Presentation Template

1
Keys to Commercialization Success
Presented by Martin Zeller Date December 7,
2000
U S C E N G I N E E R I
N G T E C H N O L O G Y
T R A N S F E R C E N
T E R A N A S A R E G
I O N A L T E C H N O L
O G Y T R A N S F E R
C E N T E R h t t p / / w w w . u s
c . e d u / g o / t t c
2
Objectives of the SBIR Program

• Stimulate technological innovation
• Use small business to meet federal RD needs
• Increase private sector commercialization
  derived from federal RD
• Encourage the participation by disadvantaged
  and minority persons in technological
  innovation

Presented by Martin Zeller Date December 7,
2000
3
Implications of SBIRs
Commercialization Objective

• A company whose business plan does not call for
  commercial sales of a product or service should
  think twice about seeking funding from SBIR
• Planned commercial sales can be to government
  or non-government customers
• Think of SBIR as a seed capital fund to augment
  the research budget of a small business that is
  seeking to develop a new product or service that
  is to be offered for sale in the marketplace
• Successful SBIR companies focus on commercial
  prospects and plans from the start (even before
  submitting a phase I proposal), not as an
  afterthought

Presented by Martin Zeller Date December 7,
2000
4
Succeeding in SBIR

• Success is not just about getting phase I and
  phase II funding, though that is part of the
  picture
• To succeed in SBIR requires following through
  all the way to commercialization (phase III)
• A small business must have a commercialization
  mindset going into phase I to succeed ultimately
  in SBIR

Presented by Martin Zeller Date December 7,
2000
5
Commercialization Mindset

• A business philosophy that stresses commercial
  sales of products and services, using a variety
  of business models
• Some of these products and services will be new
  and require research and development prior to
  market introduction
• The company will do what it takes to achieve
  the goal of commercial sales
• Acquiring resources for RD activities (SBIR
  perhaps)
• Acquiring resources to protect, produce,
  promote, distribute, sell and support the product
  or service

Presented by Martin Zeller Date December 7,
2000
6
A Healthy Approach to SBIR

• Do not abandon your commercialization mindset
  just because you are participating in an RD
  funding program
• Remember, you are only using SBIR to fund
  research activities that will lead to a new
  product or service
• Devote time and attention to non-research
  business activities that will help you reach a
  state of commercial readiness

Presented by Martin Zeller Date December 7,
2000
7
SBIR Commercialization Activities

• Some Generalizations
• No different from non-research business
  activities that companies of all sizes undertake
  advertising, marketing, production, distribution,
  customer service, accounting, legal, etc.
• Most small businesses have limited internal
  resources and can not accomplish all of these
  activities on their own
• Look outside the small business to acquire
  necessary resources to fill in the gaps

Presented by Martin Zeller Date December 7,
2000
8
Typical Commercialization Activities

• Conduct market research (secondary and primary)
• Identify target market niches and prioritize
• Prepare a business plan
• Pursue sources of financing
• Pursue prospective customers
• Pursue prospective strategic partners
• Secure agreements of third-party funding
  commitment, in-kind contribution, customer
  purchase orders, other commercial support
• Prepare high quality SBIR proposals that
  address commercial plans and follow the format
  specified in the agency solicitation

Presented by Martin Zeller Date December 7,
2000
9
Conduct Market Research

• Secondary research
• General market conditions, trends, etc.
• Competition
• Market size
• Identify prospective customers and partners
• Primary research
• Needs assessment
• Assess level of commercial interest
• Make contacts with potential customers and
  partners

Presented by Martin Zeller Date December 7,
2000
10
Identify Target Market Niches

• Use information uncovered in market research to
  identify market niches to target for commercial
  sales
• Market niches can be governmental or
  non-governmental
• Prioritize niches and estimate expected
  penetration
• Project sales based on overall market size and
  companys expected share of the market

Presented by Martin Zeller Date December 7,
2000
11
Pursue Prospective Customers

• Use market research to uncover future customers
• Build relationships
• Find a champion for your product or service
  within a potential customer organization
• Secure purchase order agreements (frequently
  with contingencies, but thats okay)

