PROS/CONS
3. Exploitation through spin -outs
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Exploitation through spin-out
The exploitation through of spin-outs is usually takes place, when:
- the exploitation of the product/service developed does not fit with parent firm strategy.
- the firm does not want to diversify its activity.
- wants to cope new markets.
- needs partners and/or to create a joint venture:
• needs to include financial partners (risk capital)
• complementary technical skills
• local partner for exploitation in new market
• ...
Fernando San Martín
Exploitation through spin-out
Momentum for the launch of the spin-out.
31st of March 2004 Exploitation of RTD results 19 Fernando San Martín
PROS/CONS
-Limit of potential financial risk to firm assets.
-Independence -Flexibility
-Can have support from parent/s company/ies -Transmit image of
innovative firm dedicate to new technology product.
-...
-In case of joint ventures, potential loss of control.
-Lack of own historical data.
-Requires complete new structure.
-New infrastructure
-New multidisciplinary team -...
Exploitation through spin-out
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Exploitation
Whatever the means for exploitation:
-Sale of knowledge as stand alone product -Include new product/service within existing catalog of the firm
-Create a new firm to exploit the product/service
It is crucial to define a precise Business Business Plan Plan
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Objetives of a Business Plan
w Provide objectivity to the selection of different alternative exploitation channels.
w Reflect in a document the business strategy for the exploitation of its activity.
w It can be used for searching partners for the new business
w It is an instrument for the enterprise to plan and monitor its activity.
Fernando San Martín
Purpose of a Business Plan I
w 1. Reduce subjectivity of a situation w 2. Avoid ilusions .
w 3. Simple is clear and clear is easy to be solved.
w 4. Be concise. Exess of information can distract w 5. Direct and simple language
w 6.Virgin markets do not exist. You have to contribute to create new ones or cope existing ones.
w 7.Client orientation is natural, it is not a
difference.
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w 9.Game consist of taking attention to clients. The key is to be different and enjoy the preferences of potential clients instead of competitors.
w 10.Differentiation from competitors is crucial.
w 11.Commercial strategy consist on reach differentiation to the eyes of potential clients.
w 12. The Best organisation is the simplest one.
Purpose of a Business Plan II
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Index for a Business Plan
w Executive Summary
w Description of the firm to exploit the product/service w Business Description
w Product / Service
w Manufacturing, Purchases, Quality, Administration w Markets
w Competence
w Pricing policy
w Comunication
w Marketing
w Management
w Financial Planning
w Annexes
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Executive Summary
w Purpose of the Business Plan
w Project presentation (activity and objetives).
w Management Team.
w Presentation of the product and competitive advantages.
w Main Competitors.
w Potential Market.
w Expected Beneficies
w Financial Structure foreseen and role of the financial partner.
Fernando San Martín
Firm description/ Business Description
Firm description
w Profile of the firm:
Descrip., lines of activity, capacities...w Property and structure:
Owner, director,... Articles, ...w Current product and services:
Descrip. Clients, ...w Localization:
Description of the placement, facilities, ...w Objectives:
Mid term business objectives ...Business description
w Fundamental Description of the business:
– What is going to be sold, within which frame of activity it is, business sector to which it belongs to, how to get benefits, ...
w Description of benefit by clients:
– Why a client is going to be interested in our product/service....
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Product,Service/Manuf.,Purchase,Quality
Product,Service
w Description:
Functionalities, tangible and intang. caract....w Technology of the product
w Estimation of its life cicle. How to increase it.
w Comparison in front of competitors’
w IPR
. Patents, brand, copyright,...Manufacturing,Purchase,Quality
w Manufacturing:
Process, technology, automation, costs, facilities required/available, degree of specialisation ...w Pruchase:
What to buy or outsource. Concentrate on core competencew Quality:
Quality assurance process. w Adminsitration:
Information flow.31st of March 2004 Exploitation of RTD results 28 Fernando San Martín
Markets / Competence
Market
w Market studies:
Quantitative or qualitative, exhaustive or general....w Market segmentation:
Type of client, needs preferences, how take decision,...w Market objective:
Market share, and paces, description, ..w Clients’ profile:
User, the one who decides, pays, ..Competence
w Identification:
Direct and indirect competitorsw Information sources:
Adds, clients, fairs, congress, interviewsw SWOT analysis
w Competitor is the foe in commercial war.
Defensive, Offensive, Side or Guerrilla strategies.31st of March 2004 Exploitation of RTD results 29 Fernando San Martín
Pricing Policy/ Communication
Pricing Policy:
w Prices must be defined inward.
w Danger of generic prices policy
w Estimation of market prices:
Clients (budget and max.price, alternative solutions, ...
w Price of the technology:
Mini-Max & Shared profitw Payment options:
User, the one who decides, pays, ..Communication
w Need to contact with client:
Client must know why usw Differentiation:
What makes us different from comp.w Name/Brand:
Easy to remember, “nice to ear”w Positioning:
The first better than the best, market is a perception battle field of rather than products battle fieldFernando San Martín
Marketing/ Management
Marketing Mix:
w Product:
Message of product accessible to clientw Price:
Pricing Policyw Place:
How to bring it to the marketw Promotion:
Channels for making it knowManagement
w Management team w Decision criteria w Flowchart
w Operational structure w Staff planning
w Staff expenses
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Financial Plannig/ Annexes
Financial Planning:
w Financial analysis and forecast:
Balance sheets, exploitation results, credit lines, ... Sales estimation, balance estimation, ROI..w Requirements of investment and finance:
Own and others’resources
w Structre and sources of investment w Investment withdrawl options Annexes:
w Firm catalogs w Product catalogs
w Detailed info. Quality, processes, techniques w Detailed info. Sales, clients, ...
w Team
w Financial historical data
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In document
ANNEX 6 – GREECE - VTT project pages server
(sivua 68-76)
