Global Commercialization of Technology
From the Mind to the Market
Richard Kivel
• Chairman: Rhapsody Biologics
• Executive Chairman: ViS Research
• Former Chairman & President: MIT Enterprise Forum Global
• [email protected] / Twitter: @Kivel1
Goals of this Seminar
•Discuss the Foundations of Entrepreneurship
•Develop a general understanding of Global Technology Sales
•Discuss various Business Models and Customer Segments
•Review actual Case Studies of Technology companies applying Four Important Rules
History:
Wealth and jobs created by Control of Physical Wealth
•Steel•Oil•Land
•Railway•Shipping•Textiles
Future: Wealth and jobs created byControl and Creation of Knowledge• Systems• Methods• Process• Intellectual Property
Entrepreneurship Continues to Change
The EntrepreneurWhat does the successful high tech entrepreneur look like?
• Integrity
• Leadership
• Impatient; bias toward action
• Modest ego. Seeks and accepts coaching. Recognizes, and hires to overcome weaknesses.
• Pragmatic; willing to compromise Rejoices in others’ victories
• Driven to solve a valuable problem for customers
• Able to attract world class talent.
The Entrepreneurial Ecosystem
Success
Entrepreneurship
Innovation Commercialization
• Focus on entire entrepreneurial ecosystem Innovation as both a catalyst and
consequence of entrepreneurship
• Iterating at all times
• All three activities are critical
in order to succeed
Quality of technology Strong patent(s) Supports several new products Large market potential
Quality of management Focused strategy Thorough market understanding Realistic product development
plan
Success Factors – Commercializing of Technology
Quality investorsTrack record building successful businessesNetwork of connections with partners/customersPersonal involvement with businessAccess to money over long term
PassionTechnologistsManagementInvestors
The Business Model
def: A method by which a firm uses its resources (cash, technology and people) to offer its customers better value than its competitors and make money doing so.
It tells who pays, how much and how often.
Components of the Business Model
1. Value Proposition 2. Market Segment 3. Value Chain Structure 4. Position in the Value Network 5. Revenue Generation and Margins 6. Competitive Strategy 7. Stage of Development
Different Models to Evaluate
Direct Mass Media
Retail Telemarketing/ Phone
Sales
Channels, Distributors and Partners
Trade Shows and Conferences
OEM Channels Internet - Web
Different types of Customer Segments
What Business Model and Why?
• Apple - Dell
• Citibank - American Express
• SouthWest - Virgin Air
• Patek Philippe - Swatch
• Cuisinart – Nespresso
• Bentley – Cadillac
• Vertu – Nokia
• AT&T vs. SKYPE
Direct SalesConsumer or Business
Positives:• High Contact• Customer relations• More Control• Multi-Purpose • Experts in the field
Negatives:• Free Consulting• May not like rep or rep
leaves firm• High Cost• Retention
Distributors & Channel Partners
Positives:
• Cost of Sale is Low
• Hands-off Sales
• Exposure in new markets
• Credibility
• Competitive Edge
Negatives:• Up-front fees• No control• Distant clients• Performance• Technical Pressure• Require lots of
attention and training
OEM Channels(Original Equipment Manufacturer)
Positives:
• Prestige and Publicity
• List Sharing
• Royalties / steady revenue stream
• Increase Market Presence
• Technical Control
Negatives• Competitor envy• Technical pressure• Channel Conflict• Your reputations are
linked
Other Examples
• Retail
• Internet
• Service Providers…….
The 4-P’s
FOUR RULES TO FOLLOW
Rule 1: Succeed Close to HomeCase Study: Baufest
(If you don’t know where you’re going you’ll probably wind up somewhere else)
• Anyone can go Global: Doing it Profitably is the real challenge
• Commitment from Management (without “support” your plan is a dream)
• Establish a base of success • Enter new Markets carefully
– Language– Business Models– Employment Laws & Regulations – Market– Competitors
Rule 2: Leverage PartnersCase Study: MolecularWare
• Understand core competency • Choose Partners who give multiple points of
entry to the market• Manage those partnerships carefully• Hire and attract the best people• Raise money when it is available
Rule 3: Think Globally Case Study: ViS Research
• Global distribution of talent and resources• Meaningful (not necessarily profitable)
partnerships are critical in the early days• Close the big names at (almost) any cost• Quality Quality Quality
Rule 4: Create MagicCase Study: DEKA
Collaboration is key for success in early stage ventures External support can play an important role Measure success – continuously: assess, evaluate and adapt Take risks early, but leverage partners Look towards the future and identify trends Act Boldly & Change the World
Summary / Key Takeaways
Global Commercialization of Technology
From the Mind to the Market
Thank you
Richard Kivel
Twitter: @kivel1
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