new product development consultants,new
product innovation,research and development,engineering,product
design,product feasibility,product design criteria,process
development,prototypes,field trials,product manufacture,process
validation,product specifications,process specifications,intellectual
property due diligence,technology transfer,medical devices,pharmaceuticals
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Overview: The following intellectual property,
new product idea, patenting, product development, product and process
manufacture, product licensing, product launch, commercialization and
market statistics, data and other information has been compiled from
various public sources as well as our own library.
We believe that this information is
correct and applicable not only for the US but European and Japanese
markets. We will be happy to expand and/or correct this information
if you wish to provide us with your own valid data.
1998
Only 10% or 40
ideas/products were accepted for further due diligence/review and
commercialization by an outside party out of 400 ideas and/or intellectual
properties (IP) submitted by numerous sources. Thereafter, 7.5% or 30
IPs were approved for licensing and only 5 products made it to the market.
That is, a 1.25% (5/400) Overall Commercialization Success Rate (OCSR).
An outside
party incurs approximately $50,000 out-of-pocket costs to evaluate the
merit of an IP.
The
out-of-pocket costs for transformation of an already worthy IP into a
product are in the $250,000 to $500,000 range. The out-of-pocket costs to
bring one of these worthy products to market are in the $2 million range.
The research
and development out-of-pocket costs per patent issued for high technology
and pharmaceutical products are in the $4 and $5 million range,
respectively.
Source: Private communication.
1998
The National Institute of Health
(NIH) collected royalties in the $200,000 range per each executed license
for FY 1997-98.
1995
The weighted average
cost for the development and commercialization of a drug is in the $200
million range (we have assumed a 20% net profit.)
Source: Private communication.
1995
Group EFO, 1995 Innovation Survey:
Report on new products, Group EFO Limited: Weston, CT (1995.)
Conclusions: OCSR = 4% (25
ideas/success.)
Sample: 103 marketers from 83 firms;
consumer packaged goods.
1990
Povl A. Hansen, Publicly produced
knowledge for business: when is it effective? Technovation 15, no. 6
(August 1995): 387-397.
Conclusions: OCSR =
0.3% (7% or 350 out of 5,000 ideas were retained as original and worth
pursuing; 1.9% or 94 passed the next level of assessment in terms of
patentability and got licensed to companies; 0.6% or 30 products actually
got produced by the licensee; and 0.3% or 15 products were still in
production in 1991.)
Sample: 5,000 ideas collected from
Danish inventors and public sector researchers between 1985 to 1990.
1990
Page, Albert L. Assessing new product
development practices and performance: Establishing crucial norms. Journal
of product innovation management 10(4): 273-290 (September 1993) and
Page, Albert, L. Results from PDMA's
best practices study: The best practices of high impact new product
programs. The EEI/PDMA conference on new product innovation (June 1994.)
Conclusions: OCSR =
9.1% (11 ideas/success; npd success rate as a percentage of ONLY the
marketed products = 58%.)
Sample: 189 survey responses; broad
industry cross-section; 79% goods.
1982
Booz, Allen and Hamilton. New
products management for the 1980s. New York: Booz, Allen and Hamilton,
1982.
Conclusions: OCSR =
14.3% (7 ideas/success; npd success rate as a percentage of ONLY the
marketed products = 65%.)
Sample: 150 interviews; 700 survey
responses; broad manufacturing cross section.
1978
Summer Myers and Eldon E. Sweezy, Why
innovations fail, Technology Review (March-April 1978): 41-46.
Conclusions: 75% of
npd projects that eventually failed were stopped only after they had made
it to the pilot test stage; as many as 20% were actually stopped at the
final, most expensive stage of production installation; approximately 53.5%
failed in the market (as many as 27.5% of npd marketed failed in the market
because of "uncontrollable" market forces; another 26% failed
because of limited sales potential and an inability to find buyers for
something that as apparently developed "in the public interest.")
Sample: 200 failed innovations.
1968
Booz, Allen and Hamilton. Management
of new products. New York: Booz, Allen and Hamilton, 1968.
Conclusions: OCSR =
1.7% (58 ideas/success; npd success rate as a percentage of ONLY the
marketed products = 67%.)
In
July 1999 we chaired the "Biotechnology and Pharmaceutical Patents,
Licensing, Trademarks and Intellectual Property" conference in San
Francisco, CA. In December 1999 we presented a seminar on
"Technology Transfer - Developing an Effective Documentation
Management System" in Atlanta, GA.
We also have
developed and been using successfully the following powerful, proprietary
tools:
Intellectual
Property Due Diligence technical and business feasibility template.
Opportunities Assessment template.
User needs, perceptions and preferences; product claims and design
specifications template.
New product development project management template.
Process development and validation templates.
Examples
of our due diligence work include:
- Established medical
device manufacturer managed a 40 people business unit with $3.2
million annual sales but zero net profit. The subject unit
manufactured, assembled and marketed products for the radiology and
related market segments. Typical materials and/or components
included electronic hardware and software, electro-mechanical gauges,
plastic and metallic materials. We utilized the methodology template
described herein and provided corporate management with
recommendations for dramatically improving net income. Specifically:
- Performed critical
evaluation of the strengths and weaknesses of current mfg.,
engineering and Q.C. operations and/or depts.
- Offered recommendations
for the resolution of identified operational and other business
bottlenecks, i.e. structure and responsibilities for available
resources, manufacturing process flow, quality issues for product
components, how to avoid the "fire fighting" approach, etc.
