PowerPoint Presentation

How mechanical engineers can make a technological splash

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The Business Side of Evaluating (Mechanical) Technology InnovationAndrew.maxwell@lassonde.yorku.ca

Aspects of Technology Assessment

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Assessing viability of new engineering technology4Five important questions:What does the technology do?Who would value each of these functions?Who would be most motivated to adopt this technology? What are the costs and benefits of adoption?What other factors would affect the adoption decision?

What does the technology do?5How does the technology work?What are the functions that you can perform with the technology?On what dimensions would you measure performance?Safety ReliabilityConvenience Capital costOperating cost ComplianceQuality Environmental lifecycle

Who would value each of these functions?6Is solution a pain killer or a vitamin?Which potential users would value each of these functions: Safety ReliabilityConvenience Capital costOperating cost ComplianceQuality Environmental lifecycle

Who would be most motivated to adopt this technology?7A compelling value proposition is one that motivates adoption, where the costs and risks of adoption are significantly less than the benefits.The value proposition is linked to the motivation to adopt, which is linked to the difference between the benefits and the costs : How would you quantify the benefits?How can you demonstrate the benefits?How does the competitive environment influence willingness to adopt?

What are the costs of adoption?8How do you assess the costs:Capital and operating costsCash flowNet present value or internal rate of returnPaybackHow do you compare the costs and the benefits?

Maxwells three laws of innovation inertia There is a natural tendency for organizations to keep doing what theyre doing and resist changes. In the absence of a force, they will continue to do what theyve always done.Larger organizations require more force to change what they are doing than smaller organizations. For every force there is a reaction force that is equal in size, but opposite in direction. When someone exerts a force on an organization, he or she gets pushed back in the opposite direction equally hard.

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What other factors would affect the adoption decision?10What are the technology risks?What are the implementation risks?What are the business risks?

What are the technology risks?11Reliability?External validation?What is the state of technology readiness?What is the minimum viable product?

What are the implementation risks?12What will you have to change to implement the solution?Who makes the decision?Who will it affect (and how)?Can you embed technological solutions to reduce impediments to implementation?What are the operational constraints for the user (Time, space, cost.)?

What are the business risks?13What is the reputation of the supplier?How will you get support?What are the service issues?What is your current or anticipated relationship with the potential supplier or potential customer?

NASAs Technology Readiness Level

14You probably are more familiar with this representation of TRLs. This is a NASA slide.

Parting thoughts15The development of a new technology that is adopted by users is more complex than it appearsBetter understanding the various issues will increase the likelihood that innovative technologies you develop are adopted in the market, and commercially successful