# Presentation: 913865

## COMMERCIALIZATION STRATAGIES

- Presented by:
-      David N. Karpel
-      President
-      Assistive Technology Products, Inc.

## 1927 	“Who in the hell wants to hear actors talk?”
					Harry Warner 
					Founder, Warner Bros.

1943 	“I think there is a world market for about five 			computers”
					Thomas J. Watson 
					Chairman, IBM

1977 	“There is no reason for any individual to have a 		computer in their home”
					Ken Olsen 
					President, Digital Equipment

		...and all of these people were great leaders.

- 					*Harry Warner *
*	**	**	**	**	**Founder, Warner Bros.*
- 1943 	“I think there is a world market for about five 			computers”
- 					*Thomas J. Watson *
*	**	**	**	**	**Chairman, IBM*
- 1977 	“There is no reason for any individual to have a 		computer in their home”
- 					*Ken Olsen *
*	**	**	**	**	**President, Digital Equipment*
- 		**...****and all of these people were great leaders.**

## THE CHALLENGE OF CHANGE

- Most Markets Are Experiencing Changes Which:
- Occur _faster_ that ever before
- Come from more _sources_ than ever before
- Have a more _radical impact_ than ever before

## THE CHALLENGE OF CHANGE

- And Often Challenge Corporations to Fundamentally:
- Change the way they think about business
- Change the way they run the business

## WHY CORPORATIONS LOSE LONG-RUN COMPETITIVE CAPABILITY

- In A World of Fast, Radical and Multi-Source Change,
- 	the Long Term Losers:
- _DON’T SEE THE PROBLEM_
- Poor corporate “radar”
- Introverted top management
- _SEE, BUT DON’T UNDERSTAND_
- Intellectual complexity
- Problem lies outside the conventional paradigm

## WHY CORPORATIONS LOSE LONG-RUN COMPETITIVE CAPABILITY

- _UNDERSTAND BUT CAN’T/WON’T PUT IN THE AGENDA_
- Other “pressures”
- Power distribution
- _CAN’T DEVELOP A STRATEGIC RESPONSE_
- Tactical versus strategic focus
- Strategy is a specialist activity

## WHY CORPORATIONS LOSE LONG-RUN COMPETITIVE CAPABILITY

- _CAN’T GET THE ORGANIZATION TO DELIVER_
- Poor understanding/management of implementation levers
- Unable to manage quantum, complex change

## LONG TERM WINNERS

- Long Term Winners Have:
- A clear, shared vision
- Core competencies throughout the organization
- Empowering corporate culture
- Capacity/thrust for change

## THE BUSINESS PLAN 

- Primary functions:
- Develop ideas about the conduct of business
- Refine strategies and “make mistakes on paper”
- Measure actual performance
- Raise capital

## KNOW YOUR AUDIENCE -WHO READS THE BUSINESS PLAN?

- Prospective management and Board of Directors
- Funding sources
- Suppliers/Distributors

## INVESTORS

- Venture Capital Funds:
- Quality and Character of Individual Entrepreneur
- Functionally Balanced Teams
- Proprietary Characteristics
- Self, Family, Friends
- Angel/Angel funds
- Other

## LEGAL FORMS OF BUSINESS

- Major Variables:
- Liability
- Control
- Taxes
- Types:
- Sole Proprietorship
- Partnerships
- Limited Partnerships
- Corporations

## THE EXECUTIVE SUMMARY

- Presents succinctly the essence of the report
- “Tells ‘em what you’re going to tell ‘em”
- Generates immediate interest
- Conveys a sense of excitement and importance

## GENERAL COMPANY DESCRIPTION

- Fundamental activities and nature of company
- Business/customer base
- Location
- Scope of business (domestic/international)
- Business objectives

## PRODUCTS AND SERVICES

- Product characteristics/appeal
- Product description
- Product function and attributes
- Stage of development

## MARKETING PLAN

- The guts of the business plan: the most important criteria for predicting success.
- Real market demand/need
- Sizable market niche
- Competition and Other Influences
- Comprehensive Marketing Strategy
- Quality Market Research

## MARKETING PLAN

- A winning marketing plan:
- Clearly identifies market demand/need
- Has a clear, persuasive case as to how sales will be generated
- Introduces all relevant factors in an objective, yet confidence inspiring manner
- Represents a sound platform for implementation of marketing strategy

## OPERATIONAL PLAN

- Describes how the business will create it’s products and services.
- Approach to manufacturing
- Raw material sources
- Manufacturing processes
- Labor requirements
- Vendors/suppliers relationships

## MANAGEMENT AND ORGANIZATION

- Money invest in people not products
- Assemble and describe the best talent
- Objectively assess company/personnel strengths and weaknesses
- Will management be participative or autocratic?
- Will personnel share in the company’s financial success?
- Will responsibilities and tasks be sharply defined, or will a more flexible approach prevail?

## CAPITAL REQUIREMENTS/ FINANCIAL PLAN

- Describe the business’s capital requirements
- Formulate credible, comprehensive set of projections reflecting anticipated financial performance
- Financials should include:
- Projected income statement
- Projected cash flow statements
- Current balance sheet
- Other financial projections: ROI, Break-even, etc.

## INTELLECTUAL PROPERTY PROTECTION

- Patents
- Copyrights
- Trade Secrets
- Trademarks

## STRATEGIC ALLIANCES/JOINT VENTURES

- Control
- Capital contributions and returns
- Pooling arrangements
- Trading arrangements

## LICENSING

- What is it?
- When is it used?
- What does it imply?
- What can be licensed?
- What about long term issues?
- Royalty rates

## KEY POINTS

- Is it a bold idea?
- Is the venture’s management A+?
- Is the market big enough?
- Is there a concrete business plan for making money?

## KEY POINTS

- IDEA
- MANAGEMENT
- MARKET
- MONEY