The New Environment for Tech Commercialization Kathleen Allen Ph.D.

Technology Commercialization What is it? Why do we do it? How can you make it work for you?

Technological Change Entrepreneur Emerging Customer Segments Unsatisfied Existing Needs New Customer Needs New Methods of Manufacture & Distribution Technological Change Higher Productivity & Economic Growth

Todays Technology Environment Key Factors

The Importance of Speed Competitive advantage More profit potential from shortened time to market Fewer surprises

The Lack of Scarcity Knowledge products at the core of technology environment KP defy the law of scarcity No diminishing returns Network efforts and economy of scale

The New Product Dilemma Build new products –Better –Faster –Cheaper

Types of Technology

The Starting Point: Defining Innovation Invention v. innovation Sustaining v. disruptive innovation (aka incremental v. radical)

Characteristics of Disruptive Technology Less profitable in the early years Need mass market acceptance to achieve full value Cheaper, smaller, simpler, more convenient Display poor performance

Disruptive Technologies: Looking for a Problem

Primary Disruptive Technologies for Next Decade Gene Therapy Nanotechnology Wireless

Why are Disruptive Technologies Important?

Stats on the Best Product Development Companies Research of R.G. Cooper 49.2 % of sales from new products 49.2% of profits from new products 3.5 ideas before achieving one winner ROI on successful new products is 96.9% Payback in 2.49 years Average market share = 47.3%

3DP: Tapping the Power of a Core Technology

3DP

Why does the 3DP Process Create Opportunities?

Why does it create opportunities? Produces disequilibrium in the market: value created from 3DP greater than cost of resources to make It is a disruptive technology with a relatively short life Opportunities large enough to compensate for opportunity cost, risk premium, liquidity premium

Why do concepts fail?

Not Understanding the Customer

No compelling story

Whats the Compelling Story? Why you? Why now? How do you plan to change the world? AKA: How do you heal the pain?

The Technology Commercialization Process

Discovery Invention Disclosure Provisional Patent Decision Technical Feasibility Concept Investigation Market Feasibility Commercialization Decision Prototype/ Application Development License Start-up Acquisition Market Launch Bringing New Technology to Market Patent Portfolio Management Feasibility Analysis Skills Independent Prototype Builder

R&D Relationships- Managing Risk F. Peter Boer (1999) The Valuation of Technology Opportunity Certainty Cost Diversification Finding & Screening Ideas Conceptual Research FeasibilityDevelopment Early Commercialization

Summary What is it? Tech commercialization is a parallel process of radical and incremental innovation, the determination of technical and business feasibility, the creation of intellectual assets, and the development of a plan to enter the market. Why do it? To build a sustainable company

E-Teams for Commercialization Success Marshall School of Business School of Engineering Keck School of Medicine

E-Teams VR Systems Engineering- IMSC Business - MBA Feasibility Analysis Market Technology Financial

Technology Teams – Fall E-Teams G-Ceptors-Caltech Julie-Ann Pina Melanie Corcoran VR Systems - IMSC David Groves Greg Walbridge Sung Hoon Hong Virtual Visit -BioMed. Jennifer Sullivan Katlyn Cho Hyoung Lim CCG-NASA Gary Hersch Microwave Bonding-Caltech John Fischer John Heckert Yima-IMSC Karen Corwin Didi Yao VR Systems David Groves Greg Walbridge Sung Hoon Hong Smithsonian Presentation

Kathleen Allen Ph.D.