Commercializing Innovation ENT 5450Class: Wednesdays, 6-9 pm, from 1/15; Room 157: Biotech PlaceInstructor: Peter SheldrakeContact: 336-705-0735 Email: sheldrpf@wfu.edu

Mail c/o Vickie Whapham, Room 346, Farrell Hall, WFU

OverviewOrganisations have long regarded the ability to identify, evaluate and implement innovative ideas as a key competence, and an essential attribute of leaders. This is proving to be even more important at the present, as US companies are facing increased competition from overseas, and a continuing period of economic uncertainty is eating away at the viability of enterprises.

This course will explore the processes that are involved from taking an interesting and innovative idea through to successful commercial or organisational application. It will look at product and process innovation, as well as the increasingly important area of business model innovation. There will be strong emphasis on practical application, group work and learning from experience. Guest lecturers will be used to illuminate some of the key issues in the commercialisation process. The required textbook, The New Business Road Test, will provide the core structure for the course: there is also a reading pack with a small number of key articles.

Learning objectivesAs a result of completing this course you will have learnt and practised key techniques in developing innovative products, processes and systems, and developed the critical thinking skills necessary to evaluate opportunities and to identify how to turn them into effective businesses or organisational operations. Specifically you should be able to:

identify and harvest intellectual capital and creative ideas know how to locate and license intellectual property that can be used in a

new system or business venture evaluate opportunities and assess their commercial viability develop tools to test the feasibility of entrepreneurial proposals understand the parameters used by venture investors in assessing

innovative proposals assess different approaches to commercialisation, and their impact on

existing organisations understand the issues involved in start-ups, corporate venturing, and IP

commercialisation learn how to develop a business plan, an implementation plan, and

initiating commercialisation, and present findings and recommendation to senior mangers, investors or

board members in a convincing manner, supported by relevant data and analysis

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Course RoadmapThe course will begin with an overview of what is meant by innovation and commercialisation, and the key differences between start-ups, corporate venturing, and spin-offs. The ten weeks that follow address the key areas to be examined in commercializing an innovative product or process. Weeks 2 and 3 will then examine the assessment of target markets and market attractiveness. Week 4 will look at issues to do with the protection of business ideas and intellectual property (IP). Weeks 5 and 6 will continue the examination of commercialization, focussing on industry competition and sustainability of a business proposal

In Week 7 we will address angel investing and venture capital funding. This will be followed in Week 8 when the student teams will present their case study proposals for the commercialization project (this case study is to be presented in the final week of the course).

After the mid-semester break, Week 9 will examine the issues surrounding risk. In Week 10 we will have the opportunity to sit in on an angel investor review or applications: this will provide the basis to allow students to apply the techniques of ‘on the spot’ evaluation (please note this is a Tuesday evening session).

Week 11 will explore the people issues. Week 12 will integrate issues to do with business models and competitive advantage, and then Weeks 13 and 14 will look at business model innovation, using the business concept innovation approach. Then the final week is the time when student teams will present their commercialisation plans.

Learning methodsThe course will use a combination of approaches to help you learn and apply concepts. These are listed below.

Innovation Lab Sessions. This portion of the course will be a part of the course where you will listen to, evaluate, and discuss actual innovations for viability. You will also learn to create your own tools for idea evaluation that can be used throughout a career. This component will take place in a team setting.

Written Deliverables. Learning to craft compelling presentations that help you sell concepts to others is a fundamental skill. This course requires the development of presentations where you will present findings and recommendations about the innovations that you evaluate as well as recommendations about commercialization approaches and implementation. These presentations will be developed as a team. There will also be the delivery of an Excel work book (see below) where you will capture methods to evaluate innovations as the class moves forward.

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Oral Presentations. Presenting ideas to a group is an essential skill. Each of the slide deck deliverables will be presented to the class for review, discussion, and critique.

On the Spot Idea Evaluations. Two or more real startups will present to you and you will be required to make an on the spot analysis of the idea and plan. You will immediately email your thoughts on the viability of the plan to the instructor. This is very real world and reflects how quickly investors and executives within corporations often make decisions.

Case Analysis. Cases provide an excellent vehicle to learn and apply concepts. Real world situations will be used as well as a mix of selected written cases. Traditional written cases may be selected to demonstrate how commercialization of innovation is accomplished in other firms.

