Path to Commercialisation

The following guide is provided as a starting point to help you plan the development and commercialisation of innovative products and services. Its purpose is to stimulate thinking on the tasks, activities and problems that need to be overcome on the path to commercialisation.

Following a structured approach to innovation and commercialisation has been shown to help in the development of innovative products and services in a timely way. It also ensures that the needs of potential clients are built into the development plan.

The guide is aimed to help you answer three questions to assist in the development process:

Where are you at?
Where do you want to be?
How will you get there?

As you answer these questions you will find yourself addressing the issues that you are likely to face along the path to commercialising your product or service. These issues include:

Establishing the need in the market
Setting technical goals, assessing risks and developing a methodology for achieving your goals
Costing the development and commercialisation process
Protecting the intellectual property developed and maintaining a competitive advantage
Having a commercialisation strategy.

Along the way to making sales many obstacles can get in your way. It is essential that these stumbling blocks be identified before they adversely affect the commercialisation of your product or service. This approach will help you plan the development of your innovation.

The guide should help in identifying gaps that you will need to address in commercialising a product or service.

Where are you at?

The starting point for your plan is to determine exactly at what stage you are at.

For example, have you developed a product or service that is ready for commercialisation or are you faced with resolving technical issues or problems in developing your idea into a workable prototype? In doing this, it is important to take stock of “where you are at”, to understand at what stage your project is and the activities you have undertaken to get there. Having this understanding will provide the springboard to identify what tasks need to be done and the strengths, weaknesses, opportunities and threats that you will face in progressing on your journey to commercialisation.

In any journey, knowing where you are starting from is vital. If you don’t know the starting point it is unlikely that you will be able to find your way to your planned destination.

What is your idea?

Describe your idea in one sentence
What have you achieved so far?
What money and other resources have you committed?
Is your idea original?
What is new or innovative (not existing before) about it?
Have you conducted patent, literature or other searches?

Does anyone want it?

What problem does it solve for potential customers?
Describe the type of person who would buy your product or service
Why would someone buy your product or service rather than solve the problem another way?

Where do you want to be?

The next stage of your journey is to work out your destination. Also, you should think about some of the hurdles or barriers that you may face along your journey.

Within the context of your plan you should think about the outcome you are aiming to achieve. Do you need to solve technical problems or is there some performance criteria that you need to meet? Is there a cost criteria that you need to achieve or particular regulations or standards that need to be met?

The answers to questions such as these will guide you to identifying what the outcome of your plan will be. Are you developing a new product or process or a better way of manufacturing an existing product or delivering an existing service? Is it the building of a prototype to demonstrate the technical feasibility of your idea or is it the trialing and demonstration of a developed product or service to demonstrate the commercial feasibility?

Knowing your destination (the outcome you are hoping to achieve) is vital to mapping out your journey and determining the milestones along the way that will guide you toward your destination. To be able to develop your map you need to know exactly where you are heading. Unless you know and understand your destination and see it as achievable, it is more than likely that you will be distracted by the scenery along the way or be diverted by other events or problems that may occur along the commercialisation pathway.

What’s the outcome?

What are you seeking to achieve with the development and commercialisation of your idea?
What technical problems do you need to solve?
Is there a cost criteria you need to meet?
What about performance and efficiency criteria?
Are there specific standards you need to meet?

Can you achieve it?

What will prevent you from developing your idea?

Ability to solve technical issues
Availability of resources
Changing regulations and standards
Changes in technology
Changes in market conditions and competition
Market entry barriers
Changes in economic conditions
Availability of funding.

How will you get there?

Now that you have identified the status of your idea and the outcome you are seeking, you are ready to draft a plan to take you to your destination. This is like constructing a map that links your idea to its commercial destiny. In constructing this map you will need to consider alternative ways of reaching your destination and the most straightforward path may not be the safest or cheapest.

In developing your plan you should consider how you will go about solving the technical problems, whether or not you can fund the work that needs to be done, whether you have the skills and experience to undertake the project and how you will go about selling the product or service that you plan to develop.

What is the plan?

What activities do you need to undertake?
- To solve the technical issues
- To commercialise the idea.
What skills do you need to develop and commercialise the idea?
- Are the skills available internally?
- Do you need to buy the skills in?
- Can you partner with someone who has the skills?
What equipment and facilities do you need?
What are the costs involved in developing and commercialising your idea?
How will you minimise the risks?
How will you protect the intellectual property?

Where is the money?

How will you pay for the development of your idea?
How will you pay for the protection of your idea?
How will you pay for the commercialisation of your idea?
Have you approached potential partners or financiers?
How will you sell it?
Where is the location of the market?

What is the size of the market?

Is it growing?
How will you meet demand?

Who are your competitors?

Similar or existing technologies
Alternatives in the market.

What will give you an edge over your competitors?

How will you deliver to the market?

Distribution networks
Licensing and/or manufacturing agreements
Manufacture in house
Sell direct to the customer
Sell the idea.

Where to next?

The Innovation Centre WA is a good starting point. Innovation Centre staff provide an advisory service to clients to encourage the development and commercialisation of innovative products and services.

Depending on your needs we may be able to facilitate access to development funding providers and business advisors who can provide strategic and commercial advice. Please contact us for further information.

Disclaimer

Whilst every care has been taken in compiling the information in this guide, the department and its contractors neither warrant nor represent that the material published herein is accurate or free from errors or omissions. To the extent permissible by law, the department and its contractors shall not be responsible or liable for any errors, omissions or misrepresentations made herein.