This document summarizes a presentation on technology management and Porter's Five Forces model. It discusses how an industry's profit potential is determined by competitive rivalry and factors like threat of new entrants, bargaining power of suppliers and buyers, and threat of substitutes. Examples analyzing these forces in the movie industry are provided. The document also covers intellectual property principles like patents, trade secrets, copyrights, and trademarks. Key aspects of technology transfer to developing countries and technology policy frameworks are outlined. The objectives and focus areas of India's technology policy on self-reliance and strengthening technical capabilities are highlighted.

1. Technology Management A presentation to Information Technologies for the Enterprise Ufuk KILIÇ Orcas Information Technologies Conference, Session – 2 April 16, 2010, Istanbul TR

2. Porter’s Five Forces Model An industry’s profit potential is largely determined by the intensity of competitive rivalry within that industry

3. Porter’s Five Forces Model

8. Porter’s 5 Forces: Movie Industry DEGREE OF RIVALRY Few competitors - high concentration High exit barriers – stockholders High fixed costs Slowing industry growth Intermittent overcapacity No real product differences No brand identity

9. Porter’s 5 Forces: Movie Industry THREAT OF NEW ENTRANTS No economies of scale Capital requirements falling – digital technology No brand identity Direct, internet distribution

10. Porter’s 5 Forces: Movie Industry SUPPLIER POWER Limited suppliers: actors, writers, directors, special effects people Actors command high salary Need limited actors for successful film – few substitutes Some threat of forward integration (independent studios) High costs relative to total purchases

11. Porter’s 5 Forces: Movie Industry BUYER POWER Buyer volume vital (1st weekend sales!) Buyer information strong – blogs, internet buzz Pricing more sensitive ($10+) / piracy! No studio brand loyalty High movie / actor loyalty Low consumer concentration High DVD buyer concentration Many substitutes available

12. Porter’s 5 Forces: Movie Industry THREAT OF SUBSTITUTES No switching costs for consumers Moderate threat of substitution by consumers Increasing performance of substitutes – everyone wants ‘entertainment dollars’ Movie companies responding with new distribution (VOD, Same-day internet/theatre release, iPod, etc.) Week 4: Chapter 9 Competition

13. Intellectual Property Rights

15. Intellectual Property(Creations of the Mind) Inventions Literary and artistic works Company and product names Product designs Commercially valuable, secret business information

16. Types of Intellectual Property Patents Trade secrets Copyrights Trademarks

17. The Value of Intellectual Property U.S. IP is worth between $5 trillion and $5.5 trillion equivalent to 45% of U.S. GDP and greater than the GDP of any other nation 2002 - copyright industries (music, publishing and software) accounted for 6% of the U.S. GDP - $600 billion Intangibles account for 70% of the current value of equities in the U.S.

20. Customer lists

24. Design Patents

26. Who Is Not An Inventor? Individuals that merely act as technicians under the direction of the actual inventors

27. What Constitutes Public Disclosure? Websites Advertisements Publications Discussions/Presentations – not under confidentiality agreement

28. The Easiest Way to Protect Your Invention January 1, 2009 – Disclose January 2, 2009 – Patent BAD

29. The Easiest Way to Protect Your Invention January 1, 2009 – Patent January 2, 2009 – Disclose GOOD

31. Registration not necessary but affords additional rights - Legal presumptions of copyright ownership - Right to recover statutory (presumed damages) - Right to recover attorneys’ fees

33. Grants “author” of the work the exclusive right to:

34. Make copies

35. Make changes to

36. Distribute

37. Publicly perform (e.g., choreographic works)

38. Publicly display (e.g., sculptural works)

39. Life of a Copyright is Long

41. Common Copyright Mistake “Work for Hire” Doctrine - Absent agreement to the contrary: Copyright in work created by an employee within scope of employment is owned by employer Copyright in work created by a third party is owned by the third party Solution: Written agreements confirming copyright ownership Website developers Marketing/PR Agency Software/technology developers

42. Copyright Infringement Unauthorized copying of copyrighted work resulting in a “substantially similar” work Can be exact copying of small portion of copyrighted work Can be substantial paraphrasing of copyrighted work “Fair Use” Defense

44. What is a Trademark? An indicator of the source of goods (trademarks) or services (service mark) “Any word, name, symbol, or device, or any combination that is used to identify and distinguish the goods of one seller from goods manufactured or sold by others, and to indicate the source of the goods.” Examples of trademarks: Archer & Greiner Coca-Cola ExxonMobil

45. What is a Trademark (cont.)? Like copyrights, registration not necessary but affords additional rights Legal presumptions of copyright ownership Right to recover treble damages Right to recover attorneys fees Trademark rights generally exist for as long as trademark is used in commerce

