a profitable business, an in-depth understanding of the technology domain it is working on is critical. This will help determine the appropriate business goals and research focus. A single domain, however, is composed of many subcategories. Consequently, a systematic approach such as technology segmentation is necessary to simplify the task of gaining an in-depth understanding of a technology domain.
Technology segmentation is the process of dividing a technology domain into small segments based on the various application, problem, or solution areas in the domain. The small segments can be subsequently divided into even smaller ones to aid deeper analysis. Each level, which can be divided into a sublevel, will have many segments called tech nodes. Technology segmentation is performed by studying a large set of technological documents and by analyzing newly launched products and the recent activities of a brand.
The representation of technological segmentation is called taxonomy. Taxonomy or technological segmentation can help business leaders set clear business goals. For instance, it can help a business plot the list of start-ups or big companies that have maximum hold in their domain based on their patent filings. These companies can be further divided based on their size, research activities, the products they are developing, and previous mergers and acquisitions (M&A). Looking at this list of start-ups or big companies from an M&A or competitive perspective can help businesses make wise choices such as the profitable technology area to invest and many more.
In addition to helping business leaders set clear business goals, taxonomy or technological segmentation can help research and development (R&D) leaders set the research direction. For instance, the taxonomy can help them identify the most-developed areas, how each sub-node is growing, the state-of-the-art technology in each node, and develop their research based on this.
Awareness of research trends can help R&D leaders structure their portfolios. Furthermore, conducting market research alongside patent analysis helps companies determine where they should focus their R&D. Additionally, the taxonomy can help R&D leaders discover the answers for many questions such as what competitors and their inventors have in the development pipeline.
Briefly, currently, there is a lot of room for companies to conduct research and discover innovative technology. Technological segmentation or taxonomy if used correctly can play a significant role in enabling them to focus their research to achieve business objectives.
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