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Copyright © 2012-15 Vibazone Private Limited All Rights Reserved

Privileged and Confidential For Internal Discussion Only

“WHO SAID YOU CANNOT

COMMERCIALISE YOUR RESEARCH”

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About VibaZone

Industry Specialists,

Innovation Experts,

Entrepreneurs

Consultants,

Analysts IP Analysts,

Market Researchers

Lawyers

FROM IDEATION

TO COMMERCIALIZATION

• Headed by Muthu Singaram, a renowned innovation consultant and speaker, with over 20 years of experience in start-ups and commercialization.

• A team of Business Consultants,

Industry Specialists and IP Analysts building a Global Innovation Ecosystem.

• Working out of Canada, India, Singapore and Malaysia with a group of young Malaysians


VibaZone

VISION – To help and guide entrepreneurs, or anyone who wish to participate in, build, or growing a sustainable business in any parts of the world or industry.

MISSION - To serve the many innovators, entrepreneurs and budding inventors, to provide a new game changing dynamic support to sustain the business growth.

By Year 2012 Offices in Chennai and Kuala Lumpur

By Year 2013 Offices in Singapore, Indonesia, Sri Lanka and Canada

By Year 2014 Offices in China, Taiwan, Hong Kong, USA, Japan, Russia

By Year 2015 Offices in Australia, South Africa, Brazil

By Year 2016 Office another 4 countries

By Year 2020 At 100 locates


Our Services

• IP Landscape Analysis

• IP Feasibility Analysis

• Identify and Engage Potential Collaborators

• Business Services Marketplace

• Global IP Trading

• Global Innovation Network

• Design and Implement Innovation Frameworks and Models

• Identify and Engage Collaborators

• Develop Technology Transfer Service

• Feasibility Analysis

• Business Case Building

• Business Planning

• Implementation

• Training and Mentoring

COMMERCIALIZATION

SUPPORT

BUILDING INNOVATION

SYSTEMS

IP EVALUATION

VIBAZONE

SERVICE

DELIVERY

PLATFORM


About The Speaker Muthu Singaram

• Consultant, Mentor, Facilitator, Professor • Electrical and Electronics Degree ,an MBA in Multimedia Finance,

Chartered Electrical Engineer (UK ) and European Engineer • Almost 20 years of work experience in Engineering, Management and

Entrepreneurship • Currently

– Co-Founder AcceleratorU , Ultimate Startups – Founder Muthu Singaram Consulting, VibaZone, Belief

• Last two assignments were – Multimedia Development Corporation – Project Director at British Telecom Asian Research Center

• 10 patents and 16 publications • On WIPO and UN panel for technology transfer and SME • Visiting faculty and Speaker in the Areas of innovation and

Entrepreneurship around the world

5


Setting The Learning Outcomes

6


Objectives

• Understand how to commercialize your research

• Understand the various modes of commercialization

• Understand various components to support your commercialization

• Understand the success factors for commercialization

• Understand the challenges for commercialization

7


Program Outline

•Research and Technology

Day 1

•Commercialization and Technology

Day 2

8


Program Agenda

Day 1 • Research and Technology

• Setting The Learning Outcomes

• Understanding of Participants Situations and Learning Objectives

• Success Story From the organizer’s Startup

• Understanding Commercialization Realty

• Researchers Commercialization Journey

• Research Commercialization Roadmap

• Transforming Research into A Commercially Viable Model

• Research Risk Management

• Research Due Diligence

• Business Model for Research Outcomes

• Financial Model for Research Outcomes

• Capturing Research on The Balance Sheet

• Open Innovations vs. Closed Innovation in Research

• Setting The Stage for Next Day and Day’s Review

Day 2 • Commercialization and Technology

• Setting The Stage for The Day & Yesterday’s Review

• Success Story of Entrepreneurs 2

• Looking at Research in The Form of Commercialization

• Market & Competitive Analysis

• Scoping Commercialization

• Key Requirements for Commercialization

• Success Factors for Commercialization

• Key Drivers for Commercialization

• Identifying Commercialization issues

• Conclusions

• Closing Remarks

9


The 5W and 1H of “Who Said You Cannot Commercialise Your Research”

Workshop

Who?

What?

Where?

When?

Why?

How?

10


The 5W and 1H of “Who Said You Cannot Commercialise Your Research”

Workshop

Who?

