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1
Integrated Technology Planning Process
Prepared for:
Technology Management and Commercialization
Training Workshop
Prepared by:
Dr. Chulho Park
Vice President
Strategic Business Insights
December 2017
2
Introduction of SBI’s Technology
Management Process
3
Technology Management Addresses Critical Business
Questions
 How fast is your business changing?
 What role is technology playing?
 How can you use and develop technology to your advantage?
 How do you make it happen?
SBI’s Integrated Technology Management System
provides tools, practices, and processes that help
companies manage technology to achieve a
strategic advantage.
4
The Technology Management Arena Spans the
Business Environment
External Environment Drivers and Dynamics
Business
Vision and
Strategy
Management, Organizational Structure,
Internal Systems, External Relationships
Results:
- Products
- Processes
- Services
Technology
Projects
Technology
Portfolio
Technology
Strategy
5
Two Types of Technology Management Issues
1. Sophisticated, user-friendly tools that provide
answers to company problems.
Examples:
 What should our technology strategy be?
 How shall we commercialize a new technology?
 Where are the best opportunities for growth?
2. A tailored set of practices that enhance company
capabilities in the Technology Management arena.
Examples:
 What can we learn from best practices in other
industries?
 Where are the major gaps in our practices?
 How can we implement improvements that last?
6
Answers to
Specific Company Problems
7
Effective Answers are Created by Both Divergent
and Convergent Processes
Issue
Strategy
and
Action
Creative
Qualitative
Conceptual
Possibilities
Analytic
Quantitative
Specific
Constraints
8
BusinessVision
Technology
Strategy
Project
Portfolio
ActionPlans
Expand
Perspectives
Rank, Sort,
and
Select
Execution
Options
Portfolio
Options
Environment
and
Opportunities
Linked Processes Generate Increasingly Specific
Technology Management Answers
9
Answers Must Be Developed through a Variety of
Tools Customized for the Company
TOOL 2
Opportunity
Search
Scenario C
“Envelope of Uncertainty”
Scenario A Scenario B
Scenario D
Single Point
Forecast
TOOL 1
Scenarios
TOOL 3
Technology
Roadmap
Action Plan
1. Targets
2. Steps
3. Monitoring
4. Adapting
1
2
13
•
•
•
•
•
•
•
Technology
Clusters
TOOL 4
Portfolio Selection
and Action Plan
Strategy Objectives
A B
C
Strategy Objectives
A B
C
Strategy Objectives
A B
C
EXAMPLE TOOLS:



Technologies
Products/
Markets
10
Certain Tools Help Develop Technology Strategy . . .
Technology
Strategy
BusinessVision
Benchmarking
Best Practices
Scenario
Planning
External/
Competitive
Assessment
Internal/
Capabilities
Assessment
Market
Scanning
Technology
Management
Diagnostic
Technology
Scanning
High-Level
Technology-Market
Roadmapping
Options
Analysis
11
Project
Portfolio
Other Tools Build on the Technology Strategy to
Develop a Project Portfolio . . .
Innovation/
Opportunity
Search
Technology
Scouting
Assessment of
Customer
Needs
and Acceptance
of Technology
Internal
Capabilities Vs.
External
Sources
Detailed
Tech-Market
Roadmapping
Portfolio
Selection
Options
Analysis
Technology
Strategy
12
Partnering
Project
Planning
ActionPlans
Still Others Convert the Project Portfolio into Action
Plans
Project
Management
Quality
Management
Cycle-Time
Management
Team
Building
Measurement
and
Evaluation
Project
Portfolio
13
Case Example:
Scenario-Based Strategic Planning
Issues:
• Growth
• Market
Position
• Internal
Synergy
Action,
Monitoring,
and
Adjustment
Strategies Plans
Evaluate
Analyze
Outlooks
Trends
Driving
Forces
Influence
Maps
Scenarios
Strategy
Alignment
Strategy
Maps
A
B
C
D Portfolio
Selection
Critical Success
Factors
Competitor Analysis
Technology
Roadmaps
Threats &
Opportunities
14
Case Example:
Task Flow for Scenario-Based Strategic Planning
Task 1
Kick-Off
Meeting
Task 3
Scenario
Workshop I
Task 4
Scenario
Workshop II
Task 7
Action
Initiatives
Workshop
Task 2
“Trends”
Workshop
Task 8
Final Report
(Strategic
Plan)
Task 5
Implications
Workshop
Task 6
Strategy
Selection
Workshop
15
Practices to Enhance
Company Capabilities
16
Integrated Approach to Improving a Company’s
Technology Management Capabilities
“Gaps”
“Practices”
Relative Ratings
“Best Practices”
Client/SBIWorkshops
Improvement
Plan
Benchmarking
Leaders
Practices
Knowledge Base
Internal
Diagnostic
17
The Internal Diagnostic Sets the Stage and Identifies
Key Issues . . .
Structured
Interviews
and
Workshops
 Observations
 Quick Hits
 Themes for Project
 Key Performance Issues
18
. . . Starting With a Set of “Strawman” Issues
 Aligning technology response with
business strategy
 Building the infrastructure for a
business-driven approach
 Establishing a technology priority
system
 Positioning IT as an enabler and
competitive vehicle
 Preserving long-term corporate
interest
 Overcoming internal barriers
 Ensuring timely delivery and
application
 Transferring and supplying
technology internally
 Ensuring the ability to absorb
leading technologies
 Sharing and leveraging
knowledge across the
organization
 Creating the next human
resource model for technology
 Uncovering and commercializing
new opportunities
 Identifying and managing special
initiatives
 Leveraging technology joint
ventures, alliances, and external
sources
 Managing technology across
international borders
19
A Company’s Key Issues Can Fall Anywhere within the
Technology Management Arena
External Environment Drivers and Dynamics
Business
Vision and
Strategy
Management, Organizational Structure,
Internal Systems, External Relationships
Results:
- Products
- Processes
- Services
Technology
Projects
Technology
Portfolio
Technology
Strategy
Alignment
Leveraging
JVs
Knowledge
Sharing Internal
Barriers
Timely
Delivery
Project
Selection
20
Best Practices are the Pieces of a Puzzle that Combine
to Improve Performance
21
Practices Need to Be Customized for Each
Company’s Particular Environment
A's Bus. Environment
B's Bus. Environment
Company B
Company A
22
Technology Management Frameworks
23
Technology Management Framework
Knowledge of External Drivers and Dynamics
Infrastructure: Organization, Resources, Processes
Technology Planning
R&D Project Management
Business
Vision and
Strategy
• Benchmarking
• Scenarios
• Market Research
• Competitive
Analysis
Technology
Portfolio
Planning
Project
Portfolio
Selection
Budgeting
and Resource
Allocation
Project
Initiation
Project
Execution
Project
Management
• Management Diagnostic
• Structure and Teaming
• HR Management
• IT & Knowledge Management
• Cycle-Time Management
• External Network Management
Ideation
Technology
Acquisition
Strategy
Project
Closeout
• SWOT Analysis
• Technology Intelligence
Technology
Commercialization
Technology
and IP
24
Knowledge of External Drivers and Dynamics
Infrastructure: Organization, Resources, Processes
Intellectual Property Management
Value Creation and Management
Business
Vision and
Strategy
• Benchmarking
• Scenarios
• Market Research
• Competitive
Analysis
Technology
Valuation
IP
Portfolio
Planning
Budgeting
& Resource
Allocation
Technology
Licensing
Venture
Creation
Sell, M&A,
JV, Alliance
• Management Diagnostic
• Structure and Teaming
• Profit Sharing Model
• Business Plan and Model
• Venture Financing
• External Expert Management
Ideation
Technology
Commercialization
Strategy
Internal
Use
• SWOT Analysis
• Technology Intelligence
Return on
InvestmentTechnology
and Intellectual
Property
New
Business
Portfolio
Technology Commercialization Framework
25
Knowledge of External Drivers and Dynamics
