GPP.developing a Commercial Roadmap

8/17/2019 GPP.developing a Commercial Roadmap

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©2012 IC2 Institute at the University of Texas atAustin

Developing aCommercialization

RoadmapStrategy and Trajectory:

A Technology to Product Plan

Gregory P. Pogue, Ph.D.


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or!"hop Topic"

#. De"igning a Technology to $ar!et Plan

%. Commercialization Roadmapping &ithCa"e Studie"

– '(ecution Ri"! – Co)*nnovation Ri"!

– Adoption Chain Ri"!

+. Developing a Commercialization Roadmap

. Conclu"ion"

%


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$odel Product-ur Previou" earning Tool

• A device that &ill enhance the "olu/ility o0 "ugar in co1ee.

• Some e(ample":

+


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2- $-R' SP--2S3333

• Ta!e out your *R home&or! 0or yourteam technology

•Get into your team"• Time to get to &or!3333


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'(ecutional Ri"!"

4


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ro uct ea zat onAccording to the 56ig 6ang

Theory7

8

Raj: Indian Ph.D.physicist who

cannot speak to

women

Leonard: Ph.D.physicist in love

with Penny;

roommate of

heldon

heldon:!heoretical Ph.D.

physicist who is

hi"hly socially

inept

Penny: #spirin"actress who works

at the $heese

$ake %actory&oward: '..(n"ineer who

desires women)

*+t can,t interestone


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Technology to $ar!et

9

(arly ta"e

!echnolo"y

'arket-%itted

Prod+ct Profit

Risk Red+cin"

Developmental

'ilestones

Risk Red+cin"

o-to-'arket

'ilestones

!eam


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'(erci"e: Development StepAnaly"i"

Market-ReadyAttribute

ExistinAttribute

!eve"o#$enta" %te#s

(ach !eam sho+ld list key market-ready attri*+tes and compare with the

e/istin" attri*+tes in the prod+ct prototype. 0sin" the differential) list the key

developmental steps re1+ired.

#dapted from $liff 2int"raff. – I$3 Instit+te – 4+ly) 3566


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'(erci"e: Development StepAnaly"i"

!eve"o#$enta"%te#

A##roxi$ate Cost

A##roxi$ate Ti$e

Res#onsib"e &rou#

I'Invo"ve$ent ()*+,

;

(ach !eam sho+ld list developmental steps re1+ired from previo+s ta*le

and appro/imate the cost and time re1+ired to accomplish each.

#dapted from $liff 2int"raff. – I$3 Instit+te – 4+ly) 3566

t t


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eve opmenta tepDependency and Time

Re


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Team

• hat team e(perti"e i" re

##


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?ocu"

• $o"t companie" 0ocu" attention one(ecutional "trategy:

– Technology ena/lement @ completing ri"!

reducing developmental mile"tone"• Some companie" "top here, other" move

to:

– $ar!et realization @ completing ri"! reducing

Go)to)$ar!et mile"tone"

• 6ut, i" thi" enough>

#%


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'(ternal Ri"!"

• Co)*nnovation Ri"!

• Adoption Chain Ri"!

#+


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$ichelin" PAB Sy"tem

• 2eed: "olution 0or at tire" – 8= o0 S driver" e(perience a at tire every 4 year"

– %4=,=== accident"Eyear due to lo& tire pre""ure

• *n0erior competition

– Sel0 "upporting, run)at tire" o0 Goodyear, 6ridge"tone,etc. &ere too heavy, "ti1 ride, poor $PG

– The"e occupied F# o0 mar!et

• PAB Sy"tem

– Run)at tire &ith "upport ring clamped to alloy &heel &ith

pre""ure monitoring device – $o"t radical and 0unctional change "ince the radial tire

#

lide adapted from ?!he @ide LensA *y Ron #dner 3563


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The PAB Sy"tem

#4


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'(pectation" and Reality

• $ichelin and Goodyear colla/oration lauche"product in %==#

• Rapid adoption on high end car"

• *n %==, HD Po&er" predict" = o0 car" &illhave 5run)at7 tire" /y %=#=

• %==4, in! &ith Ionda, PAB on -dde""y ande(tended %)year &arranty

• *n %==9, the PAB "y"tem &a" di"continued&ith huge corporate lo""

#8

lide adapted from ?!he @ide LensA *y Ron #dner


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hat Iappened>

#9

'ichelin,s Bormal C+siness Practice:

@hat @as Re1+ired for +ccessf+l P# C+siness Practice:

Vehicle Manufacturer Driver/Customer Michelin Tires

Tire Dealer Driver/Customer Michelin Tires

Vehicle

Manufacturer Driver/Customer

Michelin PAX

Tire System

Tire

Dealer

Service Garage



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earning"

