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Page 1: The Process of Technological Innovation Successful commercialization & continuous improvement

The Process of Technological Innovation

Successful commercialization & continuous improvement

Page 2: The Process of Technological Innovation Successful commercialization & continuous improvement

Eight stages of technological innovation

1. Basic research (for general nature laws)

2. Applied research (for specific problems)

3. Development (design for prototyping)

4. Engineering (design for assembly)

5. Manufacturing (design for efficiency & quality)

6. Marketing (design for acceptance & affordability)

7. Promotion (design for diffusion)

8. Improvement & enhancement (design for sustainability)

Page 3: The Process of Technological Innovation Successful commercialization & continuous improvement

Corporate innovation process

Concept formation Product concept definition

Technical analysis Market research & analysis

Industry analysis—SWOT & business strategy

Commitment & support from strategic apex Development Market testing Manufacturing & marketing Promotion & selling

Page 4: The Process of Technological Innovation Successful commercialization & continuous improvement

Chain-reaction of successful innovation

Scientific invention ←→ Engineering development ←→ Entrepreneurship ←→ Management/strategy ←→ Social demand ←→ Fit environment

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Innovation trajectories

Border crossings Inter-disciplines, -parties, -nations, -sectors

Emergence of complex technologies Fit to and cause from diverse demands,

perspectives, approaches, contexts Age of knowledge and distributed intelligence,

KDI Network of knowledge—Building and extending the

invisible college Learning and intelligent system—exploring the

human behavior Computing challenge—exploit the numeric barrier

Page 6: The Process of Technological Innovation Successful commercialization & continuous improvement

Innovation SystemConcurrent Integration (Bordogna, 1999)

InnovationWealth Creation

Sustainable Development

AnalysisReduction

Discovery of New Knowledge & Basic Laws

Societal Needs The Public Good Natural Capital

Devices ProcessesSystems

IdeasInformation

Capital Formation & Investment

SynthesisIntegration

DesignManufactureMaintenance

Science

Policy Context

Engineering

Economic Context

Technology

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Creative transformation Searching for innovation requirement &

change demand Monitoring technological change &

organizational change Transformation for sustaining performance

On internal structure of R&D, manufacturing On external market of customer, interested

parties Successful process of innovation fulfillment

Project management & management renew

Page 8: The Process of Technological Innovation Successful commercialization & continuous improvement

The Process of Creative Destruction

Business leaders usually visualize a market economy in the context of how capitalism administers existing structures, whereas the wiser approach is to understand how it creates and destroys them.

Paraphrased from J. SchumpeterCapitalism, Socialism, and DemocracyChapter VII, page 84

Page 9: The Process of Technological Innovation Successful commercialization & continuous improvement

Creative TransformationsThe Schumpeterian Factor

The interaction of technological innovation with the competitive marketplace is the fundamental driving force in capitalist industrial progress. (Schumpeter, 1942)

The normally healthy economy was not one in equilibrium, but one that was constantly being disrupted by technological innovation (The Economist, Schumpeter, 1999)

Page 10: The Process of Technological Innovation Successful commercialization & continuous improvement

History of Xerography Market dissatisfaction for document reproduction even so ch

eap and easy Scientific information

Electrostatics, photoconductivity & photoreceptor, sensitization of Se element

Entrepreneur Carlson, Battelle, Wilson of Haloid

Novelty—industry creation & user education Branding for new product—Xeros & graphein Xerogr

aphy and registered trademark “Xerox”

Page 11: The Process of Technological Innovation Successful commercialization & continuous improvement

History of Xerography (ii) 1949, the pioneering copy machine, Xerox A

User unfriendly, manually performed by the high-skilled operators

Unstable performance Enhancement & Market switching

Target the lead user—lithographic plate printing Lease rather than sale—reduce the novelty risk of dura

ble goods 1955, automatic version, CopyFlo 1958, Xerox 914 for office users

the two-part tariff leasing mechanism a successful incentive for copying usage

Nationwide retailing & service network

Page 12: The Process of Technological Innovation Successful commercialization & continuous improvement

History of Xerography (iii)

Scientific improvement New material for cheap and sensitive

photoreceptor: carbonic/organic polymer

Evolution with laser & IC technology

Integrated into computer industry Laser printer

Page 13: The Process of Technological Innovation Successful commercialization & continuous improvement

Lessons from Xerography Innovation success was determined by markets

eventually Breakthrough the diffusion constraints including

designing, technological, economic, political, societal, and even religious factors

Visionary enabler—entrepreneur & entrepreneurship

Systemic improvement process—monitor the gap and retest for objective

Inter-disciplines—evolution with the sources of innovation

Luck blessed the risk lover and opportunity seizer

Page 14: The Process of Technological Innovation Successful commercialization & continuous improvement