•You

What?

•Idea

Where?

•Market

When?

•Now

Why?

•Satisfaction

How?

•Commercialise

11


Program Methodology

Practical

Case Studies

Role play

Theory

Interactive

Lectures

Small Group Discussions

Large Group Discussions

Collaborative

Group Activities

Sharing ideas of individuals

12


Understanding of Participants Situations and Learning Objectives

13


Introduction to The Group

• One minute Introductions

o Name

o Department

o Position

o Involvement in R &D


Why are you here?

• Start your own company?

• License?

• Be part of a company but not operationally?

• Do not know why?

• Here for the outing?

15


Understanding Commercialization Reality

16


What is Commercialization?

• Commercialization can be defined as a process of introducing a new product or service into the market. o Realizing a concept or idea into a real business opportunity.

• For example, a business that has a great idea/ product wishes to expand its business. o Before the product is commercially available in the mass market, a

process of commercialization must be gone through: market research & consultation, development, prototype, business plan, marketing & distribution plan as well as protecting its intellectual property.

Ask ?


Commercialization Processes

18

Innovation IP Analysis

and Valuation

Marketability Study

Form Team to Design Commercialization

Commercial Sales

Copyright © 2012-15 Vibazone Private Limited All Rights Reserved 19

Commercialization Processes

Innovation

Market/ industry research

Competitor analysis

Availability of resources

Human capital

IP Analysis and Valuation

Securing funding

Identify assets and understand

rights

Calculate value added by IP

Proof of concept/ field

test

Marketability Study

Main customer base

Product launch costing

Determine supply and

demand trends

Determine if product is licensable

Form Team to Design

Commercialization

Business planning/ strategy

Industry/ investor relationship

development

Supply chain management

Customer support

Commercialization


Examples of Successful Commercialization Process

20

Nickel-Metal Hydride (Ni-MH) batteries by Department of Energy, USA


Steps for Commercialization

1. Explain your product or service

2. Protect your intellectual property (IP)

3. Understand your market

4. Access your skills to develop your product/service

5. Design and complete a working prototype

6. Write a business plan with a commercialization strategy

7. Explore the possibility of grants and assistance

Ask ?


(1) Explain your Product or Service

• A clear and concise product or service description must be written and it should be easily understood by a person that is not familiar with the new concept.

• Further, the written document should not include industry jargons and it should demonstrate the features and benefits of the new product of service.

• This is due to all these explanation will be treated as a critical discussion with consultants, customers, suppliers, IP lawyers, investors and etc.


(2) Protect Your Intellectual Property

• Protecting the new concept of product or service is very important during early stage to prevent others from imitating the same concept and bring it to the market earlier.

• Thus, before discussing to anyone about the new concept of the product or service, he/she must ensure that all the conversations are protected.

• For example, a confidentiality agreement or a non disclosure agreement (NDA) is very useful in disclosing and discussing the new concept of the product or service to 3rd parties to ensure that they do not disclose all the confidential information that is not publicly available.


(3) Understand your Market

• Market research must be done in order to identify which market the new product or service can fit into and who are the key competitors as well as potential customer within this particular market.

• As a result, all these information will help the business to decide which is the best way for the new product or service to enter the market.

• In addition, a unique selling proposition or competitive advantage must be developed in order to make the new product or service stand out from the crowd.


(4) Access your Skills to Develop your Product/Service

• The business must determine its commercialization path to dictate its future strategy. o Ways of doing business to bring the new product or service to the

market Joint venture, manufacturing, assignment or licensing.

• For example, if the business is thinking of using either local or overseas manufacturers to produce the new product, it is very important to look into the quality control and distribution strategy. If the manufacturer is from overseas, freight issue must be take into account.


(5) Design and Complete a Working Prototype

• In order to built confidence on the new product/service, a working prototype must be developed and demonstrate it to the potential customers or investors.

• However, the prototype must gone through internal testing to address any outstanding issues before reaching the potential customers or investors.

• In addition, technical support documents or instruction manuals must be as well finalized before presenting to the potential customers or investors.


(6) Write a Business Plan with a Commercialization Strategy

• A structured plan is needed to bring the new product/ service from concept to the real market.

• Thus, business plan should include areas such as: o Market Research

o Customer Analysis

o Competitive Analysis

o Marketing strategy which includes price, product, promotion and distribution strategy

o Financial strategy and etc.