Guest Speakers. Guest speakers may be used from time to time. In some cases they could be used to amplify a particular topic that is being studied, and in other cases will be used to present real life experiences with commercializing innovation. Sometimes the lead inventor of a technology may be available to speak.

Readings and Additional Material. There is a course text, The New Business Road Test by John Mullins (4th Edition). In addition, there will be additional readings for most classes that have been selected to add context, background, and depth to the class lectures and discussions: a core study pack includes a number of these articles.

Deliverables and GradingThere are both written deliverables and presentations. Due dates are given in the class schedule that follows. Please note these carefully.

• Feasibility Assessment. You will be required to find, research, and present your assessment of a case study. According to the week of your presentation, you will assess the innovation according to the target market, broader market, industry, competition or other specified issues based on criteria discussed in class and in the readings: specific questions to be addressed will be advised. The presentation should include slides and should aim to last 5 minutes, and certainly no more than 10 minutes. The goal is for everyone to learn to quickly look at an invention and make a determination of feasibility and likely challenges that are likely to arise in commercialization. Presentations will be scheduled in Weeks 2-12.

• On the Spot Idea Evaluation. During one class, you will be presented with several startup ideas and you will be given some time to draft an on the spot analysis which will be immediately emailed to the instructor. This is a real life meeting of an

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angel investor group, and will take place on a Tuesday evening. It is a valuable opportunity to learn how to reach and express conclusions quickly, typical of start-up venture settings.

• Innovation Assessment Workbook: This deliverable will be a spreadsheet that contains evaluation metrics to be applied and understood when evaluating a new innovation or business opportunity. The spreadsheet should be comprehensive and have special metrics to be applied depending on the purpose of the evaluation. These metrics to use will be discussed in class and you will have the opportunity to revise your spreadsheet as the course develops. There will be at least one checkpoint to see how you are doing. This is an individual assignment. The workbook/assessment tool will become a valuable resource that you can apply in your careers.

• Commercialization Plan Presentation: This will be team based and the culmination of the learning throughout the semester. The assignment is to create a real world commercialization plan. The slide deck will present the analysis and recommendations for commercialization for the innovation chosen by the team for the semester. There will be a non-assessed review of progress at the end of the first mini. The class will then discuss the presentation and whether they agree with the conclusions and recommendations. Part of the grade will be determined by your defense and explanation of the conclusions.

The following weights will be used to determine your grade.

Deliverables Points1. On The Spot Analysis Exercise 1002. Innovation Assessment Workbook 1203. Commercialization Plan Presentation 1404. Feasibility Assessment 40Total Points 400

Marking of presentations

(1) Feasibility assessment:

These individual presentations will account for 10% of the total marks for Commercialising Innovation. Marks will be awarded as follows:

30 marks for content – based on:o The feasibility of commercialising the chosen innovationo The issues involved in commercialisationo The quality of the indicative market assessment

10 marks for the actual presentation – based on:o The clarity and logic of the presentationo Defence and ability to answer questions

Due date: As scheduled with lecturer.

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(2) Commercialisation Plan presentations

This group presentation will account for 35% of the total marks for Commercialising Innovation. In each case, marks will be awarded as follows:

120 marks for content – based on:o Relevance of the material presentedo Extent to which the presentation is based on a practical and realistic viewo The use of supporting materialo The use of relevant references

20 marks for actual presentation – based on:o The clarity and logic of the presentationo Evidence of team participationo Relevance of answerso Clarity of answers

Due date: As scheduled in the course dates

(3) On the spot evaluation:

These individual responses will account for 25% of the total marks for Commercialising Innovation. Marks will be awarded as follows:

80 marks for content – based on:o Choice of assessment criteriao Defence of their relevanceo Quality of analysis and conclusions

20 marks for the report presentation – based on:o Clarity of the written reporto Logic of the presentation

Due date: As scheduled in the course dates

(4) Innovation Assessment Workbook

These individual submissions will account for 30% of the total marks for Commercialising Innovation. Marks will be awarded equally between the following criteria:

o Relevance of the material presentedo Extent to which the presentation meets the brief as set out aboveo Logic of the presentationo Quality and utility of the analytical framework