Infrastructure: Organization, Resources, Processes
Technology Planning
R&D Project Management
Business
Vision and
Strategy
• Benchmarking
• Scenarios
• Market Research
• Competitive
Analysis
Technology
Portfolio
Planning
Project
Portfolio
Selection
Budgeting
and Resource
Allocation
Project
Initiation
Project
Execution
Project
Management
• Management Diagnostic
• Structure and Teaming
• HR Management
• IT & Knowledge Management
• Cycle-Time Management
• External Network Management
Ideation
Technology
Acquisition
Strategy
Project
Closeout
• SWOT Analysis
• Technology Intelligence
Knowledge of External Drivers and Dynamics
Infrastructure: Organization, Resources, Processes
• Benchmarking
• Scenarios
• Market Research
• Competitive
Analysis
• Management Diagnostic
• Structure and Teaming
• Profit Sharing Model
• Business Plan and Model
• Venture Financing
• External Expert Management
• SWOT Analysis
• Technology Intelligence
Intellectual Property Management
Value Creation and Management
Technology
Valuation
IP
Portfolio
Planning
Budgeting
& Resource
Allocation
Technology
Licensing
Venture
Creation
Sell, M&A,
JV, Alliance
Ideation
Technology
Commercialzn
Strategy
Internal
Use
Return on
Investment
Technology
and Intellectual
Property
Creating IP Assets Turning IP Assets into Value
Technology Management Commercialization Management
Integrated Framework for a New R&BD Paradigm
26
Innovation and Opportunity Discovery will Be the
Critical Components in the New R&BD Paradigm
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
Commercialization
Management
IP Asset
Management
Technology (R&D)
Management
Company
Business
Vision
and
Strategy
Opportunity (Value) Discovery
Value Development (R&D, BD)
Creation of
Customer
Value and
Company
Profit
Infrastructure: Organization, Resource, Processes
Analysis of External Drivers and Dynamics
Commercialization
Management
IP Asset
Management
Technology (R&D)
Management
Company
Business
Vision
and
Strategy
Company
Business
Vision
and
Strategy
On-going Opportunity Discovery
Reaserch and On-going Business Development
Creation of
Customer
Value and
Company
Profit
27
SBI’s Experience of Technology Management
Process/System Transfer to Asian R&D Institutes
 Technology Management Diagnostic
 Technology Management
 Scenario Planning
 Opportunity Discovery Process
 Integrated Technology Planning
 Technology Roadmapping
 Commercialization Strategy and Management
 Technology Intelligence
 Scan Process
 New Product Concept Development
 Innovation Management and Value Creation
28
SBI’s Scenario-Based Integrated
Technology Planning
29
A Framework for SBI’s Scenario-Based Integrated
Technology Planning and Roadmapping
Strategy and
Roadmap
Development
Background
Information
Company’s
Current Status
Industry
Status and Key
Driving Forces
t
i
Baseline
product
technologies
Baseline
process
technologies
Prod
ucts/
Mark
ets
Enhancing/Sustaining
Displa
cing
Disru
ptive
X
X
Enabli
ng
Interaction
Scenario Planning
Opportunity Search
Business Needs
Scenarios
Technology Possibilities
A B C
Edited List of Technologies
Attractive Possible
Technologies
Preliminary Screen
Business Needs
Scenarios
Technology Possibilities
A B C
Edited List of Technologies
Attractive Possible
Technologies
Preliminary Screen
Signpost and
Technology
Intelligence
Signpost
Scan
FocusWatch Study
Act
SRIC-BI’s Intelligence Framework
Scan
FocusWatch Study
Act
ScanScan
FocusFocusWatchWatch StudyStudy
ActAct
SRIC-BI’s Intelligence Framework
Opportunity Profiling
Technology
Intelligence
Strategy
Roadmap
Step 2
Identify Key
Decision Factors
Step 3
Analyze External
Forces/Drivers
Step 4
Select Scenario
Logics
Step 5
Select & Elaborate
Scenarios
Step 6
Analyze Decision
Implications
Step 1
Identify Decision
Focus and Elements
Step 2
Identify Key
Decision Factors
Step 3
Analyze External
Forces/Drivers
Step 4
Select Scenario
Logics
Step 5
Select & Elaborate
Scenarios
Step 6
Analyze Decision
Implications
Step 1
Identify Decision
Focus and Elements
30
 Industry Status and Key Driving Forces
– Building Blocks of the Technology or Technology Tree
– Structure of the Industry
– Commercial Development Parameters
– Issues and Uncertainties
– Implications for Commercialization
– Market Projections
 Company’s Status
– Strategic Vision and Goals
– Business Strategy and Product Portfolio
– Technology Strategy and R&D Portfolio
– Core Technologies and Core Competencies
– Resources
Key Elements of Background Information
Background Information
31
Sample Format of Industry Status and Key
Driving Forces Based on SBI’s Explorer Program
Issues and Uncertainties
Building Blocks of the
Technology
Smart Spaces
Privacy
Human-
Computer
Interfaces
Security
Intelligent
Agents
Software
Productivity
Standards and
Interoperability
Context
Awareness
Business
Models
Medium
High
Low
Impact
MediumLow High
Uncertainty
Wireless
Networks
Commercial Development Parameters
Required Resources
• Partnering Capabilities
• IT Expertise
• Spectrum Licenses
• Funding for Research
and Development
Regulatory Factors
• Privacy
• Security
• Liability
Competing Technologies
• Current Computing Environment
• Human Tools
General Constraints
• Value Capture
• Standards and Interoperability
• Storage and Scalability
• Cost
Demand Factors
• Military and Government
• Industrial/Commercial
• Consumer
• Interfaces (Human-Machine, Machine to
Machine, Machine to Environment)
• Wireless Networks (Cellular, Bluetooth,
Wi-Fi)
• Miniature Power Sources
• Ubiquitous Embedded Processing
• Software Architecture
• Identification of Nodes
5
4
3
2
1
Synergistic Technologies
Implications
Markets and Applications
2002 2007 2012
Hardware (Enabling Components)
Software (Systems)
Services (Applications)
0
2
4
6
8
10
Billions
of
Dollars
Players and Structure of the Industry
Systems
• Network Infrastructure
— Cisco
— Siemens
• Software Architecture
— SRI International
— IBM Corporation
— HP Laboratories
— PARC
• Standards
— BluetoothSIG
— IETF
— IEEE
Added
Value
Enabling Components
• Basic Node Components
— Intel
— Motorola
— Hitachi
• Interface Nodes
— Speech Works
— Philips Speech Processing
— Nuance
• Work Nodes
— Palm
— Sunbeam
— Matsushita Electric
• Mobile Autonomous Swarms
— Crossbow Technologies
— Xybernaut
• Smart Spaces
— Display Edge T echnology
— Symbol T echnologies
— Nokia
— NTT DoCoMo
• Personal Networks
— Sensatex
— Sony
— MITMedia Lab
Applications
Pervasive Computing
Implications of Commercialization
A+B+C Bioploymer-enabled food processing enhances food formulation and provides a competitive edge in
the industry.
A+C Biopolymers enhance performance of consumer and industrial products and processes.
A+C Fine control of biopolymer production through cellular synthesis leads to customizable material
features, and GMOs become a key source for biopolymer production.
A+C+D Advanced medical treatments and devices emerge.
C Biopolymers gradually replace petroleum-based materials.
• Factors and Events That Will Enable Technology Commercialization
Emerging Commercial Opportunities
• Growth in GMO-Production Technology
• Application for Nanotechnologies
• High-Throughput Screening
Improvements
• Progress of Combinatorial Methods
• Advances in Enzymatic and Cell-Free
Synthesis
• Growth in GMO-Production Technology
• Product Formulation Improved by
Biopolymers
• Favorable Regulation of Functional Foods
and Nutraceuticals
• Consumer Preferences Move toward
Convenience Foods and Functional and
Nutraceutical Foods
A
New technologies will lead
to novel biopolymers.
B
Biopolymers enhance food
qualities and production.
