Technology Entrepreneurship

MANU 4211
SECTION 3 & 4
SEMESTER 2, SESSION 2020/2021

Part 2: Countdown to Launch

Dr. Ricca Rahman Nasaruddin

15/03/2021 (Monday)

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OUTLINE

1. Markets & product / service

development
2. Protecting your intellectual
property (IP)
3. Developing & implementing
the business plan

2
1. Markets & Product /
Service Development

➢ Overview
➢ Product Planning & Development Process
➢ Idea Development Process
➢ The Concept of Newness
➢ Opportunity Assessment Plan
➢ The Market
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 OVERVIEW

• A technology venture focus on new technological product or

service that solves a significant, presently occurring,
problem.
• In other cases, an idea, technology, or product may first be
created and a market for that idea, technology, or product
would then be thereafter developed.
• This is often the case with respect to particularly novel and
disruptive technology.

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 OVERVIEW
Idea
Conceptualization
In Previous Part (Part 1)
• “Lean Start” approach
• Evaluation of the idea of
technology / product is
performed as an integral part
of the build-measure-learn
feedback loop involving
presentation of successive
minimally viable products to
consumers.
Screening &
Evaluation
In Part 2
• Discussing how screening
can also be accomplished
through a Idea / Product Idea
Planning and Development
Process, & Opportunity
Assessment Plan.
• Needs to consider the degree
of newness that the new
technological idea presents.
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PRODUCT PLANNING & DEVELOPMENT PROCESS

The product planning and development process. Source: Hisrich, R.D., Peters, M.P., Shepherd, D., 2013.
Entrepreneurship 9E. McGraw-Hill/Irwin, New York.

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IDEA DEVELOPMENT PROCESS

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THE CONCEPT OF NEWNESS

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THE CONCEPT OF NEWNESS

Newness to Newness to
the the
Consumer Organization

Newness to the
Distribution
System

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 NEWNESS TO THE CONSUMER

• If the innovation is too far in advance of the present state of the

market, problems can occur.

• Consider the newness of the innovation in terms of its disruption in

the established consumption patterns or lifestyles of the target
market.

• The least disruptive innovations continuous innovations have little

impact or influence on the lifestyle of the purchaser and therefore
usually do not take very long in the evaluation and adoption stage.

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NEWNESS TO THE CONSUMER

• It takes time for truly disruptive innovations to be accepted and adopted in the
marketplace.

• Potential resistance to replacing an existing base of still operating old-

technology products should be evaluated.

• Relatively recent examples of disruptive technology include digital video

recorders and entertainment on demand, inexpensive video cameras and
YouTube, and smartphones and wireless Internet access.

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NEWNESS TO THE ORGANIZATION

• The newness of the innovation to the sponsoring organization is also important

to assess.

• The first time an individual invents, or the first time an innovation is in a new
area of endeavor for a venture, there are more difficulties in developing and
launching the innovation.

• This is reflected in the rule that most venture capitalists use: make sure
someone on the management team, if not the entrepreneur, has experience in
the industry of the new venture.

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NEWNESS TO THE DISTRIBUTION SYSTEM

• Like consumers, individuals, and organizations, distribution systems have

lifestyles ways of doing things.

• An innovation outside its typical product category, size, shelf fit, or packaging
will have a more difficult time gaining access.

• E.g. A new cat food that was odorless to humans but loved by cats could not
access the retail stores until a new package size and design was developed.

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OPPORTUNITY ASSESSMENT PLAN

• An opportunity assessment plan is NOT a business plan.

Compared to a business plan, it should:

1 Focus on opportunity not venture

2 Have no consumer based spreadsheet

3 Act or wait on an opportunity

4 Be shorter
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OPPORTUNITY ASSESSMENT PLAN

• The opportunity assessment plan is usually shorter than a business plan,

focused on the opportunity and market rather than the business; and has no
financial, marketing, or organizational plan.
• It is used to determine if the innovation has at least three to five unique features
(unique selling propositions) compared to the competitive product or service
presently on the market and filling the same need.
• The opportunity assessment plan also determines if the product or service has a
viable market that is large enough, growing, and accessible enough to warrant
pursuing the innovation.

