Technology Acquisition and R&D with Enterprise Ireland, PJ'O'Reilly

TitleSub-title

PLACE PARTNER’S LOGO HERE

European CommissionEnterprise and IndustryEuropean CommissionEnterprise and Industry

The Stage Gate Process for R&D and New Product Development.The European Enterprise Network – Licensing

as a possible alternative to in-house R&D Galway May 26th 2015

P.J. O’Reilly

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Aims

• Prompt you to re-evaluate your own particular business concept and position with a more commercial bias.

• Consider Technology Acquisition and or R&D• Consider idea generation and evaluation• Stage-gate concept• IP and its commercial value to your business• Prompt you to look at strategies and

approaches to developing your own business

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605 partner organisations in

52 countries

Geographical Spread of the Enterprise Europe Network

Recent - USA, MexicoRussia, ChinaSouth KoreaTunisiaJapan Brazil CanadaIndia

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Established business (improvement to existing product, introduction of a new product to existing market,

Introduction of existing product to new market)

New business (new entity, new product, unknown market)

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Your Idea / concept

Consider the following questions.

• What is it

• Who wants it (customer)

• Why do they want it (customer need or want, competitive advantage)

• Will they pay for it

• What will they pay for it

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Idea evaluation

• Evaluate novelty of idea from journals, trade information, web searches, patent searches (how new is it, will it create competitive advantage in its target market? Is there a need to use someone elses IP to produce your product? will it generate IP?)

• Be sure evaluation is objective. Be cautious about subjective evaluations (eg family, friends etc)

• Eliminate or shelve non commercial ideas!!! (do not get trapped by or become obsessed with a poor idea)

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Stage-gate concept

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Development Process and Stage-gate

• Develop concept• Evaluate (pass or kill)• Prototype stage• Evaluate (pass or kill)• Design stage• Evaluate (pass or kill)• Design for manufacture• Evaluate (pass or kill)• Launch.

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Why stage-gate the development?

• Development costs increase with time

• It costs little to kill off a project at ideation stage

• A misconceived project pushed to product launch stage or a product that does not sell, can kill your business

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Reality Check

Risks involved in starting a business

from an idea. 100 evaluated ideas results in one

commercial product (100 to 1)One idea (odds remain the same 100 to 1)Critical therefore to minimise overall risk

and exposure to loss

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Audits

Know and understand what gives your company competitive advantage and value (what do you do better than others)

The key strengths and weaknesses of your company

Where or with what person do capabilities reside within your company

Understand, record and manage these sources of competitive advantage.

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IP / Patents

• There may be protectable IP in the future from your idea (know-how, secrecy, patents, design, copyright) do not give it away foolishly during development stage.

• Consider “Real” or “Commercial” value of patent

• To patent or not. Can your claims be engineered around. What strength exists in the claims.

• First to market advantage

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Business Elements

• Design, R&D, Manufacturing, HR, Finance, Marketing, Sales, Distribution, Customer relations, technical support, After-sales service.

• Success requires numerous specific skill sets, clear strategies, systems and planning.

• Avoid the natural tendency to hide in your own comfort zone

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business???

Overall business strategy.Is your aim to make money from your idea

or is your aim to start a business using your idea as a springboard.

What business will you be in?What will your business look like? (lifestyle

company or a multinational). Who are your customers etc

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Extracting money from your idea

NO ONGOING BUSINESS FUTURE --- OPTIONS INCLUDE

Outright sale of idea (patented or not) Develop business with the specific intention of selling

in the short to medium term Partnership / licensing model Combination of above

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Market Development

• Strategy (manufacture and sell, or license,)

• Target markets, sectors, territories• Distribution channels, agents,

licensees, Legislation • CE marking, compliance, certification,

approvals• Packaging• Marketing materials

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Consider

An idea in itself is commercially worthless!!!

There is nothing new in this world!!!All inventors are fanatics and

possessed!!!I know this is worth Millions!!!!!Build it and they will come!!!!

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Do’s

• Start with customer view of the world• Evaluate, validate, test. early and often.• Be objective, do not fall in love with your

invention• Shelve or kill projects as early as

possible• Develop all aspects of business project

concurrently

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Do’s and don’ts

• Identify gaps in skills and experience and resolve them

• There is assistance available, avail of it

• Call us

• Innovation Vouchers and Innovation Partnerships.

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Thank you,