1/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

From Technology to Business Idea (or vice versa)

A few words about Opportunity, Benefits & “USP” Key ingredients for a start-up Business Innovation – benefits, dimensions & model Stages in the start-up process

2/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

A Few Words On Opportunity - 1

What is it? A problem, a need, a desire that can be well identified … … and for which a solution can be developed to delight well identified customers

Where to find it? 1. Unexpected occurrences (IBM - first computers)2. Incongruities (Alcon – cataract; Ships - container)3. Process needs (Newspapers – speed printing & advertising as societal innovation)4. Industry and market changes (New/De-regulation – telephone operators)5. Demographic changes (Aging of population – house services for elderly

people)6. Changes in perception (Fashion – Benetton)7. New knowledge (Scientific/Technical – Genome, wireless communications, etc.)8. …

Source: The Discipline of Innovation – Peter Drucker (HBR – August 2002)

3/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

A Few Words On Opportunity - 2

How to identify it?

Constant/systematic look for it, permanent attitude, mindset

How to present your solution?

What are the unique customer benefits

What is the market for it and the competition

How money can be made out of it

4/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Customer Benefits (vs. alternatives/competition)

Cheaper Faster Lighter Safer Simpler Smaller

More attractive More comfortable More convenient More flexible More reliable More ...

Example: It is 60% faster than competitive products, such as…

+ What is the market for it? What kind of customers?

5/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Technology and Innovation Environment

D

evelo

pmen

t

Research T

NATURE

MARKETSUniversity Industry

MarketingI

Technology Push Market Pull

6/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

USP: Positioning & Differentiation Statements

Positioning Statement For (target customer) Who (statement of needs) Our Product/Service*, (name), is a (product/service category) That provides (key statement of benefit).

Differentiation Unlike (the alternative product – competition & its limitations) Our Product provides (statement of primary differentiation).

Have a Strong, Crisp, Simple USP for your target market* or Business System

Should

be le

ss t

han 4

00 ch

aracte

rs

7/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Key ingredients for a start-up

Management Team

Business Idea

Market

New Enterprise

8/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Initial Evaluation of Business Idea

1. What exactly is innovative? How better performing? Competitive Advantage? Protectable?

2. What real/strong need does it meet? Who is the customer? How can he/she be reached?

3. How large is the market? How fast is the market growing? What is the competition?

4. What are the costs involved? What price can be asked? How the product/service makes money?

5. Is the Business Idea doable in a reasonable time frame and with a manageable risk?

Is it “greatly”(better) solving an important and valuable problem ...… for well identified customers who have money…

… who are ready to pay the price and buy soon …

… and will buy more in the near future?Adapted from Ken Morse at MIT Nece

ssary T

esting & Adjustm

ents:

Talk to many p

otential

Customers

9/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Nine Attributes of the Entrepreneur

A high level of drive and energy Enough self-confidence to take

carefully calculated risks A clear idea of money as way of

keeping score, and as a means of generating more money still

The ability to get other people to work with you and for you productively

High but realistic achievable goals

Belief that you can control your own destiny

Readiness to learn from your own mistakes and failures

A long term vision of the future of your business

Intensive competitive urge, with self-imposed standards.

Source: Stevenson Howard, Entrepreneurship Venture, Harvard Business Press, 1999

10/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

Prize/Award

Stages in start-up process & financing for growth

Rea

lizat

ion

of g

ains

Source: Adapted from Thomas Kubr, el. al, Planning for Growth, McKinsey & Company, Inc, 1997

Inte

rest

by

inve

stor

s

Business Planning Fina

ncin

gD

ecis

ion

Industrial Partner / Public Support Program

Own Means, FFF

Business Angel

Venture Capital 1

Venture Capital 2

VC or Bank Loans

Established Business

Fina

ncin

g gr

owth

Start-up andexpansion

Capital Market

IPO

Development of Business idea

11/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

A rich and dense ecosystem

The ecosystem

Poles of excellence

Training

Incubators& coaching

Funding ofresearch

Financiers

Generate Develop Launch Grow

Innovation &Tech. Transfer

12/12Executive MBA in Management of Technology - MoThttp://mot.epfl.ch Jean Micol

From Technology to Business Idea (or vice versa)

Moving from researcher to entrepreneur: It is a different mindset It can be adopted by any one It can be a fantastic adventure

Additional info on http://mot.epfl.ch under links