The Innovation Incubator A Game Changer for Businesses and Community Organisations © Copyright and Commercial in Confidence – Ray Jamieson 2017

Definitions Entrepreneur – Solves Problems for Profit, usually creating businesses while doing so. Innovation Incubator – Commercialises solutions through collaboration between business and entrepreneurial minds and resources

The Challenge for Businesses Businesses operate profit generating enterprises, often in isolation from support structures, sometimes having only individual resources and capital backing to rely on. Businesses are at the coal face of the economy, where the problems of social challenge, unemployment, homelessness, environmental and infrastructure problems can be both created and solved. Businesses are often limited in financial, physical and human resources to deal with these challenges whilst regularly being given the blame for creating them. Businesses rely on generation of profits to fund operations and resources, from which they then allocate funding for dealing with their challenges and other industry and social problems. Without profits, there are few avenues other than borrowings from which to increase capital for problem solving, investment and restructuring.

The Opportunity within the Challenge Each problem contains an opportunity within its solution. The two challenges are: Firstly, to solve the problem……. Second, to commercialise it! Once solved and commercialised, the solution is available as a product for sale. When Businesses take advantage of this principle, they increase their resources and profits!

The Aims of an Innovation Incubator Harnessing creative and innovative genius from within and around the business to solve problems and commercialise the outcomes Consolidate cashflow with increased business Secure employment and employee loyalty Create increased Intellectual Property value Enable diversification & multiple income streams Enable change and growth with technical and industry evolution Maintain the competitive edge in the market

The Innovation Incubator - Concept An entrepreneurial environment within the business where operational problems and other challenges are introduced into a systematic problem solving process, for solution and commercialisation. The Host Business resources the Innovation Incubator with the necessary capital resources, and invites entrepreneurs and business minds in to work on and solve the challenges. The proceeds of commercialisation are shared. Within a relatively short period of time, the Innovation Incubator should be cashflow positive and contribute to the budget, whilst making operation easier and both increasing and diversifying income streams. Problems and challenges external but relevant to the business may be welcomed into the Innovation Incubator also. This is a business development and diversification initiative, as well as a profit oriented solutions centre.

What is possible New business development Employment generated and/or made more secure Staff loyalty from the more inclusive policies Cashflow enhanced – potential for higher profit margins and profit sharing programs Businesses and communities benefit from commercialising innovations, inventions & solutions Entrepreneurial and innovative talent fully utilised Businesses involvement in creating a better living & social environment & relationship with Communities Social challenges and barriers broken down Business are seen as better ‘corporate citizens’.

Elements of the Innovation Incubator The location – an allocation of space and resources for the Incubator to operate with, relative to business size and intention. Office resources, for administration, meetings, collaboration of team members. Industrial resources, for manufacturing, fabrication, prototype testing and storage. Available technology, lab and/or open space for prototype demonstrations, testing, and storage. (Optional) Community centre area with public meeting area, coffee shop with free Wi-Fi, amenities, library and community resources to develop community engagement & input.

People of the Innovation Incubator The Management Team – a small core group to facilitate activities, guide, promote and market the concept to staff The Council of Elders – a resource group of senior/retired business people with experience to contribute – (ex Probus, Rotary?) who meet in the Think Tanks that create or discover the non-technical problem solutions. The Technology Council – experts in the various fields of technology under development who meet in the Technology Think Tank to find solutions to technology issues. Entrepreneurs & innovators invited to attend Think Tank meetings and create the businesses that commercialise the solutions. The wider community, accessing the resources and contributing ideas and inspiration through the community involvement and marketing efforts of the Management Marketing Team

How the Innovation Incubator works A problem, invention, innovation or opportunity is brought to the attention of the Innovation Incubator Management Team. A meeting of relevant Think Tank Members is called to address the issue, with the most suitable members and expertise invited. This could be the Council of Elders, Technology, Trades and Business people and other professionals. Experts in the problem area are invited to present the problem/opportunity. The meeting is run by an expert facilitator and the results recorded for analysis – a number of meetings may be required. Solutions & options are chosen; a team is set to develop & test the options. Once tested and proven viable, the team apply professional and IP resources to commercialise the best solution option. The outcome is the property of an entity set up to commercialise it, which includes the Innovation Incubator (100% Business shareholding) and the entrepreneur/individual that develops it, in a 75% - 25% profit share contractual agreement. Note: If the Solution was taken to a Venture Capitalist for commercialisation, the business/entrepreneur may receive 5% to 10% shareholding at best, & the venture would be listed as an IPO as soon as possible, whereupon the Venture Capital Firm would be paid out from sale of the shares after listing.

Innovation Incubator –Value-Adding Offering the Innovation Incubator to associated businesses for collaboration. Office & industrial space ‘to let’ to businesses & individuals involved in the Innovation Incubator. Collaborative community environment to enable other input from the community. Creating a ‘relevant’ commercial expertise hub, with IP, Technology, industry, legal and other professional services invited in for regular collaboration and sharing resources.

Council of the Elders and Technology Council “Elders” invited in through promotions to Probus and Rotary for senior and retired business and community leaders from a wide range of professional areas of expertise. There may be many “Elder” members. Budding and established Technology experts, innovators and entrepreneurs are invited to be members of the Innovation Incubator and provide their expertise. When a Think Tank meeting is called, invitations are issued to the members of each group whose areas of expertise are most relevant to the issue under consideration. 6-10 Elders or Technology Council members would be invited to participate in the ‘Think Tank’. Experts or parties involved with the issue present it to the meeting. Facilitation is led by an expert facilitator, usually Ray Jamieson. The meeting is either recorded or scribed for reference and concept development, going back over the meeting conversations.

Innovation Incubator Invitees Innovators and individual experts invited to work on a challenge would be utilising the capital and resources of the Innovation Incubator, provided by the Host Business to solve the challenge. They bring their own expertise and IP, but use the Host Business capital and resources to develop their concepts. They profit share their outcomes with the Host Business. Businesses may collaborate to develop JVs. Each opportunity explored is first IP protected in an agreement binding the innovator to the Host Business for ownership of the IP and profit sharing.

Where to next? Your Businesses may be facing specific or intangible challenges or competition, looking for how to gain and maintain a competitive edge, and to evolve into the next phase of its development. An Innovation Incubator may be a solution for you. Contact Ray Jamieson to discuss this concept further, to look at tailoring an Innovation Incubator for your business, or finding another solution for your challenges. Website: www.executivemastermind.com.au Email: ray.j@executivemastermind.com.au Phone: 0411 113110