• ?or "ucce""0ul product" to produce revenue,you mu"t manage more than your internaleco"y"tem Jinnovation, mar!eting ande(ecutionK, you mu"t manage your e(ternaleco"y"tem a" &ell3

• $ichelin learned and 0ound an eco"y"tem 0orthe PAB Sy"tem @ the S $ilitary:

#

DefenseDepartment

Defense ServiceGarage

Michelin PAXTire System

Vehicle Manufacturer



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Ri"!" to Realizing *nnovationLalue

• Co-Innovation Risk re


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6egin &ith the 'nd in $ind

• Traditional $ar!eting training 0ocu"e" onthe internal company eco"y"tem:

– *nnovation management

– Cu"tomer deMnition and engagement – '(ecution o0 adverti"ing, "ale", di"tri/ution,

legal IR and Mnance

• Io&ever, the /roader e(ternal eco"y"tem

i" o0ten ignored or addre""ed in too littledetail

%=


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Co)*nnovation Ri"!

%#

'o"ia

(G Phone )perator

Component *

Component (

Component +

)perator



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Co)*nnovation Ri"!

%%

• $olla*oration E Dependence

• !he joint pro*a*ility that all

innovations are s+ccessf+l will

determine when and if yo+r

prod+ct will *eF

• #li"nment is re1+ired:• Reso+rces

• Profits• trate"y• Relationship



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ho Are Nour Co)*nnovator">

%+

Co-Innovators I$#ortan.e to )our 'rodu.t(-/ to / ith 0averaei$#ortan.e,

(ach !eam sho+ld +se its technolo"y9prod+ct description to identify at least

two co-innovators important to yo+r prod+ct and rate these accordin" to

yo+r +nderstandin" of their importance to yo+r s+ccess.


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Adoption Chain Ri"!

• Cu"tomer /eneMt" are perceived a" 2-T A6S-T',/ut R'AT*L' to: – Pre"ent product" J-Oce %==+ v" -Oce %==9K

– Competition

– Current activitie" or operating procedure"

– Co"t o0 change

– Revenue up"ide

– -perational "treamlining o1ered

• Thu" mar!et upta!e and price agreement i" dependent

on the CST-$'RS P'RSP'CT*L' and your a/ility to&or! in the eco"y"tem to get them to adopt Jpay 0orand u"eK your product

%


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Digital ?ilm

*nnovation": Digital Mlmproce""ing andprojection•5DLD7 0orm, rapid

di"tri/ution, le"" piracy,improved picture re"olution,cheap reproduction, +D

•Iuge /eneMt" to Mlmindu"try and Mlm goer"

•#;;8 @ DP projector

•#;;; @ T+ line"

•All in order @ /ut no adoption

hat a/out the theater"&ho "ho& the Mlm">•9=)#==,=== to purcha"e theprojector

•S&itching co"t" too high•2o regulation or incentive o0increa"ed cu"tomer valuecould create adoption

%4



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hat Are Nour AdoptionChain Ri"!">

%9

%u##"iers3Inter$ediaries and4a.i"itatin 4a.tors

I$#ortan.e to )our 'rodu.t(-/ to / ith 0averaei$#ortan.e,

(ach !eam sho+ld +se its technolo"y9prod+ct description to identify at least

three s+ppliers) intermediaries and facilitatin" factors important to yo+r

prod+ct and rate these accordin" to yo+r +nderstandin" of their importance

to yo+r s+ccess.


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Commercialization Roadmap• *denti0y your cu"tomer" needJ"K

• *denti0y your part, your product, &hat you &ill deliver

• *denti0y your Mnancial and e(ecutional ri"!"• *denti0y your "upplier" and negotiate deal "tructure"

• *denti0y intermediarie" and channel", tho"e &ho "tand /et&een you and yourcu"tomer

• *denti0y the 0acilitating 0actor" J&hat align" the "upplier" and intermediarie" tocolla/orateK

• *denti0y e(ternal eco"y"tem ri"!" – Co)invention ri"!"

– Adoption chain ri"!"

