Proceedings of a Workshop to Review PATH Strategy, Operating Plan, and Performance Measures (2006) / Chapter Skim
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4 The Value of Technological Innovation in Home Construction and the Role of Government/Industry Partnerships in Promoting Innovation
4 The Value of Technological Innovation in Home Construction and the Role of Government/Industry Partnerships in Promoting Innovation
Pages 6-16
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From page 6... ...
After about five years, many of the industry participants in that research started asking us if they could start using the simulation technology. In response, I started a company called MOCA Systems and I left MIT in 2000 to further develop and commercialize the simulation system.
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From page 7... ...
We need to recognize that houses need to be durable and also be able to accommodate changes over time. The original PATH goals were to: · Reduce cost by 20 percent, · Reduce environmental impact by 50 percent, · Reduce maintenance costs by 50 percent, · Improve occupant safety by 10 percent, and · Improve worker safety by 20 percent.
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From page 8... ...
TABLE 4.1 Sources of Innovation Source Type of Innovation Benefits Manufacturers Commercialized Products Higher Margin Expanded Market Share New Market Builders, including Process Higher Margin specialty contractors Construction Faster Integration Better Reputation Prototype Products Owners Prototype Process New Function Prototype Product Better Performance Lower O&M More Attractive There are builders, both general contractors and specialty contractors, who innovate all the time. If you have ever gone to one of the watering holes where the builders hang out after work, you would hear that they are constantly talking about the problems they ran into that day, and what they did to solve them.
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From page 9... ...
When applying technology push, there is a need to identify the risks associated with innovations, particularly when there is a constantly changing set of complementary technologies that are all being incorporated into buildings. The identification of benefits and who captures the benefits can be a risk for the technology source.
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From page 10... ...
The final issue regarding information is keeping the fragmented, diverse, and constantly changing set of users of the innovations up to date with information about the long-term impacts and particularly issues regarding the integration of technologies. When using technology push, there needs to be a continuing relationship between the early adopters, the mid-adopters, and the late adopters to maintain the diffusion momentum of that innovation.
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From page 11... ...
Pulling together potential buyers and potential commercializing entities to bid on the rights to commercialize innovations can stimulate pre-commercialization efforts, but requires full disclosure of what it will take to transform applied research into a commercial product. When using demand pull to diffuse innovation, the first step is to identify what is actually going on and problems that people are running into.
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From page 12... ...
Another element of a program to advance technology -- and this is where Operation Breakthrough and a lot of other previous programs by the federal government did not focus -- is to look at how to create a sustainable momentum. The objective should not be to fund this program indefinitely, but to develop a set of capabilities, approaches, and assets, which can be intellectual assets as well as physical assets, that will sustain innovation in the housing industry.
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From page 13... ...
For example, when estimating the long-term operating costs there are a lot of assumptions regarding future costs for energy, labor, and materials. The prospective owners, sometimes for a good reason, may not believe what someone tells them about how much they will save.
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From page 14... ...
Other industries have adopted a just-in-time supply strategy, to streamline the supply chain and eliminate the need for large warehouses with inventories that need to be redistributed. Through Internet search engines, builders can deal directly with the manufacturers.
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From page 15... ...
If you look at the 20 largest homebuilders, there is only one that has a research and development component. We all look admiringly at Pulte Homes, because it has a building sciences component in the organization.
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From page 16... ...
Pulte would not have a building science component if Bill Pulte did not understand the long-term benefits. The building industry is driven by very short term financial outcomes.
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