1

Fixion™ IM (Intramedullary) Nail

Fixion™ IL (Interlocking) Nail

DISC O TECH

2

THE B-TWIN EXPANDABLE SPINAL SYSTEM

B-Twin Expanded Configuration(up to 15 mm diameter)

Post-Operative (after expansion)Anterior-Posterior View

B-Twin Reduced Configuration(5 mm diameter)

DISC O TECH

Kyphon Wins Patent Dispute against Disc-O-Tech; Disc-O-Tech to Stop Selling Kyphoplasty Products in U.S. Market; Court Broadly Construes Fundamental Kyphoplasty Patents.Business Wire| June 23, 2005 | Copyright SUNNYVALE, Calif. -- Kyphon Inc. (Nasdaq:KYPH), a leader in minimally invasive spinal products and solutions, announced today that in its patent litigation against Disc-O-Tech Medical Technologies, Ltd. and Disc Orthopaedic Technologies, Inc. ("Disc-O-Tech"), the U.S. District Court for the District of Delaware has entered a permanent injunction, effective July 22, 2005, barring Disc-O-Tech from further importing or selling its SKy Bone Expander product in the U.S. or otherwise infringing Kyphon's 4,969,888, 5,108,404 and 6,235,043 kyphoplasty patents. This concludes the patent dispute in Kyphon's favor without the possibility of further trial or appeal. Importantly, the court …

Disco-Tech sells spine products for $220m [p.16]  

12/21/2006 21:07 http://www.jpost.com/Home/Article.aspx?id=45533

Privately owned Israeli start-up company Disc-O-Tech Medical Technologies has agreed to sell its spine-related product assets and intellectual property rights to California-based Kyphon Inc. for $220 million  .

http://www.ynetnews.com/articles/0,7340,L-3343290,00.htmlAmerican company Kyphon buys Israeli start-up Disc-o-Tech Medical from Herzliya at a sum of USD 240 million

Eli Shimoni Published: 12.22.06, 14:24 / Israel Business

Disc-o-Tech was founded in 1998 by Oren Globerman and Dr. Motty Biar. The investors in the company are Louis Pell and Prof. Shlomo Ben-Haim, who have a record of successful "exits" in the area of life sciencesThe two were involved in purchases of companies which totaled USD 1 billion including the selling of Biosense to Johnson & Johnson in 1997 for USD 400 million in shares, selling of Instant to Medtronic in 1996, selling of Heart Technolgy to Boston Scientific in 1995, and the selling of X-Technologies to Guidenet.

Disc-O-Tech parent bought by MedtronicDisc-o-tech is still owed $120 million by its parent Kyphon, although the change in ownership is unlikely to affect this.1 August 07 19:11, Gali Weinrebhttp://www.globes.co.il/serveen/globes/docview.asp?did=1000238936

Earlier this week US medical device giant Medtronic Inc. (NYSE: MDT) acquired Kyphon Inc. (Nasdaq: KYPH), which specializes in devices for treating spinal disorders, for $3.9 billion. This comes after Kyphon recently made two major deals of its own. It acquired St. Francis Medical Technologies Inc., as well as the spine-related product assets and associated intellectual property rights of Disc-O-Tech Medical Technologies, Ltd..

Medtronic has activity in non-invasive spinal procedures, and says it is interested in Kyphon principally because of its expertise in this field. Disc-O-Tech's treatments also come under the same category, so they could well find their way on to the market, under the new owners. Medtronic previously acquired another company owned by Pell and Ben Haim - InStent Ltd.- for $220 million. Disc-O-Tech has additional devices for hip and thigh surgery, which it will retain ownership of following the completion of the deal. Published by Globes [online], Israel business news - www.globes.co.il - on August 1, 2007 © Copyright of Globes Publisher Itonut (1983) Ltd. 2007

About the Spinal and Biologics Business at MedtronicThe Spinal and Biologics business is based in Memphis, Tenn. It is the global leader in today's spine market and is committed to advancing the treatment of spinal conditions. The Spinal and Biologics business works with world-renowned surgeons, researchers and innovative partners to offer state-of-the-art products and technologies for neurological, orthopedic, dental and spinal conditions

