Where should you be now?Where should you be now?

Met with inventor to understand facts about the Met with inventor to understand facts about the invention and development statusinvention and development status

Completed “first pass” market study- Identified Completed “first pass” market study- Identified industry trends, potential customers, competitors, industry trends, potential customers, competitors, and substitutesand substitutes

Discussed various commercialization options with Discussed various commercialization options with your group and mentor- identified two or three your group and mentor- identified two or three possible approachespossible approaches

2009 Class Schedule- Technology Commercialization BA468

1 2 3 4 5 6 7 8 9 10Mon Wed Mon Wed Wed Mon Wed Mon Wed Mon5-Jan 7-Jan 12-Jan 14-Jan 21-Jan 26-Jan 28-Jan 2-Feb 4-Feb 9-Feb

Class Intro (mentors)IP and Opportunity Assessment

* * Inventor PresentationsSelect Patents & Form Teams

Commercialization OptionsLB,MM CW, TBD Databases and Marketing Surveys

SWOT & Genl ApproachThe Pitch

HP TBD Corp Tech Commercialization

11 12 13 14 15 16 17 18 19Wed Mon Wed Mon Wed Mon Wed Mon Wed

11-Feb 16-Feb 18-Feb 23-Feb 25-Feb 1-Mar 3-Mar 8-Mar 10-Mar

Timeline and MilestonesFinances and VC Expectations

BN Investor PerspectivePrepare Commercialization Plans

PG Entrepreneur PerspectivePresent Commercialization Plans

(meet w JT) ^ ^In class Portland BRTReviews Reviews

On deck…On deck…

Today-Today-Informal updates on brainstorm options (30’)Informal updates on brainstorm options (30’)

Discuss two or three top choicesDiscuss two or three top choices Status of market research, customer and inventor Status of market research, customer and inventor

interviewinterview Additional research neededAdditional research needed

SWOT analysis approach and example (30’)SWOT analysis approach and example (30’)Group work session (50’)Group work session (50’)

Assignment- SWOT and facts/assumptions presentation (in class, Wed- 2/4)

On deck (continued)On deck (continued)

Wed (2/4)Wed (2/4) Group presentations: SWOT analysis of commercialization Group presentations: SWOT analysis of commercialization

approach (60’)approach (60’) The elevator pitch (20’)The elevator pitch (20’) In class work on SWOT, elevator pitches (30’)In class work on SWOT, elevator pitches (30’)

Mon (2/9)Mon (2/9) Group presentation- elevator pitches (30’)Group presentation- elevator pitches (30’) Corporate Technology Commercialization processes (HP visitor)Corporate Technology Commercialization processes (HP visitor)

Assignments: Written SWOT analysis and facts/assumptions (due- Sat 2/7) Elevator pitch presentation (in class- Mon 2/9)

Selecting a Selecting a Commercialization Approach: Commercialization Approach:

SWOT Analysis SWOT Analysis

SWOT AnalysisSWOT Analysis

Often used in business environment to Often used in business environment to identify the best strategic approach identify the best strategic approach

Examines both positive/negative attributes Examines both positive/negative attributes and current/ potential future state and current/ potential future state

For your IP, use this tool to examine For your IP, use this tool to examine various options for commercializationvarious options for commercialization

SWOT ANALYSISSWOT ANALYSIS

StrengthsStrengths WeaknessesWeaknesses

OpportunitiesOpportunities ThreatsThreats

Positive Attributes Negative Attributes

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SWOT Analysis Assignment: SWOT Analysis Assignment: Commercialization OptionsCommercialization Options

1) 1) Document known facts & assumptionsDocument known facts & assumptions about the technology, about the technology, competition, and market entry from your research. Verify these with competition, and market entry from your research. Verify these with inventor, complete additional research as needed. inventor, complete additional research as needed.

2) 2) Select at least two different approachesSelect at least two different approaches to commercializing your to commercializing your invention- e.g. service model, different forms of product or positions invention- e.g. service model, different forms of product or positions in the value chainin the value chain Be creative- best performed as a “brainstorm” Be creative- best performed as a “brainstorm” Avoid pre-conceived notions of what is bestAvoid pre-conceived notions of what is best Don’t judge or eliminate possibilities until you have completed the Don’t judge or eliminate possibilities until you have completed the

exerciseexercise

3) 3) Perform SWOT Analysis Perform SWOT Analysis on at least two brainstormed on at least two brainstormed commercialization approaches commercialization approaches Use the facts and assumptions to support your SWOT analysisUse the facts and assumptions to support your SWOT analysis Identify the best commercialization approach from your analysisIdentify the best commercialization approach from your analysis

What sort of facts are important?What sort of facts are important?

Maturity of your technology:Maturity of your technology: idea> proof of concept>prototype>beta test> ready to rampidea> proof of concept>prototype>beta test> ready to ramp

Current protection of your IPCurrent protection of your IP Barriers to entry- competitors, regulations, etcBarriers to entry- competitors, regulations, etc Potential openings in the value chainPotential openings in the value chain Timing- is the market ready?Timing- is the market ready? Perceived customer value- will they buy?Perceived customer value- will they buy? Potential cost of entry: Potential cost of entry:

capital investment, research $ needed, marketing, distribution, staff levelscapital investment, research $ needed, marketing, distribution, staff levels

Profitability- clarity of path to make moneyProfitability- clarity of path to make money

Sample SWOT of Commercialization OptionsSample SWOT of Commercialization Options Bio-fuel Generating System- project from three years agoBio-fuel Generating System- project from three years ago

