Title: Selecting a Commercialization Approach: SWOT Analysis
1Selecting a Commercialization Approach SWOT
Analysis
2SWOT Analysis
- Often used in business environment to identify
the best strategic approach - Examines both positive/negative attributes and
current/ potential future state - For your IP, use this tool to examine various
options for commercialization
3SWOT ANALYSIS
Positive Attributes
Negative Attributes
Strengths Weaknesses
Opportunities Threats
Present State
Future State
4SWOT Analysis Assignment Commercialization
Options
- 1) Document known facts assumptions about the
technology, competition, and market entry from
your research. Verify these with inventor,
complete additional research as needed. - 2) Brainstorm at least two different approaches
to commercializing your invention- e.g. service
model, different forms of product or positions in
the value chain - Be creative- best performed as a brainstorm
- Avoid pre-conceived notions of what is best
- Dont judge or eliminate possibilities until you
have completed the exercise - 3) Perform SWOT Analysis on at least two
brainstormed commercialization approaches - Use the facts and assumptions to support your
SWOT analysis - Identify the best commercialization approach from
your analysis
5What sort of facts are important?
- Maturity of your technology
- ideagt proof of conceptgtprototypegtbeta testgt
ready to ramp - Current protection of your IP
- Barriers to entry- competitors, regulations, etc
- Potential openings in the value chain
- Timing- is the market ready?
- Perceived customer value- will they buy?
- Potential cost of entry
- capital investment, research needed, marketing,
distribution, staff levels - Profitability- clarity of path to make money
6Sample SWOT of Commercialization Options
Bio-fuel Generating System- project from two
years ago
- Sample Facts Assumptions (examples only, some
of these were not actually correct) - Biofuels unit generates ethanol and high
purity glycerin from canola seed at a rate of XX
gallons per ton - Market price for high purity glycerin is
YY/gallon - Canola seed can be grown in Willamette valley- no
regulations prohibit this - Technology is ready- a prototype could be
available in 6 months - Mature cost of system would be 10,000
- Biofuels unit could be operated by local farmers
without assistance - Biofuels unit would require periodic servicing
and cleaning by manufacturer - Waste product from biofuels unit is non-toxic and
may be composted on site - Transport and distribution of glycerin requires a
license, MSDS, and certification of purity -
7Sample Commercialization Options
- Product Model- Sell biofuels unit to local canola
growers. They sell glycerin to chemical
distributors and service their own units - Product Service Model- Sell biofuels unit to
local growers. Set up service to collect glycerin
and perform periodic maintenance on units - Service Model- Set up regional centers for
biofuels conversion with larger units and have
growers bring canola to the sites. Perform purity
analysis at the center and sell glycerin to large
chemical distributors at markup.
8Sample Commercialization Option SWOT
AnalysisBio-fuel Generating System Product
Service Option
- Strengths
- Easily scalable for local growers
- Growers can use ethanol to reduce their own fuel
costs, and reduce their sensitivity to sudden
increases in price of diesel fuel - Unit service and biofuels collection could occur
at the same time - Glycerin collection, analysis, and distribution
handled at collection centers. Less overhead for
growers - Two revenue streams for business- sale/service of
units, and sale of glycerin to chemical
distributors - Weaknesses
- Would require additional infrastructure for
servicing of units - Transport of ethanol across state lines could be
problematic - Requires large up-front capital investment to
set up collection centers - Profit model is very sensitive to the market
price for glycerin - Investment is required before canola growers
agree to grow this crop
9Sample Commercialization Option SWOT
AnalysisBio-fuel Generating System Product
Service Option (Continued)
- Opportunities
- Similar product service model could potentially
be expanded to include biofuels from other seed
crops - Potential seed funding from existing
agricultural cooperatives- easier to obtain for
the product service model - Threats
- Tax incentives for biofuel generation may not
apply to large distributors in product service
model - If current diesel fuel costs decrease, local
growers will not save money by using the ethanol
they generate. - Another product is in development which would
allow self-service units. Local growers may be
reluctant to sign up for this product service
model.
10Assignment- SWOT Analysis for Commercializing
your IP
- Presentation At next class meeting Wed, Feb 6th
report on your progress- - 1) Facts Assumptions
- 2) Brainstorm list- all commercialization options
considered - 3) SWOT analysis of at least two options and
chosen approach - Written Report (Due Fri, 2/8- midnight by
e-mail) - Complete the exercise and provide a written
summary including the 3 aspects above