X-STOP® IPD® System The X-STOP® Interspinous Process Decompression (IPD®) System is the first alternative to conventional spinal stenosis surgery proven to significantly improve symptom severity and physical function.1

Supraspinous Ligament

InterspinousLigament

של בן חייםRF-Dynamicsנחשפה הטכנולוגיה שפיתחה  הדפסת מאמר תגובותBioSearch מאת: 2010 בינואר 6

פרופ' , מקבוצת החברות שמנהל היזם הסדרתי RF-Dynamicsחברת , מפתחת תנור המבוסס על גלי רדיו, בטכנולוגיה שלמה בן חיים

המשמשת גם להפשרת רקמות שהוקפאו או איברים להשתלה. גלי הרדיו לחממם פריט מזון מסוים באופן אחיד, ממוקד ובעשירית מסוגלים

הנדרש לחימום במיקרוגל ביתי רגיל. כך פורסם ב"כלכליסט".מהזמן של פריטים חימום סלקטיבייישום הטכנולוגיה לחימום מזון מאפשר

שונים בצלחת אחת, בטמפרטורות שונות. עד עתה נשמר הפיתוח בסוד. בבקשת הפטנט שהגישו בספטמבר האחרון שלמה בן חיים, מנכ"ל

ומספר עובדים בחברה, נכתב בין היתר: ערן בן שמואלהחברה "המכשיר יכול להפשיר באופן סלקטיבי רק חלק מהפריט, למשל חלק

מפרוסת בשר. את שאר הפרוסה אפשר באותו זמן לקרר באמצעות אלמנט של הקפאה".

התנור אמור להתחרות בתנור המיקרוגל הביתי, המחמם את הפריטים שמוכנסים בו באופן לא אחיד, ומשתמש באנרגיה רבה.

הגיעו נציגיהן של חברות ציוד RF-Dynamicsככל הידוע, למשרדי בישול ומוצרי מטבח עולמיות, כדי לבחון אפשרות לרכוש את

שמעון הטכנולוגיה. לאחרונה ביקר בה בחשאי גם נשיא המדינה.פרס

הוביל בשנים האחרונות כמה אקזיטים, בהם של פרופ' בן חיים , בסכום כולל של כמיליארד דולר. יסק־או־טק ודביוסנסהחברות , שותפו הוותיק לעסקים, הוא מנהלה של חברת לואיס פליחד עם

, המשקיעה בחברות סטארט־אפ רבות בתחום מדינווסטהאחזקות הציוד הרפואי.

הושקעו עד כה מספר מיליוני דולרים על ידי בן RF-Dynamicsב- 50חיים, מדינווסט ופל. החברה ממוקמת בכפר סבא ומעסיקה כ־

עובדים.

12

תחום עסקי

צרכים רצונות דרישות

שוק

תועלת-סיפוק

רעיון,מוצר,שרות

החלפה- יחסים

מושגי יסוד בשיווק

13

TIME OF ADOPTION OF INNOVATION (Roberts)

TECHNOLOGY ADOPTION LIFE CYCLE

2.5% 13.5% 34% 34% 16%

Innovators Early Early Majority Late Majority Laggards

Adopters

PragmatistVisionary Conservative

14

ESTIMATING DEMAND

Concept Test

Focus Group

Creative Workshop (questionnaires

AT&T Data Terminal Market

Prototype Test

Group Test

Xerox Docutech System Program, 25

Boeing with United Airlines Jet 777)

Microsoft Windows 95-25000 tests

Opinions of Experts

Discussion Group – Synthesis of opinions - Delphi Method

15

Easy of use benefit

Social-personal benefit

16

PRODUCT LIFE CYCLE (PLC)

Introduction Growth Mature Decline

Sales

Time

17

INPUT & INDUSTRY-DEMAND STRUCTURE BEHIND PLC

Introduction Growth Mature 1Mature 2

TechnologyFrequent Changes

Additional Changes in Production

Few Changes

Periodic Changes

Capital Intensity

LowHigh, Obsolescence

High High

Critical

Manpower

InventorManagement

Finance

Industry Structure

Techn. Barrier

MergersCompetition

Demand Structure

Specialized

Innovators

Early Majority

Late Majority

18

19

20

Sales

TimeSubstitution

Sales

TimeExtension

Sales

TimeTechnology Change

Sales

TimeMature Extension

21

TECHNOLOGY LIFE CYCLE (Trajectory of Technological Improvement)