(7) Explore the Possibility of Grants and Assistance

• There are a lot of programmes to encourage entrepreneurs to start up a business in most of the country.

• Thus, there are a lot of opportunities to seek for funding and assistance from various sources.

• Businesses or entrepreneurs can as well seek assistance from universities or companies where academia-industry collaboration is now very popular to encourage innovation.


Commercialization Strategy for Start-ups

1. Attacker’s advantage

2. Ideas Factories

3. Reputation-based idea trading

4. Greenfield Competition


(1) Attacker’s Advantage

• The competition in the market is very high between start-up firms and existing firms especially for technological leadership in the “niche” market.

• As the existing firms do not control complementary assets, the start-up firms will have the opportunity to obtain a leading position by entering into the blind spots market.

• In order to avoid such attack by existing firm, it must continuously present in the market, improve and innovate new products in order to stay competitive.

• E.g. Swiss Watch Industry that used to be a leader in mechanical watches did not anticipate new possibilities of innovation which enable the attackers such as Seiko, a Japanese firm to produce electronic watch (blind spot).


(2) Ideas Factories

• The cost for a start-up company to enter the market with its new product is costly.

• Thus, if they want to realize their new innovation concept, they will have to compete with other companies in order to win the competition by partnering an existing firm.

• Welcoming outsourced innovation ideas will allow successful technology innovation.

• E.g. Car industry has a very high market entry cost. Thus, start-ups will be using another options where they will sell their innovation ideas such as better improved batteries or engines to the car industry.


(3) Reputation-based Idea Trading

• As for this strategy, start-ups do not show much competition to the existing firms.

• Thus, the ideas and inventions might be stolen or imitated by existing firms.

• However, some imply the choice of the existing firm to trade ideas with the start-ups.

• E.g. Academia-industry collaboration where university appears to be a very reliable partner for start-ups industries, especially in emerging fields and high technology.


(4) Greenfield Competition

• Start-up companies have the choice to whether compete or cooperate with an existing firm.

• Start-ups companies are able to protect themselves for their own innovations from possible imitation.

• Thus, start-up companies do not need the complementary assets of the existing firm.

• Further, this strategy as well can be used by “large established companies”.

• E.g. Video games industry player, Nintendo chose a cooperative strategy as it benefits the business that always requires innovation.


Advantages of Commercialization

• Technology Transfer

When technology transfer occur during research and development, it will develop a great place- Knowledge Centre, where knowledge sharing will be occurred.

Technology transfer help in improving the technologies accordingly where it creates new market as well as develops the needs of the consumer.

In long term, technology transfer can help in sustaining economic growth in the future development as well as commercializing new technologies.

As a result, technology transfer helps in maximizing the unique resources, expertise, technology, facilities and etc.


Disadvantages of Commercialization

• Controlling the cost from concept to commercialization is very difficult and is a challenging task.

• This is due to there is a low access to market capital.

• Thus, the probability for the industry to fail is very high.

• Due to new product entering the market, the situation of inconsistent profits are very common and it is also one of the major disadvantage.


Question

Do you think you have something worth commercializing?

1. Yes

2. No

3. Not sure

4. Not interested

36


RESEARCHERS COMMERCIALIZATION JOURNEY

37


INTRODUCTION

• A researchers commercialization journey in essence carries the meaning of the methods and ways of how a researcher will take in process of commercializing their invention i.e. innovation.

• There are 2 possible scenario to consider which are:

– The product is still being developed and a commercialization strategy is developed hand in hand with the development of the product

– The product has finished being developed and the strategy in now being developed. The strategy is developed separately from the development of the product

• The scenario above is normally dictated by the environment in which the researcher operates.


KEY AREAS OF FOCUS

• Besides the commercialization model there are also other key areas of importance that has to be monitored in order to obtain the best outcome.

• Key focus areas in the pursuit of commercialization are

– PRODUCT

– FINANCE

– LEGAL


KEY AREAS OF FOCUS – PRODUCT

• TYPE OF PRODUCT – The type of product can influence the commercialization strategy. For example if a

product can be imitated easily or is a unique/novel idea it may be kept under wraps until its ready to be commercialised to avoid competitors from imitating the product.

