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Technology & Innovation... 100 Slides

The Early Market

The Chasm

The Mainstream Market

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Key Words... Entrepreneurship – Venture Models – Driving Forces – Venture Capital – Growth Phases – Technology Life Cycle – The Chasm Model – The Transilience Map – Diffusion Curve – Technology Strategies – Knowledge Creation Process – Innovation Management – First Mover Advantage – Technology Acquisition – Core Technologies – Technology Portfolio – Patent Management – Intellectual Property – Innovation Types – Kano Model – R&D – New Technologies – Risk Bubble Diagram – Technology Evolution – E-Business Models – Growth Strategies – Start-up – Private Equity – Financing Life Cycle – Product Innovation Process


Who is the Entrepreneur?

High

Inventor

Entrepreneur

Promoter

Manager, Administrator

CREATIVITY AND INNOVATION

Low

High GENERAL MANAGEMENT SKILLS, BUSINESS KNOW-HOW, AND NETWORKS


Fit of Entrepreneur and Venture Capital

High

Low

Potential for singles or doubles, but many strike out

Potential for triples and home runs

Not hat and no cattle

Big hat, no cattle

ATTRACTIVENESS OF VENTURE OPPORTUNITY

High

Low ENTREPRENEUR‘S FIT AND BALANCE


Central Issues in Entrepreneurial Finance Shareholders

Value Creation

Customers

Employees

Allocating risks and returns Slicing the value pie Cash-Risk-Time

Debt: Take control Covering risk Equity: Staged commitments


Dominant Venture Modes Seed/Startup

High Growth

Maturity

Most

Most

Higher potential, growth-minded ventures

Higher potential, growth-minded ventures

ENTREPRENEURIAL

CHANGE AND UNCERTAINTY

Lifestyle, Mom and Pop ventures

Mature, bureaucratic dinosaurs

Least

Least Least

Most ADMINISTRATIVE Entrepreneurial domain Administrative domain


Principle Driving Forces

Seed/Startup Most

High Growth Driven by:

Maturity Most

Driven by:

• Collaboration within the firm • Opportunity focus • Resource requirements expanding

• Rejuvenators and innovators • Opportunity focus • Resource ownership

Organization: Informal; fluid

Organization: Formal

ENTREPRENEURIAL

CHANGE AND UNCERTAINTY

Driven by:

Driven by:

• Administration/trustees • Few owners • Product focus • A specific product • Burdensome resource requirements • Resource ownership Least Organization: None or too rigid

Organization: Formal

Least

Least Most

ADMINISTRATIVE Entrepreneurial domain Administrative domain


Financial Strategy Framework Opportunity

Financial strategy Degrees of strategic freedom:

Time to OOC Time to close Future alternatives Risk/Reward Personal concerns

Sources and deal structure

Business strategy

Dept Equity Other

Marketing Operations Finance Value creation

Financial requirements Driven by: Burn rate Operating needs Working capital Asset requirements and sales


The Five Tasks of Strategic Management Fund conception Target investment opportunities Raise capital for investment

Generate deal flow New and young companies with high potential Fund conception Target investment opportunities Fund conception Target investment opportunities

Typically 5 to 10 year window

Add value via: • Strategy development • Acitve board membership • Attract outside expertise • Attract later round investors • Attract other stakeholders, management • Provide contacts, access to info, people, institutions Craft and execute exit strategies • Sale • Liquidation • IPO • Alliances • Merger


Flows of Venture Capital Investors

Venture Capital Firms

Portfolio Companies

Provide capital

• Identity and screen opportunities • Transact and close deals • Monitor and add value • Harvest • Raise additional funds

Use capital

MONEY Limited partners Pension funds Individuals Corporations Insurance companies Foreign Endowments

2-3% ANNUAL FEE General partners 15-25% of capital gains

MONEY Opportunity Creation recognition and execution Entrepreneurs

IPOs/Mergers/Alliances

Return of principal plus 75-85% of capital gain

EQUITY

Value-creation and harvest


Growth Phases Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Large 5. Crisis of ?

