4. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Commercialisation Project Management Cycle Risk Management Strategy IP Exploitation Concept Research Business Plan IP Protection Funding Package Product Dvpt Commercial- isation Working Capital Strategy Dvpt Market Research Company Set Up Idea Dvpt Revenue Generation
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7. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Where are you in the Process? Risk Management Strategy IP Exploitation Concept Research Business Plan IP Protection Funding Package Product Dvpt Commercial- isation Working Capital Strategy Dvpt Market Research Company Set Up Idea Dvpt Revenue Generation
12. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS “ Innovation and design allow Sony to maintain market premium pricing, providing more cash flow from its product portfolio. This cash flow can then be re-invested into more innovation” Financial Times
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16. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Case Study: Breeze Blockers Stage 1: Development of Idea: “ Develop, manufacture and supply a range of bicycle accessories designed to keep a cyclist warm during the cold autumn, winter, and early spring seasons”
19. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Case Study: Breeze Blockers Stage 4: Product Range Roll Out and Full Brand Concepts
20. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS The Importance of Product Testing: Success Rate of New Product Ideas Development 5 10 15 20 25 30 35 40 45 50 55 60 Number of Surviving Ideas Cumulative time (percent) Screening Business analysis Development Testing Commercialisation One successful new product
22. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Product Testing: The Subjective Massacre Development I don’t like change: We should make the same products…forever! I don’t like Fred: So I don’t like his ideas! I’m the boss – therefore I’m right…
23. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Product Testing: Scoring Attractiveness Development High Medium Low size of market large modest small regulatory compliance High requirement High Value Some requirement No requirement importance of innovation aesthetics = sales cost compromise functional only Component count Low Medium High Buyer decision process identifiable and simple or experienced complex & slow or some experience difficult to Define or no experience targeting customers Visible targets Attractiveness Worse Option Better Option Strategic Factors Operational Factors Some targets no visible targets
24. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Product Testing: Opportunity Attractiveness Development High Medium Low size of market Attractiveness regulatory compliance Importance of innovation Opportunity 1 Opportunity 2 Opportunity 3 Opportunity 4
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28. NORTHUMBRIA COMMERCIAL ENTERPRISES INNOVATION CAMPUS Development Costs in the Product Development Cycle 80% of all future product costs determined by this stage Idea Concept design Detailed design & prototypes Production ramp up Actual spend Costs committed On-going production Total cost % 100 %
