Selecting a Commercialization Approach: SWOT Analysis - PowerPoint PPT Presentation

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Selecting a Commercialization Approach: SWOT Analysis

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Title: Selecting a Commercialization Approach: SWOT Analysis


1
Selecting a Commercialization Approach SWOT
Analysis
2
SWOT 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

3
SWOT ANALYSIS
Positive Attributes
Negative Attributes
Strengths Weaknesses
Opportunities Threats
Present State
Future State
4
SWOT 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

5
What 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

6
Sample 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

7
Sample 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.

8
Sample 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

9
Sample 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.

10
Assignment- 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
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