Richard Okumoto

Typical Business Development StepsBus 290

Phase 1: Pre-Investment

• Great Idea(s)• Team building: founders vs. non-founder• First business plan: compelling, feasible, and doable • External Organizations: Lawyers, CPAs, Investors• Building social networks• Getting support; finding advisors; plugging gaps• Writing a full-blown business plan• How much, how long, how big

• Building Social and Knowledge Capital

Phase 2: Pre-Investment

• Knowledge development: defining, linking & integrating functional capabilities & organizational systems

• Customer, Competitor, & Market Analysis• Complete Product Requirements Specification (PRS) • Prototype Development• Product development based on PRS• Preparations for market entry• Alpha, beta product rollout (Go-to-Market Plan)• Initial product launch • Production upgrades & new versions: product road-map• Upgrading Functional Systems; building accounting and financial systems

– scale for operations• Investor relations; finding, getting & managing serious money

• Building Credibility Capital

Phase 3: Post-Investment

• Revenues• Alliances; securing, deepening, exploiting

alliances• Knowledge management - Building learning

systems• Scale business • Organization and business process design• Going global • Sales management; direct/indirect; supplier and

channel relations• Professional Management

Phase 4: Nearing-Maturity

• Building a governance system• Managing stakeholder relationships:

– Employees– Customers– Suppliers– Shareholders– Others

• More Financing rounds – seed through first, second, third & beyond

• Growth & profit strategies • Liquidity event (if appropriate) privately held; M&A;

IPO

Product Development CycleBus 290

Rich Okumoto

New Product Development Process