The document discusses commercialization of new products. It defines commercialization as introducing a new product into the market, which involves significant spending on marketing. It notes that 67% of new products fail in the commercialization process, sometimes due to flaws in product development or launch execution. The document then provides details on the different stages of new product development and commercialization for both incremental and breakthrough products. It highlights some common mistakes made during commercialization.

1. Commercialization
www.windtechnologies.com

2. Commercialization is the process or cycle of introducing a new product into the
market. The actual launch of a new product is the final stage of new product
development, and the one where the most money will have to be spent for
advertising, sales promotion, and other marketing efforts.
In order to realize the benefits of innovation commercialization is required!
Product
Development
Process
Marketing & Selling
Process
Commercialization
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3. Initial
screening
Preliminary
market
assessment
Preliminary
technical
assessment
Detailed
market study
Beta tests Test market
Alpha tests
Product
development
Preliminary
business
analysis
Trial
production
Final business
plan
Production
ramp up
Market
launch
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4. Different Stages in NPD:
1. Initial screening: The initial decision to go ahead with the project; the idea having
been screened in from several alternatives.
2. Preliminary market assessment: The preliminary market study: a "quick and dirty"
situation analysis of the marketplace, possible market acceptance and competitive
assessment.
3. Preliminary technical assessment: An initial technical appraisal, addressing
questions such as "can the product be developed? can it be manufactured?" etc.
4. Detailed market study Marketing research: detailed market studies such as user
needs-and-wants analysis, concept tests, positioning studies and competitive
analyses.
5. Preliminary business analysis: Comprehensive business analysis with projected
net present values, pro-forma income statements, etc.
6. Product development: The actual development of the physical product leading
up to a prototype.
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5. Different Stages in NPD:
7. Alpha tests: Testing the product in-house under controlled or laboratory conditions.
8. Beta tests: Testing the product with customers field trials.
9. Market Test: An attempt to sell the product to a limited market area or customers,
to gauge product acceptance in a real market context.
10. Trial production: A limited trial, or batch production run, designed to prove
production facilities.
11. Final business plan: A final business and financial analysis prior to launch.
12. Production ramp up: Full-scale production.
13. Market launch: The implementation of a comprehensive marketing plan.
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6. 67% of NPD fail in the commercialization process.
Commercialization Success Rate
Success
33%
Fail!!!
67%
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7. Why?!?!?!?
In some cases, the product development process is flawed to start with.
In others, the product concept is very poorly backed by market research.
In some others, it is the launch process and its execution that is at fault.
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8. Commercialization:
Incremental
Breakthrough
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9. Commercialization:
When?
Where?
To
Whom?
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10. Mistake #1:
An overwhelming tendency to treat to both incremental and
breakthrough projects both the same.
Mistake #2:
Tendency to assume that breakthrough products activities
need plenty of sources and management support.
Mistake #3:
It makes sense to adopt the existing manufacturing-sales
systems for the new product.
Mistake #4:
Faulty product positioning.
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11. Case Study
www.windtechnologies.com

12. Management and Key Staff
Gehan Amaratunga
( non-executive
Chairman )
Ehsan Abdi
(CEO)
Hashem Oraee
(non-executive
Director)
Richard McMahon
(CTO)
Peter Tavner
( non-executive
Director)
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13. Technology
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14. Technical overview
Background
1. Collaborative project between Cambridge & Durham
university
2. Publications
3. Awards from :
 Worshipful Company of Scientific Instrument Makers
 Cambridge University Entrepreneurs (2004)
 the Institution of Engineering and Technology or IET (2005)
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15. Technology: Brushless Doubly-Fed Induction
Key Benefits:
Higher reliability
Lower maintenance
Lower cost
Generator
Two-Stage Gearbox
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16. Failure rate and downtime for wind turbine subassemblies
Failure/turbine/year and Downtime from 2 Large Surveys of European Wind Turbines over 13 years
Electrical System
Electrical Control
Other
Hydraulic System
Yaw System
Rotor Hub
Mechanical Brake
Rotor Blades
Gearbox
Generator
Drive Train
LWK Failure Rate, approx 5800 Turbine Years
WMEP Failure Rate, approx 15400 Turbine Years
LWK Downtime, approx 5800 Turbine Years
WMEP Downtime, approx 15400 Turbine Years
1 0.75 0.5 0.25 0 2 4 6 8 10 12 14
Failure/turbine/year Downtime per failure (days)
Source: F. Spinato et al., “Reliability of wind turbine subassemblies”
IET Proceedings, Renewable Power Generation, Vol. 3, No. 4, pp. 1-15, 2009
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17. Reliability Study for a 2 MW Wind Turbine
Subassembly Description RPN
Drive Train
- Conventional Doubly Fed Induction Generator
- 3 stage gearbox
100.0
- Innovative Brushless Doubly Fed Induction Generator
- 2 stage gearbox
90.1
Generator
DFIG 17.5
BDFIG 15.6
Gearbox
Three Stage (1st stage Planetary) 30.4
Two Stage (1st stage Planetary) 22.4
Other Components 52.1
RPN: Risk Priority Number
Source: FP7 Reliwind Project 6/29

