Managing Intellectual Property:

From Ideas to IP to Commercialisation

Bizarre Patent of the Month

US 5,966,743 - Substance dispensing
headgear

A headgear for dispensing a

substance has a container to carry the
substance. A spigot is secured to the
container. The spigot can be opened
to dispense the substance by gravity,
suction, pressure or levity flow. The
spigot can be closed to retain the
substance in the chamber. A hat-like
recess is formed within the bottom wall
of the container sized for wearing on
an individual's head, and for
maintaining the container in a
freestanding condition during handsfree ambulation of the individual.

Random Chaos in the

innovation cycle
2-10 year Voice of the Customer Path

$
(Im making money.)

!
(Ive got a great idea.)

Invention

Commercial

Knowing your location helps

to navigate the innovation
cycle
2-10 year Voice of the Customer Path

(Im making money.)

Market-Readiness
Scorecards
(under development)

!
(Ive got a great idea.)

Invention

Commercial

Course correction activities in

the innovation cycle
$

2-10 year Voice of the Customer Path

(Im making money.)

!
(Ive got a great idea.)

T-Junction
Decision Support
Invention

Choose to
Exit

Lowers the cost of

information

Commercial

Market Readiness Scorecard and

T-intersection Decision Support:
Faster to Marketat lower innovation cycle cost
$

1-5 year Voice of the Customer Path

(Im making money.)

!
(Ive got a great idea.)

Invention

Validate
Market

Align
Technology

Maximize

Launch

Commercial

Ecology of commercialization

Commercialization Success in Early Stage Technology Companies, Rocket Builders, 6/25/2004,

Funded by NRC and ASI

The Technology Transfer Process

7-12 YEARS

SCIENCE &
TECH

Technology
Feasibility

Idea

INVENTION

MARKETING

Marke
t
R&D

Pro-forma
Business
Plan

FEASIBILITY

Product
Development

Prototype/
Scale-up

Initial
Manufacture

TRANSLATION

Applications

Marketing
Strategy

Business
Plan

COMMERCIAL
IZATION

MARKET
CAPTURE

MARKET & BUSINESS PLANNING

IPO

FINANCING

Tech Tfr
Funds Seed Capital

Expansion Capital

RETURNS

Universal Industrial Success Curve

Shows Most New Business
Development (NBD) Efforts
Unsuccessful
10,000

Number of Ideas

3000 Raw Ideas (Unwritten)

CU-Commercialization Unit

1000
300 Ideas Submitted

100

125 Small Projects

10 CU Impact
Zone

9 Early Stage Devel.

4 Major Devel.
1.7 Launches

1
1

Stage of NBD Process

1 Success
Source: G. Stevens and J. Burley, 3000 Raw
Ideas = 1 Commercial Success!
Research-Technology Management,40(3):1627,May-June, 1997. Runner-Up, IRI Best
Paper of the Year.

Commercialization Roadmap:
General
I
N
V
E
N
T

Goal

Sales
Business
Technology
Attitude
Shift
Money
Pursuit

Critical Factor Assessment

Multiple Application Assessment

Stages of the process for guiding innovation to be market -ready

Validate

Align

Maximize

Launch

Prove Assumptions

Embed the Customers

voice

Activate Stakeholder
Participation

Take the Order.

Market Dynamics

Competitive Position

Channel Options

Market Demands

Business Proposition

Business Resources

Licensing Considerations
Beta Configuration &
Customer Driven Features Testing

First Customer Demands

Faith in idea
Technology centric

Technology centric
Customer centric

Customer centric
Distribution centric

Distribution centric
Market centric

I Believe in you $$$

$$$ to Show it works for

the Customer

Relationships Bring
Dollars

Revenue $$$ cover sins

Market Opportunity &

Impact

Capitalization Demands

S
E
L
L

Commercialization Roadmap:
Simplified
Sales
Developmen
t
Activities
Business
Developmen
t
Activities

Multiple
Application
s

Technology
Developmen
t
Activities

Critical
Factors

Stage/Time

Market
Dynamics

Competitive
Positioning
3

Business
Proposition
2

Business
Resources

Market
Impact

CustomerDriven
Functionality

Evaluate

Validate

Channel &
Distribution
6

Growth
Demands

Licensing
Considerations
And
Segmentation
8
Beta
Configuration
& Testing

First Customer
Demands
10

Align

Market
Entry
Demands

Maximize

12

11

Launch

Lost
Order
Analysis

Stall

Four Strategic Focal Points to Implement:

Validate - the marketability of the innovation

Align - the product with market requirements &
expectations
Maximize - success by segmenting Intellectual
Property & pursuing multiple revenue streams
Prepare - you to hand over control to your
stakeholders with the release of your product

Critical Factor Assessment

Effectiveness
Validated
by Tom Astebro
Rotman School of
Business

Validated by
Professionals !!!

5%
Evaluate
Risk
and
Triage
Clients

Submissions

%
5
1

Clear Market
& Business
Opportunity

Investigate
Better Market
Entry

85%
Refers to
Alternate
Program

CU Engagement Overview
with potential technopreneur
Investigation
Confirm profile
Review client
materials & objective
Client interview
Historical review

Develop
Proposal
Identify activities
Prepare (review)
work plan
Confirm costing
and deliverables

Update Work
Plan
Review work plan
with
recommendations
for Next Steps
Establish ongoing
relationship

Initial Peer
Review
Peer review of research
proposal
Brainstorm
Develop preliminary
recommendations

Presentation
Draft sent to client
for review
Client submits
questions prior to
results meeting
Review the findings
and discuss
recommendations

Research
Phase
Primary interviews
Buyer preferences
Contrast with value
proposition
Summarize

Peer Review
Peer review of
research
Secondary research
as necessary

A Time for Triage

A Time for Judgment

The A list

Referred to as Gazelles, often 1 idea in 100 or even 1000, some benefit from
Government support, others go-it-alone
Most likely have:
experience, relationships with investors, previous failures, a team in place,
100% follow a commercialization process

The B list

Bulk of the Commercialization activity, the grey space requiring triage tools
Triage prioritizes resource $...all get some level of Grant and/or investment support
2 failures a positive indicator for success*
50% would benefit from following a commercialization process*
spunk also a success indicatorthey succeed with less resource support $
Programs of Market Validation and T-intersection Decision Support directed at this
group

A Time for Triage

A Time for Judgment (cont.)

The C list

Bulk of the demand for resources, to many no go indicators to risk

outside investment
Judgment skills, providing direction, easy access to
information...no direct access to resource $... Indirect $ in the form
of training, mentoring
Deflection to Local programs for skills and competence
development
Any Government supported investments are loan basedkeep
the risk with the innovator
CIC played a role in developing this local capacity in the 1980s
and early 90s

*IRAP Ontario Benchmark Study March 2004

Commercialization
Tools
for IHLs and RIs

Commercialization Unit of IHLs/RIs should have

the following tools in place:

Critical Factor Assessment Plus

Identify factors impacting commercialization
(Triage)
Multiple Market Application Assessment
Decide on first market
Market Evaluation and Validation
3rd Party verification
Market / Technology Alignment
Embed the Customers voice

Hypothesizing How Managed Commercialization

Processes will Improve the Yield and Speed to
Market of New Business Development
10,000

Number of Ideas

3000 Raw Ideas (Unwritten)

CUCommercialization
Unit

1000
300 Ideas Submitted

100

125 Small Projects

80 Early Stage Projects

10 Major Devel.
4 Launches

CU
Impact
Zone

10

2 Successes

9 Early Stage Devel.

4 Major Devel.

1.7 Launches
1 Success

1
1

Stage of NBD Process