Commercialization of Innovative Technologies E-Book

C. Joseph Touhill

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 420

Veröffentlichungsjahr: 2011

Beschreibung

This book helps you find innovative new technology ideas and guides you through the complete lifecycle of product innovation, including screening, funding, development, and commercialization. It gives you an edge by enabling you to start off with a solid foundation and strategy. Commercialization of Innovative Technologies focuses on three core areas that set the stage for successful commercialization: Developing and managing a strong, flexible "innovation team" of inventors, investors, technologists, and entrepreneurs; building a portfolio that spreads risk; leveraging input from technologists throughout the commercialization process.

Leseprobe

Contents

Foreword

Acknowledgments

1. ESTABLISHING PERSPECTIVE

1.1 ORGANIZATION OF THE BOOK

1.2 THE IMPORTANCE OF VIEWPOINT

1.3 THE IMPORTANCE OF FLEXIBILITY

1.4 CAN ENTREPRENEURSHIP BE TAUGHT?

1.5 KEY POINTS

2. OUR PERSPECTIVE

2.1 STRATEGY DEVELOPMENT

2.2 TECHNOLOGY ASSESSMENT

2.3 TECHNOLOGY DEVELOPMENT

2.4 TECHNOLOGY MANAGEMENT

2.5 KEY POINTS

3. DEVELOPING AN ENDGAME

3.1 ALTERNATIVE ENDGAMES

3.2 USING ACQUISITION TO FILL IN HOLES

3.3 SHOWSTOPPERS

3.4 ENDGAME OBJECTIVE REALIZED—SORT OF

3.5 WHAT’S A WIDGET

3.6 MAKING IT WORK

3.7 KEY POINTS

4. FINDING IDEAS

4.1 IF YOU HAVE MONEY, IDEAS FIND YOU

4.2 IDEAS MUST BE CONSISTENT WITH THE OVERALL PLAN

4.3 INVENTORS/INNOVATORS MUST BE PREPARED TO GIVE UP EQUITY

4.4 KEY POINTS

5. INVESTING IN IDEAS

5.1 BEWARE OF EYE-POPPING PROJECTIONS

5.2 REMEMBER THIS IS RISK CAPITAL; ONLY A PERCENTAGE OF IDEAS PAY OFF

5.3 STRUCTURE THE PAYOFF WHEN THE SHIP DOCKS, NOT WHEN IT SAILS

5.4 BET ON PEOPLE WITH PROVEN TRACK RECORDS

5.5 TAKE CARE IN ASSEMBLING THE INVESTMENT GROUP

5.6 KEY POINTS

6. ASSESSING IDEAS

6.1 THE ASSESSMENT PROCESS

6.2 THE NEED FOR EXCLUSIVE RIGHTS

6.3 TECHNOLOGICAL ASSESSMENTS ARE EASY; MARKETING AND BUSINESS ASSESSMENTS ARE DIFFICULT

6.4 IDEAS THAT ARE 10 PERCENT BETTER AREN’T GOOD ENOUGH

6.5 NOT SKIMPING ON TIME OR MONEY WHEN A GREAT IDEA SHOWS UP

6.6 TAPPING THE FULL RESOURCES OF THE TEAM BEFORE MOVING AHEAD

6.7 MOVING AHEAD WITH DEVELOPMENT, THEN REVISING THE PLAN

6.8 KEY POINTS

7. PAYING FOR AND CONTROLLING IDEAS

7.1 BUYER AND SELLER WISH LISTS

7.2 USING WISH LISTS TO REACH AGREEMENT

7.3 IS BUYING THE COMPANY A GOOD THING?

7.4 INTELLECTUAL PROPERTY: THE MOST VALUABLE ASSET

7.5 PAYING WITH FUTURE PROFITS WHENEVER POSSIBLE

7.6 KEY POINTS

8. DEVELOPING IDEAS

8.1 REMEMBER: THIS IS BUSINESS, NOT RESEARCH

8.2 MAINTAINING CONTROL OF DEVELOPMENT EFFORTS

8.3 THE GOAL OF DEVELOPMENT IS THE BASIS OF DESIGN

8.4 THE IMPORTANCE OF FEASIBILITY STUDIES

