Peregrim and manocchi

Commercial Development Course Overview

Commercial Development & Marketing Association
Educational Foundation presents an
Overview of CD 101

CDMA
SPRING MEETING
ADDON WORKSHOP
April 20, 2006

Presenters:
Jack T. Peregrim, PARAGON Development
James Manocchi, Deloitte Consulting LLP

CDMAEF: Commercial Development & Marketing
Association Educational Foundation

Agenda

4CDMAEF & CDMA relationship & background
4Course background
4Overview of all phases in full course
4Presentation of Phase 4 (Business Case)
4Q & A

© CDMA Educational Foundation Developed for CDMA Spring Meeting 2006 Slide 2


4 CDMAEF is a nonprofit educational foundation focused
on education in new business development.
4 There are many courses and workshops created by the
foundation, including: Industrial Market Research; Cyber
Competitive Intelligence; Basics of Commercial
Development; and International New Business
Development
Focus is on:
4 Industrial organizations such as the Chemicals/Materials or
‘Component’ type producers.
4 A wide range of implementation vehicles from technology &
product development to acquisitions.



Course Background:
4 Several decades old. Last major revision in 2001
4 Course created ‘back to front’
4 No specific business process is advocated. (StageGate,
etc.)
4 Full course offering emphasizes case studies and mentoring
by multiple presenters


Functional Excellence vs. Phases5 represents critical activity

PHASES
Business Post
FirstCut Qualified Quantified Assessment PreLaunch Launch Commercial Commercial

1 2 3 4 5 6 7 8

Strategic 5 5 5 5 5 5

Financial 5 5 5
Organizational Support &
Resources 5 5 5 5 5

Technology 5 5 5 5 5 5 5

Mark eting & Sales 5 5 5 5 5 5 5

Legal & Regulatory 5 5 5 5 5 5

Operations 5 5 5 5 5

External Influencing Factors 5 5 5 5 5

Overview


Commercial Development Course Overview

Business Assessment

Phase 4 out of 8

Phase 4: BUSINESS ASSESSMENT Overviews

4 Mission & Vision
• Clarified mission and vision statements in clear, specific terms
• Competitive advantage and value capture potential are clearly
understood and have compelling supporting information
4 Strategic fit
• Statement of clear value proposition
• Technology meshes and can be managed successfully
• Projected growth curve of new product (line) matched with corporate
goals
4 Functional support and resources
• Demonstration of appropriate process flow to support venture
• Proposal of logical reporting framework
• Outline of what is possible – manage expectations

Phase 4: BUSINESS ASSESSMENT

4 Financial issues
• Funding requirements and mechanisms
• Risk assessment with critical hurdles and effect on risk/certainty
based on the outcomes at the critical steps
• Demonstration of timelines and desired market penetration
• Clear statement of expected return on investment
4 Technical issues
• Description of complementary technology
• Description of possible substitution/disruptive technology
• Competitive activity
• S.W.O.T. on existing or expected competitive technologies
• Defensive and offensive intellectual asset review
• Critical mass: evaluation and project impact


4 Marketing and sales
• Investigate competitive, market and industry issues
• Competitive advantage profile of proposed product including product
positioning, distribution
• Pricing strategy
• Suggested promotional approach
• Targeted markets, segments
• In each above identify first customers and ultimate customers (if
different)
• Target customer(s) profile
4 Legal and regulatory
• Summary of patent/licensing review
• Statement of EHS issues management


4 Operations
• Capacity and logistics review
• Supply chain analysis
• Plan for technical and customer support resources
4 Organizational development Process
• Outline of shared and individual services required
• Suggested reporting framework



4 External Issues
• Drivers
o Macro and micro trends (economy, demographics, regulatory, political,
competitive, sociological, industry rationalizations, growth, dynamic
change rates, disruptive technology)

o Market perspective
– Rate of acceptance of new technology
– Needs and market concerns (customer perspective)
– Viability of Vendor
g Reputation, credentials, etc.
g ISO 9000 and 14000 approvals
g Reliable supplier
g Technology and customer support



4 ACTIONS:
• Finalize ACTIONABLE Business Plan – including final risk
assessment supported by industry and customer survey


Strategic Fit – Business Case

4 This is the most critical phase for a strategic fit
determination and commitment. Final determination must be
made that the new business initiative meets the dual
objectives of clearly fitting within the organization’s strategic
intent and is optimally positioned to capture value externally.

Critical
Corporate
business
strategic
success
interests
factors

Maximizing the ‘overlap’ is critical!


Strategic Fit – Business Case

What
4 Finalize clear mission and vision statements about the
business in specific internal terms.
4 Get top management formal commitment to the strategic
value to the Company.
4 Get independent assessment of strategic value (peer
reviews, external consultants).
How
4 Review impact with other initiatives in corporate portfolio.
4 Present business case to top management.
4 ‘Test’ elements of expectations with people not involved in
the initiative.


