slide 1 creating and executing a technology strategy for a global industry hal stillman director of...
TRANSCRIPT
Slide 1
Creating and Executing a Technology Strategy for a Global
Industry
Hal StillmanDirector of Technology
International Copper Association, Ltd.
20 October 2006 [email protected]
Slide 2
ICA TECHNOLOGYResearch, 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 3
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
COPPER PROPERTIES
Slide 4
High electrical conductivity
High thermal conductivity
Range of valuable mechanical properties
Corrosion resistance
Aesthetic qualities
Antimicrobial surface
Essential for life
100% recyclable
Integral to energy efficient design
Integral to technological development
COPPER/ALLOY ADVANTAGES
Slide 5
INDUSTRY VALUE CHAIN
Producers Fabricators
Slide 6
END MARKET APPLICATIONS
ProductAnnual
Use (mt)%
Total Main applications and notesPower cable 2.95 15.4% Utility and industrialBuilding wire 1.40 7.3% Fixed installation in buildingsEquipment wire 1.25 6.5% Energy transmission in equipmentAutomotive Wire 0.70 3.7% Primarily wiring harnessTelecomm cable 1.60 8.4% Utility (50%), Data/voice in buildings (50%)Winding wire 2.10 11.0% Motors, transformersCopper RBS 0.40 2.1% Busbar, power generation/transmission equipmentCopper PSS 1.40 7.3% Electronics (50%), HEX (15%), Architecture (20%), General marketCopper Tube 2.05 10.7% Plumbing (50%) and commercial tube (50%)Alloy RBS 1.80 9.4% Machined brass rod for valves, fasteners, screws, fittings (incl plumbing)Alloy PSS 1.20 6.3% Electrical, electronic, coinage, munitions, builders hardwareOther 2.30 12.0% Forgings (35%), Alloy wire (15%) for zips, fasteners, electronic pins,
Alloy tube (10%) for condensers, Non cable wire rod (35%) for grounding/lightning protection, trolley wire and Al alloys, Powders, Chemicals
TOTAL 19.15 100.0%
60% of copper use is electrical applications
Fabricators End Users
Slide 7
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 co-funding
ABOUT ICA
Slide 8
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 9
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 10
SITUATION IN 2002Very 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 11
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
SITUATION IN 2002
Slide 12
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
AUTOMOTIVE RADIATORS
Slide 13
1970 75 80 85 90 95 00 05
1
2
3
4Louver fin with flat tube
Louver fin with round tube
Wavy fin
Plain fin
5 mm6 mm
7 mm
8, 9.52 mm
Hea
t tra
nsfe
r e
nhan
cem
ent f
acto
r
Matsushita
1970 75 80 85 90 95 00 05
1
2
3
4
Small diameterwith groove
5 mm6 mm
7 mm
9.52 mm
Smooth tube
Groove tube
LGToyo
Hitachi
Flat tube
trapezodial
triangle
(a) Heat transfer enhancement byhigh performance fin shape
(b) Tube side heat transferenhancement
AIRCON HEAT EXCHANGERS
A similar story about to happen…
Aluminum
Copper
Same performance at half the size
Slide 14
ICA TECHNOLOGY INITIATIVEWith 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 15
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
SOME CONSTRAINTS
Slide 16
BEFORE ICA: INCRAInternational 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 17
THE BOOKSHELF
Slide 18
THE CHALLENGE
Re-start some type of technology activity but do a better job than INCRA
What would you do?
Slide 19
LEARNING FROM INCRA FAILURESurprise: 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 20
LEARNING FROM INCRA FAILUREGovernance 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 21
CONCLUSION #1Research 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 22
CONCLUSION #2Find 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 23
EXECUTION PATHArticulate desired state
When business and technical people think about innovation…copper comes to mind
Slide 24
EXECUTION PATHForm 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, multi-company team
• Tell your story in pictures
Slide 25
Materials science, metallurgy and
materials processing networks
Government funding initiatives and
networks associated with copper
Application and design engineering
networks relevant to copper
• 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
• Academic, industrial and development organizations that apply copper in commercial applications
• Identify possible programs relevant to copper; remove technology roadblocks
• Leverage ICA funding
• 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
Connect to a number of networks within key domains and stimulate thinking about copper-related technology
ICA R&D Stimulus
Motivation
ICA R&D funding
Challenge
ICA Technology PrioritiesManagement
Interconnection of R&D domains
H. StillmanNovember 2002
ICA NETWORK CONCEPT
Slide 26
PROJECT APPROVAL PROCESS
1. Submit R&D proposal/concept 2. Proposal passes screening 3. Conditional approval 4. Investigate and resolve conditions
5. Legal agreements for R&D 6. Proposal passes due diligence 7. Funding authorization 8. Reviews by Steering Committee 9. Proceed with commercialization
Decisions
1
2 4
5
8…
9
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
X
X
X
Periodic review of project by Project Management Team with decisions to continue, change or terminate activities. At least one member is on Team.
