
77b45713f1a1cdd11a1124ad343896f6.ppt
- Количество слайдов: 73
Creating and Executing a Technology Strategy for a Global Industry Hal Stillman Director of Technology International Copper Association, Ltd. 20 October 2006 hstillman@copper. org Slide 1
ICA TECHNOLOGY Research, develop, and commercialize new and improved product and process technologies, and create new uses for copper Very complex situation How to start How to achieve success Slide 2
COPPER PROPERTIES Electron structure is origin of many valuable properties Single electron at fourth energy level is highly mobile; fills only 1 of 32 available positions Electron has gas-like behavior; moves to transfer charge, collides to transfer vibration (heat) Easy to create copper ion: copper ions readily penetrate microbes when mobilized in adsorbed water Other properties arise from cubic crystalline structure: malleability, color, alloying Slide 3
COPPER/ALLOY ADVANTAGES High electrical conductivity High thermal conductivity Range of valuable mechanical properties Corrosion resistance Aesthetic qualities Slide 4 Antimicrobial surface Essential for life 100% recyclable Integral to energy efficient design Integral to technological development
INDUSTRY VALUE CHAIN Producers Slide 5 Fabricators
END MARKET APPLICATIONS Fabricators End Users 60% of copper use is electrical applications Slide 6
ABOUT ICA A not-for-profit industry trade association* 39 member companies represent >85% of world copper production Focus is promoting and developing copper use Headquarters in New York 27 offices globally with ~200 technical marketing staff 2006 budget $45 million plus $20 million cofunding Slide 7
ICA MISSION Advance copper as the material of choice for current markets and new applications given its superior attributes in terms of technical performance, sustainability, essentiality for life, and its contributions to a higher standard of living. Slide 8
THE UNSTATED MISSION Do what you can within anti-trust guidelines to assure that there is demand for just a little more copper than the industry can produce Slide 9
SITUATION IN 2002 Very little innovation in the industry • Copper industry ceding markets to alternative materials • Little effort to create new applications Price at bottom of cycle • Rapidly developing economies expected to raise demand • Concern about price volatility Industry highly fragmented • Strong competition in each stage of value chain • Producers, fabricators and end-users are not collaborating to provide superior products for consumers Slide 10
SITUATION IN 2002 15 million tonnes from mine production 5 million tonnes recycled Total value in 2002: • 20 million x $2000 = $40 billion of commodity material • Low industry profitability Opportunity for technology development recognized Avoid repeating experience of automotive radiator market Slide 11
AUTOMOTIVE RADIATORS In 1975 copper had 100% of the market and did not believe that situation could be changed By 2002 market share was less than 10% with loss of >100, 000 tonnes Real reasons for the success of aluminum automotive radiator is not weight but: • 25 -year development effort of the aluminum industry • Total neglect in that same period on the part of the copper industry Slide 12
AIRCON HEAT EXCHANGERS A similar story about to happen… Aluminum Copper Same performance at half the size Slide 13
ICA TECHNOLOGY INITIATIVE With the support of ICA’s Technology Steering Committee, the Director of Technology will: • Create and execute a plan for the development of an infrastructure for research work and the search for promising technologies or products that would benefit from/or be developed with ICA funded research • Develop a concept for an external venture capital company to further development and commercialization of promising new products and technologies* Slide 14
SOME CONSTRAINTS Can not engage in “ordinary business” Retain not-for-profit status Anti-trust concern prohibits price discussion Members are competitors (in many ways) Slow decision-making Vocal member opposition to diverting funds to R&D Wary insider opposition to outsider leading organization in new direction Must achieve tonnage impact Slide 15
BEFORE ICA: INCRA International Copper Research Association • Previous industry research organization • Operated from 1958 - 1990 459 projects in 32 years spending $90 million Outstanding technical managers Bookshelf of detailed project reports • Excellent research quality No lasting commercial successes In 1990, industry shut down activity and focused solely on promotion Slide 16
THE BOOKSHELF Slide 17
THE CHALLENGE Re-start some type of technology activity but do a better job than INCRA What would you do? Slide 18
LEARNING FROM INCRA FAILURE Surprise: many of the same ideas thought to hold promise in 1960 still held promise in 2002 • Great job of spotting opportunities, but spread R&D effort too thinly • Prematurely stopped work on problems that were worth solving • Technical breakthroughs needed to achieve market success had not been made Puzzling: once-a-decade review of new opportunities and commercialization possibilities • What were they thinking? Slide 19
