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The U.S. Civilian Research and Development Foundation (CRDF)Industry Partner Development Program (PDP)
Your Partner for Your Partner for Ventures Ventures in Science and in Science and TechnologyTechnologyBusiness CaseInnovation Business Series
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Business Communication Mistakes
• Talking first (in meeting)• Too much information• Addressing the wrong issues• Political statements• Irrelevant commentary
Personal passionate issues
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Primary Purpose?
• Inform?• Explain?• Reference?• Demonstrate?• Convince?• Encourage Action
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What Action & Who?
What action? Schedule a meeting Convince superior Review a demo Explore a business
relationship
Who should take action? Decision-maker Trusted advisor Financial officer
Why? They need (not want)
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Determine what they NEED?
• Listen, don’t talk• Ask questions:
Primary business goal?
Current situation? Next steps? Top Challenges? Where technology
might help?
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Business Goals versus Desires
• Test business goals: Ask them to define their
success? What measures? Test their answers:
• Successful? if ‘a’, but not ‘b’?
• Determine most important and realistic goals
• Customize your pitch
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Determine Decision Makers
• Who makes business decisions?• Who takes actions?• Who makes financial decisions?• Who makes technical
recommendations?• What is the relationship between
the individuals?• What is the last decision and how
was that made?
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Ready to Start? (Checklist)
1. What they need2. How you can help3. Who is the decision-maker (action
taker/target)4. What action you desire5. What you must convince6. Your argument
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Business Argument
• Credibility Who are you What are you there to
do Why they should care
• The issue (confirm?)• Solution (summary)• Key benefits• Competitive position• Achievable results• What you need
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Forms of Argument Needed
• Statement (Pitch) 5 to 30 seconds
• Presentation 5 to 10 slides
• Proposal 1 to 2 pages Appendix in RARE
cases
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Target’s Language and Mindset
• Terms Business advantages Business costs
• Goals Lower costs Higher profit margin More sales Better market position Lower product returns Lower customer
service costs Etc.
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Presentation vs. Proposal
Presentation(1 slide each)• Title slide• Business issue• Technical issue• Technical solution
Summary: key aspects
• Business benefits• Market & competitors• ROI (time and money)• Next step
Proposal
Fact box Contact info, project
name, proposition, funding, schedule, return
• Proposition statement• Diagrams, charts, tables• Sections:
Proposition Issue and solution Market & competition Sales & distribution Management plan Projections ROI (time and money)
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Length & Style
• Short and direct as possible• Focus on 1 key aspect• One good argument is stronger
than several good arguments• Each section should NOT be equal
length• Fewer words make a bigger impact• Stay away from details and
supporting information• Use quotes and convincing statistics• Use common language
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Examples - Proposition
With all competitors meeting standards, the product has become a commodity. Using a new standards-conforming algorithm, already implemented on a common microprocessor, twice as much can be processed on the same hardware.
As a result, manufacturers can produce the same product at a net 37% increase in margin or double the performance at the same price.
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market &
competitors6. ROI7. Next step
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Examples - Market
Structure, players, market drivers, dynamic, opportunities, threats:The market for the hardware is dominated by manufacturers and integrators . Manufacturers produce their own cards and Integrators purchase cards from any of the top 9 card suppliers. The market driver is price...
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & competitors6. ROI7. Next step
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Examples - Competition
DX Group, SignalCorp, and Motorola are also developing new algorithms. DX Group’s solution requires a more expensive microprocessor.
The SignalCorp algorithm has not yet been implemented in real-time. The Motorola solution saves only 39%, short of the 50% required to reduce hardware costs.
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & competitors6. ROI7. Next step
0
10
20
30
40
50
60
"YOU"
DSP Group
Motorola
SignalCorp
Common Mistake:• No competitors• “Only solution”
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Examples – Return on Investment
The total cost of labor and material is $1,500. At the current levels of production, the profit margin increases by $100 per unit for a net increase of $7,500 per year. That’s a 500% return on investment in the first year only.
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & Competitors6. ROI7. Next step
Item No. Amt Subtotal
Labor & materials 150
$100 $1500
Increased profits 750
$100 $7500
Return on Investment 500%
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Examples – Next Step
Meetings: (Presentation)1. Engineering Manager – Demonstration2. Finance Manager – Economic case3. Business Manager – Project definition
Actions: (Proposal)
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & Competitors6. ROI7. Next step
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Examples – Sales & Distribution(Business Plan Only)
Direct Sales, PartnersWe plan to sell directly to manufacturers. There are only 15 sizeable manufacturers and our technology is needed enough to gain the attention of their R&D managers. Integrators do not purchase technology and card vendors are not structured to work with scientists. Our chip partners will help us get meetings with the R&D managers at each Manufacturer.
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & competitors6. Sales & distribution7. Projections8. Management Plan9. ROI10. Next step
* Business Plan only
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Examples – Projections(Business Plan Only)
Bottom-up Estimates:We plan to close Aldec, Marzed, and Pixel, or similar manufacturers in the first 9 months. Each quarter thereafter, we expect to close deals with one more manufacturer using two sales people…
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & competitors6. Sales & distribution7. Projections8. Management Plan9. ROI10. Next step
* Business Plan only
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Examples – Projections (Mistakes)(Business Plan Only)
Top Down: (Mistake)The market for the software is $10M and we will sell 5% of the market or $500,000.
1. Business issue2. Technical issue3. Technical solution4. Business benefits5. Market & competitors6. Sales & distribution7. Projections8. Management Plan9. ROI10. Next step
* Business Plan only
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Business Statement (Pitch)
1. My organization has developed a better solution for manufacturers.
2. Partnered with Brand Corporation, my team has produced components that reduce the cost by 50%.
3. We plan to direct sell the solution to manufacturers.
4. I am a scientist with the Institute of Semiconductor Physics in Baku, Azerbaijan.
5. We have interested customers and are looking for funding to produce the first 10 units.
6. We can provide a 5 times return in 18 months.
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Q&A: Business Case
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CRDF Contact Information
U.S. Civilian Research & Development Foundation (CRDF)1530 Wilson Boulevard, Suite 300Arlington, VA 22209 USA
[email protected] General CRDF enquiries [email protected] Partner Development Program (business questions)[email protected] Travel Grant [email protected] First Steps to Market Grants (new partnerships)[email protected] Next Steps to Market Grants (commercial
partnerships)
Website: www.crdf.org
Tel: +1 (703) 526-9720
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