(can include members)
3 7
6
Technology Committee
ICA President
Technology Director
Project Management Team
Project Manager
Legal Counsel
Subject Matter Experts
Project Proposer
If proposal exceeds approved technology budget, Advisory Committee approval is required
Non-secret, small, simple project may gain rapid approval
1983 Study for INCRA by the Technology Assessment Group
PROBABILITY / IMPACT MATRIX
OF NEW OR EVOLVING TECHNOLOGIES ON COPPER USAGE
HIGH
MEDIUM
LOW
NONE
LOW
MEDIUM
HIGH
100 HEAT PUMPS COMPUTERS SEMICONDUCTORS FISSION FIBER OPTICS
80 SOLAR POWER POWER ELECTRONICS
TRANSMISSION CABLE
OCEAN TECHNOLOGY
COMBUSTION SYSTEMS
MEDICAL ELECTRONICS
ROBOTICS SUPERCONDUCTIVITY HOME & OFFICE
NETWORKS
BATTERIES PRINTED CIRCUIT BOARDS
AUTOMOTIVE
60
DESALINATION TELECOM ENERGY MANAGEMENT CATV CATALYSIS BIOTECHNOLOGY
40 ELECTRIC VEHICLES
LASERS ELECTROMAGNETIC PROPULSION
20 FUEL CELLS FUSION
0
Positive Negative
Slide 28
*: ICA projects shown in red
+ _
0
HIGH MEDIUM LOW NONE LOW MEDIUM HIGH
- Antimicrobial surfaces- Aquaculture cages
- Wind power - Power doors - Wireless LANs
- Fission power- Biotechnology - Cu nanomaterials
- Wireless telecom - Fiberoptic LANs - VOIP
- PEx plumbing systems - Flat panel displays- Al micro-channel HX
- CMR - Deep sea cables- Hybrid automotive
- High efficiency stators
- High bandwidth communications over copper - SSM - Server cooling
- Cu/CNT thermal conductors
- Al solar thermal- Rare earth permanent magnet motors
- Al magnet wire- Automotive wiring alternatives
- Flat tube HX - Cu-plate HX- DGWH - Vehicle batteries?- Desalination? - Dist. energy sys.
- Power quality - Electric ships - RFID tags
- Superconductive cables
- Electroactive polymer actuators
- Copper-tube corrosion solutions - CO2 heat pumps
- Fuel cells (Cu- catalyst and desulphurization) - Power electronics- Cu-bulk metallic glasses
- Nuclear waste storage - Cu/CNT electrical conductors
- Polymer conductors?- Polymer HX
- Fusion reactor systems
- Electromagnetic rail propulsion?