4. Crisis of RED TAPE 3. Crisis of CONTROL

SIZE OF ORGANIZATION

2. Crisis of AUTONOMY 1. Crisis of LEADERSHIP

4. Growth through COORDINATION

3. Growth through DELEGATION 2. Growth through DIRECTION

1. Growth through CREATVITY

Small

5. Growth through COLLABORATION

Young

Evolution stages Revolution stages

Mature AGE OF ORGANIZATION


A Way to Think about Potential

Not Obvious

Black Holes

Home Runs

CONCEPT

Filling Stations

Squirrel Cages

Obvious

Small

Large GROWTH / ULTIMATE FINANCIAL POTENTIAL


Four Archetypal Structural Approaches to Coordination

High

Laissez-faire Management

Professional Management

Entrepreneurial Management

Bureaucratic Management

DELEGATION OF RESPONSIBILITY

Low Low

High USE OF FORMAL CONTROL MECHANISMS


The Technology Adoption Life Cycle

• Innovators

• Technology Enthusiasts

• Early Adopters

• Visionaries

• Early Majority

• Pragmatists

• Late Majority

• Conservatives

• Laggards

• Skeptics


The Chasm

The Mainstream Market

The Early Market The Chasm


Amar Bidhé Framework „Regular“ Start-ups

Promising

High

Revolutionary VC Backed Startups

UNCERTAINTY

Marginal

Corporate

Low

„Regular“ Corporation Low

High SCALE

Uncertainty: unqualifiable and immeasurable risk Scale:

expected total profit from opportunity


On Innovation Why do firms innovate? Product innovation

Appropriability (patent, secrecy...)

Novelty

Escaping from perfect competition Consumers accept to pay a higher price

Price > marginal cost Monopoly rent Economic value

Rent X market share (trade off) Monopoly rent Price > marginal cost Costs are decreasing

Process innovation

Escaping from perfect competition Novelty

Appropriability (patent, secrecy...)


Framework for Investigating the Impact of Innovation on Growth and Employment TECHNOLOGICAL CHANGE Industry-specific opportunities for innovation in firms

Behavior of firms:

NON INNOVATING FIRMS

FIRMS INNOVATING MAINLY IN PROCESSES

FIRMS INNOVATING MAINLY IN PRODUCTS

Innovative strategy of firms:

No R&D and innov. exp.

Some R&D and innov. exp. mainly for investment Growing productivity through restructuring Defence of market shares through cost reductions

High R&D and innov. exp. mainly for new products Growing productivity through higher quality Expans. of market share Search for new markets and monopoly profits

Active price competitiveness

Technological competitiveness

Stable productivity Cost savings, low quality Competitive strategy: External conditions of markets and demand: Outcomes for the firm:

Passive price competitiveness Stagnant

Losing out to competitors

Outcomes for the industry: Strong fall of value added and employm.

Growing

Stagnant

Growing

Stagnant

Growing

Falling or stable market shares

Stable or slow growing market shares (at the expense of competitors)

Fast growing market shares Developm. of new markets

Stable value added, falling employm. with growth of productivity

Slow growth of value added, stable employm. with growth of productivity

Strong growth of value added, some employm. growth


Types of Lock-In and Types of Switching Costs Type of lock-in

Switching costs

Contractual commitments

Compensatory or liquidated damages

Durable purchases

Replacement or equipment; tends to decline as the durable ages

Brand-specific training

Learning a new system, both direct costs and lost productivity; tends to decline as people learn to learn

Information and data bases

Converting data to new format; tends to rise over time as collection grows

Specialized suppliers

Funding of new supplier; may rise over time if capabilities are hard to find

Search costs

Combined buyer and seller search costs; includes learning about quality of alternatives