LEARNING FROM INCRA FAILURE Governance barrier to getting directly involved in commercialization • Don’t compete with members • Put R&D results into the public domain and hope for the best • Belief that a great research result is sufficient to spark commercialization • Single product “Product Engineer” insufficient to drive commercialization Slide 20
CONCLUSION #1 Research should hold a persistent focus on real opportunities despite short-term technical setbacks • Multiple attempts should be made to find a solution path to a promising market opportunity • Focused efforts should not be constantly diverted by the search for new opportunities Slide 21
CONCLUSION #2 Find a way to connect technology to the market through entrepreneurial business development • An entrepreneur will persist in trying to find a technical solution to a market opportunity • Protect intellectual property to capture potential value • Persistent effort will be needed to find a workable approach for ICA • Attract potential commercialization partners and supporters But…organization really not ready to embrace venture capital-like approach to commercialization* Slide 22
EXECUTION PATH Articulate desired state When business and technical people think about innovation…copper comes to mind Slide 23
EXECUTION PATH Form a Steering Committee that helps prioritize activities and provides political guidance* Quarterly meetings with briefing book in advance • Dialogue begins where briefing books ends • Achieve consensus on major processes and concepts • Take significant directional decisions Do R&D, but talk about commercialization Multi-lingual, multi-cultural, multi-level, multicompany team • Tell your story in pictures Slide 24
ICA NETWORK CONCEPT Connect to a number of networks within key domains and stimulate thinking about copper-related technology Materials science, metallurgy and materials processing networks • R&D and academic organizations with a potential contribution to copper technologies • Understand past/current projects and their relevance to copper • Leverage ICA funds through their sources of funding • Expand on current ICA contact base Application and design engineering networks relevant to copper • Academic, industrial and development organizations that apply copper in commercial applications • Identify possible programs relevant to copper; remove technology roadblocks • Leverage ICA funding Government funding initiatives and networks associated with copper • Understand linkage between copper and government funding priorities • Profile types of projects being funded • Create new funding initiatives that involve copper • Connect individuals in other domains to appropriate funding sources ICA R&D Stimulus Motivation ICA R&D funding Challenge Management Interconnection of R&D domains H. Stillman November 2002 Slide 25 ICA Technology Priorities
PROJECT APPROVAL PROCESS 3 Technology Committee 7 Non-secret, small, simple project may gain rapid approval 6 9 ICA President Technology Director 2 4 X 8… Project Management Team Project Manager X Legal Counsel X Periodic review of project by Project Management Team with decisions to continue, change or terminate activities. At least one member is on Team. 5 Due diligence process for commercial, legal and technical review; applies to all projects but with special emphasis on projects undertaken in collaboration with external firms or organizations in which disclosure of project information to members is limited to protect secrecy and intellectual property rights X Subject Matter Experts (can include members) Project Proposer Decisions Slide 26 1. 2. 3. 4. 1 Submit R&D proposal/concept Proposal passes screening Conditional approval Investigate and resolve conditions 5. 6. 7. 8. 9. Legal agreements for R&D Proposal passes due diligence Funding authorization Reviews by Steering Committee Proceed with commercialization If proposal exceeds approved technology budget, Advisory Committee approval is required
Positive Negative
IMPACT MATRIX 2007 -2011 + 100 Probability (%) 80 60 40 HIGH MEDIUM LOW - Antimicrobial surfaces - Aquaculture cages - Wind power - Power doors - CMR - Deep sea cables - Hybrid automotive - High efficiency stators - Flat tube HX MEDIUM HIGH - Wireless telecom - PEx plumbing - Fiberoptic LANs systems - VOIP - Flat panel displays - Al micro-channel HX - High bandwidth - Cu/CNT thermal communications conductors over copper - SSM - Server cooling - Al solar thermal - Rare earth permanent magnet motors - Al magnet wire - Cu-plate HX - DGWH - Vehicle batteries? - Desalination? - Dist. energy sys. - Power quality - Superconductive - Electroactive polymer actuators - Fuel cells (Cu- - Wireless LANs - Fission power - Biotechnology - Cu nanomaterials - Electric ships cables - RFID tags - Nuclear waste - Polymer catalyst and storage conductors? desulphurization) - Cu/CNT electrical - Polymer HX - Power electronics conductors - Cu-bulk metallic glasses 0 - Fusion reactor - Electromagnetic systems rail propulsion? - Automotive wiring alternatives Aug 2006 *: ICA projects shown in red Slide 28 LOW - Copper-tube NONE corrosion solutions - CO 2 heat pumps 20 _ Impact of emerging/evolving technologies on copper usage