18. Innovation
Intellectual Property
Application
number
Short title First priority date Status
0810865.6
Power
Generators
13 June 2008
Has been filed (not yet
published) - Applied for PCT
0810867.2
Power
Generators
13 June 2008
Has been filed (not yet
published) - Applied for PCT
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19. Innovation
Prior Art
 at Oregon State University with support from the
US Department of Energy (mid-1980s)
Potential Competitors
 brushless doubly-fed induction generator (BDFIG)
 brushless doubly-fed reluctance generator (BDFRG)
 brushless doubly-fed twin stator induction generator
(BDFTSIG)
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20. Innovation
Alternative Technologies
 doubly-fed slip-ring induction generators (DFIG)
 permanent magnet generators (PMG)
Drawbacks for DFIG
 the additional cost and bulk of the slip-ring system
 the need to maintain brush-gear and to replace brushes on a
regular basis
 failures of wind turbines due to failures of the slip-ring system
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21. Market
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22. Drive Train
Technologies
Architecture Speed Generator
% of Market
(2009)
High
High
Mid
Low
DFIG
PM
IG
PM
Synchrono
us
70%
15%
15%
B
2008 Generator
market
€1.1 bn
€220 m
€220 m
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23. Economic Benefits
Onshore 1MW
wind turbine
(NEW)
Onshore 1MW
wind turbine (as
retrofit)
Onshore 3MW
wind turbine
(NEW)
CAPEX Saving € 6,600 € 4,100 € 23,000
OPEX Saving (Annual -
planned)
€ 1,178 € 1,178 € 2,655
OPEX Saving (Annual -
unplanned)
€ 380 € 380 € 830
Warranty period savings
(CAPEX & OPEX)
€ 12,832 N/A € 36,940
Post warranty period savings
(OPEX)
€ 23,370 € 21,812 € 52,277
Whole balance of life savings
(CAPEX & OPEX)
€ 36,202 € 25,912 € 89,217
Whole balance of life saving as
percentage of DFIG cost
88.3% 63.2% 72.5%
Private & Confidential © Wind Technologies Ltd. 12/29

24. Installation by Vestas in 2010
Total installation by Vestas
7800 MW
2600 of 3MW wind turbines
CAPEX saving €59.8 million
OPEX saving (5 years
warranty)
€38.4 million
OPEX saving (15 years rest of
life)
€136 million
13.5% of
Vestas’ profit
Total saving €234 million
The above figures assume Vestas used the BDFIG in all its 2010 wind turbines
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25. Comparison of Electrical Systems
System I System II System III
Generator type DFIG BDFIG IG PM SG PM
Gearbox Yes Yes Yes Yes No No
Market share 70 % - 10 % 5 % 13 % 2 %
CAPEX (Generator &
Converter)
     
