Transforming knowledge to

products and business Andrzej Brud Chalmers Innovation

Andrzej Brud – CEO, Business coach – Chalmers Innovation – Active Member of the Board in numerous

technology based start-ups – Closely involved in start-up of more than 50

companies – More then 25 years of experience from

business development and financing – Entrepreneur – Academic background – Natural Sciences and

Economics

andrzej@chalmersinnovation.com

Chalmers Innovation • Evaluates 200-250 ideas/y • Started 110 companies • Companies grown at CI:

– Have turnover of +500 MSEK – Have +500 employees – Attracted 1,4 BSEK of private capital – Operating Chalmers Innovation Seed Fund 170 MSEK

Agenda

• Transformation of ideas to business

–Transformation of technology to customer values –Busines Idea Identification – basic tool/method

•Case studies –Oxeon –MicVac

Have you purchased a technical gadget lately ?

Digital Camera The picture can be stored and

distributed digitally Reduced costs

- Editing the pictures - Instant pictures - Possibility to erase bad pictures --The pictures can be sent to others quickly

Reduced costs

Digital Camera

Properties User Advantage Benefit

Digital format Photographer The picture can be

stored and distributed digitally

Reduced costs

Digital Format Photographer

- Editing the pictures - Instant pictures

-Possibility to erase bad pictures

--The pictures can be sent to magazines

quickly

Reduced costs Increased income

Digital handling of the photo Photo Lab Less chemicals and

machines

Reduced cost for the for production

increased margins

Very small dimensions Manufacturers of electronic equipment

The camera can be integrated in a phone – instant pictures

New business opportunities

Business Idea Identification

An example: Researcher presents a description of a new device:

Business Idea Identification

Q: – What can you do with the device? A: – A lot of things!

Question – Is it good or bad?

Business Idea Identification

An example: Researchers view • Business view

BII - Business Idea Identification

Properties User Advantage Benefit

What are the unique properties of the specific technology

Which persons/organizations can benefit from using your product?

What advantage by using those properties can a specific customer achieve?

When using this advantage, what benefit will the specific customer achieve?

Who is the user? Who is the customer?

How much lower? How much higher? How much faster? How much more effective?

How can it be valued in terms of %, $, £

Business Idea Identification LED - diodes

Properties User Advantage Benefit

Long lifetime >100000 hours vs incadescent bulb (1000 hours)

Municipality responsible for traffic light

Fewer changes of the light source (traffic signal light)

Maintenance cost lowered by 100 times

Earlier 100*50 Euro = 5000 Euro

Now 1*50 Euro = 50 Euro

Case Studies • Evolution of Invention Based Business

Market pull

-A defined problem -Searching for a suitable solution There is a need from someone

Technology push -A defined solution -Searching for a problem

There is an tech-idea from someone

Case Study

Oxeon - From research results to DI Supergasell

Case Study Case Study

Oxeon

Case Study Case Study

Oxeon

Three primary market applications

Supergasell 2011

Case Study

Micvac from Confusion to Epiphany

First meeting with the inventor

– A plastic bag – Black insulating tape – A knife – Raw fish – Spices – Do you have a microwave

oven?

Case Study MicVac

What happened

– Raw fish in the plastic bag – Sprinkle of spices in the bag – Sealed the bag – Made a hole in the bag with the knife – Taped the hole with a piece of insulating

tape – Less than 4 minutes in the microwave

oven

Case Study MicVac

The Epiphany – the benefits – Fish cooked and vacuumpacked in less then 4

minutes – Fantastic texture and taste – Extended lifetime of the fresh product – Simple process, less space, less energy – Convienience for the enduser in preparation

Case Study MicVac

The Challenges

– From Epiphany to product and industrial solution

• What product? • What material? • What process – no industrial microwave

ovens known

Case Study MicVac

The Challenges

– In search for the Business model • What to sell? License? The valve? • Mimicing the TetraPack businsess model • Selling license, material, valves and

machines

Case Study MicVac

The protection of the business

– Patent for MicVac valve Originally the tape over the hole

– Several patents on materials and packaging – The knowledge of the industrial process using

microwave

Case Study MicVac

The Production Line

Case Study MicVac

Case Study MicVac

New Challenges • Global competition

• Everything is running faster

• Limited funding

• Need to work faster • Need to work smarter

What’s wrong with this picture?

Concept Product Dev. Alpha/Beta Test

Launch/ 1st Ship

What’s wrong with this picture?

• Both Customer Problems and Product Features are hypotheses • Emphasis on execution rather than learning and discovery • No relevant milestones for marketing and sales • Often leads to premature scaling and a heavy spending hit if product

launch fails

You do not know if you are wrong until you are out of money/business

Concept Product Dev. Alpha/Beta Test

Launch/ 1st Ship

NO:

Business Plan

Market Strategy

Organisation Charts

Funding

5 year Budget

Scenarios ....

IT’S ALL ABOUT INCREASING THE PROBABILITY TO SUCCEED

GET FACTS!

Lean canvas

START VALIDATING BY UNDERSTANDING THE PROBLEM

The one who iterates fastest- wins 1. You don’t perish 2. You own more of your company 3. You outperform competitors

Time to no cash Execution momentum Motivation span

BUILD, MEASURE & LEARN UNTIL YOU GET TRACTION

There is a due date