vital case study booklet

INTERREG IVA REGION

Northern Ireland (Excluding Greater Belfast) and the Six Border Counties of Republic of Ireland

June 2015

Matching validated ideas andtechnologies with experiencedentrepreneurs and SMEs

A Case Study Book

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Prepared by Douglas Nanka-Bruce and Irene McCausland

© 2015 VITAL Project

All rights reserved.No part of this book may be reproduced or transmitted in any form or by any means, including photocopying and recording, without writtenpermission of the copyright holder, VITAL Project Partnership. Such written permission must also be obtained before any part of this book is storedin a retrieval system of any nature.

Requests for permission should be directed to: VITAL Project, Regional Development Centre, Dundalk Institute of Technology, Dublin Road, Dundalk, Co. Louth, Ireland.

Disclaimer While the VITAL Project Partnership believes that the information in this document is correct at the time of printing, it does not guarantee thatthis is so, nor that the information is suitable for any particular purpose. By virtue of preparing the report or otherwise in connection with thiscasebook, the VITAL Project Partnership and the authors will not assume any responsibility or have any liability to any third party or for any loss ordamage arising from any use of the information contained therein.

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Disclaimer ..........................................................................................................................................................iiList of boxes, figures and tables .....................................................................................................................5Appendices .........................................................................................................................................................5Foreword .............................................................................................................................................................6Acknowledgements...........................................................................................................................................7Abbreviations .....................................................................................................................................................8Executive Summary ..........................................................................................................................................91. Introduction .................................................................................................................................................12

1.1 Background to the VITAL Project ..............................................................................................................................121.2 Need for the VITAL Project .........................................................................................................................................131.3 Objectives and targets of the VITAL Project.........................................................................................................141.4 Impacts of the VITAL Project......................................................................................................................................141.5 Key actions at end of VITAL Project ......................................................................................................................16

2. VITAL Project model ...................................................................................................................................173. Strand 1 - Identifying and validating a bank of ideas for commercialisation ................................18

3.1 Idea generation process ..............................................................................................................................................183.2 Initial screening process..............................................................................................................................................183.3 Validation and feasibility process ...........................................................................................................................193.4 Repository of validated ideas....................................................................................................................................203.5 Business case development.......................................................................................................................................22

4. Strand 2 - Identifying SMEs and Entrepreneurs with the skills and knowledge to commercially exploit validated ideas....................................................................................................24

4.1 Screening of implementers........................................................................................................................................254.2 Repository of implementers ......................................................................................................................................25

5. Strand 3 - Matchmaking............................................................................................................................266. Technology scouting and transfer ...........................................................................................................277. Strand 4 - Fast tracking route to market through in-company customised support ...................31

7.1 Tailored support, fast tracking to market and development and agreement of commercialisation model .....................................................................................................................317.2 New venture priming capital ...................................................................................................................................357.3 Case examples of VITAL Project model implementation...............................................................................36

8. EazyIce: The formation of a new venture...............................................................................................388.1 Introduction....................................................................................................................................................................388.2 The idea generator .......................................................................................................................................................388.3 Business case development ......................................................................................................................................408.4 The idea implementer.................................................................................................................................................448.5 Matching the idea generator to the idea implementer .................................................................................448.6 The formation of a new company..........................................................................................................................448.7 Fast track to market ....................................................................................................................................................45

8.7.1 Background .............................................................................................................................................................45

contents

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8.7.2 Defining the fast track to market requirements .......................................................................................458.8 Priming capital................................................................................................................................................................478.9 Challenges encountered and lessons learned .....................................................................................................49

9. Shnuggle: Fast tracking a new product concept to market................................................................519.1 Introduction....................................................................................................................................................................519.2 The product ideas .........................................................................................................................................................51

9.2.1 Portable nappy changing station idea ..........................................................................................................519.2.2 Infant monitoring technology idea.................................................................................................................52

9.3 Business case development ......................................................................................................................................529.3.1 Portable nappy changing station idea ...........................................................................................................539.3.2 Infant monitoring technology idea.................................................................................................................53

9.4 The idea implementer .................................................................................................................................................549.5 Matching the idea generator and implementing SME....................................................................................54

9.5.1 Confidentiality agreement .................................................................................................................................549.5.2 Evaluation licence agreement...........................................................................................................................56

9.6 Fast track to market ...................................................................................................................................................569.7 Priming capital ...............................................................................................................................................................57

9.7.1 Compact baby changing kit ...............................................................................................................................579.7.2 Infant monitoring technology ..........................................................................................................................57

9.8 Benefits of participating in the VITAL Project ....................................................................................................5810. Viltra: From scouting technology to developing own technology ................................................60

10.1 Introduction.................................................................................................................................................................6010.2 Company background..............................................................................................................................................6010.3 Reason for participating in the VITAL Project .................................................................................................6010.4 Technology scouting.................................................................................................................................................61

10.4.1 Defining the primary requirement ..............................................................................................................6110.4.2 Drafting a specifications requirement........................................................................................................6110.4.3 Filtering the technology alternatives..........................................................................................................6210.4.4 Evaluating technology alternatives.............................................................................................................6210.4.5 Selecting the preferred technology.............................................................................................................6210.4.6 Technology transfer...........................................................................................................................................63

10.5 Commercialisation of transferred technology ................................................................................................6310.6 Priming capital from VITAL ....................................................................................................................................6310.7 Working with other public institutions..............................................................................................................6410.8 Lessons learned for Viltra ........................................................................................................................................64

11. Gem Plastics: Improving new products through enhanced technologies .....................................6511.1 Introduction.................................................................................................................................................................6511.2 Company background..............................................................................................................................................6611.3 Reason for participating in the VITAL Project .................................................................................................66


11.4 Brainstorming: identifying next-generation opportunities ........................................................................6711.5 Technology scouting .................................................................................................................................................6711.6 Aligning with AIT ........................................................................................................................................................6811.7 Putting a Heads of Agreement in place.............................................................................................................6911.8 Accessing priming capital from VITAL ................................................................................................................69

11.8.1 Market visit............................................................................................................................................................7011.8.2 Customer identification and engagement.................................................................................................7011.8.3 Suitability of the product for new markets...............................................................................................7011.9 Lessons learned .......................................................................................................................................................70

12. Lessons learned on VITAL Project implementation ...........................................................................7112.1 A transferable model of open innovation.........................................................................................................7112.2 Challenges along the way.......................................................................................................................................7112.3 Lessons for teams embarking on similar projects .........................................................................................7112.4 Lessons for potential participants on similar projects.................................................................................72

Appendix...........................................................................................................................................................73The VITAL Project Team..................................................................................................................................75

List of boxes, figures and tablesBox 1: The structure of a licensing agreement................................................................................................................30Figure 1: The VITAL Project model........................................................................................................................................17Figure 2: VITAL SME/entrepreneur database ....................................................................................................................24Figure 3: VITAL’s access to technology transfer and licensing opportunities process.......................................29Figure 4: VITAL’s Fast-track to market process ................................................................................................................32Figure 5: Commercialisation model.....................................................................................................................................34Figure 6: Range of available ice machine products........................................................................................................39Figure 7: Breakdown of global fishing fleet ......................................................................................................................46Table 1: Impacts of the VITAL Project .................................................................................................................................15Table 2: Repository of sample validated ideas ................................................................................................................20Table 3: Contents of a non-disclosure agreement .........................................................................................................55

appendicesBox A1: The stages of a VITAL idea submission to approval for matching............................................................73Table A1: Factors to consider before technology acquisition ....................................................................................74

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Foreword

Growing and developing the indigenous SME baseand creating high quality SMEs with export potentialin the border region is a key economic challenge. Oneof the main methods to address the low levels ofnew knowledge based start-ups is to promote andencourage new venture creation.

The VITAL Project approach of successfully matchinga validated knowledge-based idea with a seasonedentrepreneur or well established SME provides themost efficient and effective way of commercialising abusiness proposition and fast tracking the route tomarket. This approach to new business creationmakes the VITAL initiative a novel and innovativeproject aimed directly at meeting the economicchallenges and needs of the eligible areas in terms ofknowledge based start-ups, providing newcommercial opportunities for existing SMEs andcreating employment opportunities as well asreducing the risk associated with new venture start-ups.

This casebook documents four case studies whichprovide insights into how the project implementednew products, technologies and commercialisationpathways for the entrepreneurs and companiesinvolved. It provides a transferable model of bestpractice for the development and implementation ofa unique and innovative open innovation model fornew venture creation.

The €2.56 million VITAL Programme is funded by theEuropean Union’s Regional Development Fundthrough the EU INTERREG IVA Cross-BorderProgramme for Northern Ireland, the Border Regionof Ireland and Western Scotland with match fundingprovided by the accountable departments in Irelandand Northern Ireland. The fund is administered by theSpecial EU Programmes Body. VITAL is a collaborationled by the Regional Development Centre at DundalkInstitute of Technology in partnership with theQueen’s University of Belfast and INVENT, DublinCity University.

I would like to take this opportunity to thank ourproject partners at Queen’s University Belfast andDublin City University and to all the project teamwho worked so diligently and relentlessly tosuccessfully implement such a challenging butexciting and ground-breaking initiative.

Denis Cummins President Dundalk Institute of Technology


Acknowledgements

The VITAL Project Partnership extends itsappreciation to all idea generators, experiencedentrepreneurs and small and medium-sizedenterprises that participated in the project. Inparticular, VITAL would like to acknowledge thecontributions of the managing directors of the fourcompanies who agreed for their companies to beused as cases for the benefit of other SMEs. They are:Maura Burke (Gem Plastics), Colm Gribben (Viltra),Adam Murphy (Shnuggle), and Dermot Short(EazyIce).

The following companies provided different servicesin the course of implementing the VITAL Project teamand are duly acknowledged.

Business Case Development ServicesTeam BDS LtdRoss Boyd Ltd

Fast Track To Market Support ServicesTeam BDS Ltd

Technology Scouting and Implementation SupportServicesTeam BDS Ltd

Provision of Prior Art Assessment,Protectionability, Validity and Right to Use ServicesTomkins & Co.

Provision of Procurement Support ServicesAchilles Procurement Services

Provision of Technology Innovation AssessmentServicesHelix Innovation Partnership LtdTechnology From IdeasEunomia Research & Consulting LimitedLynch Technical and Innovation Services Ltd

VITAL Concept Development and Product DesignServicesBigsmall Design Ltd

Acknowledgements also go to the VITAL ProjectManagers, Sinead Cahill and Richard Walker, Queen’sUniversity Belfast, Tommy Ruane, Invent, Dublin CityUniversity, Frances Quinn, VITAL Market ResearchExecutive and Bráinín Cox, VITAL ProjectAdministrator, Regional Development Centre, DundalkInstitute of Technology. Special thanks go to KieranFegan, VITAL Project Director for his contribution andsupport throughout the writing of the casebook.

Final thanks go to the members of the VITALManagement Committee for providing the leadershipthat has successfully steered the programme since itsinception. The members are Irene McCausland(chairperson), Dundalk Institute of Technology, PaulDonachy, Queen’s University Belfast, Maria Johnstonand Richard Stokes, Dublin City University.

Funding for the VITAL Casebook has been provided bythe EU INTERREG IVA Programme administered bythe Special EU Programmes Body with match fundingprovided by the accountable departments in Irelandand Northern Ireland.

Acknowledgements

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Abbreviations

AIT Athlone Institute of TechnologyCRM Customer Relationship ManagementCE Conformité EuropéenneDCU Dublin City University DkIT Dundalk Institute of TechnologyEI Enterprise IrelandERDF European Regional Development FundEU European UnionEVOH Ethylene Vinyl AlcoholFAO Food and Agriculture Organization of the United NationsGem Gem Plastics LtdHDPE High Density PolyethyleneHOA Heads of AgreementINTERREG Inter-regionalIP Intellectual PropertyIPP Innovation Partnership ProgrammeITC International Trade CentreLEO Local Enterprise OfficeLPG Liquefied Petroleum GasMD Managing DirectorNDA Non-Disclosure AgreementPET Polyethylene TerephthalateQUB Queen’s University Belfast R&D Research and DevelopmentSEUPB Special EU Programmes BodySME Small and Medium-sized EnterpriseVITAL Valorisation of Ideas through Accelerated LinkagesWIPO World Intellectual Property Organization

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ExecutiveSummary

Executive SummaryThe purpose of the casebook is to outline the contents of the VITAL Project and its implementation in fourparticipating companies. The VITAL Project is a unique approach with the aim of promoting regional economicgrowth and development within the six border counties of the Republic of Ireland and Northern Ireland(excluding Greater Belfast). This is achieved by creating new ventures through the matching of validatedknowledge-based ideas with experienced entrepreneurs and Small and Medium-sized Enterprises (SMEs) andto fast-tracking to market. It distinguishes between the source and implementation of the idea. The VITALProject also involves scouting technology for SMEs. It recognises that not all SMEs qualify for state supportedResearch and Development (R&D) schemes and acknowledges that time constraints within SMEs can result ina lack of focus on developing products or exploiting new markets. Fast-tracking the implementation of thevalidated idea or technology to market is made possible through provision of a customised range of supports,including priming capital where applicable.

The project is implemented in four strands as follows: (1) identifying and validating a bank of ideas forcommercialisation; (2) identifying SMEs and entrepreneurs with the skills and knowledge to commerciallyexploit those ideas; (3) matching the right idea (including access to technology transfer and licensingopportunities) to the right entrepreneur or SME, and (4) fast tracking the route-to-market throughcustomised support (such as in-company mentoring, consultancy, access-to-market knowledge) and primingcapital.

In identifying and validating a bank of commercialisable ideas, the ideas undergo both coarse and detailedevaluations followed by the development of business cases to ensure technical, market and financialfeasibility. Some of these ideas are subsequently matched to seasoned entrepreneurs and SMEs. Alternatively,technology is scouted for SMEs requiring such support. VITAL provides the matched ideas and scoutedtechnologies with tailored business support and priming capital to agree and execute a commercialisationmodel. The rest of the ideas in the repository are made available for future potential matching andcommercialisation.

The technology scouting initiative is undertaken in three stages: (1) an assessment of the SME to uncover apotential gap that can be filled with the right technology or product solution; (2) utilising VITAL’s extensivenetwork of innovation sources to identify the best solution and providing expertise to guide the process ofnew technology acquisition or licensing and (3) structuring the SME’s team to develop and deliver the fulltechnology/ knowledge transfer including assistance with licensing and initial commercialisation process.

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Four VITAL Project implementers reported in the casebook are involved in the following two idea matches(EazyIce - new venture resulting from matching an idea generator and entrepreneur and Shnuggle - a newproduct introduction resulting from matching two idea generators to an SME) and two technology scoutinginitiatives (Viltra – technology transfer and Gem Plastics - licensing).

EazyIce is a new cross-border venture with a registered location in Drogheda. The company was formed as aresult of the participation of an idea generator called John White based in Kilkeel and an entrepreneur tomanufacture and sell ice making technology to the fishing and fish processing industries. The EazyIce businessplan is to expand sales in the fishing industry to other countries in Europe, especially the UK, and also provideice-making machines to other industries where ice is used as part of the manufacturing process, specificallybaking, meat processing and pet food manufacture. EazyIce plans to focus initially on marketing and sales ofthe existing ice machines from John but as sales volume increases, it will establish its own manufacturingcapability as the capacity of the existing idea generator’s workshop is exceeded. When the company’smanufacturing capability is put in place, the existing workshop will be used for research and development onnew equipment designs and other applications for ice manufacture. Customised support to fast track the icemaking technology to market include: determining the market size and appropriate route to market forappropriate sectors; establishing a service and support model applicable to Ireland and the UK to supportsales development; establishing a process to identify international distributors by establishing a commissionstructure; identifying appropriate trade fairs and potential distributors and customers to meet at these eventsand developing a process for targeting the fish processing sector and other sectors.

Shnuggle is a family-run company based in Newtownards. The company is involved in the design andmanufacture of clever baby products that make life easier for modern parents. VITAL successfully matchedShnuggle with two ideas after developing business cases: a portable nappy changing station and a wearableinfant monitoring technology. VITAL is subsequently assisting Shnuggle with business advice and primingcapital to fast track the commercialisation process of the two product ideas. The company has also accessedpriming capital to assist in fast tracking the development of the portable nappy changing station and infantmonitoring technology for market introductions. As part of facilitating the fast track of the emerging productsto market, VITAL is assisting in the areas of market research and access to the USA market for the Shnugglebrand.

Viltra, a company based in Newry, provides wastewater treatment solutions to both the commercial anddomestic markets and plans on further developments by entering export markets with a revamped productrange as well as certifying a new product specifically for export. France has been identified as the major targetarea the company plans to mirror its domestic success through certifying/ developing the new range ofproducts including non-electric systems and getting them ready for the French holiday homes market.

IDEAS CONNECTED TO BUSINESS | EXECUTIVE SUMMARY 11

Therefore the company was aware of a need but lacked the internal resources to investigate all thetechnologies out there that could be licensed appropriately. The VITAL Project was therefore aimed at scoutingnon-electric technology and providing assistance in fast-tracking the resulting product to market.