PORTFOLIO ASSESSMENT Cupro. Braze Aquaculture Cages Medium (<50000 tons) ISG Deep sea cables Super. C Server cooling Geo. Solar CAT 6 CAT 7 Geo. Sol Po. E PHE RTPF HX MEGA Heat exchange systems Kompact Internal HX High (> 50000 tons) Conform EB Flat tube VAE Tube corrosion Sooner Slide 29 Low (<10000 tons) Anti. M CMR DGWH Lower Probability of technical success Higher 2007 -2011 Impact Fuel/ Natural gas-S FC catalyst Tarnish resistance Timing Mech. alloy Electrical energy Antimicrobial SSM Cu BMG Ultra. C Cu 2 S PV Nanocoat Later
PROJECT SELECTION PROCESS January 200 Y Portfolio planning and priority setting April 200 Y June 200 Y Background research and strategy discussions Budget allocation and project recommendations TSC meetings Oct/Nov 10 year impact matrix of new/evolving technology Proposed 200 Y Technology budget 200 X PRC meeting more copper 0 200 Y R&D priorities 1. ______ Due diligence and approval processes less copper px hy — risk Project contracting and initiation …XX Jan 0 X June/Sept 100 impact Budget approval and project proposal assessment April 200 X R&D portfolio January 200 Z Discussion across ICA Network On-going updates Dec/Jan October 200 Y $ 200 Y Technology Plan st — probability $/tonne impact project $ Project proposals tonnes Approved 200 Y Technology budget Member poll and 200 Z R&D priorities 1. ______ § strategic overview 2. ______ § budget/timing 3. ______ § impact 3. ______ 4. ______ § risks 4. ______ Discuss Technology Roadmap elements Discussions with R&D organizations and ICA Network members Private conversations with fabricator members to manage potential conflicts of interest Project proposals from R&D Network . . . Continuous posting of updated planning documents, project reports and proposals on the ICA intranet Slide 30 2. ______ $ Formal Technology Roadmap document
ICA TECHNOLOGY PIPELINE Seek non-automotive market opportunities; license to product companies; apply new Cu technology developments Engage fabricators and industry to produce prototypes; aim for widespread application Coating production source available; coating formulation will be available to members; members involved in project Fund start-up to demonstrate system; engage industry from the start; possible ownership position through R&D funding Support with ICA market promotion; push market development in touch surfaces and aircon Engage tubing companies in development project; quick commercialization if economically viable Provide breakthrough to interested companies to stimulate market development Form company to focus solely on Cu alloy SSM; support with market promotion; leverage with government funds Continue development to make process more competitive: wider tolerances, more efficient braze coating Assist foundries and manufacturers; charge access fee; leverage with government funds * New projects starting 2006 MEGA New project sources: § R&D network § ICA network § Market intelligence § Venture capital network Electronics cooling bus Chemically grafted coatings Flat copper HX conduits Antimicrobial copper/alloy surfaces ICA pre-competitive R&D funds move technologies towards commercialization New projects not shown: § Round tube/plate fin all copper aircon HX § Plate heat exchangers § Lower cost solar thermal systems § Thin section extrusion § Subsea cables § Plumbing tube coating § Water heating heat pump Semi-solid metal forming 10 Gbit/sec Copper motor rotor Cuprobraze Commercialization * Rationale for ICA role to accelerate commercialization § $2 – 10 million need for technology and market development § Market development best pursued by motivated entrepreneurial company § Likely to attract external capital to grow a company § Success would create substantial new copper use
EXECUTION PATH Set down principles and socialize them • Buy-in from 15 companies with inconsistent outlooks • Initiate member-to-member interactions • Push the group just beyond lowest common denominator of acceptance • Assure appropriate level of discomfort • Give members time for stress relaxation* Expose to comparable organizations with similar issues • Visit Gas Technology Institute • Soybean Board Slide 32
ICA’s R&D PRINCIPLES Focus on creating new, high tonnage, global applications Support pre-competitive R&D where ICA funding can make a difference No internal resources; global R&D network Involve members and customers in projects Take active role in technology commercialization Leverage with external funding Each is a difficult sell* Slide 33
