“Fast Track to Commercialization”

… how to discover your One Million Dollar Business (1mdb)

WORKSHOP 1 : TECHNOLOGY ANALYSISStephen Ong

Visiting Professor, Shenzhen University, PRCAcademic Fellow in Entrepreneurship & Innovation, Anglia Ruskin University, UK

21 December 2016

“Is your product new, unique, and

technically feasible?”

Innovation SPACE™ Technology Commercialization ModelPhase 1 : CONCEPT

Stage 1 : DISCOVERYStep 1 : TECHNOLOGY ANALYSIS

3

Today’s Agenda• 9:00 Introduction• 10:00 Technology Commercialisation Model• 11:00 Technical Attributes vs Value Proposition• 12:00 Innovation Mapping• 13:00 Have an AMAZON Lunch• 14:00 Innovation Projects Grid• 16:00 Conclusion

The Technology Commercialisation Model

SCIENCE & TECHNOLOGY MARKET ENTERPRISE / BUSINESS

CONCEPT PHASE

STAGE 1 : DISCOVERY Step 1 Technology Analysis

Step 2Market Needs Analysis

Step 3Venture Assessment

CREATION PHASE

STAGE 2 : DO-ABILITY Step 4Technical Feasibility

Step 5Market Study

Step 6Economic Feasibility

STAGE 3 : DESIGN Step 7Engineering Prototype /

Pilot Plant

Step 8Strategic Marketing Plan

Step 9Strategic Business Plan

STAGE 4 : DEPLOYMENT Step 10Pre-production Prototype

Step 11Market Validation

Step 12Business Start-Up

COMMERCIAL PHASE

STAGE 5 : DELIVERY Step 13Production

Step 14Sales & Distribution

Step 15Business Growth

STAGE 6 : DOMINATION Step 16Production Support

Step 17Market Diversification

Step 18Business Maturity

Step 1: Technology AnalysisIs this product new, unique, and technically feasible? • The first activity to testing these new venture

assumptions is to investigate the technical validity of the product. This step is called the Technology Analysis. To have commercial value, the product or service should solve a real world problem better, cheaper, or faster than existing solutions, and the feature advantages of the new product must be powerfully better than existing ones. You should remember that existing products and services are often supported by huge advertising budgets, aggressive marketing strategies, and fierce customer loyalty. It is seldom enough for an incremental improvement in a product to displace a well-entrenched product already in the market. Also, remember that product benefits take precedence over product features. Customers buy electric drills to make holes, not to get fancy cases.The purpose of this activity is to assess the intellectual property status of any technology involved in the product. This involves determining whether the product or any of its components are covered by intellectual property protection such as patents or copyrights.

• Definition: The process of determining that the physical features of the concept are potentially achievable and operational.

• Objective: The objectives of the technical concept analysis step are to succinctly define the concept, to assess the implementation potential of the technical aspects of the concept, and establish the uniqueness of the technical concept.

• Product: The product of this activity is a verbal description, schematic, formula, conceptual model or paper design, delineating the main features of the technical concept.

• Technical Activities: During the technical concept analysis step the following activities must be completed:

• Define the concept fully;• Demonstrate that performance assumptions are viable;• Assess critical barriers to production;• Survey the state-of-the-art of the technology;• Estimate the working models costs.

• Milestones: Provisional patent, patent, copyright, patent scan, license agreement

• Funding Sources: Personal finances, MOSTI (Technofund, Innofund)

• Technical Information: The technical concept analysis will usually result in knowledge about the features of the technical concept, performance expectations, prior art, and other similar or related research and development activities.

• Key Questions :

• Have you completed a technology database search?Have you researched related patents or copyrights?Have you researched technical journals and trade magazines?Have you discussed the topic with experts?Do you know the current state-of-the-art competitive technologies?Have you selected the technologies for the application?Have you determined the advantages of this technology?Have you determined the risks for this technology?Do the benefits of this technology or product offer significant advantages over the existing solution?

KEY QUESTIONS1. Have you completed a technology database search?2. Have you researched related patents or copyrights?3. Have you researched technical journals and trade magazines?4. Have you discussed the topic with experts?5. Do you know the current state-of-the-art competitive technologies?6. Have you selected the technologies for the application?7. Have you determined the advantages of this technology?8. Have you determined the risks for this technology?9. Do the benefits of this technology or product offer significant advantages

over the existing solution?

THE INNOVATOR’S DELUSION

1. “Our technology is so new that we have no competitors”2. “The new technology being commercialized by our competitors

will not pose a large threat”3. “That competitor is in a different industry, and its strategies won’t

affect my business.”

“Our technology is so new that we have no competitors”

“The new technology being commercialized by our competitors will not pose a large threat”

“That competitor is in a different industry, and its strategies won’t affect my business.”

