Global E Lab Starting to Develop your Project Analysis

Todays Agenda At least two types of project analysis that relate to technology strategy Value Creation Value Capture Consider salient global (non-US) issues and challenges that relate to technology strategy & some key data sources to get you started…

Simple (familiar) framework for technology strategy issues

Question: What types of analysis are you being asked to do? Value Creation What should our product portfolio look like, do we have the right product map? How do we move our products into new markets & new countries? How should our technology development plans be structured? Product development process mapping Value Capture Competitive analysis in different markets Building up complementary assets Partnership analysis – what partners should I approach?

Example: Gradipore, Australia Who are they? Novel bioprocess technology – Gradiflow Key challenge I -- Accessing talent pool to speed development –Partnership with University of NSW for training & service management –Partnerships with UK universities Key challenge II – Accessing the sophisticated US market –US technical advisory board –Continual presence in US meetings –Find a US customer with a presence in Asia

Frameworks & Heuristics from Technology Strategy Value Creation Market dynamics Mapping technology to products & markets Network or product value analysis Value Capture Uniqueness & protection Value chain & complementary assets Establishing & exploiting standards

Value Creation: Understanding market dynamics

Some g.lab guidelines How can you create new markets? How sophisticated are customers- what assumptions can you make about technical savvy? e.g. GMO Cotton in India; HIV drugs in Africa What needs to change about the technology to influence adoption? e.g. PDAs in India Who is the lead customer? Are they representative? Can you learn from country to country? INFO: Market reports, country analysis – World Bank, Disclosure Select for foreign firms, EIU Country Profiles

Value Creation: Match technology to different markets to maximize chance of success Map out the Technology / Market path Map out product offerings – project portfolio planning

Technology Risk-Customer Value Mapping

Product Generation Map

Process of Market-Technology Mapping Process of Market-Technology Mapping Phase progression indicates increasing investment and decreasing risk.

Some g.lab guidelines Realistic expectations about pace & necessity of technology development – careful mapping with their experts Does the firm have access to appropriate technical knowledge base? Can you help find key experts in the US, esp. MIT What are the key US conferences, meetings etc.? Seek out potential sources of local expertise Awareness (not obsession w/) disruptive technology INFO: Journals, industry guides, analyst reports, CorpTech for US firms; Emerging Markets; Euromonitor

Some g.lab guidelines Can you map out a product platform strategy in the light of key market challenges? Customization for each national market can be costly & complex & reshape economics What would you need to accomplish (from a technical perspective) to enter the US market? Is it realistic? What about competitive offerings? Problems with proliferation of projects (not unique to non-US firms) INFO: CorpTech, Hoovers (esp. for Europe), InvesText for analyst reports

Value Creation: Great Product Value v. Network Value GPV: Great product value –Consumers base their purchase decision on the intrinsic value of the product to them –Competition on the basis of features, price etc NV: Network value – –Consumers base purchase decisions on the size of the (actual or projected) installed base – –Competition on the basis of the size of the installed base, availability of complementary products etc

Some g.lab guidelines What are the dynamics of (network) product adoption in your market? Connectivity? Dynamics of sharing How can you best develop the required complementary products? Do they already exist? Are you developing them for a US firm? INFO: Juniper Communications; InfoTech Trends; Gartner Group; Yankee Group Reports

Value Capture: Core competencies (technological & other) Uniqueness: Are the competences unique & competitive in different market settings? Appropriability: Can they be protected? US patent searches can be useful Recall key differences in IPRs across countries Possible licensing opportunities How important are key people…. Nature of the labor market e.g. telecoms software in Jordan Can you keep them? INFO: Patents from competition from analyst reports (esp. Europe); EIU; European newspapers e.g. FT often useful country analysiswww.uspto.gov

Value Capture: Reviewing the Value chain Analysis of all the steps necessary to deliver a product to the customer What segments of the value chain does your firm want to occupy? What segments are the most profitable? R&DSourcingManuf.Distrib. Mkt. Cli. Mgmt.

Value Capture: What Are Complementary Assets? Theose assetsnecessary to translate an innovation into commercial returns: What can we access here? What can we develop ourselves? What must we develop ourselves?

Some g.lab guidelines What complementary assets are locally available? CMOs, distribution channels may not be available e.g. Australias biotech firms Conglomerates – are CAs in the hands of large national conglomerates e.g. Koc Group in Turkey Does lack of CAs change the way you deliver your product (and the economic proposition)? US partners may be valuable but challenging to work with –what do they bring & at what cost? UK biotech firm locates business development in MA close to major pharma customers

Value Capture: Setting or working within industry standards

Some g.lab guidelines Can you use regulation to shape standards? Non-market strategies Government relationships e.g. environmental regulation Participation in standard setting bodies – is this possible/ necessary? INFO: for info on cellular and wireless; e commerce & law reportwww.emc-database.com