Bringing Technology to the Market Successfully
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1 Dr Kais As-Sultany EVP, Technology & Innovation, Tasnee
2 Technology ("science of craft", from Greek τέχνη, techne, "art, skill, cunning of hand"; and -λογία, -logia) is the collection of techniques, skills, methods and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation. Technology can be most broadly defined as the entities, both material and immaterial, created by the application of mental and physical effort in order to achieve some value. In this usage, technology refers to tools and machines that may be used to solve real-world problems. Technology is a body of knowledge devoted to creating tools, processing actions and extracting of materials. The term Technology is wide and everyone has their own way of understanding the meaning of technology. We use technology to accomplish various tasks in our daily lives, in brief; we can describe technology as products, processes or organizations. We use technology to extend our abilities, and that makes people as the most important part of any technological system. Technology is also an application of science to solve a problem. But what you have to know is that technology and science are different subjects which work hand-in-hand to accomplish a specific task or solve a particular problem. Technology is a setup; starts with thinking and concluded by a product 2
3 Market is defined as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities. The value, cost and price of items traded are as per forces of supply and demand in a market. Market is an actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter. Market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. This type of market may either be a physical marketplace where people come together to exchange goods and services in person, as in a bazaar or shopping center, or a virtual market wherein buyers and sellers do not interact, as in an online market. Market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for money from buyers. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Market is a space of activities for the exchange of a product and its transaction 3
4 Is technology objective or subjective? Novelty: can it be unique? Possibility: can it be composed? Affordability: can it be afforded? Forcibility: can it be forced on the market? Nobility: can it be morally correct? The technology is subjective before development but it becomes objective after launching 4
5 The market is pragmatic with no tolerance The market does not lie The market has no mercy towards differentiation Thing cannot be sold unless the Anti-Thing Anti-Thing is defined as need or demand exist will result shall be created To sell food, a starvation vaccination, a disease thing, an anti-thing either exist, will result or shall be created 5
6 C2C Approach Our process takes too much time and keeps us from our day job We never kill a project because we do not have the right mechanism Our cross-functional silos prevent effective teamwork We fail to learn from our process missteps 6
7 Process Governance Strategic Roadmapping Idea Development Portfolio/Resource Plans Gated Process Execution 7
8 Stage-Gated Process Idea Sieving Development project progress monitoring mechanism where the project is broken down into specific controlled stages, and each stage is guarded by a decision gate (DG) that the project cannot pass unless it satisfies certain criteria Time Develop & Launch DG 0 DG 1 DG 2 DG 3 DG 4 DG 5 Idea Stage 1 Market Attractiveness Stage 2 Initiation (Scouting) Stage 3 Development (Pilot/Prototype) Stage 4 Industrialization (Industrial Scale-up) Stage 5 Commercialization (Market Launching) Ensure cross-functional teams fully adopt best-practice innovation processes Dramatically reduce the effort required to create deliverables Enable the innovation processes to evolve and respond to new business and market demands Achieve high success rate by killing bad projects with confidence in the early stages of the development process Drive continuous improvement of the innovation processes 8
9 Stage 0 Idea Discovery Compile the Idea Pack 1.Strategy fitness analysis 2.Potential application 3.Resources availability Gate 0 Does the idea merit any work? Idea Sieving Phase Stage 1 Preliminary Investigation Compile Preliminary Pack 1.Market assessment 2.Technical assessment 3. Business risk analysis YES Gate 1 Does the idea justify detailed investigation? Discard the Idea Stage 2 Detailed Investigation Compile Business Pack 1. Competitive analysis 2.Operational assessment 3.Production definition YES Gate 2 Is the business case sound? YES Stage 3 Active Development 9
10 Develop & Launch Phase Stage 3 Active Development Stage 4 Validation and Scaling-up Compile Development Pack 1.Prototype part/pilot process 2.IP protection 3.Market launching plan Compile Validation Pack 1.Validation/qualification results 2.Facilities construction 3.Commercial production trials Gate 3 Development successful? YES Gate 4 ready for launching? YES - iterate YES - iterate Shall the project continue? Shall the project continue? Kill or Divest the Project Stage 5 Market Launching Compile Pilot Launching Pack 1.Commercial operations 2.Market launching 3. Revenue generation YES Gate 5 Launching Successful? YES - iterate YES - successful Shall the project continue? Commercialize & Close the Project 10
11 ALL FUNCTIONS CONTRIBUTE Cross- functional Necessity MARKETING R&D/ENGINEERING INVATION SUCCESS REQUIRES EXECUTION ACROSS ALL FUNCTIONS High performing organizations execute on these areas 2x to 3x more often than low performers. MFG/SUPPLY CHAIN ALL FUNCTIONS CONTRIBUTE Product Development Institute 11
12 Portfolio Bad Bets Across industries, 40% of resources spent are wasted on unsuccessful products Across industries, only 50% of new products are profitable Barriers to Sustainable Market Differentiation Lack of Alignment Only 27% of companies connect areas of strategic focus to resource allocation 80% of executives say they have a gap in alignment between strategy and product development activity Too Few Good Ideas 79% of top managers say their company doesn t have enough high-value projects in their portfolio Across industries, low-performing companies introduce 2x as many incremental products as high performers Innovation Execution 41% of products miss product launch deadlines Most companies have gated innovation processes, but only 54% have processes that are really used 12
13 GCC Petrochemical Industry and Technology Wrong Mindset Mindset Towards Technology Development Belief in technological advances Trusting the local capabilities Executives and decision makers technical knowledge Fear of failure Cultural and social impact Malfunctioned facilities Technology Development Facilities Infrastructure of technology development Utilization of R&D facilities and resources (open innovation) Strategy establishment about technology development Establishment of robust IP system Focused researches with strong links to industry 13
14 GCC Petrochemical Industry and Technology 14
15 Thank you Dr Kais As-Sultany
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