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ESTIMATING DEMAND
Prototype Test
Concept Test
Group Test
Focus Group
Creative Workshop
(questionnaires
AT&T Data Terminal
Market
Xerox Docutech System
Program, 25
Boeing with United
Airlines Jet 777)
Microsoft Windows 9525000 tests
Opinions of Experts
Discussion Group – Synthesis of opinions - Delphi Method
TECHNOLOGY VERSUS MARKET
NEED APPROACH
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WHY TECHNOLOGY?
To Solve a Problem
To fulfill an Existing Need
To Fulfill a Future Need
To Propose a Better Solution
WAY OF THINKING & SOCIAL LIMITS
Marconi Radio: From Steamship to Newspapers
Thomas Watson: Compute to Computer
Transistors: From Deaf to Computer
TECHNOLOGY LIFE CYCLE
(Trajectory of Technological Improvement)
Application’s
Efficiency
Sustained Technology
Emergence
Growth Maturity Decline
Man hours invested
T
TECHNOLOGY LIFE CYCLE &
TECHNOLOGY CHANGE
Application’s
(Disruptive Technology)
Efficiency
T2
T1
e1
e0
t0
t1
Man hours invested/Years
T
READ-WRITE HEAD TECHNOLOGY
(Component –Architecture Disc Drive)
T3: Magneto resistive head
Recording Density
T2: Thin film head
T1: Ferrite head technology
e1
e0 Smaller, more
precise dimensions
t0
t1
Man hours invested/Years
T
S CURVES FOR FERRITE/OXYDE
TECHNOLOGIES FUJITSU-CDC
Area Density (millions of
bits/square inch)
CDC
30
Fujitsu
10
2
Years
t0
t1
T
81:10%
81: 60%
89: 37%
89: 33%
TECHNOLOGY CLASSIFICATION
Basic Technology
Current in the field
Key Technology
Specific to the firm, patent
Emerging Technology
Beginning implementation
stage
CAD/CAM Aeronautics
Titanium
“
CAD/CAM Automobile
Titanium Submarines
CAD/CAM Textiles(Benetton)
Titanium Watches,Prosthesis
TECHNOLOGY PORTFOLIO
Degree of Control
Developed Adapted
Competitive Impact
High
Medium
High
Medium
Low
Borrowed
High
SUPPLIER OF COMMUNICATIONS
NETWORKING
FROM MAINSTREAM MARKET TO
MARKET/TECHNOLOGY INNOVATION AND
BACK
• Requested speed and total capacity to 8-12
disc drive : Control Data
• 3.5 inch Disc Drive: Conner and Quantum
• 5.25 inch : Seagate, Tandon, Miniscribe
• 8-12 inch using 5.25 and 3.5 inch
architecture
INTELLECTUAL PROPERTY
• Utility Patent
Processes
Machine: combination of
elements
Article: tangible item
Composition of matter
• Design Patent
New, original, ornamental
design
• Plant Patent
Business processes: Dell’s
build to order
•Copyright
Protect the particular way in
which a work is expressed
France life + 50 years
Russia: life + 20 years
Germany : perpetual
UK: 28+14 years
Bern Convention US Europe :
life + 70-95-120 from creation
•Trade Marks
Digital Millennium Copyright Act(98); Digital Right
Management (HW+SW)
Easy of use benefit
Social-personal benefit
PRODUCT LIFE CYCLE (PLC)
Sales
Introduction
Decline
Growth
Mature
Time
INPUT & INDUSTRY-DEMAND
STRUCTURE BEHIND PLC
Introduction
Growth
Mature 1
Technology Frequent
Changes
Additional
Changes in
Production
Capital
Intensity
Critical
Manpower
Industry
Structure
Demand
Structure
High,
High
Obsolescence
Management Finance
Low
Inventor
Techn.
Barrier
Specialized
Innovators
Few
Changes
Mergers
Competition
Early
Majority
Late
Majority
Mature 2
Periodic
Changes
High
Sales
Sales
Substitution
Time
Sales
Technology Change Time
Extension
Time
Sales
Mature Extension
Time
VENTURE CAPITAL
Link to
operation
Capability
Strategic
Objectives
Driving advances
tight
loose
strategy of current
business
Financial
Emergent
Microsoft-Internet new
architecture
Potential new businesses
Intel-Berkeley Networks
lower cost switches and
routers for communication
Enabling
Passive Financial return
Complement strategy
only
Intel: video, audio…
Source: Chesbrowgh H.W. “Making Sense of Corporate Venture Capital”
Harvar Busienss School piblishing 2002
MARKET & FIRM LIFE CYCLE
Market Phase Start up
Targeted Value
Functionality
Reliability
Convenience
Price
International
Global
FIRM-MARKET LIFE CYCLE &
INNOVATION STRATEGY
Market Phase Emerging
Firm Stage
Start up
International
Global
Discontinuous
Market &
Technology
Discontinuous
Product &
Technology
Current
Improvement
Growing
Mature
Discontinuous
Product
Discontinuous
Product
Current
Improvement
Discontinuous
Market and
Product
Discontinuous
Manufacturing
Product &
Technology
Current
Improvement
FIRM-MARKET LIFE CYCLE &
INNOVATION STRATEGY
Market Phase Emerging
Firm Stage
Functionality
Start up
Growing
Mature
Functionality
Functionality
International Reliability
Convenience
Functionality
Reliability
Convenience
Functionality
Global
Reliability
ORGANIZATIONAL
ARCHITECTURE
Old Organization
• Lack of Integration between
Knowledge in each Dpt.
• Difficulty of Involving many
people in Discussion
• Middle Managers: Filters &
Diffusers of Commands
New Organization
• Employee Competence
• Internal StructureCompany Flow
• External StructureCustomer Interaction
• Middle Managers:
Creating new Knowledge
THE OLD ORGANIZATION
CEO
Chief Executive Officer
COO
CFO
CTO
CIO
Chief Operations
Officer
Chief Financial
Officer
Chief Technology
Officer
Chief Information
Officer
R&D
Marketing
Manufacturing
Human Resources
Sales
RESTRUCTURING ACTIVITIES
Information Flow
Short Run
Long Run
Knowledge
Innovation
Operations
THE NEW ORGANIZATION
CEO
COO
Chef Executive
Officer
Chief Operations
Officer
CKO
Chief Knowledge
Officer
CINO
Chief Innovation
Officer
OPERATING,INNOVATION
& KNOWLEDGE POWER
Chief Operating
Officer - COO
External Structure
Chief Innovation
Officer -CINO
Internal Structure
Continuous
Innovation:
Product Dvt,
Manufacturing,
Sales, Short term
Discontinuous
Innovation:
Technology,
Marketing, Long
term
Chief Knowledge
Officer-CKO
Employee Competence
Assets Management:
Finance, Knowledge,
Human resource