From Innovation to Commercialization Dr. I-lin Cheng

Contents  Basics.  Managing Chaos.  Living with Chaos.  Conclusions.

Basics  Those who win shall not compete ! Those who plan well shall not fight ! Those who fight well shall not lose ! Those who always lose shall not panic !

Dynamic Positioning Strategic positioning 人無我有 充分條件 Operational Effectiveness 人有我優 人優我廉 必要條件 ˙differentiation ˙disruptive innovation ˙new business models ˙selective 、 uniqueness ˙barriers to imitation ★ continuous repositioning Change management ˙bench marking ˙TQC˙BPR ˙ ABC ˙ lean mfg ★ best practice ★ competition convergence

1-5 Innovation by Industry: The Importance of Strategy Successful innovation requires carefully crafted strategies and implementation processes. Innovation funnel Most innovative ideas do not become successful new products.

What is a Commercial Success? The “ product ” of these three : Technical Feasibility: Scientifically Sound, Lab-scale Proven, Reproducible, Uniqueness, Production Feasibility: Scalability, Reproducibility, Reasonable Yield, Commercially Viable Materials, Cost Advantage, Functionality, Commercial Feasibility : Timing, Customers ’ Pain, Technical Push vs Market Pull, Deliverability, Guarantee, After-Service,

Managing Chaos  View of “ Real “ and “ Empty “ : - analog vs. digital - atoms vs. bits - value creation and differentiation through intangibles - today is not the future of yesterday, but is the past of tomorrow

 Embracing Contradiction : - using benchmarking for continuous improvement on the same locus - using breakthrough for destructive construction on different locus - co-existence of apparent contradictory phenomena

 From “ management by objective “ to “ management by opportunity ” : - non-linear thinking - ability to face change should be much larger than that of planning - replace “ strategic planning ” by “ strategic intent ”

 Serendipity : - get rid of your presumptions, as many innovations came from unexpected events - there is only unthinkable but no undoable

Living with Chaos  Constantly review and adjust the priorities : - on weekly or daily basis, as the customers ’ demand may change due to technical or market reasons - set up the point of dropping relentlessly ! - define the core technologies that are needed from the customers ’ needs which shall have large chances to extend to your next round of businesses.

 Organization : - remember that organization is the route rather than the purpose - the boundaries both inside and outside the organization shall be a little bit fuzzy so as to form an eco- system toward a so-called virtual corporation

 Human resource development : - recruiting, education, exploiting and tenure - from do things right ( training) to do the right thing (education ) - nourishing four capabilities, namely, mindset, value system, skill and versatility.

 From manager to supporter M M M Traditional structure manager centering Manager gradually delegating to members Manager as supporter Manager as co-worker M M Manager Team member ﹝ obey order ﹞ Delegated members

 Wandering between technology push and market pull  Solutions or problems; there are many problems seeking solutions just as many solutions finding problems  So that use Internet effectively to find out the chances in the cyber space.

 Speed and flexibility are your best bet in the chaotic environment, as it is not the largest, nor the smartest ones that will survive, but the most FAST and ADAPTIVE ones  you cannot wait until 100% sure to fire, when you have 60~70% evidence, GO FOR IT !  Constantly modify your business model to adapt the changing environment around you

 The three immutable laws of marketing : -- Focus of the overt benefit. - Do one thing great. -- Provide a reason-to-believe. - Why are you so special ? -- Show a dramatic difference. - Prove it.

Conclusions Managing by opportunity is the best way in this chaotic era; whereas planning is less important than the flexibility. It all starts with the culture, followed by mind-setting and organization structures. Fully utilizing the power of internet for connections outside the company boundaries. “ Co-petition ” – competition and cooperation exist at the same time for the bigger pie.

THANK YOU ALL for YOUR ATTENTION Any Questions ?