The founder chairman and managing director wants to make Biocon, Ltd. one of the top 10 biotech firms by 2015. The company has dealt in low-risk enzymes and generic drugs for many years. In order for the company to grow, the chairman believes that Biocon must enter the riskier business of drug discovery and development. Without making large investments into new capabilities, the company cannot become a top 10 biotech firm.
The inventor and founder of DEKA research was deciding whether to commercialize his latest invention, the Segway Human Transporter, a self-balancing, battery-operated scooter. The transporter was envisioned as an alternative mode of personal transportation in traffic-clogged urban environments. It also had potential application in developing countries with limited transportation infrastructure. With the versatility to carry riders on sidewalks, rough ground, icy surfaces and inside buildings, the market potential seemed unlimited. Yet, the Segway Human Transporter represented an unconventional transportation choice for potential users. Would there be a market for it, or would it be seen as nothing more than a cool invention? Should the inventor proceed with commercialization, and if so, how?
A new biotechnology firm, Pharma Technologies, has developed a competing method for the treatment of erectile dysfunction which promises significant advantages over Pfizer's blockbuster drug, Viagra. With deep-pocketed pharmaceutical companies also pursuing product development efforts, the president of Pharma Technologies is charged with deciding how to leverage his company's superior proprietary technology into a viable product before the window of opportunity closes. Students can explore the trade-offs is pursuing internal versus external development of new technology, the strategic implications of in-licensing and out-licensing, and the criteria used in identifying potential alliance partners to expedite the commercialization of new technology.
Non Stop Yacht S.L. is a Web site that provides e-commerce service to the mega-yacht industry. Originally, the founder had planned to run Non Stop Yacht as an internet business. However, success with this business model is proving elusive and investors are growing restless as performance continues to fall short of the business plan. Substantial pressure to improve the company's performance had the founder considering a variety of alternative business models that would enable him to more effectively capture value from the concept of non stop parts procurement for high-end yachts. These options involve key decisions about the strategic positioning of the company and the relative advantages and disadvantages of pursuing strategic alliances with players at different points in the industry value chain.
The Canadian biotechnology industry generates nearly $1 billion in revenues annually. This note provides a sense of the key success factors associated with competing in this rapidly-evolving business area, including an exploration of the key sectors of economic activity, current scientific and social issues affecting development of biotechnology-based businesses, the role of clusters in building an infrastructure for biotechnology activity, and the key steps involved in patenting and developing biotechnology-related products. Issues associated with financing biotechnology-based businesses in Canada are also reviewed.
MessageTech, Inc. provides digital media technology and solutions that help clients customize advertising to their specific needs. The company's proprietary technology has the potential to revolutionize the way large, geographically dispersed retailers approach advertising and promotion by allowing clients the flexibility to customize advertising content, in real-time, to suit the conditions of each individual site. Results of beta testing indicate that clients' sales increase significantly after installation of the messageTech system. Yet, the company has been unable to close on any major sales of the system. The newly appointed chief executive officer has a mandate to commercialize the new technology. He must develop a strategy that balances the company's needs for short-term performance against the actions that will ensure a viable competitive position over the long-term.
The founder of Surgery Futures Research, a London, Ontario-based startup, developed a new technique to assist with minimally invasive surgery. His innovation eliminated the need for incisions and retractors to manipulate the bowel, and relied instead upon magnets and an ingestible fluid. He put his surgical residency on hold and spent several years developing the technology as a sideline to his medical career. He invested his time, personal savings and much of his income into this enterprise. Even under the most optimistic scenario, commercialization was still years away and would require significant expenditures for research, development, manufacturing and marketing. At age 35, and with his wedding approaching, he felt the time had come to reevaluate the venture, considering what actions needed to be taken to commercialize the technology and what role he should play in the process.
Silent Witness Enterprises Ltd. was one of Canada's fastest growing technology-based firms. The 14-year-old publicly traded company created a new market niche in the security surveillance industry by introducing novel applications of VCR-based technology. The company's founder forecasted growth that would take the company from annual revenues of $34 million in 1999 to $250 million by 2005. In achieving these goals, he must decide how to balance the need to sustain innovation and new product development, while at the same time, develop the capabilities needed to manage the firm's increasingly complex operations.