market driven research
DESCRIPTION
Market Driven researchTRANSCRIPT
Market Driven ResearchMarket Driven Research
Towards Creativity, Innovation and Towards Creativity, Innovation and the Marketplacethe Marketplace
Mohd. Murray Hunter
Introduction
Traditionally Research has been:
● Single disciplinary
● Followed personal interests of researchers
● Research output objectives:
►a paper
►a conference presentation
● Not part of any strategic research plan
Researchers’ Environment
• Teaching commitments
• Intellectual and market isolation
• Research driven by need of funding
• Little expectation other than ‘traditional research output’
• ‘Lukewarm’ supportive environment
• Something that is expected
Typical Research Model
Idea from Research Institute, University faculty or individual within them
Undertake study with objectives interesting to researchers
Primarily single discipline approach
Objectives based on discipline thinking
Project results and conclusion
Publish
Paper at Conference
Add to CV
Little commercial interest:Private sector unaware
No or limited economic study or little consideration to scale up potentialNB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer)
New Expectations
• Market driven• Collaborative and interdisciplinary• Industry partner• R&D&D or R&D&C&C• National Responsibility (driver of economic
growth)• Bias towards applied research• Commercialisation is the desired output
Problems Associated with Commercialisation
• Market
• Technology takers
• Legal
• Institutional
• Technology
• Other
Market Problems
• Failure of invention to meet market needs
• Small size of target market
• Lower price than expected
• Unable to gain distribution
• Lack of market research
Technology Taker Problems
• Lack of willingness of companies to take up technology• Disagreements on terms and conditions of technology
transfer• Perceived complexity of technology and risk• Limited human resources on the part of companies to
put time into implementing the new technology or launching the product
• Not familiar with industry• Financially weak• Returns not attractive enough• High capital expenditure not worth the risk• Limited distribution capability
Legal Problems
• Lack of Clear and clean patent ownership
• Government regulations
• Legal costs
• Due diligence and burden of risk
• License exclusivity
• Long period of time for patent grant
Institutional Problems
• Too many people to deal with at the university or research institute
• Low priority by university administrators to allocate resources for patents, contract research, consultancy, technology transfer and education services
• High cost of licensing• Post license technical support offered by university• Researcher leaves institution• Researchers too many projects (time constraint)• Lack of expertise in commercialisation unit
Technology Problems• Technology not complete Research Investors expect complete technology transfer Development Commercialisation
Strong
Moderate/ Strong
Weak
Tan Sri Dr. Yusof Basiron
LaboratoryResults
Pilot Plant/Prototype
Industrial Scale
Technology Transfer
Other Problems
• Unreliable financial estimates
• Rely on Government grant that never comes
• Poor follow up
The Elements of a Successful Research Cluster
1. A creative environment for motivation and productivity 2. Innovation to develop and screen ideas 3. A strategic approach to be relevant to the marketplace
A Creative Environment
A Creative Person
enthusiastic, risk taker, can think both serially and laterally, good at assessing opportunities, friendly, has good technical know-how, able to access what he or she doesn’t know, broad vision, an eye for detail, strong motivation to overcome hurdles, can give honest assessments and is aware of their personal strengths and weaknesses
University Organisation
• Hierarchical• Process orientated• Procedurised• Departmentalised• Strong “conformity” values• Social goals verses performance goals
THIS IS AN EXCELLENT ORGANISATION DESIGN FOR A TEACHING INSTITUTION
Conflict Between Organisational Design and the Creative Individual • Hierarchical design excellent for time and
motion activities – In macro terms a teaching organisation is a time and motion logistical exercise
• An organic organisational structure has been found to be much more supportive of a creative environment
Desired Characteristics of a Research Cluster
(Matching RM9 Desired Output Objectives)
• Strong Science Base Leading research organisations: University departments, hospitals/medical centres and schools, charities, critical mass of researchers, world leading scientist(s)
Comment: Remote from us• Entrepreneurial Culture Commercial awareness and
entrepreneurship in universities and research institutes, role models and recognition of entrepreneurs, second generation entrepreneurs.
