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Innovation and Commercialization

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Presentation on theme: "Innovation and Commercialization"— Presentation transcript:

1 Innovation and Commercialization

2 Foundations of Technological Innovation
Innovation and invention differences Invention requires creativity Innovation requires a plan Improvement Driven by market shift Product, production, distribution

3 Sustaining v. Disruptive
Sustaining: improve on existing technologies, most often in performance Palm's PDA Disruptive: paradigm shifters – radically change the way we do things Internet Trial-and-error towards acceptance

4 Technology push v. Market-pull
Push: to advance the state of technology Sustaining or disruptive technologies Pull: designing products to meet a market need. Tools needed to gain market share

5 Evolutionary v. Revolutionary
Evolutionary: derives from previous innovation Innovation - planned improvements Revolutionary: no preceding technology Invention - creativity

6 Why Companies Have Failed with Disruptive Technologies (from the research of Clayton Christiansen, Harvard) They listened to their customers Customers cannot fathom technologies Focused on quality Trial-and-error acceptance Studied market trends Technology creates new markets Spent money on innovation Better mouse trap is not disruptive technology

7 Clayton Christiansen, Harvard, 1997
Good management was the most powerful reason they failed to stay on top Clayton Christiansen, Harvard, 1997

8 Fighting Back Resource dependence Small markets for disruptive tech
Create independent research arm Small markets for disruptive tech Give commercialization responsibility to a small firm in the market Can’t analyze markets that don’t exist Learn what needs to be known Technology Supply may not equal market demand

9 Stimulating Innovation
Globalization Increased competition Sophisticated customers Competitive advantage Rapidly changing technology Must meet Customer needs Shrinking timelines years vs. 5 yr

10 Technology Commercialization
Invention & Innovation Connection Discovery Invention Application Opportunity Recognition Idea + Customer Need = Business Concept Product Development Prototyping Technology Feasibility Alpha Testing Protecting Intellectual Property Assets Patents Trademarks Copyrights Trade Secrets Critical Decision Point Patent? Second Critical Decision Point Build, License, or Sell? Launching the Business Business Development Feasibility Analysis Developing The Business Business Plan

11 Invention and Innovation
Connection Recognizing a relationship that leads to a discovery Discovery Leads to an invention

12 Opportunity Recognition
Idea must produce an opportunity Business concept statement Describe product/process Define Customer/end user Benefits and applications Distribution strategy Provides basis for market evaluation

13 Protecting IP assets IP protection is critical to successful commercialization University commercialization issues Which type of protection?

14 Deciding to Patent Questions to ask Why not patent? Feasible design?
Necessary for successful commercialization? PTO requirements? Why not patent? Window of opportunity Cost

15 Product Development Prototyping for feasibility testing Current issues
Shorten time to market Design right the first time Outsourcing noncore capabilities Field test with potential Customers

16 Business Development Market/industry analysis
Capabilities/shortcomings of founders Resources required

17 License, Build, or Sell License Sell Build
Allow another company to produce and sell Collect royalties Sell Difficult decision to make Build Culture shock to change from research to commercialization

18 Developing the Business
Business plan Establishing legal entity Funding/strategic partners VC funds are fertilizers of new technology Do not fund fundamental research Joint development agreements

19 Launching the Business
Start-up Facilities Personnel Organizing operations Transition from research to production Need for management

20 Innovation in the Palm of His Hand
What words would you use to describe Jeff Hawkins and Donna Dubinsky? Were Jeff’s business and academic experiences necessary for the invention and development of the Palm? Why or why not. Would the Palm have been developed without Bruce Dunlevie? Why or why not? What made the Palm so great? Name three. Where will Jeff and Donna go now?

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