Loyalty programs

Any lost benefits from incumbent supplier, plus need to rebuild cumulative use


The Transilience Map

BREAKTHROUGH

Architectural

Niche creation

Technology Market

Customers Production

Revolutionary

Regular CONTINUITY


Organizational Capabilities A

C

B SM

SM F1

F2

F3

F1

F4

F2

SM

F3

F1

F4

F2

F3

F4 P1

P

P2

P

P3

Functional matrix

Functional

D

E

SM

P3 P2 P1

F

SM P1

P4 F1 F2

P2

P3

Balanced matrix

P4

SM P1

P2

P3

P4

F1

F3 F4

F2 F3 F4

Project matrix

Project-led organization

Project-based organization


A New Kind of Competition: Winner-Take-All

100 Winner

MARKET SHARE (in %)

50

Battle zone

Loser 0 TIME


The Classical Diffusion Curve Adoption Dynamics Saturation

Takeoff NUMBER OF USERS

Launch

TIME


Positive Feedback's Should not be Confused with Growth Popularity Adds Value in a Network Industry Virtuous cycle

VALUE TO USER

Vicious cycle

NUMBER OF COMPATIBLE USERS


The Whole Product Model

Potential Product Augmented Product

Expected Product Generic Product


The Simplified Whole Product Model Standards and Procedures

Training and Support

Additional Software

Generic Product

Additional Hardware

System Integration

Cables Installation and Debugging

Anything else you would need to achieve your compelling reason to buy


The Competitive-Positioning Compass SUPPORTERS

Visionaries

Conservative

Developing the Mainstream Market

Company

Developing the Early Market

Product

SPECIALIST

Technology Enthusiasts

GENERALIST

Pragmatist

Technology

Market SKEPTICS


Define the Battle SUPPORTERS • Benchmarks • Product Reviews • Design wins • Initial sales volumes • Trade press coverage • Visionary endorsements

• Revenues and profits • Strategic partners • Top tier customers • Full product line • Business press coverage • Financial analyst endorsements

Product Company SPECIALIST

GENERALIST Technology Market • Architecture • Schematics • Demos • Trials • Technology press coverage • Guru endorsements

• Market share • Third party support • Standards certification • Applications proliferation • Vertical press coverage • Industry analyst endorsements

SKEPTICS


Discontinuity and Life Cycle

High

Early Market

Prototypes

Pure Science

Chasm Technology Enthusiasts

Visionaries

Conservatives

Pragmatists

PARADIGM SHOCK

End of Life

Bowling Alley

Main Street

Low

Tornado

High

Low APPLICATION BREAKTHROUGH


Development of Technological Entrepreneurial Regions

Available Capital

Venture Capital

Academic Institutions

Scientific/ Technical Knowledge

Technological Enterprise

Trained Individuals

Service Enterprise Growth Economic & Employment Growth Successful

Spin-Off Enterprise

Unsuccessful


Technological Enterprise Space

High

TECHNOLOGY Future New MARKET Emerging Existing

Low Incremental Existing

Radical

New Generation

INNOVATION


Technological Strategic Planning Model

Core Competencies • Overall • Strategic Business Units

Evaluation of: • Organization‘s - Strengths - Weaknesses • Environmental - Opportunities - Threats

Corporate Strategy

Technological Strategy

Vision, Objectives, Goals

Environmental Analysis • Internal • External

Emerging Technologies • Assessment • Technological Forecast

Action Plan


Knowledge Creation Pyramid

Competitive Advantage

Continuous Innovation

Knowledge Creation


Technology Strategy Risk-Return Space

High

Cost Reduction Technology Peripheral

Pull

Push

RETURN Product Line Extension Low Low or Negative

Trend Expanding Market

RISK

High Trend Mature Market


Two-Dimensional Technological Space

Radical

New Generation

TECHNOLOGY Incremental

Existing

Existing

Emerging

New

MARKET

Future


Innovation Feedback Process

Expertise Technology, customers, markets, expertise, patents, trademarks, trade secrets