Due date: By the end of Week 14

For the team projects, your contribution will also be confidentially reviewed by your peers based on your work during the project. This will be accomplished by each student

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coming up with a forced rank for each member of the team. The team grade and the confidential ranking from your peers will determine the grade for group projects.Other class policiesAttendance is an important element of the class. You are expected to attend each class and should plan ahead to resolve any conflicts ahead of time. Class attendance takes priority over social activities, awards nights, support of extra curricular activities, etc. You are expected to be attentive in class, and use of BlackBerrys, iPhones, texting on phones, etc. is not welcome.

Guest speakers have committed to present information to you and do so on an unpaid basis. Frequently they have driven from out of town. So, to give maximum attention and participation when guest lecturers are present, use of laptops is not permitted at that time.

Please note: If you have a disability or need special consideration, please contact the Learning Assistance Center at 758-5929 in the first 2 weeks of class.

Reading MaterialsCourse Text:

The New Business Road Test by John Mullins, Fourth Edition, Prentice Hall 2013

Articles

A core reading pack is available through the bookshop (articles marked *).

Additional articles and case studies will be available in Sakai, or can be emailed. Copies of all lecturer and guest lecturer presentations will be available after each class.

There are a number of other articles in Sakai. Students are encouraged to read these, as they will assist in both the commercialization plan and the innovation assessment workbook tasks.

Inclement weather

If a class is missed due to inclement weather, a makeup class will be scheduled for the following week. The decision on whether to hold class follows the Reynolda campus weather decision. This information is always posted on the Window on Wake Forest website (http://www.wfu.edu/wowf/).

Typical evening structure: 6 pm, Administrative Issues Discussion of key articles, based on Feasibility Assessment presentations Case study (discuss at tables)

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Review Group work

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Schedule and Topics

January 15 Week 1: Course Introduction

Agenda Course Introduction:• Class Participant Introductions• Overview and Roadmap of the Course• Deliverables and assessmentThe critical importance of commercialization• An overview of the innovation and

commercialization process• The role of case studies - Pickling Plant

Readings Technology Transfer at US Universities (an overview of the tech transfer process)

Accelerating Technology Transfer and Innovation Chapter 1 of The New Business Road Test

Deliverables None

Session Learning Objectives

Understand the course plan, deliverables and assessmentUnderstand the innovation and commercialization framework

January 22 Week 2: Is it real?

Agenda Evaluating an innovative proposal:• Turning an idea into a product or process• Assessing the possible target market

Readings Chapter 2 of The New Business Road Test (and check Chapter 11 for the Workbook task)

Is it Real? Can we Win? Is it worth Doing? * Finding and Evaluating the Opportunity * Case study - Data Mining

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Analyze the market for a new technology or ideaApply quick evaluative techniques to determine market viabilityGet comfortable brainstorming business models and product ideas originating from an innovation.

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January 29 Week 3: Can I get in to this market?

Agenda Evaluating markets:• Examining the character of a potential market• Reviewing issues in market

Readings Chapter 3 of The New Business Road Test (and check Chapters 13 and 15 for the Workbook task)

The coming era of on demand marketing Demystifying social media Case study - Petosan

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Reviewing a broader market and its likely growthUnderstanding the issues in market entryAssessing the impact of online and social media strategies

February 5 Week 4: Do I need to protect my ideas?

Agenda Evaluating Technology and IP:• Evaluating the commercial viability of a technology• Understanding Intellectual Property, its protection

and its value• Exploiting IPCase - Water Wall

Additional Readings

Intellectual Property--The Ground Rules Does copyright matter? Chapter 5 of The New Business Road Test (we will

return to this in Week 6)

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Understand the common problems in assessing and seeking to implement technology based innovationsBe able to identify types of intellectual property and their relevance to innovation

February 12 Week 5: Why this industry?

Agenda Assessing the attractiveness of an industry:• Examining the growth phases of an industry• Evaluating the impact of future change on industry

attractiveness

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February 12 Week 5: Why this industry?

