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Gary Williams – DirectorJeni Clark – Associate Director

Shaping a Product ConceptNovember 28,2012

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Keys to Success• Intellectual property strategy• A unique, superior product: a differentiated product that

delivers unique benefits and superior value to the customer.• A strong market orientation—the number one reason why

new products fail is due to a lack of market information and intelligence.

• Getting a customer involved at an early stage and during the development cycle is critical.

• Developing a business plan is essential

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What is Intellectual Property?• A Physical Embodiment of an Idea

– Research data– Compounds– Materials (biological, chemical)– Publications– Presentations

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Invention DisclosureBefore the Invention:• Make sure you keep proper documentation

• Notebooks should be bound, pages numbered, entries dated, detailed descriptions of tasks per researcher, and contain data, figures, photos

• Important entries signed and countersigned by a witness

Once the Invention is Made:

• All inventions should be reported to the Office of

• Technology Transfer prior to public disclosure

If the invention was federally funded, the Office of Technology Transfer will report the invention to the agency and all subsequent actions relating to the invention

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What is Patentable?• New and useful processes• Machines• Manufactures (objects made by humans or machines)• Compositions of matter• Any New or Useful Improvement to any of the above

Patentability Test• Novelty - Clear and complete explanation of the manner and

process of making and using the invention• Utility – Advantages and Purpose• Non-obviousness – Patent Search

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Public DisclosurePublic Disclosure is:• Presenting at a Professional Meeting• Presenting to a Class• Publication• Telling a friend

The Law:• The U.S. and Canada allow one year from the date of public

disclosure to file a patent• You lose the right to file in most foreign countries with public

disclosure• Disclosure can compromise your invention and lose

marketability without foreign patent rights

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Protection of Patentable Ideas

• When discussing ideas with anyone outside the university make sure that a non-disclosure agreement is executed PRIOR to disclosure

• Mark all related documents and material CONFIDENTIAL and/or patent pending

• Safeguard and limit access to all confidential material

• When transferring material make sure that a material transfer agreement is executed

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A. Technology-Push

B. Market-Pull

C. Product/Markets (Hybrid of A & B)

R&D defines the technical solution Manufacturing Sales

Market defines the needs

R&D Fit? Manufacturing

Marketing and R&D define the needs, fit,

and solutionsR&D Manufacturing

Sales

Sales

Market need?

Approaches to Innovation

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Impact of Differentiated Products

Me-Too Moderate Advantage Highly Differentiated0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

18%

42%

82%

% Companies Who Succeeded

Prob

abili

ty o

f Pro

duct

Suc

cess

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+12% Market share

+34% Market share

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Characteristics of a Market-Driven Company

• Customers—what are their unmet and emerging needs

• Know who is the competition• Understand capabilities—focus on core

competencies; outsource the rest• Develop cost-effective solutions• Establish a culture of continual improvement

of customer value—products and services.

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Fast Cycle Time Principles

• Identify Customer Problems

• Create a New Products Strategy—determine market segments

• Communicate Effectively

• Practice Good Planning and Project Management

• Process Simultaneously

• Utilize Cross-Functional Teaming

• Involve Customers on an Ongoing Basis

• Prioritize and Make Decisions as Fast as Practical

• Measure progress—keep track of customer interactions

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Fast Cycle Time Principles

New product strategy should include:

1. List of products to be developed2. Market sectors each will serve3. Unmet need that will be addressed4. Priority listing of development5. Channel of distribution that will be utilized

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New Product StrategyTable: New Product Strategy

Market Sector Unmet Need Technical Program Status Channel of

Distribution Sales

Product 1

Product 2

Product 3

Short Term

Long Term

ConsumerUS

Brighter color (P) Online 1: $50k3: $10k

1:$1M3:$200k

IndustrialUS

Light stable color Distributor 2: $50k3: $20k

2: $500k3: $100k

Consumer

Mexico

Brighter color (P) Online 1:$30k 1: $500k

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Key Development Targets:

In progress: (P)

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Business Plan Development

• A business concept should address:• What am I going to make and sell?• Who am I going to provide a service to and

sell?• What are the unmet needs?• What will be my competitive advantage?• How will I protect my ideas?• What will it be worth?

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Business Plan DevelopmentThe Business Plan is a key document that articulates what key features will drive your business opportunity.

These can include:• Mission Statement• Key members of the Team• Technology and intellectual positions• Opportunities and market summary• Business concept: entry and growth strategy• Competition• Five-year goals and objectives• Five-year financial plan• Risks and rewards

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Summary: New Product Development

• Make certain that you handle IP at an early stage.• The number one key success factor is a unique, superior

product.• The number one reason why new products fail is due to

a lack of market information and intelligence.• Getting a customer involved at an early stage and

during the development cycle is critical.• Developing a business plan is essential.

HAVE FUN! AND CELEBRATE YOUR SUCCESSES!!

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Gary Williams – DirectorJeni Clark – Associate Director

Shaping a Product ConceptNovember 28,2012