Market Assessments Michael Pratt Executive Director Business
Development November 1, 2011
Slide 3
Boston University Slideshow Title Goes Here Setting Raw
Invention Detailed Science Light on technology Hints of a product
Vacant of a value proposition
Slide 4
Boston University Slideshow Title Goes Here Objectives of
Assessment Triage Should a patent be filed? Value What are we
offering to prospective licensees? What is the value of this asset?
Strategy What is the best way to commercialize? What should be
protected? How do we reduce risk and make this more appealing to
investors? Who will license this? Why?
Slide 5
Boston University Slideshow Title Goes Here Market Forces
Licensee or Competito r Accelerator Marketabl e Products End Users
Existing Threats Companies Enabler Tech Synergy BarriersMarket
Prior Art/ Participant Science Acquirers Validator Market Shift
Product Life Cycle Impact Threshold New Science Incumbent or
Emerging Faster, Better, Cheaper Patents Emerging Threats General
Familiarity Contacts State of Art Figures of Merit
Slide 6
Boston University Slideshow Title Goes Here Market Forces
Licensee or Competito r Accelerator Marketabl e Products End Users
Existing Threats Companies Enabler Tech Synergy BarriersMarket
Prior Art/ Participant Science Acquirers Validator Market Shift
Product Life Cycle Impact Threshold New Science Incumbent or
Emerging Faster, Better, Cheaper Patents Emerging Threats General
Familiarity Contacts State of Art Figures of Merit
Slide 7
Boston University Slideshow Title Goes Here Step # 1 What is
the product? What will be delivered to a customer? Form factor?
Service or product? Therapy or diagnostic? Stand alone or adjuvant?
Delivery?
Slide 8
Boston University Slideshow Title Goes Here Step # 2 Identify
& Characterize the addressable market(s) Large & growing?
New market? Highly competitive? Litigious? Receptive to new
technologies? Active investments?
Slide 9
Boston University Slideshow Title Goes Here Resources Google
Pardee Management Library Subscription Services www.frost.com
www.frost.com Venture Source T2+2 Knowledge Express Contact OTD for
a list of helpful resources
Slide 10
Boston University Slideshow Title Goes Here Healthcare Much
easier than physical sciences/IT/Software Need is more obvious
Addressable market size is easier to estimate Range of possible
products is usually constrained
Slide 11
Boston University Slideshow Title Goes Here Healthcare But
horizons vary Drugs Stage of development is earlier Leads to far
reaching assumptions about performance Devices Returns are usually
much lower than drugs Therefore risk must be much lower
Translation: 510K, replace an existing therapy, has an established
reimbursement code Diagnostics Market is highly competitive (many
solutions, many entry points) Incumbents require compelling data
Expectations on performance are much higher (clinical samples)
Slide 12
Boston University Slideshow Title Goes Here Physical Sciences
& IT Many possible products Many possible markets Varying
levels of competition Value chains not clearly defined Market data
harder to identify
Slide 13
Boston University Slideshow Title Goes Here Physical Sciences
& IT Buthorizons are usually within reach Must act quickly Time
to market is critical Promise or Performance?
Slide 14
Boston University Slideshow Title Goes Here Step # 3 Establish
your logic Map technology elements to product features to market
needs Feature-benefit analysis Technology Faster, better, cheaper
Market Growing, competitive, but lacks Development Milestones
Technology development Regulatory pathway Reimbursement Impact
Patient, payer, clinician, hospital
Slide 15
Boston University Slideshow Title Goes Here example Technology
blank will enable a new product category for the blank industry
which will allow the entire industry to address blah blah unmet
need in the blah blah market The are four major competitors in this
mature market all competing on price. The blank technology will
provide a competitive advantage to one of these major incumbents
because booboo(feature/benefit).
Slide 16
Boston University Slideshow Title Goes Here example Blank is an
emerging scientific field that promises to have a major impact on
blank emerging markets. Sales in blah blah markets are small but
growing rapidly. Competition centers around performance and product
cycles are quick. Blank technology with have XX increase in
performance over current technologies and YY over all other
emerging techniques. Development time is in line with rapid
turnover.
Slide 17
Boston University Slideshow Title Goes Here Consideration
Choosing the right application is difficult Try to build some
consensus from multiple data sources
Slide 18
Boston University Slideshow Title Goes Here Features Benefits -
Needs FeatureBenefitNeed Xx wicking systemDry feetStay dry Reduce
foot fungus Recycled materialEnvironmentally consciousReduced
carbon foot print Xx MaterialWarmth, lightweight, thinComfort
Slide 19
Boston University Slideshow Title Goes Here Step # 4 Quantify
your adjectives How big is the addressable market? How many
competitors? How much money will be saved? How much will customers
benefit from the new product? How much will the product effort
patients, clinicians, hospitals, & payers?
Slide 20
Boston University Slideshow Title Goes Here Considerations Do
the costs of development outweigh the potential benefits? Is the
required development time beyond the window of opportunity (market
timing)? Is this the right solution? Why? Is there are burning need
for this solution? Understand degree of interest
Slide 21
Boston University Slideshow Title Goes Here Step # 5 Create
value proposition State Unmet, burning need Who needs this? Want
vs. need vs. interest What is the product? Why is this the best
solution?
Slide 22
Boston University Slideshow Title Goes Here Example A soft good
knee brace that is lightweight, low profile, and easy to use yet
maintains the performance characteristics of a rigid brace. This
enables an effective therapeutic alternative that is much less
expensive, easier to manufacture and offers attractive profit
margins. A Soft Good with the Performance of a Rigid Knee
Brace
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Boston University Slideshow Title Goes Here Step # 6 Validate
your assumptions Pick up the phone Open ended questions What is
driving the move towards molecular diagnostics? What are the top
three challenges your are facing? What reimbursement codes do you
use for xx procedure? What are the biggest time constraints in xx
protocol? Followed by direct questions Would a product that is
taken orally and relieves these symptoms improve the lives of your
patients? Would a diagnostic that provides instant readout from a
clinical sample change your clinical practice?
Slide 24
Boston University Slideshow Title Goes Here Recap 1.What is the
product? 2.Identify & characterize the addressable market
3.Establish your logic 4.Quantify your adjectives (e.g., how big)
5.Create a value proposition 6.Validate your assumptions (pick up
the phone)
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Boston University Slideshow Title Goes Here QUESTIONS
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