Background Information
32
Coverage of the Envelope of Uncertainty
Scenario C
“Envelope of Uncertainty”
Scenario A Scenario B
Scenario D
Single Point
Forecast
Developing three to four structurally-different alternatives about the
future, that are at the edge of the envelope of uncertainty, allows us
to cover the uncertainty facing management in a doable manner
Scenario Planning
33
Six Steps in SBI’s Scenario Development Methodology
Step 2
Identify Key
Decision Factors
Step 3
Analyze External
Forces/Drivers
Step 4
Select Scenario
Logics
Step 5
Select & Elaborate
Scenarios
Step 6
Analyze Decision
Implications
Step 1
Identify Decision
Focus and Elements
Scenario Planning
34
Step 1: Identify Decision Focus and Elements
 Corporate strategic decisions with long-term
consequences and major uncertainties become the
focal points for scenario development
 Work with company management and /or scenario
team to specify key long-term decisions for which
scenarios are to be developed
 Identify key elements of these decisions
Scenario Planning
35
Step 2: Identify Key Decision Factors
 Specify the key factors (external or internal) that affect
the outcome of the decisions, e.g.:
– Market size, growth, and volatility
– Competing products and technological substitutes
– Economic conditions and price trends
– Capital availability and cost
– Human, material, and other resources
 The more that is known about the status of these
factors, the better the quality of the decision will be
 Focus on identifying these factors helps to ensure that
the scenarios are correctly focused
Scenario Planning
36
Step 3: Analyze Key External Forces/Drivers
 Identify the key external forces that determine the future
status of the key decision factors
– Micro forces: trends in the market and industry such as shifts in
customer needs, restructuring of competition, new technology
– Macro drivers: broad social, economic, political, and technological
forces such as demographic trends, economic growth and
development, trade patterns, political shifts
 Assess these forces/drivers for their level of impact and
degree of uncertainty
 The objective is to use the highest-impact forces,
highest-uncertainty forces to construct the story-lines of
the scenarios
Scenario Planning
37
Step 3: Analyze Key External Forces/Drivers
LevelofImpact
Degree of Uncertainty
High
Medium
Low
HighMediumLow
“High Impact/High Uncertainty”
Forces Differentiate the
Scenarios
“High Impact/Low Uncertainty”
Forces Do Not Differentiate
the Scenarios
Multiple
Scenario-Based
Technology
Roadmapping
Approach
Single
Scenario-Based
Technology
Roadmapping
Approach
Ignore “Low Impact” Forces
Scenario Planning
38
Step 4: Select Scenario Logics
 Select several “logics” (including major axes of
uncertainty) to serve as the structure for the Scenarios
– e.g., deregulation or re-regulation; world moves toward protectionism or
further free trade; high or low energy price; high or low product demand
growth
 Logics are coherent, plausible views of different ways in
which “the world might work”
 These logics should (1) be based on the critical external
forces/drivers, and (2) encompass the full range of
uncertainty that is to be factored into decision-making
Scenario Planning
39
Step 5: Select and Elaborate Scenarios
 Examine combinations of the logic outcomes for
potential scenarios
 Select a set of scenarios (normally 3-4) for detailed
elaboration
– The aim should be to cover as much as possible of the “envelope of
planning uncertainty”
 Describe each selected scenario in terms of its macro
drivers, micro (industry, market) forces and the
outcomes for the key decision factors
– Use story lines, tabular descriptions, graphs, tables of quantified
data, etc
Scenario Planning
40
Step 5: Select and Elaborate Scenarios
Criteria for Scenario Selection
 The scenarios are plausible: i.e., they fall within the limits of
what might reasonable be expected to happen
 They are structurally different: i.e., they are not simply
variations of a base case
 They are internally consistent: i.e., no scenario has any built-in
inconsistencies that undermine its credibility
 They have utility: i.e., each scenario (and all the scenarios
together) is useful for identifying strategies and for testing the
robustness of strategy alternatives
 The scenario set should challenge conventional wisdom about
the future.
Scenario Planning
41
Step 6: Analyze Decision Implications
 Analyze the scenarios to identify their implications for
the specified management decision(s)
 Focus on:
– Opportunities and threats for each scenario and across all scenarios
– Critical issues emerging from the scenarios
 Evaluate implications for strategy considerations and
options
Scenario Planning
42
Managers Immerse Themselves in Each Scenario
Scenario A
What would be the threats and
opportunities?
•
•
•
What technology strategy and
actions would we implement?
•
•
•
What are the business needs
in this scenario?
•
•
•
Scenario D
Scenario C
Scenario B
What if we knew
this scenario
would occur?
A
B
C
?
Scenarios
Strategy
and
Action
Decision
Focus
AA
BB
CC
?
Scenarios
Strategy
and
Action
Decision
Focus
Scenario Planning
Detailed stories are created to describe
what the future would be like under each scenario.
43
 Business Needs in FED
– Rapid growth of applications market (size and diversity), including military/aerospace niche
markets
– Collaboration with other members of business partner companies
– Cost reduction (process innovation, line conversion, line sharing, competitor alliances similar to
Semitech, equipment manufacturer alliances, etc.)
– “Sexy” features for customers (fast image response, true color, high brightness)
– High-end small-size products (10” or less) for cost-insensitive markets
 Business Needs for Other Product Lines
– Low-cost CRT production
– Large-screen advanced CRT and projection products
– Collaboration with other members of the company or other companies
– Obtaining medium-sized (10”-30”) FPD product
Scenario 1, “Overcome the Costs”
Identify Business Needs under Each Scenario
Illustrative Only
Opportunity Discovery
44
Scenario 1, “Overcome the Costs”
Technologies That Can Help Satisfy Each Need
Needs Key Technologies - FED
1. Rapid growth of applications market
2. Collaboration Standardization of process equipment/materials
Mechanical and electrical standardization
3. Cost reduction (process,conversion,alliances) Modified microtip development
New material & process technology for structures
High-throughput packaging technology
Automation of spacer installation
4. “Sexy” features (fast, color, bright) Phosphor material development
Driving algorithm for low power display
Spacer technology (invisibility)
5. High-end small-size products (10” or less) Phosphor material for high brightness
(military, aerospace) Packaging for long lifetime
Identify Technical Needs & Key Technologies
to Satisfy the Business Needs in a Scenario
Illustrative Only
Opportunity Discovery
45
Create a List of Technologies That Lead
to Success for Each Scenario
Business Needs
Scenarios
Technology Possibilities
A B C
Brainstorm a list of technologies that might lead to business success
for each scenario. These technologies can be:
Technologies critical for achieving success or avoiding failure
Enabling or infrastructure technologies.
Edit the list to eliminate redundancies and to define technologies in
terms of their technical components and tasks they perform.
Edited List of Technologies
Opportunity Discovery
46
The List of Technologies To Be Analyzed
Must Be Prioritized and Manageable
Attractive Possible
Technologies
Preliminary Screen
Edited List of Technologies
Shorten the list of technologies to 10 to 20 well-defined possibilities
using a preliminary screen that addresses the two most important
factors we can agree on. Typical screening criteria are:
Likelihood of success—might this technology be implemented
in the time frame under consideration?
Importance—is this technology truly important to our future
success?
Opportunity Discovery
47
Opportunity Profiles Based on SRI’s NABC Approach
Opportunity Profiling
A simple “NABC” approach can be used for profiling, communication,
validation, and promotion of an opportunity
Important
Needs
Unique
Approach
Customer
Benefits
Dynamic
Competition
Next Steps,
Action Plan
Customer needs, market
and product needs, or
technical needs
Compelling and unique
technical and/or business
approach
Competitive advantages
and disadvantages to
technology/market leaders
Current status and issues,
and next step or action plan
Customer benefits and
company/R&D benefits
48
Moving from Scenarios to Strategy to Action
Decision
Focus
Action
plus
Monitoring,
Progress,
and
Performance
Metrics
A
B
C Scenario
Signposts
Business
Needs and
Success
Factors
Strategy
Alternatives
Strategy
Selection
Gaps
and
Plans
Technology Strategy
49
Each Strategy Alternative Is Evaluated
Using the Key Success Factors
 Identify and prioritize key
success factors by which
to evaluate strategy
alternatives.
 Evaluate each strategy
alternative against the key
success factors under
each scenario.
 These factors become
potential performance
metrics.
Technology Strategy
50
 Robust: Designed to provide satisfactory results under all scenarios
– Considerations: Lower risk; higher cost; may not be optimal for any scenario.
 Rigid: Designed to provide greatest success under the preferred
scenario that takes best advantage of current position and resources
– Considerations: High upside potential; higher risk; lower cost.
 Flexible: Designed to preserve flexibility until it becomes more
apparent which scenario will occur or how key uncertainties are
resolved
– Considerations: Lower risk but might miss opportunities; moderate cost; requires
significant intelligence and monitoring effort.
 Influence: Attempt to use resources to bring about desirable
scenario
– Considerations: Requires understanding of forces behind scenarios that can be
influenced; higher cost.
Broad Strategy Considerations for Strategy Selection
Technology Strategy
51
The Steps in Scenario-Based Roadmapping
1. Identify Critical Technologies Today and for Future Scenarios (Step 3)
– Performance enhancement and new capabilities meeting needs
– Multiple uses and dependencies within product areas, industry base
– Design and production impacts: Costs, quality, availability, reliability, etc.
