The objective of the Technology Leverage is to create new value from a companies existing IP. Regardless of whether a certain IP is being used in a sector or sitting in a drawer, it still has the potential to address a need in a different sector, creating a new revenue stream.
The process is divided in 4 steps:
1 – Characterise the technology
First, you need to understand the underlying value of the technology. Escentially, it is de-linking the technology from the application by identifying its core functions.
2 – Identify potential applications
Using a variety of methods, you need to understand what problems could you solve with your newly described functionalities. This will lead to new potential applications in different sectors.
3 – Select new applications
This is the start of the re-linking process. From the pool of potential applications you need to decide which ones to pursue. This can be a tricky steps as it involves both technical and strategic considerations, so a multidisciplinary approach is key. At this stage it might be necessary to invest in re-engineering the technology for the new application.
4 – Choose the best entry mode
At this point you need to consider what is the best way to approach the new market. Depending on the characteristics of the technology and the market, there are a few options to consider, from launching a product to licensing the IP.
This methodology is a very effective way to create new revenue streams without necessarily deviating too much from the core business. Nonetheless, many companies neglect this opportunity and shy away from small investments with high potential ROI to avoid the risk. Although risk-less innovation doesn’t exist, relying on a proven methodology and experience will drastically reduce the risk.