Technology Venturing:The triangulation of value creation

Ing. Matthijs H.M. Hammer M.Sc.Senior lecturer Innovative EntrepreneurshipSchool of Business Creation & EntrepreneurshipPhD ResearcherFaculty of Product Innovation Management

Workshop FONA, 25 - 27 January 2016

Introduction

BackgroundChemical Environmental Laboratory sciences, Quality Management

ExperienceConsulting company, Research centre of coating & surface technology

Saxion, university of applied sciences, Senior lecturer Innovative Entrepreneurship, School of business, building & technology

Delft university of technology, PhD Researcher, Industrial Design Engineering, Product Innovation Management

Venturelab Twente, venture coach

European Council for Small Business and entrepreneurship, Country vice president for The Netherlands

Menu

• Introduction• Innovation processes• Triangulation of value creation• Technology venturing• How to do it• Summary

Models of innovation

Product innovation

(Roozenburg and Eekels, 1995)

Product innovation

Main design principle is to interact:• Internal: within the company (departments)• External: with stakeholders outside the company (users, market)

Strategic situation of the company

Internal analysis External analysis

Generating search ideas

(Roozenburg and Eekels, 1995)

Product innovation

Five design-steps for a product life cycle:

1. Product Use

2. Strategy Formulation

3. Design Brief Formulation,

4. Development,

5. Market Introduction.

(Roozenburg and Eekels, 1995)

Delft Innovation Model

(Buijs and Valkenburg, 2005, 3rd ed.)

Delft Innovation Model

Fuzzy Front End of innovation New Product Development Muddy Back End Product Use

(Buijs and Valkenburg, 2005, 3rd ed.)

Researchers

Company

Stakeholders

Triple Helix co-operation

3 Anchors of co-operation

Triangulation of value creation

R&D department

Marketing / Salesdepartment

? • In business, R&D and Marketing/Sales is standard

• What about relation (potential values) between Technology and Society?

• Who is in charge?

Innovation hero

Joseph Alois Schumpeter (1883 – 1950)• "creative destruction" in economics• Business Cycles; Without innovation no new

wave: hero is the entrepreneur

Business cycles, 1939

“Creative destruction”

Activity

IDIVIDUAL ASSIGNMENT

DO NOT COOPERATE

• Take a blank sheet of paper.• Take a pencil.

• Draw an entrepreneur.

Results

>99% human being

Where from: >80% Man

Where from: >80% Suite

Where from: >80% Tie

Where from: >80% Smiling / success

Examples

Business Venturing Model

Market information

Sales

Market is dominant

Technology Venturing Model

Market information

Sales

TensionTechnology is dominant

Entrepreneurial process

VALU

EC

REA

TIO

N

Opportunity recognition

Opportunity preparation

Opportunity exploitation

Value creation process (Shane & Venkataraman, 2000)

Example

See possibilities Tackle opportunities

Know where to find it.

Successful application

test

Entrepreneurial dynamics

Risk, Return and Resources

Affordable Loss. Calculate downside potential and risk no more than you can afford to lose.

Expected Return. Calculate upsidePotential and pursue the(risk adjusted) best opportunity.

Risk, Return and Resources

Alternative Own capital Loan bank investment Expected return

1 40 0 35 50

Example

2 40 10 50 75

Alternative 2

Alternative 1

Partnership. Build your “future” together with customers, suppliers and even prospective

competitors.

Attitude toward others

Competition. Set up transactionalrelationships with customers and

suppliers.

Surprise

• Avoid Surprises.

• Leverage Surprises.Surprises can present new opportunities.

Business model canvas

(Osterwalder, 2004)

Important issues

Issues to considerate before venturing technology:• Intellectual Property (IP)• Starting Capital• Launching Customer • Venture team• Competition clause

Summary

Take a way's:1. (Nano-) Technology Venturing is more complex than selling a product to the

market.2. Venturing technology is strongly related to innovation.3. The innovation hero is called an entrepreneur.4. Dynamics of entrepreneurship deferens from process managing dynamics.5. Technology Venturing is part of hard business reality: IP, Venture team and

Venture Capital are forgotten to easy.

Thank you for your attention!