2. Define Technology Directions and Dependencies for Each Scenario (Step 4)
– Technology driving trend(s) and axes of uncertainty
– Critical pacing technologies required to achieve trend(s) or outcomes
3. Develop Roadmaps by Scenario (Steps 5 and 6)
– Mutual consistency of advances, including displacing and enabling technologies
– Potential disruptive technologies (possible variants)
– Check for consistency with basic scenario logics
4. Apply Roadmaps
– Use high-level roadmaps in Portfolio Balancing and Project Selection
– Expand to detailed roadmaps for development planning and project sequencing
– Use both high-level and detailed roadmaps to guide competence development and
technology intelligence
– Maintain roadmaps as part of Integrated Technology Planning
Technology Roadmap
52
Example of a Technology Roadmap:
Competing Display Technologies
TechnologyTechnology 1997 1998 1999 2000 2001 2002 2003 2004 2005
LCD
FED
PDP
OEL
DMD
12.1” 14” 15” 17” 20”
$50~60/in < 14” $15~20/in
< 16” $25~30/in
> 17” $30 ~ 35/in
matches CRT
•Largest size
•Cost-effective
increasing gradually
~ $35/in $20~25/in•OEM cost/in
•Readability
•Cost-eff size
•OEM cost/in
4” mono 6” color 15” color
end of 2005
gradual
milestone
high-end military/
avionics
accelerating
military use easier to increase size
than for LCD
cost/inch drops rapidly
•Cost-eff size
•OEM cost
•Selling below cost
to gain market
share
21”
@$8000
32”
@$5000
42”
@$4200
60”
@$5000
nothing yet
commercialized
multicolor,
low information
content
6”
hand-held
PC
full color
full color displays
[normal up to 10”]
•Cost is uncertain
very
expensive
low yields
60”
large
screen
yield improvements
&
resolution
improvements
focus research needed
$5~10/inch
passive matrix
CRT
•Largest cost
effective size 35”~40”
Flat CRTs >2005
(not in Digital TV)
TechnologyTechnology 1997 1998 1999 2000 2001 2002 2003 2004 2005
LCD
FED
PDP
OEL
DMD
12.1” 14” 15” 17” 20”
$50~60/in < 14” $15~20/in
< 16” $25~30/in
> 17” $30 ~ 35/in
matches CRT
•Largest size
•Cost-effective
increasing gradually
~ $35/in $20~25/in•OEM cost/in
•Readability
•Cost-eff size
•OEM cost/in
4” mono 6” color 15” color
end of 2005
gradual
milestone
high-end military/
avionics
accelerating
military use easier to increase size
than for LCD
cost/inch drops rapidly
•Cost-eff size
•OEM cost
•Selling below cost
to gain market
share
21”
@$8000
32”
@$5000
42”
@$4200
60”
@$5000
nothing yet
commercialized
multicolor,
low information
content
6”
hand-held
PC
full color
full color displays
[normal up to 10”]
•Cost is uncertain
very
expensive
low yields
60”
large
screen
yield improvements
&
resolution
improvements
focus research needed
$5~10/inch
passive matrix
CRT
•Largest cost
effective size 35”~40”
Flat CRTs >2005
(not in Digital TV)
Scenario A
Technology Roadmap
53
Example of a Technology Roadmap:
Products of Competing Display Technologies
•PDP: high-end FP
•CRT: dominates
•LCD14”: not affordable
32” PDP-TV
LCD increasing
DT display use
1997 1998 1999 2000 2001 2002 2003 2004 2005ProductsProducts
NT
PC
Monitor
Hand
held
PC
TV
PJ
TV
Auto-
motive
12” LCD 13” LCD
size increase
14” LCD --->continues 14” with better brightness
+contrast+efficiency
strongly
LCD
increasing
share of DT
•FED use in autos --->
Inroads
by FED
LCD very
competitive for DT
•FEDs in PDAs
•OELs in PDAs
LCD
dominates
42”
PDP-TV
60” PDP-TV
LCD share drops,winner
determined by cost whether
OEL can be spin coated
DMD
digital
cinemas
•OEL multi-use displays
DMD big screen
team games
•up to 35” CRTs
•LCD up to 6”
TVs
minor inroads
by FED
14” LCD
Monitor
price dropped
to get share
PDP ultra high -resolution
W/S monitor
no future DT
penetration
OELs for smaller multi-use displays
•other technologies
•DMD very expensive
besides presentation
projectors
•rear projection CRTs
LCD
home
theaters
LCD being used
in navigation system
LCD auto
entertainment
system
•PDP: high-end FP
•CRT: dominates
•LCD14”: not affordable
32” PDP-TV
LCD increasing
DT display use
1997 1998 1999 2000 2001 2002 2003 2004 2005ProductsProducts
NT
PC
Monitor
Hand
held
PC
TV
PJ
TV
Auto-
motive
12” LCD 13” LCD
size increase
14” LCD --->continues 14” with better brightness
+contrast+efficiency
strongly
LCD
increasing
share of DT
•FED use in autos --->
Inroads
by FED
LCD very
competitive for DT
•FEDs in PDAs
•OELs in PDAs
LCD
dominates
42”
PDP-TV
60” PDP-TV
LCD share drops,winner
determined by cost whether
OEL can be spin coated
DMD
digital
cinemas
•OEL multi-use displays
DMD big screen
team games
•up to 35” CRTs
•LCD up to 6”
TVs
minor inroads
by FED
14” LCD
Monitor
price dropped
to get share
PDP ultra high -resolution
W/S monitor
no future DT
penetration
OELs for smaller multi-use displays
•other technologies
•DMD very expensive
besides presentation
projectors
•rear projection CRTs
LCD
home
theaters
LCD being used
in navigation system
LCD auto
entertainment
system
Scenario A
Technology Roadmap
54
Signposts are Essential for Tracking
Important External and Internal Developments
 Start with the high impact, high uncertainty
external forces and identify indicators that will
help determine if and how the uncertainty is
being resolved.
 Leading indicators provide early signals and
evidence of future outcomes.
 Signposts are measurable descriptions for the
indicators that point clearly to a future
outcome for the force.
 Focus intelligence efforts on these signposts.
Develop Signposts
55
Developing the Signposts Involves Four Steps
1. Select the Forces
of Importance
2. Identify Indicators
for Those Forces
3. Develop Measures
for the Indicators
4. Specify Signposts
to Watch For
Develop Signposts
56
“Forces”
(Important forces and
dynamics to watch)
“Indicators”
(Element or condition of “forces”
To watch, taken from scenarios))
“Measures”
(Events, data, information that define
element or condition of “indicators”)
“Signposts”
(Significant threshold “measures” that
are judged to be clear indications)
Geopolitics, demographics
and economics
Emergence of trading blocks China joins WTO China abides by WTO rules and there are
no sanction against that country
Tariff reductions India, Brazil reduce chemical product
duties below $__/T
Regulatory/eco-factors Strictness of
environmental regulations
Global treaties implemented Global CO2 reduction treaty implemented
by 2010
EU directives on fuel quality are improved
and spread
EU fuel quality directives are adopted by
other regions, e.g. Eastern Europe, Russia
Increasing use of lists (to identify “bad”
products)
Number of chemical products on toxics
lists increase by __%
Government support of environment Large government/corporate programs
(like PNGV or FreedomCAR) funded
Feedstocks Shift to low-cost feedstocks Commodities production moves to energy-
rich countries
Petrochemicals construction projects and
production in energy-rich countries
increases from _ to _% of total
Technology advances Technology development activity Technology evolves rapidly across large
companies
Number and % of patents issued to large
companies increases from __ to __ ;
large companies carve out big new IP
areas
Government funding available fortechnology
development
Government R&D funding increases by
__%
Broad IP protection Shift toward effective worldwide patent
system
Patent disputes/claims between countries
decrease from __ to __ per year
Products Product harmonization Shift toward global specifications Multinational companies require suppliers
to meet global specs
Deselection of flexible PVC and phthalate
plasticizers
Major companies switch to alternatives
Industry/competitors Industry structure Number of commodity producers High-profile chemical companies merge,
e.g. SABIC buys Enichem
Example Signposts for Another Industry and Company
Develop Signposts
57
Example: Microtip-Based FED Has Five Signposts
Showing Where Its Path May Go in One Direction or Another
Time —>
2000 2001 2002 2004-5
Market & Macro
economic Growth
(including LCD)
High-Voltage
Long-Life
Phosphor
High-
Throughput
Laser Sealing
First-Generation
Microtip
Commercialized
Low-Voltage
Long-Life
Phosphor
Develop Signposts
58
Decision-Makers
(Intelligence Customers)
Intelligence Network
Focal Points
Intelligence Network
Members
Information
Search
Specialists
Information Sources
DEFINE FOCUS
FOCUS ON INDICATORS,
MEASURES, AND
SIGNPOSTS
TARGET SPECIFIC INFORMATION
MEASURE, ANALYZE
AND INTERPRET
Link to StrategyLink to Decision
Link to SourcesLink to Network
Experts Journals Associations Information Services
UniversitiesInternet Databases Brokers
A Comprehensive Intelligence Program
Has Clear Linkages and Information Flows
Major Tasks
 Design intelligence process
 Determine technology focus
areas and priorities
 Develop signposts based on
forces, indicators and
measures
 Test process
 Charter networks
 Implement a training and
communication plan
Technology Intelligence
59
Conclusion
60
Key Success Factors of a New Process/System
Implementation
 Strong commitment and support of the client’s top management
 Consensus building and active participation
 Practical and proven process/system
 Flexible process/system to accommodate improvement of
process/system learning and staff capability by experience
 Manual/handbook with many (real) case examples
 Starting with simple (and flexible) process/system
 Appropriate budget and time
 Key staff training of a new process/system
61
Lessons Learned and Issues in Implementation
 Don’t wait to launch a new process/system until a company (or
its R&D center) culture changes to accept the new system. By
implementing a simple process/system we can start to change
the company (or its R&D center) culture.