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OPPORTUNITY ASSESSMENT PLAN

Part 1 • A description of the product or service

Part 2 • An assessment of the opportunity

• Entrepreneurial self-assessment and

Part 3 the entrepreneurial team

• What needs to be done to translate this

Part 4 opportunity into a viable venture?
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OPPORTUNITY ASSESSMENT PLAN

• Part 1 : A description of the product or service

❑ What is the market need for the product or service?

❑ What are the specific aspects of the product or service (include
any copyright, patent or trademark information)?
❑ What competitive products are available filling this need?
❑ What are the competitive companies in this product market
space and their strengths and weaknesses?
❑ What are the country counting codes for this product or
service?
❑ What are the unique selling propositions of this product or
service?

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OPPORTUNITY ASSESSMENT PLAN

• Part 2 : An assessment of the opportunity:

❑ What market need does it fill?

❑ What is the size and past trends of this market?
❑ What is the future growth and characteristics of this market?
❑ What are total industry sales over the past 5 years?
❑ What is anticipated growth in this industry?
❑ What is the profile of your typical customers?

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OPPORTUNITY ASSESSMENT PLAN

• Part 3 : Entrepreneurial self-assessment and the

entrepreneurial team:

❑ Why does this opportunity interest you?

❑ What are your reasons for going into business?
❑ How does it fit into your background and experience?
❑ What experience is needed to successfully launch the product
or service?

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OPPORTUNITY ASSESSMENT PLAN

• Part 4 : What needs to be done to translate this

opportunity into a viable venture?

❑ Establish each critical step in order.

❑ Determine the time and money needed at each step.
❑ Determine the total amount of money needed and its source.

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THE MARKET

• Regardless of the nature of the technological idea and its degree of

disruptiveness, it is essential for every idea to have a market.
• From an economic viewpoint, a market is a mechanism that bridges the gap
between supply and demand and consists of a group that may buy the product.
• There are three types of markets for a technological product or service:

Consumer Industrial Government

Markets Markets Markets
B2C B2B B2G
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THE MARKET – CRITERIA FOR A GOOD MARKET

• Measurability determines the degree, size, and other aspects of

Measurability the market that can be determined

• Accessibility measures the capability of the company to

Accessibility effectively market and deliver the technical product or service to
this defined market.

• The profitability criteria defines whether the market identified is

Profitability large enough and easy enough to be worthwhile.

• The stability of the market, needs to be favorable. Many technology

Stability products that could be successful in developing economies may not
be profitably marketed due to instability of the market or country.

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MARKET SEGMENTATION

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2. Protecting Your
Intellectual Property
➢ Recognizing IP
➢ Record Keeping
➢ IP Protection
➢ Patents
➢ Trade Secrets
➢ Copyrights
➢ Trademarks
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INTRODUCTION

• Intellectual property (IP), the intangible

asset that comprises or results from
creativity, innovation, invention, know-
how, and reputation (and encompasses
all rights to technology), is becoming an
increasingly important aspect of any
business.

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RECOGNIZING IP

• Technology ventures should: continuously and

systematically analyze their products and operations to
identify potential IP; affirmatively seek opportunities to
develop protectable IP assets; obtain and maintain
exclusive rights to the IP to the maximum extent
available; and exploit the assets as part of an overall
strategy.
• Everything that gives the business an advantage should
be identified.

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RECORD KEEPING

• The basic foundation for IP protection and for

protecting against third-party charges of
infringement is often a complete and accurate
evidentiary record.
• It is sometimes necessary to prove the specific
nature of technical innovations, the date they were
made, and the project with which the innovations
are associated.

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RECORD KEEPING

• A documentary record should be maintained that is capable of

establishing the dates and activities comprising each of the elements
of making an invention, identifying individuals involved in the work
who can provide testimony, and identifying the particular project with
which technical work is associated.

• It is important that all loose papers, such as computations,

diagrams, blueprints, schematics, flowcharts, oscillographs,
photographs of models, test results and so on, be signed and
dated, cross-referenced to a particular entry, and, preferably,
mounted in or scanned into the body of the appropriate entry.

