Global E LabGlobal E LabStarting to Develop your Project Starting to Develop your Project

AnalysisAnalysis

Today’s AgendaToday’s Agenda

At least two types of project analysis that relate to technology strategy

• Value Creation• Value Capture

Consider salient global (non-US) issues and challenges that relate to technology strategy & some key data sources to get you started…

Simple (familiar) framework Simple (familiar) framework for technology strategy issuesfor technology strategy issues

Question:Question:What types of analysis are you being What types of analysis are you being

asked to do?asked to do?

• Value Creation• What should our product portfolio look like, do we have

the right product map?• How do we move our products into new markets & new

countries? • How should our technology development plans be

structured?• Product development process mapping

• Value Capture• Competitive analysis in different markets• Building up complementary assets• Partnership analysis – what partners should I approach?

Example: Example: Gradipore, AustraliaGradipore, Australia

• Who are they? Novel bioprocess technology – Gradiflow

• Key challenge I -- Accessing talent pool to speed development– Partnership with University of NSW for training &

service management– Partnerships with UK universities

• Key challenge II – Accessing the sophisticated US market– US technical advisory board– Continual presence in US meetings– Find a US customer with a presence in Asia

Frameworks & Heuristics from Frameworks & Heuristics from Technology Strategy Technology Strategy

Value Creation

• Market dynamics• Mapping technology to

products & markets• Network or product

value analysis

Value Capture

• Uniqueness & protection• Value chain &

complementary assets• Establishing & exploiting

standards

Value Creation:Value Creation:Understanding market dynamicsUnderstanding market dynamics

Some g.lab guidelinesSome g.lab guidelines• How can you create new markets?

• How sophisticated are customers- what assumptions can you make about technical savvy? e.g. GMO Cotton in India; HIV drugs in Africa

• What needs to change about the technology to influence adoption? e.g. PDAs in India

• Who is the lead customer?• Are they representative?• Can you learn from country to country?

INFO: Market reports, country analysis – World Bank, Disclosure Select for foreign firms, EIU Country Profiles

Value Creation:Value Creation:Match technology to different markets to Match technology to different markets to maximize chance of successmaximize chance of success

• Map out the Technology / Market path • Map out product offerings – project

portfolio planning

Technology Risk-Customer Value Technology Risk-Customer Value MappingMapping

Product Generation MapProduct Generation Map

Process of Market-Technology MappingProcess of Market-Technology MappingPhase progression indicates increasing investment and decreasing risk.

Some g.lab guidelinesSome g.lab guidelines• Realistic expectations about pace & necessity

of technology development – careful mapping with their experts

• Does the firm have access to appropriate technical knowledge base?

• Can you help find key experts in the US, esp. MIT• What are the key US conferences, meetings etc.? • Seek out potential sources of local expertise

• Awareness (not obsession w/) disruptive technology

INFO: Journals, industry guides, analyst reports, CorpTech for US firms; Emerging Markets; Euromonitor

Some g.lab guidelinesSome g.lab guidelines• Can you map out a product platform strategy in the li

ght of key market challenges?

• Customization for each national market can be costly & complex & reshape economics

• What would you need to accomplish (from a technical perspective) to enter the US market?

• Is it realistic? • What about competitive offerings?

• Problems with proliferation of projects (not unique to non-US firms)

INFO: CorpTech, Hoovers (esp. for Europe), InvesText for analyst reports

Value Creation:Value Creation:

Great Product Value v. Network ValueGreat Product Value v. Network Value

• GPV: Great product value– Consumers base

their purchase decision on the intrinsic value of the product to them

– Competition on the basis of features, price etc

• NV: Network value– Consumers base

purchase decisions on the size of the (actual or projected) installed base

– Competition on the basis of the size of the installed base, availability of complementary products etc

Some g.lab guidelinesSome g.lab guidelines• What are the dynamics of (network)

product adoption in your market?• Connectivity? • Dynamics of sharing

• How can you best develop the required complementary products?

• Do they already exist? • Are you developing them for a US firm?

INFO: Juniper Communications; InfoTech Trends; Gartner Group; Yankee Group Reports

Value Capture:Value Capture: Core competencies (technological & other)Core competencies (technological & other)• Uniqueness: Are the competences unique & competitive in

different market settings?

• Appropriability: Can they be protected? • US patent searches can be useful • Recall key differences in IPRs across countries• Possible licensing opportunities

• How important are key people…. • Nature of the labor market e.g. telecoms software in Jordan • Can you keep them?

INFO: Patents from www.uspto.gov; competition from analyst reports (esp. Europe); EIU; European newspapers e.g. FT often useful country analysis

Value Capture:Value Capture:Reviewing the Value chainReviewing the Value chain

• Analysis of all the steps necessary to deliver a product to the customer

• What segments of the value chain does your firm want to occupy?

• What segments are the most profitable?

R&D Sourcing Manuf. Distrib.Mkt.

Cli. Mgmt.

Value Capture:Value Capture:What Are Complementary Assets?What Are Complementary Assets?

“Theose assetsnecessary to translate an innovation into commercial returns:”

• What can we access here?

• What can we develop ourselves?

• What must we develop ourselves?

Some g.lab guidelinesSome g.lab guidelines• What complementary assets are locally

available?• CMOs, distribution channels may not be available

e.g. Australia’s biotech firms• Conglomerates – are CAs in the hands of large

national conglomerates e.g. Koc Group in Turkey• Does lack of CAs change the way you deliver your

product (and the economic proposition)?

• US partners may be valuable but challenging to work with –what do they bring & at what cost?

• UK biotech firm locates business development in MA close to major pharma customers

Value Capture:Value Capture:Setting or working within industry standardsSetting or working within industry standards

Some g.lab guidelinesSome g.lab guidelines• Can you use regulation to shape

standards?• Non-market strategies • Government relationships e.g. environmental

regulation

• Participation in standard setting bodies – is this possible/ necessary?

INFO: www.emc-database.com for info on cellular and wireless; e commerce & law report