 Overcome of “Not-Invented-Here”
 Collaboration barrier of “Silo Structure”
 Organizational restructuring for a new process/system
 Modification of R&D project evaluation, and staff evaluation and
rewards (e.g., short-term low-impact low-risk vs. long-term high-
impact high-risk)
 Clear definition of new role, responsibility, and reward
 Aligning R&D strategy/policy to company strategy/policy

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Integrated Technology Planning Process

  • 1. 1 Integrated Technology Planning Process Prepared for: Technology Management and Commercialization Training Workshop Prepared by: Dr. Chulho Park Vice President Strategic Business Insights December 2017
  • 2. 2 Introduction of SBI’s Technology Management Process
  • 3. 3 Technology Management Addresses Critical Business Questions  How fast is your business changing?  What role is technology playing?  How can you use and develop technology to your advantage?  How do you make it happen? SBI’s Integrated Technology Management System provides tools, practices, and processes that help companies manage technology to achieve a strategic advantage.
  • 4. 4 The Technology Management Arena Spans the Business Environment External Environment Drivers and Dynamics Business Vision and Strategy Management, Organizational Structure, Internal Systems, External Relationships Results: - Products - Processes - Services Technology Projects Technology Portfolio Technology Strategy
  • 5. 5 Two Types of Technology Management Issues 1. Sophisticated, user-friendly tools that provide answers to company problems. Examples:  What should our technology strategy be?  How shall we commercialize a new technology?  Where are the best opportunities for growth? 2. A tailored set of practices that enhance company capabilities in the Technology Management arena. Examples:  What can we learn from best practices in other industries?  Where are the major gaps in our practices?  How can we implement improvements that last?
  • 7. 7 Effective Answers are Created by Both Divergent and Convergent Processes Issue Strategy and Action Creative Qualitative Conceptual Possibilities Analytic Quantitative Specific Constraints
  • 9. 9 Answers Must Be Developed through a Variety of Tools Customized for the Company TOOL 2 Opportunity Search Scenario C “Envelope of Uncertainty” Scenario A Scenario B Scenario D Single Point Forecast TOOL 1 Scenarios TOOL 3 Technology Roadmap Action Plan 1. Targets 2. Steps 3. Monitoring 4. Adapting 1 2 13 • • • • • • • Technology Clusters TOOL 4 Portfolio Selection and Action Plan Strategy Objectives A B C Strategy Objectives A B C Strategy Objectives A B C EXAMPLE TOOLS:    Technologies Products/ Markets
  • 10. 10 Certain Tools Help Develop Technology Strategy . . . Technology Strategy BusinessVision Benchmarking Best Practices Scenario Planning External/ Competitive Assessment Internal/ Capabilities Assessment Market Scanning Technology Management Diagnostic Technology Scanning High-Level Technology-Market Roadmapping Options Analysis
  • 11. 11 Project Portfolio Other Tools Build on the Technology Strategy to Develop a Project Portfolio . . . Innovation/ Opportunity Search Technology Scouting Assessment of Customer Needs and Acceptance of Technology Internal Capabilities Vs. External Sources Detailed Tech-Market Roadmapping Portfolio Selection Options Analysis Technology Strategy
  • 12. 12 Partnering Project Planning ActionPlans Still Others Convert the Project Portfolio into Action Plans Project Management Quality Management Cycle-Time Management Team Building Measurement and Evaluation Project Portfolio
  • 13. 13 Case Example: Scenario-Based Strategic Planning Issues: • Growth • Market Position • Internal Synergy Action, Monitoring, and Adjustment Strategies Plans Evaluate Analyze Outlooks Trends Driving Forces Influence Maps Scenarios Strategy Alignment Strategy Maps A B C D Portfolio Selection Critical Success Factors Competitor Analysis Technology Roadmaps Threats & Opportunities
  • 14. 14 Case Example: Task Flow for Scenario-Based Strategic Planning Task 1 Kick-Off Meeting Task 3 Scenario Workshop I Task 4 Scenario Workshop II Task 7 Action Initiatives Workshop Task 2 “Trends” Workshop Task 8 Final Report (Strategic Plan) Task 5 Implications Workshop Task 6 Strategy Selection Workshop
  • 16. 16 Integrated Approach to Improving a Company’s Technology Management Capabilities “Gaps” “Practices” Relative Ratings “Best Practices” Client/SBIWorkshops Improvement Plan Benchmarking Leaders Practices Knowledge Base Internal Diagnostic
  • 17. 17 The Internal Diagnostic Sets the Stage and Identifies Key Issues . . . Structured Interviews and Workshops  Observations  Quick Hits  Themes for Project  Key Performance Issues
  • 18. 18 . . . Starting With a Set of “Strawman” Issues  Aligning technology response with business strategy  Building the infrastructure for a business-driven approach  Establishing a technology priority system  Positioning IT as an enabler and competitive vehicle  Preserving long-term corporate interest  Overcoming internal barriers  Ensuring timely delivery and application  Transferring and supplying technology internally  Ensuring the ability to absorb leading technologies  Sharing and leveraging knowledge across the organization  Creating the next human resource model for technology  Uncovering and commercializing new opportunities  Identifying and managing special initiatives  Leveraging technology joint ventures, alliances, and external sources  Managing technology across international borders
  • 19. 19 A Company’s Key Issues Can Fall Anywhere within the Technology Management Arena External Environment Drivers and Dynamics Business Vision and Strategy Management, Organizational Structure, Internal Systems, External Relationships Results: - Products - Processes - Services Technology Projects Technology Portfolio Technology Strategy Alignment Leveraging JVs Knowledge Sharing Internal Barriers Timely Delivery Project Selection
  • 20. 20 Best Practices are the Pieces of a Puzzle that Combine to Improve Performance
  • 21. 21 Practices Need to Be Customized for Each Company’s Particular Environment A's Bus. Environment B's Bus. Environment Company B Company A
  • 23. 23 Technology Management Framework Knowledge of External Drivers and Dynamics Infrastructure: Organization, Resources, Processes Technology Planning R&D Project Management Business Vision and Strategy • Benchmarking • Scenarios • Market Research • Competitive Analysis Technology Portfolio Planning Project Portfolio Selection Budgeting and Resource Allocation Project Initiation Project Execution Project Management • Management Diagnostic • Structure and Teaming • HR Management • IT & Knowledge Management • Cycle-Time Management • External Network Management Ideation Technology Acquisition Strategy Project Closeout • SWOT Analysis • Technology Intelligence Technology Commercialization Technology and IP
  • 24. 24 Knowledge of External Drivers and Dynamics Infrastructure: Organization, Resources, Processes Intellectual Property Management Value Creation and Management Business Vision and Strategy • Benchmarking • Scenarios • Market Research • Competitive Analysis Technology Valuation IP Portfolio Planning Budgeting & Resource Allocation Technology Licensing Venture Creation Sell, M&A, JV, Alliance • Management Diagnostic • Structure and Teaming • Profit Sharing Model • Business Plan and Model • Venture Financing • External Expert Management Ideation Technology Commercialization Strategy Internal Use • SWOT Analysis • Technology Intelligence Return on InvestmentTechnology and Intellectual Property New Business Portfolio Technology Commercialization Framework
  • 25. 25 Knowledge of External Drivers and Dynamics Infrastructure: Organization, Resources, Processes Technology Planning R&D Project Management Business Vision and Strategy • Benchmarking • Scenarios • Market Research • Competitive Analysis Technology Portfolio Planning Project Portfolio Selection Budgeting and Resource Allocation Project Initiation Project Execution Project Management • Management Diagnostic • Structure and Teaming • HR Management • IT & Knowledge Management • Cycle-Time Management • External Network Management Ideation Technology Acquisition Strategy Project Closeout • SWOT Analysis • Technology Intelligence Knowledge of External Drivers and Dynamics Infrastructure: Organization, Resources, Processes • Benchmarking • Scenarios • Market Research • Competitive Analysis • Management Diagnostic • Structure and Teaming • Profit Sharing Model • Business Plan and Model • Venture Financing • External Expert Management • SWOT Analysis • Technology Intelligence Intellectual Property Management Value Creation and Management Technology Valuation IP Portfolio Planning Budgeting & Resource Allocation Technology Licensing Venture Creation Sell, M&A, JV, Alliance Ideation Technology Commercialzn Strategy Internal Use Return on Investment Technology and Intellectual Property Creating IP Assets Turning IP Assets into Value Technology Management Commercialization Management Integrated Framework for a New R&BD Paradigm
