Developing Channels for Commercialization
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Developing Channels for Commercialization Dr. Robert Crawhall President The National Capital Institute of Telecommunications. A world-class broadband engineering institute. Outline. Technology Commercialization the Linear Model Channel view vs. tunnel vision Channels to product

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Developing Channels for Commercialization

Dr. Robert Crawhall

President

The National Capital Institute of Telecommunications

A world-class broadband engineering institute


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Outline

  • Technology Commercialization

    • the Linear Model

  • Channel view vs. tunnel vision

    • Channels to product

    • Channels to market

  • Role of technology in channel development

  • The Canadian productivity experience

  • New markets – New channels

  • Recommendations


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Technology Commercialization

The Linear Model


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Technology Commercialization

  • Inventor & infrastructure

  • Invention/innovation/discovery

  • Proof of concept

  • Intellectual property

  • Investment

  • Design ready technology

  • Product development

  • Marketing

  • Sales

  • End user


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Just because it’s excellent doesn’t mean…

“…research that is excellent from a scientific or technical standpoint is often not commercially valuable. To have commercial value, a technology must not only be unique and excellent, it must also have an identifiable commercial application and be financially practical to develop. Many excellent scientific/technical solutions remain un-commercialized - in both Russia and the West - because they do not fit these criteria.” - Gore-Chernomyrdin Science and Technology (S&T) Committee, 1996.


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Bigger Issues

  • Jobs & wealth for Canadians

  • Growth and creation of small, medium, large enterprise

  • Global competition

  • Off-shoring, outsourcing

  • Canada’s strategic advantage?


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OCRI Task Force on Commercialization

  • How to develop leading companies driven by R&D

  • Great Capacity for world class technology

    • Private Labs

    • Universities & Colleges

    • Federal Laboratories

  • Need Capital

    • 5% of companies are VC eligible

  • Need Sales & Marketing

  • Need to diversify from Telecom

Needs Channels!


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Needed

Focus

of

Support

Present

Focus

of

Government

Support

Commercialization Focus

Idea “Commercialization”

from Idea to Technology to Prototype...

Market Channel

Satisfied Customer

Viable Business

Product

Idea

Technology

Product Commercialization

from Product to Channel to Customer to repeat Business...

Courtesy OrbitIQ


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Changing ICT market dynamics…

  • From

  • Technology Driven

  • Telecom Market

  • Core Networks

  • Long Cycles

  • Large Corporate Spinouts

  • To

  • Market Driven

  • Vertical Markets

  • Enterprise Systems

  • Short Cycles

  • Technology Commercialization

…requires change in strategy


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Channel View

vs. Tunnel Vision


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Welcome toMarketing & Sales

  • You’re going to love it

  • Image issues

  • R&D policy issues

  • Internal politics

  • “What have you

    done for me lately”


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Commercialization – The world of risk

Research

Market

Academic

Market

Risk

Innovation

Risk

Technology

Risk

Industry

Development

Product

Product

Risk

Courtesy OrbitIQ


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Three little words…

Market

Product

Technology

…so much confusion


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What is a Channel?

  • The route through which your customer expects to receive your product

  • The path your innovation must follow to achieve the necessary value for your customer

  • The way across the chasm…


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Market expectations…

Market

Preview

Product A

Product B

Product C

Technology

Window

Technology

Window

Technology

Window

…setting them; meeting them!


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Multiplicity of Channels

Markets

Communications

Manufacturing

Automotive

Natural Resources

Agriculture

Security

Municipal Asset Management

Healthcare

Retail Sales and Inventory

….

Technologies

Protocols

Semiconductors

Resource Mgt s/w

Batteries

Circuits

Interfaces

Enclosures

Software Radio

Antennas

…..

Products

Voice Comms

Internet Access

WLANs, WMANs

RFID readers

Sensor networks

Mobile comms

Telematics

Equipment

Subsystems

Management software

Point of sale

Personal networks

…..


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Technology

  • 1) Value to product designer

    • Moore’s Law

    • New Features vs. Lower Cost

    • Demonstration Platforms

    • Closer to product ready

    • Long lead time

  • 2) Value to Marketing

    • The vision thing

    • The cool factor

    • Trial balloons

  • 3) Value to Financing

    • Raise the share value


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The Product

  • A product is something someone wants to buy, not necessarily something you want to sell

  • If you can’t identify a market…you don’t have a product…you may have a technology.

  • Regardless of whether you can find it…if a market exists…there is a channel.


