From Idea to Product

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From Idea to Product

• Dr Ian McKay

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• We help SMEs to harness the benefits of european
  research funding through
• concept development
• consortium generation
• writing and evaluation of applications for grant
  funding from regional and national bodies, and
  the EC
• development of intellectual property management
  and exploitation strategies

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This presentation
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Classic product life cycle
Development
Introduction
Growth
Maturity
Saturation
Decline
Sales
Time
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Why innovate?
Sales
Effects of Extension Strategies
Time
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Key steps From Idea to Product

• Idea generation
• Product screening
• Concept testing
• Business and financial analysis
• Product development
• Test marketing
• Commercialization

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Idea generation

• Where do ideas come from?
• Market research identifies gaps in the market
• Monitoring competitors
• Planned research and development (RD)
• Luck or intuition stumbling across ideas
• Creative thinking brain storming, scenario
  analysis
• Horizon scanning what will people be
  using/wanting/needing 5,10, 20 years hence?

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Idea generation
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Product screening

• FABU analysis
• Features
• Advantages
• Benefits
• U-Appeal
• Pick the winners...
• ...but remember the rest just in
  case!

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Concept testing

• Get people together to test their response to the
  new product or service concept
• Focus groups
• Exhibitions
• Trade fairs
• Internet - webinars, blogs, etc.
• but remember protect the intellectual property
  first!

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Product development

• Development of a new product involves
• Design (for manufacture)
• Prototype development and testing
• Packaging and branding
• Positioning
• Usage testing and feedback
• Marketing and advertising
• and ultimately (and this is very important)
  SALES!

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Management of product development

• All elements of product development must be
  managed carefully
• Designs version control
• Intellectual property protection and
  maintenance
• Prototype development in house or...?
• Marketing, advertising and sales
• and most important of all for SMEs
• Cash flow!

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Case studies
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• Piezotag the high performance, low cost
• Tyre Pressure Monitoring System (TPMS)

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Piezotag idea

• A device that measures tyre pressure and
  temperature for
• Passenger and commercial vehicles
• two wheelers, cars, buses, vans, trucks
• aeroplanes
• and provides the following benefits
• Health and safety reduced accidents
• Increased energy efficiency
• Improved vehicle performance

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Piezotag advantages

• Generates its own power piezoelectric effect
• RF transmits from wheel to single aerial every
  6s
• System has lower component count than current
  devices

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Piezotag Ltd

• Started life as an EU-funded CRAFT project in Jan
  2000
• UK patent application filed in Oct 2001
• Grant Thornton engaged in 2003 to
• assist with fund-raising process
• Balance of funding supplied by
• Advantage Early Growth Fund (regional funding)
• Business Angels
• Company incorporated in 2004

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The market for Piezotag

• Passenger vehicles 120 million units p.a.
• Commercial vehicles 40 million units p.a.
• 10 market share for Piezotag
• 16 million unit p.a.
• At 10 per unit 160 million p.a.

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The business model

• Piezotag Ltd will NOT produce the units. Instead
  manufacture will be licensed either
• by non-exclusive licences at
• 1 million per licence
• or
• by non-exclusive licenses attracting
• 1 per unit manufactured in royalties

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Piezotag Ltd current position

• Three patents granted in Europe
• One patent granted in USA
• Patenting progressing in
• seven other countries outside the EU
• Licensing deal currently being
• negotiated with VW-AUDI

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Diesel Do Nicely (DDN)

• A timely solution to an expensive problem

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Misfuelling

• Putting petrol into a car that should take diesel
• UK alone 120,000 reported incidents p.a.
• Cost of repair between 200- 4.500 per vehicle
• Expensive for individuals and corporately
• Solutions
• Audible
• Mechanical

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The DDN idea

• A barrier to misfuelling
• Easy to implement
• Retro-fit
• More effective
• No moving parts
• No electronics
• A simple barrier...
• ...the petrol nozzle
  simply wont fit!

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Prototype
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History of DDN From Idea to Product

• Project started with personal funds in 2005
• DDN Ltd incorporated in 2006
• First prototypes created late 2006
• First substantial funding (75k) from friends and
  business associates in Jan 2007
• Testing commences with fleets e.g. UK police
• Second tranche from business angels (375k) in
  Aug 2007

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The market - diesel cars light commercial
vehicles
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DDN Ltd current status

• Unlike Piezotag DDN will probably not license
  the manufacture in Western Europe but will
  sub-contract it there
• First patent application made in Feb 2006 grant
  anticipated in Jan 2008
• A further five applications have been made
• The first, relatively modest orders have been
  received
• Three major fleet purchasers are interested now

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Conclusions From Idea to Product

• Having ideas is the easy part
• New product development takes a lot of time -
  even a simple idea like DDNs has taken nearly
  two years to get close to market, Piezotag has
  taken nearly eight
• It is very important to protect intellectual
  property as early as possible
• Be nice to your friends and family you may need
  their money!

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Thank you for your attention

• ian.mckay_at_eurexcel.eu