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?