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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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©2012 IC2 Institute at the University of Texas atAustin
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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©2012 IC2 Institute at the University of Texas atAustin
'(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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©2012 IC2 Institute at the University of Texas atAustin
$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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©2012 IC2 Institute at the University of Texas atAustin
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
lide adapted from ?!he @ide LensA *y Ron #dner
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©2012 IC2 Institute at the University of Texas atAustin
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
lide adapted from ?!he @ide LensA *y Ron #dner
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Ri"!" to Realizing *nnovationLalue
• Co-Innovation Risk re
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©2012 IC2 Institute at the University of Texas atAustin
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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©2012 IC2 Institute at the University of Texas atAustin
Co)*nnovation Ri"!
%#
'o"ia
(G Phone )perator
Component *
Component (
Component +
)perator
lide adapted from ?!he @ide LensA *y Ron #dner
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©2012 IC2 Institute at the University of Texas atAustin
Co)*nnovation Ri"!
%%
• $olla*oration E Dependence
• !he joint pro*a*ility that all
innovations are s+ccessf+l will
determine when and if yo+r
prod+ct will *eF
• #li"nment is re1+ired:• Reso+rces
• Profits• trate"y• Relationship
lide adapted from ?!he @ide LensA *y Ron #dner
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©2012 IC2 Institute at the University of Texas atAustin
ho Are Nour Co)*nnovator">
%+
Co-Innovators I$#ortan.e to )our 'rodu.t(-/ to / ith 0averaei$#ortan.e,
(ach !eam sho+ld +se its technolo"y9prod+ct description to identify at least
two co-innovators important to yo+r prod+ct and rate these accordin" to
yo+r +nderstandin" of their importance to yo+r s+ccess.
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©2012 IC2 Institute at the University of Texas atAustin
Adoption Chain Ri"!
• Cu"tomer /eneMt" are perceived a" 2-T A6S-T',/ut R'AT*L' to: – Pre"ent product" J-Oce %==+ v" -Oce %==9K
– Competition
– Current activitie" or operating procedure"
– Co"t o0 change
– Revenue up"ide
– -perational "treamlining o1ered
• Thu" mar!et upta!e and price agreement i" dependent
on the CST-$'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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©2012 IC2 Institute at the University of Texas atAustin
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
lide adapted from ?!he @ide LensA *y Ron #dner
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©2012 IC2 Institute at the University of Texas atAustin
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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©2012 IC2 Institute at the University of Texas atAustin
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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©2012 IC2 Institute at the University of Texas atAustin
hat Do the Color" $ean>
• &reen – Alignment o0 intere"t" and goal"
– *ncentive plan &ith accepta/le mutual /eneMt
– Plan deMned, &ith re"pon"i/ilitie", con"e
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©2012 IC2 Institute at the University of Texas atAustin
2avigating a Changing Road
+=
)l% Commerciali2ation
!oa%map 3ith
!oa%4loc"s
!elocate
#re there elements that arec+rrently *+ndled in one location
that co+ld *e more prod+ctively
*+ndled in a different locationG
A%%
#re there elements that arec+rrently a*sent whose addition
wo+ld facilitate prod+ctive new
connections or increased
efficiencyG
Su4tract
#re there elements whoseelimination wo+ld add more via*ility)
or +ltimate ease of operation) than
wo+ld *e taken away from val+e
creationG
lide adapted from ?!he @ide LensA *y Ron #dner
'e Commerciali2ation
!oa%map 3T5)6T
!oa%4loc"s
Com4ine
#re there elements thatare c+rrently separated
that co+ld *e
prod+ctively com*inedG
Separate
#re there elements thatare c+rrently com*ined
that co+ld *e
prod+ctively separatedG
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©2012 IC2 Institute at the University of Texas atAustin
Sony Reader v" AmazonQindle
+#
Sony
!ea%er !etailers
# n" Screen
)ther
Components
Sony D!M
#n% Customer
Authors Pu4lishers Sony Connect7com
Ama2on8in%le Ama2on7com
3ireless
Connectivity
Ama2on D!MAn% )ther
Components
#n% Customer
Authors Pu4lishers
lide adapted from ?!he @ide LensA *y Ron #dner
o ove r"t r ot o
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o ove r"t, r ot o$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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©2012 IC2 Institute at the University of Texas atAustin
The iPhone '(ample
++
lide adapted from ?!he @ide LensA *y Ron #dner
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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©2012 IC2 Institute at the University of Texas atAustin
2o& it i" Pure Competition
+
Developing Nour -&n
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©2012 IC2 Institute at the University of Texas atAustin
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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©2012 IC2 Institute at the University of Texas atAustin
+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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©2012 IC2 Institute at the University of Texas atAustin
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]