Market driven research


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Market driven research

  1. 1. Market Driven Research Towards Creativity, Innovation and the Marketplace Mohd. Murray Hunter
  2. 2. Introduction <ul><li>Traditionally Research has been: </li></ul><ul><li>● Single disciplinary </li></ul><ul><li>● Followed personal interests of researchers </li></ul><ul><li>● Research output objectives: </li></ul><ul><li>► a paper </li></ul><ul><li>► a conference presentation </li></ul><ul><li>● Not part of any strategic research plan </li></ul>
  3. 3. Researchers’ Environment <ul><li>Teaching commitments </li></ul><ul><li>Intellectual and market isolation </li></ul><ul><li>Research driven by need of funding </li></ul><ul><li>Little expectation other than ‘traditional research output’ </li></ul><ul><li>‘ Lukewarm’ supportive environment </li></ul><ul><li>Something that is expected </li></ul>
  4. 4. Typical Research Model Idea from Research Institute, University faculty or individual within them Undertake study with objectives interesting to researchers Primarily single discipline approach Objectives based on discipline thinking Project results and conclusion Publish Paper at Conference Add to CV <ul><li>Little commercial interest: </li></ul><ul><ul><li>Private sector unaware </li></ul></ul><ul><li>No or limited economic study or little consideration to scale up potential </li></ul><ul><li>NB: to bioprocess engineer has this as a fundamental consideration (difference between scientist and engineer) </li></ul>
  5. 5. New Expectations <ul><li>Market driven </li></ul><ul><li>Collaborative and interdisciplinary </li></ul><ul><li>Industry partner </li></ul><ul><li>R&D&D or R&D&C&C </li></ul><ul><li>National Responsibility (driver of economic growth) </li></ul><ul><li>Bias towards applied research </li></ul><ul><li>Commercialisation is the desired output </li></ul>
  6. 6. Problems Associated with Commercialisation <ul><li>Market </li></ul><ul><li>Technology takers </li></ul><ul><li>Legal </li></ul><ul><li>Institutional </li></ul><ul><li>Technology </li></ul><ul><li>Other </li></ul>
  7. 7. Market Problems <ul><li>Failure of invention to meet market needs </li></ul><ul><li>Small size of target market </li></ul><ul><li>Lower price than expected </li></ul><ul><li>Unable to gain distribution </li></ul><ul><li>Lack of market research </li></ul>
  8. 8. Technology Taker Problems <ul><li>Lack of willingness of companies to take up technology </li></ul><ul><li>Disagreements on terms and conditions of technology transfer </li></ul><ul><li>Perceived complexity of technology and risk </li></ul><ul><li>Limited human resources on the part of companies to put time into implementing the new technology or launching the product </li></ul><ul><li>Not familiar with industry </li></ul><ul><li>Financially weak </li></ul><ul><li>Returns not attractive enough </li></ul><ul><li>High capital expenditure not worth the risk </li></ul><ul><li>Limited distribution capability </li></ul>
  9. 9. Legal Problems <ul><li>Lack of Clear and clean patent ownership </li></ul><ul><li>Government regulations </li></ul><ul><li>Legal costs </li></ul><ul><li>Due diligence and burden of risk </li></ul><ul><li>License exclusivity </li></ul><ul><li>Long period of time for patent grant </li></ul>
  10. 10. Institutional Problems <ul><li>Too many people to deal with at the university or research institute </li></ul><ul><li>Low priority by university administrators to allocate resources for patents, contract research, consultancy, technology transfer and education services </li></ul><ul><li>High cost of licensing </li></ul><ul><li>Post license technical support offered by university </li></ul><ul><li>Researcher leaves institution </li></ul><ul><li>Researchers too many projects (time constraint) </li></ul><ul><li>Lack of expertise in commercialisation unit </li></ul>
  11. 11. Technology Problems <ul><li>Technology not complete </li></ul><ul><li>Research Investors expect complete technology transfer </li></ul><ul><li>Development </li></ul><ul><li>Commercialisation </li></ul><ul><li>Strong </li></ul><ul><li>Moderate/ </li></ul><ul><li>Strong </li></ul><ul><li>Weak </li></ul><ul><li>Tan Sri Dr. Yusof Basiron </li></ul>Laboratory Results Pilot Plant/ Prototype Industrial Scale Technology Transfer
  12. 12. Other Problems <ul><li>Unreliable financial estimates </li></ul><ul><li>Rely on Government grant that never comes </li></ul><ul><li>Poor follow up </li></ul>
