Management of Technology & Innovation MKTG5603 ... · • Customer solutions ... Marketing Resources and Competencies of Firm ... Involvement of customers in NPD? Past commercialisation

©Mazzarol 2015 all rights reserved

Management of Technology & Innovation MKTG5603 &

Biotechnology Commercialisation MKTG5604

Workshop 3 Part A: From

Discovery to DevelopmentProfessor Tim Mazzarol – UWA Business School

UWA Business School MBA Program

M Biotech Program

[email protected] MKTG5603

BC MKTG5604



The Front-End Work Process

Sources: Cooper & Edgett (2005)

Gate

1 Stage 1 Gate

2 Stage 2 Gate

2 Stage 3

Idea

Screen

Second

Screen

Go To

Development

Discovery

(Ideas)

Project

Scoping

Build

Business

Case

Development

The Front-End Work


Spiral development

Sources: Cooper & Edgett (2005)Sources: Cooper & Edgett (2005)

Gate

2 Stage 2Gate

3 Stage 3 Gate

4 Stage 4

VoC User

needs &

wants

study

Testing &

Validation

Build

Business

CaseDevelopment

Full

Proposition

Concept

Test

Rapid-

Prototype

& Test

First

Prototype

& Test

Next

Prototype

& Test

Field Trial

Beta Test


Discovery Stage for NPD

Source: Cooper (2011)

Areas of

Strategic

Focus

Industry

Analysis

Company

Analysis

Opportunities

• Unmet needs

• Problems

• Emerging areas

• Profit areas

• Voids

New Products &

Solutions

• Major initiatives

• Customer solutions

• Product roadmap

• Platforms / programs

Strategic Exercise & Arenas

Strategic Approaches:• Disruptive Technologies

• Alternative scenarios

• Peripheral vision

Other ideation methods:• Patent mapping & mining

• Internal idea capture

• MRG off-site events

VoC Research:• Ethnography

• Lead user & Focused visits

• Customer designs

Open innovation:• Partners & vendors

• R&D community, universities

• SMEs & start-ups

Great New

Product

Opportunities

Directed Fundamental Science Research & Technology Development


From Discovery to Development

• Invest in a “solid front end” to assess

the market and product design

concept.

• Do the “Voice of Customer” work well

to get a clear market focus.

• Sharp early “product definition”

before any development commences is

important.


NPD game is won or lost in the first five plays. Front-end load your projects

and then manage the front-end of the innovation process to get rid of the

fuzziness!


Stage 1 Actions - Scoping


Purpose of Stage 1: Quick assessment of the project to determine if worth moving to Stage 2.

Actions in Stage 1:

• Preliminary market assessment – quick scoping of market to assess likely product acceptance,

mainly desk-top analysis.

• Preliminary technical assessment – conceptual assessment of technical feasibility of the product,

identify any technical risks, ability to produce, IP rights issues and need for partnering.

• Preliminary business & financial assessment – assessment of commercial risk and forecast of

future financial need without elaborate NPV.

• Recommendation and action plan for Stage 2 – go/kill recommendation and Action Plan (e.g.

timeline, people, objectives).


Stage 2 Business Case


The Product Defined:What will be developed?

• Target market

• Product concept

• Positioning & benefits

• CVP

• Attributes, features &

requirements

• High level specifications

I

The Project Justified:Why should we invest?

• Business analysis

• Financial analysis &

justification

• Risk assessment

II

The Action Plan:How to get there & what

resources needed?

• Detailed action plan

• Plan through launch

• Launch plan

• Operations plan

• Business development

plan

III


Assessing Customer & Market Risks

Marketing Resources and Competencies of Firm

Next step

Does the SME have the “Marketing” resources and competencies needed to

commercialise the innovation?

yesno

Can it buy them or develop them

inside the firm?

yes no

Is a partnership with business

complementors possible?

yes Strategic choiceNo choice:

partnership

no No choice: aloneDelegated

commercialisation

Economic barrier to entry and to survival

Starting sector

STOP, sell or delegate

Appropriable rent

Source: Santi and Reboud 2003


IDD Market Index

Lead customer in place?

Customer collaboration over NPD?

Customer opportunities research?

Customer risk-benefit analysis?

Compatibility assessment?

Post adoption tests & evaluations?

Pre adoption tests & evaluations?

Ease of customer understanding?

Product pricing strategy?

Customer Value Proposition?

Technical Resources and Competencies of Firm

Next step

Does the SME have technologicalresources and competencies to commercialise the innovation?

yesnoIt has not

It has but they are not sufficient to sustain innovation

Can it buy them or develop them inside

the firm?

yes no

Is a partnership with

technological complementors

possible?


partnership


commercialisation

Can it have an access to them ?