20
Aug 2006
40
100
80
60
Impact of emerging/evolving technologies on copper usage2007-2011
Pro
bab
ilit
y (%
)IMPACT MATRIX
Slide 29
PHE
Pro
bab
ility
of
tech
nic
al s
ucc
ess
Low
erH
ighe
r
Sooner Later
Timing
UltraC
VAE
Cupro-Braze
CAT 6
Internal HX
Deep sea cables
Conform
DGWH
RTPF HX
Low (<10000 tons)
Medium(<50000 tons)
High(> 50000 tons)
2007-2011 Impact
Heat exchange systems
Electrical energy
Antimicrobial
SSM
ISG
GeoSolar
AntiMCMR
Server cooling
CAT 7
Tube corrosion
MEGAFlat tube
Cu BMG
EB
Cu2S PV
GeoSol
Tarnish resistance
Aquaculture Cages
PoE
Mech. alloy
Nanocoat
Fuel/Natural
gas-S
SuperC
PORTFOLIO ASSESSMENT
Kompact
FC catalyst
Slide 30
PROJECT SELECTION PROCESS
…XX Jan 0XDec/Jan
TSC meetings
Discuss Technology Roadmap elements
200X R&D portfolio
Portfolio planning and priority setting
Background research and strategy discussions
Budget allocation and project recommendations
Budget approval and project proposal assessment
Project contracting and initiation
10 year impact matrix of new/evolving technology
Proposed 200Y Technology budget
200X PRC meeting Due diligence and approval processes
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
Formal Technology Roadmap document
200Y R&D priorities $/tonne impact Project proposals Approved 200Y Technology budget
Member poll and 200Z R&D priorities
January 200Y April 200Y June 200Y October 200Y January 200Z
tonnes strategic overview budget/timing impact risks
On-going updates
Discussion across ICA Network
April Oct/NovJune/Sept
1.___________
2.___________
3.___________
4.___________
. . . Continuous posting of updated planning documents, project reports and proposals on the ICA intranet
1.___________
2.___________
3.___________
4.___________
risk impact
lesscopper
morecopper
100
0
hy
— st
px
—
probability
$
200Y Technology
Plan
$project
$
Provide breakthrough to interested companies to stimulate market development
10 Gbit/sec
MEGA
Seek non-automotive market opportunities; license to product companies; apply new Cu technology developments
Flat copper HX conduits
Engage tubing companies in development project; quick commercialization if economically viable
Copper motor rotor
Assist foundries and manufacturers; charge access fee; leverage with government funds
Antimicrobial copper/alloy
surfaces
Support with ICA market promotion; push market development in touch surfaces and aircon
Cuprobraze
Continue development to make process more competitive: wider tolerances, more efficient braze coating
* 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
Electronics cooling bus
Fund start-up to demonstrate system; engage industry from the start; possible ownership position through R&D funding
Chemically grafted
coatings
Coating production source available; coating formulation will be available to members; members involved in project
ICA TECHNOLOGY PIPELINE
ICA pre-competitive R&D funds move technologies towards commercialization
Commercialization
Semi-solid metal
forming
Form company to focus solely on Cu alloy SSM; support with market promotion; leverage with government funds
*
New project sources: R&D network ICA network Market intelligence Venture capital network
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
Engage fabricators and industry to produce prototypes; aim for widespread application
New projects starting 2006
Slide 32
EXECUTION PATHSet 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 33
ICA’s R&D PRINCIPLESFocus 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 34
EXECUTION PATHBuild personal relationships with member firms, end-users 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 35
EXECUTION PATHEstablish 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 36
COMMMERCIALIZATION CONCEPTSFocus 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 37
TECHNOLOGY DEVELOPMENT PROCESS
Technical capabilities• Properties• Processes
Application knowledge• Industry pain points• Market dynamics
New copper application
Venture creation / entrepreneurial effort
Market/business innovation
Technology feasibilitydemonstration
Merge market and technology insights
Pre-competitive research/development
Commercialization
Member/supply chain participation
Slide 38
ICA’s R&D FOCUSCreate 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 39
Condensing demand gas water heater
CO2 heat pump
HEAT EXCHANGE SYSTEMS
Small diameter aircon tubesFlat multichannel tube
Plate heat exchanger
Slide 40
Electromagnetic transmissionIntegrated starter generator
AUTOMOTIVE HYBRIDS
Slide 41
Antimicrobial surfaces Antimicrobial aircon heat exchangers
ANTIMICROBIAL
Slide 42
RENEWABLE ENERGY
GeoSolar systemEmergence BioEnergy
Slide 43
ELECTRICAL ENERGY
Deep sea electrical cable sheathing Copper motor rotor (industrial, appliance and automotive
applications)
Slide 44
DATA COMMUNICATIONS
Data communications beyond 10 Gbps Power over Ethernet
Slide 45
UNIVERSITY RESEARCH
