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Demand driven product_innovation_

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Presented at ETECH Entrepreneurship Elective for the MBAs this Easter term on Monday 22nd April and Wednesday 1st May 2013. Centre for Entrepreneurial Learning
Judge Business School – University of Cambridge

Published in: Business
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Demand driven product_innovation_

  1. 1. AlbionDemand Driven Product InnovationWard HillsEntrepreneur in ResidenceCentre for Entrepreneurial LearningJudge Business School – University of Cambridge22 April 2013
  2. 2. Albion21/04/2013 © 2013 Albion Innovations 2
  3. 3. AlbionOutline• Stages of product commercialisation• Structures supporting product development and delivery• Information exchanges• Information capture• Questions in product development diligence• Evaluation of potential products• Bottom line21/04/2013 © 2013 Albion Innovations 3
  4. 4. AlbionStages of Commercialisation21/04/2013AlbionInnovationsTRL1 2 3 4 5 6 7 8 9KeyHurdles•Designrequirements•Marketidentification•Productisation•Businessmodel•Partner•Beta test•Cash control•Manufacturing•Distribution•Communications•ValueperceptionOperations&TeamRequired•Technologist•R&D facilities•IP rights“Freedom toOperate”•Managers•Programmers/Designers•Regulations/QA/QC•Marketing•Manufacturing•Legal•Financial•Customer service•Human resources•Distribution•Investor relations•External marketexperts•PublicCommunicationsFundingRequired“Seed”•<£50-200K•Grants“Angel”•£250-500K•Angel / VC“Early VC”•£500K-5M•Small –Mid VC“Late VC”•£3-20M•Large/FocusedVC“ExitInvestment”•£20-50++M•IPO/ PE/ TradesaleResearch Conceive Prove Demonstrate Validate Beta Regulatory Qualify Shipping4
  5. 5. AlbionCommercialProductDepartmentsCommercial• Customers• Distribution• MarComms• OrdersProduct• Product definition• Regulatory affairs• Clinical trials• Product supportDevelopment• Novel capability• Clinical feasibility• Meeting CustomerneedsDevelopment21/04/2013 © 2013 Albion Innovations 5
  6. 6. AlbionCommercialProductDevelopmentSpecificationsRequirementsInformationDevelopment andCommercial• Functionalityrequirements• Potential capabilityProduct andDevelopment• End userrequirements• Delivering productspecifications.Commercial andProduct• Servicerequests/support• Orders /Manufacturingrelationships.21/04/2013 © 2013 Albion Innovations 6
  7. 7. AlbionInformationRepositoriesOrders & Service• Manufacturingorders• Service requestsand historiesTechnical File• Regulatory• QA/QC• Performancestandards• Manufacturingstandards• Design HistoryFeature Backlog• Visibility ofpotential needs• Populated byanyone withmarket contactCommercialProductDevelopmentTechnicalFile21/04/2013 © 2013 Albion Innovations 7
  8. 8. AlbionProductDevelopmentDiligenceShould we do this?Can we do this?Could we do this?Outcomes:• Product update• New product• No further actionEach department hasa veto.CommercialProductDevelopmentShould?Can?Could?21/04/2013 © 2013 Albion Innovations 8
  9. 9. AlbionCommercialProductDevelopmentNew ProductEvaluationDemand & Price• Potential market• Route to market?Cost & Support• COGS?• Infrastructure?• Regulatoryrequirements?Development Cost• Resources ?• Time?Risk• Competitors?• Uncertainty?• Strategic fit?What is thedemand?At whatprice?Productioncost?Supportrequirements?Developmentcost?Risk?21/04/2013 © 2013 Albion Innovations 9
  10. 10. AlbionCommercialProductDevelopmentProfit andLossTop line Revenue• Demand & Price• Important to acquirerMargin• Production Cost &Support Requirements• Is this a sustainablebusiness?• Contribution togrowth?Return on Investment• Development Cost &Risk• Capital requirements• Payback period• Possible lossRevenueMarginROIWhat is thedemand?At whatprice?Productioncost?Supportrequirements?Developmentcost?Risk?21/04/2013 © 2013 Albion Innovations 10
  11. 11. AlbionSummaryDepartments• Focus• ResponsibilityInformation• Document• ReviewQuestions• Should?• Can?• Could?Process and vetoBottom line resultWard Hillsward@albion-innovations.comwardhills21/04/2013 © 2013 Albion Innovations 11CommercialProductDevelopmentRevenueMarginROIWhat is thedemand?At whatprice?Productioncost?Supportrequirements?Developmentcost?Risk?

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