Innovation Strategies for Demanding Markets with Dr. Vincent J. Mifsud

INNOVATION STRATEGIES FOR DEMANDING MARKETS Dr Vincent J Mifsud OBE TD Managing Director Caleta Technologies Ltd 3 November 2016

Aims To discuss innovation in the context of some regulated industries in order to: Consider innovation, and some areas that may not be immediately evident if the intention is to make product and create wealth Inform you on the aspects that need to be considered when addressing these more difficult markets Share some personal experience in innovating and new product development (NPD)for these markets Provoke some thought and discussion on innovation as a process Encourage you to consider these sectors for your future careers Entrepreneurship comes in many forms: individuals setting up companies, small teams, individual contribution in larger company environments

Background and agenda Earlier talks within the Future Worlds concept Muj Choudrey SalesForce: Growth, sales and processes Chris Spackmann Dealing with Big Business Josh Valman Making Innovation Happen Context for this Discussion Objectives Personal background to set the scene Context for Innovation Demanding Markets Lessons learnt drawn from examples in various roles Semiconductor R&D instrumentation Medical electronics Defence Electronics SME in instrumentation Aerospace Summary

Personal Background 40 years of experience in engineering, in industry and TA (Army Reserves) Broad engineering background, including defence, medical and aerospace engineering Experienced in strategy, systems engineering and M&A CTO positions in Vickers plc and Cobham General management experience in QinetiQ, Cobham and a high- technology start-up Recently involved in design and implementation of AGP & DGP; strong links into MOD, BIS, EPSRC & universities Started consultancy in Easter 2015 Currently working at ATI, UCSB and a number of large and small companies

Innovation Innovation (Wikipedia) is defined simply as a "new idea, device, or method". However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. What does this mean? Better solutions? New requirements? Unarticulated needs? Application?

Innovation Process

Technology Readiness Level

Context

Innovation Process the grind

Key Messages take-aways Innovation strategies key elements Understand the market need and positioning Evaluate many ideas think around the subject Identify the differentiators and ensure they are significant Question your assumptions Assess your current TRL, and complexity of the offering Consider the NPD process what is needed, and appropriate Evaluate the evolution to TRL7-8, the needs and the risks Decide on your route to market, and your exit strategy Take advice where necessary, no one person knows it all!

Demanding Markets Josh has covered the FMCG and markets with fewer regulatory constraints internal processes dominate innovation Chris has emphasised the need to understand the customer need and processes, especially when interfacing with big business In demanding markets i.e. markets where there are significant regulatory hurdles, or specific customer constraints or expectations Excellence in internal processes is still required Understanding the customer is a given Other factors may dominate product introduction processes / timing Innovation is still possible, indeed essential good opportunities! The UK is well placed in several of these markets

Demanding Markets - characteristics Medical instrumentation Defence Scientific Instrumentation Aerospace Conclusions: Partnership likely to be needed to access market Costs of developing product are high Opportunity to join-up trends and add value Think laterally Good tie in with universities and R&D base Opportunities for complementary funding from government Some areas are ripe for radical change

Examples of innovation Molecular Beam Epitaxy (MBE) Innovation: Scaling challenges New sources gases Measurement Automation Cost engineering Differentiators: Closeness to customer Innovative sources Advanced processes

Examples of innovation Medical Device Innovation: Technology insertion New algorithms Low signal processing Cost engineering Differentiators: Better technology DSP Exploitation of COTS PC Networking (relevant to date) Regulatory processes

Examples of innovation Bradley Armoured Fighting Vehicle Innovation: Technology insertion New modulations User interface Wireless elements Cost engineering Differentiators: Better technology COFDM Exploitation of COTS MESH Robust product soldier-proof Working with difficult customer

Examples of innovation SpectraProbe Innovation: Novel detector Novel configuration Integrated unit Materials Differentiators: Immediate answer Size and weight Configuration Robust product Chose the starting market

Example of future innovation UK Aerospace Strategy Innovation: All electric Cryogenic LH2 fuel Systems Differentiators: Clean Efficient Quality of flight New networks

Summary Shared thoughts on innovation in demanding markets Built on earlier presentations: importance of front-end work Scope in many areas to take advantage of new technology Considered some of the aspects that need to be tackled when addressing these more difficult markets Think through the complete NPD process Partner where appropriate Shared some personal experiences in innovation and new product development (NPD)for these markets Encouraged you to consider these sectors for your future careers, however you wish to innovate and create value Be it individual, small team or within existing companies Support from FutureWorlds, mentors, experts unique opportunity Have fun! The future is yours

Thank you