Showing posts with label Technology. Show all posts
Showing posts with label Technology. Show all posts
The New Information Technology Marketplace
10:23 PM
This article is also available as a Podcast on “The RootCause” podcast series available on iTunes.
As our country begins what I can only hope is a new era, I find myself wondering about the future of our industry. Information Technology took a very hard hit in the Dot Bomb Crash of 2000. I was under contract to Lucent Technologies at the time and the impact there was enormous. Jobs were lost by the thousands, and so were retirements. Now, in 2008 and 2009, we see another financial bomb–but we also see a new vision.
In 2000, the world discovered that just being on the Internet did not guarantee success. Prior to that, business was doing well at moving money around, if not actually producing much. The cash had to keep moving or it would settle to the ground and people would notice that there wasn’t that much new money–just the same funds moving in circles–redistributing. Maybe that is what finally happened. Maybe the music stopped and everyone realized that there weren’t enough chairs for everyone–and panicked.
The financial bomb this time is a bit different and as I am not a financial consultant, I will not try to explain it–even if I fully understood it-which I do not. My concern here is the impact of this market on my industry, the Information Technology Industry. This time it seems, we are not dead center on the bull’s eye–instead we are the arrow point. We went through our decimation and many of us retired, retrained in other fields or just gave up. Others stayed on and have continued to grow with the technology. It’s leaner and meaner and there are far fewer of us to do what needs doing. But, it is also the foundation of the new economy to come.
New energy systems and a rewrite of the way that the Health Care Industry does business will be heavily steeped in Information Technology. Our skills are going to be in more and more in demand as companies around the world, and here in the United States, scramble for ways to create a sustainable future for our planet and our respective countries. We will be right in the middle of it. Are you ready for that? Are you really?
One side effect of the trimming down of our industry has been reluctance to invest in upgrades, to improve efficiency of systems and, most importantly, to create. Older equipment and technology are often still in place–in mission critical positions. Products at the end of their support cycles, that are still working, are still in place. After all, why fix what isn’t broken? Money is tight.
Here is why you should fix it while it is still working.
(1) Because it IS still working. Once a component fails, you will end up scrambling to replace it–making bad decisions and building sloppy installations.
(2) Because new software tools, operating system manufacturers, (think patches), and other manufacturers of equipment, do not perform regression testing back to the beginning of time. If your operation system or other software tools are past that magical line in the sand, new-supposedly helpful-patches and upgrades could break your systems in unforeseeable and unsupportable ways.
(3) Because it is not about keeping your position in a company or in a market. It is about creating new technologies, processes and markets. The old ways don’t cut it anymore and whoever creates a solution to a problem, regardless of country or marketplace, will drive the economies of the world–and of their niche in the global marketplace. If your company creates products or provides services, you need to be on the crest of the wave.
President Obama has asked us to be willing to make hard decisions and to work to create the new technologies that will drive the world’s economy. I for one, embrace the call. Let’s stop trying to make our money by moving money from one pocket to another and begin once again to create. You, the people of the Information Technology Industry, are going to be right at the heart of it. Technologists, look for companies that want to be there too. Information Technology Managers, look for people with passion. Let the wonder that first led you to master an aspect of the magic of technology once again inspire you. This is our moment. This is our challenge. It’s time once again to have some fun with this stuff!
As our country begins what I can only hope is a new era, I find myself wondering about the future of our industry. Information Technology took a very hard hit in the Dot Bomb Crash of 2000. I was under contract to Lucent Technologies at the time and the impact there was enormous. Jobs were lost by the thousands, and so were retirements. Now, in 2008 and 2009, we see another financial bomb–but we also see a new vision.
In 2000, the world discovered that just being on the Internet did not guarantee success. Prior to that, business was doing well at moving money around, if not actually producing much. The cash had to keep moving or it would settle to the ground and people would notice that there wasn’t that much new money–just the same funds moving in circles–redistributing. Maybe that is what finally happened. Maybe the music stopped and everyone realized that there weren’t enough chairs for everyone–and panicked.
