The document discusses technology exploitation and commercialization. It addresses: 1) Technology exploitation involves utilizing new technology to improve products, services, and processes. It has three sub-processes: commercialization, technology transfer, and technology utilization. 2) There are several types of commercialization, including in-house development and production, selling technology through licensing or joint ventures, and external commercialization involving both internal and external factors. 3) Technology utilization refers to fully using existing technologies to increase efficiency and provide information for improvement, such as through benchmarking and total quality management. It can occur at the plant, national, or international level.

1. TECHNOLOGY MANAGEMENT
BTMU 1023
Lecture 8
Technology Exploitation

2. • Understand the complexity of exploitation
• Understand the key features of exploitation
• Understand the three sub- procesess of exploitation
Learning outcomes

3. TM
activities
acquisition
exploitation
identification
learning
protection
selection

4. •Concern with achieving profit or other benefits
from technology.
•The utilization of new technology to improve the
performance of product, service, processes
Definition of technology exploitation

5. Sub processes of technology exploitation
• Commercialization/ marketing
• Technology transfer
• Technology utilization
Technology exploitation

6. • Successful transfer of an invention / idea to a sellable product in
markets.
• It might be at the firm or national level.
Technology commercialization is the process of taking
newly developed technologies to the market for the purpose of
profit Technology Commercialization
Commercialization

7. • In-house development
• production and distribution of technology are carried
out within the company
• Selling technology
• idea, prototype
• patent (licensing)
• Joint commercialization
• joint ventures, alliances..
Types of commercialization

8. • Careful planning of the relationships among: a company’s
technologies, its markets, and its development activities.
• Planning for the fullest market exploitation of all its technologies to
maximize the rate of return on its technology investment.
Decision on commercialization

9. Why sell technologies?
• ever increasing costs and risks of R&D
• not fit into a company’s overall strategy
• limited patents protection
• competition fear
• financial and other problems preventing market exploitation
• lack of production facilities all the world markets for a given
technology
External commercialization

10. • Internal factors:
• Competencies
• Corporate resources
• External factors:
• Industry characteristics
• Competitors
• Suppliers
• Customers
• Technology life cycle
External commercialization

11. Profiting from Technological Innovation
• Why innovating firms often fail to obtain significant economic returns
from an innovation, while customers, imitators, and other industry
participants benefit?
• Refer to lecture 5
• The disadvantages of first mover

12. Who wins from innovation?
• the firm who is first to market,
• follower firms,
• firms that have related capabilities that the innovator
needs.
A model explaining who wins from innovation
suggests the following:
Regimes of appropriability- scope in which innovation can
be protected
Dominant design
• Complementary assets
profiting from innovation

13. • When imitation is easy, markets don’t work well, and the profits from
innovation goes to the owners of certain complementary assets NOT to
innovator.
• Solution for the innovating firm to establish a prior position in the
complementary assets.
• Innovating firms without the requisite manufacturing and related
capacities may die.

15. MARKETING
• Marketing is concerned with anticipating customers’ future needs
and wants,
• often through market research and creative imagination. Two major
factors of marketing are:
• Recruitment of new customers
• Retention and expansion of relationship with existing customers
• Marketing plan use four “Ps” mix (Product, Price, Promotion and
Place) should reflect the wants and desires of consumers in target
market to be successful.
Marketing

16. • Some high-tech companies believe that marketing is unnecessary
• The role of marketing is downplayed or misunderstood
• Marketing for high-tech products is complicated and difficult
• Marketing is an after-thought to product development
• Cross-functional collaboration is difficult
• High-technology companies are not “market-driven”
Why do so many High Tech Innovations
fail?