Invention

Implementation

Market space, competitors, suppliers

Economic Power

Market Penetration


Nested Enterprise Strategy Sets

Strategy Mission Vision


Key Elements of Business and Technological Strategy Domains Business Elements

Technology Elements

Market Forecasts

Technology Forecasts Enterprise Objectives

Programs Mission Space

Technological Space

General Needs

Technologies

Drives Bounds

Increasing Detail

Specific Requirements

Technological Applications

Projects


Technological Risk Domain

High

RISK

Moderate

Low

Existing

Incremental New Improvement Generation

TECHNOLOGY

Radical


Trilogy of Strategic Technology Decisions Which Way to Go Decision

Leadership Team Technological Potential

Make or Buy Decision

Technologies

Structures

Processes

Product, Process $ or Service

System Functions

Keep or Sell Decision


Relationship of Needs, Core Technologies and Competencies

Needs

Technologies to Meet Needs

Defining Capabilities

Market Products, Processes or Services

Core Technologies

Core Competencies


Strategic Technology Position

1

New Technology Vector

Core Technology Region

TECHNOLOGICAL ATTRACTIVENESS

Aging Technology

0

10 COMPETITIVE TECHNOLOGICAL STRENGTHS


Technological SWOT Analysis Diagram Numerous Enterprise Environmental Opportunities

Turnaround Strategy

Aggressive Strategy Substantial Enterprise Technological Strengths

Critical Enterprise Technological Weaknesses Defensive Strategy

Diversification Strategy

Major Technological Environmental Threats


Technological Strategic Clusters Emerging technology market with rapid growth

(„Go-for-it“) Strong technological competitive position

(„Niche“)

I II IV III

(„Partnering“)

Weak technological competitive position

(„No-Go or Change it“)

Existing technology market with slow to moderate growth


Internal and External Interactions for Technological Strategy Development External Environment

External Forces

Differentiating Capabilities Competencies and Technologies

Enterprise Business Strategy Technological Strategy

Internal Culture Enterprise Internal Environment

Organizational Learning


Components of a Competitive Analysis What drives the competition?

What the competition is doing and can do?

? ?? ? ?

? ?? ? ?

Future Goals

Current Strategy Competitor‘s Response Profile Strengths

Opportunity

Assumptions Held about itself and the industry

Weaknesses

Threats

Capabilities Strengths and weaknesses


Impact of Competitive Advantage SIZE OF TECHNOLOGICAL COMPETITVE ADVANTAGE Small

Large

Volume

Stalemate ROI

ROI

Few NUMBER OF WAYS TO ACHIEVE TECHNOLOGICAL COMPETITIVE ADVANTAGE

Market share

Market share

Specialization

Fragmented ROI

ROI

Many Market share

Market share

Barriers of Entry to Technological Market Space

Technological Competitive Differentiation


First Mover Advantage Model Environmental Opportunity Attractiveness First-Mover • Distinctive Competencies • Resources

Competitive Strategy

Later-Entrant • Distinctive Competencies • Resources

Competitive Strategy

First-Mover Positional Advantages

Cost

Differentiation

Economic Factors

Pre-emption Factors

Technological Factors

Behavioral Factors

Demand Uncertainty

Pre-emptive Investment

Technological Innovation Characteristics

Nature of Good

Entry Scale

Product Characteristics

Technological Change & Discontinuity

Market Type

Efficient Scale-toMarket Size

Later-Entrant Advantages • Imitation Costs • Free-Rider Effects • Scope Economics • Learning from Pioneer‘s Mistakes

Market Evolution Buyer‘s Investment in Cospecialized Assets

Advertising Intensity Response Time Scope Economies

Overall Magnitude of First-Mover Advantage Market Share Performance • Absolute • Relative