Gem Plastics, a Cavan-based plastic containers manufacturing company, participated in the VITAL Projectwithout a defined technology requirement and a brainstorming session was undertaken to identifytechnology transfer opportunities to create competitive advantage. The requirements included a compositematerial to make the overall costs of production cheaper while improving the impact strength of the product.VITAL undertook technology scouting and research on behalf of Gem Plastics leading to the evaluation ofresponses. This included a company that has developed a coating capability that could be suitable for theGem products. Another EEN opportunity that emerged was a widely-licensed barrier additive blended withHDPE for blow moulding applications. This brought the added opportunity for Gem to move into otherproduct applications such as pharmaceuticals. An additional opportunity from EEN was an innovativeultraviolet curing of non-metallic LPG containers with distinct advantages as opposed to thermal curing.However, the outcome of the research undertaken and the reviews of available technologies revealed therewas no off-the-shelf technology that is available for immediate use by Gem with regards to resourceallocation and organisational size. This led to an innovation partnership with AIT researchers to undertake thefollowing: (1) identifying and sourcing potential nanomaterials, (2) performing polymer compounding trialsand (3) performing cost-benefit analysis. A Heads of Agreement has been signed by both parties providingthe programme results, associated IP, related formulation recipes and know-how to Gem upon successfulcompletion.

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Introduction

1. IntroductionThis casebook reports on the implementation of theEU-funded INTERREG IVA VITAL Project aimed atpromoting regional economic growth anddevelopment by creating new ventures throughmatching validated knowledge-based ideas andtechnologies with experienced entrepreneurs andSMEs and fast tracking to market.

For the purpose of this project, a new venture refersto any of the following: new business start, licence,joint venture, new product, process or service withinSMEs. VITAL is implemented through a four- strandedapproach as follows:

Strand 1: Identifying and validating a bank of ideasfor commercialisation. It consists of a collection ofideas that are capable of generating commercialopportunities from a range of sources and areidentified as Idea Generators.

Strand 2: Identifying SMEs and entrepreneurs withthe skills and knowledge to commercially exploitthose ideas. This comprises SMEs andentrepreneurs who are collectively identified asIdea Implementers.

Strand 3: Matching the right idea (including accessto technology transfer and licensing opportunities)to the right entrepreneur or SME.

Strand 4:Fast tracking the route-to-market throughcustomised support (such as in-companymentoring, consultancy, access-to-marketknowledge) and priming capital.

In addition to the focus on how the four strands areimplemented, the report also contains four successfulVITAL matches. One case is involved in a newcompany formation and new product introductionwhile the other two cases are involved in technologytransfers. The cases report on opportunityrecognition, engagement with VITAL on pursuing thesourced idea or scouted technology tocommercialisation and any lessons learned for theparticipating case companies. Lessons learned andlegacies from the overall VITAL Project conclude thecasebook.

1.1 Background to the VITAL ProjectThe European Union’s Cross-border Programme forTerritorial Co-operation for Northern Ireland and theBorder Region of Ireland - INTERREG IVA Programmeis managed by the Special EU Programmes Body(SEUPB). It is a programme which aims to promotegreater territorial cohesion by encouraging strategicprogramme co-operation for a more prosperous andsustainable region. The Programme’s priorities andareas of intervention are as follows:• Priority 1: Co-operation for a more prosperous

border region (focusing on enterprise and tourism),• Priority 2: Co-operation for a sustainable

programme region (focusing on collaboration andinfrastructure),

• Priority 3: Technical assistance (focusing onprogramme information and publicity, andmanagement, monitoring and evaluation of theprogramme).

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An operational response to the Enterprise focus ofCooperation for a more Prosperous Cross-BorderRegion (Priority 1) is the VITAL Project. This is a €2.56million partnership project led by Dundalk Institute ofTechnology (DkIT) with Dublin City University (DCU)and Queen’s University Belfast (QUB) as partners.

1.2 Need for the VITAL ProjectThe project improves on regional SMEcompetitiveness and addresses infrastructural gaps insupporting potential high-growth SMEs by offeringthe following key distinguishing elements.• It is a unique and innovative approach to new

venture creation through the matching of avalidated knowledge-based idea with an SME orentrepreneur that is best placed to accelerate theroute to market, therefore providing andsafeguarding jobs in the region.

• It distinguishes between the source of thebusiness idea and the SME or entrepreneur whowill commercialise the idea.

• The entrepreneur who will commercialise the ideais experienced, significantly improving the chanceof successful commercialisation.

• It offers SMEs and entrepreneurs access to a poolof validated knowledge-based business ideas toaddress identified market opportunities.

• It provides a customised range of supports thatallow SMEs and entrepreneurs to fast-track newvalidated ideas to market.

• It introduces a priming capital fund to market andtechnically validates ideas early to ensure greatersuccess rates in matching ideas with SMEs orentrepreneurs.

• It provides accelerated market traction for newventures i.e. providing ideas and idea generatorswith optimal routes to market throughcomplementary routes to market within existingSMEs or through seasoned entrepreneurs.

• It offers talented technology SMEs orentrepreneurs a real alternative to the franchisingmodel.

• It makes available the intellectual property ofinventors (sourced locally or through openinnovation), DCU, DkIT and QUB or otheracademic institutes to grow the SME base.

• It leaves a legacy of knowledge and skills for SMEsand entrepreneurs to effectively repeat theprocess following completion of the project.

• It provides business start-up support throughoutthe year with multiple entry points therebyallowing businesses to start in the region at anytime within the VITAL Project cycle.

• It involves multidisciplinary experts with sectoraland market knowledge.

The approach draws upon the skills and expertise ofthe partners and identifies ideas from various sourcesto produce an innovative business in the eligibleregion. In addition to this, the partners can make useof their international networks to ensure that theactivities are all informed by global best practice andto ensure their commercial success. This ensuresmore effective geographical coverage than can beoffered by any of the partners in isolation.

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1.3 Objectives and targets of the VITALProjectThe objectives of the project are:• To develop a best-practice model in indigenous

SME development• To establish, develop and implement a cross-

border network for the stimulation, developmentand commercialisation of strategies for indigenousSME creation and development

• To source and initially screen 400 business ideasexternal to implementing SMEs

• To conduct business cases on 160 qualifiedbusiness skills

• To identify up to 200 potential SMEs andentrepreneurs with skills and knowledge topotentially exploit the business ideas forcommercialisation

• To build 30 partnerships between the businessidea and SME or entrepreneur through a matchingprocess to exploit the business idea or technology

• To identify a commercialisation model for eachbusiness proposition and support the concept inits initial phase of development to include tailoredbusiness supports

• To disseminate the unmatched ideas onlinethrough the project’s website to attract otherpotential implementers.

Ideas are matched with the most suitable SME orentrepreneur to result in a successful venture. TheseSMEs and entrepreneurs are based in the area outsideGreater Belfast in Northern Ireland and the six bordercounties of Republic of Ireland. The overall aim is togenerate new venture in the EU INTERREG eligibleregion. While the assessment of SMEs and

entrepreneurs are those based in the eligible regiononly, ideas are sourced outside the region. In theevent that the promoters do not match an idea withthe SME or entrepreneur in the region over theduration of the project, this is referred but additionalproject resources are not used to pursue that idea.The priority is to match the idea with a SME orentrepreneur in the eligible region, followed by a largecompany in the region, before referral outside of theregion.

1.4 Impacts of the VITAL ProjectThe impact of VITAL is wide with a dynamic longer-term perspective than immediate sales impact.Participating companies are expected to gain aknowledge and understanding of the innovationprocess.

These SMEs/entrepreneurs’ involvement intransferring product concepts from the region’sresearch base to the market place or takinginternationally developed concepts to market shouldbenefit their companies and the local economy. As aresult these companies are much more aware andcapable of undertaking future innovation projects tointroduce further product innovations. A range offurther impacts (most not amenable toquantification in monetary terms) is provided in Table1. Additionally, a further impact of the VITAL Projectis that its cross-border implementation is anticipatedto develop a new form of enterprise support; withnetworks, relationships and experience all in placeand strategically more equipped for future businessand enterprise growth.

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Table 1: Impacts of the VITAL Project

Output Result Impact

Sourcing and identification of knowledge basedbusiness ideas from industry, markets, hostingof sectoral focus groups, database searches,implementation of marketing campaign

Initial bank of over 400 knowledge basedbusiness ideas

Opportunities for new product/process andbusiness concepts for exploitation in theNorthern Ireland and the six southern bordercounties

Identify and engage with 200 SMEs /Entrepreneurs with potential to exploitbusiness opportunities

Initial bank of 200 SMEs/Entrepreneurs Higher ratio of ideas growing to start-ups

Increased Cooperation between business andresearch and development centres

Increased cross-border co-operation

Increases in informal mentoring and exchangeof advice on a cross-border basis

Conduct initial screening of 400 ideas Bank of 400 knowledge based business ideas Business opportunities identified for furtherassessment and validation

Conduct business cases of 160 ideas Qualified and validated bank of 160 knowledgebased business ideas

Qualified business opportunities for SMEs andentrepreneurs

Partner business proposition withSME/Entrepreneur

30 robust knowledge based business ideasmatched to skills of SME/Entrepreneur

30 new products introduced to the market bynewly formed or existing businesses

Implementation of a tailored suite of businesssupports for each new venture

30 tailored supports delivered to each newventure thus fast tracking the route to market

150 jobs created/safeguarded

10% increased sales in supported businesses

Development of a flexible, scalable,transferable business/idea commercialisationmodel

A best practice commercialisation model fornew knowledge based start-ups

Increased numbers of knowledge based start-ups

Increased employment in the region

Increased turnover within participating SMEsand Entrepreneurs

Networking events: 7Information Sessions/ Clinics: 24

360 SMEs/Entrepreneurs attending sessions Increasing the number of cross-border businessnetwork links creating new knowledgepartnerships

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1.5 Key actions at end of VITAL Project The following positive actions will be undertaken at the end of the VITAL Project with the view to embeddinginnovation, knowledge and skills vital to regional economic development.• Definable best practice transferable model of new venture creation based upon:

• Embedding skills• Changing culture• Learning by doing approach.

• Establishing the economic benefit of the project with a view to informing policy and practice.• Mainstream learning from the project into research and teaching in each institution.

No


VITAL Project model

2. VITAL Project modelThe four project strands and their inter-relationships are presented in the VITAL Project model in Figure 1.Screened and validated ideas sourced from various sources and scouted technologies are matched withentrepreneurs/SMEs from a database. Once matching is achieved, business support is given to theimplementing entrepreneur/SME to fast-track the idea to market resulting in a customised commercialisationmodel.

Figure 1: The VITAL Project model

Inventor

Industry

Markets

Third levelsector

Patent databases

Employees/managers

Licensingopportunities

E-Synergy

Internationalopportunities

400 ideas

Initialscreeningprocess

160 ideas

Repository of

validated ideas

Includes businesscase development

and potentialmatching with

project partnersavailable IP

ProjectBoard:match-makingprocess

Onlineportal

Partnershipagreed

Needsassessment

Termination

Validationand

feasibility

Tailored support

Value proposition/commercialisationmodel generated

Commercialisationmodel agreed & executed

Pipeline toexisting

provision by EIand InvestNI

30 new venturescreated

Strand 4: New venture creation &commercialisation

Strand 1: Sourcing business ideas through open innovation

>1000 ideas

No

SME

Seasonedentrepreneur

Employee/managers

ScreeningProcess

Repositoryof Implementors

400implementers

Strand 2: Sourcing of entrepreneurs and SMEs

200implementers

Yes Yes

Strand 3: Matchmaking

Includes one onone mentoring,

consultancy,priming capital,

customer analysisand routes to

market

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Strand 1

3. Strand 1 - Identifying and validating abank of ideas for commercialisationThe VITAL project has generated in excess of 400ideas over a two and half-year period for validationand is implemented as a four-stage process: (1) ideageneration, (2) initial screening, (3) validation andfeasibility and (4) repository of validated ideas. VITALutilises an online customer relationship management(CRM) which is crucial to the management of theprocess. The CRM is used to register and receivepotential submissions from idea generators anddescription of expertise from idea implementers. Foridea implementers, the online application is dividedinto entrepreneurs and SMEs. Once registered,applicants can access their accounts anytime tocomplete applications and follow the status of theirapplications until approval decision and consequentmatching with implementer. (Box A1 in Appendixprovides the stages from submission of an ideathrough screening, approval and matching using theCRM.)

3.1 Idea generation processVITAL utilises open innovation to generate ideas andsource activities.1 The idea generation processincludes the use of idea generation methodologiessuch as brainstorming and sector/ profession-basedfocus and unfocus groups.2 Value Stream Analysis(such as listening to the voice of the market orpotential customer and suppliers, which can provide

inspiration for new products and services andindicate how existing products and services can beimproved upon) is also considered. The VITAL ideageneration process also tracks evolving standards andregulations that can provide new opportunities.

VITAL not only sources ideas from the IP banks of thethree project partners (i.e. DCU, QUB and DkIT) butalso from other higher education institutions,individual inventors and organisations. Suchorganisations include SMEs and entrepreneurs whodo not have the scale or interest in commerciallydeveloping generated ideas. Ideas are also sourcedthrough smart patent searches to determine thosethat can be developed on licence or the white spacebetween patent claims. The idea generation processalso tracks trends in large corporations, considered tobe model innovators in conjunction with trackingoverall industry trends.

3.2 Initial screening processThe generated and sourced ideas pass through aninitial assessment to create 400 coarsely evaluatedideas. This is a pass/fail screening method using achecklist of market suitability, constraints andtechnical possibility. This initial screening determinesa rough order of magnitude of the technical andcommercial assessment and is conducted by VITALProject Managers. The basic criteria for progressingsourced ideas are as follows:

Identifying and validating a bank of ideas for commercialisation

1 One explanation of open innovation focuses on engagement of both the sourcing and internal generation of new ideas andtechnologies to reduce risk, increase the speed to market, leverage scarce resources and learn quickly from peers who are ahead in thedevelopmental path of a product, service or technology. For further reading refer to Chesbrough, H. W. (2003), Open innovation: Thenew imperative for creating and profiting from Technology. Boston, MA: Harvard Business School Press.2 An unfocus group is a qualitative research method where participants being interviewed are from the tails of the normal distributioncurve. The group brings a broad range of opinions and feedback about a product or service.

IDEAS CONNECTED TO BUSINESS | STAND 1 19

1. the idea has to be innovative and preferably be fora knowledge based sector with implementationcapability and expertise available within theeligible region of Northern Ireland or the sixborder counties of Ireland,

2. the idea has to be at pre-prototype stage ofdevelopment, at a minimum, and preferablyprototype plus and capable of commercialisationwithin a 6 - 12 months period, and

3. the business idea has to be capable of creatingand/or sustaining jobs in the eligible region.

3.3 Validation and feasibility process The initial screening results in 400 ideas whichundergo further rigorous detailed screening andassessment validating process. This process funnelsthe ideas to a repository of 160 commerciallyvalidated ideas. The validation of ideas into arepository is conducted by external experts. Theconsultants utilise proven methodologies to assurethe validation of winning ideas which include:n a definition of the resultant

product/process/service and potential businessmodel,

n potential financial investment required, n use and user profile, n market characterisation, n revenue potential, n export potential, n scalability, n sustainable competitive advantage, and n risk contained within the idea and

commercialisation process.

Originality of ideaAs part of the idea validation processing for furtherdevelopment and commercialisation, due diligence iscarried out on the originality of theconcept/prototype in the following areas:

Prior art assessment through patents, design rights orcopyright: An up-to-date overview of the IPlandscape which pertains in a particular technologyor innovation field with specific search results andoutcome analysis including a clear indication ofprevious IP protection activity - whether successfulor expired or otherwise - in the particular fields ofinterest.

Validity and right to use in the domains of patents,design rights, copyright, trademarks and trade dress: A validity search is used as a risk analysis tool wherethere is a concern that a validated idea infringes aparticular patent. The search is used to uncoverissued patents or other prior published art that mayrender the idea partially or completely invalid.

Protection or registration or copyright protection asappropriate: Interpreting search results (including theassessment of whether or not patent protection isavailable, appropriate and beneficial to the VITALidea) in cases of: uncertain data or indications thatthe IP is already in the market place; likelihood ofprotection by secret trade IP, or; prospect of yetunpublished protection application.

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3.4 Repository of validated ideasA database containing 160 validated ideas is developed from the initial coarsely-screened 400 ideas. Some ofthe commercially validated VITAL product opportunities are showcased in Table 2.

Table 2: Repository of sample validated ideas

1. A product opportunity exists for a novel refrigeration unit based on air cycle technology which will give the most benefits in eitherthe food processing world where the combination of chilling and heat is required – OR something like refrigerated transport truckswhere you could effectively run the technology off the trucks diesel engine and it can withstand all the knocks and bumps fromthe road without breaking down.