The financial bomb this time is a bit different and as I am not a financial consultant, I will not try to explain it–even if I fully understood it-which I do not. My concern here is the impact of this market on my industry, the Information Technology Industry. This time it seems, we are not dead center on the bull’s eye–instead we are the arrow point. We went through our decimation and many of us retired, retrained in other fields or just gave up. Others stayed on and have continued to grow with the technology. It’s leaner and meaner and there are far fewer of us to do what needs doing. But, it is also the foundation of the new economy to come.
New energy systems and a rewrite of the way that the Health Care Industry does business will be heavily steeped in Information Technology. Our skills are going to be in more and more in demand as companies around the world, and here in the United States, scramble for ways to create a sustainable future for our planet and our respective countries. We will be right in the middle of it. Are you ready for that? Are you really?
One side effect of the trimming down of our industry has been reluctance to invest in upgrades, to improve efficiency of systems and, most importantly, to create. Older equipment and technology are often still in place–in mission critical positions. Products at the end of their support cycles, that are still working, are still in place. After all, why fix what isn’t broken? Money is tight.
Here is why you should fix it while it is still working.
(1) Because it IS still working. Once a component fails, you will end up scrambling to replace it–making bad decisions and building sloppy installations.
(2) Because new software tools, operating system manufacturers, (think patches), and other manufacturers of equipment, do not perform regression testing back to the beginning of time. If your operation system or other software tools are past that magical line in the sand, new-supposedly helpful-patches and upgrades could break your systems in unforeseeable and unsupportable ways.
(3) Because it is not about keeping your position in a company or in a market. It is about creating new technologies, processes and markets. The old ways don’t cut it anymore and whoever creates a solution to a problem, regardless of country or marketplace, will drive the economies of the world–and of their niche in the global marketplace. If your company creates products or provides services, you need to be on the crest of the wave.
President Obama has asked us to be willing to make hard decisions and to work to create the new technologies that will drive the world’s economy. I for one, embrace the call. Let’s stop trying to make our money by moving money from one pocket to another and begin once again to create. You, the people of the Information Technology Industry, are going to be right at the heart of it. Technologists, look for companies that want to be there too. Information Technology Managers, look for people with passion. Let the wonder that first led you to master an aspect of the magic of technology once again inspire you. This is our moment. This is our challenge. It’s time once again to have some fun with this stuff!
Technology and Invention in Finance
10:22 PM
Financial Markets (ECON 252) Technology and innovation underlie finance. In order to manage risks successfully, particularly long-term, we must pool large amounts of risk among many, diverse people and overcome barriers such as moral hazard and erroneous framing. Inventions such as insurance contracts and social security, and information technology all the way from such simple things as paper, and the postal service to modern computers have helped to manage risks and to encourage financial systems to address issues pertaining to risk. The tax and welfare system is one of the most important risk management systems. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.
Top 5 Hi-Tech Car Technologies
8:46 PM
Car technologies play a vital role in modern cars. An assortment of new technologies has entered the market to ensure high levels of comfort, convenience, and enjoyment when it comes to driving a car.
Here are the top 5 high-tech car technologies:
Bluetooth
Bluetooth is a wireless signal that enables the driver to connect its mobile phone with the car’s audio system. In the modern cars, this new technology is fitted in most of the luxury cars like Mercedes-Benz, BMW, Nissan, and Fiat. It is gradually taking the place of being a standard feature in Indian cars.
The system automatically links mobile phones to the hand-free system and allows the user to enjoy its favourite music tracks when behind the wheel. It also makes it possible to make and receive calls using the contacts saved in the mobile’s phone book without physically holding the phone. This advanced technology ensures best of entertainment and facilitates a safe drive on all journeys.
Navigation System
Car navigation system is a satellite navigation system that uses a GPS (global positioning system) navigation device that helps the driver to locate the position of its car on the city map. The system works on the installed sensors and satellites using which signals are exchanged with the car’s control unit.
The system helps the driver to locate its destination and get the best possible route to reach there. When the drive feeds the desired or targeted location in the car navigation system, the computer immediately displays the optimal route. It also displays the locations of various places like petrol pumps, supermarkets, restaurants, or ATMs that the driver may need on its way to the targeted destination. This technology is found on many cars plying on Indian roads including the models from Fiat, Mercedes, and BMW.