  • 26. 26 Innovation and Opportunity Discovery will Be the Critical Components in the New R&BD Paradigm Infrastructure: Organization, Resource, Processes Analysis of External Drivers and Dynamics Commercialization Management IP Asset Management Technology (R&D) Management Company Business Vision and Strategy Opportunity (Value) Discovery Value Development (R&D, BD) Creation of Customer Value and Company Profit Infrastructure: Organization, Resource, Processes Analysis of External Drivers and Dynamics Commercialization Management IP Asset Management Technology (R&D) Management Company Business Vision and Strategy Company Business Vision and Strategy On-going Opportunity Discovery Reaserch and On-going Business Development Creation of Customer Value and Company Profit
  • 27. 27 SBI’s Experience of Technology Management Process/System Transfer to Asian R&D Institutes  Technology Management Diagnostic  Technology Management  Scenario Planning  Opportunity Discovery Process  Integrated Technology Planning  Technology Roadmapping  Commercialization Strategy and Management  Technology Intelligence  Scan Process  New Product Concept Development  Innovation Management and Value Creation
  • 29. 29 A Framework for SBI’s Scenario-Based Integrated Technology Planning and Roadmapping Strategy and Roadmap Development Background Information Company’s Current Status Industry Status and Key Driving Forces t i Baseline product technologies Baseline process technologies Prod ucts/ Mark ets Enhancing/Sustaining Displa cing Disru ptive X X Enabli ng Interaction Scenario Planning Opportunity Search Business Needs Scenarios Technology Possibilities A B C Edited List of Technologies Attractive Possible Technologies Preliminary Screen Business Needs Scenarios Technology Possibilities A B C Edited List of Technologies Attractive Possible Technologies Preliminary Screen Signpost and Technology Intelligence Signpost Scan FocusWatch Study Act SRIC-BI’s Intelligence Framework Scan FocusWatch Study Act ScanScan FocusFocusWatchWatch StudyStudy ActAct SRIC-BI’s Intelligence Framework Opportunity Profiling Technology Intelligence Strategy Roadmap Step 2 Identify Key Decision Factors Step 3 Analyze External Forces/Drivers Step 4 Select Scenario Logics Step 5 Select & Elaborate Scenarios Step 6 Analyze Decision Implications Step 1 Identify Decision Focus and Elements Step 2 Identify Key Decision Factors Step 3 Analyze External Forces/Drivers Step 4 Select Scenario Logics Step 5 Select & Elaborate Scenarios Step 6 Analyze Decision Implications Step 1 Identify Decision Focus and Elements
  • 30. 30  Industry Status and Key Driving Forces – Building Blocks of the Technology or Technology Tree – Structure of the Industry – Commercial Development Parameters – Issues and Uncertainties – Implications for Commercialization – Market Projections  Company’s Status – Strategic Vision and Goals – Business Strategy and Product Portfolio – Technology Strategy and R&D Portfolio – Core Technologies and Core Competencies – Resources Key Elements of Background Information Background Information
  • 31. 31 Sample Format of Industry Status and Key Driving Forces Based on SBI’s Explorer Program Issues and Uncertainties Building Blocks of the Technology Smart Spaces Privacy Human- Computer Interfaces Security Intelligent Agents Software Productivity Standards and Interoperability Context Awareness Business Models Medium High Low Impact MediumLow High Uncertainty Wireless Networks Commercial Development Parameters Required Resources • Partnering Capabilities • IT Expertise • Spectrum Licenses • Funding for Research and Development Regulatory Factors • Privacy • Security • Liability Competing Technologies • Current Computing Environment • Human Tools General Constraints • Value Capture • Standards and Interoperability • Storage and Scalability • Cost Demand Factors • Military and Government • Industrial/Commercial • Consumer • Interfaces (Human-Machine, Machine to Machine, Machine to Environment) • Wireless Networks (Cellular, Bluetooth, Wi-Fi) • Miniature Power Sources • Ubiquitous Embedded Processing • Software Architecture • Identification of Nodes 5 4 3 2 1 Synergistic Technologies Implications Markets and Applications 2002 2007 2012 Hardware (Enabling Components) Software (Systems) Services (Applications) 0 2 4 6 8 10 Billions of Dollars Players and Structure of the Industry Systems • Network Infrastructure — Cisco — Siemens • Software Architecture — SRI International — IBM Corporation — HP Laboratories — PARC • Standards — BluetoothSIG — IETF — IEEE Added Value Enabling Components • Basic Node Components — Intel — Motorola — Hitachi • Interface Nodes — Speech Works — Philips Speech Processing — Nuance • Work Nodes — Palm — Sunbeam — Matsushita Electric • Mobile Autonomous Swarms — Crossbow Technologies — Xybernaut • Smart Spaces — Display Edge T echnology — Symbol T echnologies — Nokia — NTT DoCoMo • Personal Networks — Sensatex — Sony — MITMedia Lab Applications Pervasive Computing Implications of Commercialization A+B+C Bioploymer-enabled food processing enhances food formulation and provides a competitive edge in the industry. A+C Biopolymers enhance performance of consumer and industrial products and processes. A+C Fine control of biopolymer production through cellular synthesis leads to customizable material features, and GMOs become a key source for biopolymer production. A+C+D Advanced medical treatments and devices emerge. C Biopolymers gradually replace petroleum-based materials. • Factors and Events That Will Enable Technology Commercialization Emerging Commercial Opportunities • Growth in GMO-Production Technology • Application for Nanotechnologies • High-Throughput Screening Improvements • Progress of Combinatorial Methods • Advances in Enzymatic and Cell-Free Synthesis • Growth in GMO-Production Technology • Product Formulation Improved by Biopolymers • Favorable Regulation of Functional Foods and Nutraceuticals • Consumer Preferences Move toward Convenience Foods and Functional and Nutraceutical Foods A New technologies will lead to novel biopolymers. B Biopolymers enhance food qualities and production. Background Information
  • 32. 32 Coverage of the Envelope of Uncertainty Scenario C “Envelope of Uncertainty” Scenario A Scenario B Scenario D Single Point Forecast Developing three to four structurally-different alternatives about the future, that are at the edge of the envelope of uncertainty, allows us to cover the uncertainty facing management in a doable manner Scenario Planning
  • 33. 33 Six Steps in SBI’s Scenario Development Methodology Step 2 Identify Key Decision Factors Step 3 Analyze External Forces/Drivers Step 4 Select Scenario Logics Step 5 Select & Elaborate Scenarios Step 6 Analyze Decision Implications Step 1 Identify Decision Focus and Elements Scenario Planning
  • 34. 34 Step 1: Identify Decision Focus and Elements  Corporate strategic decisions with long-term consequences and major uncertainties become the focal points for scenario development  Work with company management and /or scenario team to specify key long-term decisions for which scenarios are to be developed  Identify key elements of these decisions Scenario Planning
  • 35. 35 Step 2: Identify Key Decision Factors  Specify the key factors (external or internal) that affect the outcome of the decisions, e.g.: – Market size, growth, and volatility – Competing products and technological substitutes – Economic conditions and price trends – Capital availability and cost – Human, material, and other resources  The more that is known about the status of these factors, the better the quality of the decision will be  Focus on identifying these factors helps to ensure that the scenarios are correctly focused Scenario Planning
  • 36. 36 Step 3: Analyze Key External Forces/Drivers  Identify the key external forces that determine the future status of the key decision factors – Micro forces: trends in the market and industry such as shifts in customer needs, restructuring of competition, new technology – Macro drivers: broad social, economic, political, and technological forces such as demographic trends, economic growth and development, trade patterns, political shifts  Assess these forces/drivers for their level of impact and degree of uncertainty  The objective is to use the highest-impact forces, highest-uncertainty forces to construct the story-lines of the scenarios Scenario Planning
  • 37. 37 Step 3: Analyze Key External Forces/Drivers LevelofImpact Degree of Uncertainty High Medium Low HighMediumLow “High Impact/High Uncertainty” Forces Differentiate the Scenarios “High Impact/Low Uncertainty” Forces Do Not Differentiate the Scenarios Multiple Scenario-Based Technology Roadmapping Approach Single Scenario-Based Technology Roadmapping Approach Ignore “Low Impact” Forces Scenario Planning