Time

Application’s

Efficiency

Man hours invested

Emergence Growth Maturity Decline

22

TECHNOLOGY LIFE CYCLE & TECHNOLOGY CHANGE(Disruptive Technology)

t0 t1 T

Application’s

Efficiency

e1

e0

T1

Man hours invested/Years

T2

23

READ-WRITE HEAD TECHNOLOGY(Component –Architecture Disc Drive)

t0 t1 T

Recording Density

e1

e0

T1: Ferrite head technology

Man hours invested/Years

T3: Magneto resistive head

Smaller, more precise dimensions

T2: Thin film head

24

S CURVES FOR FERRITE/OXYDE TECHNOLOGIES FUJITSU-CDC

t0 t1 T

Area Density (millions of bits/square inch)

10

CDC

Fujitsu

Years

30

2

25

TECHNOLOGY CLASSIFICATION

Basic TechnologyCurrent in the field

CAD/CAM Aeronautics

Titanium “

Key TechnologySpecific to the firm, patent

CAD/CAM Automobile

Titanium Submarines

Emerging TechnologyBeginning implementation

stage

CAD/CAM Textiles(Benetton)

Titanium Watches,Prosthesis

26

TECHNOLOGY PORTFOLIO

Degree of Control

Competitive Impact

Developed

High

Adapted

Medium

Borrowed

High

High

Medium

Low

27

TECHNOLOGY POLICY AND COMPETITIVE STRATEGIES

Cost leadership

DifferentiationFocus segment Cost –diff

Product technology change

Reduce cost, efficiency

Quality, features

Design-performance

Process technology change

Economies of scale

Quality, fasterTune production-delivery

Porter M.E. “The Technological Dimension of Competitive Strategy” Research on Technological Innovation Management and Policy 1 (1983) pp 1-33

28

LINEAR MODELS OF INNOVATION

Science and Technological Needs of the

Technology Developments Market

R&D

Manufacturing

Marketing

Market

Technology PushStarting Point

29

Market(ing) ? Pull

Market

Scientific Knowledge Technology

Concept

Product Development

Production

Starting Point

30

TECHNOLOGY PUSH NEED PULL COMPARED

Technology push Start with what easily

can be researched Address the need of

the atypical user Get locked into one

technical solution

Need Pull Looks at needs that

are easily identified Continue to change

the definition of the opportunity

Lack a champion a true believer

31

SIMULTANEOUS COUPLING MODEL

Manufacturing

R&D Marketing

32

An Overview of Innovation in Landau and Rosenberg (Eds )The Positive Sum Strategy Washington DC National Academy of Sciences

33

INTERACTIVE MODEL OF INNOVATION

R&D Marketing

Product

Manufacturing

Market Knowledge

Scientific & Technological

Knowledge

Idea Innovation

Technology Push

Marketing Pull

Market

34

NETWORK MODEL

Freeman C. (1992) Network of Innovators, a synthesis of research issues in Freeman C, The Economics of Hope London Pinter 93-120

35

R&D

Finance

Production Marketing

Internal Environment

External Environment

36

INNOVATION STRATEGIES

Miles & Snow(78) Defenders, Prospectors, Analyzers Freeman(82) Offensive, Defensive, Imitative,

Dependent, Traditional Opportunistic Ettlie and Bridges(87) Aggressive technology policy

Long term investment in technological solution

Planning human resources for it

Openness the environment

Structural adaptation Kerin et al (92) First movers

Ettlie J.E.(2006) Managing Innovation Elsevier p 111-114

37

CELL PHONES FORECASTING FOR AT&T

Cell phone quantity

1984 1994 2000 Time

17 Millions

900,000

38Tidd J. Bessant J Managing innovation John Wiley 2006 p 287

39

40

FROM MAINSTREAM MARKET TO MARKET/TECHNOLOGY INNOVATION AND BACK

Requested speed and total capacity to 8-12 disc drive : Control Data

3.5 inch Disc Drive: Conner and Quantum

5.25 inch : Seagate, Tandon, Miniscribe 8-12 inch using 5.25 and 3.5 inch

architecture

41

R&D GENERATIONS

1st Generation :• Unbounded search for

scientific breakthrough• Leap from current to new

knowledge• Breakthrough inventions

2nd Generation• Applicability• Project management• Fusion innovations

42

R&D GENERATIONS

3th R&D Generation • Marketing role:

determine customer needs

• R&D role: supplies technology

• Continuous innovation: experience, expectations walls Fig. 1.7

4th R&D Generation• Mutually dependent

learning• Market evolution:

