Workshop1Commercial Essentials

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Workshop1Commercial Essentials

  1. 1. Commercial Development Programme Commercial Essentials Workshop 1 – Thinking Commercially about Research
  2. 2. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Commercial Essentials Programme </li></ul><ul><li>The workshops programme has been designed to provide an overview of all areas of information that are vital when building a business plan.  Topics covered include: </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Market research </li></ul><ul><li>Sales & Marketing </li></ul><ul><li>Finance & Funding </li></ul><ul><li>Business Planning  </li></ul>
  3. 3. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Commercial Essentials Programme </li></ul><ul><li>Workshop 1: Thinking commercially about research - 18th November 2009 </li></ul><ul><li>Workshop 2: Planning Finance and Funding your Idea - 21st January 2010 (TBC) . </li></ul><ul><li>Workshop 3: Protecting Your Idea - 10th February 2010 </li></ul><ul><li>Workshop 4: Developing Your Idea - 10th March 2010 (TBC) </li></ul><ul><li>Workshop 5: Understanding, Finding and Developing Markets - 14th April 2010 (TBC) </li></ul><ul><li>Workshop 6: Putting your Business Plan into Action - 5th May 2010 </li></ul>
  4. 4. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Ross Golightly
  5. 5. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Claire Rutherford European Patent Attorney
  6. 6. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Matthew Rippon Consultant
  7. 7. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Stephen Slater Partner
  8. 8. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Ice Breaker
  9. 9. Graham Hopson – Commercialisation Manager
  10. 10. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Northumbria Commercial Enterprises provides a variety of support packages through ‘Innovation Campus’ to enable successful commercialisation of research .
  11. 11. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Innovation Seed Fund </li></ul><ul><li>This fund (now in its third year) enables staff ‘buy-out of time’ during Semester 2 (2010) to enable the commercial development of work-related ideas to develop. </li></ul><ul><li>  </li></ul><ul><li>Technologies </li></ul><ul><li>Software </li></ul><ul><li>Commercial Services  </li></ul><ul><li>Details of past projects are listed here: </li></ul><ul><li>  </li></ul><ul><li>2008/2009 </li></ul><ul><li>  </li></ul><ul><li>2007/2008 </li></ul><ul><li>  </li></ul><ul><li>Further information about the fund including the application form can be found at: </li></ul><ul><li>  </li></ul><ul><li>http://northumbria.ac.uk/business/nce/info4staff/ic/icinfo/isf10/?view=Standard </li></ul><ul><li>  </li></ul><ul><li>Deadline for application submission 11 th December 09. </li></ul>
  12. 12. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Business Plan Challenge </li></ul><ul><li>Following from the success of previous years, the opportunity has again arisen to enable any member of the University staff to enter the Northumbria University Staff Business Plan Challenge 2010. </li></ul><ul><li>This is a “ too good to be missed ” opportunity to develop your “idea” into a viable business plan and you will receive substantial free professional support which will include:- </li></ul><ul><li>Mentoring; </li></ul><ul><li>Working with experienced consultants; </li></ul><ul><li>Clinics with a team of external experts; </li></ul><ul><li>Regular workshops that provide practical and useful information; </li></ul><ul><li>And more </li></ul>
  13. 13. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Active Business Incubator </li></ul><ul><li>Northumbria Commercial Enterprises has partnered with Commercial Catalyst to develop the Active Business Incubator (ABI). This is a model for improving the commercial viability of academic endeavour in Knowledge Transfer such as: </li></ul><ul><li>Contract Research </li></ul><ul><li>Collaborative Research </li></ul><ul><li>Licensing </li></ul><ul><li>Spin-out Company Formation </li></ul><ul><li>Commercial Networks </li></ul>
  14. 14. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Key activities include: Match Making: The ABI finds individuals in the business world to partner with academics at the earliest possible stage of research. These business people have strong operational selling and marketing skills. They are able to identify and engage potential buyers, ensuring that a market exists for individual ideas. They make sure ideas are honed to maximise success and financial returns. Links with Regional, National and International Businesses: The ABI operates a proactive database marketing operation, identifying established companies that are able to commercially exploit or directly use innovations. In addition to the usual sources of grant funding, this provides a stream of commercial R&D funding and a place for market testing and commercial exploitation of ideas. This marketing operation also provides business training and mentoring on a paid for basis generating margin to make the ABI self sustaining. It identifies Knowledge Transfer opportunities, creating consulting opportunities staff and employment of students and graduates.
