Part Two : Of a three-part series on managing technology risk and reducing the likelihood of product development disappointment
Technology based product development has surged as advances in science and technology are being used to create exciting new products and platforms. Entrepreneurs and enterprises are aggressively searching for and leveraging novel technologies in the hopes of disrupting an existing commercial market and achieving financial success.
In an effort to accelerate development and reduce time to market, many entrepreneurs unwittingly attempt to complete technology development in parallel with product development. The appeal of a parallel technology-product development path is that it promises a quicker return on investment. In practice this is a risky proposition, which often leads to schedule and cost overruns, and frequently results in disappointment and failure.
These entrepreneurs and organizations fail to recognize the difference between technology development and product development. In many cases, they lack the mindset and tools needed to ascertain if and when a key technology is sufficiently mature for product development.
Technology Readiness Levels (TRLs) are a useful tool that can provide a framework and a common language for systematically assessing a technology’s maturity. It helps teams characterize the risk posed by the technology if it is included in product development. With this knowledge, a team is better equipped to plan a successful product development roadmap.
TECHNOLOGY MATURITY - WHAT COULD GO WRONG?
I have spent my career developing products for consumer, commercial, medical and aerospace applications. During this time, I have observed many instances when insufficient technology maturity has caused a product development initiative to veer off the rails. One example that comes to mind is a development project that I supported for an aerospace firm. Our team was busy developing a nose cone separation system for a next generation missile defense system. Our client approached us to see if we could leverage similar technology for an entirely different application on the missile. Eager to bring in additional work for our firm, our technical team quickly developed a proof-of-concept prototype and tested it as a technology demonstrator. The test was a success, we were thrilled, and the client was sold on our proposed solution. The result was the award of a large fixed price development contract to our firm, with the opportunity for a very lucrative follow-on production contract. The euphoria quickly faded as the successful test could not be repeated. Product development limped forward as our engineering team focused on understanding and improving the core technology. It took over a year to resolve the issues and mature the technology to the point where it was ready for product development. This was a very costly episode for the firm and a major schedule setback for our client. Had we objectively assessed the maturity of our technology before initiating product development, we may have made different decisions and done a better job planning our program by allocating sufficient resources and time for risk mitigation activities.
UNDERSTANDING TECHNOLOGY READINESS LEVELS
Technology Readiness Levels (TRLs) were pioneered by NASA and have been more broadly adopted by the Department of Defense (DoD) to determine when technologies are ready to be handed from Science and Technology development managers to product development managers. Readiness levels are measured along a scale of one to nine, starting with paper studies of the basic concept (technology discovery), proceeding with laboratory demonstrations (technology demonstration), and ending with a technology that has proven itself on the intended product (feasible embodiment demonstrated). The following table identifies each of the nine TRLs and provides a description the technology maturity expected for this level of development.
The following excerpt from a Government Accountability Office (GAO) report describes how technology moves from inception through development to being ready for production vis-à-vis the technology readiness levels:
First, the idea for a new radio is conceived. The idea reaches TRL 3 when analytical studies and some tests of the technology’s elements, such as a circuit, back it up. When initial hand-built versions of all of the radio’s basic elements are connected and tested together, the radio reaches TRL 5. This is sometimes referred to as a “breadboard” article; although it may function like a radio, it does not look like one because the individual parts are attached to a board and hand-wired together. When the technology is built into a generic model, which is well beyond the breadboard tested in TRL 5, and demonstrated in a laboratory environment, the radio reaches TRL 6. This model represents the last level of demonstration before the radio becomes tailored for a specific application platform (e.g. a specific aircraft). When the components are assembled inside a case that resembles the final radio design and are demonstrated aboard a surrogate for the intended platform, the radio reaches TRL 7. TRL 8 is reached when the radio is put in its final form, installed in the intended application platform (e.g. aircraft’s cockpit), and tested in conjunction with the other equipment with which it must interface. TRL 9 is achieved when the radio is successfully operated in the application (e.g. aircraft) through several test missions.
Remember - the primary purpose of TRLs is to reveal the gap between a technology’s maturity and the maturity demanded for successful inclusion in the intended product.
Now that we have roadmap and are able to identify where a technology sits along the path to becoming a product, where does technology development end and product development start? The DoD generally considers TRL 7 to be an acceptable risk for starting product development. The readiness level definitions state for a technology to be rated at TRL 7, it must:
be demonstrated using prototype hardware that is the same size, weight and configuration as that intended for the final product design
key components must be integrated together as they would in the final product design
prototype has to be demonstrated to work in an environment similar to that of the planned application
It is not uncommon for some commercial firms to wait with product development until a technology reaches TRL 8. This is especially true of firms developing products where the technology is being integrated into an expensive or a high volume application where the high cost of production, risk of recall from a technology failure or the need to meet all cost and schedule targets compel the firm to be especially cautious (e.g. automobiles and commercial aircraft). For these firms, any such risk is not considered containable.
My first introduction to TRLs occurred while preparing proposals for government solicitations. Many solicitations stipulated that only proposals for systems, technologies or components at a TRL 7 or higher would be considered for the subsequent product development program.
My own product development experience matches the findings and recommendations from the GAO, which is; product development is most successful when technology development is completed to the point that key technical elements of the intended product are thoroughly understood and characterized. Our technical teams frequently use TRLs to audit technology maturity and readiness when planning projects. We have found that the TRL roadmap is easily scaled and simplified to suit the complexity of almost any proposed technology dependent product solution.
TECHNOLOGY MATURITY LEADS TO PRODUCT DEVELOPMENT SUCCESS
Technology development and product development is hard. One does not replace the other, and it is best not to do both at the same time. These are two peas in a pod. Taken together and done in the correct sequence, the results can be amazing, even transformative, with the potential to change our world. The key is to recognize the difference between the two, candidly assess where on the spectrum your technology resides and plan for product development accordingly.
Technology advancement is a key ingredient for creating novel and exciting products and platforms. Awareness and planning are necessary for successfully transferring technology into a commercial ready design. TRLs are a useful tool for assessing technology maturity and planning a successful product development initiative.
How does a product manager or entrepreneur use TRLs to determine readiness for product development?
Part 3 of this series will expand on how to apply this tool during your product’s planning phase.
Diatomic Product Development is a team of talented engineers, designers and business professionals with years of experience designing, developing and commercializing innovative and exciting new technology-based products.
We can help your team achieve your technical and business goals. LETS TALK