Profitability Performance • Return on Assets • Return on Sales


Financing Life Cycle Venture Capitalist

FFF & Angels

Seed Capital & Early Stage

Early Growth

Enterprise Cash Flow

Investment Banks & Banks

Later Growth

Mezzanine 3rd

Public Market

2nd

Initial Public Offering

1st

Valley of Death

Break-even point

Emerging Growth

Time

Enterprise Financing


Break-Even Regions

Cash flow Returned capital breakeven

Cumulative revenue

Cash flow breakeven

$ EVA breakeven

Opportunity cost based on capital risk assumed

P&L breakeven


Financial Strategy Framework Due dilligence process

Investor Investment strategy

Alternative Investments

Time to close deal

Financial Strategy

Risk/Reward Space

Opportunity

Debt

Entrepreneurial concerns Time to out of cash Future alternatives

Sources and Deal Structure

Equity Other

Burn Rate Operating Requirements

Financial Requirements

Business Strategy

Working Capital Market Strategy Asset Requirement

Technological Strategy


Financing Space Highest cost for enterprise

Preferred stock

Subordinated Debt

Stock

Options

Highest risk for investors but lower potential risk to enterprise

Lowest risk for investors but highest potential risk to enterprise

Lowest cost for enterprise

RISK PLANE

Senior Debt COST PLANE


Investor Perceived Risk-Return Space

Angels High

FFF VCs Entrepreneur

PERCEIVED RETURN

Moderate

Realistic Investors

Banks Low

Low

Moderate PERCEIVED RISK

High


Technological Risk-Return Space

High

RISK

Moderate

High Moderate

Low

Low Incremental Radical Existing New Generation TECHNOLOGY

RETURN


Technological Market Risk Space

High

RISK

Moderate

New Low

Developing Existing Low

Moderate

High

POTENTIAL MARKET GROWTH

MARKET DEVELOPMENT STAGE


Enterprise Risk-Return Space

100 80 ANNUAL RETURN (%)

60 40 20

High Moderate Low

0 Seed & Early Later Mezzanine Buy-out Early Stage Growth Growth or IPO ENTERPRISE STAGE

RISK


Davenport’s Investment Risk-Return Space 100 Data from Venture Capitalist 80

EXPECTED ANNUAL RETURN (%)

Davenport‘s Risk/ Return Space

60

40

20

0 Low

Moderate

Risky

INVESTMENT RISK

Most Risky


New Enterprise Growth Space

Ability to Grow

Propensity for Growth

Low

High

Life-style

High-growth

Marginal

Successful and growing


Three-Dimensional Technological Management Model Management skills Management roles SKILLS & EXPERTISE

Critical functions Managerial functions Functional Management

Technology buildup Preproject

Resources

Procedures

Project ASSETS

Production Marketing Service

PROCESSES

Structure Strategy

Culture


Internal-External Technology Acquisition Model

Technology Relatedness Degree of Competitiveness

Decision Mechanism

Core Enterprise Technology

Degree of Protection Managerial Capabilities Life of Technology Enterprise Experience with External Technology

External Technology Acquisition


Technology Leadership Space

High HUMAN RESOURCES ORIENTATION

Life style focus

Team focus Public Enterprise

Low

Unfocused

Authority focus

Growth Early Stage Start-up

Low

High

GROWTH ORIENTATION

DEVELOPMENT STAGE


Enterprise Management Process Decision Process Enterprise Structure

Mission & Strategy

Customer Satisfaction

Value Improvement

Enterprise Learning

Benchmarking


The 7 Elements Overview Focus on customer benefits – not on customer

Strategic framework

Controlling of project portfolio (innovation controlling)

Fast project realization

Management of pre-project phase Tools (methods)

Create innovative environment


Technological Challenges

Managing the USE of Technology Rapidly Changing Technologies

Managing organizational response to the introduction of rapidly changing technologies e.g.: • Identifying and using IT • Using technology for new services

Slowly Changing Technologies

Developing organizations that can make the most efficient and costeffective use of established technologies e.g.: • Labor-intensive retailing and service organizations

Managing the CREATION of Technology

Managing highly skilled technologists to create new technologies e.g.: • Managing R&D labs • Marketing high-tech products

Managing the most efficient and cost-effective creation of new products e.g.: • World-class, low-tech manufacturing • Consumer-oriented prod. design & marketing


Timing and Impact of Management Attention and Influence

PHASES

Knowledge Acquisition

Concept Investigation

Basic Design

High Ability to Influence Outcome

INDEX OF ATTENTION AND INFLUENCE Actual Management Activity Profile Low

Prototype Building

Pilot Production

Manufacturing Ramp-Up


Priority Issues in Technology and Innovation Management 200

GROWING IMPORTANCE Building Seamless Innovation Processes

180 160

IMPORTANCE LEVEL (NEXT 5 YEARS)

