The PDMA Handbook of New Product Development

20.3. Technology-Mining Process

As an outcome of effective technology planning, technology development will be aligned to support the core business. High-performance companies ensure that their business strategy is connected to a PITS (product and innovation strategy) (Cooper, 2000). By improving the strategic alignment between business and technology, more-effective product developments may result, but other opportunities beyond the scope of the core business may not. Technology planning places emphasis on creating value by expanding or leveraging the existing technology portfolio. On the other hand, a technology-mining process places emphasis on extracting value from the existing portfolio of technologies. Highly effective companies have learned to extract value by linking their technology-planning process with a technology-mining process (see Figure 20.6).

NOTE

Highly effective companies have learned to extract value by linking their technology-planning process with a technology-mining process.

During Step 2 of the technology-planning process, both building block and quiescent technologies may be identified. These technologies will merit additional evaluation through a rigorous mining process that is not limited to current business models or needs. Mining these technologies to increase shareholder value without ever expanding the technology portfolio provides the company with a significant return on investment. This can be accomplished by using the building blocks to "build" ...