Webinar 2 of 2

Commercialization Strategy and Marketing. Where and How. : 

Commercialization Strategy and Marketing. Where and How. Webinar 2 Dr. Eugene Buff UsTech TM (устехTM ) Discovery LLC TECHNOLOGY DISCOVERY & COMMERCIALIZATION COMPANY Make Deals & Build Up Businesses

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Make Deals & Build Up Businesses Formula for Success W – what – understand your technology W – why – what is the value proposition, why would anybody care… W – where – “where” are the companies who care are – markets, applications, value chain H – how – reaching out and delivering the three “W” message

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Make Deals & Build Up Businesses Idea Without a Use Idea With Intent (Business Plan) Commercial Product/Service Timeline of an Idea Need help with transition

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Targets(fundamental definition of a good target) Developer Target Technology Money Make Deals & Build Up Businesses

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Simplified Value Chain Make Deals & Build Up Businesses

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Make Deals & Build Up Businesses Value Proposition Definition: Set of benefits offered that satisfy target’s needs Resides in the mind of the customer Is a component of a brand image Intangible made tangible via an offering The Ratio: Value = Benefits/Costs = (Functional + Emotional) Benefits/ (Monetary + Time+ Energy + Psychic) Costs • Raise Benefits and Reduce Costs or Both • Customer Should Favor the Larger Ratio

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Make Deals & Build Up Businesses Target’s Perspective

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Make Deals & Build Up Businesses Disruption Theory Disruption = A strategic choice *Paraphrased from Christensen & Raynor, The Innovator’s Solution, Harvard Business School Press (2003)

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Make Deals & Build Up Businesses Deal Preferences

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Make Deals & Build Up Businesses Professional and/or social networking Wikipedia lists 146 sites!!

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Make Deals & Build Up Businesses Marketing. Why it is important? All inventions/innovations are ‘genius’… Technical people/ inventors can’t talk about them objectively. Great innovations could fail: microwave oven – first in 1947 (Raytheon) PDA – first in 1992 (Newton by Apple)

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Make Deals & Build Up Businesses Strangely enough, the buying decision is universally the same: Emotional decision! Supported by rationalization!! Marketing needs to create the buying climate Help the emotion move forward while supporting the rationalization process B2B Buying decision Marketing Needs to Communicate Value Good, Patentable Science is Not Always Commercially Relevant Lack of Market is a Deal-killer

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Make Deals & Build Up Businesses Communication Styles When Selling a Technology

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Elevator Pitch Your Elevator Pitch Should Include: The Problem Your Business Solves Who Has the Problem How Big the Market for the Solution Is Your Qualifications to Run this Business Make Deals & Build Up Businesses [Name of your company] provides [name your products or services] for [describe the specific segment of the market you will serve] who [describe the problem this solves for them]. [Enter one sentence that tells why this business is needed and by whom.] [Make a statement about the size and/or growth trend of the industry.] [Write a sentence or two, no more, to address your qualifications to run the business.) [Make an honest, upbeat, substantive and credible claim about the business potential in terms of sales or profitability.]

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Make Deals & Build Up Businesses Executive Summary Executive Summary must be readable, focused, answer three questions and be credible. The Three Questions: 1. What do you have? Your opening paragraph should answer this question. For example: Our company manufactures pianos in Russia. Our last year's gross income was US$672,000 with a pretax profit of US$123,400. We own the real estate upon which our plant is located. 2. What do you want? The second paragraph should tell the investors what you are seeking. For example: Our company has the opportunity to buy a competitor in the Ukraine and to acquire an organ manufacturer and their manufacturing plant in St. Petersburg. The two acquisitions would increase our annual revenues by US$900,000 and the St. Petersburg commercial real estate is valued at US$325,000. We need US$1 million dollars to complete both acquisitions. 3. What are you willing to give up to get what you want? This should be the third paragraph. For example: … we are willing to give the investment group half the equity in the resulting manufacturing firm. This means the investor is being offered about a 15% Return on Investment with a risk level of about 6%. In essence the offer is a good investment for the right investor. Credibility… http://roachpost.com/2010/02/08/executive-summary-template-free/

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Make Deals & Build Up Businesses Product Development Timeline 10+ Years

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Eugene Buff, MD, PhD Certified Licensing Professional (CLPTM) Co-Founder, Principal ~ UsTech Discovery LLC Vice President, Consulting ~ yet2.com, Inc. E-mail: eugene.buff@ustechdiscovery.com Skype: eugenebuff Contact information Make Deals & Build Up Businesses