry Changes<br />
  59. 59. Demographics<br />
  60. 60. changes in perceptions<br />
  61. 61. New knowledge<br />
  62. 62. Principals of Innovation<br />Scan opportunities through purposeful processes<br />Be both conceptual and perceptual – get out into industry<br />To be effective, it has to be simple and focused – has to be used by average people<br />Pursue ideas that are going to make major change<br />Market knowledge is important<br />
  63. 63. New Knowledge Innovation is the most risky<br /> Better to focus on other sources of innovation: ie, applications of existing ideas and technologies as new knowledge technology development is extremely long term.<br /> Bright ideas are the riskiest source of <br /> innovation and rarely succeed.<br /> Receptability is always the problem<br /> (look at patents files but never <br /> commercialised)<br />Issues about University Commercialization<br />
  64. 64. Introduction<br /> Traditionally Research has been:<br />● Single disciplinary<br />● Followed personal interests of researchers<br />● Research output objectives:<br /> ►a paper<br /> ►a conference presentation<br />● Not part of any strategic research plan<br />
  65. 65. Researchers’ Environment<br />Teaching commitments<br />Intellectual and market isolation<br />Research driven by need of funding<br />Little expectation other than ‘traditional research output’<br />‘Lukewarm’ supportive environment<br />Something that is expected<br />
  66. 66. Typical Research Model<br /> Idea from <br /> Research Institute, <br /> University faculty <br /> or individual <br /> within them<br />Undertake study with objectives interesting to researchers<br /> Project <br /> results and <br /> conclusion<br /> Publish<br /> Primarily <br /> single <br /> discipline <br /> approach<br /> Paper at Conference<br />Add to CV<br /> Objectives based on <br /> discipline thinking<br />Little commercial interest:<br /><ul><li>Private sector unaware
  67. 67. No or limited economic study or little consideration to scale up potential</li></ul>NB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer)<br />
  68. 68. Types of Research<br />Pure Basic Research<br />Experimental and theoretical work undertaken to acquire new knowledge without looking for long-term benefits other than the advancement of knowledge <br />
  69. 69. Types of Research<br />Applied Research<br />Original work undertaken primarily to acquire new knowledge with a specific application in mind <br />
  70. 70. Types of Research<br />Strategic Basic Research<br />Experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas that are expected to lead to useful discoveries<br />
  71. 71. Types of Research<br />Experimental Development<br />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. <br />
  72. 72. Types of Research<br />Experimental Development<br />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. <br />
  73. 73. Types of Research<br />Collaborative Research<br />research projects jointly developed by the university and the external partner <br />
  74. 74. Types of Research<br />Contract Research<br />request made by industry or government agency for a specified research project to be carried out with identified aims & objectives<br />
  75. 75. Types of Research<br />Sponsored Research<br />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 <br />
  76. 76. Types of Research<br />Consultancy<br />project involves buying the skills and expertise (background IP) of university staff, as well as infrastructure to work on a specified project<br />
  77. 77. Types of Research<br />Demonstrative Research<br />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 <br />
  78. 78. Thus research will stem from<br /> Basic Research<br /> to<br /> Applied, Collaborative, demonstrative & <br /> Contract Research<br />
  79. 79. Problems <br />Associated <br />with <br />Commercialization<br />
  80. 80. Problems Associated with Commercialisation<br />Market<br />Technology takers<br />Legal<br />Institutional<br />Technology<br />Other<br />
  81. 81. Market Problems<br />Failure of invention to meet market needs<br />Small size of target market<br />Lower price than expected<br />Unable to gain distribution<br />Lack of market research <br />
  82. 82. Technology Taker Problems<br />Lack of willingness of companies to take up technology<br />Disagreements on terms and conditions of technology transfer<br />Perceived complexity of technology and risk<br />Limited human resources on the part of companies to put time into implementing the new technology or launching the product<br />Not familiar with industry<br />Financially weak<br />Returns not attractive enough<br />High capital expenditure not worth the risk<br />Limited distribution capability <br />
  83. 83. Legal Problems<br />Lack of Clear and clean patent ownership<br />Government regulations<br />Legal costs<br />Due diligence and burden of risk<br />License exclusivity <br />Long period of time for patent grant <br />
  84. 84. Institutional Problems<br />Too many people to deal with at the university or research institute<br />Low priority by university administrators to allocate resources for patents, contract research, consultancy, technology transfer and education services<br />High cost of licensing<br />Post license technical support offered by university<br />Researcher leaves institution<br />Researchers too many projects (time constraint)<br />Lack of expertise in commercialisation unit <br />
  85. 85. Competency and Strength of Research Institutes/Universities<br />Investors expect complete technology transfer<br />R&D Institutes offer to development stage<br />Research<br /> Laboratory<br /> Results<br />Development<br />Pilot Plant/<br />Prototype<br />Commercialisation<br />Industrial <br />Scale<br />Technology <br /> Transfer<br />Strong<br />Moderate/<br />Strong<br />Moderate/Weak<br />Tan Sri Dr. Yusof Basiron, Commercialisation of R&D Outputs – MPOB Ex<br />
