What’s Coming  Today  Market presentation- Bioremediation (20’)  Commercialization Options (40’)  Work Session- market research and commercialization approach (60’). Roving mentors available Assignment: Organize questions and schedule first meeting with inventor. Get feedback from your mentor on market research & potential commercialization plans  Monday (2/4)  SWOT Analysis and assumptions for commercialization plan (60’)  Work Session (60’) Assignment: Refine assumptions, SWOT, and commercialization plan. Presentation and written summary is due late next week.

Commercialization Options- ► As you develop your commercialization strategy, you will need to consider four related decisions:  Commercialization approach- spinoff vs licensing  Form of your offering- product, service, “razor blade” model,  Position in the Value chain- where are there profitable openings?  Risk vs benefit- harvest the “low-hanging fruit” or plant a new tree? ► Decisions for each will depend upon  The nature of your intellectual property  Effective market research- KNOW YOUR CUSTOMER, MARKET, AND COMPETITION!

Commercialization Options ► All IP under consideration is “owned” by OSU, which as a public entity cannot run a for-profit enterprise ► Fundamental possibilities are  Spin-off: Start a new company from the ground, OSU transfer rights to the company to market products or services based on IP  Cash or Equity stake?  License: Identify an established company which could benefit from use of IP to improve its product, reduce costs, etc. Sell a license to use OSU IP.  Exclusivity?  License fee, based on enhance revenue, or other approach?

Spin-Off or License Spin-off Firm License to Established Firm RadicalIncremental TacitCodified Early Stage Late Stage General Purpose Specific Purpose Significant Customer Value Moderate Customer Value Major Technical Advance Minor technical advance Strong IP Protection Weak IP Protection ???

Form of Commercial Offering ► Be creative in defining your market entry! ► There are many ways to extract value from intellectual property  Consumer product  Consumer service  B2B product or service  Host unit and replacement model  Etc ► This is where you can add the greatest value! You have a very different perspective than the inventors

Positioning in the Value Chain Value chain: “The activities that one undertakes to deliver a product or service” Value chain: “The activities that one undertakes to deliver a product or service” Identify the best entry points into the value chain that offered by your IP which * Have a low barrier to entry * Can be protected with existing IP * Have perceived value to customers (this can be the consumer or other businesses- B2B) * Are profitable! * Are profitable!

Risk vs Benefit ► Know the risks in your commercialization plan, and the level of risk your sponsor will tolerate ► Be up-front about the risks and address them whenever possible! ► Types of risk: People, funding, infrastructure, technology, market acceptance, regulatory issues, schedule… ► Risk is not always bad! However avoid risk without a corresponding benefit  Is there a less risky way to achieve the same benefit  Keep a list of risks and contingency plans  Know the “project killers” and track them

Let’s get started!!!