This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Technology Commoditization) is a 25-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Companies, especially technology related ones, used to spend a significant amount of time, effort, and capital to innovate and develop a Competitive Advantage on the basis of their design and engineering.
Development of high-tech production and design tools that integrate design and engineering knowledge has simplified the Innovation and Production processes. Consequently, it is now much easier for new entrants to leverage readily and cheaply available technical knowledge and tools to accelerate the development of their own technology-intensive products. We can call this phenomenon the Technology Commoditization.
This transition has produced new worldwide competitors and allows for new alternatives for customers. At the same time, it has also brought forth dire and possibly existential problems for established market leaders.
Market leaders now have to contemplate strategies to counter this existential challenge. For this, there are 4 general strategies they can rely on:
1. Instead of focusing on the commoditized portions of the Value Chain, emphasis should be on complex systems design and defendable areas.
2. Differentiation should be based on pushing the design envelope and scaling rapidly in areas where embedded knowledge in tools is high.
3. Noticeable Intellectual Property should be the point of differentiation and should be uncompromisingly safeguarded.
4. Process knowledge should be guarded in indiscernible areas.
This presentation discusses the effects of Technology Commoditization in detail, as well as its counter measures. Additional topics discussed include the Learning Curve, Experience Curve, Technology Commoditization Matrix, Patent vs. Trade Secret, among others.
The slide deck also includes some slide templates for you to use in your own business presentations.
This presentation delves into the root causes of Technology Commoditization, including IP copying, government pressure, and knowledge mobility. It also highlights the importance of leveraging advanced design and simulation tools to maintain a competitive edge.
This PPT slide presents an analysis of how technology commoditization impacts overall costs, particularly focusing on value-added costs. It references the foundational work of Bruce Henderson from the Boston Consulting Group, who introduced the Unit Cost model and the Experience Curve concept. This model illustrates the relationship between production experience and efficiency, suggesting that as production volume increases, costs decrease proportionally.
The Experience Curve effect is a key focus here. It highlights that with increased production, organizations can achieve greater efficiency, which leads to reduced costs. The slide emphasizes the cyclical nature of this effect: as demand increases, there is more deployment of resources, which in turn drives prices down. This cycle can create a competitive environment in new markets, allowing firms to capture greater market share.
The implications of this effect are significant. It suggests that businesses can leverage the efficiencies gained from increased production to enhance their market position over time. The slide also hints at specific industries where technology commoditization is particularly relevant, such as semiconductors, LEDs, and gene sequencing.
Overall, the content encourages executives to consider how embracing technology commoditization can lead to cost reductions and improved market positioning. The insights provided can serve as a strategic guide for decision-making, especially for organizations looking to optimize their operations and expand their market presence.
This PPT slide focuses on the concept of technology commoditization and its implications for new entrants in the market. It introduces the learning curve as a framework for understanding how proficiency in a task correlates with the time and effort invested. The graph illustrates that performance improves with increased learning effort,, but the text challenges the notion of a "steep learning curve." It argues that this phrase inaccurately suggests that acquiring technical expertise is inherently difficult and time-consuming.
The content emphasizes that emerging technology companies can circumvent traditional barriers to entry, such as extensive practice and experience. This is largely due to the transfer of tacit knowledge from established firms to newcomers, often through employee movement. Such dynamics enable these new players to rapidly develop their capabilities and pose significant challenges to established competitors.
The slide also highlights that knowledge is increasingly embedded in tools used for design and manufacturing, which further accelerates the learning process for new entrants. This shift allows them to compete effectively in the market, even without the historical experience that typically benefits established firms. The mention of "kamikaze industries" suggests that the rapid pace of commoditization can lead to volatile market conditions where traditional advantages are quickly eroded.
Overall, the slide presents a compelling argument for potential customers to consider how technology commoditization alters the competitive dynamics of their industries. It encourages a reevaluation of traditional assumptions about learning and expertise in the face of evolving market conditions.
This PPT slide presents a strategic framework for companies to evaluate their approach to intellectual property, specifically focusing on the decision between patenting and maintaining trade secrets. It outlines a matrix that juxtaposes 2 critical dimensions: detectability and uniqueness.
On the vertical axis, detectability ranges from "easy to see" at the top to "hard to see" at the bottom. The horizontal axis spans from "many possible alternatives" on the left to "only one alternative" on the right. This structure helps organizations determine the most appropriate intellectual property strategy based on the visibility and uniqueness of their innovations.
The slide emphasizes that patents are most beneficial when the application of a development is limited and likely to be noticed. In scenarios where the innovation is not easily observable, relying on patents might not be effective, as they primarily serve to inform others rather than protect the innovation. Here, the slide suggests that a robust trade secrets strategy could be more advantageous.
Furthermore, if multiple methods exist for achieving a particular outcome, the slide advocates for a defensive disclosure approach. This involves publicly sharing knowledge to prevent others from patenting the same innovation, thus safeguarding the company's interests.
Overall, the content encourages companies to carefully weigh their options regarding intellectual property. The insights provided can help executives make informed decisions that align with their strategic objectives, ensuring that they protect their innovations effectively while considering the potential risks and benefits of each approach.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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