Technology Commercialization Process
Technology commercialization is the process of transitioning technologies from the research lab to the marketplace.
Commercialization happens in thirteen stages the first of which is idea generation. It is the result of intellectual inquiry and stimulation which may originate in encountering environmental factors or studying different resources to resolve ambiguities.
In the second stage (developing and nurturing the idea) the idea is confirmed and complemented with regard to structure, conception, and application in order to be adjusted to customer and innovation teams’ understanding and perception.
The third stage is technical, market, and commercial feasibility study. In this stage the product is meticulously examined to identify its potentials before its breaking into the market. Technical feasibility study refers to the provision of primary materials and equipments for initial production, recruiting and training expert human resources, optimal deployment of technology, and examining current technology levels for implementation purposes, capability for documentation of technology, and ease of the application procedure and training. Market feasibility study includes description of the industry, current market analysis, competition, current demand level, anticipation of future market potential, prediction of future demands, technology pricing strategies, and finally setting market entry policies and estimation of its relevant costs. Ultimately, commercial feasibility study consists of profitability prediction, breakeven analysis, and assessment of sales.
The fourth stage is prototyping products. After the assessment of technical, market, and commercial feasibility the idea should be immediately converted into a physical product in order to prepare the conditions for mass production. In this stage, the idea is designed by using the 3-D simulation software and the prototype is implemented and piloted if there are no design-defect cases and marketing flaws. To receive feedback from customers and identify strengths and weaknesses, the product may also be shown in exhibitions or presented in seminars.
The next stage is primary evaluation in which the engineering team through access to initial manufacturing plan evaluates the product in terms of technical structure and appearance and takes measures for mass production. It is imperative to mention that here it is essential to get customer feedback so that improvements can be made.
The sixth stage is production planning. To facilitate sustained mass production, principled plans should be developed for methods of preparing primary materials and production, marketing processes, super-ordinate and subordinate elements’ relations, and constructive interaction with stakeholder organizations and individuals.
Protection of intellectual property by means of the intellectual property rights is the next stage. Another way to bring innovations to market is to position the new product through distinguishing it from similar products offered in the market. Hence, serious steps should be taken to record the idea either for legal protection of the ideas of inventor or innovation team and prevention of stealth and forgery or for increasing motivation for the improvement of product status in terms of technology advancement in order to distinguish the product from those of other companies.
The eighth stage of commercialization involves investing. Once safety, capital return, and profitability are ensured, it is time for investors to take serious steps.
The ninth stage is product manufacture wherein the idea, having passed through value chain and ensuring product value, becomes practical and produced.
The tenth stage in commercialization is technology pursue. After the product is sold, the company should ensure that all customers in their time of need have the ability and skill to use it. In addition, product market should be constantly observed to help identify the gaps between the existing and desired states by increasing productivity through introducing the new technology. In fact, providing effective customer feedback which can help managers to identify their current and also possible future needs can help create product identity.
The next stage is provision in licensing agreements. In order to extend technology, obtain profit, and meanwhile conform to intellectual property rights, the rights to manufacture the product are granted to authorized applicants in the form of license agreements.
The twelfth stage is technology improvement which is accomplished through receiving customer attitudes and feedback as well as combining multifarious technologies and creating an integrated system.
The last but not the least is product development. To retain product status, technology-relevant defects should be corrected and options which distinguish the product form similar products should also be taken into account. Such uniqueness also brings about continued profitability.
The focus of this article is the success of commercialization of a good idea which four factors determine, namely team work, hierarchical move from idea generation into the implementation phase of principled plans, disciplines, and perseverance. Team work with the help of the suggested technology commercialization model is the most critical factor since forming an innovation team ensures the feasibility of commercialization. The most equipped commercialization team is one which is comprised of four characters, i.e., innovator or inventor, investor, technology expert, and entrepreneur. These four characters should perform their roles effectively apart from any harmful conflicting views and by relying on main goals, i.e., economic growth of the country, job creation, and self-sufficiency.