8.5 THE VALUE AND MEANING OF ESTIMATES

8.6 KNOWING WHEN TO CELEBRATE AND WHEN TO CRY

8.7 KEY POINTS

9. DESIGNING AND BUILDING TECHNOLOGY

9.1 THIS IS WHERE THE SPENDING OF REAL MONEY BEGINS

9.2 SIMPLE DESIGNS ARE THE MOST ELEGANT

9.3 THE DESIGN TECHNOLOGY SHOULD BE AS GOOD AS THE TECHNOLOGY DESIGNED

9.4 THE MANUFACTURING SYSTEM SHOULD BE BUILT TO BE FLEXIBLE

9.5 KEY POINTS

10. DEMONSTRATING TECHNOLOGY

10.1 NOBODY WANTS TO BE THE FIRST TO USE A NEW TECHNOLOGY

10.2 EVERYBODY WANTS ALL THE DETAILS ON HOW OUR SYSTEM WORKS (FREE OF CHARGE)

10.3 A DEMONSTRATION DESERVES SOMETHING IN RETURN

10.4 WHEN A SHOWCASE DEMONSTRATION WORKS, INVITE EVERYBODY IN THE WORLD TO COME AND SEE IT (AND NOT BEFORE)

10.5 HOW MANY DEMONSTRATIONS ARE ENOUGH?

10.6 KEY POINTS

11. STANDARDIZING TECHNOLOGY

11.1 CUSTOM SUITS TAKE LONGER TO MAKE AND ARE MORE EXPENSIVE

11.2 STANDARD DESIGNS ARE CHEAPER AND EASIER TO OPERATE (AND FIX)

11.3 MODULARIZE WHERE POSSIBLE

11.4 COOPERATE WITH SUPPLIERS AND PARTNERS

11.5 KEY POINTS

12. PACKAGING TECHNOLOGY

12.1 OVERCOME THE STIGMA OF BEING FIRST

12.2 DETERMINE WHAT NEEDS TO BE DONE TO MAKE TECHNOLOGY APPEALING

12.3 THE ART OF BEING COOL

12.4 PROTECT OUR PROPRIETARY RIGHTS AGGRESSIVELY

12.5 KEY POINTS

13. APPLYING TECHNOLOGY

13.1 OFF-THE-RACK SUITS REQUIRE ALTERATIONS

13.2 ALTERATIONS AND OPTIONS ALWAYS COST MONEY

13.3 MAKE TECHNICAL SUPPORT EASY AND ACCESSIBLE

13.4 GOOD SERVICE GENERATES MORE BUSINESS

13.5 KEY POINTS

14. MARKETING AND SELLING TECHNOLOGY

14.1 THE DIFFERENCE BETWEEN MARKETING AND SELLING

14.2 SELLING VALUE, NOT COST

14.3 DON’ T WASTE TIME WITH PEOPLE WHO AREN’ T SERIOUS

14.4 THE IMPORTANCE OF MARKET SHARE

14.5 MARKETING TOOLS

14.6 MEASURING PERFORMANCE

14.7 TECHNOLOGY QUOTAS AND RETENTION REQUIREMENTS ARE A MUST!

14.8 KEY POINTS

15. TRACKING TECHNOLOGY

15.1 MAKE CERTAIN THE BUYER IS APPLYING THE TECHNOLOGY CORRECTLY

15.2 HOW ABOUT IT IF WE OPERATE YOUR SYSTEM FOR YOU?

15.3 PUBLICIZE SUCCESS

15.4 KNOW WHEN TO MOVE ON

15.5 KEY POINTS

16. MONITORING TECHNOLOGY

16.1 MAKE SURE WE ARE COLLECTING ALL REVENUE THAT IS DUE TO US, AND DEVISE A SYSTEM TO MAKE IT HAPPEN

16.2 ARRANGE FOR VISITORS TO HAVE FREE ACCESS TO CUSTOMER SITES

16.3 OBTAIN ACCESS TO OPERATING DATA

16.4 KEY POINTS

17. IMPROVING TECHNOLOGY

17.1 FIGURE OUT WAYS TO MAKE THE INNOVATION BETTER

17.2 STRING TECHNOLOGIES TOGETHER TO FORM INTEGRATED SYSTEMS

17.3 USING TECHNOLOGY TO INNOVATIVELY TRANSFORM THE BATTLEFIELD: RIPRNET1

17.4 CLOSE AIR SUPPORT A PHONE CALL AWAY

17.5 REMEMBER THAT THE MOST EFFICIENT SALE IS TO A REPEAT CUSTOMER

17.6 OFTEN IT IS MUCH EASIER TO INCREASE PROFIT MARGINS ON EXISTING TECHNOLOGY THAN TO START FROM SCRATCH

17.7 KEY POINTS

18. BUILDING ON SUCCESS AND LEARNING FROM FAILURE

18.1 “CHASE THEM TO THE RIVER ”

