The Effect of the New Economy on Tech Commercialization.pptVIP

The New Environment for Tech Commercialization Kathleen Allen Ph.D. Technology Commercialization What is it? Why do we do it? How can you make it work for you? Technological Change Today’s Technology Environment Key Factors The Importance of Speed Competitive advantage More profit potential from shortened time to market Fewer surprises The Lack of Scarcity Knowledge products at the core of technology environment KP defy the law of scarcity No diminishing returns Network efforts and economy of scale The New Product Dilemma Build new products Better Faster Cheaper Types of Technology The Starting Point: Defining Innovation Invention v. innovation Sustaining v. disruptive innovation (aka incremental v. radical) Characteristics of Disruptive Technology Less profitable in the early years Need mass market acceptance to achieve full value Cheaper, smaller, simpler, more convenient Display poor performance Disruptive Technologies: Looking for a Problem Primary Disruptive Technologies for Next Decade Gene Therapy Nanotechnology Wireless Why are Disruptive Technologies Important? Stats on the Best Product Development CompaniesResearch of R.G. Cooper 49.2 % of sales from new products 49.2% of profits from new products 3.5 ideas before achieving one winner ROI on successful new products is 96.9% Payback in 2.49 years Average market share = 47.3% 3DP: Tapping the Power of a Core Technology 3DP Why does the 3DP Process Create Opportunities? Why does it create opportunities? Produces disequilibrium in the market: value created from 3DP greater than cost of resources to make It is a disruptive technology with a relatively short life Opportunities large enough to compensate for opportunity cost, risk premium, liquidity premium Why do concepts fail? Not Understanding the Customer No compelling story What’s the Compelling Story? Why you? Why now? How do you plan to change the world? AKA: How do you heal the pain? The Technology Commercialization Process Bringin