Linking Technology to Business

Changing Culture and Values in R&D

140 120

Building/Leveraging Competences

100 80

Managing for R&D Efficiency

Managing R&D in a Global World

60

Rethinking Technology Management DECLINING IMPORTANCE

40

40

60

80 100 120

140

160

180

200

IMPORTANCE LEVEL (PAST 5 YEARS)


Technological Progress I

Base Technology

PERFORMANCE OF THE TECHNOLOGY

Key Technology

Pacemaker Technology

CUMMULATED R&D SPENDING


Technological Progress II

Higher Potential PERFORMANCE OF THE TECHNOLOGY

Old Technology

CUMMULATED R&D SPENDING

New Technology


Core Competencies: Open Markets, Difficult to Imitate

Processes

Core Competencies Technologies

Capabilities


Core Competencies: Market and Resources Low

Company View

High

High

Competency 1 Competency 5

Market View

Competency 4

Competency 6

Low

Competency 2 Competency 3


A Consumer Products Competency Map Customer Care

Trade Partnering

Space and Replenishment Management

Service Excellence

Electronic Data Interchange

Trade Marketing

Service Innovation

Category Management

Space Management

Promo Management

Customer „Partners“

Core Competency

End Customer Delight

Expectation Trend Management

Delight and Loyalty Measurement

Capabilities

Processes

Sub-Processes

Customer Database

Resources


Technology Portfolio: 5 Generic Strategies

Investing Pilot project STRATEGIC RELEVANCE

Optimizing

Observation

Desinvesting

TECHNOLOGICAL MATURITY/ STRENGTH (INTERNAL VIEW)


Platforms Link Technology and Market INTEGRATION OF MARKET AND TECHNOLOGIES VIA PRODUCT PLATFORM Technologies

Technical core competencies

„MarketInformation flow“

Product platforms

Product groups Individual products Market segments

Customer needs

„Technology flow“


Platforms: Management Focus

Vision

IN THE PAST

Platforms

Product family

Individual products

TODAY


Value vs. Volume

Value

Decisions

Knowledge

Information

Volume

Data


Innovation & Distinctive Capability = Competitive Advantage Innovation

Patent

Secret

Strategy

Valium

Coke

Sony Walkman

Competitive Advantage


A Model of a Knowledge Company

INTELLECTUAL CAPITAL

Human Resources

STRUCTUAL CAPITAL

Intellectual Assets


A Model of Intellectual Capital

Human Resources

Intellectual Assets Intellectual Property


The Intellectual Capital of the Firm Intellectual Assets

Human Capital

Documents Drawings Programs Data Inventions Processes

Experiences Know-how Skills Creativity

Intellectual Property Patents Copyrights Trademarks Trade Secrets Semiconductor Masks


Knowledge Management Strategies

Unfocused Strategy Codification Strategy Increase the absolute level of codification across all dimensions of codification and knowledge.

Tacitness Strategy

Decrease the absolute level of codification across all dimensions of codification and organizational knowledge.

Focused Strategy For each type of organizational knowledge decrease the level of codification on those dimensions of codification which transfer knowledge fastest and most accurately.

For each type of organizational knowledge decrease the level of codification on those dimensions of codification which pose greatest risks of involuntary transfer of knowledge.


Intellectual Property Management Defending Patents

Patent selling, buying, licensing

Identification of Patent weaknesses

Infringement of Patents

Patent analysis for technology trends

Work with external Patent Consultants

Intellectual Property Management

Patent strategy

Patent search

Patent abstracts Patent Mapping with competitors‘ patents Patent writing

Brain Maps Key Know How holder maps (competitors)


Positioning and Evaluating Assets

Technology Push Technology Risk Clear Extension for Eastman

Existing Business

MARKETS Known to Industry

Unknown Market to World

Technology & Market PushLarge Risk

Market Push Market Risk

Incremental for Eastman

New to Eastman TECHNOLOGY TYPE

New to the World


Separate Pre-project and Implementation: Open vs. Tight Concept and planning

Implementation Project planning

Specs and business plan Generation of ideas

Market & Product concept

Detailed specs Detail Design

Potential influence Product specifications and costs

Few structured activities

Prototype

Freezing Point / Release of tools any jigs

Structured processes

etc.