Technological barriers to entry

Emergent sector


Appropriable rent



IDD Innovation Index

Involvement of employees in NPD?

Involvement of customers in NPD?

Past commercialisation experience?

Confidentiality agreements in use?

Patents in place or pending?

Spoken to IP rights lawyers?

Independent testing completed?

Able to develop prototype alone?

Is innovation a major focus of firm?

Have formal NPD process?

Financial Resources and Competencies of Firm

Next step

Can the SME raise the volume of resources necessary to settle durably on the market ?

yes no

Can it find any venture capital?

yes no

Is a partnership with

competitors possible?


partnership


Commercialisation

Barriers to entry: volume of resources

Growing sector


Appropriable rent



IDD Resource Index

Have management board?

Identified VC funding sources?

Explored government support?

Financial resources adequate?

Physical resources adequate?

Staffing resources adequate?

Can find external help if needed?

Have experienced NPD team?

Have all competencies needed?

Have technical resources for

prototype?


IOTA Chart – Impact of Opportunities and Threats Analysis

Area of focus for scanning Threats How likely?

Timing? Impact –So what?

Opportunities

Market changes & shifts - customers

Changes in competition & strategy

Changes in value chain (e.g. suppliers, distributors, retailers)

Technology trends, changes & disruptions

Legislative & political changes, events, dangers

Social & demographic trends, changes

Economic changes, threats & dangers


IDD Strategy Index

Have complete financial model?

Risk assessment completed?

Have all compliances &

authorizations?

Considered government regulations?

Fully assessed complementary

actors?

Fully assessed competitor reactions?

Fully assessed threat of alternatives?

Fully assessed supplier power?

Fully assessed customer power?

Have formal, written business plan?


Product Road Mapping

Source: Lichtenthaler (2008)

• Roadmaps provide a consensus

view of the landscape of future

technology.

• Types:

– Science and technology roadmaps

– Industry technology roadmaps

– Corporate or product roadmaps

– NPD portfolio development

roadmaps

• The focus should be on

integration of all aspects of the

technology or innovation and

NPD process into the wider

business strategy and open

innovation environment.


• Identification

• Selection

• Acquisition

• Exploitation

• Protection

• Strategy– Business strategy for product

– Differentiation / Cost Leader

• Innovation– What is the value add?

– What is the CVP?

• Operations– NPD process

– Marketing strategy

– Production strategy

– Distribution strategy

Technology Management

Framework

Source: Phaal et al. (2004)


Technology Roadmap

Framework


Key principles:

• Link market, product and technology activities against the time line.

• Use visual display to communicate the process to everyone.

• Consider the purpose of the product roadmap and the level of complexity.


Technology Roadmap

Purpose & Format



Technology Roadmap

Purpose & Format


Product PlanningService/ capability planning

Strategic Planning Long Range Planning

Knowledge Asset Planning Program Planning

Process Planning Integration Planning

Customer Value

Proposition

Distinctive Competencies

Processes

Positions

Paths

Products & Services

Dynamic Capabilities

OpportunitiesThreats

Weaknesses Strengths

• Competitive rivalry

• New market entrants

• Substitutions

• Regulatory

• Supplier power

• Buyer power

• Social & demographic

• Environmental

• Unmet market needs

• Ability to add value

• Ability to reduce cost

• Niche or mass-market

• Product innovation

• Process innovation

• Market innovation

Process weaknesses:

• Management

• Organisation

Learning

Positional weaknesses:

• Technical, financial &

physical assets

• Systems

Path weaknesses:

• History, culture

• Valuable

• Rare

• Difficult to copy

• No substitutes

• Organisational ability

Types of assets:

• Tangible - Intangible

• Isolating mechanismsPath

dependencies

Gaps in

knowledge

& resources

Technical,

financial &

Physical

assets

Coordination &

Learning

VRIO

framework

Business Model Analysis

Lean Canvas Lean Start-Up

©Copyright Tim Mazzarol (2015) all rights reserved


Group Discussion

Working in teams

• Review the firm’s IDD results from the

diagnostic report.

• Identify what areas are strong and what

are weak.

• Make a list of the key issues relating to:

– Marketing resource gaps

– Technical resource gaps

– Financial resource gaps

– Human resource gaps

• Is partnering required?

– If so what will this involve?

• What strategy should be followed?

• Prepare a Technology Roadmap for

your project.

End of Presentation

Documents

Management of Technology & Innovation MKTG5603 ... · • Customer solutions ... Marketing Resources and Competencies of Firm ... Involvement of customers in NPD? Past commercialisation