Comment: Need to create • Growing Company Base Thriving spin-out and start up companies,
more mature role model companies. Comment: We are at a great disadvantage, have to work hard
on this issue
• Ability to Attract Key Staff Critical mass of employment opportunities, image/reputation as biotechnology cluster, attractive place to live.
Comment: Have to compensate through strong collaboration• Premises and Infrastructure Incubators available close to
research institutes, premises with wet labs and flexible leasing arrangements, space to expand, good transport links, motorways, rail, international airport.
Comment: Time may improve this
• Availability of Finance Grant agencies, Venture capitalists,
business angels Comments: Have to be very active in this area
Desired Characteristics of a Research Cluster (cont..)
• Business Support Services and Large Companies Specialist business, legal, patent, recruitment, property advisors, large companies in related sectors (healthcare, agrichemical, chemical, food processing)
Comment: A disadvantage, have to work hard on this• Skilled Workforce Skilled workforce, training courses at all levels. Comment: Require coordinated programs
• Effective Networking Shared aspirations to be a cluster: regional trade
associations, shared equipment and infrastructure, frequent collaborations. Comments: Need to work hard
• Supportive Policy Environment National and sector innovation support policies, proportionate fiscal and regulatory frameworks, support from RDA’s and other economic development agencies, sympathetic planning authorities.
Comment: Positive retric there
Desired Characteristics of a Research Cluster (cont..)
What is Innovation?
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Examples of Innovation
Vanilla Breakthrough?
Cationic Breakthrough?
To soap or not to soap?
Is this a breakthrough or not?
Dispelling the myths about innovation
• Less than 5% of new products launched on the market are successful
• Out of 100 new ideas, less than 2 become a commercial reality
• Most companies are followers and not innovators (even the Body Shop)
• Very few really novel innovations are ever launched commercially
• Most new products are incremental steps in enhancement, rather than something completely new (similar to the automobile industry)
The elements of innovation
Culture Ego
Strategic Thinking
Innovation
FocusCreativity
InterpersonalInteractions
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Tempera -ment
Ability
Skills
Learning
Focus
Time
Identified Idea
Action
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Strategic Thinking
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Strategic Thinking
Orientation towards gaining benefits
Orientation towards effectiveness
Orientation towards resource sufficiency
Vision and foresight
Creativity
Solutions Opportunities
Ideas
Creativity
Lateral thinking
Serial Thinking
GroupEducation
Culture
Strategic Thinking
Personality
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Ego
Environment, Family,Peers, Culture
Outer Ego; Responsibility,Accountability, courage
Inner ego: self assurance, dedication, motivation
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Interpersonal Interactions
Sincerity
Warmth Personality
Networking Team/Individual Orientation
Character
Judgment
Culture
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
Culture
Values
Beliefs
Assumptions
Leadership
Theories in action verses Espoused
Norms and group behaviour Organisational
learning (single or double looped
Productivity & effectiveness
Stories, myths, heroes, artifacts, informal behaviours
Effect of Factors on Innovation
Variable Absent Extreme
Focus Random Tunnel vision
Strategic Thinking Switched off Unfocused
Creativity Unimaginative Over-imaginative, lose sight of big picture
Ego Purposelessness Self-deluded
Interpersonal Relationships
Individualistic and independent
Hesitent to take responsibility
Culture Self centered and moraless
Fanatical
Optimum Innovation
Innovation Component
Qualities (at mean spectrum)
Focus •Have control of the situation•Put the project first
Strategic Thinking •Able to spot and work towards exploiting the opportunity•Able to secure resources (beg, borrow or steal)
Creativity •Able to create both laterally and serially•Spot and exploit opportunities
Ego •Inner need to make a difference•Able to take risks
Interpersonal relationships •Able to network effectively
Culture •Spot and exploit causes•Create social capital
Factor Synergy
Ideas Solution Opportunities Screen Realisation
Spots Evaluates Selects Targets
Creativity
Strategic Thinking
Focus
The Innovation of the The Innovation of the EagleEagle
Idea - Food
Scans Opportunities, Spots, Evaluates & Selects (resource choices)