  • 38. 38 Step 4: Select Scenario Logics  Select several “logics” (including major axes of uncertainty) to serve as the structure for the Scenarios – e.g., deregulation or re-regulation; world moves toward protectionism or further free trade; high or low energy price; high or low product demand growth  Logics are coherent, plausible views of different ways in which “the world might work”  These logics should (1) be based on the critical external forces/drivers, and (2) encompass the full range of uncertainty that is to be factored into decision-making Scenario Planning
  • 39. 39 Step 5: Select and Elaborate Scenarios  Examine combinations of the logic outcomes for potential scenarios  Select a set of scenarios (normally 3-4) for detailed elaboration – The aim should be to cover as much as possible of the “envelope of planning uncertainty”  Describe each selected scenario in terms of its macro drivers, micro (industry, market) forces and the outcomes for the key decision factors – Use story lines, tabular descriptions, graphs, tables of quantified data, etc Scenario Planning
  • 40. 40 Step 5: Select and Elaborate Scenarios Criteria for Scenario Selection  The scenarios are plausible: i.e., they fall within the limits of what might reasonable be expected to happen  They are structurally different: i.e., they are not simply variations of a base case  They are internally consistent: i.e., no scenario has any built-in inconsistencies that undermine its credibility  They have utility: i.e., each scenario (and all the scenarios together) is useful for identifying strategies and for testing the robustness of strategy alternatives  The scenario set should challenge conventional wisdom about the future. Scenario Planning
  • 41. 41 Step 6: Analyze Decision Implications  Analyze the scenarios to identify their implications for the specified management decision(s)  Focus on: – Opportunities and threats for each scenario and across all scenarios – Critical issues emerging from the scenarios  Evaluate implications for strategy considerations and options Scenario Planning
  • 42. 42 Managers Immerse Themselves in Each Scenario Scenario A What would be the threats and opportunities? • • • What technology strategy and actions would we implement? • • • What are the business needs in this scenario? • • • Scenario D Scenario C Scenario B What if we knew this scenario would occur? A B C ? Scenarios Strategy and Action Decision Focus AA BB CC ? Scenarios Strategy and Action Decision Focus Scenario Planning Detailed stories are created to describe what the future would be like under each scenario.
  • 43. 43  Business Needs in FED – Rapid growth of applications market (size and diversity), including military/aerospace niche markets – Collaboration with other members of business partner companies – Cost reduction (process innovation, line conversion, line sharing, competitor alliances similar to Semitech, equipment manufacturer alliances, etc.) – “Sexy” features for customers (fast image response, true color, high brightness) – High-end small-size products (10” or less) for cost-insensitive markets  Business Needs for Other Product Lines – Low-cost CRT production – Large-screen advanced CRT and projection products – Collaboration with other members of the company or other companies – Obtaining medium-sized (10”-30”) FPD product Scenario 1, “Overcome the Costs” Identify Business Needs under Each Scenario Illustrative Only Opportunity Discovery
  • 44. 44 Scenario 1, “Overcome the Costs” Technologies That Can Help Satisfy Each Need Needs Key Technologies - FED 1. Rapid growth of applications market 2. Collaboration Standardization of process equipment/materials Mechanical and electrical standardization 3. Cost reduction (process,conversion,alliances) Modified microtip development New material & process technology for structures High-throughput packaging technology Automation of spacer installation 4. “Sexy” features (fast, color, bright) Phosphor material development Driving algorithm for low power display Spacer technology (invisibility) 5. High-end small-size products (10” or less) Phosphor material for high brightness (military, aerospace) Packaging for long lifetime Identify Technical Needs & Key Technologies to Satisfy the Business Needs in a Scenario Illustrative Only Opportunity Discovery
  • 45. 45 Create a List of Technologies That Lead to Success for Each Scenario Business Needs Scenarios Technology Possibilities A B C Brainstorm a list of technologies that might lead to business success for each scenario. These technologies can be: Technologies critical for achieving success or avoiding failure Enabling or infrastructure technologies. Edit the list to eliminate redundancies and to define technologies in terms of their technical components and tasks they perform. Edited List of Technologies Opportunity Discovery
  • 46. 46 The List of Technologies To Be Analyzed Must Be Prioritized and Manageable Attractive Possible Technologies Preliminary Screen Edited List of Technologies Shorten the list of technologies to 10 to 20 well-defined possibilities using a preliminary screen that addresses the two most important factors we can agree on. Typical screening criteria are: Likelihood of success—might this technology be implemented in the time frame under consideration? Importance—is this technology truly important to our future success? Opportunity Discovery
  • 47. 47 Opportunity Profiles Based on SRI’s NABC Approach Opportunity Profiling A simple “NABC” approach can be used for profiling, communication, validation, and promotion of an opportunity Important Needs Unique Approach Customer Benefits Dynamic Competition Next Steps, Action Plan Customer needs, market and product needs, or technical needs Compelling and unique technical and/or business approach Competitive advantages and disadvantages to technology/market leaders Current status and issues, and next step or action plan Customer benefits and company/R&D benefits
  • 48. 48 Moving from Scenarios to Strategy to Action Decision Focus Action plus Monitoring, Progress, and Performance Metrics A B C Scenario Signposts Business Needs and Success Factors Strategy Alternatives Strategy Selection Gaps and Plans Technology Strategy
  • 49. 49 Each Strategy Alternative Is Evaluated Using the Key Success Factors  Identify and prioritize key success factors by which to evaluate strategy alternatives.  Evaluate each strategy alternative against the key success factors under each scenario.  These factors become potential performance metrics. Technology Strategy
  • 50. 50  Robust: Designed to provide satisfactory results under all scenarios – Considerations: Lower risk; higher cost; may not be optimal for any scenario.  Rigid: Designed to provide greatest success under the preferred scenario that takes best advantage of current position and resources – Considerations: High upside potential; higher risk; lower cost.  Flexible: Designed to preserve flexibility until it becomes more apparent which scenario will occur or how key uncertainties are resolved – Considerations: Lower risk but might miss opportunities; moderate cost; requires significant intelligence and monitoring effort.  Influence: Attempt to use resources to bring about desirable scenario – Considerations: Requires understanding of forces behind scenarios that can be influenced; higher cost. Broad Strategy Considerations for Strategy Selection Technology Strategy
  • 51. 51 The Steps in Scenario-Based Roadmapping 1. Identify Critical Technologies Today and for Future Scenarios (Step 3) – Performance enhancement and new capabilities meeting needs – Multiple uses and dependencies within product areas, industry base – Design and production impacts: Costs, quality, availability, reliability, etc. 2. Define Technology Directions and Dependencies for Each Scenario (Step 4) – Technology driving trend(s) and axes of uncertainty – Critical pacing technologies required to achieve trend(s) or outcomes 3. Develop Roadmaps by Scenario (Steps 5 and 6) – Mutual consistency of advances, including displacing and enabling technologies – Potential disruptive technologies (possible variants) – Check for consistency with basic scenario logics 4. Apply Roadmaps – Use high-level roadmaps in Portfolio Balancing and Project Selection – Expand to detailed roadmaps for development planning and project sequencing – Use both high-level and detailed roadmaps to guide competence development and technology intelligence – Maintain roadmaps as part of Integrated Technology Planning Technology Roadmap
