A Commercialization Measurement System

1
A Commercialization Measurement System

• Jim Tolle
• Verisystem

2
Federal Technology Goals

• Federal Technology Goals for Small Business
  Programs include
• ...the commercialization of the results of both
  the federal research and development programs
  mandated by the Small Business Innovation
  Development Act of 1982 and the Small Business
  Research and Development Enhancement Act of 1992
• Objectives of DOD SBIR Program
• stimulating technological innovation
• strengthening the role of small business in
  meeting DoD research and development needs
• fostering and encouraging participation by
  minority and disadvantaged persons in
  technological innovation
• increasing the commercial application of
  DoD-supported research or research and
  development results.

Source Office of Technology, U. S. SBA
3
Title 15 Award Consideration

• Federal Aid to Small Business Research--Awards
  shall be made considering the proposals
  commercial potential as evidenced by
• Small Business Concerns record of
  commercializing research (Not In Proposal)
• Funding commitments of other parties during
  Government investment period (In Proposal)
• Follow-on funding commitment by 3rd parties (In
  Proposal)
• Other indicators (May be in Proposal)

4
Federal Performance To-Date

• SBA Office of Technology Current Assessment of
  Commercialization
• 30

1999 Estimate of Firms Performing Phase II
SBIR/STTR Efforts Which Are Expected to Achieve a
Commercial Product or Service (For All Agencies
-- Commercial Defense Related)
5
Reasons To Improve

• No Good Performance Measure for DOD
  Commercialization
• Reasonable to be No Greater Than SBAs Overall
  Estimate (30 Best Case)
• Mandated Goal to Achieve Best Commercialization
• Hot Technology Market of 2000 Is No More
• Commercialization Will Not Be Supported by
  Current Risk-Averse Mood of Investment Market
• Greater Need for Public Investment in Capital
  Constrained Commercial Market
• But Government Must Invest Wisely to Achieve
  Results
• Target Investment to Research Promising
  Commercialization

6
How To Improve

• Improvement Cannot Be Identified Without
  Measurement
• Develop Better Commercialization Measurement
  Models
• Develop Better Metrics
• Develop Resources to Collect Metrics and Analyze
  Performance
• Consider Enterprise-Wide Models Metrics

7
The Enterprise Model

• Each Agency Should Proactively Manage its
  Commercialization Program Across its Entities as
  a Single Enterprise
• NASA Commercial Technology Program is a Proactive
  Model
• Commercialization Goal is Integrated with
  Enterprise Goals
• Metrics Must be Identified to Enable Meeting of
  Enterprise Goals

8
Example Model--NASA CTP
Key to Successful, Proactive Managment
Source Commercial Technology Handbook, NASA
Ames Research Center
9
Types of Metrics

• Two Main Categories of Metrics
• Technological Progress Metrics
• Historically Well Tracked by Firms Agencies
• Usually Correlated with Meeting Technical Goals
• Business Metrics
• Proactive Approach Not Consistently Applied
• Should Provide Correlation for Transferring
  Technology Into Marketplace

10
Deployment of Resources

• Enterprise-Wide, Proactive Management of
  Commercialization Needs Resources for...
• Policy Dissemination
• Metric Data Collection
• Performance Reporting Analysis

Are On-Line Approaches an Option?
11
Authority for On-Line Aids

• Title 15, S. 638, subpara. (q)
• Each Federal agency required by this section to
  conduct an SBIR program may enter into an
  agreement with a vendor selected under paragraph
  (2) to provide small business concerns engaged in
  SBIR projects with technical assistance services,
  such as access to a network of scientists and
  engineers engaged in a wide range of
  technologies, or access to technical and business
  literature available through on-line data bases,
  for the purpose of assisting such concerns in -
• ...developing and commercializing new
  commercial products and processes resulting from
  such projects.

12
Benefits of On-Line Approach

• Supports Policy Dissemination
• Agencies Can Design Web Portals to Allow Single
  Point of Web Access To Policy Dealing with
  Commercialization Goals and Procedures
• Provides Centralized, Efficient Metrics Data
  Collection
• Firms Provide Metrics Data into Central Database
  through Internet Worldwide
• Provides Timely Reporting and Real-Time Analytics
• Web-Based Technology being Used by Industry for
  Real-Time Enterprise Management and Analytics

13
Verisystem Services

• Verisystem Business Metrics System
• Existing On-Line Database
• Provides for Real-Time Enterprise Management
  Analytics
• Can Support DOD Other RD Program
  Commercialization Metrics
• Provides Agencies and Others a Single Point for
  Data Collection and Analysis
• Can be Modified Easily to Provide Portal Services
  to Support Agency Policy Dissemination Needs (Add
  Links to Agency Policy Pages)

14
Business Metrics Used

• A. Commercialization Plan Status
• B. Commercialization Clause Usage
• C. Reporting Ongoing
• D. Presented at Industry Conferences
• E. Reported in Technical/ Professional/ Trade
  Journals
• F. of Partnerships
• G. Partnership Investment as of RD
• H. of CRDAs
• I. Commercial Agency Agreements/ Legislative
  Mandates
• J. SBIR Phase II Commercialization Partners
  Identified
• K. Number of Patents
• L. Data Rights Retained by Non-Government Entity
• M. Software Code Maintained by Non-Government
  Entity
• N. State of Licensing of Product
• O. of Commercialization Success Stories Reports
  Made
• of Press Releases by Potential Partners
• P. Dual Use Agreement Status

15
Reporting Capabilities

• Flexible Reporting Feature of Verisystems
  Business Metrics System
• Can Support Varied Reporting Needs
• Can Deliver Microsoft Office Format for Client Use

Agency/Enterprise Reports
Individual Project/Firm Reports
16
On-Line System Design

• Based on Existing, Open, Freeware
• Economical Re-Use of Existing On-Line Software
• Already In-Place
• No Capital Investment Needed
• Core Data Base Web Interface Already Developed
• Some Links Added or Report Changes at Clients
  Discretion
• Design Based on DOT Theory for Successful IT
  Systems
• Dr. Lawless, FUQUA School of Business, Duke U.

17
The Case for Verisystem

• Better, Proactive Management Models and Tools
  Needed
• Support RD in Unsure Technology Marketplace
• Internet Resources Are Encouraged by Law and Can
  Provide Efficiency Multipliers
• Verisystems On-Line Business Metrics System Can
  Provide Immediate Support
• Minimal Investment Required