• Similarly, physical results of tests, for example, samples, models, and

prototypes, should be carefully labeled with the date, cross-
referenced to record entries, and retained.
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IP PROTECTION

• Intellectual property (IP), the intangible asset that

comprises or results from creativity, innovation,
invention, know-how, and reputation (and encompasses
all rights to technology), is becoming an increasingly
important aspect of any business.
• IP can take many forms. As will be discussed, the terms
trade secret, utility patent, design patent, copyright,
mask work, and trademark have come to denote both an
IP asset and legal mechanism for protecting the
underlying assets.

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IP PROTECTION

https://www.glica.org/hello-world-3/
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IP PROTECTION

https://ocpatentlawyer.com/four-types-intellectual-property-protect-idea/
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IP PROTECTION

https://ocpatentlawyer.com/four-types-intellectual-property-protect-idea/
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 IP PROTECTION – STATISTIC

Statistical country profiles – Malaysia:

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 IP – PATENTS

• Who are the Top 20

Malaysian Patent Filers
of 2018?
• KASS International is an
established Intellectual
Property Firm which
offers a one-stop
solution for IP matters in
Malaysia, South East
Asia, and worldwide.

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IP – PATENTS

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IP – PATENTS

• Example of a
U.S Patent

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 IP – PATENTS : AN EXAMPLE

• For Example: Assume that when the “stool” and

“chair” were first invented, there was a patent
system in place.

• Existing product (have been patented) : A stool,

claiming: “Apparatus comprising a platform
and at least one support member disposed to
maintain the platform at a predetermined level
from the ground.”

• You invent: A chair to be patented, claiming:

“Apparatus comprising a platform, at least one
support member for maintaining the seat at a
predetermined level from the ground, and a
back extending above the platform.”

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 IP – PATENTS : PATENTABILITY

• Basic criteria that must be met before an inventor is

awarded a patent on an invention:
The invention must consist of patentable subject matter, that is, be within
1 certain broad categories of subject matter (patent-eligible)

The invention must be capable of industrial application (or, in certain

2 countries such as the United States, be useful)

3 The invention must be new (novel)

4 The invention must be nonobvious (it must involve an inventive step)

The disclosure of the invention in the patent application must meet

5 certain formal and substantive standards.
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IP – PATENTS APPLICATION

In Malaysia, you can get information on IP application through

MyIPO:
http://www.myipo.gov.my/en/apply-for-patentutility-innovation/

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IP – PATENTS APPLICATION

Process to apply for a patent / utility innovation (MyIPO):

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 IP – TRADE SECRETS

• Secrecy is probably the most ancient form of IP protection.

• Any proprietary information that can be kept secret can be a trade secret. E.g.
formula, practice, process, design etc.
• If the competition doesn’t know it, they can’t copy it—and will have to expend
the time and effort to develop it on their own (assuming that they can).
• Trade secrecy is the primary protection mechanism for information, data, know-
how, and expertise, but it can also be used to protect inventions.

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IP – TRADE SECRETS
 IP – TRADE SECRETS

• In theory, the procedure for maintaining a trade secret is simple.

• Implementation of the procedure, however, requires discipline.
• To maintain trade secret status, you must be able to show that your procedures
for maintaining secrecy meet the standard of “reasonable under the
circumstances.”

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 IP – COPYRIGHTS

• Copyright is the exclusive right, given to the creator of a creative work, to

reproduce the work, usually for a limited time.
• The creative work may be in a literary, artistic or musical form.
• Copyright is intended to protect the original expression of an idea in the form of
a creative work, but not the idea itself.

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IP – COPYRIGHTS

1. Literary works
2. Musical works
3. Artistic works
4. Films
5. Sound recordings
6. Broadcasts
7. Derivative works

http://www.myipo.gov.my/en/procedure/
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 IP – TRADEMARKS

• A trademark is a type of intellectual property consisting of a recognizable sign,

design, or expression which identifies products or services of a particular
source from those of others, although trademarks used to identify services are
usually called service marks.