Night View Assist
Night View Assist is one of the most advanced technologies in all of the Mercedes-Benz cars. The technology works on an inbuilt infrared camera that takes a clear picture of the road ahead. The instrumentation of the car displays the picture taken by the infrared camera so that the driver can be well aware of any obstacles ahead on the road. It displays clear images of all the objects including human, animals, big stones, and split cargo on the road ahead. With the displayed information the driver can be well prepared in advance and enjoy a safer ride.
iPod Connection
iPod connections are mini-jacks are fitted in many of the modern day cars to ensure best of in-car entertainment for car owners. The introduction of iPod in cars is actually a huge leap forward for car technologies.
Through the iPod connections a user can connect all MP3 players to the jack and enjoy his or her favourite tracks when behind the wheel. With this introduction user can also navigate through tracks saved in the MP3 player using steering wheel mounted controls. iPod connectors are available in many cars including that from GM, Fiat, BMW, and Mercedes-Benz.
Blue & Me Technology
Blue & Me is one of the most advanced technologies that has spark a new revolution in car entertainment segment. It is designed by Fiat Auto and Microsoft and is gradually changing the way car owners communicate and enjoy music behind the wheel.
With this technology the user can make and receive phone calls using voice commands and also enjoy his or her favourite music tracks. If the mobile phone receives any message the system will read out the message for the user. So, without moving hands from the steering wheel, the user can easily communicate with anyone throughout the drive and listen to it will also listen to music. The system is user-friendly and the controls are mounted on the steering wheel.
Here are the top 5 high-tech car technologies:
Bluetooth
Bluetooth is a wireless signal that enables the driver to connect its mobile phone with the car’s audio system. In the modern cars, this new technology is fitted in most of the luxury cars like Mercedes-Benz, BMW, Nissan, and Fiat. It is gradually taking the place of being a standard feature in Indian cars.
The system automatically links mobile phones to the hand-free system and allows the user to enjoy its favourite music tracks when behind the wheel. It also makes it possible to make and receive calls using the contacts saved in the mobile’s phone book without physically holding the phone. This advanced technology ensures best of entertainment and facilitates a safe drive on all journeys.
Navigation System
Car navigation system is a satellite navigation system that uses a GPS (global positioning system) navigation device that helps the driver to locate the position of its car on the city map. The system works on the installed sensors and satellites using which signals are exchanged with the car’s control unit.
The system helps the driver to locate its destination and get the best possible route to reach there. When the drive feeds the desired or targeted location in the car navigation system, the computer immediately displays the optimal route. It also displays the locations of various places like petrol pumps, supermarkets, restaurants, or ATMs that the driver may need on its way to the targeted destination. This technology is found on many cars plying on Indian roads including the models from Fiat, Mercedes, and BMW.
Night View Assist
Night View Assist is one of the most advanced technologies in all of the Mercedes-Benz cars. The technology works on an inbuilt infrared camera that takes a clear picture of the road ahead. The instrumentation of the car displays the picture taken by the infrared camera so that the driver can be well aware of any obstacles ahead on the road. It displays clear images of all the objects including human, animals, big stones, and split cargo on the road ahead. With the displayed information the driver can be well prepared in advance and enjoy a safer ride.
iPod Connection
iPod connections are mini-jacks are fitted in many of the modern day cars to ensure best of in-car entertainment for car owners. The introduction of iPod in cars is actually a huge leap forward for car technologies.
Through the iPod connections a user can connect all MP3 players to the jack and enjoy his or her favourite tracks when behind the wheel. With this introduction user can also navigate through tracks saved in the MP3 player using steering wheel mounted controls. iPod connectors are available in many cars including that from GM, Fiat, BMW, and Mercedes-Benz.
Blue & Me Technology
Blue & Me is one of the most advanced technologies that has spark a new revolution in car entertainment segment. It is designed by Fiat Auto and Microsoft and is gradually changing the way car owners communicate and enjoy music behind the wheel.
