1/12

Executive MBA in Management of Technology - MoT

http://mot.epfl.ch Jean Micol

From Technology to Business Idea (or vice versa)
A few words about Opportunity, Benefits & USP
Key ingredients for a start-up
Business Innovation benefits, dimensions & model
Stages in the start-up process

2/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

A Few Words On Opportunity - 1
What is it?
A problem, a need, a desire that can be well identified
and for which a solution can be developed to delight well identified customers
Where to find it?
1. Unexpected occurrences (IBM - first computers)
2. Incongruities (Alcon cataract; Ships - container)
3. Process needs (Newspapers speed printing & advertising as societal innovation)
4. Industry and market changes (New/De-regulation telephone operators)
5. Demographic changes (Aging of population house services for elderly people)
6. Changes in perception (Fashion Benetton)
7. New knowledge (Scientific/Technical Genome, wireless communications, etc.)
8.
Source: The Discipline of Innovation Peter Drucker (HBR August 2002)
3/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

A Few Words On Opportunity - 2

How to identify it?
Constant/systematic look for it, permanent attitude, mindset
How to present your solution?
What are the unique customer benefits
What is the market for it and the competition
How money can be made out of it
4/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Customer Benefits (vs. alternatives/competition)
Cheaper
Faster
Lighter
Safer
Simpler
Smaller
More attractive
More comfortable
More convenient
More flexible
More reliable
More ...

Example: It is 60% faster than competitive products, such as
+ What is the market for it? What kind of customers?
5/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Technology and Innovation Environment
Research
T
N
A
T
U
R
E
M
A
R
K
E
T
S
University
Industry
Marketing
I
Technology Push Market Pull
6/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

USP: Positioning & Differentiation Statements
Positioning Statement
For (target customer)
Who (statement of needs)
Our Product/Service*, (name), is a (product/service category)
That provides (key statement of benefit).

Differentiation
Unlike (the alternative product competition & its limitations)
Our Product provides (statement of primary differentiation).
Have a Strong, Crisp, Simple USP for your target market
* or Business System
7/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Key ingredients for a start-up
Management
Team
Business Idea
Market
New
Enterprise
8/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Initial Evaluation of Business Idea
1. What exactly is innovative? How better performing? Competitive Advantage? Protectable?
2. What real/strong need does it meet? Who is the customer? How can he/she be reached?
3. How large is the market? How fast is the market growing? What is the competition?
4. What are the costs involved? What price can be asked? How the product/service makes money?
5. Is the Business Idea doable in a reasonable time frame and with a manageable risk?

Is it greatly(better) solving an important and valuable problem ...
for well identified customers who have money
who are ready to pay the price and buy soon
and will buy more in the near future?
Adapted from Ken Morse at MIT
9/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Nine Attributes of the Entrepreneur
A high level of drive and energy
Enough self-confidence to take
carefully calculated risks
A clear idea of money as way of
keeping score, and as a means
of generating more money still
The ability to get other people
to work with you and for you
productively
High but realistic achievable
goals
Belief that you can control your
own destiny
Readiness to learn from your
own mistakes and failures
A long term vision of the future
of your business
Intensive competitive urge, with
self-imposed standards.
Source: Stevenson Howard, Entrepreneurship Venture, Harvard Business Press, 1999
10/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

Prize/Award
Stages in start-up process & financing for growth
R
e
a
l
i
z
a
t
i
o
n

o
f

g
a
i
n
s

Source: Adapted from Thomas Kubr, el. al, Planning for Growth, McKinsey & Company, Inc, 1997
I
n
t
e
r
e
s
t

b
y

i
n
v
e
s
t
o
r
s


Business Planning
F
i
n
a
n
c
i
n
g

D
e
c
i
s
i
o
n

Industrial Partner / Public Support Program
Own Means, FFF
Business Angel
Venture Capital 1
Venture Capital 2
VC or Bank Loans
Established
Business
F
i
n
a
n
c
i
n
g

g
r
o
w
t
h

Start-up and
expansion
Capital Market
IPO
Development of
Business idea
11/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

A rich and dense ecosystem
The ecosystem
Poles
of excellence
Training
Incubators
& coaching
Funding of
research
Financiers
Generate Develop Launch
Grow
Innovation &Tech. Transfer
12/12
Executive MBA in Management of Technology - MoT
http://mot.epfl.ch Jean Micol

From Technology to Business Idea (or vice versa)
Moving from researcher to entrepreneur:
It is a different mindset
It can be adopted by any one
It can be a fantastic adventure
Additional info on http://mot.epfl.ch under links