  • 52. 52 Example of a Technology Roadmap: Competing Display Technologies TechnologyTechnology 1997 1998 1999 2000 2001 2002 2003 2004 2005 LCD FED PDP OEL DMD 12.1” 14” 15” 17” 20” $50~60/in < 14” $15~20/in < 16” $25~30/in > 17” $30 ~ 35/in matches CRT •Largest size •Cost-effective increasing gradually ~ $35/in $20~25/in•OEM cost/in •Readability •Cost-eff size •OEM cost/in 4” mono 6” color 15” color end of 2005 gradual milestone high-end military/ avionics accelerating military use easier to increase size than for LCD cost/inch drops rapidly •Cost-eff size •OEM cost •Selling below cost to gain market share 21” @$8000 32” @$5000 42” @$4200 60” @$5000 nothing yet commercialized multicolor, low information content 6” hand-held PC full color full color displays [normal up to 10”] •Cost is uncertain very expensive low yields 60” large screen yield improvements & resolution improvements focus research needed $5~10/inch passive matrix CRT •Largest cost effective size 35”~40” Flat CRTs >2005 (not in Digital TV) TechnologyTechnology 1997 1998 1999 2000 2001 2002 2003 2004 2005 LCD FED PDP OEL DMD 12.1” 14” 15” 17” 20” $50~60/in < 14” $15~20/in < 16” $25~30/in > 17” $30 ~ 35/in matches CRT •Largest size •Cost-effective increasing gradually ~ $35/in $20~25/in•OEM cost/in •Readability •Cost-eff size •OEM cost/in 4” mono 6” color 15” color end of 2005 gradual milestone high-end military/ avionics accelerating military use easier to increase size than for LCD cost/inch drops rapidly •Cost-eff size •OEM cost •Selling below cost to gain market share 21” @$8000 32” @$5000 42” @$4200 60” @$5000 nothing yet commercialized multicolor, low information content 6” hand-held PC full color full color displays [normal up to 10”] •Cost is uncertain very expensive low yields 60” large screen yield improvements & resolution improvements focus research needed $5~10/inch passive matrix CRT •Largest cost effective size 35”~40” Flat CRTs >2005 (not in Digital TV) Scenario A Technology Roadmap
  • 53. 53 Example of a Technology Roadmap: Products of Competing Display Technologies •PDP: high-end FP •CRT: dominates •LCD14”: not affordable 32” PDP-TV LCD increasing DT display use 1997 1998 1999 2000 2001 2002 2003 2004 2005ProductsProducts NT PC Monitor Hand held PC TV PJ TV Auto- motive 12” LCD 13” LCD size increase 14” LCD --->continues 14” with better brightness +contrast+efficiency strongly LCD increasing share of DT •FED use in autos ---> Inroads by FED LCD very competitive for DT •FEDs in PDAs •OELs in PDAs LCD dominates 42” PDP-TV 60” PDP-TV LCD share drops,winner determined by cost whether OEL can be spin coated DMD digital cinemas •OEL multi-use displays DMD big screen team games •up to 35” CRTs •LCD up to 6” TVs minor inroads by FED 14” LCD Monitor price dropped to get share PDP ultra high -resolution W/S monitor no future DT penetration OELs for smaller multi-use displays •other technologies •DMD very expensive besides presentation projectors •rear projection CRTs LCD home theaters LCD being used in navigation system LCD auto entertainment system •PDP: high-end FP •CRT: dominates •LCD14”: not affordable 32” PDP-TV LCD increasing DT display use 1997 1998 1999 2000 2001 2002 2003 2004 2005ProductsProducts NT PC Monitor Hand held PC TV PJ TV Auto- motive 12” LCD 13” LCD size increase 14” LCD --->continues 14” with better brightness +contrast+efficiency strongly LCD increasing share of DT •FED use in autos ---> Inroads by FED LCD very competitive for DT •FEDs in PDAs •OELs in PDAs LCD dominates 42” PDP-TV 60” PDP-TV LCD share drops,winner determined by cost whether OEL can be spin coated DMD digital cinemas •OEL multi-use displays DMD big screen team games •up to 35” CRTs •LCD up to 6” TVs minor inroads by FED 14” LCD Monitor price dropped to get share PDP ultra high -resolution W/S monitor no future DT penetration OELs for smaller multi-use displays •other technologies •DMD very expensive besides presentation projectors •rear projection CRTs LCD home theaters LCD being used in navigation system LCD auto entertainment system Scenario A Technology Roadmap
  • 54. 54 Signposts are Essential for Tracking Important External and Internal Developments  Start with the high impact, high uncertainty external forces and identify indicators that will help determine if and how the uncertainty is being resolved.  Leading indicators provide early signals and evidence of future outcomes.  Signposts are measurable descriptions for the indicators that point clearly to a future outcome for the force.  Focus intelligence efforts on these signposts. Develop Signposts
  • 55. 55 Developing the Signposts Involves Four Steps 1. Select the Forces of Importance 2. Identify Indicators for Those Forces 3. Develop Measures for the Indicators 4. Specify Signposts to Watch For Develop Signposts
  • 56. 56 “Forces” (Important forces and dynamics to watch) “Indicators” (Element or condition of “forces” To watch, taken from scenarios)) “Measures” (Events, data, information that define element or condition of “indicators”) “Signposts” (Significant threshold “measures” that are judged to be clear indications) Geopolitics, demographics and economics Emergence of trading blocks China joins WTO China abides by WTO rules and there are no sanction against that country Tariff reductions India, Brazil reduce chemical product duties below $__/T Regulatory/eco-factors Strictness of environmental regulations Global treaties implemented Global CO2 reduction treaty implemented by 2010 EU directives on fuel quality are improved and spread EU fuel quality directives are adopted by other regions, e.g. Eastern Europe, Russia Increasing use of lists (to identify “bad” products) Number of chemical products on toxics lists increase by __% Government support of environment Large government/corporate programs (like PNGV or FreedomCAR) funded Feedstocks Shift to low-cost feedstocks Commodities production moves to energy- rich countries Petrochemicals construction projects and production in energy-rich countries increases from _ to _% of total Technology advances Technology development activity Technology evolves rapidly across large companies Number and % of patents issued to large companies increases from __ to __ ; large companies carve out big new IP areas Government funding available fortechnology development Government R&D funding increases by __% Broad IP protection Shift toward effective worldwide patent system Patent disputes/claims between countries decrease from __ to __ per year Products Product harmonization Shift toward global specifications Multinational companies require suppliers to meet global specs Deselection of flexible PVC and phthalate plasticizers Major companies switch to alternatives Industry/competitors Industry structure Number of commodity producers High-profile chemical companies merge, e.g. SABIC buys Enichem Example Signposts for Another Industry and Company Develop Signposts
  • 57. 57 Example: Microtip-Based FED Has Five Signposts Showing Where Its Path May Go in One Direction or Another Time —> 2000 2001 2002 2004-5 Market & Macro economic Growth (including LCD) High-Voltage Long-Life Phosphor High- Throughput Laser Sealing First-Generation Microtip Commercialized Low-Voltage Long-Life Phosphor Develop Signposts
  • 58. 58 Decision-Makers (Intelligence Customers) Intelligence Network Focal Points Intelligence Network Members Information Search Specialists Information Sources DEFINE FOCUS FOCUS ON INDICATORS, MEASURES, AND SIGNPOSTS TARGET SPECIFIC INFORMATION MEASURE, ANALYZE AND INTERPRET Link to StrategyLink to Decision Link to SourcesLink to Network Experts Journals Associations Information Services UniversitiesInternet Databases Brokers A Comprehensive Intelligence Program Has Clear Linkages and Information Flows Major Tasks  Design intelligence process  Determine technology focus areas and priorities  Develop signposts based on forces, indicators and measures  Test process  Charter networks  Implement a training and communication plan Technology Intelligence
  • 60. 60 Key Success Factors of a New Process/System Implementation  Strong commitment and support of the client’s top management  Consensus building and active participation  Practical and proven process/system  Flexible process/system to accommodate improvement of process/system learning and staff capability by experience  Manual/handbook with many (real) case examples  Starting with simple (and flexible) process/system  Appropriate budget and time  Key staff training of a new process/system
  • 61. 61 Lessons Learned and Issues in Implementation  Don’t wait to launch a new process/system until a company (or its R&D center) culture changes to accept the new system. By implementing a simple process/system we can start to change the company (or its R&D center) culture.  Overcome of “Not-Invented-Here”  Collaboration barrier of “Silo Structure”  Organizational restructuring for a new process/system  Modification of R&D project evaluation, and staff evaluation and rewards (e.g., short-term low-impact low-risk vs. long-term high- impact high-risk)  Clear definition of new role, responsibility, and reward  Aligning R&D strategy/policy to company strategy/policy