Marketing of Inventions and Patentable Ideas

In the free market system, inventions and patentable ideas are specific articles of trade. According to the classic books of marketing, we have a market of producer, a market of consumer, and a postindustrial market. In the first type of market, there is a deficit on most goods and services, and consumers are “forced” to buy any available commodities

In the second type, the market is overstocked, and consumer has a choice. Here, producers are fighting for customers using advertisement and other promotional techniques. Producers rely on new ideas and inventions to the fight.

And the most recent type of market exists in postindustrial countries. In the second type of markets, the producer provides all needed products. The consumer is happy with the fair variety. In the postindustrial market, on the other hand, producers have become so developed that they produce more products than the market requires. With this excessive amount of competition, producers must provide patent protection of their existing products and obtain new patents to survive. Only companies that actively research & develop occupy the top. These companies have hundreds and thousands of patents. For example, take a look at two companies from our state of Texas. “Texas Instruments, Inc,” – the world leader in microelectronics – has about 10,000 and oil giant “Exxon” owns about 15,000 patents. Another rule of the postindustrial marker, is research and development cannot slow down. The results are drastic – another company will quickly overtake the market and your return is unlikely. Marketing is of the same importance as research and development; the company must not only create new products, it must sell them.

From the sense of above definitions of market, inventions and patentable ideas belongs to all three types of market. Inventions and patentable ideas are very original, the owner of the patent has the privilege to use his intellectual property without competition during 20 years. From the other side, on the contemporary market there are a lot of other products of similar purpose it leads to competition. Also inventions and patentable ideas are very new, consumers didn’t use for them, and the promoter (author or assignee) has to spend a lot of money and time to convince consumers in the advantages of new products.

Early marketing techniques followed production and were responsible only for moving goods from the manufacturer to the point of final sale. Now, however, marketing is much more pervasive. In large corporations, marketing functions precede the manufacture of a product. They involve market research and product development, design, and testing.

Marketing concentrates primarily on the buyers, or consumers, determining their needs and desires, educating them with regard to the availability of products and to important product features, developing strategies to persuade them to buy, and, finally, enhancing their satisfaction with a purchase.

For inventions and patentable ideas, marketing starts at a very early stage when the idea comes to the brain and “finds somebody home”. The first stage of marketing inventions and ideas is providing the patent search to determine did somebody already own this idea, what types of similar ideas already were patented. Such preliminary patent searches can be conducted on the IBM Patent Website, www.patents.ibm.com, for example.

With the results of patent search you can investigate all the aspects of marketing affairs. The simplest description of the development of the product is the Inversion curve, general look of which is shown in the fig.1.

We can recognize three parts of the life curve of products: the creation of the new product, followed by its quick development and then a slow decrease in relative effectiveness. These three stages can be also observed in human life - childhood, maturity and aging. Contemporary marketing has shown that it is not profitable, and therefore not wise, to artificially prolong the “life” of products. The strategy of an attacker is to produce new products as soon as the development section of the product evolution curve begins to slow down. With the slightest feeling of future descend, Texas Instruments, Exxon and other successful companies start to market the products they already developed as a result of the next technological jump.

A good source of the contemporary methods for analyzing the market position and predicting the next technological jump is the book “Innovation – The Attacker’s Advantage” (SUMMIT BOOKS, New York). Practical assistance in marketing and technological forecasting can be received from “Ideation International, Inc.”

Technological Forecasting reports the probabilities of certain design parameters falling within particular confidence intervals at some future time. Forecasting had developed into Directed Evolution. This improvement, which incorporated several hundred Lines of Evolution, constitutes a process for identifying comprehensive sets of potential evolutionary scenarios. Now, tomorrow's best designs can be created today.

It is self-evident that technology is a major governing force in economic activity. Advanced recognition of feasible technological developments and emerging innovations that will shape the future are extremely import to industrial, financial and social enterprises.

Using these patterns can systematically generate the creative ideas necessary for developing a next-generation product or process. Thus, contrary to traditional Technological There are eight Patterns of Evolution:

1. Stages of Evolution
2. Evolution Toward Increased Ideality
3. Non-Uniform Development of System Elements
4. Evolution Toward Increased Dynamism and Controllability
5. Evolution Toward Increased Complexity and then Simplification
6. Evolution with Matching and Mismatching Elements
7. Evolution Toward the Micro-Level and Increased Use of Fields
8. Evolution Toward Decreased Human Involvement

While sharing a similar general goal, the three approaches – traditional Technological Forecasting, TRIZ Forecasting and Directed Evolution – yield different results in predicting the optimum direction to follow in system design, and each employs unique tools to achieve its objectives. These differences are directly related to the primary question answered by each approach:

Approach

Main question

Traditional Technological Forecasting

"What is going to happen with my product or process parameters?"

TRIZ Forecasting

"What change(s) should be made to move my product or process to the next position on a specific pre-determined Line of Evolution?"

Directed Evolution

"Which evolutionary scenario should be selected from an identified comprehensive set of scenarios to make it a winner?"

Directed Evolution Postulates

The theoretical foundation of Directed Evolution includes the following, postulates based on the history of technological evolution and other areas of human activity.

Postulate 1. Patterns of Evolution
As they evolve, most man-made systems follow predetermined patterns rather than representing a collection of random events. A study of the history of various systems reveals these patterns and allows for the pro-active design of tomorrow's systems today. A strategy that utilizes the various steps along a given Line of Evolution can maximize profit and maintain market leadership.