18.2 INVESTING IN IMPROVEMENTS

18.3 IDENTIFYING NEW OPPORTUNITIES

18.4 EVERYBODY MAKES MISTAKES, BUT THE BIGGEST ONE IS NOT LEARNING FROM THEM

18.5 KEY POINTS

Bibliography

Index

With regard to errors in general, either falling under the denomination of mental, typographical, or accidental, we are conscious of being able to point out a greater number than any critic whatever.

Encyclopaedia Britannica, 1771 edition

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Library of Congress Cataloging-in-Publication Data:

Touhill, C. J., 1938–

Commercialization of innovative technologies : bringing good ideas to the marketplace / C. Joseph Touhill, Gregory J. Touhill, Thomas A. O ‘ Riordan.

p. cm.

ISBN 978-0-470-23007-7 (cloth)

1. Technological innovations. I. Touhill, Gregory J. II. O ‘ Riordan, Thomas A. III. Title. T173.8.T68 2008 658.5'77—dc22

2007030013

To our wives and children

FOREWORD

I have known Joe Touhill since we were college classmates in the class of 1960 at Rensselaer Polytechnic Institute. The characteristics that impressed me most about Joe were his eagerness to take on a challenge, his common sense, and his ability to size up an issue and then lay out a logical plan for resolution. Most important, then and now, is his ability to follow through to a conclusion. Joe and coauthors, Greg Touhill and Tom O’Riordan, have produced a book that is focused on one of the most exciting and rewarding challenges of our time: commercialization of innovative technologies. Economists pretty much agree that innovation on a commercially attractive basis is one of the key economic drivers of our capitalist system. This means having an atmosphere that promotes innovation, with appropriate rewards and incentives flourishing freely. Our system is based on the premise that incentives really do work!

Entrepreneurship is a popular and growing topic in the business world today. There is a buzz about it. The topic is red hot and is a rapidly emerging course of study on most technology and business school campuses. You cannot pick up a business magazine without finding an article on innovation. Furthermore, it is one of the key metrics that analysts look at in rating an organization. How efficient organizations—research, business, government, military and educational—are in utilizing resources to develop innovation is a crucial question. The authors have educational backgrounds in engineering and the sciences with subsequent business training and experience. They have had genuine exposure and responsibility in the world of development on a results-oriented and profitable basis.

The book hammers on the concept of the innovation team and its importance to a consistent and repetitive commercialization process. It identifies the players, their characteristics, how to deal with their idiosyncrasies and what to expect as the commercialization process moves ahead. The book brings all the touchy topics into play: compensation and incentives as well as recognition, rewards, and celebration. The maestro (entrepreneur) inevitably is leading an orchestra of highly strung talented individuals. Embarking on a development process without a realistic understanding of these points is foolishness and costly.

The Wall Street Journal suggests that the overwhelming number of innovative ideas since the end of World War II have been commercialized by U.S. citizens. The book suggests that this is changing. Intuitively, we know that creativity is not the sole province of the USA. Because of improvements in global communications, we are seeing global teams put together for the development of ideas. Much of this team building is to take advantage of lower costs in different parts of the world. The innovation team of the future will be looking for the best ideas no matter where they come from. Global teams that we are beginning to see develop is a perfect lead into the topic that this book features uniquely—the innovation team—and understanding how important this concept is.

The book will not turn a poor idea into a profitable one. But it will ensure that attentive readers get a good commonsense strategy in place for identifying, funding, and developing truly good ideas. Of equal if not greater importance, the book will lead you to set up a screening system so that you can quickly identify ideas that do not fit into your strategy and goal profile. If you come away from reading the book with only one idea—the concept that early elimination of time-wasters is crucial to success on a consistent basis—reading it will have been worthwhile. Time really is precious, and things are moving at an ever-accelerating pace. The book takes you through all the steps in sufficient and understandable detail for ease of implementation. It will help you to avoid wasting time and bring discipline to the creative process. Although this may seem like a contradiction in terms, what is business really, if not the application of discipline? The tension between creativity and discipline is discussed candidly. Healthy solutions can only come about with awareness and knowledge. Good things do not happen by accident.

