Technology Entrepreneurship & Commercialization
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Transcript of Technology Entrepreneurship & Commercialization
Technology Entrepreneurship & Commercialization
Developing the next generation of Entrepreneurs and the High Growth companies of tomorrow.
… And in the beginning it was written – go forth and start companies!!!
A process-based approach for turning technologies into
business opportunities
• COSEPUP Report:“Reshaping the Graduate Education of Scientists and Engineers,” NAS/NAE, 1995
• NSF / KIETS Grant: “Technology, education, and commercialization:
Development of new concepts in integrated education”
(1995-1999)
Result: a scholarly underpinned process -- TEC
History
Rationale for TEC:Bridge the Gap between Research and Commercial Application
Res
ourc
es
Level of Development
“Valley of Death”ResearchResources
CommercializationResources
Research Facultyand Students
Entrepreneurs and Business Community
• Method for crossing the ‘Valley of Death’
• Roadmap for commercialization
• Process for information gathering and business opportunity development
• Strategic Decision Framework
• Common language and shared goals
The Process or “Algorithm”
The TEC Algorithm
Strategy Development& Implementation
Evaluate Opportunity
Transform Technologyinto Products/Services
Concepts
StartupStartup
ScienceScience&&
TechnologyTechnology
The objective of the Ideation phase is to develop a set of prioritized product concepts with strong T-P-M linkages
Collect Further Info
Product IdeaProduct IdeaPrioritizationPrioritization
&&SummarizationSummarization
MarketMarketDescriptionDescription
Ph 1
ProductProductDefinitionDefinitionProductProduct
DescriptionDescriptionRefinementRefinement
ProductProductIdeaIdea
GenerationGeneration
FurtherTechnical
Development
•TechnologyDescriptionWorksheet
• Initial TPMWorksheet
• Product AttributeWorksheet
•PAMM
•Summary TPMWorksheet
DecisionDecision
Description/Ideation
Phase 1 Objectives:– To eliminate product ideas (not
technologies) based on fatal flaws
Phase 2 Objectives:– To build the business case
Idea
Phase II
FunctionalAssessment
StrategicAssessment
ProductRedefinition Decision
Product Definition
Confirmation
Reject or Retain forFurther Refinement
Phase 1 & 2 Assessments
Yes Determination Determination of Strategic of Strategic
FactorsFactors
AnalysisAnalysisof of
Core AssetsCore Assets
StrategicStrategicComponentsComponents
AnalysisAnalysisofof
ComplementaryComplementaryAssetsAssets
CommercialCommercialStrategyStrategy
BusinessBusinessProposalProposal
DecisionDecision
Reject
Iterate Back
Provides a decision making process leading to the
commercialization strategy and the business proposal.
Commercialization Strategy Development
2005 2006 2007 2008 2009Sales
Units 10,000 55,000 120,000 250,000 400,000 Price 150 150 150 150 150 Product Sales 1,500,000 8,250,000 18,000,000 37,500,000 60,000,000
Total Sales 1,500,000 8,250,000 18,000,000 37,500,000 60,000,000
Cost of GoodsDirect Costs 157,500 157,500 157,500 157,500 157,500 Operations 742,500 4,792,500 10,642,500 22,342,500 35,842,500
Total Cost of Sales 900,000 4,950,000 10,800,000 22,500,000 36,000,000
Gross Profit 600,000 3,300,000 7,200,000 15,000,000 24,000,000
ExpensesDevelopment 289,820 291,191 357,617 415,326 483,245 Sales & Marketing 251,373 1,372,855 3,500,000 4,500,000 5,500,000 Administrative 286,366 400,303 434,841 467,235 500,000
827,559 2,064,349 4,292,458 5,382,561 6,483,245
Other Income (Expenses):Interest Income (1,126) (25,629) (94,926) (94,926) (94,926) Interest Expense (20,005) (67,099) (282,055) (150,000) (95,000)
- - - - - (21,131) (92,727) (376,980) (244,926) (189,926)
Income Before Taxes (248,689) 1,142,924 2,530,562 9,372,513 17,326,829
Proforma Income Statement2005 - 2009
The Top Line has to“make sense” for an opportunity to
exist.
2005 2006 2007 2008 2009Sales
Units 10,000 55,000 120,000 250,000 400,000
Price 150 150 150 150 150
Product Sales 1,500,000 8,250,000 18,000,000 37,500,000 60,000,000
Total Sales 1,500,000 8,250,000 18,000,000 37,500,000 60,000,000
Cost of GoodsDirect Costs 157,500 157,500 157,500 157,500 157,500
Operations 742,500 4,792,500 10,642,500 22,342,500 35,842,500
Total Cost of Sales 900,000 4,950,000 10,800,000 22,500,000 36,000,000
Gross Profit 600,000 3,300,000 7,200,000 15,000,000 24,000,000
Putting the components together:– ensure that the core
technology is commercially viable
– identify required complementary resources
– make partnering, leveraging, and acquisition decisions regarding essential assets
– networking and placement of opportunity with partners &
investors
CORECORETechnologyTechnology
Business Plan
Legal Services
AccountingServices
Mgt Team
Outsourcing
IPMgt
MarketingResearch
FacilitiesMgt
Building the Emerging Case
Creating the Business Proposal
Student Engagement
• Graduate Business, Engineering and Science studentsare placed in multi-disciplinary teams
• Each team is assigned a portfolio of technologies anda team of Executives-in-Residence as mentors
• Students apply the TEC Algorithm to their portfoliosas they learn each phase
• The final product is a Business Plan suitable as the basis for launching a new, high growth venture
Business
Scientists & Engineers
Others
Incomplete
Information
Uncertainty
Risk
Algorithm provides:Algorithm provides:•StructureStructure•LexiconLexicon•Something to believe inSomething to believe in
Everyone is Out of their Comfort Zone
• Provide incentive – start company
• Align goals and rewards – grade on decisions
• Provide support – mentors
Program Environment
Team Based Structure
• Self-directed
• Grade based on decisions made
• Roles assigned and changed
• Mentors
Student Impact
•Encourages alertness to entrepreneurial opportunities among graduate scientists and engineers.
•Enables career advancement - TEC graduates have gone on to become entrepreneurs, business leaders and company founders. •Provides valued skills that lead to advancement and promotion within organizations.
Local Impact
• Responsible for attracting $200+ Millionof Venture Capital to Triangle companies
• Over 350 new jobs created
• 250+ graduates of the program
• Consulting and Training in Fortune 500companies
• Adoption of the processes by large corporations
12+ Years of Experience and Results
MYCOSOLMYCOSOL
Start-ups and Licenses Created or Supported
Known Start-ups by TEC’s Graduates
CronosCronos
Universities
Diffusion of the TEC Approach
University of Cape Town University of Aveiro
Dublin City University
Loughborough University
Ohio State University
University of Ljubljana
Escola de Gestão do Porto
Universidade do Minho
Universidade do Porto
Universidade Católica Portuguesa
Universidade do Novo
Deadeok Innopolis Venture Assoc
Universidade Técnica de Lisboa
Instituto Superior Técnico
Universidade de Coimbra
Email: [email protected]: 919.515.5717Fax: 919.515.9813
North Carolina State UniversityCampus Box 7229
Raleigh, NC 27695-7229
Roger DeboDirector
TEC Program