• MARKET VIABILITY – The product has to meet the demands of the market either current or future demand or

it has to create a product attractive enough that it generates new unseen before demands. This will allow the product to be a commercial success and avoid commercial failure.

• WHY ITS IMPORTANT – the type of product will influence the commercialisation success factor based on factors such as technical requirements, complexity, production resources availability and other factors?

• EXAMPLE – the introduction of the iPhone was a breakthrough as there were no other

company who were producing the smartphone in the full touch display mode. This product was able to create unseen demand and took the industry by storm before the competitors could have the time to catch up


KEY AREAS OF FOCUS - FINANCE

• SELF/COMMERCIAL – The type of funding options will play a role in the commercialisation of the product. It

can either be commercialised for profit or not for profit. Mostly products are commercialised for profit with the self funding option allowing more freedom in the development of the product. Commercial funding is usually tied to a strict schedule of performance and non performance will result in the cancelation of the funding

• POTENTIAL INVESTORS – The potential investors are crucial in aligning their interest of developing the product

inline with the researchers vision of product development. When there is a mismatch it will hamper the development progress of the product and may result in the investors backing out leaving the commercialisation activities in limbo.

• WHY ITS IMPORTANT – the potential investors will contribute to the commercial success of the product by the measure of resource and support provided.

• EXAMPLE – self financing involves own resources as well as public grants. Commercial financing involves angel investors as well as corporate backers.


KEY AREAS OF FOCUS – LEGAL

• INTELLECTUAL RIGHTS – The product being commercialised has got to be protected by intellectual property

either by patent, copyright or trademark. This is to secure the product an ensure competitors are not able to imitate the product in its entirety an confuse potential future customers. In the case of intellectual property infringement legal action can be taken up against the infringing party.

• COMPLIANCE TO REGULATORY APPROVAL – The product that being commercialised also has to meet the regulatory standards. This

will ensure that the product is safe and will not pose any harm or threats to the customers and will not face any interference from the authorities.

• WHY ITS IMPORTANT – compliance to intellectual property laws and regulations will ensure commercialising activities will not be bogged down by false claims and claims of non-compliance .

• EXAMPLE – intellectual property can be filed at World Intellectual Property Organization (WIPO) and compliance standards can be regulated with International Organization for Standardization (ISO).


COMMERCIALIZATION PATH

• Most commercialization path is as follows :

• However the ends result of this path may not always lead to the successful commercialization.

• It is also likely that during the commercialization path it may become apparent that the product will not be successful and a decision to cancel will need to be taken to minimize the wastage of resources.

COMMERCIAL STUDY

INCUBATION PERIOD

PRODUCT DEMONSTRATION

MARKET ENTRY

GROWTH & SUSTAINABILITY

COMMERCIALISED PRODUCT


COMMERCIAL STUDY

INCUBATION PERIOD


MARKET ENTRY



COMMERCIAL STUDY

• This stage normally begins with market insight of that particular product to address two main concern which are the: – Product Feasibility – can the product be made with the existing resources

– Product Demand – does the product meet the current/future demands of the market

• This stage is normally void of 3rd party financial backing

• Serves to collect information to obtain the 3rd party backing.

• This stage carries extreme risk and has the highest failure rate

• Due to insufficient compliance to the earlier mention concerns


INCUBATION PERIOD COMMERCIAL

STUDY

INCUBATION PERIOD


MARKET ENTRY



• This stage involves the technical development of the product where the product will undergo its first stages of commercial R&D development.

• This will usually result in the knowledge of the product parameters

• This stage is normally scarce of 3rd party financial backing attributed to technical and market uncertainties

• This stage is also a high risk stage where technical and market roadblocks will frequently hinder the commercialization progress.


PRODUCT DEMONSTRATION COMMERCIAL

STUDY

INCUBATION PERIOD


MARKET ENTRY



• This stage involves the development of the product in a more commercial context which will show evidence that consumers will the product.

• This is to provide details to 3rd parties in order to attract their investments.

• This stage is normally will have a mix of 3rd party financial backing.

• The risk factor here is derived from a combination of technical, performance, manufacturing, and market feasibility.


MARKET ENTRY COMMERCIAL

STUDY

INCUBATION PERIOD


MARKET ENTRY



• This stage involves the commercial start-up test to see if the product will be a success which involves production, service, distribution, sales and marketing of the product.

