The New Environment for Tech Commercialization

The New Environment for Tech Commercialization

Kathleen Allen Ph.D.

Technology CommercializationTechnology Commercialization

What is it?

Why do we do it?

How can you make it work for you?

Technological ChangeTechnological Change

Entrepreneur

Emerging Customer Segments

Unsatisfied Existing Needs

New Customer Needs

New Methods of Manufacture &

Distribution

Technological Change

Higher Productivity &

Economic Growth

Today’s Technology EnvironmentToday’s Technology Environment

Key Factors

The Importance of SpeedThe Importance of Speed

Competitive advantage

More profit potential from shortened time to market

Fewer surprises

The Lack of ScarcityThe Lack of Scarcity

Knowledge products at the core of technology environment

KP defy the law of scarcity

No diminishing returns

Network efforts and economy of scale

The New Product DilemmaThe New Product Dilemma

Build new products

– Better

– Faster

– Cheaper

Types of TechnologyTypes of Technology

The Starting Point: Defining InnovationThe Starting Point: Defining Innovation

Invention v. innovation

Sustaining v. disruptive innovation (aka incremental v. radical)

Characteristics of Disruptive TechnologyCharacteristics of Disruptive Technology

Less profitable in the early years

Need mass market acceptance to achieve full value

Cheaper, smaller, simpler, more convenient

Display poor performance

Disruptive Technologies: Looking for a ProblemDisruptive Technologies: Looking for a Problem

Primary Disruptive Technologies for Next Decade

Primary Disruptive Technologies for Next Decade

Gene Therapy

Nanotechnology

Wireless

Why are Disruptive Technologies Important?Why are Disruptive Technologies Important?

Stats on the Best Product Development CompaniesResearch of R.G. Cooper

Stats on the Best Product Development CompaniesResearch of R.G. Cooper

49.2 % of sales from new products

49.2% of profits from new products

3.5 ideas before achieving one winner

ROI on successful new products is 96.9%

Payback in 2.49 years

Average market share = 47.3%

Why do concepts fail?Why do concepts fail?

Not Understanding the CustomerNot Understanding the Customer

No compelling storyNo compelling story

What’s the Compelling Story?What’s the Compelling Story?

Why you?

Why now?

How do you plan to change the world?

AKA: How do you heal the pain?

The Technology Commercialization Process

The Technology Commercialization Process

DiscoveryInvention Disclosure

Provisional Patent Decision

Technical Feasibility

ConceptInvestigation

Market Feasibility

CommercializationDecision

Prototype/Application

Development

LicenseStart-up

Acquisition

Market Launch

Bringing New Technology to MarketBringing New Technology to Market Patent Portfolio

Management

Feasibility

Analysis

Skills

Independent Prototype Builder

R&D Relationships- Managing RiskF. Peter Boer (1999) The Valuation of Technology

R&D Relationships- Managing RiskF. Peter Boer (1999) The Valuation of Technology

Opportunity

Certainty

Cost

Diversification

Finding &Screening Ideas

Finding &Screening Ideas

Conceptual Research

Conceptual Research FeasibilityFeasibility DevelopmentDevelopment Early

CommercializationEarly

Commercialization

SummarySummary

What is it? Tech commercialization is a parallel process of radical and incremental innovation, the determination of technical and business feasibility, the creation of intellectual assets, and the development of a plan to enter the market.

Why do it? To build a sustainable company

E-Teams for Commercialization Success

Marshall School of Business

School of Engineering

Keck School of Medicine

E-TeamsE-Teams

VR Systems

Engineering-IMSC

Business - MBA

Feasibility Analysis

•Market•Technology•Financial

Technology Teams – Fall 200116 E-Teams

Technology Teams – Fall 200116 E-Teams

G-Ceptors-CaltechJulie-Ann Pina

Melanie Corcoran

G-Ceptors-CaltechJulie-Ann Pina

Melanie Corcoran

VR Systems - IMSCDavid Groves

Greg WalbridgeSung Hoon Hong

VR Systems - IMSCDavid Groves

Greg WalbridgeSung Hoon Hong

Virtual Visit -BioMed.Jennifer Sullivan

Katlyn ChoHyoung Lim

Virtual Visit -BioMed.Jennifer Sullivan

Katlyn ChoHyoung Lim

CCG-NASAGary Hersch

CCG-NASAGary Hersch

Microwave Bonding-CaltechJohn FischerJohn Heckert

Microwave Bonding-CaltechJohn FischerJohn Heckert

Yima-IMSCKaren Corwin

Didi Yao

Yima-IMSCKaren Corwin

Didi Yao

VR SystemsDavid Groves

Greg WalbridgeSung Hoon Hong

VR SystemsDavid Groves

Greg WalbridgeSung Hoon Hong

Smithsonian Presentation

www.usc.edu/techalliance

Kathleen Allen Ph.D.Kathleen Allen Ph.D.

kallen@marshall.usc.edu

www.usc.edu/techalliance