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LECTURE 6: BUSINESS
MODELS OF SCIENCE AND
TECHNOLOGY
INNOVATE OR DIE
• A FAILURE TO INNOVATE IN THE BUSINESS WORLD CAN LEAVE YOU LIMPING
BEHIND COMPETITORS WHO ARE SOARING BECAUSE THEY DECIDED TO UPDATE
THEIR BUSINESS MODEL.
• BUSINESS MUST INNOVATE IN ONE FORM OR ANOTHER:
• PRODUCT INNOVATION
• SYSTEMS INNOVATION
INNOVATE OR DIE
INNOVATE OR DIE: THE TECHNOLOGY S-
CURVE
PRODUCTION INNOVATION: SOLAR CELL
RESEARCH
PRODUCTION INNOVATION: PORTABLE AUDIO
PRODUCTION INNOVATION: CALCULATORS
PRODUCTION INNOVATION: HDD DENSITY
PRODUCTION INNOVATION: MOBILE WIFI
SPEED
SYSTEMS INNOVATION: VIDEO
ENTERTAINMENT DISTRIBUTION
SYSTEMS INNOVATION: 3D PRINTING AND
DISTRIBUTED MANUFACTURING
SYSTEMS INNOVATION: INSURANCE SYSTEM
SYSTEMS INNOVATION: INTERNET OF THINGS
(IOT)
SYSTEMS INNOVATION: FINANCIAL SYSTEM
AND BLOCKCHAIN
SOME SYSTEM INNOVATION VIDEOS
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=8XZRDOLMFGM
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=P9CGT8ZYGGK
• HTTPS://WWW.YOUTUBE.COM/WATCH?V=P2C5OIPC3TG
INNOVATION AT POLICY LEVEL: THAILAND
https://www.boi.go.th/upload/content/Aviation_BOI%20roadshow_Full%20version_5ab4f
INNOVATION AT POLICY LEVEL: CHINA JOINS
WTO
CASE STUDY: JUMPING THE ELECTRICITY GRID
S-CURVE
DC Current
Electric Power
Grid
AC Current
Electric Power
Grid
Distributed
Electric Power
Grid
1878-1900s
1885-present
2007
(first
mention
of Smart
Grid)
THE WAR OF THE CURRENTS: SHORT
SUMMARY
• THE FIRST ELECTRIC POWER MARKET IS DEVELOPED FOR LIGHTING PURPOSES,
WITH THE FOUNDING OF EDISON ELECTRIC LIGHT COMPANY.
• THE PEARL STREET STATION USES ENGINE-DYNAMO TO SUPPLY LOW VOLTAGE
ELECTRICITY IN THE FORM OF DIRECT CURRENT (DC).
• ONE OF THE DISADVANTAGES OF DC IS THE LOW VOLTAGE, RESULTING IN HIGH
CURRENTS AND THEREFORE HIGH I2R LOSSES.
• CONSEQUENTLY, THIS ALSO LIMITS THE SERVICEABLE AREA TO ONLY ONE OR
TWO MILES FROM THE POWER STATION.
THE WAR OF THE CURRENTS: SHORT
SUMMARY
• NIKOLA TESLA PRESENTED A PAPER ON TWO-PHASE AC INDUCTION AND
SYNCHRONOUS MOTORS.
• GEORGE WESTINGHOUSE RECOGNIZED THE ABILITY OF AC ELECTRICITY TO BE
TRANSMITTED OVER LARGE DISTANCES.
• THE INVENTION OF THE AC TRANSFORMER BY WILLIAM STANLEY ALLOWS
VOLTAGES TO BE STEPPED UP, AND THEREFORE, REDUCES CURRENT LOSSES TO
A MINIMUM.
• ELECTRICITY GENERATION CAN NOW BE CENTRALIZED TO PRODUCE ECONOMIES
OF SCALE.
THE WAR OF THE CURRENTS: SHORT
SUMMARY
• TODAY, A NEW PARADIGM SHIFT FROM CENTRALIZED ELECTRIC POWER
PRODUCTION TO DISTRIBUTED PRODUCTION, IN ORDER TO REDUCE WASTE AND
INCORPORATE RENEWABLE ENERGY.
• A SMART GRID USES DIGITAL TECHNOLOGY TO IMPROVE RELIABILITY, SECURITY
AND EFFICIENCY (BOTH ECONOMIC AND ENERGY) OF THE ELECTRIC SYSTEM
FROM LARGE GENERATION, THROUGH THE DELIVERY SYSTEM TO ELECTRICITY
CONSUMERS AND A GROWING NUMBER OF DISTRIBUTED-GENERATION AND
STORAGE RESOURCES.