EXECUTION PATH Build personal relationships with member firms, endusers organizations and R&D organizations • Visit all ICA members – discuss market dynamics and technology • Visit key copper users – understand attitude towards copper use • Visit universities, research institutes, corporate labs – find the leading edge of research • Stimulate open debate of relevant issues in Technology Steering Committee Demonstrate competence and discretion to gain credibility Slide 34
EXECUTION PATH Establish initial pre-competitive projects • Mix of new applications and unaddressed needs • Mine the bookshelf; identify new challenges • Select high risk, learn-as-you-go projects • Overcome basic obstacles • Engage full supply chain • ICA members have first access to developments* Deal with major exception: secret project with global automotive OEM Initiate activities to gain co-funding Slide 35
COMMMERCIALIZATION CONCEPTS Focus and sustain effort to achieve tonnage impact Understand potential market impact and possible commercialization route from the start Build credibility through co-funding Connect technology with entrepreneurial effort Prefer technology transfer, licensing or royalty over equity ownership Equity ownership in business in exceptional cases Exit ownership position when strategic benefit achieved Slide 36
TECHNOLOGY DEVELOPMENT PROCESS Merge market and technology insights Technical capabilities • Properties • Processes Pre-competitive research/development Technology feasibility demonstration Commercialization Member/supply chain participation New copper application Application knowledge • Industry pain points • Market dynamics Slide 37 Market/business innovation Venture creation / entrepreneurial effort
ICA’s R&D FOCUS Create and commercialize application-directed technology breakthroughs in a few high potential technology domains • Heat exchange systems • Automotive • Antimicrobial surfaces • Renewable energy • Electrical energy • Data communications Slide 38
HEAT EXCHANGE SYSTEMS Plate heat exchanger Condensing demand gas water heater CO 2 heat pump Slide 39 Flat multichannel tube Small diameter aircon tubes
AUTOMOTIVE HYBRIDS Integrated starter generator Slide 40 Electromagnetic transmission
ANTIMICROBIAL Antimicrobial surfaces Slide 41 Antimicrobial aircon heat exchangers
RENEWABLE ENERGY Emergence Bio. Energy Slide 42 Geo. Solar system
ELECTRICAL ENERGY Deep sea electrical cable sheathing Slide 43 Copper motor rotor (industrial, appliance and automotive applications)
DATA COMMUNICATIONS Data communications beyond 10 Gbps Slide 44 Power over Ethernet
UNIVERSITY RESEARCH • Wear-resistant mechanically alloyed alumina/copper dispersion • Silicon carbide reinforced copper for high temperature heattransfer applications • Copper-based bulk metallic glass • Copper sorbents for desulphurization of fuels and natural gas (licensed) • Copper catalyst for methanol-tohydrogen conversion Slide 45
CO-FUNDED R&D CONSORTIA Eco. Sea Geo. Sol Super Calefont Slide 46
2006 TECHNOLOGY PROGRAM Slide 47
CURRENT SITUATION Active for ~4 years ICA funding: ~$12 M cumulative External funding attracted: ~$12 M cumulative Estimating 2006 -2010 impact of 200, 000 tonnes ($1. 6 billion) Major growth opportunities coming from Technology Global R&D Network established (140 active researchers in 2006) Commercializing R&D results Slide 48
SYSTEM ARCH. FRAMEWORK _________________________ Source – Ed Crawley, MIT, ESD 34. J Slide 49
Example Project Copper Alloy Fish Cages Slide 50
BEYOND R & D Traditional CTO management roles: • R = Research (market and technical) • D = Development (leadership) • E = Engineering Additional disciplines required at CTO level • C = Connect (partner selection, contracts, IP, value sharing and motivation matching) • M = Commercialization (funding, business development) New opportunities and innovations arise from making creative connections and moving to market Slide 51
TECHNOLOGY TRANSFER Copper alloy enclosures for the cultivation of marine organisms in their natural habitats Proven in Japan Yellow tail Slide 52 Needed in Chile Salmon
AQUACULTURE CAGES Fish cages made of copper alloys • Resist fouling • Have low corrosion rates • Resist attack by marine mammals • May prevent growth of infectious bacteria • Are recyclable at end of life Reduce operating costs Slide 53
1976 INCRA PROJECT Slide 54
RATIONALE IN 1976 Farmed fish production doubled 1970 -1975 Production at 4. 5 million kg/year; 10% of global fish supply US alone is $800 million retail industry Growth should continue • Open ocean fish stocks declining due to pollution and over-fishing • Western countries more health conscious and eating more fish • Price of fish rising making farming potentially more profitable Slide 55