With this technology the user can make and receive phone calls using voice commands and also enjoy his or her favourite music tracks. If the mobile phone receives any message the system will read out the message for the user. So, without moving hands from the steering wheel, the user can easily communicate with anyone throughout the drive and listen to it will also listen to music. The system is user-friendly and the controls are mounted on the steering wheel.
The New Ford Technology
8:40 PM
Ford Motors is not only creating the most modern hybrid vehicles but they are also working on the best in safety features for those vehicles. There is a new array of “active” crash-avoidance technologies that will be introduced into this year by driving prototypes into large, car-shaped balloons to help customers avoid real accidents. Engineers at the Dearborn Development Center use these balloons to test the company’s new adaptive cruise control and collision warning with brake support technology. The consumer is demanding that some technology be created that can help avoid sudden unexpected hazards due to cruise control failure or brake support failures. This is just a couple of the many new safety features that are being checked and corrected for the consumers.
Ford Motors plans on introducing the system on the 2010 Ford Taurus, available in the fall 2009, while Lincoln is announcing the new system will be offered on the 2010 MKS, adding to the Lincoln flagship sedan’s long list of available technology. One of the many newer technologies is the parallel parking active park assist that makes it easier for the consumer to park without touching the steering wheel. Along with the adaptive cruise control and collision warning with brake support to warn drivers of possible hazards in front of them and assist them in reacting earlier Ford Motors believes this will improve sales for the newer vehicles. Ford Motors is using radar in order to monitor the area in front of the vehicle which should help to drastically reduce major accidents by the careful driver.
The newer safety features developed by the Ford Motors Technology division are things that other automakers will want to take a good look at and perhaps they too will install similar technologies in their vehicles. The idea is to save the consumer not only on gas mileage but to implement a vehicle that is not too expensive to repair. The high cost of repair bills is driving the profitability down for insurance companies but it is also putting a strong dent in the pocket of the consumer. No one wants high repair bills on a vehicle because it is poorly constructed and by implementing safety technology this will make the consumer much friendlier when it comes to buying the newer hybrids. The government takes a look at what “The Big Three” automakers are doing with the funds that they will be getting.
As the world grows, auto makers are going to become more advanced over it’s lifetime. From safety features to make it safer for you to newer features in the car that make it more convenient for you and your family. It’s amazing to look back on everything in the past and see how far car companies have come today. Just think of what’s out there right now and think 10 or even 20 years down the road from now. No matter what kind of car you step into, you’re going to find that you’re going to be driving in a wonderful piece of technology.
Ford Motors plans on introducing the system on the 2010 Ford Taurus, available in the fall 2009, while Lincoln is announcing the new system will be offered on the 2010 MKS, adding to the Lincoln flagship sedan’s long list of available technology. One of the many newer technologies is the parallel parking active park assist that makes it easier for the consumer to park without touching the steering wheel. Along with the adaptive cruise control and collision warning with brake support to warn drivers of possible hazards in front of them and assist them in reacting earlier Ford Motors believes this will improve sales for the newer vehicles. Ford Motors is using radar in order to monitor the area in front of the vehicle which should help to drastically reduce major accidents by the careful driver.
The newer safety features developed by the Ford Motors Technology division are things that other automakers will want to take a good look at and perhaps they too will install similar technologies in their vehicles. The idea is to save the consumer not only on gas mileage but to implement a vehicle that is not too expensive to repair. The high cost of repair bills is driving the profitability down for insurance companies but it is also putting a strong dent in the pocket of the consumer. No one wants high repair bills on a vehicle because it is poorly constructed and by implementing safety technology this will make the consumer much friendlier when it comes to buying the newer hybrids. The government takes a look at what “The Big Three” automakers are doing with the funds that they will be getting.
As the world grows, auto makers are going to become more advanced over it’s lifetime. From safety features to make it safer for you to newer features in the car that make it more convenient for you and your family. It’s amazing to look back on everything in the past and see how far car companies have come today. Just think of what’s out there right now and think 10 or even 20 years down the road from now. No matter what kind of car you step into, you’re going to find that you’re going to be driving in a wonderful piece of technology.
