Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company From Invention to Start-UP “Product Positioning” October 30, 2008 James Robarts

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company James O. Robarts 30 yrs – technologist & entrepreneur 16 yrs – patented inventor 11 yrs – consulting IP strategist 7 yrs – teaching IP management 6 yrs – current startup, location-enabled games for phones

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?” – today’s topic description

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Basic Assessment A grid that relates Target market – Business Development Technical innovation – Scientists & Engineers Patent rights – Attorneys

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?”

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?”

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Feature – Function – Tech DefinitionValue-generating Mechanism Feature User experience, usually associated with specific task or experience What does the product do, that the user recognizes as beneficial? Function Collection of technologies used to solve a customer problem Conceptually, how does the technology provide the feature? Technology …mechanical, chemical, electrical, nuclear, algorithmic components & processes Precisely, how is the function accomplished?

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?” – today’s topic description

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Product – Feature – Function – Tech Product Package of features, functions, and messages How does the product provide benefit ? Feature User experience, usually associated with specific task or experience How does the product provide benefit? Function Collection of technologies used to solve a problem Conceptually, how does technology provide the feature? Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes Precisely, how is the function accomplished?

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?”

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Benefit – Feature – Function – Tech Benefit Why buy product? What is the marketing message? Customer expectations Feature User experienceHow does the product provide benefit? Function Collection of technologies used to solve a problem Conceptually, how does product provide the feature? Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes Precisely, how is the function accomplished?

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Perceivable Benefits Technologies must have clear customer-perceivable sources of value Especially benefits that can be articulated in customer messages Customer experience when using distinguishing features Correlate these with the underlying Technology Valuing technologies

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Sources of Value Considering target market and customer perspective purchaser vs. user Benefits Comfort (physical, psychological) Safety Health Cost (purchase, use, maintenance) Convenience Speed Accuracy Status, vanity Failure mitigation Risk reduction or sharing Ease of Use/Learnability Aesthetics Charity/guilt reduction

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Mazda Example Benefit “Zoom Zoom!” Feature Rapid Acceleration Function Lighter chassisReduced weight & friction Technology Improved stress modelingIntegrated oil pump & cam shaft

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… …is the term used to distinguish one product from its competitors in the market. Step one in the process is a basic assessment of what you have: Is this a feature for an existing technology or a separate product that could generate a platform of products? Is it a technology that you could license to an existing company or does it have the potential to become a start- up that dominates a market?” – today’s topic description

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Benefit – Feature – Function – Tech – Rights Benefit Why buy product? What is the marketing message? “Zoom Zoom!” Feature User experience Rapid Acceleration Function Collection of technologies used to solve a problem Lighter chassis Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes Improved stress modeling Rights What claims relate to the tech? Patent XXX, claim #’s

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company “Product Positioning… “Is this a feature for an existing technology or a separate product that could generate a platform of products?” “Is it a technology that you could license to an existing company or does it have the potential to become a start-up that dominates a market?” With our new layered product definition model we can relate specific technologies and their associated rights to benefits (and valuations) for each target market.

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company Levels of Innovation Manifestations  Benefits – why buy product?  Features – what does it do? (customer)  Functions – what does it do? (technically)  Technologies – how does it do it?  Rights – what do patent claims reserve?

Oct 30, 2008Copyright © 2008 Excelsior Bonifico Company From Invention to Start-Up “Product Positioning” October 30, 2008 James Robarts