1. Technology Commercialization.
ES Technology Limited
Technology Commercialization.
Krakow 09 September 2012
Edward Scott
Thank you for inviting me here today to speak to you about my take on Technology Commercialization. My name is Edward Scott from ES Technology Limited based in Auckland New Zealand.
This subject is my passion and I could talk on it for hours but as I only have 20 minutes, I will keep this short.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

2. Technology Commercialization
ES Technology Limited
Technology Commercialization
Technology - The making, modification, usage, and knowledge of tools, machines and techniques, in order to solve a problem, improve a preexisting solution to a problem and achieve a goal.
Commercialization - The process or cycle of introducing a new product or production method into the market
Technology commercialization
Technology Commercialization is a specialist field and it is very important to understand what this entails.
So let's get started by defining what it actually is before we get into the details
To do this I will start by breaking down the term " Technology Commercialization" into its key Elements
Wikipedia describes Technology as the making, modification, usage, and knowledge of tools, machines and techniques, in order to solve a problem, improve a preexisting solution to a problem and achieve a goal
Commercialization is described as the process or cycle of introducing a new product or production method into the market
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

3. Technology Commercialization
ES Technology Limited
Technology Commercialization
Technology Commercialization
So we can conclude that Technology Commercialization is
The process of introducing a new product or system into the market using new or improved techniques or tools.
The process of introducing a new product or system into the market using new or improved techniques or tools.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

4. ES Technology Limited Technology Commercialization
Technology Commercialization is an adventure filled with thrills and fraught with danger. Knowing the hazards, you can avoid the pitfalls, and that makes it a great deal more predictable. Many have become stuck in the mud, but countless others have achieved their great dream and changed the world in the process making a lot of money. I don't have all the solutions but I can help you avoid the many traps that lay ahead using a few tips that I have used to drive growth within the businesses that I have had the privilege of working with over the years.
What most people ask me for is “What is the roadmap to success”?
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

5. ES Technology Limited The Roadmap to Success
To do this I often simplify it to 5 basic principals, namely:-
The Roadmap to Success
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

6. ES Technology Limited The Roadmap to Success
Research and Identify the market
Find and understand your customers
Invent and innovate
Protect - patents, trade marks, know how, etc
Build a business - Commercialize
Roadmap to success
Research and Identify the market.
Find and understand your customers.
Invent and innovate.
Protect. Patents, trade marks, know how, etc.
Build a business. Commercialize.
I will keep coming back to these 5 key topics during the course of my presentation.
The first and probably the longest is research.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

7. Research and Identify the market
ES Technology Limited
Research and Identify the market
LEARN THE EASY WAY
Diversions
Traps
Pitfalls
Research & Identify the market. Learn the easy way.
On the pathway to success there are many
diversions,
traps,
pitfalls.
I will do my best to point these out to you so that you may avoid them. 90% of your battle will simply be to
Avoid learning the hard way, lessons that have already been learned by someone else.
At the outset, it is essential to,
Be realistic about the time and money required to develop, patent and successfully commercialize a technology as well as bring it to market.
A good rule of thumb is that it often requires more than a year and,
Could cost hundreds of thousands to millions of dollars.
Trial and error has no place in Technology Commercialization, reserve that for cooking in the kitchen as your family will be more forgiving than the market.
Avoid learning the hard way
Be realistic
More than a year
Cost millions of dollars
Avoid trial and error
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

8. Research and Identify the market
ES Technology Limited
Research and Identify the market
What don't you know?
What do you wish you knew then?
Most don't realize how difficult it is
Most don't understand how long it will take
Research and identify the market
What are the things that those who have successfully commercialized technology know that you may not?
What are the things you wish someone would have told you all those years ago so you did not make the mistakes you did?
These are the questions that we should all be asking ourselves.Through the process of assisting many companies and individuals in successfully commercializing their technologies, what have I observed and learned?
First, I have found that people without experience in bringing a new technology to national or international markets usually do not realize how incredibly difficult it is to do so.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

9. ES Technology Limited
The process is long, large, expensive, and complex
The process
The process is long, large, expensive, and complex.
Many people can handle all of those problems and more, and maybe you can too. However, the real key to your success will be in understanding them all and effectively dealing with them.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

10. “A hole in the market does not equal an opportunity in the market”
ES Technology Limited
Are you first?
“A hole in the market does not equal an opportunity in the market”
Find out if you are first
Something to remember is that “A hole in the market does not equal an opportunity in the market”.
It is unwise to assume that just because you can look around and not see your idea on the market that.
You were the first to have the idea.
There is an opportunity to profit from your idea.
First to have the idea
Opportunity to profit
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