2. A product opportunity exists which relates to the design, manufacture and sale of a Man Overboard (MoB) boarding product forboats (leisure and trawler) which will offer significant advantages over the standard ladder or step offerings currently on the market.This product can also be used at piers, marinas and harbour side areas.

3. A product opportunity exists which relates to the testing, modification and commercialisation of a portable device to assist anyone,but particularly older people and those suffering an infirmity, be it temporary or permanent, to start a pull cord engine.

4. A product opportunity exists which relates to an effective 100% natural antibacterial fluid for surfaces. It is a new naturalantimicrobial coating that works specifically to eradicate bacteria and cross infection, using non-aggressive, natural ingredients.The coatings work in seconds on contact with bacteria to prevent cross infection.

5. A product opportunity exists which relates to a piece of street furniture allowing for ease and regulation of cycle parking preventingthe cycle from falling over and preventing/deterring theft.

6. A product opportunity exists which relates to a product which will help prevent accidental or malicious slurry spills from above-ground slurry tanks

7. A product opportunity exists which relates to a product which will educate employees at all levels, from the board right throughsenior and mid-level managers, to understand risk management as it applies to their own firm. Enterprise Risk Management (ERM)has arisen as an effective discipline for organisations seeking to achieve satisfactory returns in this era of greater uncertainty. Theidea is to train business executives and employees in ERM via an online business simulation. This helps to embed ERM by breakingdown traditional organisational barriers and silos of operation such that a holistic and systematic approach to risk managementcan be effectively deployed throughout the organisation.

8. A product opportunity exists which relates to a product developed as a series of teaching tools to help the “Can’t Cook, Won’tCook “ aimed at the US, (over 38% can’t cook more than Bean on Toast) to start, however it will translate very easily to all. It isbased on how we think, learn and explore everything about food in the simplest possible way, no recipe has more than 3 steps. Itfocuses especially on cooking and related health issues on a low budget. It is App based, TV friendly and there is also a cook bookwith recipes.

IDEAS CONNECTED TO BUSINESS | STAND 1 21

9. A product opportunity exists which relates to a hi-margin fermented alcohol beverage product with niche export market channelsfocus. Growth potential rising to €2.7 million sales volume at end of Year 5 based on very conservative targets with low level ofcapex at start-up and low levels of ongoing capex as business grows incrementally.

10. A product opportunity exists which relates to the commercialisation of a solar thermal tracking mechanism which will incorporatea patented safety mechanism to prevent overheating in the event of excess solar radiation from the sun. There are a number ofcompetitors in the market, many of whom concentrate on the commercial PV sector. The idea owner hopes that the product canbe licensed to a company or entrepreneur operating in the solar thermal area, an area where less competition is evident. A keyreason a customer would choose to buy this offering would be to attain greater efficiencies, in terms of heat generation from theirthermal solar system. Preliminary tests would indicate that efficiencies of the order of 46% can be expected.

11. An opportunity exists for the manufacture and sale of a “Car Breakdown Assist”; an electro-mechanical device designed to enablebroken down cars to be moved short distances. The aim is to create a device which can be easily used by one person, but whichgives greater control and improved safety aspects over existing products on the market. To move the vehicle, the mechanic attachesthe device to one wheel of the car, then sits in the vehicle and hits the remote control. The vehicle moves forward or reverses at arolling pace while the driver is in full control of the steering. When in its final resting place the remote control is hit again to stopthe car. The overall market for such equipment includes commercial garages, car showrooms, car breakdown assistance organisationssuch as AA, vintage car enthusiasts involved in repairing and upgrading cars in home garages etc.

12. A product opportunity exists for a new type of sink waste fitting which is an innovative alternative to the traditional waste outletfor kitchen sinks. It removes the need to disconnect the waste outlet from the sink and associated plumbing to allow for easycleaning, thereby reducing the build-up of residue that can cause unpleasant smells. A working prototype has been developed bythe inventor and has been tested successfully on a limited scale in a domestic environment. Patents have been granted for UK,Ireland, France, Germany, Turkey, USA and Australia.

13. A product opportunity exists for a design led, attractive, lightweight, retractable barrier with embedded directional LED lights anda completely reflective front surface. The device is man-portable and can be quickly deployed in any situation where the emergencyservices require traffic to be directed away from the scene of an incident.

14. A product opportunity exists for a novel hologram which is sensitive to changes in pressure on its surface. The technology iscurrently licensed out for anti-counterfeit products but has other applications in life science, electronics, or tactile pressure sensing,where changes in the surface can be used to create a sensing reaction.

15. A product opportunity exists for a novel design for a waterproof and shockproof smartphone casing that enables VHF (Very highfrequency) radio functions through a mobile phone. The device is intended to improve the speed of rescue in the case of emergencyon open water, as VHF is an extremely reliable signal which can be easily tracked. It also has application for the offshore oil andgas industry.

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3.5 Business case developmentThe business case provides a comprehensive andextensive assessment for each validated idea with theemphasis on assessing innovation value propositions,price/cost modelling, market positioning, validation,market entry, channels, potential blockages, etc. The assessment is done beyond desk research toanalyse potential market traction, and identify anddetail potential customer profiles.

It identifies the most suitable commercialisationmodel for each business proposition. Each businesscase includes a selection of inputs under some or allof the following headings determined on a case bycase basis.

Handover: Interpretation and confirmation ofsituation assessment, the problem and proposedsolution and potential value proposition inconsultation with VITAL Project Managers.

Establishment of market size with market segmentconsiderations: This aim to provide, as best aspracticable, an accurate market size without exclusivereliance on estimates and extrapolations.

Market attractiveness and competition analysis: Thisconsiders short-term profit, medium and long termprofit potential, growth rate of market, marketopenness, cost of entry, etc. The competition analysisinclude: an assessment of the strengths and

weaknesses of current and potential competitors;consideration to offensive strategic context tomarket entry, and; competitive reactive preparednessincluding associated opportunities and threats. A consideration is given to scenario modelling fordisruptive and displacement innovation offerings.

Customers pricing levels: Price elasticity is assignedto each customer market segment underpinned byproduct value and cost engineering, for each type ofdemand response option, using available informationabout how similar customers have responded toprices afforded by similar demand response options.

Total investment requirements /cost to progress(minimum viable): This considers (where appropriate),the need to establish, plan, license, further develop,create, manufacture, as well as the ability to market,sell, deliver and support. This is underpinned byproduct value and cost engineering considerations.

Product life cycle considerations: This includes lifecycle costing estimates that support a decisionmaker in making a return on investment decision.

Business model: The establishment of a model ofproduct/service development that is disruptive ordriven by any of the following: market, customer,competitor or value proposition (such as the totalcost of ownership model).


Innovation value propositions: This propositionconsiders why a customer in the selected targetmarket should purchase this particular innovation.There is a focus on the key benefits that matter mostto buyers in that target market. The propositionsspecifically document the worth/superiority of theoffering, relative both to competitors and tocustomer needs and effected from the customer’sperspective.

Market positioning: This concerns how the innovationshould be positioned in the mind of the customer. Asmuch as practicable, vague adjectives commonlyused by competitors without differentiating offeringsare avoided (such as stylish, innovative, high-qualityor friendly-customer service).

Blockages: Any likely and potential blockages(including regulatory considerations).

Market entry and channels: A well-executed marketentry and channel strategy focusing onunderstanding the opportunities, drivers andstructures of different markets that ensure valuecapture is shared equitably across any partners in thechain. The channel strategies reflect the keycharacteristics of complex and varied marketenvironments, be they mature or emerging. It alsoensures alignment between resources committed tochannel activities, e.g. key partner relationships,alliances, account management structures and fieldsupport as some of the key components supportingchannel activities.

Price/cost modelling: Establishment of marketdemand / revenue potential based on proposed valueand costed solution by bringing it all together toinform and enable an implementation decision to bemade.

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Strand 2

4. Strand 2 - Identifying SMEs and Entrepreneurs with the skills and knowledge tocommercially exploit validated ideasVITAL Implementers are either high growth SMEs or seasoned entrepreneurs. These implementers areidentified by the VITAL project management team from sources including but not limited to the list in Figure2.

Figure 2: VITAL SME/entrepreneur database

Identifying SMEs and Entrepreneurs with the skills andknowledge to commercially exploit validated ideas

WebsiteEnquiries

LocalEnterpriseOffices/Agencies

OwnNetworks

TradeAssociations

EnterpriseSupport

Programmes/Current & Past

Participants

PromotionalActivities

ProjectPartner

Databases

Chambersof

Commerce

MarketResearch

EI/InvestNIReferrals

Banks &CreditUnions

ProfessionalAdvisors &Mentors

OnlineSocial

Networks

BusinessClub

Networks

SME/Entrepreneurdatabase


4.1 Screening of implementersEach potential VITAL entrepreneur/SME undergoes arigorous two-staged evaluation process. Stage oneincludes the application made by theentrepreneur/SME outlining their initial expression ofinterest, inclusive of references, previous experience,skill-set and education, track record, quality of theteam and availability of relevant resources. Theapplication stage is followed by an interview betweenpotential programme participants and VITAL ProjectManagers.

4.2 Repository of implementersUpon completion of the interview and subsequentapproval, the SME or entrepreneur joins the VITALproject Approved Implementers databases for SMEsor entrepreneurs. Up to 200 potential SMEs andentrepreneurs with skills and knowledge topotentially exploit the business ideas forcommercialisation are sourced to implementmatched ideas or scouted technologies.

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Strand 3

5. Strand 3 - Matchmaking

New Venture EvaluationVITAL matches approved Idea Implementers withvalidated ideas, each being taken on a case by casebasis. The VITAL Project Managers review thepotential match of implementers and validated ideas.

The determination of capability entails analysis ofthe level of prospective implementers’ resourcescurrently available, such as human, financial, selling,and technical as well as their market presence inrelevant niche markets. The use of an iterativeprocess ensures an optimal match occurs betweenideas and entrepreneurs/SMEs.

The VITAL Project Managers reflect on criteria lookingat sector fit, resources match, market channels,financial stability and demonstrated focus andcommitment to the VITAL objectives as follows:

• Sector fit• Resources match: idea’s commercial and technical

needs versus implementer capabilities. • Potential fit (e.g. big idea, small implementer vs.

small idea, big implementer).• Implementer’s openness to negotiating reasonable

commercial terms with the idea owner.• Likely cost of implementation and whether the

investment can be accessed.• Implementer’s availability of appropriate channels

to market in line with the suggested businessmodel in business case

• Requirement for prototyping, Proof of Concept• Degree of market validation already undertaken• Implementer’s receipt of previous innovation

support (from e.g. universities, Institutes ofTechnologies, Regional Colleges, Governmentagencies and other organisations) and anycommercial successes.

• In the case of agency support, the level of supportalready received i.e. de minimus level.

Matchmaking


6. Technology scouting and transferThe VITAL Project also involves scouting technologyfor SMEs. It recognises that not all SMEs qualify forstate supported Research and Development (R&D)schemes and acknowledges that time constraintswithin SMEs can result in the neglect of developingproducts or exploiting new markets. Fast-tracking theimplementation of the validated idea or technologyto market is made possible through provision of acustomised range of supports, including primingcapital where applicable.

The technology scouting initiative is undertaken inthree stages: (1) an assessment of the SME touncover a potential gap that can be filled with theright technology or product solution; (2), utilisingVITAL’s extensive network of innovation sources toidentify the best solution and providing expertise toguide the process of new technology acquisition and;(3) structuring the SME’s team to develop and deliverthe full technology/ knowledge transfer includingassistance with licensing and initialcommercialisation process.

Interested SMEs who require sourced technologysubmit an application form with the following:• Contact details, • Source of learning about the VITAL Project, • Business information

• year of incorporation, nature of the business, • number of employees and • as a minimum, the previous three years of

trading history. • Reasons for applying for the technology scouting

initiative • Identifying new technology need within the

company to aid/achieve superior growth

Selection process of companies requiring technologytransfer Companies are evaluated by the project managementteam in three parts as follows:

6. Technology scouting andtransfer

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Part 1: Company satisfaction of key requirements ofthe VITAL Project:• knowledge based business• location within the eligible VITAL region• company’s size between 10 and 250 people• length of time company has been trading

Part 2: The company’s resources, expertise andtechnology need:• Management team description and key decision

makers• Company’s attitude or appetite for change• Identification of available resource to champion

project

• Other major ongoing projects that can hinderprogress of a VITAL project

• A well-defined technology need• A clearly defined company strategy on what to

achieve with the project• Access to financial resources to invest in

technology transfer• Previous experience in licensing/ technology

transfer and any attributable commercial success• Prior receipt of innovation support from higher

education, government agencies and otherorganisations

• Level of agency support already received (deminimus level during the last three years)

Part 3: selection panel assessment:

Eligibility Criteria

Yes No• Eligible sector • Eligible region• Sales turnover greater than €400,000 per annum• Reasonable financial stability• Trading in International Markets

5 4 3 2 1 0

• Clearly identified technology/product need• Reasonable financial stability• Trading in International Markets• Demonstrated focus and commitment to the VITAL objectives• Resources available to commit to the project

Total ___________


The panel makes a recommendation and successfulcompanies are awarded places which they can thenaccept or reject. In total 22 companies initiallyengaged. There have been 12 matches to date withtwo matches for some companies while scouting isstill ongoing in five companies.

Accessing technology transfer and licensingopportunitiesSMEs selected for technology transfer requirementon the VITAL Project are assisted to scout thetechnology and subsequently implement within eachof the SMEs in five stages: Stage 0, Stage 1, Stage 2,Stage 3 and Stage 4.

Stage 0 – Identify opportunities in products/services,markets and customers: This stage is only carried outwhen it is deemed necessary by VITAL by working onthe following: overall vision and associated strategyto create a turnover matrix of new/existingproducts/services, and new/existingmarkets/customers leading to a gap analysis. This isfollowed by brainstorming and idea evaluationutilising the vision and strategy to establishappropriate rules of engagement. Figure 3 sequencesthe activities from Stage 1 to Stage 4. These arefurther elaborated upon in Table A1 in Appendix.

Figure 3: VITAL’s access to technology transfer and licensing opportunities process

STAGE 1Identify technology

need

Assess companycapability

STAGE 2Scope technology

requirements

STAGE 3Scout technology

market

STAGE 4License & exploit

technology

Technology need &proposed solution

Deliveryconstraints

Requiredtechnology transfer

& contribution

Commercialoutcomes &

available resources

Scope technologyfit

Develop acquisitionbudget

Assign ownership role& success measures

Scope know-how &support

requirements

Produce timelinefor technology

transfer

Search for appropriatetechnology

Develop criticalelements of licence

Support licensing &commercialisation

process

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Stage 1 – Identifying technology need: A capabilityassessment is carried out on the technology-seekingSME in terms of resource capabilities, existingproducts/ technology and potential gaps that can beexploited by using the right technology. Thistechnology need is then defined within the contextof the business to identify the issues that requiresolving and whether a technology transfer will offer apartial or total solution. The constraints to developand deliver the concept such as available resourcesand regulatory requirements are then preparedagainst the commercial outcomes that the sourcedtechnology can deliver.

Stage 2 – Scoping the technology requirements: Thenext step after examining available in-houseresources and commercial impact of sourcing atechnology is to identify scope where this newtechnology fits within the context of the company,region, sector or market. Once this is established, anacquisition budget is developed for search andlicensing purposes while the transfer know-how andsupport requirements are scoped. It is essential todefine the role and identify an individual who canchampion the technology acquisition and todetermine the appropriate success measures. Atimeline is also produced and agreed for thetechnology transfer project.

Stage 3 – Scouting the technology market: Afterscoping the required resources and technology fit,the next step is to search the market for it. Thetechnology market includes third level academicinstitutions (including DCU, DkIT and QUB), researchinstitutes, technology transfer portals, Enterprise

Europe Network, patent office, and brokers. Also, atthis stage, critical elements of the licence aredeveloped, the internal champion assigned andprovided with negotiation training if required.

Stage 4 – Licensing and commercialising thetechnology: The SME is offered support in IPagreement and legal costs to acquire the licence andcommercialise the technology. An illustrative outlineof a licensing agreement dealing with what is beinglicensed and its price and duration to the licensee fora particular purpose as well as the conditions for thelicence is detailed in Box 1.

Box 1: The structure of a licensing agreement

3 Title3 Table of contents3 Identification of parties

and signature3 Recitals3 Definitions; description3 Grant or terms of use

(Extent of rights;limitations)

3 Fees, royalties, minimumannual payments

3 Payment terms3 Diligence requirements3 Reporting schedules3 Records/accounts3 Life of the agreement3 Termination3 Use of trademarks3 Representations and

warranties (limited);disclaimers

3 Intellectual propertyprotection; conduct of

prosecution3 Marking; export control3 Applicable law; choice

of jurisdiction;arbitration/mediation

3 Infringement; right tosue

3 Indemnity; liability;insurance

3 Notices3 Assignment3 Waiver3 Failure to perform3 Confidentiality/secrecy3 Miscellaneous: force

majeure, maintenance,survival on termination,amendments, etc.