The first of the eight Patterns of Evolution (listed earlier), entitled "Stages of Evolution," can be represented by the classic s-curve (Figure 1), which illustrates the life cycle stages of infancy, growth, maturity and decline.

To illustrate how the s-curve can be used, consider the characteristic of airplane speed with respect to the development of the airplane. According to the s-curve, a new concept should have been introduced before 1930 (Figure 2). Looking at several related curves on a single graph allows us to plot the position of a current design in order to predict development before it takes place. Understanding the pattern entitled "Non-Uniform Development of System Elements" explains why aircraft industry designers were short-sighted in continuing to develop the engine while ignoring the airframe.

The total life cycle of a system is composed of several s-curves. Continued success of a product or process is sustained when new systems are incorporated during the growth of the existing system (Figure 3).

Postulate 2. Market-driven Evolution
Most existing man-made systems evolve to satisfy customer needs. The customer wants a design with more functionality and quality but with a reduced price and fewer harmful effects. This means that the natural evolution of a system is one toward increasing ideality (as stated in the second Pattern of Evolution). Ideality is defined as

where:
I = Degree of Ideality
U = Sum of useful functions
H = Sum of all harmful effects, including cost/pollution

System evolution is a function of society's judgment of what is useful and what is harmful, and the perception of what is useful and what is harmful can change as place, time and circumstances change.

Postulate 3. Evolution at Expense of Resources
A system's evolution consumes resources existing in the system itself, its neighboring systems, and/or the system environment. Each evolutionary step requires new resources that may in turn be used for further development.

The initial stages of evolution use simple, obvious and easily-accessible resources. Complex, derivative and hidden resources are incorporated later.

New generations of products or processes usually appear when new types of resources are discovered (frequently, resources of material structure).

Postulate 4. Overall System's Priority for Long-term Forecasting
A system's short-term evolution (or improvement) usually depends on the system's inherent resources. A forecast based on the given system's trends and expert opinions is adequate for most decisions. Long-term development, including emerging new generations, breakthrough, etc., depends on the evolution of the overall technology and/or market rather than on the given system's features and resources.

The general Patterns/Lines of Evolution are used to structure and organize all of humankind's accumulated knowledge.

Postulate 5. Alternatives in Evolution
The current system has more than one (but not many) fairly equal ways to evolve to the next step, based upon different resources. The most competitive system is usually the first one introduced, thus attracting the majority of financial and human resources. If a solution has never been found for a specific problem that does not mean a solution will be found using the Ideation TRIZ methodology. Nor does the development of at least one solution to a given problem preclude the likelihood that TRIZ methodology will help identify others that should be analyzed so that the best solution will selected.

It should be noted here that any single patented solution can be circumvented. However, it is possible to collect an exhaustive set of solution concepts by involving various resources existing in the given system and/or its environment so that a strong patent fence can be created around a specific area of technology.

1. Analysis

Based on patents and other available information, study the history of a given system to understand how it has evolved. Identify the system's current position on all known and applicable Lines of Evolution.

Develop specialized Lines of Evolution for the given system based on 1) All applicable known universal and general Lines, and 2) Applicable specialized lines known for similar systems.

2.Identify Technological Capabilities for Evolution

Identify missing and possible future steps in the Line of Evolution.

Identify what innovations are necessary for development of the technological capabilities needed for these future steps by the formulating problems that must be solved.

3. Identify Market Input

Identify potential customers and their expectations.

Screen potential directions for the technology.

Select the directions that meet market exceptions.

4. Plan and Implement

Develop a schedule for research, marketing, development and implementation of selected ideas including:

Marketing and advertisement - Apply knowledge-based tools for the purpose of developing solutions to identified problems

Anticipatory Failure Determination - Applied to identify and avoid potential dangers associated with a selected reaction, as well as problem formulation and solution development.

Directed Evolution is an ongoing process. The evolution of a system should be monitored in order to incorporate emerging technologies and materials that offer improvements. Directed Evolution is a way to control the destiny of a product, technology, process or organization.

Our website only covers basics of marketing. To get more information and self-training, we can recommend the following literature:

Commercialization of New Materials for a Global Economy
(December 1993)

Crossing the Chasm : Marketing and Selling High-Tech Products to Mainstream Customers
by Geoffrey A. Moore, Regis McKenna (August 1999)

How to Create Interest Evoking, Sales-Inducing, Non-Irritating Advertising (Haworth Marketing Resources : Innovations in Practice & Professional Serv)
by Walter Weir, Gordon Miracle (January 1996)

Innovation in Marketing (Cim Professional Development Series)
by Susan Bridgewater(Editor), et al. (November 1999)

Managing Global Innovation : Uncovering the Secrets of Future Competitiveness
by Roman Boutellier, et al. (May 2000)

Managing New Technology Development (McGraw-Hill Engineering and Technology Management Series)
by Wm. E. Souder, et al. (January 1994)

Marketing the Unknown : Developing Market Strategies for Technical Innovations
by Paul Millier (June 23, 1999)

Smart Business Solutions : Direct Marketing and Customer Management
by Douglas Gantenbein (June 1999)

The Technology Transfer System : Inventions - Marketing - Licensing - Patenting - Setting - Practice - Management - Policy
by Albert E. Muir (August 1997)

 

Become An Inventor Copyright © Team C006094