Innovation and Commercialization Chapter 1 Defining Innovation n

Innovation and Commercialization Chapter 1

Defining Innovation n Technology push v. market-pull n Evolutionary v. revolutionary n Sustaining v. disruptive

Technology push v. Market-pull n Push: to advance the state of technology n Pull: designing products to meet a market need.

Evolutionary v. Revolutionary n Evolutionary: derives from previous innovation n Revolutionary: no preceding technology

Sustaining v. Disruptive n Sustaining: improve on existing technologies, most often in performance n Disruptive: paradigm shifters – radically change the way we do things

Why Companies Have Failed with Disruptive Technologies (from the research of Clayton Christiansen, Harvard) n They listened to their customers n Focused on quality n Studied market trends n Spent money on innovation

Good management was the most powerful reason they failed to stay on top Clayton Christiansen, Harvard, 1997

The Factors that Lead to Failure n The issue of sustaining v. disruptive technologies n Technology outpaces market demand n Investing in disruptive tech is not a rational decision

Fighting Back n Resource dependence n Create independent research arm n Small markets for disruptive tech n Give commercialization responsibility to a small firm in the market n Can’t analyze markets that don’t exist n Learn what needs to be known n Technology Supply may not equal market demand n Technology S-Curves

Technology Commercialization Invention & Innovation Opportunity Recognition Connection Discovery Invention Application Idea + Customer Need = Business Concept Protecting Intellectual Property Assets Patents Trademarks Copyrights Trade Secrets Critical Decision Point Patent? Developing The Business Plan Launching the Business Second Critical Decision Point Build, License, or Sell? Business Development Feasibility Analysis Product Development Prototyping Technology Feasibility Alpha Testing

What Will You Take-Away? n Put students’ comments here