In the past, vertical integration has been an effective strategy in managing competition. Now, due to worldwide competition, this practice is limited to very large corporations that have established a global footprint.
InnoTech Associates, Inc. has developed and implemented a low-cost vertical integration model that is effective within the United States.
As a research and development (R&D) corporation, InnoTech invents and patents innovative products that have an established market. This is accomplished by restricting R&D to items that replace existing products. An example is what the pocket calculator did to the slide rule. A US patent gives control of the United States market for approximately 20 years.
Production activities are integrated among independent, vetted professionals and corporations. Since these organizations must compete in the commercial market place, costs are controlled.
Georgia Manufacturing Alliance has aided greatly in the vetting of associates. One-half of InnoTech’s subcontractors are due to contacts from GMA meetings or tours.
The most important and difficult decision is to select the product that is to be replaced – and in this, market analysis is critical. The next step is a search of the literature concerning the product and technologies used to produce it. Any product that one does not think about 24/7 should be discarded. A key is to invent or identify a specific technology or technique for producing and/or supporting the replacement product. Then, through an iterative process, a conceptual prototype is produced from selected or developed technologies.
INNOTECH ASSOCIATE’S FUNCTION:
An InnoTech associate’s function is to complete the next phase in the commercialization of the product and to provide technical assistance to InnoTech’s staff in utilizing the technologies involved. It is expected that the associate will suggest methods and collaborate on new ways to reduce costs.
After the conceptual prototype is produced, an industrial designer firm collaborates with the InnoTech’s staff (utilizing interactive, online technologies such as VIDYO) to produce manufacturing drawings, line drawings for patent illustrations, and both pictorial and video illustrations of the product for advanced marketing purposes.
A machining company then completes all metal working (profiling, folding, welding, inspection, etc.) to produce required parts. Normally at least two production prototype iterations are produced.
The next stop is powder coating, which is performed by a company with a conveyor line in order to control costs.
The product is then shipped to the assembly firm, which performs assembly as required, packaging for shipment, inventory storage and shipment as sales are made.
InnoTech Associates, Inc. proudly announces that our first product line, the Simple Hitch and accessories, has been released for sale online at www.innotechliving.com.
The Simple Hitch has been so named because it is simple in concept, simple to use, and simple to mount on many tow vehicles, such as golf carts, ATVs, four wheelers, zero turns, riding lawnmowers, etc. Its use enables:
Hitching of trailers with little or no bending (compared to inserting a cotter pin into the little hole at the end of the hitch pin for the present tow bar/u-tongue hitching system)
Hitching or unhitching from the seat of the tow vehicle
Employment of a swivel caster on the tongue of a trailer to produce a cart and double the utilization of the trailer
Transitioning to the new Portable Transport with 5 functions [the PT-5] that provides a cart, a mobile work station, carries the load of a wagon, and replaces both the wheelbarrow and dump trailer.