Commercialization strategy

At a high level, clearly state what products and services are being offered to the market. Identify, at a high level the anticipated pricing strategy at the end-user level and for the expected distribution channels. See full list on channelinstincts.

Chris Zook in, Beyond the Core, addresses the concept of Adjacency or the relationship of an opportunity to your core business and competencies. Shared Economics – There are five dimensions that when evaluated and measure the distance from the core and can be used to determine the degree of relationship to the core: 1. Competitors – Are they the same as, or different from, competitors currently encountered? Cost Structure – Is the cost structure (infrastructure) the same or different?

Channels of distribution –Are these the same or different? Identify who is (are) the targeted customer(s) – end-user, big box retailer, distributor, internal business unit, etc. Why is this customer believed to be the real customer? It is toward this customer that the Business Proposition will be initially oriented.

The business proposition describes what the product or service offers that no other product can. It is important that the Business Proposition be benefit focused. For example, Coke quenches thirst. Coke is also a good rust remover but it will NEVER advertised as such. The Business Proposition should take caution not to over advertise advantages – in other words, DON’T clutter the message.

The more focused the message, the more likely to clearly communicate it. When developing a business proposition think of what people are buying. Buyers want to feel the wind in their hair and the thrill of feeling the force of their heads being pushed against the back of the seat.

Unless this product is for a total new and untapped market, customers have choices. Real Reason to Believe– What gives the custom. Customers buy the SATISFACTION OF NEEDS. Questions to be answered are: 1. Where will the product be sold? Who will sell the product?

This may need to be clarified in later, but initially, choose the logical area(s) that fits in with your Value Proposition. How do you distribute your product? What is (are) the expected distribution channel(s)? The closer the alignment, the greater the probability of success.

The Value Chain and Business Processes must be aligned as close as possible to the Value Proposition. Consider the following: 1. Given the information available, give a high-level assessment of the business potential for the three years after commercial launch. Try to be realistic, meaning not overly optimistic nor overly conservative. Items to consider are: 1. Gross Margin and Gross Margin as a percent of Sales 3. Operating Income and Operating Income as a percent of Sales 4. What significant commercialization items can keep this effort from being successful? What support is needed from management, gatekeepers, resource managers, etc.

Write out what the risks are and rate them High, Medium or Low. Put a few ideas down on how you can mitigate these risk. A successful commercialization strategy starts in the early stages of product development, with strategic clinical trail design so that the right evidence will be available to support not only market approval, but also acceptance by all key stakeholders: regulatory authorities, physicians, patients, HTA bodies and payers. The researchers surveyed 1startups that had successfully commercialized a new technology. They found that possessing at least one patent — an indicator of relatively secure intellectual property rights — increased the probability of cooperation.

The term commercialization is used with negative connotations for things such as public services , art and music that are viewed as being above commercial interests. Large multinational corporations have developed many of the existing IP portfolio strategies. However, it is important to understand how those strategies function in order to begin applying them in your own IP strategy.

According to IP expert James E. Limit internal prosecution to innovation that can be most cost-effective and deployed rapidly internally 2. Acquire those assets that are most efficiently deployed by others 3. Using the basic portfolio management strategies mentioned above, a startup should focus on the innovation and research that is central to the company’s core business goals. Next, they should understand what other technologies complement their offering, and look to form partnerships in order to create higher value solutions. Lastly, they should ensure that their resources are directed towards the core IP that supports the business goals. The IP strategy should be tailored to support those goals by maximizing the legal protections available and minimizing risk and liability. Licensing out IP can generate a stream of licensing royalties.

Bear in min however, that the terms of a licensing agreement are very important. It is possible that a potentially useful licensing agreement can result in very poor for a startup. Such a situation could occur, for example, if you sign an exclusive licence with a partner who doesn’t expend a proper effort in marketing or developing the technology. In this case, using “a stick” would mean threatening others with potential patent infringement and demanding a licensing fee.

This amounts to imposing a cost disadvantage on a competitor or extracting a rent. Offering or giving “a carrot” would involve looking for win-win licensing solutions. One variation is technology licensing, which is a non-exclusive license coupled with the transfer of know-how and technical support. Technology licensing is used by companies such as Qualcomm and ARM.

One of the simplest means of monetizing an IP asset is commercial sale. Increasingly, new markets exist for the sale of IP assets, such as patent auctions, online sales and deals with licence enforcement companies. What are the steps to market a product? Commercializing new technologies takes expert knowledge and planning. The strategy behind commercialization is critical to the successful outcome for both short and long-term goals.

LCG has a developed and proven market evaluation methodology to help with early adoption, and to launch the product with clearly defined steps. It is not a case of just launching a product and hoping for the best. You should also state what the pricing strategy is going to be for both distribution channels and the end-user.

Understanding how closely the product being launched aligns to the business core can determine some of the strategic directions required for the commercialization plan. The closer to the core, the fewer new strategies are required as a lot of the infrastructure would be re-usable. The more diverse from your core the more work is involved in setting up the new infrastructure.

Chris Zook in ‘Beyond the Core’ addresses several things when looking at a product opportunity with respect to the commercialization plan: A. As with any risk analysis, you need to identify all the risks and potential issues that could affect the commercialization of your product. Core – Known business strengths and competencies B. Once the risks have been written down, rate them from high to low and ensure you have risk mitigation actions in place to overcome the risks. One method of generating a risk analysis plan is to follow the steps below (this is pretty close to an FMEA): 1. Risk Description:- Detailed description of the risk 2. Rank the Likelihood of the risk occurring: – How likely is the risk to occur?

Rank the impact of the risk occurring: – What will the impact be if the risk did occur? Calculate risk value:- multiply the two values to get a risk value 5. Assess risk values:- Assess the risk values. A good way of doing this is with a Pareto chart 6. Generate action plan for all critical risks:- Actions need to be generated that mitigate the risks as best can be 7. Re-evaluate risks after actions are in-place:- Re-evaluation will allow you to review and a. To maximize your chances for success, you need to be thoughtful in developing the strategies behind your new products. Innovations can happen in the commercialization of a product as easily as in the product itself. Think about all the ways you can build upon and leverage your commercialization strategy and you might find your sales teams more engaged in the product launch, your customers understanding what’s in it for them, and ultimately your new product goals being achieved.

The Phase I proposal shall (1) forecast the potential and targeted application(s) of the proposed innovation and associated products and services relative to NASA needs (infusion into NASA mission needs and projects), other Government agencies and commercial markets, (2) identify potential customers, and (3) provide an initial commercialization strategy that addresses key technical, market and business factors for the successful development, demonstration and utilization of the innovation. Independent Arrangement or a Supply Agreement and if a Supply Agreement is electe an election of one or more of the supply options and the retail sales options set forth in the Supply Terms. We involve this customer during prototype buil then we give this customer access to our prototype engineers so they can continue the work on our product.

How well it lands and spreads in market is defined from the cost of acquiring a new user (or customer). The technology must have practical applications for specific markets and customers. Assessment FAQs What if I believe that the IP should be licensed non-exclusively to all potential users for the public good? Successful commercialization demands that manufacturers address three critical areas of opportunity — evidence, access and adherence. A good starting point for writing a commercialization plan is a clearly written statement that identifies the overall commercial goal of the project.

This is your vision of what the product will do to meet a need and whom the project will affect. Define the specific problem or opportunity addressed and its importance. Develop the Marketing Mix : The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty.