Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

From Invention to Start-Up

“Product Positioning”

October 30, 2008

James Robarts

James@EBCompany.com

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

James O. Robarts

30 yrs – technologist & entrepreneur16 yrs – patented inventor11 yrs – consulting IP strategist 7 yrs – teacher IP management 6 yrs – current startup, location-enabled games for mobile

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

– today’s topic description

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Basic Assessment

A grid that relates• Target market – Business Development• Technical innovation – Scientists & Engineers• Patent rights – Attorneys

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Technology

Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Feature – Function – Tech

Definition

Feature User experience, usually associated with specific task or experience

Function Collection of technologies used to solve a customer problem

Technology …mechanical, chemical, electrical, nuclear, algorithmic components & processes

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Feature – Function – Tech

Definition Value-generating Mechanism

Feature User experience, usually associated with specific task or experience

What does the product do, that the user recognizes as beneficial?

Function Collection of technologies used to solve a customer problem

Conceptually, how does the technology provide the feature?

Technology …mechanical, chemical, electrical, nuclear, algorithmic components & processes

Precisely, how is the function accomplished?

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Product – Feature – Function – Tech

Product Package of features, functions, and messages

How does the product provide benefit?

Feature User experience, usually associated with specific task or experience

How does the product provide benefit?

Function Collection of technologies used to solve a problem

Conceptually, how does technology provide the feature?

Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes

Precisely, how is the function accomplished?

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Benefit – Feature – Function – Tech

Benefit Why buy product?

What is the marketing message?

Customer expectations

Feature User experience How does the product provide benefit?

Function Collection of technologies used to solve a problem

Conceptually, how does product provide the feature?

Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes

Precisely, how is the function accomplished?

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Perceivable Benefits

The most valuable technologies have clear customer-perceivable sources of value• Benefits that can be articulated in customer messages• Customer experience when using distinguishing features

Correlate these with the underlying technology

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Sources of Value

For each target market and customer perspective (purchaser vs. user)What are the benefits?

Comfort (physical, psychological)SafetyHealthCost (purchase, use, maintenance)ConvenienceSpeedAccuracySocial statusFailure mitigationRisk reduction or sharingEase of Use, LearnabilityAesthetics

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Mazda Example

Benefit “Zoom Zoom!”

Feature Rapid Acceleration

Function Lighter chassis Reduced weight & friction

Technology Improved stress modeling Integrated oil pump & cam shaft

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

“Product Positioning…

…is the term used to distinguish one product from its competitors in the market.

Step one in the process is a basic assessment of what you have: • Is this a feature for an existing technology or a separate

product that could generate a platform of products? • Is it a technology that you could license to an existing

company or does it have the potential to become a start-up that dominates a market?”

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Benefit – Feature – Function – Tech – Rights

Benefit Why buy product?

What is the marketing message?

“Zoom Zoom!”

Feature User experience Rapid Acceleration

Function Collection of technologies used to solve a problem

Lighter chassis

Technology mechanical, chemical, electrical, nuclear, algorithmic components & processes

Improved stress modeling

Rights Which claims cover the tech?

Patent application XXX, claim #’s

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

So Which Is It?

“Is this a feature for an existing technology or a separate product that could generate a platform of products?”

“Is it a technology that you could license to an existing company or does it have the potential to become a start-up that dominates a market?”

With our new layered innovation manifestation model we can relate specific technologies and their associated rights to benefits (and valuations) for each product configuration, for each target market.

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

Levels of Innovation Manifestation

Benefits – why buy product? Features – what does it do? (customer) Functions – what does it do? (technically) Technologies – how does it do it? Rights – what do patent claims reserve?

Oct 30, 2008 Copyright © 2008 Excelsior Bonifico Company

From Invention to Start-Up

“Product Positioning”October 30, 2008

James Robarts

James@EBCompany.com