Additional Readings

Chapter 4 of The New Business Road Test (and use Chapter 14 for the Workbook task)

Development of a Technology Readiness Measure Calculated risk Valley of death Case study - Smart Communications

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Be comfortable with the life cycle model of an industryUnderstand the forces that change industries and the likelihood of radical innovation

February 19 Week 6: Can we win?

Agenda Assessing industry competition:• Examining the competitive rivalries that exist in an

industry• Evaluating the impact of suppliers, substitutes and

new entrants

Additional Readings

• Chapter 5 of The New Business Road Test• Creating Competitive Advantage *• The Five Competitive Forces that Shape Strategy• Case study - SENZ

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Be comfortable with the five forces model of assessing the attractiveness of an industryUnderstanding the competitive threats that a new proposal has to address

February 26 Week 7: How do I get VC funds?

Agenda How venture capitalists evaluate opportunitiesHow corporate venturing worksCase - Majitek

Additional Readings

Guide to the Venture Capital Galaxy Auditioning for money Chapter 12 of The New Business Road Test

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February 26 Week 7: How do I get VC funds?

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Understanding the venture capitalist’s model for evaluating opportunitiesUnderstanding the corporate perspective in evaluating opportunities

March 5 Week 8: Group case study review

Agenda Student teams present the innovative idea they are exploring for the Commercialization Plan task - for critique and commentary.

Readings None

Deliverables Innovation Assessments based on group case studies

Session Learning Objectives

Make compelling presentations that lead to solid conclusionsDefend conclusions under close questioningLearn form other students about issues that may be important in the commercialization task

Mid Semester Break

March 19 Week 9: Is it worth it?

Agenda Challenges and issues: Understanding risk Sustaining an innovative approach

Additional Readings

Chapter 6 of The New Business Road Test Managing the business risks of open innovation Getting the scope of the business right * Moving Innovation to Market - Will It Fly? * Case study - BrandKarma

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Understand the practical challenges and tasks that must be accomplished in a corporate new venture.Understand the processes and strategies required to sustain innovation

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Tuesday March 25

Week 10: On the spot evaluation

Agenda Presentation of innovative proposals. On the spot evaluation of the opportunities

Reading • Chapter 10 of The New Business road Test• The Top Ten Lies of Entrepreneurs

Deliverables On the spot evaluation ‘test’

Session Learning Objectives

Apply what has been learnt to date by evaluating real world start-ups and corporate ventures

April 2 Week 11: Who and How?

Agenda Challenges and issues in commercializing start-ups: Getting started: people Legal and regulatory issues

Additional Readings

Chapter 7 of The New Business Road Test Management Due Diligence Leading innovation change Case study - Go Fish

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Understand the people challenges and tasks that must be accomplished in commercializing a start-upBe able to explain how to get a company started the right way from a legal and structural standpoint

April 9 Week 12: Is this the right business model?

Agenda Review of the importance of choosing the right business model: Identification of the strategies that maximise

competitive advantage

Additional Readings

Chapter 8 of The New Business Road Test IP Enabled Business Models * A framework for advancing your business model * Case study - ThreeFive

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April 9 Week 12: Is this the right business model?

Deliverables Assigned Feasibility Assessments

Session Learning Objectives

Understanding the issues in adopting and changing a business modelExploring the techniques for business model innovation

April 16 Week 13: Can we rethink? Part 1

Agenda Rethinking a business - business concept innovation - business analysis

Readings • Samsung theme park• BCI worksheets• Look at Chapters 9 and 16 of the New Business

Road Test to review your Workbooks

Deliverables Review of case study

Session Learning Objectives

Understand the framework for business concept innovation

April 23 Week 14: Can we rethink? Part 2

Agenda Rethinking a business - business concept innovation - developing and assessing opportunities

Additional Readings

• Radical Innovation in companies• Look at Chapters 9 and 16 of the New Business

Road Test to review your Workbooks

Deliverables Completion of the case study

Session Learning Objectives

Be able to apply the business concept innovation model to an existing business or a proposed start-up

April 30 Week 15: Commercialisation Plan Presentations

Agenda Student teams present the Final Commercialization Presentations

Readings None

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April 30 Week 15: Commercialisation Plan Presentations

Deliverables Final Commercialisation Plans

Session Learning Objectives

Make compelling presentations; defend conclusions and approaches under detailed questioning

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