An introduction to New Product Development (NPD)

An introduction to New Product Development (NPD)New products Development: Open Innovation and Technology TransferModule Code and Module TitleTitle of Slides1Asia Pacific University of Technology and Innovation#New Product Development- Open Innovation and Technology TransferLearning ObjectivesRecognize the importance of the concept of technology/knowledge transfer with respect to innovation managementProvide a summary of the process of technology/knowledge transferExamine the various models of technology transferAssess the importance of itnernal organization factors and how they affect inward technology transferExplain why a receptive environment is necessary for technology transferIdentify the different barriers to technology transferRecognize how tacit knowledge links technology transfer and innovation

Module Code and Module TitleTitle of SlidesBackgroundOverviewParadigm shift from labor and capital intensive industries to knowledge and technologyInternal development too uncertain, too expensive and too slow for the rapid technological changes in the marketCorporations trade in technology in world markets just as they do in other goods and services (DFI International, 1998:93)Module Code and Module TitleTitle of SlidesThe Economic Perspective of Technology TransferExisting R&D projects and developed technology which has already been paid for

Industry and privateenterpriseCan be transferred toModule Code and Module TitleTitle of SlidesOpen InnovationTrend of shifting away from closed systems to new mode of open systems involving a range of players distributed up and down the supply chainStrong linkage within the innovation process between the external environment of the firm and internal environmentModule Code and Module TitleTitle of SlidesTechnology TransferTechnology transfer is the application of technology to a new use or user. It is the process by which technology developed from one purpose is employed either in a different application or by a new user. The activity principally involves the increased utilization of the existing science/technology base in new areas of application as opposed to its expansion by means of research and development(Langrish et al., 1982)Module Code and Module TitleTitle of SlidesInformation Transfer and Knowledge TransferInformation is central to the operation of firmsStimulus for knowledge, know-how, skills and expertiseThe application of these knowledge then leads to actions and skillsModule Code and Module TitleTitle of SlidesModels of Technology TransferLicensing Involves the technology owner receiving a license fee in return for access to the technologyScience Park Model academic scientists will have the opportunity to take laboratory ideas and develop them into real product e.g. Silicon valleyIntermediary Agency Model act as the intermediary between companies seeking and companies offering technologyDirectory Model The produced directories of technology available from the universitys own research laboratories e.g. www.patentexplorer.com

Module Code and Module TitleTitle of SlidesModels of Technology TransferKnowledge Transfer Partnership Model teaching company scheme studies part time for 2 days a week and 3 days working on the projectFerret Model qualified scientists and engineers who would ferret around for interesting defense technology that could have wider commercial opportunitiesHiring Skilled Employees Hiring people with the necessary skills and knowledgeResearch Clubs Funded program which tries to bring companies together with common interest in particular research areaConsultancy Consultants are able to offer help, advise and useful contacts to get the research project to a flying start

Module Code and Module TitleTitle of SlidesLimitations and Barriers to Technology TransferThe difficulty of applying other peoples technology and the need for this technology to be in such a form that organization can reap some benefitsNIH SyndromeNot invented here syndromeTendency for project group of stable position to believe that it possesses the monopoly of knowledge in its field

Module Code and Module TitleTitle of SlidesInternal Organizational Factors and Inward Technology TransferTypes of companiesInnovators: The first company to adopt a new ideaInitiators: The firms that adopted the idea soon after the innovatorsFabians: The firms who adopted the idea only after its utility was widely acknowledged in the industryDrones: The last firms to adopt new ideasModule Code and Module TitleTitle of SlidesInternal Organizational Factors and Inward Technology TransferFactors leading to technology transferHigh quality of incoming communicationsA readiness to look outside the firmA willingness to share knowledgeA willingness to take on new knowledge, to license and to enter joint venturesEffective internal communication and coordination mechanismModule Code and Module TitleTitle of SlidesInternal Organizational Factors and Inward Technology TransferFactors leading to technology transferAn awareness of costs and profits in R&D departmentsIdentification of the outcomes of investment decisionsGood quality intermediate managementHigh status of science and technology on the board of directorsHigh quality chief executivesHigh rate of expansionModule Code and Module TitleTitle of SlidesConceptual Framework of Technology TransferActivityProcessAwarenessDescribes the processes by which an organization scans for an discovers what information on technology is availableAssociationDescribes the processes by which an organization recognizes the value of technology(ideas) for the organizationAssimilationDescribes the processes by which the organization communicates these ideas within the organization and creates genuine business opportunitiesApplicationDescribes the processes by which the organization applies this technology for competitive advantageModule Code and Module TitleTitle of SlidesIdentifying External TechnologyThe Importance of Scanning and NetworkingScanning and networking as an informal and unassigned activityKey characteristic of technically progressive firms is high quality of their incoming informationFor the purpose of maintaining order and knowledge baseEach organization research activity represents a fraction of the worlds total scientific and technological activityImportant to ensure they are aware of technology around

Module Code and Module TitleTitle of SlidesManaging the Inward Transfer of TechnologyThe final stage of application of the business opportunity for competitive advantageOrganization brings about commercial benefits from the launch of a new product, improved product or manufacturing process

Module Code and Module TitleTitle of SlidesOrganization Context- Open innovation and technology transferLevel of LearningIndividualGroupOrganizationContinual flow of tacit and explicit knowledgeAcquisition of technology from outsideModule Code and Module TitleTitle of SlidesTutorialExplain the importance of tacit knowledge to the technology transfer processExplain how a firms internal activities affect its ability to acquire external technologyModule Code and Module TitleTitle of SlidesEffectiveness in the transferConvert into long term organization competitive valueReduce dependency on foreign/exclusive technologyEnhance long term R&D progress. E.g. Japan transfer of technology from USA to Japan

Staff readiness to adopt external technology e.g. TrainingCross functional integration and coordinationIntegrating technology into current operationsFinance readiness to acquire new technology

18Asia Pacific University of Technology and Innovation#Effectiveness in the transfer process. E.g. Staff ExpertiseConvert into long term organization competitive value. E.g. Allow the organization to compete on the same cost or technology platformReduce dependency on foreign/exclusive technology. Through the tacit knowledge acquired, these tacit knowledge can position the organization as a more competitive organization. Enhance long term R&D progress. Using the technology acquire, business will be able to leverage on the know how to further innovate the business.

Module Code and Module TitleTitle of SlidesStaff readiness to adopt external technology e.g. Effective New Technology TrainingBusiness cross functional integration and coordination. E.g. Reallocate human resource and adapt to dynamic business environment.Significant changes in overall business processes to accommodate new technology acquisition.Integrating technology into current operationsFinance readiness to acquire new technology. E.g. Sufficient cash flow and sustainability of long term business.A form of motivation to retain and enhance value of employees. e.g. Google and Digi empower their staff to be innovative at work place with time allocation for creativityModule Code and Module TitleTitle of Slides20Asia Pacific University of Technology and Innovation#