Competitive architecture• Broader mission for R&D• Organizational capability• Fusion & Discontinuous

Innovation: beyond the walls. Fig. 1.8, 1.9, 1.10

43

3rd GENERATION & CONTINUOUS INNOVATION

Market Knowledge

Scientific & Technical Knowledge

Wall of Experience

Wall of Expectations

Continuous Innovation

Pc, Mc, Tc

44

DISCONTINUOUS INNOVATION

Market Knowledge

Scientific & Technical Knowledge

Wall of Experience

Wall of Expectations

McTn

Mn TnMn, Tc

Pc Tc Mc

45

FUSION INNOVATION

Market Knowledge

Scientific & Technical Knowledge

Wall of Experience

Wall of Expectations

Market Fusion

Technology Fusion

Market & Technology Fusion

46

MARKET & TECHNOLOGY FUSION

Market Fusion Milk + Juice Drinks Cheese + others for

breakfast Printer+

Scanner+Fax for new applications

Telephone + TV Cell phone + Portable

Computer

Technology Fusion Optics-Electronics-

Microscope Fiber optic + laser Laser + Audio Composite Materials

47

Market Disruptive Innovation

Corning Glass Fiber optics Apple IBM PC

3 M Post it

Seagate-Conner 3.5 HDD

Product Disruptive Innovation

Sony-Philips Compact Disk

Nike : Tc: nylon, Tn: Max Air, Max chock

Embedded Technology Disruptive Innovation

Raytheon Microwave

Laser, Bell Labs

Manufacturing Technology Disruptive Innovation

IKEA – LACK table and Honeycomb, Ogla and gas

48

Market Knowledge

Scientific & Technical Knowledge

Wall of Experience

Wall of Expectations

Target zone: new technology, latent need

49

PERFORMANCE IMPROVEMENT INDUSTRY VERSUS CUSTOMER

Product performance

Time

Low-end markets

High-end markets

Disruptive technology

Trajectories –customer needs performance

A

B

50

ESSENTIAL ELEMENTS OF THE THEORY

Pace of technological progress outstrips the ability of customers in any given tier of the market to make effective use of the improved versions of a product

Companies earn attractive profit by targeting customers in the more demanding tier

Sustaining innovation provides higher earning Industry Incumbents always end up on top Disruptive technologies appeal to customers who

are unatractive to incumbents Probability to succeed 10 times more with

disruptive technology

51

Strategies for creating new disruptive growth businesses

Creating a new market as a base of disruption Test 1 Lack of money or skills of potential customers

PC Test 2 Customers will welcome a simple product Palm Test 3 More easily and effectively digital camera violate

2 (not technology simple), 1(not cheap enough)

Disrupting the business model Test 1 Are prevailing products more than good enough Insulin Test 2 Can you create a different business model cost

structure discount retailers Xerox HP printers

52

THE INNOVATION MAP

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

M

TP

Tc

Tn

Pc

Pn

Mn

Mc Mf

Mfn

Mfc

The Firm/ Product

53

`

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

M

T P

Tc

Tn

Pc

Pn

Mn

Mc

KNOWLEDGE AXES AND GATE KEEPERS

Knowledge axis Gate Keeper

Mfn

Mfc Mf

54

The smart people in our field work for us

To profit from R&D we must discover it, develop it and ship it ourselves

If we discover it ourselves we will get it first to market

If we create the most and the best ideas in the industry, we will win

We need to work with smart people inside and outside our company

External R&D can create significant value

We don’t have to originate the research to profit from it

If we make the best use of internal and external ideas, we will win

CLOSED – OPEN INNOVATION

Source: Chesbrough H. Open Innovation Harvard Business School 2006

58

Nuclear reactors, mainframe computer

Low labor mobility Large internal ideas Little VC Few weak start up University unimportant

PC’s Movies Many external idea High labor mobility Active VC Numerous start ups Universities important

CLOSED – OPEN INNOVATION

Source: Chesbrough H. Open Innovation Harvard Business School 2006

Connect and Develop: Inside Procter & Gamble’s New Model for Innovation

by Larry Huston and Nabil Sakkab

From R&D to C&D: Connect and Develop innovation model

R&D organization—from 7,500 people inside to 7,500 plus 1.5 million outside, with a permeable boundary between them.

