Transforming knowledge to
products and business Andrzej Brud Chalmers Innovation
Andrzej Brud – CEO, Business coach – Chalmers Innovation – Active Member of the Board in numerous
technology based start-ups – Closely involved in start-up of more than 50
companies – More then 25 years of experience from
business development and financing – Entrepreneur – Academic background – Natural Sciences and
Economics
Chalmers Innovation • Evaluates 200-250 ideas/y • Started 110 companies • Companies grown at CI:
– Have turnover of +500 MSEK – Have +500 employees – Attracted 1,4 BSEK of private capital – Operating Chalmers Innovation Seed Fund 170 MSEK
Agenda
• Transformation of ideas to business
–Transformation of technology to customer values –Busines Idea Identification – basic tool/method
•Case studies –Oxeon –MicVac
Have you purchased a technical gadget lately ?
Digital Camera The picture can be stored and
distributed digitally Reduced costs
- Editing the pictures - Instant pictures - Possibility to erase bad pictures --The pictures can be sent to others quickly
Reduced costs
Digital Camera
Properties User Advantage Benefit
Digital format Photographer The picture can be
stored and distributed digitally
Reduced costs
Digital Format Photographer
- Editing the pictures - Instant pictures
-Possibility to erase bad pictures
--The pictures can be sent to magazines
quickly
Reduced costs Increased income
Digital handling of the photo Photo Lab Less chemicals and
machines
Reduced cost for the for production
increased margins
Very small dimensions Manufacturers of electronic equipment
The camera can be integrated in a phone – instant pictures
New business opportunities
Business Idea Identification
An example: Researcher presents a description of a new device:
Business Idea Identification
Q: – What can you do with the device? A: – A lot of things!
Question – Is it good or bad?
Business Idea Identification
An example: Researchers view • Business view
BII - Business Idea Identification
Properties User Advantage Benefit
What are the unique properties of the specific technology
Which persons/organizations can benefit from using your product?
What advantage by using those properties can a specific customer achieve?
When using this advantage, what benefit will the specific customer achieve?
Who is the user? Who is the customer?
How much lower? How much higher? How much faster? How much more effective?
How can it be valued in terms of %, $, £
Business Idea Identification LED - diodes
Properties User Advantage Benefit
Long lifetime >100000 hours vs incadescent bulb (1000 hours)
Municipality responsible for traffic light
Fewer changes of the light source (traffic signal light)
Maintenance cost lowered by 100 times
Earlier 100*50 Euro = 5000 Euro
Now 1*50 Euro = 50 Euro
Case Studies • Evolution of Invention Based Business
Market pull
-A defined problem -Searching for a suitable solution There is a need from someone
Technology push -A defined solution -Searching for a problem
There is an tech-idea from someone
Case Study
Oxeon - From research results to DI Supergasell
Case Study Case Study
Oxeon
Case Study Case Study
Oxeon
Three primary market applications
Supergasell 2011
Case Study
Micvac from Confusion to Epiphany
First meeting with the inventor
– A plastic bag – Black insulating tape – A knife – Raw fish – Spices – Do you have a microwave
oven?
Case Study MicVac
What happened
– Raw fish in the plastic bag – Sprinkle of spices in the bag – Sealed the bag – Made a hole in the bag with the knife – Taped the hole with a piece of insulating
tape – Less than 4 minutes in the microwave
oven
Case Study MicVac
The Epiphany – the benefits – Fish cooked and vacuumpacked in less then 4
minutes – Fantastic texture and taste – Extended lifetime of the fresh product – Simple process, less space, less energy – Convienience for the enduser in preparation
Case Study MicVac
The Challenges
– From Epiphany to product and industrial solution
• What product? • What material? • What process – no industrial microwave
ovens known
Case Study MicVac
The Challenges
– In search for the Business model • What to sell? License? The valve? • Mimicing the TetraPack businsess model • Selling license, material, valves and
machines
Case Study MicVac
The protection of the business
– Patent for MicVac valve Originally the tape over the hole
– Several patents on materials and packaging – The knowledge of the industrial process using
microwave
Case Study MicVac
The Production Line
Case Study MicVac
Case Study MicVac
New Challenges • Global competition
• Everything is running faster
• Limited funding
• Need to work faster • Need to work smarter
What’s wrong with this picture?
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
What’s wrong with this picture?
• Both Customer Problems and Product Features are hypotheses • Emphasis on execution rather than learning and discovery • No relevant milestones for marketing and sales • Often leads to premature scaling and a heavy spending hit if product
launch fails
You do not know if you are wrong until you are out of money/business
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
NO:
Business Plan
Market Strategy
Organisation Charts
Funding
5 year Budget
Scenarios ....
IT’S ALL ABOUT INCREASING THE PROBABILITY TO SUCCEED
GET FACTS!
Lean canvas
START VALIDATING BY UNDERSTANDING THE PROBLEM
The one who iterates fastest- wins 1. You don’t perish 2. You own more of your company 3. You outperform competitors
Time to no cash Execution momentum Motivation span
BUILD, MEASURE & LEARN UNTIL YOU GET TRACTION
There is a due date