In an earlier blog post, where I introduced a commercialization framework for new and innovative business development (click here to read it). This posting is the first of a series of postings, where I will address each step of my commercialization framework.
I will assume that when you start this exercise, you already have a technology in mind. In other words, you have a hammer and you are looking for a nail to hammer in. Many people may argue that having a solution in mind is not the ideal way to get started but this is the case most of the time. So, rather than ignoring a fact, let’s learn to make the best of it.
The first step is Business Design and I strongly recommend you start here before jumping into development. Here is a quick to-do list at this step:
- Identify 2-3 target markets and their unfulfilled needs
- Identify, as specifically as you can, an unmet and recognized need in 2-3 markets.
- Prioritize target markets and identify your top target
- Specifically articulate the unfulfilled need of your top target
- Identify key functions/features to address the unfulfilled needs and assess existing products, including yours, against these key functions/features
- Define business model(s) for each of the target markets
- Business case (why this business should exist?)
- Eco-system definition (in which the business will exist)
- How would you make money?
- Define potential business structures to tackle the needs of the target markets (eg. partnerships, joint ventures, IP licensing, etc.)
- Identify key functions & activities your business and partners, if any, need to do
- Identify financing options for potential business structures and assess feasibility
- Identify key skills your business will need and create a simple organization structure to define how these people would operate (yes, even a start-up needs one)
That’s about it. The most popular tool to put this all together is the Business Model Canvas, which you can find here.
I welcome your comments on my blog. Please share this posting if you find it helpful. If you have any questions, comments or thoughts, I would love to hear from you.