Presented by Martin Zeller Date December 7,
2000
12
Pursue Strategic Partners

• Use market research to uncover partnering
  prospects
• Build relationships
• Evaluate complementary resources
• Find a champion for your product or service
  within a potential partner organization
• Secure letters of support, funding commitment,
  agreements of in-kind contribution,
  manufacturing, marketing and distribution
  arrangements, etc. (frequently with
  contingencies, but thats okay)

Presented by Martin Zeller Date December 7,
2000
13
Prepare High Quality SBIR Proposals

• The Commercialization Plan Section
• Follow the instructions the solicitation
  spells it all out
• Resist the urge to go free-form,
  stream-of-consciousness in the organization of
  your material
• Use the section numbering scheme prescribed in
  the solicitation
• The solicitation tells precisely what to cover
  in each section so cover it
• If you dont have the information required for
  a section, do not just omit it say something
  about the topic
• Get help from qualified sources

Presented by Martin Zeller Date December 7,
2000
14
An Example from NASA
SBIR Phase I Proposals Part 10 Commercial
Applications Potential 1. The specific
commercial products or services contemplated and
the corresponding target market niche 2.
Expected unique competitive advantage of the
commercial products or services 3. Nature of
the corresponding contemplated commercial venture
4. Importance of the contemplated commercial
venture to the offeror's current competitive
position and to its strategic planning 5. The
offerors capability and plans to bring the
necessary physical, personnel, and financial
resources to bear, in a timely way, to result in
a viable commercial venture in the near term
subsequent to Phase-II (if awarded)
Presented by Martin Zeller Date December 7,
2000
15
An Example from NASA
SBIR Phase II Proposals Part 10
Commercialization and Phase-III Plans (1)
Product or Service Commercial Feasibility (2)
Market Feasibility and Competition (3) Strategic
Relevance to the Offeror (4) Key Management,
Technical Personnel and Organizational
Structure (5) Production and Operations (6)
Financial Planning
Presented by Martin Zeller Date December 7,
2000
16
An Example from NASA
SBIR Phase II Proposals (2) Market Feasibility
and Competition Describe (a) the target market
niche including the distinction between U.S.
Government and other markets (b) estimated
potential market size in terms of revenues to be
realized by the offeror from U.S. Government
markets and, separately, from other markets (c)
competitive environment in terms of present and
likely competing similar and alternative
technologies, and corresponding competing
domestic and foreign entities (d) significant
developments within the targeted business sector
and (e) offerors ability, if any, to protect
relevant technology with patents or rights to
exclusive access.
Presented by Martin Zeller Date December 7,
2000
17
An Example from NASA
SBIR Phase II Proposals (4) Key Management,
Technical Personnel and organizational Structure
Describe (a) the skills and experience of key
management and technical personnel relevant to
bringing innovative technology to commercial
application, (b) current organizational
structure, and (c) plans and timeline for
obtaining the balance of all necessary key
business development expertise and other staffing
requirements.
Presented by Martin Zeller Date December 7,
2000
18
For Further Information . . .
Arizona Small Business Innovation Program
Office, managed by Pinnacle Management Group,
Inc.1435 N. Hayden Road Scottsdale, AZ 85257
480.947.5910 (phone) 602.850.4260 (Fax)
rampmg_at_aol.com A program of the Arizona
Technology Incubator The Arizona affiliate of
the NASA Far West Regional Technology Transfer
Center
Presented by Martin Zeller Date December 7,
2000
19
For Further Information . . .

• NASA Far West Regional Technology Transfer
  Center
• http//www.usc.edu/go/TTC/NASA/SBIR/index.html
• 213-743-2353
• 800-642-2872
• nasa_at_usc.edu
• Participating agency SBIR web sites
• eg. NASA
• http//sbir.nasa.gov

Presented by Martin Zeller Date December 7,
2000
20
For Further Information . . .

• SBIR Web site from SBA Office of Technology
• http//www.sbaonline.sba.gov/SBIR
• SBIR/STTR program overviews
• Links to agency SBIR/STTR websites
• Agency SBIR/STTR representatives
• Proposal preparation handbook
• Examples of winning proposals
• Lists of award winners
• SBIR conference information

Presented by Martin Zeller Date December 7,
2000