17. • Technological superiority alone does not ensure success for high-
tech products
• Combination of technology superiority AND marketing competence
maximizes the odds of success.
• Requires intimate understanding of customers
Importance of High Tech Marketing

18. • “High-Tech Marketing” can mean:
• Use of technology for marketing purposes
• “New media,” paid search, online advertising, Web 2.0, etc.
• Covered primarily in Chapter 11 on Advertising and Promotion
• Marketing of high-tech products/innovations
• Primary focus of this book: how standard marketing strategies are adapted/modified for
high-tech products
Distinction Between “High-Tech Marketing” &
“Marketing of High-Tech Products

19. Market
Uncertainty
Technological
Uncertainty
Competitive
Volatility
Marketing of
High-Tech
Products &
Innovations
Characterizing the High-Tech Environment:
Common Characteristics

20. Market uncertainty
Ambiguity about the type and extent of customer needs that can be
satisfied by a particular technology
• Consumer fear, uncertainty and doubt (FUD)
• Customer needs change rapidly and unpredictably
• Customer anxiety over the lack of standards and dominant design
• Uncertainty over the pace of adoption
• Uncertainty over/inability to forecast market size
Characterizing the High-Tech Environment:
Common Characteristics

21. Technology uncertainty
Not knowing whether the technology or the company
can deliver on its promise
• Uncertainty over whether the new innovation will function as
promised
• Uncertainty over timetable for new product development
• Ambiguity over whether the supplier will be able to fix
customer problems with the technology
• Concerns over unanticipated/unintended consequences
• Concerns over obsolescence
Characterizing the High-Tech Environment:
Common Characteristics

22. Market volatility
Changes in competitors, offerings, strategies
• Uncertainty over who will be future competitors
• Uncertainty over “the rules of the game” (i.e., competitive
strategies and tactics)
• Uncertainty over “product form” competition
• Competition between product classes vs. between different
brands of the same product
• “Convergence”
Characterizing the High-Tech Environment:
Common Characteristics

23. WHO ARE THE CUSTOMERS OF HIGH TECH
PRODUCT?
• Innovators: People who seek new technologies and products for the sake
of technology itself.
• Early Adopters: Customers looking for for a solution for a problem they
have. These people usually are willing to see the upside in a solution and be
more forgiving if the product is less polished as long as it provides a
solution for their problem.
• Early Majority: This segment is also looking for a product to solve their
problem but typically wait for others to try the product out first. The early
majority waits for the product to be more polished before they consider it
as an option.
• Late Majority: This segments trends to customers or businesses that wait
for a product to be widely adopted, have all the kinks worked out and a
wide support system. Think of the typical business that supports and uses
Windows 7 while Windows 10 is available.
• Laggards: This audience does not have an interest in technology/product
solutions to their problems
Who are the consumers of high tech product?

26. PREREQUISITES FOR THE MARKETING OF A TECHNOLOGY
A strategy for a full portfolio of technologies.
Decisions on acquisition or divestment of individual
technologies.
Awareness of the value of developing technology.
Clear understanding of the sale of a technology through
license and the sale of products based on that technology.
Recognition of difference between a technology buyer and
a technology seller.
• Reliance on technology marketers.
pre requisites for the marketing of technology

27. • Technology transfer is the process by which technology,
knowledge, and information developed by a creator is
applied and utilised by an applier (Khalil, 2000).
Technology transfer

30. Technology transfer
Types of TT
• TT from a company to a
company
• TT from a non-profit organization
to a company
• TT from R&D to manufacturing
department
• TT from individual to department
• International TT
Modes of TT
• over-the-wall
• receivers as consultants
(developers have main
responsibility)
• team mode: receivers as co-
developers
• apprenticeship mode: receivers
as developers

31. Having technological resources does not guarantee the full
utilization of a technology.
Could be underutilized
The performance of existing technologies should be
measured and evaluated continuously that will help to
increase their efficiency as well as supply information for
improvement. Example benchmarking and TQM
Occurs :
• At the plant level
• At the national level / multi-plants
• At the international level
Technology utilization

32. 1. What are the key features of technology exploitation?
2. What are the types of commercialization?
3. What is technology utilization?
Technology utilization

33. Reference
Cetindamar, D., Phaal, R., & Probert, D.
(2016). Technology management: activities and tools.
Macmillan International Higher Education.
Other sources from the internet
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