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Innovation Potential & Pathways
- 1. 1 Karl R. LaPan The Northeast Indiana Innovation Center, Inc. February 17, 2020 www.niic.net Innovation Potential & Pathways
- 2. 2 Today’s Agenda & Approach Talk about innovation, its potential and promise Share commercialization models Discover ways to unleash entrepreneurial energy Reimagine how we fuel innovation @ PFW 1 2 3 4
- 3. 3 The Big Idea – Imagine that PFW was a catalyst for regional innovation and entrepreneurship bringing together students, faculty, and business/ industry partners to provide the creative fuel for research that leads to industrial innovation. What would that look like?
- 4. 4 Innovation takes more than just an idea1
- 5. 5 Innovation takes more than just an idea1 (.03%) Purdue – last six years • 2,000 disclosures • 1,150 patents • 250 start-ups (150 based on licensing tech) • 350 jobs • $390 MM in start-up funding
- 6. 6 Understand Diverge Decide Prototype Validate • Who are the users • What are their needs • What is the context • Competitor review • Formulate strategy • Envision • Develop lots of solutions • Ideate • Choose the best idea • Storyboard the idea • Build something quick and dirty to show to users • Focus on usability not making it beautiful • Show the prototype to real users outside the organization • Learn what doesn’t work Design thinking…the right way to get started
- 7. 7 • Can you build and deliver a product / service that satisfies the customer problem or need? • Do the product / service features deliver value (alleviate pain, create gain) for the customer? Product – Market Fit
- 8. 8 Innovation takes more than just an idea1
- 9. 9 Innovation takes more than just an idea1
- 10. 10 Innovation takes more than just an idea1
- 11. 11 Innovation comes in all shapes and sizes2
- 12. 12 Innovation carries challenges and risks3
- 13. 13 Innovation carries challenges and risks3
- 14. 14 Innovation carries challenges and risks3
- 15. 15 Innovation carries challenges and risks3
- 19. 19 Innovation is about running experiments5
- 20. 20 Innovation is about running experiments5
- 21. 21 The path to success is not a straight shot
- 22. 22 Exploiting market opportunities…a path to market Many start-ups die before they generate enough revenue to survive due to “Market Launch Barriers” Technology Development Business Model Commercial Product Investment Create value to avoid “Market Launch Barriers” Revenue
- 23. 23 Typical commercialization modes Commercialization Academic Entrepreneurship Student Entrepreneurship Licensing Joint Venture Start-up Tech Transfer Start-up Practice Project Start-up with help Exclusive Non-Exclusive Equity Non-Equity External Internal Sale
- 24. 24 How does the process work? University researcher discovers new invention and submits disclosure Company makes new products OTT patents invention OTT licenses invention to company OR decides to create start-up (completely different path) Company pays royalties to University Additional research money Federal and industry research money
- 25. 25 Commercialization in action Launch Review feasibility and revise concept Review tests and redesign prototype
- 26. 26 Traditional university-industry technology transfer model Research results from lab Start-up companies and large corporations New products in marketplace • Students • Publications • Faculty consulting • Industry sponsored research • Industrial affiliate programs • Intellectual property licensing
- 27. 27 Typical conversion process ~5-8 disclosures received per week •~25-40% of disclosures are filed as patent applications •Potentially licensable as copyright, trademark, biological materials, etc. •Abandoned 20-25% disclosures, including those patented are licensed
- 28. 28 Components of commercialization Education ClustersGuidanceResourcesAssetsMentorsCommercialized Products/Services Innovators Source: Chuck Wolfe, President, Claggett Wolfe Associates, Auburn, CA
- 29. 29 Technical Assessment A portfolio of essential commercialization services Product Development Market Assessment Business Development Commercialization Services
- 30. 30 Business incubation support… Active Engagement, Customer-Centric, and Advisory Coaches + Mentors + Service Providers + Networks + Community Getting Started •Protecting IP •Prototyping •Business Planning •Experimentation (Testing Assumptions) •Seed Funding Proof of Relevance •Product Scaling •Financial Margins •Market Testing •Validated Learning Company Building •Opening Market Channels •Manufacturing Assistance •Marketing & Distribution •Management Team Building •Venture/Debt Funding Source: Chuck Wolfe, President, Claggett Wolfe Associates, Auburn, CA
- 31. 31 Simple customer development model: Right Action, Right Time Source: Steve Blank, The Startup Company Handbook Do I have a problem worth solving? FIT: Product to Solution Have I built something people want? FIT: Product to Market How do I accelerate growth? SCALE: Product to Growth Raise money HERE Focus: Validated Learning and Pivots Focus: Growth and Optimization Proof of Relevance vs. Proof of Concept
- 32. 32 3-Stage Structured Acceleration Process: From Concept to Stable Business Present your concept Stage 1 • Market-validated go-to-market plan • Investor presentation • Product soft model Develop your product and systems Stage 2 • Developed product, with additional market feedback • Production and business systems in place Launch and grow your product & business Stage 3 • Delivered product • Growth and continuous improvement plans in place
- 34. 34 Open Innovation • Sourcing ideas outside the organization not just inside -access new ways of doing things, new knowledge • More distributed, more participatory, more decentralized (Chesbrough) • Pros: Faster, Broader pool of ideas, attract investors/non-tradional partners • Cons: Cost, Intellectual Property, cultural change Closed vs. open innovation. Source: Research Gate
- 35. 35 Our (somewhat methodical) process Execute the Business Model. Launch, Grow, Scale Commercialization Process Start-up Company Come up with business idea (great or not or crazy) Define (Guess) all the parts of the Business Model Validate all the parts of the Business Model
- 36. 36 The “Right Way” (remember there is no ONE way) Customer Discovery The Pivot Business Model Search Business Model Execute Initial Business Model ”Guess” Customer development Customer Validation Customer Creation Company Building
- 37. 37 The goal is to turn those guesses into facts through Customer Discovery, verifying every hypothesis. Customer Discovery The Pivot Business Model Search Business Model Execute Initial Business Model ”Guess” Process: Customer Discovery Customer Validation Customer Creation Company Building IMPORTANT: Founders run a Customer Development Team (no sales, marketing or business development)
- 38. 38 Create a Minimum Viable Product based on your CUSTOMER DISCOVER and VALIDATE than people REALLY want it by selling it to them. If not, pivot, and revise the Business Model and do it again. Customer Discovery The Pivot Business Model Search Business Model Execute Initial Business Model ”Guess” Process: Customer Validation Customer Validation Customer Creation Company Building
- 39. 39 The VALIDATION occurs when you have successful repeatable sales and the product is buildable… Customer Discovery The Pivot Business Model Search Initial Business Model ”Guess” Process: Customer Validation Customer Validation SALES! That’s called PRODUCT-MARKET FIT
- 40. 40 Where does this fit? Execute the Business Model. Launch, Grow, Scale Start-up Company Come up with business idea (great or not or crazy) Define (Guess) all the parts of the Business Model Validate all the parts of the Business Model Customer Discovery The Pivot Initial Business Model ”Guess” Customer Validation Customer Creation Company Building
- 41. 41 Innovation is about running experiments5
- 42. 42 Innovation needs execution to be successful6
- 43. 43 Innovation needs execution to be successful6
- 44. 44 Innovation needs execution to be successful6 Business model components But they’re all GUESSES at this point…
- 45. 45 Innovation needs execution to be successful6
- 47. 47 Remember that…innovation Takes more than just an idea Comes in all shapes and sizes Carries challenges and risks Requires change Is about running experiments Needs execution to be successful 1 2 3 4 5 6
- 48. 48
- 49. www.niic.net