  13. 13. The Elements of a Successful Research Cluster <ul><li>1. A creative environment for </li></ul><ul><li>motivation and productivity </li></ul><ul><li>2. Innovation to develop and screen </li></ul><ul><li>ideas </li></ul><ul><li>3. A strategic approach to be </li></ul><ul><li>relevant to the marketplace </li></ul>
  14. 14. A Creative Environment
  15. 15. A Creative Person <ul><li>enthusiastic, risk taker, can think both serially and laterally, good at assessing opportunities, friendly, has good technical know-how, able to access what he or she doesn’t know, broad vision, an eye for detail, strong motivation to overcome hurdles, can give honest assessments and is aware of their personal strengths and weaknesses </li></ul>
  16. 16. University Organisation <ul><li>Hierarchical </li></ul><ul><li>Process orientated </li></ul><ul><li>Procedurised </li></ul><ul><li>Departmentalised </li></ul><ul><li>Strong “conformity” values </li></ul><ul><li>Social goals verses performance goals </li></ul><ul><li>THIS IS AN EXCELLENT ORGANISATION DESIGN FOR A TEACHING INSTITUTION </li></ul>
  17. 17. Conflict Between Organisational Design and the Creative Individual <ul><li>Hierarchical design excellent for time and motion activities – In macro terms a teaching organisation is a time and motion logistical exercise </li></ul><ul><li>An organic organisational structure has been found to be much more supportive of a creative environment </li></ul>
  18. 19. Desired Characteristics of a Research Cluster (Matching RM9 Desired Output Objectives) <ul><li>Strong Science Base Leading research organisations: University departments, hospitals/medical centres and schools, charities, critical mass of researchers, world leading scientist(s) </li></ul><ul><li>Comment: Remote from us </li></ul><ul><li>Entrepreneurial Culture Commercial awareness and entrepreneurship in universities and research institutes, role models and recognition of entrepreneurs, second generation entrepreneurs. </li></ul><ul><li>Comment: Need to create </li></ul><ul><li>Growing Company Base Thriving spin-out and start up companies, more mature role model companies. </li></ul><ul><li>Comment: We are at a great disadvantage, have to work hard on this issue </li></ul>
  19. 20. <ul><li>Ability to Attract Key Staff Critical mass of employment opportunities, image/reputation as biotechnology cluster, attractive place to live. </li></ul><ul><li>Comment: Have to compensate through strong collaboration </li></ul><ul><li>Premises and Infrastructure Incubators available close to research institutes, premises with wet labs and flexible leasing arrangements, space to expand, good transport links, motorways, rail, international airport. </li></ul><ul><li>Comment: Time may improve this </li></ul><ul><li>Availability of Finance Grant agencies, Venture capitalists, business angels </li></ul><ul><li>Comments: Have to be very active in this area </li></ul>Desired Characteristics of a Research Cluster (cont..)
  20. 21. <ul><li>Business Support Services and Large Companies Specialist business, legal, patent, recruitment, property advisors, large companies in related sectors (healthcare, agrichemical, chemical, food processing) </li></ul><ul><li>Comment: A disadvantage, have to work hard on this </li></ul><ul><li>Skilled Workforce Skilled workforce, training courses at all levels. </li></ul><ul><li>Comment: Require coordinated programs </li></ul><ul><li>Effective Networking Shared aspirations to be a cluster: regional trade associations, shared equipment and infrastructure, frequent collaborations . </li></ul><ul><li>Comments: Need to work hard </li></ul><ul><li>Supportive Policy Environment National and sector innovation support policies, proportionate fiscal and regulatory frameworks, support from RDA’s and other economic development agencies, sympathetic planning authorities. </li></ul><ul><li>Comment: Positive retric there </li></ul>Desired Characteristics of a Research Cluster (cont..)
  21. 22. What is Innovation?
  22. 23. Examples of Innovation
  23. 24. Examples of Innovation
  24. 25. Examples of Innovation
  25. 26. Examples of Innovation
  26. 27. Examples of Innovation
  27. 28. Examples of Innovation
  28. 29. Examples of Innovation
  29. 30. Examples of Innovation
  30. 31. Examples of Innovation
  31. 32. Vanilla Breakthrough?
  32. 33. Cationic Breakthrough?
  33. 34. To soap or not to soap?