Targets
Realises his catch
Perfect Creativity, Strategic Thinking & Focus
A Strategic Approach to be Relevant to the Marketplace
Buyer Power, eg:buyer choicebuyers size/number
change cost/frequencyproduct/service importancevolumes, JIT scheduling
New Market Entrants, eg:
geographical factorsincumbents resistance
new entrant strategyroutes to market
Competitive Rivalry, eg:
number and size of firmsindustry size and trends
fixed v variable cost basesproduct/service rangesdifferentiation, strategy
Product/Technology Development, eg:
alternatives price/quality market distribution changes
fashion and trendslegislative effects
Supplier Power, eg:
brand reputationgeographical coverage
product/service level qualityrelationships with customersbidding processes/capabilities
Figure 7. Porter’s Five Forces of Competitive Position
A Market Driven R&D Model
Industry defined problem or issue
Parameters of problem researched with reference to interdisciplinary frames
Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements
Process designLaboratory trialScaling up
Industry implementation
Process EngineeringElectrical EngineeringSensorsGMP
Process Manufacturing
Environment &OccupationalSafety Issues
Market & Commercialisation
Product Development
Refining of Crude Extracts
Extraction Processing
Cultivation
Domestication
Bio- Prospecting
Extraction TechniquesBio-ChemistryAnalytical Chemistry
Tissue Culture
Agricultural EngineeringPrecision FarmingBio-Chemistry Processing
Bio-Chemical Engineering
Fractionation & Bio-Reactor
Techno-Preneurship
Figure 8. From Bio-Diversity to Laboratory to Market-Place
Beware of Becoming Dyfunctional
Identification of Active ingredient in plant
Identification of Active ingredient in plant
Preliminary ASSAY Preliminary ASSAY
Cultivation, harvesting, extraction, refining, stabilisation, etc
Cultivation, harvesting, extraction, refining, stabilisation, etc
Trials in ‘made up’ formulations, eg shampoo, cream
Trials in ‘made up’ formulations, eg shampoo, cream
Go to market and sell product to customers, supermarkets, direct selling, distributors, etc.
Find a distributor
Seek advice on market potential
Collaborate
Collaborate
Various trials and assaysCollaborate
Negotiate Agreements(farming, processing, marketing)
Product Registration
To international market as a raw material fine chemical
Little IP GeneratedMost likely to stay in domestic market
IP Generated that is transferable for ValuePotentially has a global market
Figure 4. Two Pathways for the Commercialisation of Research (example for a plant extract)
Farm to Consumer As an Intermediate Product
Conclusions
• First and foremost: Industry collaboration• Principal of research wide, focus narrow: Inter
institutional collaboration• Develop the correct organisational structure for
maximum creativity• Seek incremental advances in research to reduce risk
and shorten lead times for research output generation• Become a strategic thinker and scan the environment• Plan your expected milestones and outcomes• A techno-entrepreneurship and commercialisation
component of the cluster
Techno-entrepreneurship & Commercialisation Component
• to carry out specific research regarding the specialist area of engineering techno-entrepreneurship to support KUKUM’s role as an engineering university,
• Post Graduate techno-entrepreneurship research programs (i.e., engineering background who want to undertake post graduate research in technology commercialisation, issues with technology commercialisation and technology management)
• to run seminars and workshops on techno-entrepreneurship for the cluster, schools and university,
• to provide input into core entrepreneurship undergraduate programs as a resource to PKKK,
• to liaise and assist other parts of the cluster develop entrepreneurship and commercialisation of their research (interdisciplinary)
Techno-entrepreneurship & Commercialisation Component
• to assist in funding and finding stakeholders for start-ups from the cluster
• techno-entrepreneurship policy development centre
• to develop seminars for target audiences to enhance KUKUM’s expertise image as an techno-engineering institution & source of revenue
Techno-entrepreneurship & Commercialisation Component
• to carry out the incubator function as required for grants and IPTA policy
• to act as an entrepreneurial think tank
Techno-entrepreneurship & Commercialisation Component
Mechanical, sensors, nano, bioprocess, etc
CLUSTER
Part of cluster Techno-entrepreneurship & commercialisation
KUKUM SCHOOLS
Entrepreneurship resources
Post Graduates
Entrepreneurship, commercialisation & start-ups
Information and research dissemination
Specialist Corporate Seminars
Role of Techno-entrepreneurship & Commercialisation Unit in Cluster
Thank You