OPEX (Generator & Converter)      
Grid compatibility      
Private & Confidential © Wind Technologies Ltd.
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26. Wind Turbine Market and Generator Suppliers
Turbine
maker
Market
share
in 2008
Generator
type
Private & Confidential © Wind Technologies Ltd.
Generator provider
Vestas 19 % DFIG Weier, ABB, Elin, LeroySomer
GE 18 % DFIG PMG Winergy, ABB, Loher
Gamesa 11 % DFIG Ingeteam, Indar, ABB
Enercon 9 % SG Enercon
Suzlon 7 % IG Suzlon, Elin
Siemens 7 % IG Winergy, ABB
Acciona 4 % DFIG ABB
Goldwind 4 % PMG
Sinovel 4 % DFIG ABB
Nordex 4 % DFIG VEM
Others 13 %
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27. Wind Turbine Market and Generator Suppliers
Generator supplier
Manufacturing
location
Private & Confidential © Wind Technologies Ltd.
Market share
in 2008
Customers
ABB
China, Estonia, Finland,
India
40 %
(steady)
Vestas, Gamesa, GE,
Siemens, Acciona
Enercon Germany
13 %
(decreasing)
Enercon
Leroy Somer France
12 %
(decreasing)
Vestas
Elin Austria, India, China
8 %
(decreasing)
Suzlon, Vestas
Ingeteam China, Spain
6 %
(increasing)
Gamesa
Winergy Germany
6 %
(decreasing)
Siemens, GE, Vestas
Others
15 %
(increasing)
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28. Wind turbine market
 wind power industry installed more than 27,000 MW in 2008
more than €36.5 billion
 bringing the global market to more than 120,000 MW
 36% increase on an annual basis and a 29% cumulative growth
 wind generation capacity will stand at 332,000 MW in 2013
 56,000 MW of new capacity will be added in 2013
 wind turbine market is expected to reach €80 billion in 2013
Private & Confidential © Wind Technologies Ltd. 17/29

29. Wind generator market
 reached about €1.5 billion in 2008
 is expected to be worth more than €3 billion in 2013
 DFIG had about a 70% market share in 2008, equivalent to
€1.1 billion and would be worth €2.1 billion in 2013
 BDFIG can potentially address a €2.1 billion market in 2013
Private & Confidential © Wind Technologies Ltd. 18/29

30. Annual market & Retrofit market value
Annual market value 2008 2013
Wind turbine industry €36.5 billion €80 billion
Generator
(~4% of the cost of wind turbine)
€1.5 billion €3 billion
DFIG market
(70% of generator market share)
€1.1 billion €2.1 billion
Retrofit market 2008 2013
World wind power installed capacity 120,000 MW 332,000 MW
DFIG retrofit market €100 million €250 million
Private & Confidential © Wind Technologies Ltd.
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31. Commercialisation Strategy for the ‘Big’
Wind Market
Potential Opportunities in the ‘Big’ Wind Market
 BDFIG for new wind turbines
Retrofitting in existing wind farms
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32. Our Product
+
Brushless DFIG Control Board
Estimated cost: €35,000 / MW €500 – 700
Typical retail
price:
€50,000 / MW €5000 – 7000
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33. Commercialisation Strategy for the ‘Big’
Wind Market
Exploitation Strategy
The main feedback received from the industry
 the availability of quantified figures for the
BDFIG’s economic case
Demonstration of performance of the BDFIG on real
scales and within wind turbines
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34. Commercialisation Strategy
number of key milestones in exploiting the BDFIG technology
 In-depth market studies have been carried out and potential
customers for the BDFIG have been identified;
 The BDFIG has been demonstrated on a small scale wind turbine
(20kW, 18 meters height) which has led to performance verification of
the technology in a wind turbine and under normal wind conditions;
 The economic case for the BDFIG for onshore wind applications has
been quantified in terms of both capital and running costs. The
outcomes show a strong case for exploiting the BDFIG.
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35. Commercialisation Strategy
Sales Plans
Incorporating in
new wind turbines
Retrofitting in existing
wind turbines
Market
JV Subcontract
and/or License
JV Subcontract
and/or License
Business
Model
Wind turbine
manufacturers
Generator
Customers manufacturers
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36. ‘Small’ Wind Exploitation
Market Analysis
Company Country kW sold in 2008
Southwest Windpower US (AZ) 10,000
Proven Energy Ltd UK (Scotland) 4,800
Northern Power US (VT) 4,300
Entegrity Wind Systems Canada (PE) / US (CO) 3,500
Bergey WindPower Co. US (OK) 1,700
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37. ‘Small’ Wind Exploitation
Market Analysis
2008 U.S. Sales 2008 Global Sales
17.3 MW 38.7 MW
78% growth over 2007 53% growth over 2007
10,500 units 19,000 units
$77 million in sales $156 million in sales
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38. Small Scale Technology
Demonstration
20kW Wind Turbine with BDFIG
Rated power
Hub height
Rotor diameter
Generator
Gearbox
Converter
Yaw
20 kW
12.5 m
11 m
BDFIG
2 stage helical
Fractional – Grid
connected
Free yaw
West Cambridge Site, Cambridge
Installed in March 2009

39. SWOT Assessment
Strengths
Weaknesses
Opportunities
Threats
 Technical Risk
 Commercial Risk
 Social/Political Risk
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40. Exit Plans
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41. Thank You