From IP Watchdog
As my colleague, Carla Pavone, has described well in
previous posts, bridging the chasm from invention to commercialization is a
challenging adventure that all too often fails to result in successful new
ventures. While risk is inherent in
innovation and entrepreneurship, we can mitigate the risks and increase our
probability of success--or at minimum reduce the amount of valuable time and
resources we devote to ideas that won’t succeed. For STEM innovators, success begins with the
recognition that crossing this chasm is a “different game” than discovery and
invention.
Basic research focuses on the discovery of new knowledge without thought of practical ends.
Translational and applied research represents the first step
toward identifying practical applications of scientific discovery and knowledge
to solve problems or unmet needs outside the laboratory. And finally as we move
to the right across the chasm, commercialization involves translating
new ideas or IP into customer solutions that generate social and economic
value.
Successfully
navigating this chasm from invention to commercialization requires a broader
mindset, tool set, skill set and network than we typically develop as
inventors. In other
words, we need to become “T-shaped” professionals with BOTH depth and breadth: deep
technical expertise in 1-2 disciplines AND working knowledge of other
disciplines that enable us to “know what we don’t know” about the many
variables beyond technical feasibility that will make or break success for a
commercial venture.
Mindset
As illustrated in the “innovation sweet spot”
model below, technical feasibility is necessary but not sufficient for
commercial success. A commercially
viable idea
also must be desirable to the target customers
we hope to serve and be perceived as better than the existing alternatives at a
reasonable cost. Additionally there must
be an attractive market that is robust enough to make commercial success viable. This helps explain why the best technology
does not always win (a common inventor mindset). Just because a technology is superior does
not mean mainstream customers will be willing to adopt it or that the market is
large enough to justify the required investments in developing, manufacturing,
distributing and servicing it.
By recognizing the critical impact of these
additional arenas on commercial success, we broaden our research “lens.” This enables us to AIM for success by (1) Anticipating
a broader set of questions and issues to explore, (2) Investigating the
opportunities and risks present in each arena, and (3) taking deliberate action
to Manage our way through these realities.
Tool set
The business model canvas
is one essential tool that serves as a “blueprint” for building a
commercialization bridge. The central
task of the entrepreneur is to identify, test and validate a viable business
model to translate an idea or IP into a customer solution that generates
economic value. As illustrated below,
there are nine building blocks that comprise a viable business model. By making “hypotheses” or assumptions in each
of the building blocks, we can then test the assumptions with key stakeholders
to either validate or change them.
Through an iterative process of making and testing business model
assumptions and adapting as needed, we systematically test and refine the
feasibility, desirability and viability of our commercial idea. The canvas also requires us to explore a
viable revenue model and cost structure as well as key partnerships and
resources that will critical for a successful venture. As renowned innovation thought leader, Clayton Christensen of Harvard, has noted, few technologies
are intrinsically disruptive in nature; it is the strategy and business model
that creates the disruptive impact.
Skill Set + Network
In addition to the technical
expertise, critical thinking and research skills required for discovery,
commercialization requires additional “breadth” in terms of knowledge and
personal as well as collaborative capabilities.
The Kauffman Institute suggests that
are six essential skills of extraordinary entrepreneurs they call the
“creator’s code.” Let’s look briefly at
three of the six.
“Find the gap” refers
to the innovator’s ability to spot an application opportunity in the market
that is “ripe” in terms of customer demand and freedom to operate—both in terms
of IP strategy and competitive advantage.
Inventors tend to believe the best technology always wins and “if we can
build it, they will come.” Innovators
and entrepreneurs recognize that technical feasibility is a prerequisite not a
determinant for success and they must find a gap or “innovation sweet spot” in
which customers are willing to pay for their solution and the market is viable.
“Fail wisely” is the
ability to accept that failure is not the opposite of success, but part of
success AND that we must manage an iterative, adaptive process of making and
testing assumptions knowing that many will be wrong in the early stages of the
commercialization journey. Especially
for STEM researchers whose discovery is governed largely by laws of science and
math where there are objectively right and wrong answers, failing wisely can be
difficult to accept as a success factor.
In the “game” of commercialization, unlike in the STEM lab, there are
myriad of both objective and subjective factors that will influence if not
determine success. We can’t “know” with
certainty what business model assumptions will work and which won’t until we
test them, learn, and adapt accordingly.
The key to failing wisely is to test our assumptions early and often in
order to adapt these assumptions and business model design BEFORE we waste time
and resources and ultimately risk the success of the venture overall.
“Network minds” is
the ability to recognize the many variables beyond technical feasibility that
will make or break commercial success and proactively develop a network of
colleagues who have needed experience and expertise you don’t. As a researcher, you probably don’t have
experience doing market research, building an IP picket fence, or developing
an effective revenue model. What is
essential is that you recognize these as critical success factors and develop a
team of collaborators or partners who can help you learn what you need to know
while you are testing your potential business model design.
This commercialization
journey across the chasm may sound daunting, and it would be if you had to go
it alone. Fortunately, across the U of M
we have expertise and experience in all facets of the commercialization
process. There are many resources
available to support you in exploring the commercial potential of your ideas
and IP. A good place to start is with MIN-Corps where our mission is to help talented
researchers navigate the chasm from invention to commercialization. Let us know how we can help!