About Hyper-Threading Technology
8:39 PM
There is a lot of buzz about the latest hyper-threading technology. All of us know that enterprises, gaming software applications, and online businesses place a high demand on processors. To improve performance in the past, threading was enabled in software by splitting instructions into multiple streams. However, the hyper-threading technology enables you to get thread-level parallelism on each processor resulting in more efficient use of processor resources and improved performance.
Hyper-threading technology based on the idea of simultaneous multi-threading technology (SMT) where multiple physical CPUs are used to process multiple threads at once. Created by Intel, the hyper-threading technology aims to build multiple logical processors inside a single physical CPU. Hyper-Threading technology, as the name implies, allows the CPU to work on two threads at one time.
This technology is transparent to operating systems and programs. All that is required to take advantage of hyper-threading is symmetric multiprocessing (SMP) support in the operating system, as the logical processors appear as standard separate processors. It is possible to optimize operating system behavior on multi-processor hyper-threading capable systems, such as the Linux techniques discussed in Kernel Traffic.
Hyper-Threading offers two logical processors in one physical package. Each logical processor must share external resources like memory, hard disk, etc. and also must use the same physical processor for computations. This technology is independent upon platform. Some applications are already multi-threaded and will automatically benefit from this technology. Multi-threaded applications take full benefits of the increased performance that Hyper-Threading Technology has to offer, permitting users will see immediate performance gains when multitasking.
Hyper-threading technology has a great future in the coming years. Intel had released the Nehalem (Core i7) in November 2008 in which hyper-threading makes a return. Nehalem contains 4 cores and effectively scales 8 threads.
Hyper-threading technology based on the idea of simultaneous multi-threading technology (SMT) where multiple physical CPUs are used to process multiple threads at once. Created by Intel, the hyper-threading technology aims to build multiple logical processors inside a single physical CPU. Hyper-Threading technology, as the name implies, allows the CPU to work on two threads at one time.
This technology is transparent to operating systems and programs. All that is required to take advantage of hyper-threading is symmetric multiprocessing (SMP) support in the operating system, as the logical processors appear as standard separate processors. It is possible to optimize operating system behavior on multi-processor hyper-threading capable systems, such as the Linux techniques discussed in Kernel Traffic.
Hyper-Threading offers two logical processors in one physical package. Each logical processor must share external resources like memory, hard disk, etc. and also must use the same physical processor for computations. This technology is independent upon platform. Some applications are already multi-threaded and will automatically benefit from this technology. Multi-threaded applications take full benefits of the increased performance that Hyper-Threading Technology has to offer, permitting users will see immediate performance gains when multitasking.
Hyper-threading technology has a great future in the coming years. Intel had released the Nehalem (Core i7) in November 2008 in which hyper-threading makes a return. Nehalem contains 4 cores and effectively scales 8 threads.
Satellite Communications Providers – Satellite Telecoms and Gateway Services
8:36 PM
The demands of modern business and the highly competitive nature of the corporate environment dictate that any business wishing to succeed in their respective market needs to be available on an international level at all times. These demands mean that superior business communication should be a primary concern of corporations in modern day business. Technology is advancing at a rapid pace and has created an opportunity for businesses, or branches, worldwide to work together as if they were located in the same office building. Satellite communications have thus become a necessary feature in most offices as they allow communication between locations around the globe without compromising on call quality or speed.
Why satellite communications?
Satellite telecoms communication and global roaming is possible by voice and data services. An ISP is set up with a satellite communications space segment, carrier class telecoms network and internet backbone which is sent to a satellite telecoms network. Because of the use of satellites and hosted services, communication is possible from any location in the world, no matter how remote. Satellite communication technology is the key to successful business communication and the ability of a company to provide efficient service to their clients.
Satellite telecoms solutions provide a robust service that is reliable and secure. It is imperative for a successful business to avoid bad communication technology and inefficient telecoms services at all costs. When a business is attempting to run a thriving and successful corporate venture, bad communication, slow connections, lost emails, bad sound quality on calls and lost connections are problems which will propel a business into loss instead of success. Satellite communications allow a business peace of mind regarding their communication abilities as satellite technology is dependable and robust without being expensive.
Features of satellite communications for business
Global roaming solutions and satellite communication allow employees access to corporate resources, to send emails and to browse the internet whilst being able to communicate via high quality, voice compression technology, no matter where they are situated on the globe.
