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Chapter 2:
Elements of Commercialization
Excerpt Assuming that the technology is sound, 75% of business failures are caused by either poor market understanding, or the inability to manufacture quality products in a timely manner. Therefore, good reproducible technology is only one of several critical elements required for successful commercialization. As indicated above, marketing and manufacturing are additional elements that are not only required, but required early in the product-development cycle. Several other elements are important to the implementation process, including funding, sales, manufacturing engineering, and the team itself. In many ways commercialization is like a political campaign: the engine is often the funding that drives the product toward a successful conclusion. Sometimes the market input will drive the technology. Often, as technology evolves, market input is needed early in the evolution process to adjust to market needs. Funding allows the technology to be developed, the market input to be generated, and the sales and manufacturing structure to be devised and implemented. Many companies start on a shoestring budget with little or no initial funding. We hear of fantastic successes when these companies rise to great heights from very humble beginnings. However, the vast number of companies that fall by the wayside is often played down. The takeaway here is that thinking about commercialization very early during the process of product formation significantly increases the probability of successful market entry, where a key element of success is getting the proper funding. Having a comprehensive plan and an understanding and commitment to commercialization concepts significantly reduces the risk for the investor.
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