3 Closing; signatures, dateand place, date ofeffectiveness

Source: WIPO & ITC, 2005:983

3 WIPO & ITC (2005), Exchanging value - negotiating technology licensing agreements: A training manual. Geneva: WIPO. Available atwww.wipo.int/export/sites/www/sme/en/documents/pdf/technology_licensing.pdf. Last accessed: 24 March 2015.


7. Strand 4 - Fast tracking route to marketthrough in-company customised supportThis involves both fast-tracking matched validatedideas or transferred-in technology by assisting thecompanies with customised commercialisationmodels that involves the provision of tailored supportsuch as mentors and consultants for businesssupport, enhancing business networks and, in somecases, making available priming capital to facilitatethe rapid commercial development of the product orservice. Priming capital provided funding forperipheral activities such as developing prototype,identifying suitable business models, identifyingcustomers, engaging in market visits or exploring thesuitability of products for new markets.

7.1 Tailored support, fast tracking to market,and development and agreement ofcommercialisation modelThe fast track to market is facilitated by externalexpertise through the entrepreneur/SME needsassessment and subsequent tailored supports thatinclude one-on-one mentoring, consultancy,customer analysis and identification andimplementation of fast routes to market. Thecustomised nature of support leads to different kindsof commercialisation models (bespoke, flexible,scalable and multi/parallel-stage capability) for the30 implementing SMEs/entrepreneurs utilising thesourced ideas or scouted technologies. The

sequencing of the fast track to market provided inFigure 4 begins when a business case is reviewed andthe implementing SME/entrepreneur is matched andengaged. The implementer’s needs are then assessedto establish the support that can be provided and asuitable commercialisation model. Theimplementation plan is consequently developed. Theassistance ends with identifying and initialengagement with customers to generate revenue.

Strand 4Fast tracking route to market through in-company customised support

32 VItal

Figure 4: VITAL’s Fast-track to market process

Business casereview

Identification ofcommercialisation

model

Development ofimplementation

plan

Drive of criticalpath with new

productdevelopment

considerations

Market entry &channel strategy

Engagement withSME/ entrepreneur

Needs assessmentfor required support

Market attractiveness,competition & pricing

Budgets and productlife cycle

considerations

Business model

Innovation valueproposition

Market entry &positioning

Product developmentfinalisation &

productionconsiderations

Likely & potentialobstacles

Implementation ofsales & marketing

plan

Identification &engagement with

customers togenerate revenue

Initial sales

Supply chainconsiderations


Commercialisation model The development of a commercialisation model is apart of the fast track to market for each new venturesupported as part of the tailored supports offered.The customised commercialisation model is animportant element of VITAL and has a significantbearing on the ultimate commercial success or failureof the individual venture. As a result the need forflexible and scalable commercialisation tools andmodels is paramount. In developing VITAL, extensiveresearch was conducted to benchmark internationalcommercialisation models for use in the project (e.g.the Goldsmith model, Rothwell and Zegfeld Model,Andrew and Sirkin model and Australian Institute forCommercialisation (AIC) model).4 The result is a

flexible and scalable model of commercialisationwith seven stages shown in Figure 5. However VITALfocused on the development phase (processes frompre-prototype stage until initial sales followingmarket introduction), as one of three basic criteria forprogressing sourced ideas was for the idea to be atpre-prototype stage of development, at a minimum,and preferably prototype plus and capable ofcommercialisation within a six to twelve-monthperiod. The stages in the commercialisation modelcan be manipulated to reduce, combine or run stagesin tandem. Each stage is followed by a decision gatewhere the terms of the stage (or stages) are fulfilledbefore proceeding to the next stage of the model.

4 See for example Goldsmith, H. R. (1995), A Model for Technology Commercialization, Mid-Continent Regional Technology TransferCentre Affiliate’s Conference, NASA Johnson Space Centre, Houston; Rothwell, R. & Zegfeld W. (1985), Reindustrialization andTechnology, London, Longmans; Andrew, J. & Sirkin A. (2007), Payback: Reaping the Rewards of Innovation, Boston, Harvard BusinessSchool Press; Smith, G. (2002), Commercialisation Progression Model, Brisbane, Australian Institute for Commercialisation.

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Figure 5Commercialisation Model

STAGE 1INVESTIGATION

STAGE 1INVESTIGATION

TECHNICAL ANALYSIS

• Define concept• Confirm critical

assumptions• Survey state of the art• Identify critical barriers• Evaluate applicability• Determine technology

MARKET ASSESSMENTConduct market overview:• Identify pricing

structure• Identify market barriers• Identify risks• Identify distribution

channels• Identify trends &

competitors

VENTURE ASSESSMENT• Estimate profit

potential• Conduct self, enterprise

& commercialisationassets

• Identify professionalneeds

• Identify capital needs • NABC

STAGE 2FEASIBILITY

TECHNICAL FEASIBILITY

• Develop working model• Test technical features• Assess preliminary

manufacturability• Conduct manufacturing

assessment• Assess safety &

environmental features• Finalise designs

MARKET STUDY• Identify and quantify:• Market size• Customers• Volume• Prices• Distribution• Competitors

ECONOMIC FEASIBILITY• Formulate financial

assumptions• Develop pro forma• Identify seed capital• Form advisory team• NABC

STAGE 3DEVELOPMENT

ENGINEERING PROTOTYPE

• Develop prototype• Identify materials &

processes• Conduct tests• Develop manufacturing

methods

STRATEGIC MARKET PLAN• Identify marketing team• Define target market• Select market channels• Field test

STRATEGIC BUSINESS PLAN• Decide venture or license• Finalise intellectual

property• Identify management

team• Select organisation

structure• Write business plan• NABC

STAGE 4INTRODUCTION

PRE-INTRODUCTIONPROTOTYPE• Develop production

prototype• Determine production

process• Select manufacturing

process• Design field support

system• Demo product

features

MARKET VALIDATION• Establish market

relationships• Conduct limited sales• Analyse sales• Survey customers• Refine marketing

BUSINESS START-UP• Establish business

functions• Hire staff• Execute contracts• Secure 1st stage

financing• NABC

STAGE 5GROWTH

PRODUCTION

• Prepare commercialdesign

• Establish qualitycontrol

• Construct facilities• Conduct full-scale

production• Finalise internal

distribution system

SALES & DISTRIBUTION• Expand distribution• Analyse competitor

response• Assess customer

satisfaction• Assess distribution

satisfaction• Refine product

features

BUSINESS GROWTH• Monitor enterprise

position• Hire & train personnel• Execute contracts• Arrange 2nd and 3rd

stage financing• Institute vision,

mission &management policies

• NABC

STAGE 7MATURITY

PRODUCTION SUPPORT

• Maximise production• Establish after-market

support, repairs & spares• Warranty service• Implement training

programme

MARKET DIVERSIFICATION• Develop market retention• Establish market scan• Identify new markets• Identify new products

BUSINESS MATURITY• Establish SWOT• Invest profits• Monitor product life

cycle• Monitor business trends• Monitor management

technologies• Implement innovations• NABC

STAGE 2FEASIBILITY

STAGE 3DEVELOPMENT

STAGE 4INTRODUCTION

STAGE 5GROWTH

STAGE 6GO TO

LAUNCHGATE1

if no

GATE2

if no

GATE3

if no

GATE4

if no

GATE5

if no

STAGE 7MATURITY

STAGE 1 DEVELOPMENT PHASE COMMERCIAL PHASE

VITAL PROJECT


• Stage 1 contains the following Investigationactions: technical analysis; market assessment;venture assessment

• Stage 2 contains the following Feasibility actions:technical feasibility; market study; economicfeasibility

• Stage 3 contains the following Developmentactions: engineering prototype; strategic marketplan; strategic business plan

• Stage 4 contains the following Introductionactions: pre-production prototype; marketvalidation; business start-up

• Stage 5 contains the following Growth actions:production; sales and distribution; business growth

• Stage 6 is Go to Launch: pre-launch; launch; post-launch evaluation

• Stage 7 contains the following Maturity actions:production support; market diversification;business maturity.

7.2 New venture priming capitalPriming capital is sometimes needed when a businessventure or product development is still in the earlystage. Such a venture is generally at a pre-revenuestage and this capital is required to enable researchand development of a product, service or market sothat technical feasibility can be established, themarket further validated to start generating revenue,and attract the attention of further funding frombanks, business angels and venture capitalists.

Banks and other investors view priming capital as arisk investment and therefore are usually notinterested in providing financial support at this earlystage. They usually want to wait until a business is a

little more mature before making the largerinvestments that typify the early stage financing ofthe venture. It is therefore difficult, if not impossibleto progress a conceptual stage venture withoutpriming capital.

Most entrepreneurs and promoters of conceptualstage ventures cannot access priming capital and thebusiness therefore does not progress. Although thiskind of capital is usually considered risky investment,it is broadly acknowledged that it can reap majorrewards if and when the company becomes a growthenterprise. The VITAL Project provides opportunitiesfor those ideas which have been successfullymatched, and where deemed appropriate, to apply forpriming capital. The VITAL project New VentureEvaluation Committee reviews priming capitalapplications and decides to allocate priming capitalto suitable eligible ventures.

Ventures are selected for the priming capital on thebasis of initial written applications by theSME/entrepreneur, coupled with the outline businessplan developed by the external consultants. Eachapplication is considered on a case by case basis, withthe potential for iterative improvement andresubmission for those unsuccessful. The criteriaconsidered by the project board include:

• Prototype development• Identifying suitable channels to international

markets through exceptional market visits• Assessing the suitability of product/service

offerings for new markets• Identifying suitable business revenue models• Reaching firm conclusions regarding the viability

36 VItal

of the proposed business e.g. sectoral expertiseinput, trade event, etc.

• Customer identification and engagement/visit• Customer trials / surveys / evaluations.

VITAL complements existing offerings from stateagencies. Looking at the example of IntertradeIreland, it can feed into some of its existing offeringsin particular, the Equity Network (All-Island SeedcornInvestor Ready Competition and Business AngelFinance and Networks) and the Innova Programmebut also the Fusion Programme in time, particularlywhen an existing company is being used as theimplementing agent for the VITAL idea.5

The application and decision making processesaround awarding the capital is open and transparent.

7.3 Case examples of VITAL Project modelimplementationThe rest of the report looks at four VITALimplementers that are involved in the following: anew venture resulting from matching an ideagenerator and entrepreneur (EazyIce); new productintroduction resulting from matching an ideagenerator to an SME (Shnuggle); completetechnology acquisition (Viltra), and; exclusivetechnology licensing (Gem Plastics).

5 www.intertradeireland.com/equity, www.intertradeireland.com/innova and www.intertradeireland.com/fusion.


CONNECTING IDEAS TOBUSINESS

The cases of EazyIce andShnuggle

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8.1 IntroductionEazyIce is a new company by John White of Sea Ice (the idea generator) and Dermot Short, an experienced entrepreneur (the idea implementer) to licence, manufacture and sell ice machines to the fishing and fish processing industries outside Ireland and Norway. It was formedas a direct result of their participation in the VITALProject. EazyIce will manufacture and sell themachines under licence from Sea Ice. EazyIce willfocus on establishing a network of distributorsglobally and set up a volume manufacturing facilityto service this demand when it arises. It will alsosupport the distributors by designing solutionstailored to the needs of their marketplace andprovide training on products, installation, service andice-making solutions.

8.2 The idea generatorJohn White is an experienced marine engineer whodeveloped a new concept in ice machine technologyand formed an ice-making machine business in 1989,initially to solve the problem of ice shortage at thelocal fishing harbour. It has since expanded to supplyon-board and harbour ice machines to Irish fishingfleets on both sides of the border and has beenexporting to Norway since 2003. The company doesnot actively promote or sell its products and salescome from word of mouth and a distributor based inNorway. To date, the ice machines have been builtand sold in small volumes by the machine designerfrom his own workshop. John has developed a rangeof ice making technologies based on both freshwaterand seawater input. The range covers both land andon-board vessel use powered by electric andhydraulic means as indicated in Figure 6.

It was through VITAL that I was able to make a connectionwith a partner that was right for me and then having donethat it provided a structure in which to develop thatpartnership. VITAL not only developed the relationshipwith the two parties but is nurturing that relationship andputting structures and project plans in place to take itfrom just a relationship into a company. The primingcapital has given the start-up a shot in the arm to projectit forward quickly, through high speed and performance.EazyIce wouldn’t happen without that.

Dermot Short, Managing Director, EazyIce

8. EazyIce: The formation of anew venture

8. EazyIce: The formation of anew venture


Figure 6: Range of available ice machine products

Highly specialised equipment is not required as a well-equipped engineering workshop with weld, turning andmilling facilities is adequate in addition to special jigs and fixtures.

The target marketThis ice technology is currently aimed primarily at the seafood industry, but has application in aquacultureand other food production areas such as abattoirs and meat processing plants. It also has potential in otheragri-food, clean technology and chemical engineering sectors. The potential market is growing and globallythere are only a small number of major manufacturers mostly concentrating on larger machines or very smallones. The medium industrial range tends to be smaller versions of the much larger machines. Currently, Irelandand Norway are John’s two biggest markets but he also serves the UK, French, Belgian and Australian marketsto a lesser degree. Over the years, John has attracted interest from the Southeast Asian, African and SouthAmerican markets. Exporting to these regions would have required expanding the scale of operations. The ideagenerator joined the VITAL Project to look for a joint venture or to license off some of the business in terms of(1) certain designs for all geographical areas or (2) entire designs for certain geographic areas.

Land Use

LB25 – 2.5t/dLB25W – 2.5t/dLB103 – 1.25t/d

LB101 – 1t/d TE25 – 2.5t/dTE25T (tropical)

TH25 – 2.5t/dTH25T (tropical)TE103 – 1.25t/d

TE25 – 2.5t/dTE25T (tropical)

Electric Hydraulic

SeawaterSeawaterFreshwater

Electric

Boat Use

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ScreeningIn order to pass the first screening stage, the idea hadto satisfy the following: (1) should be able to becommercialised within the duration of the VITAL, (2)the originator had the right to disclose the idea, and(3) should have potential commercial scale tointerest implementers in the six Republic of Irelandborder counties and the area outside Greater Belfast.After passing through the initial stage, it was thensubjected to a more detailed screening exercise underthe following:• Whether it addresses a market need or solves a

problem• Whether there is likely to be a market demand• Whether it fits into a new-to-

company/region/sector/market context• Whether there is potential for competitive

advantage• Whether the stage of development versus the

time to market is acceptable• Whether the level of risk involved is acceptable

Once the idea has satisfied all the six concerns, theidea is progressed by developing a light business case.

8.3 Business case developmentIn developing the business case for the icetechnology idea, consideration is given to the issuesof establishing a market size, competitive analysis,pricing levels, required investments, product life cycle,value proposition, potential and likely blockages,market entry and suggestions to roll out the product.Each of these issues is elaborated upon.

Establishment of a market size with market segmentconsiderationsGlobal consumption of seafood has doubled over thelast 50 years and with the growing world populationit is estimated an additional 42 million tonnes ofseafood will be required by 2030. China produces themost fish, followed by Indonesia, the US, India andPeru. 19 countries each caught over 1 million tonneseach, accounting for 75% of the global catch.6

According to the FAO, in 2012, there were around 4.7million fishing vessels (3.2 million vessels wereconsidered to operate in marine waters and 1.5million vessels in inland waters). 45% of these vesselswere motorised and less than 12m in length.Continental and national breakdowns of tonnage andmotorised vessels under 12m suggests a scope to rollout the idea generator’s product range on a licensebasis across key strategic markets but this requiresfurther assessment on geographical markets todetermine licence territories with some keyconsiderations being the proximity of the market,local labour assessment, communications,competition and service planning.

Market attractiveness and competition analysisThis considers the target market, profitability, marketgrowth rate, and analysis of the competition in thetarget market.

Target market: The primary target is small fishingtrawlers who require ice to properly chill fish while atsea. This is a vast global market which looks atdeveloping countries experiencing industrialisation aswell as those experiencing growth as the company’s

6 FAO (2012): FAO Yearbook - Fishery and Aquaculture Statistics 2012. Available atftp://ftp.fao.org/fi/stat/summary/YB_Overview.pdf. Accessed: 30 March 2015.


two key markets are not within the top 10geographical markets. Outside this primary market,there are opportunities in land-based operations tochill products at remote events or on ongoingcommercial basis.

Profitability: At this early stage of businessassessment, decision is informed by illustrativemodelling considering the cost of development,projected profit analysis and indicative rate of return;the values purposely precluded from this report . Theice machine is already successfully established in thedomestic market and some expenditure is required ofany licensees to modify production facilities andobtain the license. The indicative projections suggestthe business can be profitable at the onset for thelicensee resulting from such factors as the predictedvolumes being achievable with suggested prices andthe ice machines being manufactured, marketed anddistributed by the licensee.

Growth rates of market: In considering the targetmarket, it is projected that in the short to mediumterm, there is significant scope to grow the marketthrough exports as the geographical diversity of mainfish producers with 19 countries producing over amillion tonnes per year. The best route to grow theoverseas market lies in licensing the product toregional operators in due course or through jointventures and the use of regional distributors.