RATIONALE IN 1976 Fast growth has been in low labor cost countries with traditional practices Slow growth in technologically intensive countries • Little scientific research focused on making aquaculture a profitable venture • Large companies not willing to take the risks involved in investing in large-scale aquaculture businesses INCRA’s floating copper-nickel fish cage could accelerate growth of aquaculture • More cost-effective technology • Focus on luxury crops such as salmon, trout and oysters Slide 56
ADVANTAGES OF Cu-Ni CAGES No biofouling • Avoid the costs, fish stress and nuisance of net changes • Healthy fish - maintain level of oxygen and water-borne nutrients • 5% blockage after 18 months of submersion vs 75% blockage for nylon net with copper antifouling coating More fish per cage Avoid predator attacks Reduced labor costs Slide 57
CAGE CONSTRUCTION Expanded 90/10 coppernickel sheet • 76% open area • Proven anti-fouling Rigid modules with fiberglass frames • 1 x 3 meter panels Assembly into different shapes as needed Floats covered with 90/10 copper nickel Slide 58
WHY EXPANDED METAL Many material forms considered • Wire mesh (welded and woven) • Fine braided wire woven into netting • Perforated sheet Expanded metal selected because it gave lowest cost cage • $26. 23/m 3 Slide 59
WHAT WENT WRONG? Expanded metal rigid cages cost effective but not the right choice for the application • Flexibility important • Some biofouling caught in corners of expanded metal • Not easily scaleable to large enough volume Industry grew faster than expected and needed proven, risk-free technology Cost analysis based on 10 -year cage life and no endof-life value No entrepreneurial drive Slide 60
EXPERIENCE IN JAPAN Slide 61
JAPANESE TECHNOLOGY Netting material provided by SAMBO (Japanese subsidiary of Mitsubishi Materials) Second generation material Unique alloy: low corrosion, antifouling, high strength, abrasion resistant Chemical composition (wt. %) • 64 Cu, 35 Zn, 0. 6 Sn, 0. 3 Ni Formed into woven wire net 200 current net installations Slide 62
JAPANESE TECHNOLOGY Cage design, construction and installation by Ashimori 12 m x 10 m deep Slide 63
JAPANESE TECHNOLOGY UR 30 net after 4 years in Japan UR 30 net after 5 months in Chile Nylon net after 5 months in Chile Slide 64
REAL BENEFITS IN JAPAN NO maintenance or net changes over 4 years • No cleaning costs • No cost for disposal of biofouling on nylon nets • No net change costs • No loss of fish due to stress of net changes NO antibiotics – NO disease NO parasites – NO fresh water immersion NO predator perimeter net required Slide 65
REAL BENEFITS IN JAPAN Lower environmental copper release • Constant low level release (about 30% of nylon nets coated with copper-based paint) 50% more fish per cage 10 -15% faster fish growth More profit at lower cost A clean technology • Higher consumer acceptance • Lower environmental impact • More profitable Slide 66
A HAPPY FISH FARMER Slide 67
AN OPPORTUNITY FOR CHILE Transfer of Japanese technology to Chilean industry • Woven brass alloy cage well suited to salmon culture • All production, from metal mining to installed cage, by Chilean companies Cage leasing to overcome high initial cost Clean. Tech approach • Reduced environmental impact from salmon production • Complete metal recyling at end of cage life • Strong economic benefits • Much better than copper antifouling coatings!!! Slide 68
ECOSEA PARTICIPANTS ICA – initiation, organization, research and funding Intesal – Chilean salmon industry research institute Universidad de Concepcion – research assistance Mitsubishi Materials – copper alloys for fish cages Codelco – project management Ashimori – fish cage fabrication and installation expertise Madeco – production of copper alloy wire in Chile Rivet – wire weaving for fish cages in Chile Aqua Cards – fish cage fabrication and installation in Chile Various salmon farms in Chile Slide 69
COPPER ALLOY SALMON CAGES Resist fouling • More oxygen equals faster growth • Higher conversion factor • Allow more fish per cage Resist attack by marine mammals Reduce operational complexity • Avoid net changes • Avoid the need for antibiotics Lower environmental impact • Lower low copper ion release • No liquid or solid wastes • Are recyclable at end of life Slide 70
2006 SUCCESS FACTORS Better alloy material in better form Deeper understanding of industry needs Slide 71 Technology proven in use; needs adaptation Technology transfer to local industry Leasing business model to lower capital cost Business consortium with government co-funding
SUMMARY Identify and develop network of relationships Define a vision, processes, and gain buy-in Find opportunities worth pursuing Devote the effort needed to succeed Plan for commercialization early in the process Combine technological advances with business model innovation Gain leverage from partners Encourage entrepreneurial efforts Systems thinking essential Slide 72
Creating and Executing a Technology Strategy for a Global Industry Hal Stillman Director of Technology International Copper Association, Ltd. 20 October 2006 hstillman@copper. org Slide 73