Examples:

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IP – TRADEMARKS

Trademarks procedures and application in

Malaysia:

https://www.export2asia.com/blog/malaysia-trademark/

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IP – SUMMARY

https://www.legalwiz.in/blog/difference-between-trademark-copyright-patent-ipr-in-india
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3. Developing &
Implementing the
Business Plan

➢ Writing a Business Plan

➢ Purpose of the Plan
➢ Elements of a Business Plan

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WRITING A BUSINESS PLAN

• Creating and building a successful technology venture

requires effective planning.

• Although indeed the process of thinking this through and

developing the necessary strategies is important, the
process and the discipline required to putting this in
writing makes the thinking process more effective and give
the venture a better opportunity for success.

• Often something conceptualized in the mind of a

technology entrepreneur does not make sense once it is
committed to writing.
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PURPOSES OF THE BUSINESS PLAN

• Besides providing a roadmap or direction for the new

technology venture, a business plan can have several
specific reasons for being written. The first and by far the
most usual reason is to obtain financing. Most technology
entrepreneurs do not have all the resources needed to
develop and launch a technology venture.
• External financing is needed whether provided by financial
institutions, private individuals, venture capital firms, or
private equity firms. This nonpublic capital called
enterprise capital is essential to start and grow
technology ventures.
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PURPOSES OF THE BUSINESS PLAN

• Keep in mind when writing a business plan, the private

investor or venture capitalist who is receiving it may
receive 50–100 plans each week.
• Of 100 business plans received, only 10 will not be
discarded through the reading of the two-page executive
summary. And, of these 10 remaining, only one or two will
receive funding.
• This means that the business plan of a technology
entrepreneur must be crafted to be a good selling
document to survive the scrutiny that occurs before
funding.
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PURPOSES OF THE BUSINESS PLAN

• Another reason for writing a business plan is to determine all the

resources needed including financial. This is usually an end result of
a good technology business plan.
• A careful review of the current existing resources of the technology
entrepreneur and the enterprise and the resources needed at
various stages of development such as financial, human,
technological, supply, or distribution provides insight into the plan that
must be in place to make sure these resources are available in a timely
fashion.

• Potential suppliers of the resources need to be specifically identified

along with a solid approach to each supplier.

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PURPOSES OF THE BUSINESS PLAN

• To provide a direction for the new venture. In the

development, launch, and growth of a technology venture
there are many different directions and opportunities
available.
• A good business plan allows these to be more easily
evaluated and best direction or opportunity selected.

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PURPOSES OF THE BUSINESS PLAN

• Being able to evaluate the results of the venture is

another reason for writing a business plan.
• Even though this may not be the most popular reason for
the technology entrepreneur to write a business plan,
particularly when the results may not be favorable, the
business plan points out problems that need attention
and focus.

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PURPOSES OF THE BUSINESS PLAN

• The final reason for writing a business plan is to obtain a

coventurer.
• A business plan lays out the plan for the business for
perspective coventurers and helps them decide whether to
be involved.
• The decision to joint venture is easier when a business
plan has been prepared.
• Most seasoned entrepreneurs and business persons will
not consent to be a member of any advisory board of a
technology venture without having evaluated at least a
preliminary business plan.
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ELEMENTS OF THE BUSINESS PLAN

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ELEMENTS OF THE MARKETING PLAN

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ELEMENTS OF THE MARKETING PLAN

• The most important document in the plan is the

executive summary because most business plans
are not read beyond this by potential investors.
• Each business plan needs to be well written and
organized and address as many anticipated
questions as possible.
• It needs to flow smoothly and consistently without
errors so that the reader has a clear
understanding about the details and future
success of the new venture.
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 CONCLUSIONS

• Three techniques (the product planning and development process, the idea
development process, and the opportunity assessment plan) for evaluating
the new technological idea were discussed.
• IP is the great equalizer in the world of business. IP assets not only can be
leveraged to sustain competitive advantage, but also can create credibility in the
industry and with investors.
• Every new venture needs a business plan to set the direction for the firm and
to obtain financial resources. It is important that it be well written and edited.

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