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www.FITT-for-Innovation.eu
Quick Assessment for Business Idea
FITT
(Fostering Interregional Exchange in ICT Technology Transfer)
2 | 03.2010 Quick Assessment for Business Idea
NABC: definition
What? Easy method to quickly analyse and develop value propositions for
projects
Who? Introduced by Curtis Carlson & William Wilmot (Stanford Research
Institute, US) in “Innovation – The Five Disciplines for Creating What
Customers Want” (August 2006)
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Do the NABC in 4 questions
What is the important customer and market NEED?
What is the unique APPROACH for addressing this need?
What are the specific BENEFITS per costs that result from this approach?
How are the benefits per costs superior to the COMPETITION’s and the
alternatives?
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Listen to the customers voice
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Detect the customer value
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NABC process in practice
Easy framework for dissemination within your network at any time
(possibly on line request)
Makes researchers aware that the latest, greatest technology is not
enough, but needs to be combined with great positioning and a great
team. No need to solve all problems of the world at once.
Guides researchers to write down a compelling, quantitative, value-
laden, pitchy Value Proposition showing their distinctive advantage
If NABC looks promising at first glance, intake meeting can take place
where contact with idea owner is important and next steps can be
discussed
Good fit in organisations with great deal flow of ‘wild’ business ideas,
emanating from people with few entrepreneurial skills
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NABC example: Video on Demand
Need: movie rentals represent a $5 billion business opportunity that you currently cannot access. The
only parts of rentals that people really dislike are the obligation to return the tapes plus late fees.
Customers find that it is inconvenient and wastes time.
Approach: we have developed a system that allows you to provide videos on demand to your
customers using your cable system, with access to all the movies of Blockbuster. Our approach makes
use of one of your currently unused channels, with no changes to your system. In addition, you do not
need to invest any capital. Each movie costs your customers $6.99, the same cost as a rental at a video
store.
Benefits per cost: You will receive 5 euro of new revenue per movie rented, with a margin of
20% after paying for the movie costs. Your customers will have all the pause and fast forward functions
of a VCR when watching the movie, and they do not have to return the movie when done. Late fees are
gone. We estimate you could capture a market share of 20%.
Competition: Our system is patented, and it is the only one to include all of these features. Online
rentals represent new competition for both you and us, but they have a handling-cost disadvantage of
75 cents per tape. Sending videos back is inconvenient, plus they cannot provide spontaneous
purchases.
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Pros & Cons
CONsPROs
• Strength: quick first level assessment tool for business opportunity, easy accessible for researchers
• Innovation: practical way to assess researchers ‘wild’ business ideas
• Useful in large organisations with big deal flow of ideas
• Problems: researchers have sometimes difficulty to be concise and risk of killing possibly good ideas to early
• Acceptance is not same as ‘go’ to business: need further research into IP and freedom to operate
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Why ? Rationale NABC
Need for quick assessment tool of business opportunities in a large
research community with a demand driven research agenda
Value proposition development
Identify important customer needs
Define champions and productive teammates
Articulate the value proposition (NABC)
Iterate often with others, regularly, in a group
Bridging the gap between excellent research and (new) business
(creation)
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Why ? Impact NABC
Success rate: all applications for iProof (proof of concept projects) and
iBoot (iBootcamp) were assessed on this framework. First feedback to
idea owner (even if negative) has high sensibilisation effect.
Recommendation: Helps researchers to think ‘customer’ and ‘customer
value’ and to feel the entrepreneurial vibe for the first time
Impact on future performance: the NABC will slowly help to change the
mindset of a research community to a research valorisation community
without to much harassing researchers with writing business plans
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Outcome
All first level assessments of business opportunities need to pass the
NABC test
Higher awareness level within research community
Easy accessible for all
Create pool of business ideas
No immediate need to change the format, although on line availability
could prosper the use by researchers
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Lessons Learned
Looking back now, what would you …
• … do different? Nothing really
• … improve? Combine NABC with quick IP and freedom to operate scan
• … recommend to others? Just try it out.
13 | 03.2010 Quick Assessment for Business Idea
Suggested Readings
Link to bibliography
“Innovation – The Five Disciplines for Creating What Customers
Want”
Link to code book
Link to related websites
http://www.sri.com/innovation/discipline.html