Dedication iii
List of Contributors xiii
Foreword xv
Preface xvii
List of Abbreviations xix
1 Introduction 1
1.1 Introduction 1
1.2 Importance of SMEs 2
1.3 Inspiring Innovation for Engineers 2
1.4 Rationale 3
1.5 Focus 3
1.6 Processes and Organization of Course 4
1.7 Breakdown of Book Material 6
References 8
2 Idea Generation, Filtering and Development 9
2.1 Introduction 10
2.2 Timeline 11
2.3 Team Structure 12
2.3.1 Team Working Theory 12
2.3.2 Team Roles 15
2.4 Idea Generation 19
2.4.1 Mentor Role 20
2.4.2 Role of the Team 21
2.4.3 Role of the Individual 22
2.4.4 Imitation 24
2.5 To Filter or not! 24
2.5.1 Already exists 25
2.5.2 Market Issues 26
2.5.3 Technically too Difficult 26
2.5.4 Beyond Expertise 27
2.5.5 Difficult to Pitch 27
2.5.6 No Potential for Future Development 27
2.6 Idea Incubation and Development 28
2.7 Conclusions 28
References 29
3 The ideal pitch 31
3.1 Introduction 32
3.2 Business Pitch 33
3.2.1 CONNECT Springboard 34
3.2.2 Pitch Outline 37
3.3 Case Studies 38
3.3.1 MVR 38
3.3.2 Nutrifit 39
3.3.3 Noctua 39
3.4 Pain and Solution 41
3.5 Value Proposition and Technology 43
3.6 Market and Competition 46
3.7 Company Traction and Go to Market Strategy 48
3.8 Finance 50
3.9 Presentation Process 53
3.10 Concluding Remarks 54
References 54
4 Creating an e ective business plan 55
4.1 Introduction 56
4.2 Business Plan 56
4.2.1 Business Plan Outline 57
4.2.2 Executive Summary 58
4.3 Company 61
4.3.1 Team 62
4.3.2 Branding 62
4.4 The Business 62
4.4.1 Products and Services 63
4.4.2 Uniqueness 64
4.4.3 Future Products 65
4.5 Business Strategy 65
4.5.1 Corporate Strategy 66
4.5.2 Competitive Edge 67
4.5.3 Pricing Strategy 68
4.5.4 Sales Strategy 68
4.6 Market 69
4.6.1 Market Definition 70
4.6.2 Key Market Segments 70
4.6.3 Market Trends 71
4.6.4 Target Market 71
4.7 Competition 71
4.7.1 Direct competition 71
4.7.2 Indirect Competition 72
4.7.3 How we compare 72
4.8 Market Analysis 72
4.8.1 Market Growth 73
4.8.2 Position 73
4.8.3 Pricing 73
4.8.4 Sales Strategy and Projection 73
4.8.5 Distribution 74
4.8.6 Advertising and Promotion 74
4.9 Finances 74
4.9.1 Costs 75
4.9.2 Breakeven Analysis 76
4.9.3 Profit and Loss Accounts 76
4.9.4 Balance Sheet 77
4.9.5 Performance Ratios 77
4.10 Concluding Remarks 79
References 79
5 Brands that connect create di erences that matters 81
5.1 Introduction 82
5.2 Why Branding Matters 83
5.2.1 The Branding Evolution 84
5.2.2 The Dynamics of Trust!trust 85
5.3 The Doing Part of 'Branding' 86
5.3.1 A Brilliant Idea 86
5.3.2 Be Useful 86
5.3.3 Be Credible 87
5.3.4 Have a Dominant Proposition 88
5.3.5 Brand Check your Idea 89
5.3.6 Belief Systems Influence Behavior 90
5.4 The Secret Sauce: Tell a Great Story 92
5.5 World Beating Attitude 95
5.5.1 Who Else is out There? 96
5.5.2 Do your Homework 97
5.6 Name it. Name it Good. 97
5.6.1 Taglines can make Things Simple, not Dumb. 99
5.7 Brand Strategy (is not a Dirty word) 100
5.7.1 Make Sense to your Advocates and your Customers 101
5.7.2 A Word on Industrial/Tech Branding 103
5.8 A Coherent Visual Identity 106
5.8.1 A Central Visual Image 107
5.8.2 But what about my Logo? 107
5.8.3 Brand Touchpoints 108
5.9 A Final Thought 109
References 110
6 The Marketing of Your Business Is Your Business 111
6.1 Introduction 112
6.2 Definition of Marketing and Marketing Communication 113
6.2.1 Identifying your Target Market 113
6.2.2 Market Research for new Companies, Products, or Services 113
6.3 Target Market Size and Trends 114
6.3.1 Segments 115
6.3.2 Competition 116
6.3.3 Market Cycles 117
6.4 Demand Indicators - Keyword tools 118
6.4.1 The Value Proposition - Features TELL, Benefits SELL 119
6.5 Evaluating your Market Research 120
6.6 Your Marketing Strategy 121
6.6.1 Monitoring Reputation 122
6.7 Promotional Techniques 123
6.7.1 Offline Marketing 123