• "e 5&reen 5iht,7 5 )e""o 5iht,7 and 5Red 5iht7 to identi0y alignment,agreement and incentive to participate &ith you

• All )e""o and Red 5ihts @ &or! to Mnd an alternative, via/le "olution *TIthem

• pdate Roadmap


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hat Do the Color" $ean>

• &reen – Alignment o0 intere"t" and goal"

– *ncentive plan &ith accepta/le mutual /eneMt

– Plan deMned, &ith re"pon"i/ilitie", con"e


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2avigating a Changing Road

+=

)l% Commerciali2ation

!oa%map 3ith

!oa%4loc"s

!elocate

#re there elements that arec+rrently *+ndled in one location

that co+ld *e more prod+ctively

*+ndled in a different locationG

A%%

#re there elements that arec+rrently a*sent whose addition

wo+ld facilitate prod+ctive new

connections or increased

efficiencyG

Su4tract

#re there elements whoseelimination wo+ld add more via*ility)

or +ltimate ease of operation) than

wo+ld *e taken away from val+e

creationG


'e Commerciali2ation

!oa%map 3T5)6T

!oa%4loc"s

Com4ine

#re there elements thatare c+rrently separated

that co+ld *e

prod+ctively com*inedG

Separate

#re there elements thatare c+rrently com*ined

that co+ld *e

prod+ctively separatedG


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Sony Reader v" AmazonQindle

+#

Sony

!ea%er !etailers

# n" Screen

)ther

Components

Sony D!M

#n% Customer

Authors Pu4lishers Sony Connect7com

Ama2on8in%le Ama2on7com

3ireless

Connectivity

Ama2on D!MAn% )ther

Components

#n% Customer

Authors Pu4lishers


o ove r"t r ot o


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o ove r"t, r ot o$ove ?ir"t> @ That i" the

ue"tion

+%

Co$#"e$entor Co-Innovation Cha""ene5oer 6iher

Innovator

Exe.ution

Cha""ene

5oer

uadrant #: First in Getsthe Win: 6a"eline level o0

early)moveradvantage

uadrant +:Hurry Up andWait: Reducedlevel o0 early)

moveradvantage

6iher

uadrant %:Winner TakesMore: *ncrea"ed level

o0 early)moveradvantage

uadrant :Depends: evelo0 early)moveradvantage

depend" on&hich challengei" re"olved Mr"t

%irst-mover matri/ for determinin" relative advanta"e from early entry as a f+nction of the

level of innovator e/ec+tion challen"e and complementor co-innovation contri*+tion and

challen"e. 7#dapted from #dner and Hapoor) 35658.


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The iPhone '(ample

++


iPhoneSingle 'etor"

)perator

i)SCarryover:

iTunes

(Carryover):

#n% Customer

Carryover:iTunes Softare

Expansion Stage 1

DevelopersExpansion Stage 1

App Store

Expansion Stage 2 Multi-Carriers

Expansion Stage 2

3ireless Synch


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2o& it i" Pure Competition

+

Developing Nour -&n


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Developing Nour -&nCommercialization Roadmap

Develop an -utline o0 the 0ollo&ing a" it addre""e" N-R

PR-DCT:•Chie0 cu"tomer" needJ"K

•hat part &ill you &ill deliver>

• Nour !ey Mnancial and e(ecutional ri"!"

• Nour !ey "upplier", intermediarie" and channel"

• The !ey 0acilitating 0actor" 0or each•*denti0y e(ternal eco"y"tem ri"!"

– Co)invention ri"!"

– Adoption chain ri"!"

•"e 5&reen 5iht,7 5 )e""o 5iht,7 and 5Red 5iht7 to identi0yalignment, agreement and incentive to participate &ith you

•All )e""o and Red 5ihts @ !no& that you mu"t &or! to Mnd analternative, via/le "olution *TI them

+4


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+8

$ap *t3333

Supplier *

Supplier (

Supplier +

Co-innovation Partner

9our

Pro%uct

Delivery nterme%iary

Co-nnovation Partner

6ser

Delivery nterme%iary

Co-A%option Partner

Co-A%option Partner

Mar"et !ea%y

Pro%uct


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Conclu"ion"

• hat are the !ey e(ecutional ri"!" 0acing yourtechnology>

• hat are the !ey co)innovation ri"!" 0or yourtechnology> ho can "upply the"e innovation" @

partner"hip", product development partner",other">

• hat are the !ey adoption chain ri"!"> homu"t you partner &ith to allo& rapid and deep

adoption o0 your technologyEproduct>• hat i" your mo"t important 2'BT ST'P>

+9


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©2012 IC2 I tit t t th U i it f T t

Contact

Gregory P. Pogue, Ph.D.*C% *n"titute

The niver"ity o0 Te(a" at Au"tin

gpogueic%.ute(a".eduJ4#%K 48=)+9#9 JcellKJ4#%K 94);8# JoOceK

S!ype *D: pogo49=

&&&.ic%.ute(a".edu

+
mailto:[email protected]://www.ic2.utexas.edu/http://www.ic2.utexas.edu/mailto:[email protected]

Documents

GPP.developing a Commercial Roadmap