Competition analysis: The ice machines can producefluid ice which is considered better than both flakeice and block ice and can be used for stowed fish incontainers. There are a number of competitors in theindustry who tend to concentrate on larger fishing

vessels leaving the idea generator to carve a nichewithin the market. The strengths of the ice machineidea generator are in the technical abilities in makingproducts that have both freshwater and seawatercapabilities. The core equipment design isrevolutionary in the ice-making industry in that themachines are physically smaller, lighter and use lesspower than competitive machines with the sameoutput. The opportunities are vast considering thelarge range of products across the different ice typesin a geographically diverse market. There is no clearmarket leader and no specialism in small trawlerswhich all play into the hands of an ambitious andtechnically-capable global expansion. The uniqueselling proposition in order to develop product salesacross geographically diverse regions implies thepromoter will need to focus on productdifferentiation within the chosen market sector ofsmall trawlers to build brand awareness. This shouldbe in addition to the present unique sellingproposition of familiarity with customers and aroundthe clock customer service and support.

Pricing the product for customers The product has already established prices dependingon the type of machine but a quick rollout across thediverse geographical areas requires refining the pricemodel; especially in countries such as China andwider Asia where cheap substitutes prevail. The localassembly of these machines to make use of lowlabour costs is seen as an imperative. To establish theprice points across geographies, it is necessary toestablish what products are on offer and how theyare priced in order for the machine price to reflectthe local competition.

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Minimum cost to progress versus total investmentsrequiredThe minimum capital and development cost for ideaimplementer to progress the product is calculatedusing the following inputs:• capital expenditure, • technical specification costs (project management

and product development),• development costs (training and development,

testing and validation, research), • legal and professional costs (due diligence, legal

contracts, IP costs, consultancy fees), • contingency.

As a range of products is already developed and incommercial use, the bulk of the expenditure relate totraining and development, adaptation of the ideaimplementer’s local manufacturing facility, duediligence and legal costs. Without a full business plan,a full market/ customer analysis and certaintyrelating to the level of available investment, a fullyadequate commercial plan is not feasible at thisjuncture in preparation of a light business case beforematching with an idea implementer.

Product life cycle considerationsThe fishing industry will be the main market for theproduct, however, the broader chilled foods sector isa potential market as well as remote events.Developing countries are a market that forms asignificant portion of the global industry and as thesecountries develop, a greater requirement for properconsistency of ice will increase the demand forquality ice machines. As exotic fish have to be caughtfrom distant waters, the need for quality ice becomesa prerogative for fishing trawlers and these ice

machines are anticipated to generate future salesfrom such sources. The various types of licensingarrangements required for rolling out the machines ininternational markets coupled with a focusedmarketing plan to establish the brand in moremarkets should benefit the company in gaining afoothold to make the business sustainable over thelong period. With an attractive margin for licenseeswith a material scope to increase profitability, thescale of the global fishing industry should serve as amagnet to attract potential licensees.

Innovation value propositionThe initial market for the product is in fishingtrawlers requiring on-board ice and there isconsiderable competition in the sector but bytargeting smaller fishing trawlers, the ice machinesthat run electronically or hydraulically producing softice that is the most effective way of chilling fish. Thepromise of an ability to stay at sea for a longerduration because fish is chilled in a uniform mannerfor the entire duration using an ice machine that canoperate using the boat’s engine to drive a hydraulicsystem to minimise cost provides a value propositionthat is innovative.

Likely and potential blockagesLikely and potential blockages that can be mitigatedthrough better specification, market analysis,investment, business planning and technicalarrangement are considered either on the promoter’sside or the market side.Promoter side: Concerns from the promoter side thatrequire assessment stem from the following areas: • general risk associated with deploying a product

into a new market by way of assessing how the


product will be welcomed as well as specificlocalisation issues

• quality of licensee to ensure satisfactory skills setto maintain brand quality

• standardisation of manufacturing to ensure similarstandards across all locations

• keeping up to date with regulatory changes andtaking prompt action to forestall adverse effects

• the length of time to get licensees established andsales generated to include training, manufacturingcapability, sales lead generation, recruitment andsales attainment.

Market side: Concerns on the market side that requireassessment stem from the following issues:• Undertaking ongoing price monitoring to identify

adverse price trending with potential to impactthe demand for ice making machines over time

• Barriers to entry are low with little IP leading to aproliferation of several competitors with a widerange of products so competing on qualitybranding was imperative

• Establishment of a pricing plan based on furtherresearch on geographical basis per product type

• Exploiting the idea generator’s track record ingaining market share in new target markets tocurtail the issue associated with attaining initialsales in markets

• Ensuring that upgrades and design improvementsdo not impede fitting the ice machine into atrawler’s confined spaces due to its frequent usagein chilling on-board fish.

Market entry and channelsThe business case considered the sales channel,strategy to be developed through licenceagreements, collaboration with local fishing groups to

build awareness in the target markets, sales andmarketing (incorporating advertising and promotion,sales pipeline development, business roll out, productdelivery, customer support and customer retention)and business development to develop new saleschannels and product improvement based on thecompetitive landscape.

Suggestions to build a detailed business caseBased on the light business case, the idea that islocally well proven has been deemed suitable for aroll out into international markets based subject tothe following suggestions from VITAL to thepromoter:• The key attributes outlined in the innovation value

proposition could be incorporated in the product ifthey were not already part of the product

• The promoter should give attention to anyregulatory changes impacting on how fish arechilled or stored on-board fishing vessels or on land.

• The promoter should consider how standards aremaintained with licensees in terms ofmanufacturing capacity and local customerrelations

• The promoter considers the prospect ofmanufacturing the products from a centrallocation based on a cost-benefit analysis

• The promoter gathers more detailed informationprojected profitability figures, given that theanticipated figures from the light business casedevelopment may not closely reflect the mostprobable situation

• The promoter considers whether any relatedproducts can be developed to facilitate newmarket development to increase business valueover time

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• The promoter considers all potential blockagesgoing forward with the project.

8.4 The idea implementerDermot Short has a background in mechanicalengineering with significant work experience insemiconductors and mainframe computers and hasbeen the Group Technical Director in charge ofEngineering, Quality and R&D for an Irishmanufacturing SME. He has also been involved in astart-up operation for a US company in financialservices as well as in customer care.

With experience in managing an engineering designdepartment and with particular interest in productdesign, Dermot was looking for a new entrepreneurialproject with technical content that involvedengineering with operational and customer careelements. After expressing interest in the VITAL Projectand the types of ideas he was interested in, somerelated project ideas were communicated to him andhe chose one relating to ice making technology andsubsequently received the light business case alreadydeveloped by a VITAL Project delivery partner with thepermission of the idea owner.

8.5 Matching the idea generator to the ideaimplementerAfter the expression of interest from the ideaimplementer, the VITAL Project Director accompaniedDermot Short to the fishing port of Kilkeel to meetwith John White at his workshop. Mr. White wasbuilding an ice machine at the time and the visitingteam had the chance to go through the details of the

design with him. Regarding competitive products, theice machines were smaller, lighter, more efficient anddurable. Good rapport was quickly developedbetween the idea generator and implementer leadingto several other meetings within a short period toestablish a trusting relationship. These visits by theidea implementer was to learn about how theproduct was designed, the existing customers andtypes, annual volumes sold to fishing trawlers, fishprocessors, fish farmers and other industries leadingto segmentation and analysis of the customer base.

8.6 The formation of a new company

Electric powered machine producing2.5 tonnes per day from sea water.© EazyIce and Sea Ice

It was agreed that the bestway to move forward withthe implementation of thegenerated idea was throughthe formation of a newcompany with both parties(i.e. the idea generator and

idea implementer) as directors. This new company,EazyIce is to serve as the sales and marketing arm ofthe idea generator’s existing company initially.

It has been officially registered in Ireland with theidea implementer serving as the managing director.The idea generator is going to be responsible for R&Dand manufacturing while the sales and marketing isto be undertaken by the idea implementer. EazyIcewill then manufacture and sell the techniology withincreased demand.


8.7 Fast track to market

8.7.1 BackgroundIn undertaking the fast track to market, the companywith the input of VITAL agreed to the developmentand support of the implementation of a sales processto target the fish and fish processing sector. TheEazyIce business plan is to expand sales in the fishingindustry to other countries in Europe, especially theUK, and also provide ice-making technology to otherindustries where ice is used as part of themanufacturing process, specifically baking, meatprocessing and pet food manufacture. EazyIce plansto focus initially on marketing and sales of theexisting ice machines from the idea generator but assales volumes increase it will establish its ownmanufacturing capability as the capacity of theexisting idea generator’s workshop is exceeded. Whenthe company’s manufacturing capability is put inplace the existing workshop will be used for researchand development on new equipment designs andother applications for ice manufacture.

8.7.2 Defining the fast track to market requirementsThe fast track to market builds on the business casedevelopment and focuses on the following areas:• Determining the market size and appropriate

route to market for appropriate sectors• Establishing a service and support model

applicable to Ireland and the UK to support salesdevelopment

• Establishing a process to identify internationaldistributors by establishing a commissionstructure

• Identifying appropriate trade fairs and potentialdistributors and customers to meet at theseevents

• Developing a process for targeting the fishprocessing sector

Determining the market size of trawler basedmachinesFishing industry research in countries across Europedemonstrates the benefit of immediate chilling of thecatch with seawater ice as opposed to harbour-sourced freshwater ice to: (1) reduce the growth ofbacteria, (2) retain fish colour and (3) improve catchquality. Initial research clearly indicates that fishingfleets in a number of countries (EU and non-EU) whohave been using bulk ice, available at the port, arenow adding on-board ice-making facilities to improvethe quality of their fish catch prior to market.

The initial research gathered from FAO also reveals asignificant number of registered trawlers of a sizethat can be potential customers for EazyIce. Theseare in the categories of offshore or polyvalent fleetranging in size from 15m to 30m and pelagic fleetmeasuring more than 30m. While there is arecognised requirement for ice machines on vesselsabove 12m, there is evidence in a number of marketsof vessels below 12 metres also starting to install ice-making equipment. Of the 4.7m vessels worldwide,2.7m are motorized, with approximately 2.1m under12 metres in length. Figure 7 lists a breakdown of theglobal fishing fleet.

Figure 7: Breakdown of global fishing fleet

Contact made with the Central Statistics Office forstatistical data concerning import of ice machinesinto Ireland and 10-year replacement details for icemachines are used to confirm the company’s annualreplacement market within Ireland.

Route to market for trawler-based salesThere is a need to determine the potential forestablishing an agency type relationship withcompanies already selling to trawlers. This involvesarranging meetings with two Irish companies whosell equipment (e.g. hydraulics and hoist equipment,and fishing nets) to trawlers and identifying othercompanies to be approached for similararrangements. This was to learn about how thesecompanies secured international distributors and thetypes of relationships in place to assist in creatingcosting models. A commission model impactingoverall pricing and margins was established to bepresented to potential agents.

Service and support model for Ireland and UKThis involved creating a service costing model basedon installation and one year free servicing andassessing how this is going to impact on pricinglevels. A costed model is also developed to manageongoing servicing via total cost of ownership thatensures competitive advantage through lifetimeservicing. For competitive pricing purposes, similararrangements offered by other companies wereassessed in aiding to create the structure fordelivering the Ireland and UK service model.

Identifying international distributorsThe target listing of countries for distributorarrangement for Year One is prepared and agreedupon. This is followed by establishing a process foridentifying international distributors and their currentancillary products and turnovers. This provides afocus to determine an appropriate commissionstructure for the equipment with distributors. Sampledistributor agreements are then created listing areasthat need to be covered.

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2,500,000

2,000,000

1,500,000

1,000,000

500,00

0

2,009,250

1,587,308

214,320 160,313 187,530148,149

107,160 84,65680,370 63,492 53,580 42,328 26,790 21,164


Targeting fish processing and pet food manufacturingclientsThis involves acquiring a list of all processingcompanies in the island of Ireland and identifying keypoints of contact for each company. Marketinvestigation meetings were planned with twocompanies selling related products to fishing sectorand a further two selling to fish processingcompanies to learn more about both marketspotential in using ice machines.

Trade fairs and exhibitionsThis involves targeting upcoming trade fairs in Europeto: (1) identify potential distributor contactsattending the event to prearrange meetings; (2)select any Irish/UK fishing and processing companieswho are exhibiting for contacts to pre-arrangemeetings, and; (3) showcase ice machines at tradefairs. For example, EazyIce are showcasing two icemachines at the Skipper Expo International Aberdeenin May 2015.

Preparation of Go-to-Market materialWork was carried out on the company logo whilesample testimonials were prepared to secureagreements from existing customers in the trawler andprocessor segments to be used to promote the newcompany. VITAL assisted EazyIce on establishing howto incorporate capital grants from the Irish SeaFisheries Board into the promotional material. A digitalflyer containing the company’s products was alsoprepared using the services of a professional designcompany. It was also necessary to prepare a companypresentation with product slides and the testimonialsin addition to other content that were all compiled tobe put on a website. A Youtube channel has also beenset up to promote the ice making machines.

Pricing agreement between idea generator andEazyIceThe objective of the price agreement is to removeany potential for customers to seek morecompetitive product price by going directly to theidea generator’s company. This is executed by aHeads of Agreement that is to be used in detailingout the terms of the legal contract.

Project grant supportIn order to propel the commercialisation drive of thenew company the idea implementer attended anEnterprise Ireland (EI) seminar on “starting your ownbusiness” to learn about access to EI’s marketresearch information. EazyIce also applied andreceived a grant from the Local Enterprise Office(LEO) to carry out market feasibility study. Thecompany has applied and received priming capitalfrom the VITAL Project by satisfying the followingfunding criteria towards fast-tracking thecommercialisation of the product: product readiness;market readiness; competitive advantage andattractiveness to market, and demonstratedcommitment and ability of team to deliver theproject.

8.8 Priming capitalThe priming capital application from the VITALProject by EazyIce was required to address thefollowing issues to grow the business.

1. Conducting a detailed assessment of customerneeds/competitive product offerings and businessclimate in the target markets – Brazil, Portugal,Spain and the UK such as flake ice or fluid ice,freshwater or seawater ice or a combination whenthe vessel is docked on a river port.

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• Assess customer needs in the target markets- Identify the breakdown of the national fishingfleet – inshore vessels, day boats (<12m) andoffshore vessels- The technical capabilities of the vessels –refrigerated or insulated holds, 3 phase electricalpower, etc. - Factors driving the need for on-board ice-making facilities such as quality of the landedcatch, cost of bulk ice at the harbour, cost oftransporting bulk ice at sea- Identify the land-based support for the fishingindustry and the current ice solutions available- Establish the need for different ice-solutions,volume per day, seawater vs. freshwater, flake iceor fluid ice, physical space for ice-makingfacilities. Innovative solutions for ice delivery topoint of use- Understand the purchasing process for ice-making solutions and who make the purchasingdecisions, e.g. vessel owners, refrigerationcompanies or vessel refitters- Understand the after-sales service requirements– the technical capabilities of the vesseloperators, local service options, harbour facilities- Assess the after-sales service and repair supportoffered by competitors

• Assess competitive offerings in target markets- Availability, cost and quality of bulk ice fromharbour facilities- Existing offerings of on-board ice-makingmachines both imported or locally manufactured- Types of ice solutions offered – flake ice, fluidice, seawater ice, freshwater ice- Market Segmentation – are existingcompetitors tailoring their products to the fishing

industry or offering generic ice-making solutions- Identify each competitor’s market positioningand pricing strategy- Assess each competitor’s sales process anddistribution channel – direct sales, distribution- Assess the after-sales service and repair supportoffered by competitors.

2. Establishing a suitable international distributionchannel model for each of the target markets asper the different requirements in each jurisdiction.The challenge is to source a partner with theappropriate technical skills, a suitable serviceinfrastructure and determine a business revenuemodel that will satisfy both EazyIce and thedistributor. EazyIce plans to conduct a detailedassessment of potential business partners in eachtargeted national market.

3. Opportunities have arisen to partner withpotential distributors in Brazil and Indonesia. Eachmarket has its own unique equipment and processrequirements and will require the development ofa specialised system to satisfy these requirements.The Brazil opportunity has involved the design andinitial testing of a fluid ice delivery system thatcan be fitted to an existing TE25 ice machine. TheBrazilian market in question is currently served bya harbour-based flake ice production facility. TheIndonesian opportunity is based on adapting thehydraulically driven machine for use in thatspecific climate, which has not been done before.The Indonesian fishing fleet mostly does not have3-phase power available on board but the vesselsare quite large in size. They currently use block icefrom a harbour facility that is broken up on board.


The Indonesian partner has visit the productionfacility where a special demonstration of the fullrange of equipment was set up and aninstructional video of the installation, operationand maintenance of the equipment created fortheir use with the fishing community in Indonesia.The opportunity for equipment sales in Indonesiais huge provided the correct technical solution canbe developed to suit the fleet make-up andclimatic conditions. The potential partner hasrequested a machine and EazyIce/SeaIcepersonnel to travel to Indonesia to demonstratethe equipment to the local fishing community andgovernment officials.