Types of Innovation: Cost of Change is Important High

Aircraft turbines

Software

Multimedia electronics

Cars

TECHNOLOGY INTENSITY

Cosmetics

New restaurant concept

Low

Low

High

COST OF ENGINEERING CHANGE AT LATE STATE


Selection of the Right Project Organization Coordination (Lightweight team)

Team (Heavyweight team)

• Specialists

• Specialists • Coordination

• Management • Rapid

• Clear priority • Rapid

• Slow • Big control circ

• Slow • Project leader difficult position

• Line / Project

• Subculture • Spec know-how

Functional

+ _

Stable environment

Integration

Pressure of time

Task-Force

Fire brigade New business


Indicators of Horizontal Relations Between Core Firms Position of the other

Independent

Cooperation or Competition

Independent with Influence

Interdependent

Dependent with Influence

Dependent without Influence

Compliance

Coalition

Direct Control

Structural Control

One directional technology flow Attitude of (second sourcing, licensing) core firm System integration (common standards) Controlling (minority) share in core firm Technology/patent exchange (cross-licensing, technology share) Joint R&D (research, pacts, joint development) Production consortium and/or cartel (joint production) Merger, Joint Venture (50/50) Direct investment, minority share Acquisition OEM agreement Distribution


Five Major Trends Drive the Evolution of R&D Organization Synergy

Decentral R&D

Polycentric decentralized R&D

Integrated R&D Network

Competences

  R&D Hub Model

Tapping

 Central R&D

Ethnocentric centralized R&D

Competition

Costs

  External Orientation

Geocentric centralized R&D

Cooperation


Survey of R&D Tools Product = Process Planning Ideas

Strategy

Product program

Product = Process Realization Concept

Goals

Development

Integration and test

Production

Introduction

Target Costing

Marketing information system

Cost reduction for existing products Cost management for suppliers Quality Function Deployment

Creativity techniques

Statistical Process Control Failure Mode and Effect Analyses

Conjoint Analysis

Design for ... Computer aided ... Database-, Simulation-, Expert Systems Design of Experiments

Pilot lot


The Kano Model CUSTOMER SATISFACTION

Excitement Performance DEGREE OF ACHIEVEMENT

Basic


New Product from the Pipeline Market and Competence Driven Corporate Strategies • Navigator Book • Corporate Product Strategy

Market Pull

Market Requirements • Field Operations • Customers

Product Management Product Creation Process

Technology Push

Core Competencies • Skills • Technologies • Resources

Technology Management

Product Planning • Harmonization with Field Operations • Resources Check • Idea Backlog

New Products


The Core Competence Process: Actions are Important! Identification of actual Core Competencies

Technology Forecasting Market Strategy

Definition of Future Core Competencies

Evaluation of Technology Portfolio

Gap-Analysis

Actions

Road Maps, R&D projects

Resource Allocation

R&D Organization

Human Resources

Outsourcing


Portfolio of Technical Competencies

High

Invest Pilot project • Strategic impact is recognized • Pilot projects with scantly budgets, „High-Risk-High-Impact“-Projects • External partner helps to build up internal competence

STRATEGIC IMPACT

• Long-term investments within core competencies • ROI must be lined up in the long term, short-term success rather not possible

Optimize • Core Competence, but strategic impact is medium or rather decreasing • ROI should be lined up in the short term

Observation • No budget available • Technology-owner is responsible • Visit exhibitions, congresses • Study magazines • Cooperation with universities

Low

Desinvestment • No competitive advantages within the next 5 or 10 years • Resources should decrease and be freed for new technology potentials

