TECHNOLOGY BREAKTHOUGHS MARKETED TO OTHER COMPANIES
Topic: Auto News
Technology such as Roll Stability Control, Night VisionTM and computer-controlled ignition keys, no doubt, make Ford Motor Company's products better. But they also have a lot of commercial value to suppliers, other industries, and even other automakers. Technology Commercialization, Inc., part of Ford Global Technologies, LLC, actively seeks markets to license out Ford's innovative technologies. By doing so it helps Ford's bottom line generating millions of dollars in license revenue and cost-savings. "We don't create the technology, but we work with Ford's technologies and think of the best commercial applications for it," said Keith Hughes, director, Technology Commercialization. "We are very much leveraging Ford's innovations." Consisting of only a five-person specialized staff, in 2004 Technology Commercialization's revenue was $4.5 million, growing by 25 percent each of the last few years. It also is projected to have earned Ford over $10 million in cost savings. Cost savings occur, for example, when a licensee takes on the cost of managing a licensed technology. Technology Commercialization manages over 200 royalty-bearing licenses, on a wide variety of technologies. Some of its top-sellers include the Ford-invented ignition keys, which they license to locksmiths and other automakers. And Ford's Night VisionTM technology-considered to be the best around-is licensed out to the government for military applications, as well as for home and commercial security surveillance. Likewise, the Ford-invented trunk release handle-which lets someone get out of a locked trunk-is licensed to DaimlerChrysler and General Motors. Software used in vehicle computer systems is another large area of Technology Commercialization's licensing efforts, generating up to 35 percent of revenues. Technology Commercialization works with automotive suppliers, such as Lear, TRW, Bosch, but they also actively seek markets in outside, specialized companies. But it isn't giving away Ford's innovative advantages, however. They are capitalizing on it. "We are generating royalty from components, but we are also maintaining a competitive advantage." said Chris Danowski, licensing manager, Technology Commercialization. "You don't necessarily want to license out your best technology, but you can offer earlier iterations, get revenue from them, and still be on top of the curve." For example, by licensing out first-generation Hill Decent Control technology, while working on second- or third-generation versions, Ford maintains its leadership. Plus, by providing earlier iterations of a technology it creates market interest in a product. Nonetheless, licensing deals with suppliers or other third parties include agreements that protect Ford's position. Technology Commercialization works closely with Ford's scientific research community, offering guidance and feedback on commercialization potential. Often scientists and engineers, so involved in the technical side, may not be entirely aware of the commercial applications. "A lot of engineers and scientists like us because they invent things or make something and it doesn't always quickly make it into production," said Hughes. "And they see us as an ally to help them commercialize their technology. So it's a real encouragement for them." With business backgrounds in sales, marketing, product development and software-the Technology Commercialization team can see things from a strategic perspective. It can work with say, Purchasing, and make sure that Ford doesn't give away its ideas, and instead looks at ways to patent and own ideas and sell them. "We are proactive about what technology we ought to be patenting and where the commercial opportunities are," said Hughes. "If, for example, there is a great technology created and Ford at the moment can't utilize it, we might go ahead and get a patent on it and try to license it out. Ford cannot use all of the inventiveness that comes out in the company, as much as I'd love that to be the case. Technologies Commercialization enables us to get good value for that kind of technology."...
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