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.
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Source: Best Practices in Innovation, Manufacturing, Product Management PowerPoint Slides: Technology Commoditization PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
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.
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