FACULTY OF APPLIED SCIENCE

MODULE : ENT 500

(TECHNOLOGY ENTERPREUNERSHIP)
ASSIGNMENT 7: COMMERCIALISATION

NAME : NUR ATIRAH SAKINAH BT MOHAMMAD ALI

MATRIC NUMBER : 2014427254
GROUP : AS2535A1

LECTURERS NAME: SIR SHAMSURI

DEFINITION

Commercialization is the process by which a new product or service is introduced into

the general market. The process of commercialization is broken into phases, from the
initial introduction of the product through its mass production and adoption.

ACTIVITIES INVOLVE

i.Commercial Idea
This phase begins with techno-market insight to prove the concept of a technology and a market
opportunity. The activities include the demonstration in a laboratory of critical components of the
technology and the development of a related business model
ii. Intellectual Property Rights
The procedure for granting patents, the requirements placed on the patentee, and the extent of the
exclusive rights vary widely between countries according to national laws and international
agreements. Typically, however, a patent application must include one or more claims defining
the invention which must be new, non-obvious, and useful or industrially applicable.
iii. Funding
Identification of a Venture capitalist, access to risk/ research funds and technology transfer
licensing are prerequisite for a successful commercialisation of research and development.
iv. Prototype
Technology development has great uncertainty as to whether a new design will perform as
expected. A prototype is often used as part of the product design process to allow inventors and
researchers to explore design alternatives, test theories and confirm performance prior to starting
production of a new product. Inventors and researchers use their experience to tailor the
prototype according to the specific unknowns still present in the intended design.
v. Research and Development
Establishing and refining the production process to meet market demand and regulatory
specifications of products and services.

vi. Business Plan

A business plan is a formal statement of a set of business goals, the plan for reaching those goals.
It may also contain background information about the organization and the management model
to be adopted. A three to five year business plan is required since investors will look for their
annual
return
in
the
three
to
five
year
duration.
vii. Technology Incubation
Incubation of the proven technology by the following activities: definition of technical and
product performance specifications; validation of technical capabilities in context of the
performance specifications; and further validation of the market and related commercial concept
and business plan. Typical suppliers of resources for Incubating activities include the federal
government, state governments, owners or entrepreneurs, corporate R&D departments,
university R&D departments, and, to a limited extent, angel investors. Given the lack of tangible
market validation and risks, private investors generally do not fund projects in the Incubating
Phase.
viii. Market Entry
Entrepreneur enters the market to validate the commercial opportunity by scaling up the
production to a full enterprise. Activities are those typically associated with an ongoing business
such as production, service, distribution, sales, and marketing.
ix. Growth and Sustainability
The Growth and Sustainability Phase involves the execution of a comprehensive business plan to
increase market share and/or total revenue and profit in context of a self-sustaining business.

OPTIONS

There are five options to commercialize R & D:

1. Outright sale of the R&D output before securing IP (intellectual properties)
2. Get into licensing agreement with established private organization after securing IP
3. Get into Assignation agreement with buyer

4. Spin-off by starting a new venture from within the established research organization.
5. Spin-out by starting a new venture independent of the research organization where the
new technology-based product was developed.