  15. 15. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Spin-out company development: SpinIOs™ are a combination of a spin out and a spin in. There are academic/entrepreneur partnerships creating companies in which the University maintains an equity and operational stake. SpinIOs have the full range of options for commercial exploitation. They can sell services on behalf of the University at commercial rates. They can create revenue streams through licensing and royalty deals. Ultimately they produce leveraged equity value through company exits, stock market listings and acquisitions. Formed at the very earliest stage in the development of ideas, they reduce wasted research effort, much of which fails to deliver commercial value. Funding: The ABI provides unbiased advice from experienced peopled throughout the lifecycle of a company. It can provide access to appropriate sources of funding.
  16. 16. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Innovation was the core mission of his life and business. He developed and </li></ul><ul><li>commercialised practical innovations that addressed real needs. </li></ul><ul><li>Define Clear Goals </li></ul><ul><li>Be Persistent in Achieving Those Goals </li></ul><ul><li>Refuse Conventional Wisdom </li></ul>Thomas Edison (The Inventor of Electricity, the Light Bulb and the Battery)
  17. 17. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Commercialising Research: Critical Thinking </li></ul><ul><li>Some questions you can reflect on that a professional advisor might ask: </li></ul><ul><li>Have you developed an underlying idea into a complete product, service or </li></ul><ul><li>technology? </li></ul><ul><li>Does your product/service or idea contain novel technologies? </li></ul><ul><li>Does your product/service or idea reuse other ideas/technologies in a novel way? </li></ul><ul><li>Does your idea present a major step change that is faster, cheaper or better? </li></ul><ul><li>Do these novel ideas address pre-determined or uncovered needs? </li></ul><ul><li>Will your idea provide meaningful value to its desired end user? </li></ul><ul><li>Can you articulate that value in plain and simple English in a way that is </li></ul><ul><li>compelling to others? </li></ul>
  18. 18. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS All Large Organisations Have Development and Screening Processes: Development Vision and Values - Brand Promise - Positioning <ul><li>Consumer Needs </li></ul><ul><li>Insight </li></ul><ul><li>Decision Process </li></ul><ul><li>Legislation </li></ul><ul><li>Patents </li></ul><ul><li>Safety </li></ul>Product Strategy Marketing Strategy Business Strategy Generation Plan Generation Plan Project Portfolio Primary Development Project Specification, Pre-Engineering and Industrialisation Market Market Launch Strategic Product Planning Generation Planning Execution & Feedback
  19. 19. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Success Rate of New Product Ideas Development 5 10 15 20 25 30 35 40 45 50 55 60 Number of Surviving Ideas Cumulative time (percent) Screening Business analysis Development Testing Commercialisation One successful new product
  20. 20. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Creating Commercial Appeal in the Eyes of a Third Party </li></ul><ul><li>Your IP must be something that could be exploited to create an actual revenue </li></ul><ul><li>stream </li></ul><ul><li>This can be realised as an actual product/service or as a technology to improve </li></ul><ul><li>existing products/services </li></ul><ul><li>It should be strongly differentiated from existing ideas, IP or technology (therefore </li></ul><ul><li>presenting a step change, rather than an incremental improvement) </li></ul><ul><li>It should be commercial efficient to manufacture and have multiple application </li></ul><ul><li>markets </li></ul><ul><li>It should be aligned to real market needs (either untapped or pre-defined) </li></ul><ul><li>It should be believable, relevant, different, surprising, inspiring and ownable </li></ul>
  21. 21. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Being fast enough to be first into the market, with the right product, is worth more to the prosperity of most businesses than probably any other single management or manufacturing action.
  22. 22. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Define Your Research from the Perspective of Needs: A Market … £100m Value? (That’s Financial) … France and Germany? (That’s Geography) … High Street / On-Line? (That’s a Channel) A Market People with a Common Need or Want If You Start with a Definition of a Technology or Research Piece, You will never Define a Need!