• The performance here will serve as in indicator to the financial backers on the decision to move to the next phase.

• The key factor here is can the product/technology fuel a wide variety of new products and opportunities. – If YES, it moves on to the next phase

– If NO, then it will result in an exit strategy


GROWTH & SUSTAINABILITY COMMERCIAL

STUDY

INCUBATION PERIOD


MARKET ENTRY



• This stage will involve the expansion of the commercialization activities in terms of increasing market share/revenue and creation of a self sustaining business.

• This stage is testament to the success of the product and is proof of successful product commercialization

• The financial backers will see their gains at this stage.

• This stage also represents the lowest risk in the entire commercialization path.


Research Commercialization Roadmap

49


INTRODUCTION

50

Business Potential

Assessment

Technology Assessment

Align and Strategize

Setup and Operations

Framework Setup

Securing Capital


BUSINESS POTENTIAL ASSESSMENT

51

Business Potential

Assess Commercial Feasibility

Potential Stakeholder

Analysis

Target Market Analysis

Identify Business Gaps

and Risks


TECHNOLOGY ASSESSMENT

52

Protect Technology – based on business assessment identify the ideal mode of protecting the technology involved (based on potential value, etc.) and the key markets to be protected in.

Identify Technology Gaps – Identify key gaps in the technology that might inhibit the commercialization process and propose solutions for closing these gaps (ex. Additional research, partnerships, etc.)

Analyze key technology competitors – Identify and analyze the key competitors in terms of the involved technology.


ALIGN AND STRATEGIZE

53

• Identify key parameters and needs of the business ecosystem in terms of target customer base and business dynamics of domain.

• Tweak product placement and business parameters to ensure a tight alignment wit h the market – this will ensure an easier market entry.

Market Alignment

• Analysis of the various potential revenue sources and partnership models suitable for this product / service.

• Prioritize based on alignment with the needs and a potential to maximize the value of the business.

Opportunity Maximization

• Detailed business strategy including market analysis, product analysis, risk analysis, marketing strategy and revenue models.

• Detailed financial projections including estimates of potential funding required.

Business Planning

• Based on the alignment and strategy identify the critical success factors for the business plan.

• Generate timeline and prioritization plans for the key next steps addressing the success factors.

Critical Success Factors


SECURING CAPITAL

54

Finalize, streamline and prioritize funding requirements for

commercialization

Identify and approach key stakeholders and potential

investors based on alignment with business

strategy

Finalize funding agreements including

mode, value of payments and exit strategies


FRAMEWORK SETUP

55

Management Setup

Identify and finalize the key management team based on the business strategy and needs to

ensure optimal management.

Administrative Setup

Identify and execute the key administrative steps for the setup of the business in terms of business

licenses, approvals, regulatory processes etc.

Team Setup

Based on short and medium term business strategy build the operational team needed for

start-up of the business

Network Setup

Identify key business network components for business operations and start building contacts

and agreements for network setup.


SETUP AND OPERATIONS

56

Business Operations including

Production, Management and

Sales

Business Strategy

Execution

Physical Facility Setup

Periodical Business Evaluation and

Strategy Alignment


Transforming Idea into A Commercially Viable Model


Transforming Idea into A Commercially Viable Model

• Converting an idea into a commercial model is not an easy task.

• The person who gives birth to the idea has to take ownership as there will be no one else capable of understanding the concepts and depth of the idea as the person who conceptualized the idea.

• Its equivalent to giving birth to a child, one has to own the responsibility that come with it.

• For an idea to be commercially successful it has got to continue growing and evolving because in order to keep the idea alive over time it has to evolve an continuously adapt to its current circumstances.

• Failure to evolve will result in obsolesce of the idea.


KEY INGREDIENTS

• In order to transform the idea in to a commercially viable model it need a list of key ingredients:

– Prototype

– Technology

– Team

– Target Market

– Customer

– Automation

– Risk

– Financing

– Motivation

– Unique Selling Point

– Clearly Defined Goals


PROTOTYPE

• An idea can only remain an idea for so long. There has to be a version of the idea so that it can be shown to future customers and investors.

• A prototype not only serves as a platform to showcase your product but its also an avenue that enables you to get potential feedback before the product is marketed giving leeway for further adjustment to be made

• A prototype also is a platform that enables you to test out your product to make sure that it is able to work as conceptualised in the idea stage.

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