Low

High INTERNAL RESOURCES


Tasks of IT in Dispersed R&D Teams Rational Level: Information richness Emotional Level: Social Presence Explicit Knowledge

INFORMATION – EXCHANGE high

COORDINATION SUPPORT high

low

high

CREATIVITY – PROMOTION

high DEVELOPMENT OF INFORMAL NETWORK

Tacit Knowledge


Project Categories: Market / Technologies

High

RELEVANCE FOR NEW MARKETS / MARKET SEGMENT

Variants Variants

Low Low

High INTRODUCTION OF NEW TECHNOLOGIES


A Balanced Portfolio - The Risk-Reward Diagrams High

Pearls

PROBABILITY OF TECHNICAL SUCCESS

Bread and Butter

0

10M REWARD (NPV)

White Elephants (difficult to kill)

Oysters Low


Market and Technology Risk Bubble Diagram

Very high

MARKET RISK

Moderate

Very low

Very low

Moderate

TECHNOLOGY RISK

Very high


Rohm and Haas - Strategic Intent Bubble Diagram Project A Food/Pharm Project B Sugar Project D Cat/Chem Process

Project C

Project F MARKET SEGMENTS

Nuclear

Drink Water Industrial Water Project E Other Defend

Grow

New Application

New Fundamental Business

STRATEGIC INTENT


The New Business Enthusiasm Curve The field trail worked

Ecstasy

We have an order!

Yes it is! The customers like it!

It works!

New costs look great

We have a fix Costs are too high It‘s not proprietary

Despair

Documentation done!

No, he loves it

We don‘t have enough resources

The market estimate was wrong

We need help

Deliveries are late „Serveral“ failures reported

Time The boss hates the project

and inventory

We have all the sizes

We need documentation

They need all the sizes

Failures in field trail

and the approvals

Installation problem!

It doesn‘t always

I have an idea

and orders

We‘ll make it

It works!

Sounds great

They like it

Costs are better


Possible Timeline for Transmission Technology Evolution

Japan

PDC

W-CDMA

Personal Digital Cellular

Wideband CDMA

GSM

GPRS

Global System for Mobile communication

Global Packet Radio Service

Europe

UTMS Universal Mobile Telecommunications System (same as W-CDMA)

EDGE

TDMA

Enhanced Data rates for Global Evolution

Time Division Multiple Access USA

CDMA Code Division Multiple Access

1997

1998

1999

2000

CDMA 2000

upgrade 2001

2002

CDMA 3G Standard

2003

Key: 2 G

2004

2.5 G

2005

3G


The Virtual Marketplace Model

B2B Marketplace

Buyer 1

Platform 1 Seller 1

Buyer 2 Platform 2

Buyer 3

Seller 2

Platform 3 Buyer 4

Seller 3 Platform 4

Infomediary: Multiple buyers to multiple sellers

Competitive bidding: Auction / Exchange / Reverse auction / Grouped buying

Seller 4


Illustrative Map of E-Enabled Business Processes

Eprocurement

Online R&D

Suppliers: • Energy • Equipment • Non-core products

Online construction facilitator E-transmission control

E-shop E-monitoring

Online Meter reading

B2E

E-trading

Risk manager online

Information Exchanger

Customers: online billing

Idea webgenerator

Finance ASP

Online Customer Service

• Large • Small/Medium • Residential


Illustrative Map of E-Business Models in Part of Traditional Value Chain Eprocurement

E-mail

Network Negotiation

Network companies

Energy producers

Market forecaster

Marketing Capacity broker

Risk management

Aggregator Value chain integrator

E-trade & auctions

Sales

Billing

Sale agt price comparer

Customer Service

Energy saver

Energy purchasing Product development Consumption analyst

Retail market place

Virtual Community

Customers:


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100 Technology & Innovation models and diagrams for powerpoint presentations  

The Mainstream Market Powered by www.drawpack.com. All rights reserved. The Chasm The Early Market Key Words... GENERAL MANAGEMENT SKILLS, B...

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