Call costs are lowered through calls being charged at local rates as the large broadband network makes connecting people simple and effective. Quality is not compromised because the connection is low cost – the reliable and high speed alternative to fibre networks provides seamless and reliable data carrying.
Due to the use of broadband through a satellite communications network, businesses save money in their communication costs. Fixed line technology is costly to run and even more expensive to maintain. Service fees can be staggering whilst line rental and call costs only add to the mountain of expenses. Using a broadband connection for communication allows companies to save huge amounts of money due to the simple services which accompany satellite communications.
Most satellite telecoms operators and service providers will include a free 24-hour help desk service for any problems a client may experience. Because the communication systems are so easy to set up and maintain, they rarely require a technician to be called in to fix any problems. The system is easily scalable, allowing clients to add and subtract lines as they wish without needing to pay a callout fee for a technician to add or subtract the required lines.
For any business competing in a worldwide market, location need not be a problem any longer. Thanks to the internet and satellite technology, satellite telecoms allows businesses access to high quality communication whilst cutting costs and providing a range of features to make communication even simpler. User-friendly interfaces, connection anywhere in the world, dependable and robust gateways and dedicated technical support systems are all features illustrating why satellite communications and global roaming is the future of business communications.
Why satellite communications?
Satellite telecoms communication and global roaming is possible by voice and data services. An ISP is set up with a satellite communications space segment, carrier class telecoms network and internet backbone which is sent to a satellite telecoms network. Because of the use of satellites and hosted services, communication is possible from any location in the world, no matter how remote. Satellite communication technology is the key to successful business communication and the ability of a company to provide efficient service to their clients.
Satellite telecoms solutions provide a robust service that is reliable and secure. It is imperative for a successful business to avoid bad communication technology and inefficient telecoms services at all costs. When a business is attempting to run a thriving and successful corporate venture, bad communication, slow connections, lost emails, bad sound quality on calls and lost connections are problems which will propel a business into loss instead of success. Satellite communications allow a business peace of mind regarding their communication abilities as satellite technology is dependable and robust without being expensive.
Features of satellite communications for business
Global roaming solutions and satellite communication allow employees access to corporate resources, to send emails and to browse the internet whilst being able to communicate via high quality, voice compression technology, no matter where they are situated on the globe.
Call costs are lowered through calls being charged at local rates as the large broadband network makes connecting people simple and effective. Quality is not compromised because the connection is low cost – the reliable and high speed alternative to fibre networks provides seamless and reliable data carrying.
Due to the use of broadband through a satellite communications network, businesses save money in their communication costs. Fixed line technology is costly to run and even more expensive to maintain. Service fees can be staggering whilst line rental and call costs only add to the mountain of expenses. Using a broadband connection for communication allows companies to save huge amounts of money due to the simple services which accompany satellite communications.
Most satellite telecoms operators and service providers will include a free 24-hour help desk service for any problems a client may experience. Because the communication systems are so easy to set up and maintain, they rarely require a technician to be called in to fix any problems. The system is easily scalable, allowing clients to add and subtract lines as they wish without needing to pay a callout fee for a technician to add or subtract the required lines.
For any business competing in a worldwide market, location need not be a problem any longer. Thanks to the internet and satellite technology, satellite telecoms allows businesses access to high quality communication whilst cutting costs and providing a range of features to make communication even simpler. User-friendly interfaces, connection anywhere in the world, dependable and robust gateways and dedicated technical support systems are all features illustrating why satellite communications and global roaming is the future of business communications.
Should You License Your Technology?
7:30 PM
So when should you license your technology to other companies? This can be a complicated question, since I always say “no one sells your product like you do. “
Depending upon your tendencies, there is a bias toward holding everything you develop close to the vest, unwilling to give that hard-earned technical advantage to another company. Or you may be on the other side of the fence, and want to very quickly “cash in” on a technological development—thinking that there are very large companies out there that can do a much better job selling the product than you can.
So really, what’s the right approach? Just like most other decisions facing managers of technology companies, there is no one simple answer. It really does depend on your situation.
