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Evaluating the market potential of a new technology is critical to successful commercialization,
yet it is often overlooked until too late in the process. Without good information
and analysis, business decisions become mere guesswork. On the other hand, a
good market assessment will drive the development of strong commercialization
and business plans, help raise capital, and even assist in negotiating favorable
terms for a licensing deal.
The term "market assessment" means different things to different
people. In general, it is a process of gathering and analyzing information
relevant to a new technology's commercial potential. The process itself may
range from a few phone conversations with knowledgeable acquaintances to a
$50,000 telephone survey and sophisticated statistical analysis. Usually, however,
thorough and cost-effective market research falls somewhere in between.
A cornerstone of good market assessments is objectivity in gathering the data,
and, more importantly, in analyzing and reporting it. Usually, finding information
is not difficult, though finding specific enough information can be time-consuming
and sometimes expensive. Objectively analyzing and interpreting the data is
another matter, however, and this is where technology entrepreneurs can have
trouble, because they have so much invested in their "baby." For
exactly this reason, it is wise to perform enough market research early in
the idea-development process to ensure the commercial potential warrants proceeding.
This market research may be most useful and valuable if it is conducted by
an independent party.
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