6.7.2 Online Marketing 124
6.7.3 Websites 125
6.7.4 Search Engine Optimization 126
6.7.5 Website Analytics 127
6.7.6 Affiliate Marketing 127
6.7.7 Email Marketing 127
6.7.8 Social Media 128
6.8 What is Social Media all about and why is it important for Business? 129
6.8.1 FaceBook Facts 130
6.8.2 YouTube, Vimeo and the use of Video for Business 130
6.8.3 Twitter 132
6.8.4 Branding and Twitter 132
6.9 Case Studies and Referrals 133
6.10 Conclusions 133
7 Intellectual Property 135
7.1 Why intellectual property is important 136
7.2 Types of intellectual property protection 137
7.2.1 Copyright 137
7.2.2 Trademarks 138
7.2.3 Patents 139
7.2.4 Know-How 141
7.2.5 Design protection 141
7.3 Ownership of intellectual property 142
7.4 Information from intellectual property 143
7.5 How to decide how intellectual property applies to your company 146
7.6 What to do to protect your Intellectual Property 150
7.6.1 Copyright 150
7.6.2 Design Right 150
7.6.3 Registered Designs 150
7.6.4 Trademarks 151
7.6.5 Patents 152
7.7 Summary 156
8 Finance 157
8.1 Why do I need a Financial Plan? 158
8.2 Types of Business Structure 159
8.3 Sources of Finance 160
8.4 Main Components of the Financial Plan 162
8.5 Sales Forecast 163
8.6 Profit and Loss Account 166
8.7 Breakeven 169
8.7.1 Fixed Costs 171
8.8 Cash Flow Statement 172
8.9 Balance Sheet 173
8.10 Building the Financial Model 175
8.10.1 Structure 176
8.10.2 Variables 176
8.10.3 Assumptions 177
8.10.4 Sensitivity Testing - 'What if' 177
8.11 Traps/Causes of Failure 179
9 Preliminary Design and Concept Prototype 183
9.1 Introduction 184
9.2 Finalizing Ideas 184
9.3 Communicating Innovation and Product Di erentiation 187
9.4 Product Definition 188
9.5 Legal and Safety Considerations 190
9.6 IP Considerations 192
9.7 Initial Product Specification 194
9.8 Design Modeling and Prototyping 196
9.9 Concluding Remarks 198
10 Full Product Development 199
10.1 Introduction 200
10.2 Full Product Development in an Educational Context 201
10.3 Functional Prototypes 202
10.4 Product Design Specification (PDS) 205
10.4.1 Preparing a PDS 207
10.5 Detailed Design 208
10.6 Don't repeat the Mistakes of Others 210
10.7 Mass Production Considerations 212
10.8 Automated Assembly 213
10.9 Testing 214
10.10Final Product Definition 215
References 216
11 Case study: Buteos 217
11.1 Marriage 218
11.1.1 Team Roles 219
11.2 Conception 220
11.3 Giving Birth 221
11.4 The Baptism 222
11.5 Growth 223
11.6 Questioning your Motives 224
11.7 Flying the Nest 226
11.8 The Big Bad World 226
12 Student project to commercial project: a complex journey 229
12.1 Introduction 230
12.2 Evolution of the Product 230
12.2.1 Serving Beer 231
12.3 Product Development Insights 231
12.4 Going beyond the Requirements of a University Project Module 232
12.4.1 Securing Protection 232
12.4.2 Product Rethink 234
12.4.3 Protecting Intellectual Property 234
12.5 Part-time Student or Full-time Innovator? 235
12.5.1 Covering the Legal Aspects 236
12.6 Dealing with Potential Customers and Licensees 237
12.6.1 Axiomatic Design 238
12.6.2 Product Architecture 239
12.7 Optimization through Testing 239
12.8 Branding the Company 242
12.9 Branding Websites and Emails 243
12.10Finances 244
12.11'Go For It' Programme 245
12.12Pitching the Technology 245
12.13Design for Manufacture 247
12.14Conclusions 249
References 249
13 Assessment 251
13.1 Introduction 252
13.2 Learning Outcomes 253
13.3 Investment Pitch 255
13.4 Business Plan 255
13.5 Technical Feasibility Study 256
13.6 Peer Evaluation 257
13.7 The Assessment Matrix 258
13.8 Formative and Summative Assessment 259
13.9 Conclusions 260
References 260
14 Final Thoughts 265
14.1 Introduction 266
14.2 Thoughts for Mentors 266
14.3 Thoughts for Students 267
14.4 Future Directions 268
14.5 Final comments 268
Glossary 259
Index 263
