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Resources from Business Victoria's workshop giving early stage innovators information on the steps you need to take to turn your new product into a commercial reality.
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1. Introduction & workshop objectives
Learning objectives of this workshop are to provide you with the skills to:
Understand the stages of commercialisation
Assess the feasibility of your idea at each stage
Make more informed decisions to proceed or cease activity
Better understand what is required in preparing a focused commercialisation plan
Page 3
2. Where to with your big idea?
Are you competing with established businesses?
Overview of the stages of commercialisation
Understanding the stages of commercialisation
Do you have what it takes?
Page 4
Are you competing with established businesses?
Page 5
Overview of the stages of commercialisation
Show me - prove it works
Prove the market needs it
Prove it to the market
Prove it can build a business
EMERGING GROWTH BUSINESS
IDEA
PROOF OF CONCEPT
PROOF OF PRODUCT
/OPPORTUNITY
MARKET VALIDATION
COMMERCIALISATION
Page 5
Understanding the stages of commercialisation
STAGE : PROOF OF CONCEPT
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STRATEGY
PRODUCT /TECHNOLOGY
IP
MARKETTEAM
OPERATIONS
FINANCE
Proof of Concept
STAGE : PROOF PRODUCT/ OPPORTUNITY
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STRATEGY
PRODUCT /TECHNOLOGY
IP
MARKETTEAM
OPERATIONS
FINANCE
Proof of Product Opportunity
STAGE : MARKET VALIDATION
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STRATEGY
PRODUCT /TECHNOLOGY
IP
MARKETTEAM
OPERATIONS
FINANCE
Market Validation
STAGE : COMMERCIALISATION
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STRATEGY
PRODUCT /TECHNOLOGY
IP
MARKETTEAM
OPERATIONS
FINANCE
Commercialisation
Page 6
Do you have what it takes to make the journey?
Do you have the :
Right expertise, skills & experience
Risk profile to invest and convince others
Ability to commit the required time, and
Perseverance, passion and drive
Page 8
3. Intellectual Property
What is Intellectual Property (IP)?
The most common types of IP
IP strategies & considerations
IP protection structures
Selecting an IP advisor
Page 10
What is Intellectual Property (IP)?
Intellectual Property is defined as:
‘a term referring to a number of distinct types of creations of the mind for which property rights are recognised’
Keeping the ‘secret’
Using confidentiality agreements
Page 10
The most common types of IP
Patents
Trademarks
Designs
Copyright *
Confidentiality agreements / trade secrets
Others – circuit layer rights * & plant breeder rights
www.ipaustralia.gov.au
Page 11
Patents
Definition : A patent is a right granted for any device, substance,
method or process which is new, inventive and useful
To be eligible your invention must be:Be new, ‘novel’
Involve an ‘inventive’ step
Be a ‘manner of manufacture’
Be useful (do what you say it will do)
Page 11
Patents (cont)
2 types of patents :
Standard patent (20 years)
Innovative patent (8 years)
3 types of applications:
Provisional applications (sets priority date)
Complete applications (incl specifications & claims)
International applications (PCT)
Page 11
Trade marks
Definition :Trade mark can be a word, phrase, letter, number, sound, smell, shape, logo, picture, aspect of packaging or a combination. Used as a marketing tool to distinguish goods & services from each other
Examples of things you can’t use
Importance of determining what ‘classes’ to register
Page 13
Designs
Definition : A design is the overall appearance of a product.
The visual features that form the design include the shape, configuration, pattern, and ornamentation which when applied to the product, give it an unique appearance.
A registrable design must be new and distinctive
Provides protection for 5 years (+ renew 5 years)
Page 12
Copyright
Definition : Copyright protects the original expression of
ideas, not the ideas themselves - automatic
Examples: Original works of art and literature, music, films, sound recording, broadcasts and computer programs
Can licence to others
Copyright generally lasts 70 years
Page 13
Confidentiality / trade secrets
A confidentiality agreement
is often used to stop parties and employees from revealing your secret or proprietary knowledge during and after employment / discussions
A trade secret
is both a type of IP and a strategy for protecting IP
Page 13
IP protection strategies & considerations
Patent lodgement – starts the ‘clock’ on commercialisation timetable
Weighing up total IP protection –v- access to funding
How do you decide – which countries?