11. ES Technology Limited
Remember to be weary, Others may have tried and died so avoid the same fate.
“Others may have tried and died so avoid the same fate”
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

12. Talk to your peers in the industry
ES Technology Limited
Talk to your peers in the industry
It may have been tried before
Past failure may not mean your failure
Talk to your peers in the industry
The importance of talking to players in your industry, especially those who have been around a long time cannot be overstated. It is of course possible that the reason your idea is not on the market is because somebody else tried to market such a product and was unsuccessful.
Fortunately, there are a great many reasons why the person could have been unsuccessful, and it is not automatically true that all other persons trying to market a similar product will meet the same sad fate.
So where do you begin?
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

13. The Best 1st Dollar you can spend
ES Technology Limited
The Best 1st Dollar you can spend
Your first dollar is best spent on sound advice as it can save you a great deal of pain and dollars in the future.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

14. The Best 1st Dollar you can spend
ES Technology Limited
The Best 1st Dollar you can spend
Patent submissions
Invention promotion
Advertising that they don’t need or understand
Unnecessary inventory
The best first dollar
I am constantly amazed at how many entrepreneurs will spend thousands of dollars on
Patent submissions
invention promotion
Advertising that they don’t need or understand
Unnecessary inventory
and many other large expenditures, but they just will not open up their wallet to pay for good sound independent advice
Before you spend all of your money on all of that other stuff, why not make sure that you are
Doing it right?
Competent advice is expensive, but can be well worth it. Just be sure that you are hiring someone who really knows what they are doing.
Ask for references and get referrals from other businesses, then
Interview at least three advisors before selecting the one to assist you.
Do it right
Competent advice
Ask for references
Interview
Sound competent advice
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

15. Holistic approach to technology commercialization
ES Technology Limited
Holistic approach to technology commercialization
Manufacturability
Economics
Marketing
Use by customer
Market size & growth rate
Holistic Approach
It is important to take a holistic approach in bringing new technologies to market, especially in researching the overall environment into which your new product will be born.
The viability of a new technology in the marketplace is directly linked to its,
Manufacturability.
Economics.
Marketing.
Use by the consumer.
Market size and market growth rate.
This is sometimes the weakest of these links. It is possible to create new markets or to turn them in a different direction, but this is exceedingly difficult.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

16. Good ideas - Bad Products
ES Technology Limited
Good ideas - Bad Products
Not viable manufacturing techniques
Expensive
Apprehensive market
Ahead of its time
Good ideas, Bad product
The factors covered in the previous slide must be considered as a whole. For instance, a new product idea may have marketable features and benefits, but it may not be feasible to
Manufacture it.
It might be too expensive to manufacture.
There may be an apprehensive market.
It may be ahead of its time.
New product developers often overlook this resulting in failure.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

17. “The advantage your product has over your competitors”
ES Technology Limited
Competitive advantage
“The advantage your product has over your competitors”
What is it ?
Don`t focus on the attributes alone
Dominate your competitors
Research the market
Do your homework - be prepared
Understand the rules
Competitive advantage
We heard from many speakers yesterday about the importance of establishing a competitive advantage.
It is very important to assess your competitive advantage.
There has been much discussion on the importance of this. It is typically recommended that this be done during the marketing research phase.
You need to determine what your competitive advantage is, but don't focus too much on your products attributes but more on the business that you build around it
If you intend for your product to compete in the marketplace, then your marketing is critical to your competitive advantage.
Plan to totally dominate your market and your competitors
The point here is that maintaining a competitive advantage is not only about having the best technology but more with doing the best with it
It is important to have the best technology, but you don’t make any money just by having it; that is just your starting point. Once you have the best product, then you can enter the race but you must understand the rules of the race you are entering.
What is it.
Don`t focus on its attributes alone
Dominate your competitors
Research the market
Do your home work
Understand the rules
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

18. “Is there a need for my invention - NO”
ES Technology Limited
Consumer need versus market demand
“Is there a need for my invention - NO”
Market need
Market demand
Difference between need and demand
Consumer Need versus Market demand
My clients often show me their new products or inventions and the proceed to ask me if I think there is a market demand for it.
My answer to this is always NO.
3 aspects that have to be understood are,
Market need.
Market demand.
Difference between need and market.
You can and must research the need for your new technology, however it is important that you understand the difference between market need and market demand. Most people assume that need and demand are equivalent.
Most entrepreneurs focus too much of their market research on determining whether potential customers have a need for their technology rather than on determining how to create a demand for their technology in the market. It is important to determine whether consumers have a need for your product, but much more important to determine why people buy products.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