THE WAR OF THE CURRENTS: SHORT
SUMMARY
• KEY CHARACTERISTICS OF A SMART GRID:
i. ENABLES INFORMED PARTICIPATION BY CUSTOMERS;
ii. ACCOMMODATES ALL GENERATION AND STORAGE OPTIONS;
iii. ENABLES NEW PRODUCTS SERVICES, AND MARKETS;
iv. PROVIDES THE POWER QUALITY FOR THE RANGE OF NEEDS;
v. OPTIMIZES ASSET UTILIZATION AND OPERATING EFFICIENCY;
vi. OPERATES RESILIENTLY TO DISTURBANCES, ATTACKS AND NATURAL DISASTERS.
THE WAR OF THE CURRENTS: SHORT
SUMMARY
• UNDERLYING THE SMART GRID IS THE NEED FOR A TRUSTWORTHY CYBER
INFRASTRUCTURE.
• AS MORE SMART GRID TECHNOLOGIES ARE DEPLOYED, THE RESULT WILL BE A
POWER GRID INCREASINGLY DEPENDENT ON COMMUNICATION AND
COMPUTING.
• DISRUPTIONS IN THIS CYBER INFRASTRUCTURE, EITHER DUE TO ACCIDENTS,
BUGS, OR DELIBERATE ATTACKS COULD RESULT IN WIDE SCALE BLACKOUTS.
THE CURRENT WARS: EDISON VS. TESLA
https://www.youtube.com/watch?v=0-xLkI0NVBo
TAKEAWAYS
• BUSINESSES MUST BE ABLE TO INNOVATE FOR THEIR SURVIVAL AND
CONTINUITY. THERE MUST BE A PARADIGM SHIFT TO JUMP THE
TECHNOLOGICAL PRODUCT OR SYSTEMS S-CURVE.
• AS A BUSINESS OWNER OR ENTREPRENEUR, YOU MUST BE
• OPEN-MINDED ON RADICAL IDEAS THAT CREATE PARADIGM SHIFTS.
• DARING TO TAKE RISKS, AS THE INNOVATION WOULD DEFINITELY BE SOMETHING
THAT IS NOT DONE OR EVEN IMAGINED BEFORE.
• SEARCH FOR AND RECOGNIZE TALENTS OR THE TECHNOLOGY THAT CAN ENABLE
SUCH A PARADIGM SHIFT.

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G0321 lecture 6 business models of science and technology

  • 1. LECTURE 6: BUSINESS MODELS OF SCIENCE AND TECHNOLOGY
  • 2. INNOVATE OR DIE • A FAILURE TO INNOVATE IN THE BUSINESS WORLD CAN LEAVE YOU LIMPING BEHIND COMPETITORS WHO ARE SOARING BECAUSE THEY DECIDED TO UPDATE THEIR BUSINESS MODEL. • BUSINESS MUST INNOVATE IN ONE FORM OR ANOTHER: • PRODUCT INNOVATION • SYSTEMS INNOVATION
  • 4. INNOVATE OR DIE: THE TECHNOLOGY S- CURVE
  • 11. SYSTEMS INNOVATION: 3D PRINTING AND DISTRIBUTED MANUFACTURING
  • 13. SYSTEMS INNOVATION: INTERNET OF THINGS (IOT)
  • 14. SYSTEMS INNOVATION: FINANCIAL SYSTEM AND BLOCKCHAIN
  • 15. SOME SYSTEM INNOVATION VIDEOS • HTTPS://WWW.YOUTUBE.COM/WATCH?V=8XZRDOLMFGM • HTTPS://WWW.YOUTUBE.COM/WATCH?V=P9CGT8ZYGGK • HTTPS://WWW.YOUTUBE.COM/WATCH?V=P2C5OIPC3TG
  • 16. INNOVATION AT POLICY LEVEL: THAILAND https://www.boi.go.th/upload/content/Aviation_BOI%20roadshow_Full%20version_5ab4f
  • 17. INNOVATION AT POLICY LEVEL: CHINA JOINS WTO
  • 18. CASE STUDY: JUMPING THE ELECTRICITY GRID S-CURVE DC Current Electric Power Grid AC Current Electric Power Grid Distributed Electric Power Grid 1878-1900s 1885-present 2007 (first mention of Smart Grid)
  • 19. THE WAR OF THE CURRENTS: SHORT SUMMARY • THE FIRST ELECTRIC POWER MARKET IS DEVELOPED FOR LIGHTING PURPOSES, WITH THE FOUNDING OF EDISON ELECTRIC LIGHT COMPANY. • THE PEARL STREET STATION USES ENGINE-DYNAMO TO SUPPLY LOW VOLTAGE ELECTRICITY IN THE FORM OF DIRECT CURRENT (DC). • ONE OF THE DISADVANTAGES OF DC IS THE LOW VOLTAGE, RESULTING IN HIGH CURRENTS AND THEREFORE HIGH I2R LOSSES. • CONSEQUENTLY, THIS ALSO LIMITS THE SERVICEABLE AREA TO ONLY ONE OR TWO MILES FROM THE POWER STATION.