Who were the Existing Solutions?

Value Proposition Canvas

Example : Taxi SmartPhone vs GRABCar

TECHNOLOGY PRODUCT ATTRIBUTES

Existing Solutions Global Market Leader

Innovation Leader Specialty Leader Local Market Leader

Attributes

1.

2.

3.

4.

5.

6.

7.

8.

Existing Solution :

BENEFITS / GAINS (+)1.

2.

3.

ISSUES /PAINS (-)1.

2.

3.

Have an Amazon lunch …

WHERE ARE YOU ? … on the CURVE or on the next WAVE ?

THE CURRENT STATE OF ART OF TECHNOLOGY

The NEW PRODUCT LIFE CYCLE

THE S-CURVE OF TECHNOLOGY ADOPTION

HOW LONG WILL IT TAKE?

While you were sleeping … DISCONTINUOUS CURVE becomes DISRUPTIVE

OLD INDUSTRY HIGH TECH INDUSTRY

… and the next WAVE ?

Are you too late? Industries can decline …

INNOVATION MAP

INNOVATION MAP : SMARTPHONE WAR BEGINS 2007

-5 -4 -3 -2 -1 0 1 2 3 4 5

-5

-4

-3

-2

-1

0

1

2

3

4

5

INNOVATION STRATEGY

BUSINESS MODEL CHANGE

TECH

NO

LOGY

CAA

PABI

LITY

CH

ANGE

DISRUPTIVE“New WayAny Job”

GAME CHANGER“One WayAny Job”

INCREMENTAL“Better WaySame Job”

SUSTAINING“Any Way

More Jobs”

Who are the Innovators?

INNOVATION MAP SCORECARD : ATTRIBUTES

TECHNOLOGY CAPABILITY (+/-)• Attract top talent• Use of specialized machines• Expert skills to deliver• Own cluster of patents around

technology, methodology or process• Collaborate with

suppliers/customers/partners to develop new products

BUSINESS MODEL (+/-)• Different ways of selling• Higher gross margins• Lower variable or fixed costs• Multiple revenue streams from

different customer segments• Fast cashflow generation or low

working capital needs

Existing Solutions Global Market Leader Innovation Leader Specialty Leader Local Market LeaderTECHNOLOGY CAPABILITIES

Attributes

1. Ability to attract top talent

2. Use of specialized equipment

3. Expert skills in delivery

4. Own cluster of patents in technology

5. Extensive external collaboration to develop new products

TOTAL SCORE (x/25)

Existing Solutions Global Market Leader

Innovation Leader Specialty Leader Local Market Leader

BUSINESS MODEL Attributes

1. Different ways of selling2. Higher gross margins3. Lower variable or fixed costs4. Multiple revenue streams from different customer segments5. Fast cashflow generation or low working capital needs

TOTAL SCORE (x/25)

INNOVATION MAP SCORECARD : CALCULATION

COMPETITOR ATTRIBUTES

TECHNOLOGY CAPABILITY

(X AXIS)

BUSINESS MODEL(Y AXIS)

MARKET SHARE(SIZE)

TOTAL RAW SCORE (s)

Maximum : 25Minimum : 0

Maximum : 25Minimum : 0

m%

XY PLOT COORDINATES :

[ s*0.4 – 5 ]Maximum : 5Minimum : -5

Maximum : 5Minimum : -5

[m%*10]

YOUR INNOVATION MAP

-5 -4 -3 -2 -1 0 1 2 3 4 5

-5

-4

-3

-2

-1

0

1

2

3

4

5

INNOVATION STRATEGY

BUSINESS MODEL (Existing/New)

TECH

NO

LOGY

CAA

PABI

LITY

(E

xisti

ng/N

ew)

DISRUPTIVE“New WayAny Job”

GAME CHANGER“One WayAny Job”

INCREMENTAL“Better WaySame Job”

SUSTAINING“Any Way

More Jobs”

EXERCISE : INNOVATION PROJECTS GRID

INNOVATION ATTRACTIVENESS VS EFFORT REQUIRED

Innovation Project Score Grid

HIGH ATTRACTIVENESSLOW EFFORT

HIGH ATTRACTIVENESSMEDIUM EFFORT

HIGH ATTRACTIVENESSHIGH EFFORT

MEDIUM ATTRACTIVENESSLOW EFFORT

MEDIUM ATTRACTIVENESSMEDIUM EFFORT

MEDIUM ATTRACTIVENESSHIGH EFFORT

LOW ATTRACTIVENESSLOW EFFORT

LOW ATTRACTIVENESSMEDIUM EFFORT

LOW ATTRACTIVENESSHIGH EFFORT

What’s Next for the Smartphone?

What to expect from MARKET LEADERS