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Management of Technological Innovation

What is its advantage over existing technology

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Unformatted text preview: Laboratory Thomas edison invented R&D lab Industrial R&D is about 2/3 of market research now Project Selection Criteria: Sales potential Growth potential Payback period and profitability Competitor reaction Legal and ethical Cost Timing Capital available Skills available Physical resources available Management support and champion Community acceptance What and how big is the market? Who will use it and for what? What is its advantage over existing technology (customer value- added)? How much will be the selling price? The profit margin? Remember: any innovation faces and uphill battle – Rule o thumb: to displace an entrenched technology, a new technology needs a 10- times better cost/benefit margin New products: phase development in order to minimize risk Research costs are 1/10 of development costs So demonstrate technical feasibility at low cost. Recognize dead horses early Demonstrate commercial feasibility if milestones are met Gradually scale up to full commercial operation Technology Managemen...
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