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Product Attributes

  • Form & Function

  • Price, Value & Margin

  • Brand & Image

  • Distribution

  • Support


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Value increases in the tech transfer channel

Market value established

Product

volume

Channel Partners

manufacturing

inventory

design tools

test

risk

cost

feature

sourcing

reliability

Technology

Design ready technology

Large Industry

Research

SME


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The Canadian Productivity Experience

Investing in Information Technology Innovation


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IT and Productivity

  • Since 1995 productivity has increased

Canada

= Productivity

US

’95–’00

’95–’00

Stats Can Courtesy John Baldwin


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IT Sector Productivity Increase

Canada US

Stats Can Courtesy John Baldwin


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Productivity Summary

  • IT Sector relatively small (4% Cda, 6%US)

  • High growth (over 20% ’95-’00)

  • MACRO: IT investment a significant factor in national productivity increase ’95-’00

  • MICRO: Companies that invested in IT made biggest gains in productivity growth

  • Canada vs. US: Productivity growth

    = IT Users vs. IT Producers


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Practical Examplesof Channel Development


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Role of 4th Pillar Organizations in channel development

  • Build new business partnerships

  • Provide access to premium marketing events

  • Reduce R&D overhead

  • Access complementary technology depth

  • Highly Qualified Personnel

  • R&D Funds

  • Reference customer

In year payback for R&D


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IP Telephony

IP Video

Live Demonstrations - NCIT*net

University of Ottawa

MPEG 2 Video Conference

Service and

QoS control

MAC1

control

Video

MPEG 2 Video Conference

MAC2

VLANs

Traffic Generator

NCIT

MAC3



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Government Agencies

  • CRC

  • NRC

  • NRCAN

  • Agriculture Canada

  • Industry Canada

  • NAVCAN

  • CANARIE

  • PRECARN

  • Health Infoway

  • METD

  • CoE

  • Environment

  • Infrastructure Renewal


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Major Venues for Channel Development

  • e.g. for IT technologies

    • CeBIT

    • ITU

    • Techs-In-Paradise

  • DFAIT support

  • Industrial participation

  • Meeting Canadians overseas


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Example: Building a commercialization ecosystem

Network Capacity

End-User Needs

Productivity Solutions

based on Communications

Technologies

CAPEX, OPEX

High Margin

Services

  • Optical Switching

  • 4G & Interoperability

  • Service Management

  • Security

  • Latency

  • Sensors

  • Wireless LAN

  • Collaborative Environments

  • VoIP, Video Conferencing

Wireless

Networking

Photonics

Applications


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Intelligent Sensor Systems

Distributed

Storage

Visualization

Cell-based Sensor

Network

Wired Sensor

Network

Data

Management

Analysis

Control

Actuator Network

(e.g. telerobotic)

Telecommunications

Network

Ad Hoc Sensor

Network


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Channel to Where?

  • If wireless is the technology …what is the market?

    • Communications

    • Manufacturing

    • Automotive

    • Natural Resources

    • Agriculture

    • Security

    • Municipal Asset Management

    • Healthcare

    • Retail Sales and Inventory


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Mining

  • Ventilation, movement, maintenance

  • Particulates, temperature, gases, flowrate, exhaust

  • Today

    • > One week turn around on data

    • $200/sensor pack

    • Fix it when it breaks

  • Objective

    • Real-time monitoring & control

    • $2/sensor pack

    • Preventive Maintenance

  • Safety, Safety, Safety and did I mention Safety


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Precision Agriculture

  • Yield improvement

  • Remote & in situ sensing

  • Rural & Remote Broadband

  • Global Competitiveness

  • GPS, Wi-Fi, Cellular

  • Vineyards vs. Wheat

  • Micro-climate manipulation

  • Traceability

  • Pollution monitoring


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Municipal Infrastructure

  • 15,000 of Canada’s 80,000 bridges are in Ontario

  • 80% owned by municipalities

  • Many nearing end of design life

  • Corrosion, excessive loading

  • Disruption of economic activity


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Water Infrastructure

  • Most pipes 50 years old.

  • Losing up to 50% of water

  • Massive rebuild in next 10 years

  • Full cost recovery

  • Asset management

  • Cost to maintain Ontario water system $1B/annum

  • Over 600 water systems in 446 municipalities


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Energy Sector

  • Metering

  • Load Balancing

  • Network Monitoring

  • Physical Security


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Summary

  • Channel development is vital to successful technology commercialization

  • 4th Pillar organizations are useful tools in channel development

  • New markets require new channels

  • Channel development should be part of your R&D strategy.