Project Experience

Innovation - Manufacturing…A Disruptive Technology Changes the Market

Client Situation
Manufacturers need to be aware not only of advances in the current technology, but also of completely new and different technologies that would dramatically alter the face of their business. Throughout the years old technologies have been replaced by new technologies that have completely changed the market and the face of business. Consider the development of CDs and the disappearance of LP records. Consider the development of new medical procedures that have obsoleted old ones. While many think the textile industry is "19th" century consider the use of textiles in almost every facet of life including the medical industry. One such client asked us to look at the development of a new fiber that has heat induction qualities. Consider how this could change the face of the electric blanket market and product line. In order to help clients become aware of and monitor disruptive technologies, Fuld & Company helps them build market radar screens in addition to gaining an understanding of the product technology. Generally, those disruptive technologies are overlooked in their research and development stages and a competitor helps to fund the development. By the time the client company sees the new technology, it is too late and then they revolutionize the market. By understanding the movements of competitors, possible technologies and the needs of customers and what customers will be looking for in the future, it is possible to build a radar screen to monitor the Tier Four or Disruptive technology competitors.

Fuld Approach
First we helped the company to understand what types of products people would be looking for in the future. WE examined the features of those future products and looked for companies and research that was being done in this area. We identified those companies and institutions. We looked at their product development, their technical expertise, the equipment they were using to make the new and different product and what they saw as their strategy for this work. When a company in this industry engages in research and development, it is normally done through university research, government grants or partnerships. Our first step was to review government filings and other public documents to identify any partnerships in the development of a specific new technology. We reviewed these documents with our client to identify any "red flags". We then worked with our client company's technical people to devise a research strategy that involved asking technical questions of key competitor sources related to that new and different technology. Most importantly, we look for joint ventures and partnerships they may be forming with Tier One and Tier Two Competitors on the radar screen.

Benefits and Implications
In one such instance, we learned the technology was to be used for another application, but would be transferable to the process of interest to our client with future development. In addition, we discovered a partnership with a company somewhat outside the industry using a technology completely different than what had previously been used. From these findings and additional research, we discovered that the company was on the path of a new and different product set that would make the current technology obsolete. For more information on innovation and disruptive technologies and product technology studies in the manufacturing industry, contactnbulger@fuld.com.