Innovation & Commercialisation

Revision
Exam format
• Total questions: six (6) for business innovation and commercialisation of your
business project/ Amazon Advertising.

• Exam duration: 120’ in class. It is an open-book exam with ONE sheet (equivalent to
2 full pages) of HANDWRITING note in A4 size with your full name and student ID
written on each sheet. All notes must be handed in when leaving the examination
venue. Please note, photocopied or printed notes are strictly prohibited.

• Each question: 15 - 20 minutes for doing.

Unit learning outcomes for exam

• LO3: Apply the process required to commercialise innovation within an

organisation

• LO4: Evaluate the range of methods for protecting innovation within an

organisation
1. Business Model Canvas
(BMC)
Value proposition sentences might look like these…
For segment X <define segment>, your company name provides x (what
customers are unhappy about today) unlike competitive
(message/positioning – what they don’t solve).

OR We help (X) do (Y) by doing (Z).

2. BMC pivots
pivots are tactical or strategic changes,
not vision or mission changes
Collecting & analyzing
your data
How to start
● Hi, my name is ______________.
● I am researching __________________.
● I recently spoke with _____ who gave me your contact information.
● He/she said you are an expert on __________.
● Would you have 15 minutes that I could ask you a few questions about this?
what to ask

● “Tell me about _____”

● “What part of that is most stressful/ annoying?”
● “What’s the biggest problem or annoyance when it comes to _____ ?”
● “How have you tried to do to address [solve] that?”
● “Is there anything I missed or should have asked you?”
what NOT to say

● “Let me tell you about _____”

● “I know this is really stressful because _____”
● “I have this solution that does this _______”
3. Funding
Types of funding Pros Cons

1. Personal • Only risk your own funds • Risk losing all your
savings • Use the funds as you see fit savings/retirement accounts
• Can take the time to save up • Hard to save enough money to
funds fund a business, so the amount
• Can run a smarter business by is limited
making better decisions on a • Can cause cash flow challenges
tight budget

2. Bootstrapping • Requires the least amount of • May not get paid until the
investment business makes money
• Using credit cards can • Requires “sweat equity” using
potentially provide rewards minimal resources
• May need risky use of credit
cards
Types of funding Pros Cons

3. Bank loans • Ability to get greater amounts of • Must qualify for loan on the
funding than personal savings and business creditworthiness
bootstrapping • Must qualify for loan based
• May be faster funding than on personal creditworthiness
waiting to save up of all spouses, partners,
• Builds credit history members, or stockholders
• Set payment rate • Must pay interest
• No loss of equity in venture • May default loan
• Cash outflow on interest and
principal payments
• Can jeopardize needed cash
for other productive uses
• Potential loss of collateral
• Potential decrease in credit
rating
Types of funding Pros Cons

4. Venture • Potentially large sum of money • Give up ownership/equity

capitalists • Ability to grow quickly • Have to take others’ direction
• Not a loan, so no regular cash • Expectation of payoff
repayment plan • May cause company to grow too
• Access to useful connections and quickly
experience in the industry • May relinquish management control or
decision-making to an unknown person
• Can be squeezed out of own company

5. Angel • Useful investing networks and • Give up ownership

investors experience in the industry • Have to take others’ direction
• Ability to guide you toward • Expectation of payoff
success • May relinquish management control or
• Invest funds in exchange for equity decision-making to an unknown person
and participation in the venture’s • Can be squeezed out of own company
success
• Not a loan
Types of funding Pros Cons

6. Friends and • Can be easier and faster to • Expectations need to be met

family acquire • Risk losing their money
• People believe in your • Usually will raise less funding
idea/skills • May complicate relationship
• Ability to raise from many or • Might be embarrassing
a few • Has tax implications if provided as
• No credit check a gift
• Flexibility for payback

7. Crowdfunding • Ability to raise cash from • Requires significant planning/work

many people • Requires some sort of reward
• Fast • Can be stressful method
• Larger overall sums • Transparency required and may
need to be documented
Types of funding Pros Cons

8. Grants • Range from small to large • May only focus on certain

• May have little competition industries
• May offer training • Difficult to obtain
• Free application • Long process
• Reporting may be required
• Repayment may be required if
specific conditions are not met
• Some conditions of the grant are
outside the control of the
benefactor
4. Intellectual property (IP)
FOUR TYPES OF INTELLECTUAL PROPERTY

Patents Copyright Trade

Trademarks
Secrets
 PATENT

AN INTELLECTUAL PROPERTY RIGHT GRANTED BY THE

GOVERNMENT OF A NATION TO AN INVENTOR THAT GIVES THEM
THE EXCLUSIVE RIGHT TO THE INVENTION FOR UP TO 20 YEARS, IN
EXCHANGE FOR DISCLOSING THE DETAILS OF THE NEW
TECHNOLOGY TO SOCIETY FOR ITS ULTIMATE BENEFIT.
 CRITERIA FOR PATENTING
Novelty
A machine, manufacture, process, or composition of matter must not have been
previously described or known.

Utility
An invention must function as intended.

Non-Obviousness
A patent requirement that ensures that the idea is new.
 COPYRIGHT

An intellectual property right granted by a government to the author of an original

literary, dramatic, musical, artistic, or other eligible creative work.
 COPYRIGHT LAW GRANTS A
HOLDER THE RIGHT TO:
● reproduce the work
● prepare derivative works
● distribute copies of the work to the public
● perform the work publicly
● display the work publicly
● perform sound recordings publicly through a digital audio transmission

For an individual, the term of a copyright is the life of the author plus 70 years.
 TRADEMARK
An intellectual property right granted by a government to an individual, business, or legal
entity that creates and uses a distinctive word, name, symbol, or device to distinguish its
products or services from those from any other entity in the marketplace.
 FUNDAMENTALS OF LICENSING
● Any form of intellectual property – from trademarks to patents to copyrights –
can be licensed to third parties. Through licensing, an IP owner grants third
parties the right to use their IP, while retaining their ownership.
● Creates passive income for the IP owner
● Enables a licensor to tap into local markets, a licensee’s productive capacity or
unique marketing strategy
● Creates new business opportunities for both licensor and licensee
● Enables businesses to enter new markets or industries
 TRADE SECRETS

Require that the intellectual property to be protected not be publicly disclosed.

 l is t
ll e r
t Se
Be s
 For more IP Fundamentals, visit [Link]

The Michelson Institute for Intellectual Property extends special thanks to the Intellectual
Property Owners Education Foundation (IPOEF) for its collaboration in helping us
provide these resources.
This work is licensed under the
Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
5. Open innovation
 OPEN INNOVATION (“THE NEW”)

• Understands that trying to think out-of-the-box is more difficult than having people
think in your box.
• Utilizes external competence and micro-employments.
• Embraces the insight that the best user is the user himself and that personalization is
important.
• It is not about having the best production process any more, it is about being the
most customer oriented and having a more agile and flexible production process.
At first glance, the two concepts (open innovation and IPR protection) seem
irreconcilable. That is, open innovation implies a willingness to allow knowledge
produced within the firm to spill over to others (possibly in with the expectation of
receiving knowledge spillovers from others in return) whereas IPR protections
enable a firm to exclude others from using that knowledge.
OPEN INNOVATION MARKETPLACE

Innovation Marketplace

2. Solution proposals

1. Business problem Innovators

Your organization
GOOD LUCK!