  23. 23. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Development “ Blue Ocean Strategy”: DON’T COMPETE! Create Uncontested Market Space Creating Temporary Monopolies is Exactly What Businesses Aspire to do!
  24. 24. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Manufacturing Mindset “ Sell What We Make” “ Make What Will Sell” How We Often Function How We Should Function Marketing Mindset
  25. 25. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Developing Commercial Awareness within Your Research: Key Rules </li></ul><ul><li>Don’t gravitate towards the tried and trusted </li></ul><ul><li>Think Business as Unusual ... Rather than Business as Usual </li></ul><ul><li>See your idea through a customer or users eyes </li></ul><ul><li>Break the Rules </li></ul><ul><li>Don’t get too close – emotion can blind objective decision making </li></ul><ul><li>Innovate – don't renovate! </li></ul>
  26. 26. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Commercialisation Project Management Cycle Risk Management Strategy IP Exploitation Concept Research Business Plan IP Protection Funding Package Product Dvpt Commercial- isation Working Capital Strategy Dvpt Market Research Company Set Up Idea Dvpt Revenue Generation
  27. 27. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Current Application Example Funding – Proving the Research
  28. 28. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Commercialisation Project Management and Planning </li></ul><ul><li>Outcome orientation: start with the end in mind </li></ul><ul><li>Project forward and work back to identify key activities, interventions and costs </li></ul><ul><li>Don’t move incrementally: identify your total project liability in terms of costs, </li></ul><ul><li>resources and time required to achieve your desired outcome right at the start </li></ul><ul><li>Then set about identifying the people, organisations and funders who can support </li></ul><ul><li>that. </li></ul><ul><li>Don’t work in a vacuum – obtain feedback into the process at every juncture and </li></ul><ul><li>use your contact base or advisory team constantly to pool for feedback. </li></ul><ul><li>Be obsessed with detail and know where you are going – funders hate woolly blue </li></ul><ul><li>sky thinking. </li></ul>
  29. 29. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Claire Rutherford European Patent Attorney
  30. 30. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS The perfect idea! Has a clear market need Can be made at a market acceptable price Can be made in a format acceptable to the market Can be ring-fenced to prevent competitors encroaching on your market So, how do you begin to work out whether your invention is anywhere near perfect?
  31. 31. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS A good place to start Is the idea new? Starting the search General Internet Searching Patent records gb.espacenet.com www.delphion.com Scientific/Industry literature
  32. 32. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Can you protect the idea in some way? Patents Designs Trade Marks TM ® Copyright Know How New and protectable – you can start considering other issues such as cost, manufacturing requirements etc. Unprotectable but strong market need – only have a short period before your competitors follow (might be enough to build a brand!) A new idea but no clear market – it’s expensive to create a market
  33. 33. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS The other side of the coin freedom to operate Can also use patent searching to: identify acquisition targets identify cross-licensing targets identify competitive threats identify gaps in the market/technology
  34. 34. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Matthew Rippon Consultant
  35. 35. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS <ul><li>Commercialising IP – The Entrepreneur’s Secret Recipe </li></ul><ul><ul><li>The Mechanics - assignments and licences </li></ul></ul><ul><ul><li>In Practice - distribution, franchising and all sorts </li></ul></ul><ul><ul><li>Risk -v- Reward </li></ul></ul>
  36. 36. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Stephen Slater Partner
  37. 37. Stages of a business Business Plan NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS
  38. 38. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Gartner’s Hype Cycle
  39. 39. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Gartner’s Hype Cycle
  40. 40. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Product Life Cycle
  41. 41. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS
  42. 42. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Get Connected - Get With more and more people using social networking websites it makes sense to do the same for business networking.  That is why the idea of Northumbria Knowledge Exchange has come about – it is a way for innovators, companies, business support organisations and funders related to Northumbria University to connect to each other and help turn knowledge into business. If you would like to be LinkedIn to Northumbria Knowledge Exchange, go to: http://www.linkedin.com/e/vgh/1849144/
  43. 43. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS
  44. 44. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Thank You!!! Any further questions or feedback?

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