• Wear-resistant mechanically alloyed alumina/copper dispersion
• Silicon carbide reinforced copper for high temperature heat-transfer applications
• Copper-based bulk metallic glass
• Copper sorbents for desulphurization of fuels and natural gas (licensed)
• Copper catalyst for methanol-to-hydrogen conversion
Slide 46
CO-FUNDED R&D CONSORTIA
EcoSea GeoSol
Super Calefont
Slide 47
2006 TECHNOLOGY PROGRAMProposal Code
Proposal Title Location of R&D activities
TEK-1030 Copper motor rotor commercialization US, CN, IN, JPTEK-1014 Antimicrobial copper alloy surfaces for human health US, UK, EU, JP, CN, ZA
TEK-1023 R&D projects from CIMAT call for proposals CL and globalTEK-1003 Flat tube condenser for air conditioning US, UK, EU, JP, CN, ZA
TEK-1028 Viscous alloy extrusion processing USTEK-1033 GeoSolar system (Green Home) JP, USTEK-1001 Development of R&D networkTEK-1017 Round tube/plate fin antibacterial evaporator CNTEK-1024 Copper plate heat exchanger CNTEK-1029 Condensing demand gas water heater (DGWH) CNTEK-1026 Tube corrosion research US & more locationsTEK-1018 Single-step production of multiport sections UKTEK-1034 China R&D opportunity identification CNTEK-1021 Deep-sea electrical power cables NOTEK-1019 Internal heat exchanger for CO2 aircon system JPTEK-1022 Siemens collaboration DEMDP-0490 Air-Conditioning & Refrigeration consortium USMDP-2737 JCDA's Roadmap to future copper applications JPTEK-1009 Industrial design for new copper applicationsTEK-1007 Electromagnetic automotive transmission (MEGA) ConfidentialTEK-1020 Copper SSM USMDP-0750 Technology Program managementTOTALS
Slide 48
CURRENT SITUATIONActive 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 49
_________________________________________________
SYSTEM ARCH. FRAMEWORK
Source – Ed Crawley, MIT, ESD34.J
Slide 50
Example Project
Copper Alloy Fish Cages
Slide 51
BEYOND R & DTraditional 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 52
Copper alloy enclosures for the cultivation of marine organisms in their natural habitats
Needed in ChileSalmon
TECHNOLOGY TRANSFER
Proven in JapanYellow tail
Slide 53
AQUACULTURE CAGESFish 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 54
1976 INCRA PROJECT
Slide 55
RATIONALE IN 1976Farmed 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 56
RATIONALE IN 1976Fast 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 57
ADVANTAGES OF Cu-Ni CAGESNo 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 58
CAGE CONSTRUCTIONExpanded 90/10 copper-nickel 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 59
WHY EXPANDED METALMany 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/m3
Slide 60
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 end-of-life value
No entrepreneurial drive
Slide 61
EXPERIENCE IN JAPAN
Slide 62
JAPANESE TECHNOLOGYNetting 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 63
JAPANESE TECHNOLOGYCage design, construction and installation by Ashimori
12m x 12m x 10m deep
Slide 64
JAPANESE TECHNOLOGY
UR30 net after 4 years in Japan UR30 net after 5 months in Chile
Nylon net after 5 months in Chile
Slide 65
REAL BENEFITS IN JAPANNO 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 66
REAL BENEFITS IN JAPANLower 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 67
A HAPPY FISH FARMER
Slide 68
AN OPPORTUNITY FOR CHILETransfer 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
CleanTech 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 69
ECOSEA PARTICIPANTSICA – 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 70
COPPER ALLOY SALMON CAGESResist 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 71
2006 SUCCESS FACTORS
Technical capabilities• Properties• Processes
Application knowledge• Industry pain points• Market dynamics
New copper application
Venture creation / entrepreneurial effort
Market/business innovation
Technology feasibilitydemonstration
Merge market and technology insights
Pre-competitive research/development
Commercialization
Member/supply chain participation
Technical capabilities• Properties• Processes
Application knowledge• Industry pain points• Market dynamics
New copper application
Venture creation / entrepreneurial effort
Market/business innovation
Technology feasibilitydemonstration
Merge market and technology insights
Pre-competitive research/development
CommercializationMerge market and technology insights
Pre-competitive research/development
Commercialization
Member/supply chain participation
Better alloy material in better form
Deeper understanding of industry needs
Technology proven in use; needs adaptation
Leasing business model to lower capital cost
Technology transfer to local industry
Business consortium with government co-funding
Slide 72
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 73
Creating and Executing a Technology Strategy for a Global
Industry
Hal StillmanDirector of Technology
International Copper Association, Ltd.
20 October 2006 [email protected]