In this module we're going to look at how does technology uncertainty influence an innovation in the marketplace. And because it influences innovations in the marketplace, it's going to make a difference for when you might try to launch an internal venture. So, let's understand where technology is, it's everywhere. Many industries are traditionally high tech, and most of what is happening, with the Internet of Things today is moving in the direction of being supported by forms of technology that we haven't seen before. And so newer and newer opportunities are emerging because of the technology that has become available. And many other industries, not just the traditionally high tech industries, are beginning to incorporate forms of technology that will enable companies that are in those industries, like agriculture, automotive manufacturing or consumer products development, all of those industries also have the capability of applying technology in ways that you can start an internal venture. So, let's look at the forms of technology. There's a physical structure, there's software, there's brainware, and there's know-how. And so, these different forms of technology are all different ways in which technology can be applied and leveraged to create an innovative idea, to create an innovative product, or to improve a process with some innovative change to that process. So, all these different forms of technology are things that can be drawn upon. And when we talk about interpreting technology, we're talking about employing a practical application of knowledge for an engineering solution, okay. Not just because the technology exists, do we use it. But we are looking for a practical application of it. And so, the way in which you accomplish a tasks using a technical process, a technical method or some new technical knowledge, is the way in which you translate or interpret that technology for an innovative idea. And finally, technology applications in production, or the use of sophisticated devices, like computers, the Internet of Things or other electronic tools, are also ways in which you can begin to leverage technology for an innovation. And so, let's talk about forms of technology influence, and then maybe look at the effects of uncertainty of that. Now, there are several forms of uncertainty. We're going to look market uncertainty. We're going to look at uncertainty of the technology itself and how that has an effect on the volatility of the marketplace. So, technology uncertainty, first of all, there are ways in which technology may not do what it promises to do. And so, there is always be some uncertainty about whether the technology or the company can function with that product or that service. There is uncertainty over whether the new innovation or the new idea that comes from an innovation will, actually function as is promised. There's a lot of promise about how things are going to work and then there's the reality of how it actually does work. And so you get version 1.0 1.1, 1.2 and even 2.0, 3.0 and so forth. So you get a constant improvement of a technology, because there was uncertainty about how things work and there's always a constant form of improvement. And there's uncertainty over a time table or whether this technology is going to meet a timetable for the product development. So there usually is a timetable for any product development, and that usually is something that the producers really want to see happen at a specific point in time, so they can move to a manufacturing mode. And then, there's uncertainty on whether or not a supplier will be able to deliver key components. Maybe it's a material, maybe it's a component that's essential for their new innovation. It could be any number of things. But suppliers are a source of uncertainty as well. And then finally, there are concerns over unanticipated and unintended consequences and obsolescence rates of new technologies. So depending on the pace at which you are developing this new idea that has a form of technology, but technology itself, some new technology may be disruptive. It may just enter onto the scene and it will change completely the pace at which your idea is emerging. So, this is just a picture of all of the different forces that are contributing to technology uncertainty. And they all play a part in the planning and the control of what happens to an innovation and what happens to an innovative product or service that goes into a corporate venture. Then, now let's talk about Market Uncertainty. So we have some concerns about the type and extent and predictability of customer needs. This is always going to be the case. Customer needs are going to be changed. You'll not going to know everything about a customer need. You going to know something about it but you'll not going to know everything about it. There's always going to be a certain amount of customer fear, a consumer fear we could call it. And uncertainly and doubt, because customers aren't as, let's say as knowledgeable about the technology of the product or services being offered. And so what happens is there is doubt, there is uncertainty in the marketplace, and because of that uncertainty, there maybe uncertainty because of lack of standards of the product, it may be there is an absence of a dominant product design. The customers don't really know anything they can relate to it. And there may be a certain amount of uncertainty over the pace of acceptance and adoption of other customers, which may make customers comfortable enough to be able to adopt it. So, those are all market uncertainty concerns. And here again, we have a little diagram that shows the five factors that really do contribute to market uncertainty. So, then we have market uncertainty and technology uncertainty. What does that contribute to? Well, it's competitive volatility. And so, when you have volatility strategic changers and competitor's offerings, that is going to change what is done in the marketplace that's independent of technology and it's independent of the customer perspective. And there's a certain amount of uncertainty over rules of the game, for instance competitive strategies and tactics. What is possible? Do regulations limit? What competitive strategies can happen for a firm? There could be uncertainty over end product forms and there could be concern over competition within different product classes versus the difference between brands of the same product. So, all of these things contribute to a certain amount of volatility in the marketplace. So, what are the implications for this, for innovations and for innovations that then become ingredients for an internal corporate venture? So, you need to resolve technology uncertainty. You need to have full understanding of the level of technology acceptance in the marketplace. And you need to recognize that creative destruction will result in existing markets with obsolescent technologies and products. So, the market is going to change. So, the takeaways from this module discussion, are that we recognize the level of technology understanding and the level of technology sophistication of potential customer segments. And typically, there's going to be a significant gap between what a customer knows about the technology and what the producers of the technology are able to produce. And you need to have a realistic plan for the adoption rate of any technology-based product or service. That means that you're going to have to have a certain time frame that is realistic for releasing a product, where customers in the marketplace can actually accept this and adopt it and actually buy it and use it. And so, you can have a history of its use for another adoption stages. And finally, you need to clarify differences in your product's technology and performance and current industry standards. If you have some product or service that is way out in front of some technology performance that is currently on the marketplace, you're going to have to make it clear how that is acceptable and understandable, and how that uncertainty can be reduced by customers.