  86. 86. Other Problems<br />Unreliable financial estimates<br />Rely on Government grant that never comes<br />Poor follow up <br />
  87. 87. University Organisation <br />Hierarchical<br />Process orientated<br />Procedurised<br />Departmentalised<br />Strong “conformity” values<br />Social goals verses performance goals<br /> THIS IS AN EXCELLENT ORGANISATION DESIGN FOR A TEACHING INSTITUTION<br />
  88. 88. Conflict Between Organisational Design and the Creative Individual <br />Hierarchical design excellent for time and motion activities – In macro terms a teaching organisation is a time and motion logistical exercise<br />An organic organisational structure has been found to be much more supportive of a creative environment <br />
  89. 89. Typical Research Project Structure<br />Problem<br />Potential Applications of Technology<br />Basic Technologies<br />Industry<br />Collaborators Resources<br />Entrepreneurs<br />Potential Product/Process Outcomes<br />Research Institutions<br />Milestones/Expected Outcomes<br />Market or Other Significance for Developed Application<br />Technology Needs<br />Spin-Offs Downstream/Vertical<br /> Solution<br />
  90. 90. A simple Market Driven Research Model<br />Parameters of problem researched with reference to interdisciplinary frames<br />Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements<br />Industry defined problem or issue<br />Laboratory trial<br />Scaling up<br />Process design<br />Industry implementation<br />
  91. 91. Steps in the New Product <br />Development Process<br />
  92. 92. Steps in Commercialisation<br />Adopt Market Driven Research Framework<br />View Research in a Product Development Framework<br />View Technology as a means to problem solving rather than an end (i.e., what basic technologies can be utilised?)<br />Seek to develop a multidisciplinary team with industry representatives<br />
  93. 93. Steps in Commercialisation (Cont)<br />Once established technology, identify its benefit to particular applications<br />Horizontal diversifications<br />Focus on IDS (Information Delivery Systems) for user friendliness<br />Protect IP<br />Show off Potential applications where potential takers are<br />
  94. 94. Some Problems<br />Finding out what the market requires is a skill that needs to be developed<br />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<br />Scientists are used to working in isolation to industry<br />
  95. 95. The Product Development Process<br />Ideation<br />Developing Product Specifications<br />Market and Application Planning<br />Concept and Prototype Generation<br />Product Registration<br />Product Design<br />Further System Development<br />
  96. 96. Steps in the Product Development Process (Cont.)<br />Manufacturing System Design<br />Review Packaging and Product<br />Marketing Review<br />Test Market (Optional)<br />Refining of Product Before Major Launch<br />Major Launch<br />
  97. 97.
  98. 98. Opportunity is a Construct<br />Vision<br />Platform<br />Resources<br />Networks<br />Having the right Skills<br />Product/Market<br />Strategy<br />Ability to make linkages<br />Anchoring a source<br /> of innovation<br />Cognitive, hemispherial & field Perception<br />
  99. 99. Opportunity is a Construct<br />Vision<br />Platform<br />Resources<br />Networks<br />Dream, ego, aspiration, greed, survival, education<br />Experience<br />Reference & Benchmark<br />Having the right Skills<br />Product/Market<br />Strategy<br />Ability to make linkages<br />Anchoring a source<br /> of innovation<br />Cognitive, hemispherial & field Perception<br />
  100. 100.
  101. 101. Figure 11.14. The Risk Matrix for a New Product/Strategy<br />
  102. 102. Intellectual Property<br />
  103. 103. Commercialisation<br />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. <br />
  104. 104. Patent<br />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. <br />
  105. 105. Manner of manufacture<br />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.<br />
  106. 106. Industrial Design<br />An industrial design - or simply a design - is the ornamental or aesthetic aspect of an article produced by industry or handicraft<br />
  107. 107. Trademark<br />Is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise.<br />
  108. 108. Copyright and Related Rights<br />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.<br />
  109. 109. Trade Secrets/Undisclosed Information<br />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.<br />
  110. 110. Why?<br />
  111. 111.
  112. 112. Figure 4. Two Pathways for the Commercialisation of Research<br /> (example for a plant extract)<br />Farm to Consumer As an Intermediate Product<br /> Identification of Active ingredient in <br /> plant<br /> Identification of <br /> Active ingredient in <br /> plant<br />Preliminary ASSAY<br />Preliminary ASSAY<br />Seek advice on market potential<br />Cultivation, harvesting, extraction, refining, stabilisation, etc<br />Cultivation, harvesting, extraction, refining, stabilisation, etc<br />Collaborate<br />Trials in ‘made up’ formulations, eg shampoo, cream<br />Trials in ‘made up’ formulations, eg shampoo, cream<br />Collaborate<br />Various trials and assays<br />Collaborate<br />Go to market and sell product to customers, supermarkets, direct selling, distributors, etc.<br /> Find a distributor<br />Negotiate Agreements<br />(farming, processing, marketing)<br />Product Registration<br />To international market as <br /> a raw material fine <br /> chemical<br />Little IP Generated<br />Most likely to stay in domestic market<br />IP Generated that is transferable for <br /> Value<br />Potentially has a global market<br />Beware of Becoming Dyfunctional<br />
  113. 113. Thank You<br />