19. Market - Need Versus Want
ES Technology Limited
Market - Need Versus Want
Q - Why would someone buy something they did not need?
A - Because they wanted it
Q - Do you know someone who bought something they did not want?
A - Of course not
Market research, Need versus want.
Think about this, Have you ever known someone who bought something that they did not need? Of course you have!
Question. Why did that person buy something they did not need?
Answer. Because they wanted it!
It is only when a large group of people want something that they create a market demand. Need is only one small element of want, and subsequently, demand. Need is only one of many reasons why people want something.
Think about the opposite case to the question I asked above.
Question. Have you ever known someone who bought something they did not for some reason want?
Answer. Of course not!
Think about which is more important in the purchasing decision.
Need or Want.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

20. ES Technology Limited Need versus want
Steve Jobs from apple is a great example of an Entrepreneur that set out to establish what his customers wanted not what the needed.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

21. ES Technology Limited I want a Ferrari I need a car Need versus want
Lets consider the following example.
I need a car but I want a Ferrari - what is interesting from the above is that the want comes at a much higher price than the need. You can charge a much higher price for products that people want than you can for products that they simply need.
How, you may ask, can there be a need for a product but no demand for it? Well, the most obvious answer is if the market is not even aware that the new technology exists.
For example - If I invent a simple inexpensive device that converts lead into gold, would there be a huge number of people who need that product. Of course there would.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

22. ES Technology Limited Question
Need versus want
Steve Jobs from apple is a great example of an Entrepreneur that set out to establish what his customers wanted not what the needed.
How can there be a need for a product but no demand for it?
Answer
If the market is not even aware that the new technology exists.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

23. ES Technology Limited The “what if” scenario Should I tell anyone?
Should I tell everyone?
What if no one believes me?
The “what if” scenario.
Three scenarios to consider
How about if I do not tell anyone that I have developed this technology, will there be a market demand for it? Of course not.
How about if I attempt to tell the market, but nobody listens?
How about if people listen but nobody believes me?
If you think about it, you can see that the last two of the above scenarios are just as bad for me as the first. And if you think more deeply, you will see that the last two are actually far worse than the first, because at least the first does not cost me money!
Which would you rather try to build a business around… a technology for which there is a need but no demand, or a technology for which there is a demand but no need? To take it further: How would you like to build a business around a technology for which there is both a need and a demand?. That would be the best outcome by far but this is rarely the case.
“A market need for a technology exists on its own merit.
A market demand for a technology must be created”
“A market need for a technology exists on its own merit.
A market demand for a technology must be created”
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

24. Ingredients for success
ES Technology Limited
Ingredients for success
Find out what your customers want
Offer it to them
Ingredients for success
Find and understand your customers, How to succeed.
I am often asked this question, "What is the formula for success?”
Find out what your customers want.
Offer it to them.
Now let's move onto the second point,
Find and understand your customers
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

25. Find & understand your customers
ES Technology Limited
Find & understand your customers
Find great customers
Do your research
Don`t sell to anyone who says the will buy
Your customers can kill your business
Unreasonable
Habit of non payment
Never know what they want
Too big for you
Push for lower price
Reverse engineer your product
Go into competition against you
Find Great customers
How do you target or better still, find great customers. The biggest mistake people make is trying to sell to anyone who "says" they will buy. That is not the same as committing to buy, all they are saying is that if you make it we "may" buy
A common pitfall is “Selling to anyone who says they will buy.”
Wisdom: Pick great customers. In fact: Pick great customers, personnel, and vendors– surround yourself with excellence
Most entrepreneurs have a very difficult time picking the right customers. They simply chase whatever sale they can get. However, your customers can kill you.
Some customers are,
Some are highly unreasonable and demanding.
Some have a habit of non-payment.
Some never know what they really want.
Some are too big for you to handle.
Some will cut you out if they can find a slightly lower price.
Some will try to reverse engineer your product and give it to one of their more preferred vendors
Some will try to go into competition with you; some will… well, the list is endless, really.
The world is full of pitfalls for the unwary and unprepared.
Be sure to vet your potential customers as thoroughly as you vet your potential employees and vendors. The quality of each is of great importance to your business.
Just as you may need to fire an underperforming supplier or employee, you may need to fire an underperforming customer. Each is a very difficult decision, and you have to be prepared to make some seriously hard calls.
As important as it to pick great customers, be sure that you do your homework by checking references, thoroughly research your target customers.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

26. Sustaining your business
ES Technology Limited
Sustaining your business
What to do next?
Sustaining your business
What’s keeping you up at night – If you like me there are some days when I wake up at 2 in the morning wondering what I need to do next to sustain my business, especially in the current environment.
What do you do next?
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