Sea water ice machine producing 1.25 tonnes per day © EazyIce and Sea Ice

8.9 Challenges encountered and lessonslearnedThe initial challenge was to establish good rapport inorder to gain trust and access to sensitiveinformation from the idea generator. The importanceof initialling good rapport is summarised by DermotShort in the following way:

If the two people involved don’t like each other, it’sprobably not going to go anywhere, it’s as simple asthat because somebody has to hand over an awfullot of very sensitive information to a stranger atsome stage so that’s a challenge. It was a challengebut it didn’t become an obstacle but that’s veryimportant because of the type of programme thatVITAL is, the idea generator or the idea owner isprobably going to be an individual, it’s not going tobe a large company. It’s going to be some inventor,someone who works like John in a workshop and hasdone so for many years and survives on their ownskills and then suddenly a stranger is coming in,saying, give me all your information and I’m going togo off and do something with it.

He further suggests that it is not easy to put twopeople in a room and walk away from it as someoneneeds to facilitate it and the VITAL Project team did alot of work to ensure a successful match leading to anew venture. Access to funding can also be achallenge as this can delay or significantly affect thesuccess of a new venture.

Although the idea implementer is very experienced inmanaging projects, he admits that when setting up anew company, very basic administrative elementstake longer than would be expected (such as settingup a company bank account). However, the VITALProject’s delivery partner provided structure aroundthe activities required in setting up the venture andfast-tracking the product to market. Mr Short haslearned a lot about a new industry very quickly.Participation in a structured project helps to avoid orovercome potential and actual obstacles.

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Doing market research and finding out where youhave to go to get information on fishing fleets or howmany ice machines there are in Plymouth Harbourwhen you are on your own is a lot more difficult thanwhen you are surrounded by more people.

Dermot Short has also learned that it is very criticalto get a HOA in place and signed early on in theventure when rapport has been achieved and abusiness relationship is in the offing. This is because itsets out the ground rules for engagement betweenthe parties.


9.1 IntroductionShnuggle designs and manufactures clever babyproducts that make life easier for modern parents.VITAL successfully matched Shnuggle with two babyproduct ideas after developing business cases: aportable nappy changing station and a infantmonitoring technology. VITAL is subsequentlyassisting Shnuggle with business advice and primingcapital to fast track the commercialisation process ofthe two products. As part of facilitating the fast trackof the emerging products to market, VITAL isproviding support in the areas of market research andaccess to the USA market for the Shnuggle brand.

9.2 The product ideasThe portable nappy changing station concept hasbeen developed by two UK-based sisters parentingyoung children. The wearable infant monitoringtechnology concept is developed by a trainedproduct design engineer with experience in thebiomedical/clinical sector who is also a father to twinbaby girls.

9.2.1 Portable nappy changing station idea The portable nappy changing station concept is acompact, accessible and innovative baby changing kitdesigned to make it easier for parents to change achild’s nappy outside the home environment. The

product can significantly reduce the mess ofchanging a dirty nappy as public changing tables canbe narrow and get crowded with all the kit required.The idea was submitted at the engineering prototypestage as design work had been completed and theinventors were working on getting a production-ready prototype for manufacture and initial sales.Some of the product’s features are as follows:

• A changing mat that is easy to clean and roll forcompact travel

• A nappy pouch to hold nappies and larger items• Wet wipes compartment where baby wipes are

stored • A nappy bag compartment where baby nappy

bags are stored.

The target market The innovative compact baby changing kit concepthas real market demand from mid to high endconsumer market that seek out attractive andfunctional products to make improve changing babynappies but can also be used in a nursery setting.

We design and manufacture clever baby products that make life easier for modernparents. Vital Project has enabled us to fast track a new product concept to add toour range of clever baby products.

Adam Murphy, Managing Director, Shnuggle

9. Shnuggle: Fast tracking anew product concept to market

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9.2.2 Infant monitoring technology ideaThis idea was conceived as the inventor was doingsome research into Sudden Infant Death Syndromeand products designed to prevent it. Most of thesetry to prevent babies from rolling on to their front, asuspected contributor and monitor by means of asensor pad mattress which the baby will lie on. Butthe inventor felt a more effective product could bedeveloped taking advantage of new developments ine-textiles.

The result is a wearable monitor, a vest with in-builtfabric sensors which will monitor a range of vitalsigns and alarm if any one of the parameters movesoutside the controlled limits. The idea which wassubmitted at a working prototype stage consists of: • The vest with in-built fabric sensors• The monitor unit comprising a small flexi circuit

and the self-charging battery unit. • A smart phone app which allows the user to set

parameters and monitor the vital signs• A wearable alarm for the parent/carer.

The discreet mobilemonitoring babyware is anintelligent and very robustheat and kinetic energyharvesting garment designedto give parents/carers thepeace of mind and helpmonitor babies as they rest.The device has multiplepotential uses throughout

healthcare. It has the potential to monitor all thefollowing if required: electrical and muscularfunctions of the heart; respiration; position and

movement; relative location; drop or fall; impactdetection; pressure; humidity; direction; orientation;body temperature; environmental temperature;environmental carbon monoxide level, and manymore parameters.

Some benefits of the system are that: • it provides more in-depth data on specific

parameters • it is portable and therefore amenable to use

outside the home environment • it eliminates the need for charging • it has a wearable alarm device with the capability

of monitoring multiple babies to reduce the needfor constantly checking on children

• it can identify underlying health problems.

The target marketThe target market for this product is in childcare,mainly for first time parents or parents of childrenwith particular health problems or those at-risk. Theproduct is scalable and the market can grow into theelderly care and vulnerable adult markets. Thewearable technology market is relatively new and willalso allow this product to capitalise on the noveltyfactor.

9.3 Business case developmentWomen are more likely to have children at an olderage as they wait until they are more financiallysecure.7 Advances in medical technologies arecontributing to this pattern.

Financially-secure parents can afford to buy premiumand luxury baby product brands.


VITAL assisted in an initial review to assessing theopportunity with regards to the following: • establishing the market size with market

segmentation considerations• market attractiveness and competition analysis• customer pricing levels• total investment required versus cost to progress• innovation value proposition• likely and potential blockages• market entry and channels• price and cost modelling.

9.3.1 Portable nappy changing station ideaThe development of a business case reveals that amarket opportunity exists and while other solutionsare available, there are no direct comparatives to thisproduct with regards to some features. The product issuitable for use in public areas but can also be usedfor busy families at home. The market researchrevealed a changing bag coordinated with thechanging mat or nappy roll but sold separately andrecommended the design of a changing bag toenable the compact baby changing kit to competewith these other products in the desired market. Thefollowing steps have been recommended:

• Manufacture prototype and secure patent for thedesign

• Secure an implementer to advise on and assist tobring the product to market

• Costings on various materials to meet the requireddesign technique. Consideration should also begiven to minimising costs and thereby maximisegross profit to make for an attractive product forretail outlets.

9.3.2 Infant monitoring technology ideaAn initial business case development reveals the ideais very good but requires further development andtesting prior to commercialisation. Research shows alarge number of competing products in the overallinfant monitoring technology market but only ahandful that can be described as direct competitorsthat use intelligent clothing as a product base. Two ofthe competitive products identified are still in thedevelopment stage, although the companies involvedhave online pre-ordering established. As a vastquantity of baby products including monitors aresold online, this is the preferred route to market,although large volumes of online sales are dependenton product being widely known through productbranding and advertising. The business case has alsodetermined the initial estimate of the fundingrequirements for a market-ready product, includingfinal prototype development, outsourcing ofmanufactured samples and finalising ofmanufacturing partner, testing and certificationincluding CE marking, legal and IP costs. The followingsuggestions have also been made:• The promoter considers the key client benefits of

using such a product and ensures that all are fullyachieved at the end of this development stage.

• The promoter conducts a more detailedassessment of the current competition, payingparticular attention to competitors who are eithertargeting or who may potentially target themarket segment identified.

• The promoter moves quickly to source a suitableout-sourced manufacturer and apparel supplier.Consideration could also be given to whethergarments can be sourced directly from a low costbase and then modified in Ireland or UK.

7 Key Note (2013), Baby Products Market Update 2013. UK: Key Note Publications Ltd

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• The promoter considers the merits of a salespartner, cognisant of their commercial nuance andconsiders what is wanted from such anarrangement.

• The promoter drills into the projected financialfigures (that have been prepared as part of theinitial business case) in an effort to validateand/or challenge the numbers

• The promoter considers any additional featuresthat can be added (differentiators) as part of thetesting phase to ensure that the most relevant upto date product is available at launch.

• The promoter ensures that some potential clientswithin the chosen market sector are included aspart of the testing phase. This will facilitate thegeneration of real and necessary productendorsements.

• The promoter consider all the potential blockages(from both promoter and market sides) identifiedsuch as • the general risk associated with developing,testing and validating a new product• engagement with external service providersbecause of a potential lack of commercialisationexperience with such a product• timing, staffing, sourcing of suitablemanufacturing partner• Establishment of a pricing plan• Attaining initial sales of a new unknown product• Product range required to service potentialmarket.

• The promoter considers all regulatory andinsurance cover issues.

• The promoter considers ancillary products whichcould be sold in conjunction to this product.

9.4 The idea implementerShnuggle Clever Baby Products is a growing familybusiness created in 2009 by Sinead and AdamMurphy in Newtownards, County Down in NorthernIreland. The company makes baby baths and basketsfor stores domestic and other EU countries and arelooking to expand their range of innovative babyproducts.

9.5 Matching the idea generator andimplementing SMEThe VITAL Project team approached Shnuggle as acompany with the expertise to further evaluate theportable nappy changing station and monitorconcepts for potential development andcommercialisation. This involved sending overviewsof the concepts followed by meetings with thedifferent idea generators that confirmed thecompany to be a good match to further develop andcommercialise both products.

9.5.1 Confidentiality agreementOnce Shnuggle showed interest in pursuing bothideas, the company signed two-way Non-DisclosureAgreements (NDA) with the owners of bothinventions. The NDA is an important document forSMEs that intend to commercialise product ideasdeveloped elsewhere. Some aspects of the agreementto be considered when preparing a draft NDA areprovided in Table 3.


Table 3: Contents of a non-disclosure agreement

Purpose of theNDAagreement

Exploration of a business opportunity under which the idea owner and idea evaluator/implementer may disclose its confidential information toeither party, in this example, in relation to the development and commercialisation of a portable nappy changing station or infant monitoringtechnology.

Definition ofconfidentialinformationused in theagreement

This means any technical data or know-how but not limited to research, product plans, products, services, customers, markets, software,developments, source code, inventions, processes, novel methodologies, designs, drawings, engineering specifications, hardware configurationinformation, market data or financial information, which is designated in writing to be confidential or proprietary or if given orally, is confirmed inwriting with fourteen days of disclosure as having been disclosed as confidential or proprietary. These does not include information already in thepublic domain, is known to the receiving party at the time of disclosure, disclosed after written approval of the disclosing party, becomes known tothe receiving party from another source without breach of agreement, disclosure to a third party by the disclosing party without a duty ofconfidentiality, or is independently developed by the receiving party without the benefit of data received from disclosing party, as evidenced by thereceiving party’s written record.

Non-use andnon-disclosureof confidentialinformation

This concerns discloser and receiver not to use the confidential information to third parties except those directors, officers, employees, consultantsand agents who are required to have the information in order to carry out the discussions of the contemplated relationship. And that this excludedindividuals will be made to sign a NDA in content substantially similar to the agreement on hand.

Mandatorydisclosure

In the event that either party or their respective directors, officers, employees, consultants or agents are requested or required by legal process todisclose any of the Confidential Information of the other party, the party required to make such disclosure shall give prompt notice so that theother party may seek a protective order or other appropriate relief. In the event that such protective order is not obtained, the party required tomake such disclosure shall disclose only that portion of the Confidential Information which its counsel advises that it is legally required to disclose.

Return ofmaterials

Materials or documents of which have been furnished by one party to the other will, upon request, be returned within fourteen (14) days,accompanied by all copies of such documentation, after the business relationship has been rejected or concluded.

No licencegranted

Nothing in the agreement is intended to grant any rights to either party under any patent, copyright, trade secret or other intellectual propertyright nor shall the agreement grant either party any rights in or to the other party’s confidential information, except the limited right to review suchconfidential information solely for the purposes of determining whether to enter into the proposed business relationship between the parties.

Term The foregoing commitments of either party in the agreement shall survive any termination of discussions between the parties, and shall continuefor a period of five years from the effective date of agreement.

Miscellaneous The agreement shall be binding upon and for the benefit of the undersigned parties, their successors and assigns, provided that, confidentialinformation of either party may not be assigned without the prior written consent of the disclosing party. Failure to enforce any provision of theagreement shall not constitute a waiver of any term hereof.

Governing lawand jurisdiction

The inventors of the portable nappy changing station are located in the UK, the inventor of the infant monitoring technology is located in theRepublic of Ireland and the idea evaluator is located in the UK. For the product with both parties located in the UK, the agreement shall be governedby and construed and enforced in accordance with the laws of UK and the UK courts shall have exclusive jurisdiction in relation to disputes relatedto the agreement. For the product with the two parties in UK and Ireland, the agreement shall be governed by and construed and enforced inaccordance with the laws of UK/Ireland and the UK/Irish courts shall have jurisdiction for disputes related to the agreement.

Remedies Each party agrees that its obligations hereunder are necessary and reasonable in order to protect the other party and the other party’s business, andexpressly agrees that monetary damages may be inadequate to compensate the other party for any breach by either party of any covenants andobligations set forth herein. Accordingly, each party agrees and acknowledges that any such violation or threatened violation will cause irreparableinjury to the other party and that, in addition to any other remedies that may be available, in law, in equity or otherwise, the other party shall beentitled to seek injunctive relief against the threatened or actual breach of the agreement or the continuation of any such breach.

No obligation Nothing herein shall obligate either party to proceed with any transaction between them, and each party reserves the right, in its sole discretion, toterminate the discussions contemplated by this Agreement concerning the business opportunity.

No warranty All confidential information is provided as it is. Each party makes no warranties, express, implied or otherwise, regarding its accuracy, completenessor performance.

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9.5.2 Evaluation licence agreementFollowing on from the NDAs and follow-ondisclosures, the idea evaluator (Shnuggle) wished toevaluate both the portable nappy changing stationand infant monitoring technology market focusedpotentials. The idea owners granted the ideaevaluator licences to produce, use and evaluate thepatents, registered designs and the idea ownersknow-how for the purpose of performing theevaluation exercise within an agreed period expiringat the end of the VITAL Project. During the evaluationperiod, the idea owners and idea evaluator arerequired to continue negotiations in good faith withregards to finalising mutually acceptable terms with aview to putting in place a formal licence agreement.However, if the parties are unable to agree the termsduring the evaluation period, despite negotiating ingood faith, the agreement terminates by expiry.

The evaluation agreement includes the intention (ineach case) of each of the two parties to engage theservices of a professional adviser before committingto a licence arrangement. Any term or duration of theevaluation agreement can only be altered by mutualagreement when documented and signed by bothparties.

The Shnuggle and the inventors of the two productsare now working on the final contract and get alongvery well. Shnuggle intends to work with the ideagenerators going forward, so they will be involved asthe concepts develop into products. Moreover, bothproducts’ inventors have other ideas in the pipelinethat can be potentially considered for furtherdevelopment and commercialisation.

9.6 Fast track to market Third party design development companies havealready been engaged to start commercialising theportable nappy changing station. Shnuggle hasplanned a market visit to Germany for the biggestEuropean trade show to put the concept in front ofbuyers to generate interest. One of the ideagenerators will also be attending the trade show withthem to talk to potential customers.

Both the portable nappy changing station and infantmonitoring technology are to be introduced to theUS market. VITAL has met with Shnuggle on the newproducts to research the market into detail and getaccess to the US market for the Shnuggle brand aspart of facilitating the fast track of the emergingproducts to market. The company will also attend thekey All Baby & Child (ABC) Kids Expo to be held inOctober in the USA. The main objective and purposeof ABC is to act as a business league that helpsorganise and put on trade shows to be held for thebenefit of juvenile products manufacturers, specialtystore retailers, distributors and manufacturers’representatives of juvenile products.

The market research is therefore viewed as aforerunner to the exposition. The research willidentify the market, channels and also start directcontact with potential customers and distributors.The research area is under six sections each with arequired set of actions to be pursued as follows:

• USA retailers: this work will target getting a list ofkey retailers from both large supermarket chainsand smaller outlets. Specialty outlets and smalleroutlet chains are also to be identified. The size and


scale of all these outlets throughout the USA willbe identified.

• Region within the USA: this will identify themapping out of regional demographics in terms ofchildren and spending patterns.

• Channels to market: this will identify the variousroutes, agents, distributors to market for theproducts and secure indicative margins withalternative options.

• Website review: this involves carrying out a criticalreview of the website and giving directions forenhancement in • product demonstration • sales to the end customer • sales to retailers • managing, securing and controllingagents/distributors.