Alternative strategies for IP protection
Page 13
4. Assessing the feasibility of your idea
The importance of assessing the feasibility of your idea/product
Key criteria in assessing the feasibility of a product
Feasibility assessment activity
Page 21
The importance of assessing the feasibility of your idea/product
Not every good idea will lead to commercial success
Need a balance between innovative skills and your ability to assess the ‘feasibility’ of your idea
Need to maintain focus on the ‘end goal’
Feasibility assessment will help you :
Decide if you should cease activity (before it costs you significantly)
Refocus during product development stage
Page 22
Key criteria in assessing the feasibility of a product
The 3 P’s – Product, Potential & People
Product – Innovation, product, IP novelty, ability to meet market need, value proposition
Potential – Market size, access to market channels, target market, competitive advantage, export potential, barriers to entry
People – business experience, industry expertise/skills, management mix of skills, vision, strategy, ability to adapt, financial/business planning
Feasibility assessment activity(Workbook page 22)
Feasibility assessment activity includes a series of questions set out by key areas of activity of :
Product / technology feasibility
IP feasibility
Market feasibility
Financial feasibility
Overall commercial feasibility
Page 22
Feasibility assessment activity
Assess each area of activities in your commercialisation
Page 26
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5. Requirements for licences, registrations & permits
Understanding the government regulations in your country
Understanding the regulations in different markets
Establishing your business structure
Registering a company & business namewww.asic.gov.auwww.austrade.gov.au
6. Developing a commercialisation strategy & plan
How a commercialisation plan differs to a business plan
Essential ingredients in your commercialisation strategy
Product description & value proposition Market assessment & validation of market opportunityIdentifying the business model & market entry strategy
Template of a commercialisation plan
Overview of the commercialisation strategy process
Page 40
How a commercialisation plan differs to a business plan
A commercialisation plan often encounters :
No clear comparative model to follow
Multiple variations of ‘the product’ available
Different target markets which need the product
A number of business models options
Page 40
How a commercialisation plan differs to a business plan (cont)
Funding is often the most limiting factor in the process
Requires an open mind to the possibilities & common -sense approach to the realities
Strategies need to be well researched
Essential ingredients in your commercialisation strategy
The product & value proposition to the customer(product description, features & benefits, value proposition)
Market assessment & validation of market opportunity(which industry, structure, who gets value, relationships & influences, key players, selecting market validation partners)
Identifying the business model & market entry strategy(which business activities do you want to do? market entry – product, pricing, promotion, place)
Page 40-41
Product description & value proposition
Product 1 Product 2 Product 3
List 4 Key features
List 4 key benefits
What problem does the product solve for customers?
How is the problem being solved currently and by whom?
Explain the customer value proposition
Essential ingredients in your commercialisation strategy (cont)
Page 41
Market assessment – industry structure
ROUTE TO MARKET INFLUENCERS PRODUCT MANUFACTURER DISTRIBUTER RETAILER
END CONSUMER ☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺
MARKET / INDUSTRY STRUCTURE
Essential ingredients in your commercialisation strategy (cont)
Page 42
The business model decision
R&D / Technology
Distribution / Delivery
Sales / Business
Development
Warranty & Customer Support
Manufacturing/ Assembly / Services
KEY BUSINESS ACTIVITIES & COST CENTRES
Essential ingredients in your commercialisation strategy (cont)
Page 43
The business model decision (2)
Essential ingredients in your commercialisation strategy (cont)
TARGET MARKET
R&DProduct
Manufacturing / Assembly
Sales / Business
DevelopmentDistribution
/ Delivery
Customer Support / Warranty
Australia
US
1 = In-house 2 = Outsource 3 = Licensing Page 44
Key elements of marketing entry strategy
Essential ingredients in your commercialisation strategy (cont)
PRODUCT PLACE PROMOTION PRICEDeveloping the
right ‘product’ for the target market
Getting the right’ product ‘into’ the
target market
‘Informing’ the market about the
right product
Getting the ‘price’ right
Product features & benefits Identifying the value proposition Quality Packaging / product branding Warranty Installation Instruction manual
Distribution channels
Selection & relationships with intermediaries
Identifying the influencers in the market
Service levels Market
exposure
Identifying sales staff Training / motivation of staff Advertising Publicity Developing promotional material –brochures, internet, testimonials
Determining the $$ value pricing of the product for each market Flexibility to meet market demand Discount / rebate policy
Page 45
Overview of commercialisation plan
1. Executive summary
2. The product & value proposition
3. IP protection
4. Market profile (industry structure, competitor products, key industry players, critical success
factors)
5. Route to market (business model, commercial partnerships, market entry strategy)
6. Financial analysis (costing, projections, funding)
7. Team & operations
8. Action plan
Page 45
R&D development finished
Invention & R&D / working prototype Commercial design Testing / certification, technical review
commercial product in place
Identified commercial product offering Clear product features & benefits Value proposition / competitive advantage identified
market place assessment
Detailed market research undertaken - - Clear understanding of market structure - Evaluate competitor prods /key players - Look at industry relationships & CSFs
IP protection & strategy in place
Management skills review
Determine your vision/objectives
market validation to be done
Plan investment raising activity
Plan potential legal structure
commercialisation strategy development
Determine strategic position of product / business Identify the Business Model to commercialise the product
Commercialisation options evaluation Market entry strategy determined
= COMMERCIALISATION STRATEGY
STRATEGY
- Comm Plan - Ongoing bus
strategy - Strategic
partnership - Fund raising
strategy - Direction
IP
- Ongoing management - Confidentiality agreements - Licensing
MARKET
- Target mkt - Route to mkt - Pricing - Distn
channels - Promotion
FINANCE
- Financial projections - Acctounting system - Budgets
TEAM / OPERATIONS
- Management team
- Recruitment - Manufacturing
set up - Location
PRODUCT
- Future R&D enhancement
- New product development
Financial evaluation
$$$
$$$
$$$
COMMERCIALISATION STRATEGY
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Using your SBMS voucher
Business mentors help you to identify a clear direction for you and your business.
Business mentors can also advise you on how to:conduct market researchcost your products or servicesdevelop an effective commercialisation strategy & planuse other business management toolsmove forwards in commercialisation
To arrange a session with a business mentor go to:
www.sbms.org.au/OurPrograms/SpecialistVouchers.aspx
and type in TBID as your code
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Discussion and Questions
Thank you for attending
Check outwww.business.vic.gov.au/workshops
for more workshop information
Questions?
Thank you for attending
Check outbusiness.vic.gov.au/workshops
for more workshop information