Small Group Assignment

4 Develop a Vision, Mission and High Level strategy
statement for the business case distributed

4 In all the small group exercises, you will have time to
discuss and develop a consensus. Please select a
spokesman to present the results of your work to the rest of
the class.


Financial – Business Assessment

4 Establish the financial validation of the project. Develop
final business model, value proposition and estimate
expected returns. Complete a risk assessment.
• Develop fullyloaded financial model for the project
• Fully understand project risks: commercial, technical and financial
and their impact on business performance
• Develop business plans including initial pricing strategy
• Identify key markets, market entry options and market penetration
strategy
• Obtain management approval



4 Discuss the financial metrics that you believe will be needed
at this stage for adoption by the company
4 Discuss resources required, timeline, and so forth


Organizational Support and Resources –
Business Assessment

4 Primary activities are in producing two plans:
• one plan is based on a business case at “steady state” or a
longterm horizon
• a second plan (Development Plan) that deals with the unique
resource requirements in scalingup, launch, and
commercialization.


Business Assessment

What
4 Determine optimal resources and their source.
4 Produce resource plan for the business case.
4 Recruit or confirm manager and other key personnel who
will be responsible through commercialization.


Business Assessment

How
4 Analyze data as to personnel, equipment, and other non
rawmaterial resources required.
4 Determine critical success factors of personnel required
both during scaleup and launch plus those required longer
term.
4 Review involved personnel and recommend any changes
warranted if business case is approved.
4 Create process flow charts and organizational reporting
structure.
4 Determine sources of resources required: shared, owned,
subcontracted, etc.


Small Group Exercise

4 Plan for success by determining the kind of resources
needed for success – and how to get them.
• Capital required?
• Pilot plant? Timing for building the commercial plant?
• …


Business Assessment Technology Issues

4 Technology Implementation Plan for Commercial Success
o Proposed Technology Implementation: Complexity/Cost/Return
o Intellectual Asset Review – Existing Platforms and Patents/Licenses
o Critical Mass Evaluation – Core Competencies

4 Alternate Technology Impact on Market Share and GM
o Competitive Technology – Market Share and Cost/Price Ratio
o Potential Product Substitution
o Potential Disruptive Technology



4 What are the most critical technology considerations in our
case study?


Business Assessment (Marketing & Sales)

4 This is the time in which gono go decisions are made.
Assessments of market conditions including competitive
responses must be validated and real in order to proceed.
Marketing is the lead for all of this
4 Detailed business plan to be produced and shared;
consensus gained
4 Critical accounts/potential significant customers to have
been identified and some kind of commitment gained
• Commitment to be structural
• Identified as one of their projects at a relatively high level in the
organization



4 What kind of market confirmation will be required?
• How extensive?
• Geographical?
• Total numbers of customer commitments?
• Specific customers?
• Who will get this for you?
• Other


Business Assessment (Function)

4 Legal framework and in place for commercial success while
EH&S issues and plans for management well framed,
understood, accepted

• No showstoppers
• Legal onboard
• EH&S onboard
o Any TSCA or inventory requirements in place for doing business as
needed
– E.g., Consider all countries where it is likely that testmarketing is likely. Be
ready to ship samples and orders.



4 What do you see as the most critical EH & S issues that
need to be researched?


Operations – Business Assessment

4 Develop a clear understanding of the operational issues
associated with the new product or process.
• Determine manufacturing options: buy or build
• Develop product distribution and logistics options
• Identify infrastructure needs
o IT support and hardware needs (e.g. EFT)
• Define customer support, technical support levels needed
• Evaluate manufacturing issues
o Permitting
o Personnel
o Site layout



4 Discuss and reach a consensus about how to
• Determine manufacturing options: buy or build
• Develop product distribution and logistics options
• Identify infrastructure needs
o IT support and hardware needs (e.g. EFT)
• Define customer support, technical support levels needed
• Evaluate manufacturing issues
o Permitting
o Personnel
o Site layout


External Factors – Business Assessment

4 Product Implementation Plan – Responses to:

o Industry Trends
– Regulatory Impact Compliance
– Industry Rationalization – Economic Shifts
– Technology Issues – Viability
– Political Influences – Policy Impacts

o Market Trends
– Level of Interest in Technology: Performance Standards
– Market Opportunities Substitute and Disruptive Technologies
– Vendor Viability – Performance Credibility



4 What are the most critical external factors to validate and
quantify?
4 Which are critical but cannot be quantified and how do we
manage that?
4 How would you manage the external research in our case
study?


Review

4 Importance of Phase 4
4 Elements of Phase 4

4 What one big idea did you learn?
4 What one big concept was not covered or of which you are
still unclear

4 Thank you for the opportunity to introduce our course and
CDMA EF


Peregrim and manocchi

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Peregrim and manocchi

Similaire à Peregrim and manocchi (20)

Plus de Bizsprouts

Plus de Bizsprouts (16)

Dernier

Dernier (20)

Peregrim and manocchi