- Provided alternatives
for resolving product design and/or manufacturing defects.
- Made specific
suggestions for improving overall productivity, i.e. how to triple
manufacturing capacity while having free resources for new product
development.
- Presented recommendations
for the business unit’s regaining of the trust and confidence of
their corporate management, salesforce and customer concerning their
ability to manufacture and market a product line of profitable, high
quality medical products.
- Provided a list of
selling-off, acquisition, merging and/or alliance development
strategies.
- Start-up medical device
company manufactured patented fiber-optic technology catheter
products. Typical materials and/or components included plastic
components, adhesive epoxies and other chemicals, electronic hardware
and software, steel and fiber-optic components. Worked closely with
another consultant and help prepare the company to be sold to a
Fortune 100 medical device manufacturer. Specifically:
- Streamlined the manufacturing
processes and automated a number of critical, labor-intensive
operations. Identified and resolved a number of safety and
environmental hazards related to chemicals ventilation and mfg.
site’s soil contamination.
- Resolved a number of
quality product defects related to calibration and stability of
electronic hardware; surface treatment and subsequent adhesive
bonding of plastic, glass and metallic product component surfaces.
- Refocused activities of
engineering staff and helped them apply proprietary know-how and
other technologies for expanding their product line.
- Helped in the
development and implementation of outsourcing strategy for improving
net income profitability requirements set by the acquiring
company.
- Fortune 100 medical
device manufacturer was contemplating the purchase of a 70 employee
medical company with an array of innovative products for the operating
room and intensive care suites. Typical materials and/or
components included silicone extruded and molded components, steel and
rubber materials. Helped in the due diligence evaluation which
resulted in the acquisition of the start-up company by the established
medical device manufacturer. Specifically:
- Reviewed the sound
design of all new products and their related manufacturing processes.
Made suggestions to start-up company for and verified the
satisfactory resolution of various incoming material, in-process and
operational control problems.
- Developed mutually
beneficial strategies with the start-up company’s key vendors and
customers for the reduction of material, product costs while
maintaining desirable quality and performance standards.
Revised manufacturing
strategy and developed overall action plan for controlled market test of
new medical device product.
Examples
of our new product development work include:
- Assisted sutures
manufacturer improve by 52% and 15% respectively its quality and
cost. The cleaning, siliconization and drying cycles were
reduced to two from twenty four hours. Resulted in $1 million
annual savings. Helped medical device manufacturer eliminate a
chronic liquid filling product defect and increase its production rate
by 20 fold. Resulted in $300 thousand annual savings.
- Assisted plastic bottle
closures manufacturer resolve chronic quality defect. Made
tooling and equipment modification recommendations which resulted in
the renewing of long term purchasing contract with previously unhappy,
key customer, valued at $3.5 million. Assisted high speed color
copier equipment manufacturer resolve stubborn contamination
problem. Established chemical nature of contaminant and recommended
solution alternatives. Annual cost savings at $370 thousand.
- Helped diagnostics
instrument manufacturer improve by 125% rehydration of multi-component
powder reagent. Directed the optimization of both the client’s
and its vendors’ manufacturing processes by adjusting granule particle
size distribution, bulk density, mixing, concentration and drying of
reagent mixture. Assisted liquid medication manufacturer resolve
chronic product defect. Recommended surface treatment
technologies for modifying wettability and spreading of utilized
liquids and help company improve by 28% product quality. Resulted in
$2.5 million annual savings.
- Developed outsourcing
manufacturing strategy for cardiovascular products manufacturer.
Presented advantages and disadvantages of each recommended option and
helped in the establishment of new manufacturing plan.
- Improved by 32% sharpness
of needle for blood gas syringe at manufacturing plant of a sister
division. Resulted in timely launch of "Precision
Glide" worldwide advertising campaign and turned around
politically explosive situation. Improved by 35% dissolution of
lyophilized heparin powder for blood gas syringe. Optimized granule
particle size, binders, concentration and freeze drying
parameters. Resulted in timely launch of new product, a $10
million market opportunity.
- Improved by 50% quality
of blood collection tubes with computer model predicting
performance. Established and controlled silica powder’s
particle size distribution and agglomeration, the most important
process parameters. Resulted in $2 million annual savings.
- Identified and satisfied
unmet needs of customer by inventing and completing quantitative
competitive evaluation of suction catheters and membranes for suction
canisters. Solved air flow restriction and sealing problems,
which reversed $500 thousand product back orders. New
advertising campaign resulted in $5 million sales gain. Qualified PVC
suction catheter kits for radiation sterilization. Evaluation
schedule compressed from twelve months to six. Resulted in $125
thousand annual savings.
- Qualified new bottom web
for sterile solution tray with high volume form/fill/seal packaging
equipment. Help redesign and build packaging dies in three
months. Reduced tubing and adapter costs of suction catheter by
$175 thousand annually. Solved seventeen year old extrusion and
molding problems.
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Costas B. Chantzis,
CEO
Tel.:
908.387.9276
Fax: 908.387.0447 Email
Home
Home
Who We Are
Unique Strengths
Our Services
Projects Resume
Your Next Step
Write Us
What's New
Articles
Ask
SolvWizSM For FREE
TechnoBusiness
Solutions
403 Christie Ct.,
Stewartsville, NJ 08886 USA
Costas B. Chantzis,
CEO
Tel.:
908.387.9276
Fax: 908.387.0447 Email
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