Have a Process
The best way to approach a decision of this nature is through a methodical, logical process. It shouldn’t be done emotionally, or without proper data. To come to the optimal answer, you need to be very honest about the position of your own company in the market, your priorities, company strengths and weaknesses, and the level of resources available to you. In addition, you need to have a solid understanding of the potential of the technology in the market, whom might be an attractive licensee, how interested they may be, and “can you license to someone else and still sell your own version”?
These, and many other questions, should be answered before you reach a conclusion. All too often, however, I see companies make a snap decision on whether to pursue a licensing strategy or not. This is very strategic question for a company, yet I have seen the decision made on a whim—with less thought than “where should we have lunch today?”
What have you got?
So let’s walk through an example process. First of all, what have you got—really? Is this IP something that is a fundamental step forward, or a “nice to have?” Things that are fundamentally unique, you will want to think very carefully about before sharing with others. It may be the best thing to do, but I would recommend thinking it through most carefully, if you have something truly unique and desirable. Lesser inventions carry lesser risks of lost opportunity costs, if they are licensed out.
Does it fit the Core Business?
Second, how does it fit with your current business? If it doesn’t fit with your core business, and you have no reason to “run away” from your core business, the decision becomes a lot easier. If your current business is thriving and you have quite of bit of runway left to pursue in that market, opening up a second business has a high likelihood of becoming a distraction—potentially harming the core business. Plus, it is very likely in this instance, that you will not be able to do the new opportunity justice, anyway. So to avoid sub-optimal outcomes in both business areas, it almost always makes more sense to license the technology to another player, whose business is a better fit—and one who will dedicate the resources required to gain success.
Can you “have your cake and eat it too”?
Third, if it does fit the core business, can you license it to other segments on a non-exclusive basis? This is an important question to consider. If the answer is yes, I call this “having you cake and eating it too. ” The answer to this question is dependent upon a couple of things. Are there “fences” that can be set up between your market segment, and that of the potential licensee?
As an example, let’ say you have a new enterprise application that is different, but complementary, to your existing core product. This new product can be sold to the same type of large corporate customer that your existing product is sold to. But this new application also has strong potential in government markets, where you have no current presence. The government market is very different, and contacts are crucial to success. Instead of trying to build distribution into this new government market from scratch (which can be time-consuming), it is potentially a very wise move to license the new product to a company with existing, strong government business. They can sell it under their own label, put marketing money behind it, provide support, etc. In this way you have accessed that market, without entering into an area outside of your core competency, and without spreading around your scarce resources.
Non-exclusive licensing can be a great compromise
This is the type of “complementary” licensing deal that can be very effective in optimizing your total return on a technology. The key to this strategy is for there to be a good “fence”, so that you don’t create channel conflict between you and your licensee. In this example, you’re in the corporate market, and the licensee is in the government market. So it’s very clean and complementary, basically incremental revenue with little costs.
There are other examples of non-exclusive licensing where you end up competing with your own product under a licensee’s label. This can work as well, but it’s a lot trickier to manage. You will run into channel conflict issues, much like selling your own labeled product through reseller channels, with the added twist of another brand involved in the competition.
The final thing to consider is timing. How well protected is the technology, and how fast is the technological curve moving in this market space? If the market isn’t moving fast technologically, there may be no one overtaking you quickly. A sleepy, slow moving market tips the scales toward keeping the technology and developing the market for it in-house, rather than aggressively licensing it to others. Regardless of your resources, it becomes more likely that you will have time to exploit the IP, when there is little fear of someone leapfrogging your technology. If on the other hand, you’re positioned in a brutally competitive market with rapidly evolving technology, the arrow moves the other direction. In this case, IP is a fleeting advantage, and one that better be used ASAP, before it becomes obsolete. This scenario begs for a strategy of aggressively licensing the technology, to obtain the best return possible, in the short period of time that the IP will be relevant.
There is, of course, much more to consider when undertaking a decision to license/not license out your technology. This discussion provides an introduction to some of the major points that should absolutely be reviewed in any licensing discussion.
I’d love to hear some stories about your own licensing efforts, and hear points of view from a different angle.
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