The book does not shy away from difficult questions such as “Can entrepreneurship be taught”? Addressing difficult questions is a hallmark of this book. Anyone who has been through the commercialization process will recognize immediately that the authors have been there. There is considerable benefit to be derived from their experience. The book is proactive about looking at things that did not go well. How else do we learn if not from our mistakes?

The book is recommended for both students and practitioners (investors, inventors, entrepreneurs, and managers). It will serve as a text for students and as a comprehensive resource for practitioners: those trying to bring innovative ideas to market on a commercially sound basis. The table of contents will serve nicely to direct you to those parts of the process in which you have the most interest.

ROBERT B. SHEH

Managing Partner

Alta Group, LLC

Redondo Beach, CA

ACKNOWLEDGMENTS

Many people and career experiences helped us in writing this book, and it would be a very long acknowledgment indeed if we attempted to identify them all. Thus, at the risk of missing those who truly were influential in guiding our effort, we will thank only a few for their direct intervention and contributions to this endeavor.

Dr. Herbert M. Clark, professor emeritus of physical and nuclear chemistry at Rensselaer Polytechnic Institute, encouraged us in writing this book, challenged us to make it thoughtful and insightful, dispensed considerable wisdom in the process, and as the author of several books, provided us with sound advice on the mechanics of publication.

Dr. Gary F. Bennett, professor emeritus of biochemical engineering at the University of Toledo, wisely guided us to appropriate people at the American Institute of Chemical Engineers (AIChE) who helped us to get the book published.

Dr. Richard D. Siegel, environmental consultant, also a friend and colleague from AIChE, gave us important insights that were valuable in getting ready for publication.

Dr. Kenneth L. Mulholland, president of Kenneth Mulholland & Associates, Inc., and author of Identification of Cleaner Production Improvement Opportunities, provided beneficial information related to his favorable experience in publishing his book through the AIChE-Wiley affiliation.

Stephen M. Touhill, vice president of Clearspring Technologies, Inc., was especially helpful in his review of Chapter 3, and in providing insights into the evolution of emerging high-technology startups.

The U.S. Central Command Air Forces (USCENTAF) team, which was awarded the 2006 U.S. Air Force Science and Engineering Achievement Award for the work cited in Chapter 17, is recognized for its outstanding efforts under very trying conditions. We would like to single out the following officers for their special contributions: Colonel Marty Edmonds, Squadron Leader Patrick Del Guidice, and Major Robert Sylvester.

Disclaimers

The views in this book expressed by coauthor Gregory J. Touhill are his alone and are neither endorsed by nor necessarily reflect those of the U.S. Department of Defense or the U.S. Air Force. Similarly, the views of coauthor Thomas A. O’Riordan are his alone and are neither endorsed by nor necessarily reflect those of the Raytheon Company.

1

ESTABLISHING PERSPECTIVE

During the last 100 years, we have created more wealth, reduced poverty more, and increased life expectancy more than in the previous 100,000 years. That happened because of entrepreneurs, thinkers, creators, and innovators. They are the heroes of our world.

Johan Norberg1

How many people do you know who when asked “What would you like to be doing five years from now?” answer by saying that they would like to have their own business. In our experience, the percentage is very high. Perhaps this is because the desire to be free, independent, and in control of one’s destiny is innate. However, realization of such a vision is not nearly as frequent as the desire. Key stumbling blocks are that people don’t have the knowledge, resources, energy, or discipline to convert their dream into reality. This book is intended to help provide thoughts on how to bring good ideas to the marketplace. It focuses on and emphasizes technology. Technological innovations can be simple or complex, hardware or software, manufactured products or technology-based services, even systems that combine existing technology in a unique and imaginative way, but the pathway to successful commercialization is similar for all good ideas.

In addition to the huge audience of budding entrepreneurs who dream of starting their own businesses (including many who are actively involved in doing so now), there are many others who will find this book useful. Virtually all leading universities now have centers of entrepreneurship and teach courses on the subject to eager management and engineering students.2 Today’s investors are seeking ways to enhance their investment returns because the return earned from current stock, bond, and mutual fund investments is lower than it has been historically, and it appears that investing in real estate has taken on considerable risk. Hence, venture capitalists and consortia of investors continue to look at the potential that innovative technology can have in realizing their target aspirations for significant returns on invested capital.