Richard Okumoto Typical Business Development Steps Bus 290

Phase 1: Pre-Investment Great Idea(s) Team building: founders vs. non-founder First business plan: compelling, feasible, and doable External Organizations: Lawyers, CPAs, Investors Building social networks Getting support; finding advisors; plugging gaps Writing a full-blown business plan How much, how long, how big Building Social and Knowledge Capital

Phase 2: Pre-Investment Knowledge development: defining, linking & integrating functional capabilities & organizational systems Customer, Competitor, & Market Analysis Complete Product Requirements Specification (PRS) Prototype Development Product development based on PRS Preparations for market entry Alpha, beta product rollout (Go-to-Market Plan) Initial product launch Production upgrades & new versions: product road-map Upgrading Functional Systems; building accounting and financial systems – scale for operations Investor relations; finding, getting & managing serious money Building Credibility Capital

Phase 3: Post-Investment Revenues Alliances; securing, deepening, exploiting alliances Knowledge management - Building learning systems Scale business Organization and business process design Going global Sales management; direct/indirect; supplier and channel relations Professional Management

Phase 4: Nearing-Maturity Building a governance system Managing stakeholder relationships: –Employees –Customers –Suppliers –Shareholders –Others More Financing rounds – seed through first, second, third & beyond Growth & profit strategies Liquidity event (if appropriate) privately held; M&A; IPO

Product Development Cycle Bus 290 Rich Okumoto

New Product Development Process