27. Staying ahead of your competition
ES Technology Limited
Staying ahead of your competition
Customers are restless
Customer want more but want to pay less
Staying ahead of your competition
How do you stay ahead of you competition?
Customers are restless, sharpening their pencils with every order wanting to spend less but demanding more.
So how do you ensure that you lead and never follow? By Innovating! And this is the third topic.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

28. ES Technology Limited 3. Innovation
Innovation is the creation of better or more effective products, processes, services and technologies
Innovation.
Wikipedia describes Innovation as the creation of better or more effective products, processes, services and technologies
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

29. ES Technology Limited Why Innovate ?
Without innovation - your business has no future
The ultimate goal of innovation is to create value in the minds of your customers – whether this is business to business, directly to the end users or consumers.
Why Innovate?
Not wanting to state the obvious, but innovation is the key to success,
if you don't innovate your business has no future
The ultimate goal of innovation is to create value in the minds of your customers – whether this is business to business, directly to the end users or consumers.
Innovation is not a luxury to be kept on the back burner. Innovation builds brands, which means profitable growth.
I would go so far as to say that Innovation is an absolute requirement more so in todays economic environment than ever before.
There are plenty of reasons to innovate especially in times such as these. Yet the questions still remains, what are the key issues around getting started or more importantly, what is required to successfully commercialize technology?
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

30. ES Technology Limited 4. Protection
Patents do not = protection = good business
Should I patent?
Only 2% of patent holders make money from their inventions - USPTO 2010
50 granted patents only 1 makes money
98% fail to make money on their invention
Protection.
Does innovation = patents? A common misconception is that the innovations = patents. Not the case
Should I patent.
In 2010, the USPTO received over 480,000 patent applications. According to the U.S. Small Business Administration, small businesses not only are the main engine of job growth in the U.S., but they produce about 13 times as many patents as do large corporations.
In addition, the USPTO has done studies showing that the percentage of patent-holders who make money on their invention is only 2%. For every 50 inventors receiving a patent, only 1 makes money. 98% of inventors fail to make money on their invention.
Note that in these 98% of cases the inventors did not fail to generate a patent, they failed to generate a profit
The final topic is, building your business.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

31. ES Technology Limited 5. Build your business
Turning a new technology into a dominant business
Find the IP - The Funnel process
The Commercialization Process
The Market
Build your business - Turning a new technology into a dominant business
As I have mentioned before, a great idea is not necessarily a great business.
I like to look at it as the process involved with turning a new-technology idea into a dominant business. You do this possibly because you may have seen others achieve, and perhaps you come here somewhat spurred by envy.
Commercialization is often confused with sales, marketing or business development. The Commercialization process has three key aspects:
Find the IP - The funnel process. It is essential to look at many ideas to get one or two products or businesses that can be sustained long-term
The Commercialization Process - It is a stage-wise process and each stage has its own key goals and milestones
The market - It is vital to involve key stakeholders early, including customers
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

32. Successful Technology Commercialization
ES Technology Limited
Successful Technology Commercialization
Successful technology commercialization.
Whether developed by an independent inventor, small business, or major corporation, a great many new technologies have aspects that are patentable.
Everyone of us has had a dream of developing and successfully commercializing a technology for one of two purposes, to make loads of money or to help heal the world.
A dream is a wonderful thing and it can seem motivational. But a dream is just a high octane fuel waiting for the spark of ambition to unleash its power in the engine of persistence. Martin Luther King had a dream, but he got the job done through strategy, planning, and persistence.
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

33. A Great technology does not = a Great company
ES Technology Limited
The Key to success
The Key to success.
Having climbed the stairway of technology commercialization, I have seen many highs and lows. Straight up I will tell you I have learned far more from the lows than from the highs. I have guided a host of companies traveling down the commercialization pathway and in them I have seen both failure and success. There are numerous books out there on "formulas to success" some offer you steps to successfully commercializing your technology, some consultants charge you 10s of thousands of Euros to tell you most of what you already know. In my opinion, the formula for success is very simple.
Great Technology does not necessarily = A Great company.
You may have what it takes to succeed in commercializing your new technology, but you must realize that a great technology is just the start.
A great technology is simply that, a great technology. It's not and never should be considered a great business. The history books are full of examples of great ideas, great technologies that simply did not make great businesses. The key is knowing the difference and acting on it
A Great technology does not = a Great company
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand

34. References:- S.Overhault
ES Technology Limited
“Success is the result of unrelenting Persistence and unbounded optimism”
Thank You!
“Success is the result of unrelenting Persistence and unbounded optimism”
Edward Scott
ES Technology Limited
12 Steed Road,
Waitakere, Auckland
New Zealand
References:- S.Overhault
Edward Scott - ES Technology Limited - 12 Steed Road Waitakere - Auckland - New Zealand