The Process of Knowledge Transfer

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Table of Contents

Executive Summary
Findings
Commercial analysis
Recommendations
References and Acknowledgement

Executive Summary

In this report, a background to CFCL’s SOFC is given. The background includes a discussion of CFCL, CFCL’s SOFC, and intellectual property (IP) protection for CFCL’s SOFC. In addition to this, commercial analysis of CFCL’s SOFC is given. The commercial analysis involves determining the commercial value of CFCL’s SOFC, how to commercialize it, and the risks that threaten its success.

Terms of reference

To give a practical experience of the concepts and issues involved in technology transfer and commercialization.

Findings

Background to the idea

The invention chosen for this report is CFCL’s solid oxide fuel cell (SOFC). The special thing about CFCL’s SOFC is that it utilizes naturally occurring and renewable gas to provide electrical energy with significantly improved efficiency and considerably reduced carbon dioxide emissions. In comparison to coal, which is another source of heat and electrical energy, CFCL’s SOFC improves electrical efficiency by up to 60% and cuts carbon dioxide emissions by 60%. Not only is CFCL’s SOFC an efficient source of electrical energy, but it is also environmentally friendly.

Fuel cells are systems that generate electricity from the chemical energy present in fuels. To be more specific, fuel cells are transducers that convert the chemical energy found in fuels into electrical energy. The conversion is achieved through oxidation, which is a chemical process characterized by the reaction of oxygen and another element or compound. Oxidation in fuel cells can be realized either through the direct use of oxygen or by its indirect use, which is mainly achieved through using an oxidizing agent. In CFCL’s SOFC, the electrochemical conversion uses oxidizing agents known as ceramics (or solid oxides). The ceramics oxidize the chemical energy found in naturally occurring gas.

One of the advantages of CFCL’s SOFC is its high-energy efficiency, which means that the device generates a large amount of electrical energy from a small amount of gas. Another advantage of CFCL’s SOFC is its reduced carbon dioxide emissions, which makes it less harmful to the environment. Another advantage of CFCL’s SOFC is its low purchasing and maintenance, which makes it affordable. The major shortcoming of CFCL’s SOFC is that it has a high operating temperature, which consequentially causes it to have lengthy start-up times and incompatibilities with other mechanical and chemical devices.

There is protection for CFCL’s intellectual property (IP), which includes its SOFC technology. This is because the company is the sole proprietor of the technology, therefore, implying that it is not in infringement of any existing local or international patent. In addition, the scope of use of CFCL’s SOFC is known and accepted, that is, if used in the right manner the fuel cell does not endanger life or the environment.

Currently, there exist publications on CFCL’s SOFC technology. The publications categorically define and reveal the scope of protection captured by CFCL’s patents. Therefore, ensuring that infringements to these patents are clear and well understood. CFCL is the global pioneer in SOFC technology. The company has no immediate competitor(s) and as such, no information or indications is suggesting that there are publications competitors.

Ceramic Fuel Cell Limited (CFCL) is an Australian technology company set up in 1992. Over the years, CFCL has become a lone pioneer in Solid Oxide Fuel Cell (SOFC) technology for which it has become a world leader[5]. The company designs and manufactures domestic and industrial products that utilize SOFC technology to provide electrical and heat solutions to home and business owners. There is a listing of CFCL in the Australian and London stock exchange. Currently, the company is making sales in nine countries and as such, has built an extensive international operating base.

The research and development, testing, and manufacturing wings of the operating base are in Australia. CFCL’s operational base also includes a plant in Germany for assembling high-volume fuel cells and another in the UK for producing ceramic powder (Zirconium oxide). CFCL has a strong patent portfolio made up of 27 patent families that protect a total of 27 innovations in various countries around the world including Australia, China, Japan, Germany, the UK, Norway, and the US.

Commercial analysis

The market targeted by CFCL comprises home and business owners in need of affordable, reliable, and environmentally friendly electricity and heat solutions. One benefit that customers will enjoy from CFCL’s SOFC is increased energy efficiency implying that customers will get the most out of their product and thus, get value for their money. Another benefit customers will enjoy from CFCL’s SOFC is reduced carbon emissions, as these would otherwise continue damaging the environment.