Today, more than 35% of our new products in market have elements that originated from outside P&G, up from about 15% in 2000

Connect and Develop: Inside Procter & Gamble’s New Model for Innovation

by Larry Huston and Nabil Sakkab

45% of the initiatives in our product development portfolio have key elements that were discovered externally

Five years after the company’s stock collapse in 2000, we have doubled our share price and have a portfolio of 22 billion-dollar brands

Connect and Develop: Inside Procter & Gamble’s New Model for Innovation

by Larry Huston and Nabil Sakkab

Top ten consumer needs list for each business and one for the company overall

Adjacencies: new products or concepts that can help us take advantage of existing brand equity. Baby care

Technology game boards. Which technologies do we want to acquire to help us better compete with rivals?” and “Of those that we already own, which do we want to license, sell, or codevelop further?”

Connect and Develop: Inside Procter & Gamble’s New Model for Innovation

by Larry Huston and Nabil Sakkab How to Network

Proprietary networks :

70 technology entrepreneurs based around the world

Top 15 suppliers have an estimated combined R&D staff of 50,000.“cocreation,”.

Open networks

NineSigma: science and technology problems

InnoCentive: narrowly defined scientific problems .

YourEncore: 800 retired scientists and engineer

Yet2.com: intellectual property exchange

70

FIRM-MARKET LIFE CYCLE & INNOVATION STRATEGY

Market Phase

Firm Stage

Emerging Growing Mature

Start up Discontinuous Market & Technology

Discontinuous Product

Discontinuous Product

InternationalDiscontinuous Product & Technology

Current Improvement

Discontinuous Market and Product

GlobalCurrent Improvement

Current Improvement

Discontinuous Manufacturing Product & Technology

71

FIRM-MARKET LIFE CYCLE & INNOVATION STRATEGY

Market Phase

Firm Stage

Emerging Growing Mature

Start up FunctionalityFunctionalityFunctionality

InternationalReliabilityConvenienceFunctionality

GlobalReliabilityReliabilityConvenience Functionality

72

MARKET & FIRM LIFE CYCLE

Market Phase

Targeted Value

Start up International Global

Functionality

Reliability

Convenience

Price

73

ORGANIZATIONAL ARCHITECTURE

Old Organization

• Lack of Integration between Knowledge in each Dpt.

• Difficulty of Involving many people in Discussion

• Middle Managers: Filters & Diffusers of Commands

New Organization

• Employee Competence

• Internal Structure-Company Flow

• External Structure-Customer Interaction

• Middle Managers: Creating new Knowledge

74

THE OLD ORGANIZATION

C O OC h ie f O p era tion s

O ffice r

C FOC h ie f F in an c ia l

O ffice r

C T OC h ie f Tech n o log y

O ffice r

C IOC h ie f In fo rm ation

O ffice r

R & D Ma rketingMa nufa cturing

H um a n R esourcesSa les

C EOC h ie f E xecu tive O ffice r

75

RESTRUCTURING ACTIVITIES

Innovation

Knowledge

Operations

Information Flow

Short Run Long Run

76

THE NEW ORGANIZATION

CEOChef Executive

Officer CKOChief Knowledge

Officer

CINOChief Innovation

Officer

COOChief Operations

Officer

77

OPERATING,INNOVATION & KNOWLEDGE POWER

Chief Operating Officer - COO

External Structure

Continuous Innovation:

Product Dvt, Manufacturing, Sales, Short term

Chief Innovation Officer -CINO

Internal Structure

Discontinuous Innovation:

Technology, Marketing, Long term

Chief Knowledge Officer-CKO

Employee Competence

Assets Management:

Finance, Knowledge, Human resource