  34. 35. Is this a breakthrough or not?
  35. 36. Dispelling the myths about innovation <ul><li>Less than 5% of new products launched on the market are successful </li></ul><ul><li>Out of 100 new ideas, less than 2 become a commercial reality </li></ul><ul><li>Most companies are followers and not innovators (even the Body Shop) </li></ul><ul><li>Very few really novel innovations are ever launched commercially </li></ul><ul><li>Most new products are incremental steps in enhancement, rather than something completely new (similar to the automobile industry) </li></ul>
  36. 37. The elements of innovation Creativity Interpersonal Interactions Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation Tempera -ment Ability Skills Learning Culture Ego Strategic Thinking Innovation Focus
  37. 38. Focus Time Identified Idea Action Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
  38. 39. Strategic Thinking Strategic Thinking Orientation towards gaining benefits Orientation towards effectiveness Orientation towards resource sufficiency Vision and foresight Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
  39. 40. Creativity Lateral thinking Serial Thinking Group Education Culture Strategic Thinking Personality Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation Solutions Opportunities Ideas Creativity
  40. 41. Ego Environment, Family, Peers, Culture Outer Ego; Responsibility, Accountability, courage Inner ego: self assurance, dedication, motivation Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
  41. 42. Interpersonal Interactions Sincerity Warmth Personality Networking Team/Individual Orientation Character Judgment Culture Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha Model of Innovation
  42. 43. Culture Leadership Theories in action verses Espoused Norms and group behaviour Organisational learning (single or double looped Productivity & effectiveness Stories, myths, heroes, artifacts, informal behaviours Values Beliefs Assumptions
  43. 44. Effect of Factors on Innovation Variable Absent Extreme Focus Random Tunnel vision Strategic Thinking Switched off Unfocused Creativity Unimaginative Over-imaginative, lose sight of big picture Ego Purposelessness Self-deluded Interpersonal Relationships Individualistic and independent Hesitent to take responsibility Culture Self centered and moraless Fanatical
  44. 45. Optimum Innovation Innovation Component Qualities (at mean spectrum) Focus <ul><li>Have control of the situation </li></ul><ul><li>Put the project first </li></ul>Strategic Thinking <ul><li>Able to spot and work towards exploiting the opportunity </li></ul><ul><li>Able to secure resources (beg, borrow or steal) </li></ul>Creativity <ul><li>Able to create both laterally and serially </li></ul><ul><li>Spot and exploit opportunities </li></ul>Ego <ul><li>Inner need to make a difference </li></ul><ul><li>Able to take risks </li></ul>Interpersonal relationships <ul><li>Able to network effectively </li></ul>Culture <ul><li>Spot and exploit causes </li></ul><ul><li>Create social capital </li></ul>
  45. 46. Factor Synergy Ideas Solution Opportunities Screen Realisation Spots Evaluates Selects Targets Creativity Strategic Thinking Focus
  46. 47. The Innovation of the Eagle Idea - Food Scans Opportunities, Spots, Evaluates & Selects (resource choices) Targets Realises his catch Perfect Creativity, Strategic Thinking & Focus
  47. 48. A Strategic Approach to be Relevant to the Marketplace
  48. 49. <ul><li>Buyer Power, eg: </li></ul><ul><ul><li>buyer choice </li></ul></ul><ul><ul><li>buyers size/number </li></ul></ul><ul><li>change cost/frequency </li></ul><ul><li>product/service importance </li></ul><ul><li>volumes, JIT scheduling </li></ul><ul><li>New Market Entrants, eg : </li></ul><ul><ul><li>geographical factors </li></ul></ul><ul><ul><li>incumbents resistance </li></ul></ul><ul><li>new entrant strategy </li></ul><ul><li>routes to market </li></ul><ul><li>Competitive Rivalry, eg: </li></ul><ul><ul><li>number and size of firms </li></ul></ul><ul><ul><li>industry size and trends </li></ul></ul><ul><li>fixed v variable cost bases </li></ul><ul><li>product/service ranges </li></ul><ul><li>differentiation, strategy </li></ul><ul><li>Product/Technology </li></ul><ul><li>Development, eg: </li></ul><ul><ul><li>alternatives price/quality </li></ul></ul><ul><ul><li>market distribution changes </li></ul></ul><ul><li>fashion and trends </li></ul><ul><li>legislative effects </li></ul><ul><li>Supplier Power, eg: </li></ul><ul><ul><li>brand reputation </li></ul></ul><ul><ul><li>geographical coverage </li></ul></ul><ul><li>product/service level quality </li></ul><ul><li>relationships with customers </li></ul><ul><li>bidding processes/capabilities </li></ul>Figure 7. Porter’s Five Forces of Competitive Position