  • 20. THE WAR OF THE CURRENTS: SHORT SUMMARY • NIKOLA TESLA PRESENTED A PAPER ON TWO-PHASE AC INDUCTION AND SYNCHRONOUS MOTORS. • GEORGE WESTINGHOUSE RECOGNIZED THE ABILITY OF AC ELECTRICITY TO BE TRANSMITTED OVER LARGE DISTANCES. • THE INVENTION OF THE AC TRANSFORMER BY WILLIAM STANLEY ALLOWS VOLTAGES TO BE STEPPED UP, AND THEREFORE, REDUCES CURRENT LOSSES TO A MINIMUM. • ELECTRICITY GENERATION CAN NOW BE CENTRALIZED TO PRODUCE ECONOMIES OF SCALE.
  • 21. THE WAR OF THE CURRENTS: SHORT SUMMARY • TODAY, A NEW PARADIGM SHIFT FROM CENTRALIZED ELECTRIC POWER PRODUCTION TO DISTRIBUTED PRODUCTION, IN ORDER TO REDUCE WASTE AND INCORPORATE RENEWABLE ENERGY. • A SMART GRID USES DIGITAL TECHNOLOGY TO IMPROVE RELIABILITY, SECURITY AND EFFICIENCY (BOTH ECONOMIC AND ENERGY) OF THE ELECTRIC SYSTEM FROM LARGE GENERATION, THROUGH THE DELIVERY SYSTEM TO ELECTRICITY CONSUMERS AND A GROWING NUMBER OF DISTRIBUTED-GENERATION AND STORAGE RESOURCES.
  • 22. THE WAR OF THE CURRENTS: SHORT SUMMARY • KEY CHARACTERISTICS OF A SMART GRID: i. ENABLES INFORMED PARTICIPATION BY CUSTOMERS; ii. ACCOMMODATES ALL GENERATION AND STORAGE OPTIONS; iii. ENABLES NEW PRODUCTS SERVICES, AND MARKETS; iv. PROVIDES THE POWER QUALITY FOR THE RANGE OF NEEDS; v. OPTIMIZES ASSET UTILIZATION AND OPERATING EFFICIENCY; vi. OPERATES RESILIENTLY TO DISTURBANCES, ATTACKS AND NATURAL DISASTERS.
  • 23. THE WAR OF THE CURRENTS: SHORT SUMMARY • UNDERLYING THE SMART GRID IS THE NEED FOR A TRUSTWORTHY CYBER INFRASTRUCTURE. • AS MORE SMART GRID TECHNOLOGIES ARE DEPLOYED, THE RESULT WILL BE A POWER GRID INCREASINGLY DEPENDENT ON COMMUNICATION AND COMPUTING. • DISRUPTIONS IN THIS CYBER INFRASTRUCTURE, EITHER DUE TO ACCIDENTS, BUGS, OR DELIBERATE ATTACKS COULD RESULT IN WIDE SCALE BLACKOUTS.
  • 24. THE CURRENT WARS: EDISON VS. TESLA https://www.youtube.com/watch?v=0-xLkI0NVBo
  • 25. TAKEAWAYS • BUSINESSES MUST BE ABLE TO INNOVATE FOR THEIR SURVIVAL AND CONTINUITY. THERE MUST BE A PARADIGM SHIFT TO JUMP THE TECHNOLOGICAL PRODUCT OR SYSTEMS S-CURVE. • AS A BUSINESS OWNER OR ENTREPRENEUR, YOU MUST BE • OPEN-MINDED ON RADICAL IDEAS THAT CREATE PARADIGM SHIFTS. • DARING TO TAKE RISKS, AS THE INNOVATION WOULD DEFINITELY BE SOMETHING THAT IS NOT DONE OR EVEN IMAGINED BEFORE. • SEARCH FOR AND RECOGNIZE TALENTS OR THE TECHNOLOGY THAT CAN ENABLE SUCH A PARADIGM SHIFT.