• Social media activity: this reviews the current levelof activity and generating a plan of inter-relatedactions using social media to enhance sales anddrive customers to the website.

• Marketing strategy: this will provide a view on themarketing strategy through • online sales directly to customers• sales through agents and distributors• sales directly to multiple stores• a consideration to separating the brand togenerate critical views

• Generating meetings and contacts prior to USAtrip• Making direct contact with approved individuals• Initiating meetings either online or directly.

9.7 Priming capitalShnuggle successfully applied for priming capital to

fast track commercialisation of the portable nappychanging station idea. The company also securedanother priming capital to develop a ‘proof ofconcept’ for a infant monitoring technology. Highlevel summaries of both applications are nowprovided.

9.7.1 Compact baby changing kitThe changing kit concept that was matched toShnuggle from the idea generator requiresproduction-ready prototype which include samplingand design, packaging, prototype manufacture and amarket visit to exhibit the product. The conceptrequires specialist textile design input tocommercialise followed by extensive testing ofproduction prototypes. The priming capital isspecifically related to carrying out the following threeactions to fast track the commercialisation process.

• Textile design for manufacture (cutting patterns,specification and sew paths to be designed anddefined, cost of materials, labour and templatesfor prototype development),

• Prototype manufacture including packing andshipping to Ireland and safety testing.

• Market visit with prototypes to present to buyersat the biggest European trade show in Cologne.This is to gain confidence to move to production.

9.7.2 Infant monitoring technologyVITAL priming capital has been accessed for proof-of-concept and involves developing an early stageconcept for a infant monitoring technology to aworking pre-production prototype level that is readyfor testing. The priming capital is going to allow for

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the development of a working prototype to undergoextensive testing leading to production for marketrelease. The breakdown of the development costs areas follows: • Electronics and software development• Garment integration and sensor development

(including enclosure)• Outsourcing a test project to validate the

functionality and reliability at the concept level

9.8 Benefits of participating in the VITALProjectAccording to Shnuggle, participation in the VITALProject has been very straightforward as the VITALproject managers have been very helpful throughoutthe entire process to make sure they are aware of theprocess steps and how to go through each stage.Adam Murphy particularly credits the aspect of thepriming capital to help fast track thecommercialisation of new products as follows:

I think the priming capital, particularly, is very usefulbecause without a big risk to our own company, wewere able to find out if the concept will indeed beviable and get the project to a stage where we canmake a decision. The decision has been to moveforward and productionise the concept. By being ableto develop the concept right through to productionstage and then to be able to take it to a trade showand talk to prospective customers, I think the projecthas been very useful.


TECHNOLOGY SCOUTINGINITIATIVE

The cases of Viltra and GemPlastics

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10.1 IntroductionViltra is a leader in the provision of advancedwastewater treatment solutions to both thecommercial and domestic markets. The companyembraces change and growth through investments inresearch, development and technology transfer. Itplans on further developments by entering exportmarkets with a revamped product range as well ascertifying a new product specifically for export.France has been identified as the major target areathe company plans to mirror its domestic successthrough certifying/developing the new range ofproducts including non-electric systems and gettingthem ready for the French holiday homes market.Therefore the company knew what they needed butlacked the internal resources to investigate all thetechnologies out there that could be licensedappropriately. VITAL Project was therefore aimed atscouting the non-electric technology and assisting infast-tracking the resulting product to market.

10.2 Company backgroundViltra Wastewater Technology (henceforth Viltra) isbased in Newry, County Down in Northern Ireland. Acomprehensive approach from initial consultationand system design through to installation andmaintenance ensures the company’s customers havethe best solution to their wastewater needs. Colm

Gribben founded the company in 2003 as an agentreselling tanks for another company but soon realisedthat in order to grow the company to enhancecompetitiveness, they needed to manufacture theirown tanks.

Viltra/DMT IWOX® Superior being placed in Ireland. © Viltra

10.3 Reason for participating in the VITALProject

We were looking for new technology to manufacturea non-electric system to treat effluent for a largemarket in France.

VITAL gave us access to research capabilities that we justhadn't got in-house. It gave us ready access to a panel ofresearch experts to research the product for us. It provided uswith a fast-track to the market.Colm Gribben, Viltra owner

10. Viltra: From scoutingtechnology to developing owntechnology


Viltra has conducted intensive research into themarket resulting in a business plan to exploitcommercial opportunities in non-electric wastewatertreatment units for the export market, particularly toFrance. Information gathered from the FrenchGovernment has established there are 1.5 to 3million plants to be installed from 2012 to 2022.When broken down yearly, this amounts to anaverage of 120,000 to 180,000 systems. While Viltra’sown range of products has been already certified tobe sold in France within the electric sector, it islimited within its target market due to its inability toupscale. The issue has being addressed by developinga scalable system based on product principles whichis undergoing tests for certification in a facility inGermany.

The non-electric systems are more suitable and tendto be specified for holiday homes; as flow is variedand the need for a constant electrical feed to enablebacterial growth and sustenance is not alwaysavailable. Complementing the option of a low-costmaintenance decision to the home owner is the factthat energy efficient systems attract subsistencefrom the government. This is making it moreattractive for home owners to install such systemsand has afforded Viltra more marketing opportunitiesto manufacture high quality non-electric sewagedisposal and treatment system to enhance itscompetitive advantage in the French market.

10.4 Technology scouting

10.4.1 Defining the primary requirementThis involved a meeting with the company to learnabout the background, its vision and overall project

requirements. Viltra provided an overview of theproject’s applications, markets, functional capabilitiesand competitive environment to serve as the basis toscout the market for technology.

Viltra is specifically looking for a non-electric sewagetreatment unit, particularly for domestic applicationwhere legislation does not permit a dependency onthe electric element for long periods such as holidayhomes, etc. Currently an allowance of externalelectric pumping capability exists but a technologyinvolving total non-electric solution for bothtreatment and pumping would provide a distinctcompetitive advantage. The waste treatment unit, ofplastic or polymer version, had to be capable ofhandling 180-200 litres of fluid per day for ahousehold of six to eight persons. Other featuresprovided by Viltra are as follows:

• Zero energy • Independently tested to BSEN12566-3:2005 and

sized to the British Water Code of practice forflows and loads

• Proven technology with reliable performanceconfirmed with number of installations

• Quiet, odourless operation • Minimal mechanical moving parts• Effluent quality has to be better than 20mg/l

BOD, 30mg/l SS and 20mg/l NH3• Suitable for discharge to ground or watercourse• Low energy pumped discharge option for where

gravity discharge is not possible.

10.4.2 Drafting a specifications requirementThis provided looking at competitive offerings toknow key provisions that exist in the market and how

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these can be improved for competitive advantage.Therefore specifications requirement to be drawn uprequired key competitors’ provisions as the baselineto build additional value in certain targeted areas.VITAL working with its project delivery partnerundertook initial worldwide research into non-electrified filtration systems and subsequentlypresented a draft specification of requirements andissues to Viltra for review.

The research also included cross-searching filedpatents in this area to bring to notice individualpockets of active R&D been undertaken as well ascompetition research so that any targeted solutioncould be clearly linked with a unique valueproposition and competitive advantage. An initial listof 40 solution providers was compiled from acombination of sources such as Enterprise EuropeanNetwork, professional technology scouters andacademic institutions with specialisation inwastewater treatment.

10.4.3 Filtering the technology alternativesThe initial piece of research revealed too manysolutions in the market and a much more thoroughfocused requirement was therefore required to filterout the most prominent products. A professionaltechnology scouting company, selected on the basisof significant experience in the water and wastewater treatment areas, was brought on board toassist in scouting the wastewater technology forViltra. Based on the specifications requirement, thespecialist conducted a detailed research of themarket for technologies, completed selectionsthrough initial screening to create a shortlist forreview by Viltra.

10.4.4 Evaluating technology alternativesAfter a number of months of specificationcompliance checking, liaison clarifications anddiscussions, a priority shortlist of six technologyalternatives (all with zero energy consumption) waspassed on to Viltra for progression. One productutilises a geotextile sand filter made up of 96%recyclable material and manufactured in the USA.This company that manufactures this product has nosuppliers in Europe and ship internationally if thesolution is a one-off product but would consider alicence to manufacture in the case of a sufficientinterest. The five other systems (two from the samecompany) are already present in France eithercoconut husk, sand, zeolite or anaerobic digestivebioreactor as the filtration system. The final systemsuitable for use in the French holiday homes marketuses the bioreactor method which does not requirereplacement filters. The system is fully certified toEN12566-3 and manufactured in Germany withdistributors located in France, Ireland and severalinternational locations. Key persons for thesecompanies have been identified for physicalengagement for licence acquisition for manufacturepossibilities.

10.4.5 Selecting the preferred technologyThe technology scouting process by way of activitiesand physical engagements associated with theresearch and evaluation of alternatives for selectioninformed Viltra of all the best technologies that wereout in the market. However, none of thesealternatives matched up to the company’s specificcriteria of getting a non-electric system with highstandard of effluent and other qualities with theirtanks as those available were all licenced out and had


to develop the product some other way with theassistance of VITAL.

Without an off-the-shelf option and not keen onbeing a reseller, Viltra has set out to develop its owntechnology requirements by transferring in atechnology that it can further develop for new andimproved products.

10.4.6 Technology transferPrior to participation in the VITAL Project, Viltraalready had a license from its Dutch partner DMT.The existing partnership had been such that DMTdeveloped the technology for the IWOX range ofsewage treatment plants for Viltra to manufactureand sell. In the absence of an off-the-shelftechnology resulting from the scouting, the companyentered into a technology transfer negotiation withDMT. This was on the basis of acquiring ownership ofall certification and IP rights for the IWOX® productrange. This permanent transfer gives full exclusivity toViltra to trade the product anywhere in Europe wherethe current certification is relevant or any otherglobal markets. The transfer has been successfullyagreed.

10.5 Commercialisation of transferredtechnologyArmed with exclusive rights to the technology, andwith assistance from VITAL, Viltra is furtherdeveloping it in-house to achieve a very highstandard of effluent quality in a more energyefficient/non-electric environment to complementthe current range to expand the market. France has astrict policy on the types of wastewater treatment

products that can be certified for installation, inaddition to EN specifications. The implication is thatjust a few companies have acquired the certificationto supply products in the market. The key personnelinvolved in developing the project went over toEngland to receive specific training on developing theprototypes. Furthermore, in order to help fast-trackthe non-electric system to market, the companyapplied for VITAL Priming Capital to cover peripheralcosts involved with certification and testing.

10.6 Priming capital from VITALA successful application of Priming Capital allowed fortwo undertakings: costs at trade shows and expensesin France, and; the development of prototypeamendments and initial samples.

The Priming Capital was required to cover costs attrade shows and legal expenses in France as follows:

• Supporting Viltra’s costs at trade shows to get IWOXinto that market. The trips were crucial to get theproducts/brand prepared and to see whatcompetitors are offering. This does not include astand but having a presence to generate a networkfor the current French agent to build on.

The prototype development is one of the bigger costsvital in testing the new technology to enter the Frenchmarket. Funding allows for a more effective pursuit ofthe European/French certification process in Germanywith respect to the following:

• Test-house institute visit in Germany. This trip is tofully understand the certification process and

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requirements for the non-electric systems, i.e.what exact criteria are required for the test.Previously, a few minor issues had developed withan earlier product that was undergoingcertification. Consequently, this consultation visitis to avoid/minimise such occurrences by makingchanges to the product design to directly respondto certification challenges.

• The project also requires slightly modified tanks tobe manufactured at the company’s base inNorthern Ireland. But such prototypes areexpensive due to the unrefined production processbut necessary to make amendments as necessaryand finalise the design for certification.

10.7 Working with other public institutionsThe actual cost for certifying the system on testing isto be funded by Invest Northern Ireland whileInterTrade Ireland through its FUSION Programmehas provided an in-house Process Engineer withexpertise and capability in refining the company’sprocesses and technologies. Mentorship of theProcess Engineer has been provided by a specialistacademic at Dundalk Institute of Technology.

10.8 Lessons learned for ViltraViltra’s owner has shared a number of usefulexperiences on their journey on the VITAL Project.The first is that one needs to properly plan andinvestigate the whole market place because it is notadequate to only rely on in-house knowledge andhome markets. Research should also focus oninternational markets to enhance the company’sabsorptive capacity when developing newtechnologies. Secondly, participation in the VITALProject has opened up a lot of doors to pursue thecompany’s objective of further development as theyhave become confident that there are no off-the-shelf technologies available. It has also given Viltra agreat insight into what products are currentlyavailable on the market place, the offerings ofcompetitors and has allowed for tweaking the designin-house for purpose.


11.1 IntroductionGem Plastics Ltd (hereafter denoted as Gem) is anestablished and successful company manufacturinghigh performance plastic containers for generalpackaging solutions and niche applications from itslocation in Regaskin, Cavan, County Cavan in theRepublic of Ireland. Given the nature of its processesand current product range in low value packagingwhere margins are squeezed, the company hasrecognised the need to focus on new value addedproducts and participated in the VITAL Projectlooking for an opportunity to create competitiveadvantage. Gem initially went through abrainstorming session to generate ideas to see whattypes of potential opportunities might be of interestto them as they had no defined project coming ontoVITAL.

They were looking for an opportunity to createcompetitive advantage and the parameters were tocome up with a composite to make the overall costsof production cheaper while improving the impactstrength of the product. This led to a specificationsrequirement. It was identified that improving theplastic composition of the existing material by wayof it being cheaper and more flexible and havingbetter impact characteristics was of interest. Therewas no obvious off-the-shelf technology availablewithin their specification, time, budgets and licensingrequirements so the most optimum approach was todevelop a solution in partnership with AthloneInstitute of Technology (AIT). AIT is established inpolymer research and hosts the Applied PolymerTechnologies (APT) Gateway.8

VITAL got us very focused on an area of the business thatdoesn’t come up in the daily grind. It brought us into aspace of looking into the future, of looking into thetechnology that is available in our industry. We have a

project running in a location that is an hour up the road butwhich is actually global in its possibility. VITAL got us out of our comfort zone andgot us into this space. We knew where we needed to be but without a project likeVITAL it would have taken us longer to get there because of organisational sizelimitations.

Maura Burke, MD, Gem Plastics

Range of Gem Plastic Products.© Gem Plastics

8 It is part of the Technology Gateway Network, a nationwide resource for industry based in the Institutes of Technologies deliveringsolutions for industrial partners using plastics materials across the medical, composite, recycling and pharmaceutical sectors. APTprovides industry with access to: Pilot and production scale injection moulding, blow moulding, thermoforming, extrusion andcompounding lines; advanced analytical facilities for materials research, testing and troubleshooting, and; design, rapid prototypingand micro-moulding capabilities. For further information visit their website at www.aptireland.ie.

11. Gem Plastics: Improving newproducts through enhancedtechnologies

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A researcher at the institute with particular expertisein resin development was identified and a number ofmeetings were organised with him. The researcheridentified that his team would be capable ofreplacing the resin composition with a morecomposite type. Gem and AIT applied and securedfunding from Enterprise Ireland under the InnovationPartnership Programme to develop the specificpolymer application. Once this has been developed,AIT is going to licence the formulation exclusively toGem. This is currently going through thedevelopment stage, specifically at the prototypetesting stage, to draw out the most ideal formulation.

11.2 Company backgroundGem, an Enterprise Ireland client, was established in1986 and employs 66 people. The companymanufactures a full range of UN-certified blow-moulded high-density polyethylene (HDPE) open-top, l-ring and tight-head containers from sizesranging from five to 220 litres for solids and liquids.In addition, Gem also produces bespoke products thatserve customer needs in the leisure, pharmaceuticaland health and safety markets. Gem is a leadingsupplier of mussel floats to the fish farming industryin Europe. Gem’s research and development activities

are focused oncurrentproduct andprocessoptimisation.

11.3 Reason for participating in the VITALProjectBeing a small manufacturing company, Gem does notgenerally have the resources to look into worldwidetechnological advancements. The VITAL Projectfocused on the area of new technology that could bescouted and become available to Gem tocommercialise. The company requires compliancewith approved materials and processes. Without therequired in-house expertise in R&D, there is noflexibility in trying out new processes, materials andtechnologies.

Relying on tested technologies elsewhere that areavailable for transfer or licensing to improve on thecompany’s products was a very attractive propositiononce the VITAL Project was introduced to thecompany as its strategy is to develop new revenuestreams via new/improved products. The structureVITAL suited the present conditions of Gem andprovided a structured approach to go forward.

The company was not yet clear on any product/technology but wanted to explore in-mould labelling,new materials that imparted strength and barriers orother properties to blow moulding; as the existingblow moulded product suite is low value and the lowvalue to volume ratio makes it difficult tocompetitively transport and export. They were on thelook-out for any company wishing to licence themanufacture of a product that fitted their portfoliobut were very open to look at all possible areas.

