Dan Pitkin

Business Realities of Technology Transition & Product Commercialization: 

Business Realities of Technology Transition & Product Commercialization FLC Mid Atlantic Region – 15 Sep 2005 Dan Pitkin, Business & Technology Advisor NIST Manufacturing Extension Partnership dan.pitkin@nist.gov 301-975-4734 daniel.pitkin@osd.mil 703-607-5313

Slide2: 

Labs Warfighters Private Industry

Transition & Commercialization: 

Transition & Commercialization New products for Commercial markets

Transition vs. Commercialization: 

Transition vs. Commercialization Technology Transition Driven by customer requirements and end user needs Requires product development, prototyping, test and evaluation, demonstration, manufacture scale-up Must provide application utility for end user and economic value to both customer and supplier Proof of Transition is Agency acquisition, use and sustainment Product Commercialization Same Same Same Proof of Commercialization is product sales growth and business profitability

Technology Transition & Product Commercialization: 

Technology Transition & Product Commercialization Technology transition happens when new technologies are converted into products worthy of acquisition and sustainment. Commercialization happens when customers buy and use new products that come from innovative technologies. The common goal is commercial viability – economic value for the customers, application utility for the end users, profit and ROI for suppliers.

The Commercialization Challenge – Avoiding & Overcoming Risks: 

The Commercialization Challenge – Avoiding & Overcoming Risks Systematic Risk Reduction Commercialization requires systematic risk reduction in all areas, Market, Technical, and Commercial

Market Risks: 

Market Risks Methods to reduce Market Risks - those that might impede customer acceptance of a new product. Analyzing and knowing the industry and marketplace; Selecting target customers and applications, and studying competitive offerings (price, quality, application value); Defining the product specs –performance, applications, technical data, standards, certifications, special requirements; Establishing test and evaluation programs with target customers and end users to ensure product acceptance.

Technical Risks: 

Technical Risks Methods to reduce Technical Risks – those associated with converting technology into useful finished products that add economic value to both supplier and customer: Setting specific product performance and cost/price targets, based upon customer requirements and end user needs; Testing and evaluating product prototypes during development to gage technical progress and make adjustments; Contracting or partnering with an industrial designer and/or manufacturer that have relevant product design and manufacturing experience; Using MEP tools and services (e.g. Quality Function Deployment, Design for Manufacturability, Lean Mfg.) to enhance product quality and cost.

Business Risks: 

Business Risks Methods to reduce Business Risks - those that might block commercialization due to abrupt changes in economic and business environment. Studying and tracking changing economic and business conditions in target industries (i.e. regulations, technological obsolescence, business recession, national security incidents, new legislation, business mergers, disruptions, failures, etc); Forming a strategic partnership with the target customer so that both parties share the risks and rewards of commercialization; Licensing the technology to a commercialization partner.

Technology Transfer Partnership Intermediaries: 

Technology Transfer Partnership Intermediaries

Slide11: 

***Accelerating the Transition of New Technology to the US Warfighter*** Partnership between TechLink and Montana MEP MilTech’s purpose is to improve the efficiency and cost-effectiveness of transitioning innovative technologies and new products to DoD operations A pilot program, beginning in Montana and expanding to other states

Slide12: 

Partnership Intermediary facilitating transfer and transition of DoD technologies for use by the first responder community.

Slide13: 

A partnership between TechLink and the Montana Manufacturing Extension Center [NIST MEP] This partnership is adding significant value to DoD technology transition Key Objectives: Accelerating the transition of new and innovative technology to the U.S. warfighter Lowering the cost and cycle time of technology transition and acquisition Enabling DoD to more fully benefit from its R&D funding to US small businesses

Carrier Flight Deck Cleaner : 

Carrier Flight Deck Cleaner Cleaning a Navy carrier deck requires environmentally unfriendly detergents, many sailor hours, and extra storage space for supplies. TechLink assists an Alaska engineering firm with SBIR I and II grants. SBIR topics address a Navy carrier deck cleaning vehicle.

Carrier Flight Deck Cleaner : 

Carrier Flight Deck Cleaner MilTech assisted the company with a critical design review, plant operations planning, supplier development and design for manufacturing. The vehicle will improve deck cleanliness, reduce sailor hour requirements, and reduce environmental damage.

Collaborative Product Development: 

Collaborative Product Development A U.S. travel gear manufacturer wanted to differentiate itself from imported knock-off products. TechLink initiated a relationship between Red Oxx and the Natick Soldier Center’s Textile Testing Lab resulting in a Test Service Agreement.

Soldier Load Carrying System: 

Soldier Load Carrying System SOCOM needed rugged, comfortable and lightweight load carrying systems. A DoD lab issued a competitive BAA for design options. The lab chose a small, agile company with a history of commercial success to design and build the product. MilTech is assisting the company with testing, supply chain development and quality systems.

Slide18: 

Natick’s tests provided Red Oxx with performance comparison data to provide to their customers.

Slide19: 

Red Oxx presented the test results to various media, resulting in the Outside Magazine Gear of the Year Award for travel duffels. Viable business case, marketing driven product development, Lab – Commercial business collaboration, cooperative test and evaluation, WIN-WIN outcome.

DoC and DoD Collaboration[Memorandum of Understanding – June 2004]: 

Common Purpose To accelerate the transfer and transition of appropriate technologies to the private and public sector industrial base in order to establish a national rapid response defense manufacturing supply chain. DoC and DoD Collaboration [Memorandum of Understanding – June 2004]

NIST MEPBusiness & Manufacturing Services: 

NIST MEP Business & Manufacturing Services - Point of Contact - Dan Pitkin, Business & Technology Advisor NIST Manufacturing Extension Partnership dan.pitkin@nist.gov 301-975-4734 daniel.pitkin@osd.mil 703-607-5313

MEP Mission: 

MEP Mission Provide information, decision support and implementation assistance to smaller manufacturing firms in adopting new, more advanced manufacturing technologies, techniques and best business practices.

Small manufacturers are BIG business: 

Small manufacturers are BIG business 350,000 Small Manufacturers (< 500 employees): make up almost 99% of all U.S. manufacturers; produce 55% of the value-added goods; provide almost 65% of all manufacturing employment; are active suppliers to industry supply chains; impart flexibility and efficiency to larger firms.