Technology Commercialization Process

Research potential applications, end-use markets, and merits of competitive technologies
Assess potential commercial strategies
Realistically assess and cost commercialization strategies:

Magnitude, cost and availability of capital

Time-to-market

Staff resource requirements

Identify potential financial resources and strategic partners
Develop commercialization plan

From time-to-time companies, investors, and individual inventors need to assess the value and potential of a new technology (think patentable intellectual property). For a going-concern, the potential of a new technology can range from a whole new line of business to an “interesting” technical or engineering idea that has no real commercial value and should be “shelved.” Active investors see a steady stream of business plans that in some instances are based on a new technology. For investors the issues are: Can the technology become a “businesss” (free-standing and sustaining), product line (needs supporting infra-structure) or is it a highly valued kernel of intellectual property to a strategic investor/company? Inventors most often are not particularly well-suited to assessing the commercial value of their creations; enthusiastic but often not commercially rational. In all three instances, Pelorus can be of assistance in assessing and, if warranted, commercializing a new technology.

For a company a new technology may be the result of R&D or serendipity or an “opportunity” brought to them by a third party (think IP acquisition). Companies can be very good at assessing the potential of new technologies that are directly related to their core business. That said, some corporate clients are just not staffed to thoroughly and dispassionately assess new technologies. For some companies such assessments can become someone’s “special project” or assigned to a “task force” of competent, but very busy, managers and executives. This internal staffing approach can be a misuse or distraction of resources and a leap of faith the internal resources can thoroughly vet the new technology. Pelorus can be of assistance by supplementing internal resources (knowledgeable professional guide) or a dispassionate, professional third-party assessment.

For potential investors assessing a new technology needs to go beyond what may be presented to them by an inventor or company trying to off-load a technology. Successful angel investors are excellent at sorting through the chaff of “good ideas” and slick business plans based on business acumen and good financial sense. That said, angel investors are not generally organized to conduct the next level of due diligence in assessing the market value and associated dynamics of developing a new technology; investment opportunities are just too diverse for anyone or investor group to have both current and deep knowledge. Pelorus can assist investors seeking a timely and professional assessment of the commercial value of a new technology.

For inventors commercialization of a new technology usually begins with the incorrect presumption that the technology warrants development of a free-standing enterprise. In our experience, many viable new technologies starting with zero infrastructure and no commercial expertise are better served by pursuing a strategy of selling to an established strategic partner. While there may be other objectives for developing a technology, e.g. attracting research grants and supporting academic pursuits, the metric of commercialization is highest NPV.