46. Trademark Notices Examples: ARCHER & GREINER® ARCHER & GREINER™ Use of notice not required Registration not necessary to use notice

47. Trademark Infringement Generally prohibited from using a mark that is confusingly similar in use and appearance to another party’s mark Use may be prohibited even if two trademarks are not the same Use may be permitted even if two trademarks are identical

48. Common Trademark Mistakes Registration of a corporate name or domain name does not mean the name does not infringe a third party’s trademark rights . Solutions: . Trademark availability search . Review of registered and unregistered marks Trademark registration . Helpful but not necessary for protection . (like copyrights)

49. Technology Transfer to Developing Countries Source: UNCTAD Series on Technology Transfer & Development

51. Incubation of new technology is time consuming and at times takes decades to be commercially viable

53. Tax benefits from host country

54. Extended technology life cycle

55. Spreading various risks over a large geographical area

56. Exploitations of host countries’ natural resources

57. Global presence and over all increase in turnover

58. Strategic trade & investment initiatives

59. Reduction of Carbon Footprint in Home country

61. Financing of Technology Transfer Direct financing of technology transfer related activities such as Purchase of Equipment Licensing of particular technology Training of operators & maintenance personnel Adaptation of technologies to suit local conditions & standards Feasibility studies, project planning, etc.

62. Examples Canada Brazil & Southern Cone-Canada Technology Transfer Fund supports organisations in Argentina, Brazil, Chile, Uruguay, Paraguay C. T. Gas, Brazil Private Sector Development Program of Danida (Denmark) Best Foods Ltd. of Bangladesh

64. Bring along new opportunities and challenges that may encourage suppliers to innovate

65. Direct trainings to suppliers and retailers of their product and services

67. Which technology to choose and which to reject??

68. This is especially true where technologies change rapidly

70. US-AEP worked with Central Ground Water Board & Rajiv Gandhi Drinking Water Mission

71. India purchased $4Million worth of treatment equipment from Apryon Technologies and Water Systems International

73. Example

74. Access to Venture Capital & Technology Transfer VC provides Support for product development Commercialisation of the product Management support Business & Marketing strategies Matchmaking services

75. Example Aureous Capital Fund supports SMEs in developing countries Aureous East Africa invested $4 million in Shelys Pharmaceuticals of Tanzania Development banks are examples of VC

77. These networks reduce risks and share the costs associated with development of new products

80. They provide scholarships for higher education in their home countries

83. Market failures that call for remedial action to restore equilibrium

84. Ability of the Government to undertake measures so that benefits of intervention exceed their costs

86. Skills Skills are essential pre-requisites for national competitiveness and technological mastery Competitive advantage of developing countries lies in their low cost labour. In the long run, countries have to raise skill levels to grow in open and competitive markets

87. Technological Effort: Research & Development According to “technological gap” theory innovation is essential to trade & competitiveness Countries that innovate, gain an advantage & export to countries which are lagging technologically

88. Research & Development Funding

90. Transnational Corporations are important investment agents

91. FDI can directly increase technology stocks by providing machinery, equipment as well as technological assistance and know-how

93. Infrastructure It is an essential pre-requisite for both individual firms’ and national competitiveness Includes technological infrastructure in telephone mainlines, personal computers, mobile phones, optical fiber networks, Internet hosts, etc.

94. Indian Technology Policy

95. Aims attain technological competence and self-reliance, to reduce vulnerability, particularly in strategic and critical areas, making the maximum use of indigenous resources; b) provide the maximum gainful and satisfying employment to all strata of society, with emphasis on the employment of women and weaker sections of society; c) use traditional skills and capabilities, making them commercially competitive; d) ensure the correct mix between mass production technologies and production by the masses; e) ensure maximum development with minimum capital outlay;

96. Aims f) identify obsolescence of technology in use and arrange for modernization of both equipment and technology; g) develop technologies which are internationally competitive, particularly those with export potential; h) improve production speedily through greater efficiency and fuller utilization of existing capabilities, and enhance the quality and reliability of performance and output; reduce demands on energy, particularly energy from non-renewable sources; j) ensure harmony with the environment, preserve the ecological balance and improve the quality of the habitat; and k) recycle waste material and make full utilization of by-products.

98. In a country of India’s size and endowments, self-reliance is inescapable and must be at the very heart of technological development

99. We must aim at major technological break-through in the shortest possible time for the development of indigenous technology appropriate to national priorities and resources

101. Questions? Thank You Ufuk KILIÇ Learn with us at ufukkilic.net Thoughts on business, technology, mobile, culture, design, and living life well.