Mussel Float © Gem Plastics


11.4 Brainstorming: identifying next-generation opportunitiesThe project started with an introduction of VITAL tothe company with a focus on defining the primaryrequirements. Functional owners and senior managersunderwent training in creativity, innovation,brainstorming and evaluation of ideas ahead of theformalised brainstorming for ideas. Formalisedbrainstorming was a pre-requisite to identifying thebest opportunity for the company to pursue underthe Technology Transfer strand of VITAL. Thebrainstormed results were ranked and formulatedagainst fit with strategy, market need, return oninvestment in two to three years, timeframe tocompletion, associated risk, and whether the productexists elsewhere. This resulted in a priority list ofopportunities for further evaluation in areas such asadditives, product coating, fillers, external chips, newcompressors, labelling, chillers, bunding, directsubstitute material, re-grind minimisation, flashreduction, and carbon footprint reduction. It wasdecided to primarily pursue opportunities incompetitive improvements to the base material interms of current and future applications withconsiderations to include the following: • Improved strength• Reduced weight• Thinner wall thickness• Improved durability• Coating overlay potential for alternative

use/applications• Improved Bio-Degradable/Re-Cycle capability.

25 litre SquareRound Jerrican. © Gem Plastics

Another area of interest was in the flotation devicemarket where the company could build on thesuccess of its mussel float product or in a productwhich utilises blow moulding as a means to encasean assembly.

11.5 Technology scoutingA specification of requirements was drawn up,reviewed and agreed. VITAL’s technology scoutingpartner then set out to carry out further researchinto filler materials and source a solutions provider.Any solution had to be properly checked in terms ofthe characteristics versus the cost of acquisition andmanufacture.

Research informed that there was recent andsignificant progress in the area of adding active fillersto reduce resin costs without compromising productstrength and other characteristics but the associatedachievement costs such as filler costs and mouldchanges could negate the uplift and overall benefits.However, the active filler concept leads to animproved ecological tag and reduced carbonfootprint. Further research was also carried out intothe areas of RFID and laser printing on behalf of Gem.

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In parallel to the technology search, a document wasprepared after discussions with an official of EEN toplace on the network for expressions of interest.Various sources of potential offerings began toemerge such as barrier coating, antistatic and otherproduct technologies. Responses evaluated included acompany that has developed a coating capabilitythat can be suitable for the Gem products and arewilling to engage in discussing licensingopportunities. This coating significantly extends therange of applications into food with antistaticproperties. Careful evaluation by the client revealedthe majority of this antistatic opportunity was inpolyethylene terephthalate space (PET) and notHDPE so Gem is not currently pursuing this coating.

Another EEN opportunity that emerged is a widely-licensed barrier additive from a subsidiary of a verylarge multinational company. The additive blendedwith HDPE for blow moulding applications andneither requires fluorination nor multi-layer ethylenevinyl alcohol (EVOH). This brings the addedopportunity for Gem to move into other productapplications such as pharmaceuticals. The lastopportunity from EEN is an innovative ultravioletcuring of non-metallic LPG containers with distinctadvantages as opposed to thermal curing. There is apossibility for the second and third EEN technologyopportunities to be combined into a new product foruse as new beer barrels, etc.

All three opportunities have been submitted to Gemto review. The research exercise has been a greatlearning experience as it has revealed advances intechnological developments for future projects to beundertaken by Gem.

11.6 Aligning with AITThe outcome of the research undertaken and thereviews of available technologies revealed there is nooff-the-shelf technology that is available forimmediate use by Gem. This led to a number ofdiscussions with academic institutes with polymerspecialisation such as Queens University in Belfastand Athlone Institute of Technology (AIT). Theproximity of AIT and a previous working relationshipin assessing compounds used in extrusion blowmoulding led to further discussions, proposals andevaluations to align Gem with AIT under anEnterprise Ireland Innovation Partnership Programmeto specifically develop a recipe to replaceapproximately six per cent of current fibre materialswith nanomaterial fillers and achieve the resultsrequired in the specification of requirements. Theaddition of nanomaterials is to increase the strengthof materials to allow down-gauging of wall thicknessof parts and reduce resin costs. Although expensive,they are used in small amounts and achieve weightsavings, smaller wall thickness and therefore lesscooling time and faster cycle times.

The discussions involved telephone communicationsand face-to-face meetings with AIT researchers priorto securing funding under the Innovation PartnershipProgramme (for project feasibility study). The projecthas three distinct stages namely: (1) identifying andsourcing potential nanomaterials; (2) performingpolymer compounding trials, and: (3) performingcost-benefit analysis. This programme journey istargeted for completion in July 2015. The first aspectof the Innovation Feasibility Project is to identify andsource materials. The second aspect is to performingpolymer compounding trials once the resin materials


have been identified and sourced, carrying out benchwork, making little injection plaques and testing inthe laboratory. This is followed by blow mouldingtrials in a small blow moulder to scale up.Consistently good results would then lead to trialson-site on the big blow moulders at the Gemmanufacturing plant. The third and final aspect of theproject is costing the different compounding andblow-moulding trials in terms of their benefits toselect the most viable alternative.

11.7 Putting a Heads of Agreement in placeHeads of Agreement (HOD) in relation to replacingthe percentage of current material composition witha compounded nanomaterial resulting in lower resincosts and improved material characteristics andcapabilities was drawn up and signed by both parties.The HOD does not constitute a legally binding orenforceable agreement but is necessary for the twoparties to develop the ‘rules of the game’ for aconfidential and purposeful engagement. The HODrecords the basic terms and conditions under whichthe two partners are to work together to develop andtest the alternative product composition such as thescope of work, duration of the project, project costsand other pertinent terms and conditions. Theresultant developed product including the project’sresults, associated IP, related formulation recipes andknow-how is to be subsequently transferred to Gemunder a licence arrangement.

11.8 Accessing priming capital from VITALGem has applied for VITAL priming capital as thereare a few projects to pursue to improve and expand

products and services. Improved stacking strength ofthe plastic from the partnership with AIT will open upa lot of demand for the company as HDPE plasticsare so widely used across many industries. Similarly,getting antistatic compounds would also open upnew markets for Gem. But of particular interest isimprovement to the blow-moulded mussel floatingdevice (a buoyancy drum) as the company expandsinto new markets. France, a major producer andconsumer of mussels is a very big market and Gem isimproving the float with new attributes to increaseexports to France in a major way. It is anticipatedsome outcomes of the project in Athlone can fuel thedevelopment of characteristics for the mussel floatproject.

210 litre L Ring Drum, © Gem Plastics

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11.8.1 Market visitVITAL priming capital would facilitate the productionof float for industry contacts and attendance at anindustry trade show in France. To prepare for this,Gem is arranging an inward trade show shortly bybringing the industry from France to Ireland to visittest sites.

A market visit to France will establish suitabledistribution and sales channels and source a suitabledistributor for the mussel float in France.

11.8.2 Customer identification and engagementFor an enhanced market entry it is necessary toidentify mussel growers in France and engage with atargeted segment. The engagement is anticipated toallow for the adaptation of the mussel float to theFrench market.

11.8.3 Suitability of the product for new marketsIt is necessary to get an expert with detailedknowledge of the French mussel market andcompeting products as well as leave samples withtargeted companies to assess over an extendedperiod in a real-time environment.

The priming capital covers expenses associated withthe inbound market visit, development of a range ofprototype samples of the floating device andtechnical support relating to expert knowledge of theFrench industry.

11.9 Lessons learnedThe managing director of Gem shares her learningexperiences on the VITAL Project. The first experienceis to have a well-defined project to execute.Participation in VITAL has helped focus the companyon projects. Being too broad at the start poseslogistic constraints and other issues outside the corecompetencies of the company. An important lessonlearned is the value of the right consultant when youembark on a project such as VITAL. The impressiongenerated by the staff on the first meeting with theconsultant can carry on for the duration of theproject. The VITAL Project technology scoutingpartner (consultant) started off the project withtraining in creativity, innovation and formalisedbrainstorming techniques and this key engagementserved to motivate the functional owners and seniormanagers (who were all in attendance) to commit tothe project.

Another valuable lesson is that no matter the numberof external consultants and specialists involved in aproject, the internal team of the company has todrive the project as they are the ultimatebeneficiaries.


12. Lessons learned on VITAL ProjectimplementationThis casebook has been prepared to showcase theactivities and a small sample of the projects matchedthrough the VITAL Project which ran from 2013 to2015. It has provided how an ambitious pilot projectcan be delivered on a cross border basis in aneconomically challenged peripheral region. Thisproject, its activities and achievements demonstratean open innovation model which can be used bygovernments and agencies to deliver a vision forinnovation and knowledge based economicdevelopment in Ireland, North and South andbeyond.

12.1 A transferable model of open innovationThe VITAL project has shown that SMEs that lack theresources to engage in opportunity recognition canaccess ideas and technologies that have beendeveloped elsewhere to commercialise in a relativelyshorter time with the facilitation of business supportthrough public agencies. Matching an idea generatorwith an idea implementer or scouting a technologyfor transferring into an implementing SME and fasttracking the commercialisation of the idea ortechnology to market with an injection of primingcapital and customised business support aretransferable models of innovation and economicdevelopment to both peripheral and core regions.Most participating SMEs/entrepreneurs acknowledgethe importance of the customised business supportand priming capital to fast tracking thecommercialisation process. The Technology Scoutinginitiative within the VITAL Project identified anddelivered suitable technology transfer and licensing

opportunities for its participating SME companies.The technology and IP licensed in each case hasresulted in a new product or product enhancementand will contribute to the top line and grow eachbusiness.

12.2 Challenges along the wayThe VITAL Project was a success and achieved theoutputs outlined in the terms of offer from thefunding agency. There have been some challengesalong the way that are highlighted to prospectiveprogramme implementation. Good technologies andproduct opportunities are not easily identified andthe process of finding a suitable match requiresperseverance, persistence and determination.

Many matches that were almost complete fellthrough with a late night email or a telephone call ona weekend night. Suffice to say the first meetingbetween an idea generator and an idea implementerdid not lead to a match. Most ideas needed to beintroduced to at least four potential implementerswith several meetings before a match was agreed.The VITAL model and the team made provision forthat and ensured that the pipeline of ideas andactivities enabled the project to achieve and indeedexceed on its overall target of 30 matches.

12.3 Lessons for teams embarking on similarprojectsThe management team of similar projects in thefuture should not underestimate the time required toput the following core foundations in place beforethe matching and fast tracking to marketcommences:

12. Lessons learned on VITALProject implementation

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• Criteria and processes• Managing third party intellectual property• Procurements• Branding• Promotional materials• Website with CRM back-end• Trawling for ideas• Participant recruitment• Ideas and participant evaluation.

12.4 Lessons for potential participants onsimilar projectsMany promising ideas and ventures fail because ofthe poor distinction between Idea generator and IdeaImplementer. Many idea generators (inventors) are ofthe view that designing an innovative product is allthat is required for a successful market intake.Thomas Edison’s popular quote of genius is 1%inspiration and 99% perspiration can serve as aguiding pedestal. Successful innovations are thosethat require a lot of follow-on work and the followingare some general observations of participating ideagenerators:• A lack of market validation• A lack of market insights• An underestimation of the time and money

required to develop market-ready prototypes andcommercialisation

• A lack of effective risk management• A lack of realisation of effort required to see a

project through.

But the VITAL Project also revealed that in mostcases, inventors did not overvalue their technology asthey had reasonable expectations. Similarly, SMEsand entrepreneurs did not try to take advantage ofunsuspecting idea owners and a firm and fairapproach was evident with the idea implementers.


ApplicationPersonal details, Business information, Career experience, Application for previous supportDevelopment• Idea type • Idea description• Stage of development • Problem solved• Time frame • Value to customer• Development history • Market detailsIndustry sectors• Agri-food chain • Financial sector• Chemical engineering • FMCG• Cleantech • ICT & software• Cloud & big data • Material• Construction • Material engineering• Customer services • Mechanical engineering• E-creatives • Others (if applicable)• Electrical engineering • Telecoms• Electronic engineering • Waste management & recycling• Energy • Generator involvementGenerator Involvement• Relevant experience • Seeks implementer• Commercialisation involvement • Details/comments• Details of involvementScreeningStage 1 screening• Idea (type, sub-type) • Knowledge-based nature of idea

• Commercialisation of idea within project duration• Scale of potential in attracting implementer from the

eligible area• Right of originator to disclose ideaStage 1 assessment• Status • Requirement of confidentiality agreement• Comments • Requirement of external advice• Requirement of further informationStage 2 screening• Addresses a market need or solves a problem • Potential for competitive advantage• Likelihood of a market demand • Acceptable time-to-market/ stage of development• Fit with new to company/region/sector/market

context• Acceptable level of risk

Stage 2 assessment• Status • Requirement of further information• Comments • UpdatesFinal approvalConsiderations• Business case • Priority level Fast track planImplementer matching

Table A1: Factors to consider before technology acquisition

Appendix

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Table A1: Factors to consider before technology acquisition

Appendix

This provides a background of issues that the SME Implementers involved in the technology scouting initiative need to be awareprior to engaging in potential technology acquisition.

1. Identify technology need: This is achieved through the following three activities:

a. Market Background: Reviewing your company’s growth plan in terms of products and markets is a good starting point in consideringtechnology acquisition. This can involve looking for new opportunities through identifying changing customer needs, new regulationaffecting existing products and new possibilities made available by technical breakthroughs. By analysing your company’s strengths andweaknesses it may become clear that some areas of the company’s operation require attention, that you are operating in a decliningmarket or you have a gap in your product range.

b. Technical Assessment: A review of existing technologies in your company and consideration of their life cycle stage will help determinethe suitability and applicability of technology acquisition as a complement to your current products and services.

c. Specification: The company should then outline a detail specification of the type of technology, product or process it wishes to acquireand the preferred attributes that a prospective partner should have. The more detail contained in the specification the better the chanceof finding the right match. The technology should be defined including the features, performance characteristics, cost and investmentparameters.

2. Search: The company can look for the technology using various tools including databases, networks, online services and universities.

3. Evaluation and Due Diligence: Once the most promising projects have been shortlisted, a detailed evaluation must be undertakencomprising three components:

a. Intellectual Property (IP): The company must find out if the product/process is protected in the target market and what is the strengthof the protection. It may be protected by a patent, copyright, design rights, trade marks or secret know how. This protection is built intothe technology by the licensor and is passed on to the licensee.

b. Technical Evaluation: The company needs to know how well the technology, product or process works and how compatible it will bewith their existing process. This may require the purchase and testing of products, visiting the licensors premises or getting externaltechnical advice.

c. Commercial Evaluation: A normal commercial and financial evaluation should be undertaken looking at the market for products usingthe new technology or process, margins and investment requirements.

4. Negotiation and Contract: The detailed evaluation will give the company the ability to decide how much to pay for access to thetechnology with consideration for the size of the territory on offer and whether the license is exclusive or non-exclusive. Payments areusually in the form of down payments or upfront fees for access to the technology and/or royalties on sales. Royalties are a form of rentalpayment for the use of the technology and are paid after sales have been achieved. Negotiations are done by following a Heads ofAgreement or draft negotiating document which will include:

a. Technology/IP b. Payments c. Accounts

d. Territories e. Improvements f. Duration

g. Exclusivity h. Warranties i. Law

5. Legal advice: This is then obtained to prepare a contract which will be signed by both parties.

6. Implementation: The final stage is transferring and successfully exploiting the new technology. The objective of this is for the company tobecome familiar with the new technology, to gain confidence in its operation and to reach profitability as soon as possible. In thetechnology transfer phase the company obtains written documentation and training. The technology supplier may assist in outlining newequipment which needs to be purchased, with design work, with pilot production and with trouble shooting and ongoing assistance. Ifroyalties are involved it will be in the interest of the licensor to ensure that the license generates sales.


The VITAL Project TeamLead PartnerDundalk Institute of Technology

PartnersQueen’s University, BelfastDublin City University

Management Committee MembersIrene McCausland, Regional Development Centre,Dundalk Institute of TechnologyPaul Donachy, Queen’s University BelfastMaria Johnston, INVENT, Dublin City UniversityRichard Stokes, INVENT, Dublin City University

Advisory Committee MembersAnne Caldwell, Enterprise IrelandJacqueline Canavan, Invest Northern IrelandGrainne Lennon, IntertradeIreland

Project Team MembersKieran Fegan, Regional Development Centre, DundalkInstitute of TechnologyFrances Quinn, Regional Development Centre,Dundalk Institute of TechnologyBráinín Cox, Regional Development Centre, DundalkInstitute of TechnologySinead Cahill, Queen’s University BelfastRichard Walker, Queen’s University BelfastTommy Ruane, INVENT, Dublin City University

The VITAL Project Team

IDEAS CONNECTED TO BUSINESS 76IDEAS CONNECTED TO BUSINESS 1

INTERREG IVA REGIONNorthern Ireland (Excluding Greater Belfast) and theSix Border Counties of Republic of Ireland

June 2015

Matching validated ideas andtechnologies with experiencedentrepreneurs and SMEs

INTERREG IVA REGIONNorthern Ireland (Excluding Greater Belfast) and the Six Border Counties of Republic of Ireland

June 2015

vital case study booklet

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