  49. 50. A Market Driven R&D Model Industry defined problem or issue Parameters of problem researched with reference to interdisciplinary frames Theoretical solution thought out, becomes project objectives, with boundaries of industry requirements Process design Laboratory trial Scaling up Industry implementation
  50. 51. Process Engineering Electrical Engineering Sensors GMP Process Manufacturing Environment & Occupational Safety Issues Market & Commercialisation Product Development Refining of Crude Extracts Extraction Processing Cultivation Domestication Bio- Prospecting Extraction Techniques Bio-Chemistry Analytical Chemistry Tissue Culture Agricultural Engineering Precision Farming Bio-Chemistry Processing Bio-Chemical Engineering Fractionation & Bio-Reactor Techno-Preneurship Figure 8. From Bio-Diversity to Laboratory to Market-Place
  51. 52. Beware of Becoming Dyfunctional Identification of Active ingredient in plant Identification of Active ingredient in plant Preliminary ASSAY Preliminary ASSAY Cultivation, harvesting, extraction, refining, stabilisation, etc Cultivation, harvesting, extraction, refining, stabilisation, etc Trials in ‘made up’ formulations, eg shampoo, cream Trials in ‘made up’ formulations, eg shampoo, cream Go to market and sell product to customers, supermarkets, direct selling, distributors, etc. Find a distributor Seek advice on market potential Collaborate Collaborate Various trials and assays Collaborate Negotiate Agreements (farming, processing, marketing) Product Registration To international market as a raw material fine chemical Little IP Generated Most likely to stay in domestic market IP Generated that is transferable for Value Potentially has a global market Figure 4. Two Pathways for the Commercialisation of Research (example for a plant extract) Farm to Consumer As an Intermediate Product
  52. 53. Conclusions <ul><li>First and foremost: Industry collaboration </li></ul><ul><li>Principal of research wide, focus narrow: Inter institutional collaboration </li></ul><ul><li>Develop the correct organisational structure for maximum creativity </li></ul><ul><li>Seek incremental advances in research to reduce risk and shorten lead times for research output generation </li></ul><ul><li>Become a strategic thinker and scan the environment </li></ul><ul><li>Plan your expected milestones and outcomes </li></ul><ul><li>A techno-entrepreneurship and commercialisation component of the cluster </li></ul>
  53. 54. Techno-entrepreneurship & Commercialisation Component <ul><li>to carry out specific research regarding the specialist area of engineering techno-entrepreneurship to support KUKUM’s role as an engineering university, </li></ul><ul><li>Post Graduate techno-entrepreneurship research programs (i.e., engineering background who want to undertake post graduate research in technology commercialisation, issues with technology commercialisation and technology management) </li></ul>
  54. 55. <ul><li>to run seminars and workshops on techno-entrepreneurship for the cluster, schools and university, </li></ul><ul><li>to provide input into core entrepreneurship undergraduate programs as a resource to PKKK, </li></ul><ul><li>to liaise and assist other parts of the cluster develop entrepreneurship and commercialisation of their research (interdisciplinary) </li></ul>Techno-entrepreneurship & Commercialisation Component
  55. 56. <ul><li>to assist in funding and finding stakeholders for start-ups from the cluster </li></ul><ul><li>techno-entrepreneurship policy development centre </li></ul><ul><li>to develop seminars for target audiences to enhance KUKUM’s expertise image as an techno-engineering institution & source of revenue </li></ul>Techno-entrepreneurship & Commercialisation Component
  56. 57. <ul><li>to carry out the incubator function as required for grants and IPTA policy </li></ul><ul><li>to act as an entrepreneurial think tank </li></ul>Techno-entrepreneurship & Commercialisation Component
  57. 58. Role of Techno-entrepreneurship & Commercialisation Unit in Cluster Mechanical, sensors, nano, bioprocess, etc CLUSTER Part of cluster Techno-entrepreneurship & commercialisation KUKUM SCHOOLS Entrepreneurship resources Post Graduates Entrepreneurship, commercialisation & start-ups Information and research dissemination Specialist Corporate Seminars
  58. 59. Thank You