Sample Facts & Assumptions (examples only, some of these were Sample Facts & Assumptions (examples only, some of these were not actually correct…)not actually correct…)

Biofuels unit generates ethanol and “high purity” glycerin from canola Biofuels unit generates ethanol and “high purity” glycerin from canola seed at a rate of 18 gallons per ton and 4 gallons per ton respectivelyseed at a rate of 18 gallons per ton and 4 gallons per ton respectively

Market price for “high purity” glycerin is $8/gallonMarket price for “high purity” glycerin is $8/gallon Canola seed can be grown in Willamette valley- no regulations prohibit Canola seed can be grown in Willamette valley- no regulations prohibit

this this Technology is ready- a prototype could be available in 6 monthsTechnology is ready- a prototype could be available in 6 months Mature cost of system would be ~$10,000Mature cost of system would be ~$10,000 Biofuels unit could be operated by local farmers without assistanceBiofuels unit could be operated by local farmers without assistance Biofuels unit would require periodic servicing and cleaning by Biofuels unit would require periodic servicing and cleaning by

manufacturermanufacturer Waste product from biofuels unit is non-toxic and may be composted on Waste product from biofuels unit is non-toxic and may be composted on

sitesite Transport and distribution of glycerin requires a license, MSDS, and Transport and distribution of glycerin requires a license, MSDS, and

certification of puritycertification of purity ……

Sample Commercialization OptionsSample Commercialization Options

Product Model-Product Model- Sell biofuels unit to local canola growers. Sell biofuels unit to local canola growers. They sell glycerin to chemical distributors and service their own They sell glycerin to chemical distributors and service their own unitsunits

Product + Service Model-Product + Service Model- Sell biofuels unit to local Sell biofuels unit to local growers. Set up service to collect glycerin and perform periodic growers. Set up service to collect glycerin and perform periodic maintenance on unitsmaintenance on units

Service Model-Service Model- Set up regional centers for biofuels Set up regional centers for biofuels conversion with larger units and have growers bring canola to the conversion with larger units and have growers bring canola to the sites. Perform purity analysis at the center and sell glycerin to large sites. Perform purity analysis at the center and sell glycerin to large chemical distributors at markup. chemical distributors at markup.

Sample Commercialization Option SWOT AnalysisSample Commercialization Option SWOT AnalysisBio-fuel Generating System: Product + Service Option Bio-fuel Generating System: Product + Service Option

StrengthsStrengths Easily scalable for local growersEasily scalable for local growers Growers can use ethanol to reduce their own fuel costs, and reduce Growers can use ethanol to reduce their own fuel costs, and reduce

their sensitivity to sudden increases in price of diesel fueltheir sensitivity to sudden increases in price of diesel fuel Unit service and biofuels collection could occur at the same timeUnit service and biofuels collection could occur at the same time Glycerin collection, analysis, and distribution handled at collection Glycerin collection, analysis, and distribution handled at collection

centers. Less overhead for growerscenters. Less overhead for growers Two revenue streams for business- sale/service of units, and sale of Two revenue streams for business- sale/service of units, and sale of

glycerin to chemical distributors glycerin to chemical distributors

WeaknessesWeaknesses Would require additional infrastructure for servicing of unitsWould require additional infrastructure for servicing of units Transport of ethanol across state lines could be problematicTransport of ethanol across state lines could be problematic Requires large “up-front” capital investment to set up collection centersRequires large “up-front” capital investment to set up collection centers Profit model is very sensitive to the market price for glycerinProfit model is very sensitive to the market price for glycerin Investment is required before canola growers agree to grow this cropInvestment is required before canola growers agree to grow this crop

Sample Commercialization Option SWOT AnalysisSample Commercialization Option SWOT AnalysisBio-fuel Generating System: Product + Service Option Bio-fuel Generating System: Product + Service Option

(Continued)(Continued)

OpportunitiesOpportunities Similar product + service model could potentially be expanded to Similar product + service model could potentially be expanded to

include biofuels from other seed cropsinclude biofuels from other seed crops Potential “seed” funding from existing agricultural cooperatives- easier Potential “seed” funding from existing agricultural cooperatives- easier

to obtain for the product + service modelto obtain for the product + service model

ThreatsThreats Tax incentives for biofuel generation may not apply to large distributors Tax incentives for biofuel generation may not apply to large distributors

in product + service modelin product + service model If current diesel fuel costs decrease, local growers will not save money If current diesel fuel costs decrease, local growers will not save money

by using the ethanol they generate. by using the ethanol they generate. Another product is in development which would allow self-service units. Another product is in development which would allow self-service units.

Local growers may be reluctant to sign up for this product + service Local growers may be reluctant to sign up for this product + service model. model.

Assignment- SWOT Analysis for Assignment- SWOT Analysis for Commercializing your IPCommercializing your IP

Presentation: Presentation: At next class meeting: Wed, Feb At next class meeting: Wed, Feb 44thth report on your progress- report on your progress-

1) Facts & Assumptions1) Facts & Assumptions

2) Brainstorm list- all commercialization options considered2) Brainstorm list- all commercialization options considered

3) SWOT analysis of at least two options and chosen approach3) SWOT analysis of at least two options and chosen approach

Written Report Written Report (Due Sat, 2/7- midnight by e- (Due Sat, 2/7- midnight by e-mail)mail) Complete the exercise and provide a written summary Complete the exercise and provide a written summary

including the 3 aspects aboveincluding the 3 aspects above