A technological innovation model

The case of biomedical devices Concept formation—market pull or technological push Feasibility analysis—technological, economic,

operational Product design and prototype development & testing Engineering & Manufacturing design—user interface,

P/P ratio, extensible/upgrade capability Meet the FDA requisites—the min. quality standard Production & quality control Marketing promotion—pricing strategy, technology

cycle, market structure, channel selection Customer satisfaction, post/disposal service

Page 15: The Process of Technological Innovation Successful commercialization & continuous improvement

Entrepreneur & Entrepreneurship

A technologist or marketer possessed with Vision, courage, initiative, concentration, unbending

ness, autonomy, ambition Appreciation, motivate himself and others, leadershi

p The good sense of market rather than much more inv

ention Entrepreneur enterprise Intre-preneurship incorporation

Page 16: The Process of Technological Innovation Successful commercialization & continuous improvement

The management renew cycle

Entrepreneurship style of management for the start-ups or in the emerging stage of industry Organic system for flexibility, effectiveness, and

growth Professional management for

institutionalization or after the mature stage of industry Bureaucratic system for cost-benefit consideration &

efficiency criteria Renewing demand after structural rigidity and

industry decline

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Venture team Intrepreneurship

Imagine the future product concept The gatekeeper of technology & market Plan enabler Project manager

A stand alone research center Xerox’s Palo Alto Research Center (PARC) Keep flexible and innovative

Page 18: The Process of Technological Innovation Successful commercialization & continuous improvement

Lessons from Xerox’s PARC

Vision To be the future information architect and a documentation

corporation Acquire SDS data processing Integrate xerography into computer office automation PC and

WYSIWYG interface, the Alto series Failure

Asynchronous development between PARC and Xerox’s bureaucratic structure

Location dispersion & communication gap: New York state (E) vs. California state (w)

Too few product lines to fill market demand Competition from Japanese firm’s high quality copy machines—Canon,

Sharp, Minolta, etc. and the friendly innovation of add-on carbon cartridge Too concentrated on short-term financial performance to seize the

industry dynamics and growth opportunities

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Recovery of Xerox’s PARC Research on working process as well as new

product Innovating anywhere and learning through Innovation transfer to the counterparts in the

organization beyond endeavoring to research Promote linkage between technology and market

The always partner of research—customers To be a responsible profit center

Share and broker information for entrepreneurship & new start-ups

Motivation incentive by being the Xerox shareholder

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The macro view of technological innovation

Appropriate context for innovation survival Complements, reformers & rebels

Creative society Enjoy freedom without constraints Personal interest/survival rather than public new

order Formal & informal club for information sharing

Industrial cluster Specialization & cooperative linkage for production,

marketing, and international free trading Knowledge exploring & training

Education & university

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Lessons from Silicon Valley

Vision of technology & life Knowledge center/window Facilitating context/infrastructure Venture capital Free mobility of job Weak-tie information network Continuous learning

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Lessons from British Midlands

Freedom facilitates entrepreneurship Lunar society in the Birmingham of

England vs. the Home brew computer club in the Silicon Valle Diversity ignites the spark of innovation Club dialogue promotes the role playing

at the other’s position Championship drives competition,

cooperation, and benchmarking

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Factors influencing technological innovation

Scientific capability & repository Technology life cycle Investment scale & level Political facilitator Complementary technologies Diffusion mode & rate

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Factors impeded/facilitated technological innovation

World politic/economic dynamics Communication channel/speed Multiple research centers—competition or

cooperation relay Launch timing Education/diffusion system Visible/invisible committee

Industry policy Mobility barriers Public/private organizational transformation

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The innovative Skill Set of 2010 (Bordogna, 1999)

Handle projects from initial conception of an idea through to product realization

Understand, nurture, and capitalize sustainably on nature Be alpha-numeric literate Articulate team goals, influence others to invest in them, evi

nce trust at all levels Envision rational solution scenarios to open-ended challeng

es Act as catalyst and master integrator in multifaceted, multi

disciplinary projects Understand and practice quality issues Manifest a strategic intent in design

Page 26: The Process of Technological Innovation Successful commercialization & continuous improvement

The innovative Skill Set of 2010 (Bordogna, 1999)

Enable comfort in interpersonal relations Pursue standards-based practice Practice creative transformation Focus on innovation Sense the coupling among seemingly disparate issues Make sense of complexity Contribute to, extract from, participate in the world of

collective intelligence base Be an astute observer of strategic inflection points and

anticipate their consequences at the moment of inflection

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Extended readings Rogers, Everett M., and Judith, K. Larsen (1984),

Silicon Valley Fever: The Growth of High-Technology Culture, Basic Books.

Howard, R. (1992), “The CEO as organizational Architect: An Interview with Xerox CEO Paul Allaire,” Harvard Business Review, Sept.-Oct., pp.107-119.

Saxenian, Annalee, (1996), Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Harvard University Press.


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