Today’s world is in desperate need of technologies that significantly cut down on carbon emissions. Another benefit that customers will enjoy from CFCL’s SOFC has reduced maintenance expenditure. SOFC products due to their high-energy efficiency have low maintenance costs. Since CFCL is targeting home and business owners around the world and considering, partly, the increasing environmental awareness, then it is sufficient to say that CFCL’s SOFC has a huge market.

My route to the market would mainly be through licensing royalties. Through licensing royalties, I would receive payments known as running royalties from individuals I have licensed to use my invention. The payments can include the intellectual properties of the licensee. Licensing royalties would also enable me to explore partnerships in the different geographical regions of my interest. Partnerships are advantageous as they offer acceptable capital solutions and mitigate the effects of losses, as there is a spread of these among the partners. Another reason why licensing royalties is an apt commercialization method is that it will facilitate my dominance in the market.

This is because it well reserves my sole proprietorship rights. Another reason why licensing royalties is an apt commercialization method is that it facilitates research and development and ultimately continuous quality improvement (CQI) of my invention. This ensures that my customers always use a product that meets their needs and acceptable standards.

The main help that I will need in such an arrangement would come from a 3PL and a 4PL logistics company. The 3PL company would ensure that I have a complete and fully functioning supply chain in all the different geographical regions of my interest[1]. At the start, it can be very difficult for me to fulfill all the functions of my supply chain and as such, I would need to hire a 3PL company to take care of this problem. A 4PL logistic company would be essential in ensuring that my customers are, first, receiving products of the right quality and second, receiving the products in time[2]. The 4PL company would achieve these by overseeing the various functions of the supply chain. The overseeing would involve problem identification and problem eradication.

One place where I can source funds for my commercialization strategy is from private angel investors. With private angel investors, I would only need to present them with a business plan and projected earnings. Another place where I can source funds for my commercialization strategy is from the bank. From the bank, I would source the funds in the form of a long-term loan. Another place where I would raise funds for my commercialization strategy is from family and friends. Another place where I would look for funding is the government. Governments usually set aside funds for financing promising ideas from entrepreneurs.

With such an invention, my competitor would be any entity that can provide a better electricity solution than the one I have. To deal with the competition I would ensure that my product is undergoing continuous quality improvement (CQI). With such an approach, I would be ensuring that the product is constantly marketing itself.

One risk that threatens the success of my invention is insufficient capital. Insufficient capital can result in weak implementation of the commercialization strategy, therefore, compromising the success of the invention. Another risk that threatens the success of my invention is the risk of a low-quality product. Customers are interested mainly in products of high quality. Poor quality can be a result of bad organizational management and culture as well as a low code of ethics. Another risk that threatens the success of my invention is a weak supply chain. A weak supply chain causes customer dissatisfaction and eventually poor sales.

Recommendations

One recommendation that this report makes to CFCL is for it to maintain its innovative culture. The innovations are necessary for ensuring that CFCL remains the leader in SOFL technology. Another recommendation that this report makes to CFCL is that the company ensures that it has a strong logistic system, which ensures that it has a robust supply chain at all times. As pointed out earlier, a robust supply chain ensures that customers are satisfied.

Another recommendation that this report makes to CFCL is that the company ensures that it has a good organizational structure and culture. Both of these will ensure that the company has highly motivated and proactive employees who remain committed to achieving the company’s mission. Another recommendation that this report makes to CFCL is for the company to ensure that it has a high code of ethics and a critical thinking culture, as these are instrumental in promoting professionalism, which in turn results in, first, satisfied customers and second, a strong bond between the organization and its customers.

References and Acknowledgement

Ceramic Fuel cells Limited, About ceramic fuel cells, Ceramic Fuel Cells Limited 2012. Web.

Conjecture Corporation, What is oxidation, wiseGeeK, 2012. Web.

Davis Z, What is 4pl, Toolbox. 2012. Web.

Fuel Cell Markets, SOFC-solid oxide fuel cells portal page, Fuel cell Markets, 2012. Web.

Murray M, Selecting a third party logistics (3pl) provider, About. 2012. Web.

Smithsonian Institution, Fuel cell basic, Smithsonian Institution, 2008. Web.

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