sen. enzi’s inventors conference april 21, 2006
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Taking Today’s Technologies into Tomorrow’s Markets
Sen. Enzi’s Inventors Conference
April 21, 2006
From Your Garage to the Assembly Line: It’s a Long Way!
Cliff Brown
ADA Technologies, Inc. - Proprietary
Topics
• Introduction to ADA• Business Model• Example that involves
manufacturing• Some of the challenges
ADA Technologies, Inc. - Proprietary
What’s the Game?
• Why are we in business??
– To WIN!!
• Winning is creating realizable value from technology
• Focus on winning as early as possible
• It is a “TEAM SPORT”
Begin with the end in mind! --S. Covey
ADA Technologies, Inc. - Proprietary
Who are we?
20 years old
$40M contract research
28 patents issued & pending
35 staff – 6 PhDs
Demonstrated Commercial
Successes
Littleton
Laramie
ADA Technologies, Inc. - Proprietary
6 Year Trends -- ADA
CAGR = 24% / five years
Revenue Trend
0
1000000
2000000
3000000
4000000
5000000
6000000
2001 2002 2003 2004 2005 Est 2006
ADA Technologies, Inc. - Proprietary
What do we do?
ADA Technologies, Inc. - Proprietary
Business Concept is Focused on Value Creation
$Marketing
IPProduct Development
Planning
Spin-off
Joint Venture
License
Infrastructure
Sell
ADA Technologies, Inc. - Proprietary
The ADA Model
• Focus is on “THE PROCESS” of commercializing early stage technologies
• “THE PROCESS” is invariant to the technology (about 80-90%)
• Corporate value and return to shareholders results from successful commercialization
• Plan for succession/exit of primary shareholders in 5 years +/-
• Try to do only what your are good at!!
• When a technology is mature it is transferred to a separate entity
ADA Technologies, Inc. - Proprietary
Focus on the Hand-off from Product Development to Manufacturing
• ADA will not be a manufacturer but we must prepare for the handoff
You Get What You Order!
ADA Technologies, Inc. - Proprietary
Example
• WeatherPod product, now in production, started in 1999 through an Army Phase I SBIR
• Received Phase II, Phase II+ and Phase III funding from the DOD
• Phase III funding of c.a. $1.5M to transition from prototype to product
• Will be set up as a separate entity to enable generation of shareholder value and groom for sale
ADA Technologies, Inc. - Proprietary
The Essence of the Challenge: Culture Shift
• R&D Culture
– Academic
– Creative
– Free flowing; schedule not critical
– Not typically driven by a product specification
– Soft Deliverables
– Make one and celebrate!
ADA Technologies, Inc. - Proprietary
• Product Development / Manufacturing Culture
Big difference between Invention and Product Development!
– Customer expects product to meet their specification & work more than once
– Set delivery date
– Should be able to replicate production
– Typically fixed price ∴ increased risk
– Fix it when it breaks; provide support ie customer service
– Requires A-R attention to detail
The Essence of the Challenge: Culture Shift
ADA Technologies, Inc. - Proprietary
Lessons Learned (We learned A LOT!)
• Management, Leadership, Control and Communication
– In the beginning
• Spend the time to accurately estimate the work required; get independent assessments
• Be realistic --- no success oriented schedules• Include detailed testing requirements• Plan work down to weekly “mini-milestones”• $$ cannot be customer driven• If invention is required factor in risk (many more $$)• Management resources must be planned in
– During Project• No leadership by committee; need single POC• Be realistic about capabilities of personnel• When there is a problem, promptly fix it• Have weekly meetings to assess progress and compare to plan
– Be realistic– Financial review 1/month
ADA Technologies, Inc. - Proprietary
Lessons Learned (Development Processes Required)
• Establish and Follow Processes– Enforce all
processes: No exceptions!
• The processes are foreign to typical R&D
• We started with the null set with regard to processes
• Processes must be documented
Part numbers RMA system
Problem tracking
Incoming parts receiving
Engineering changes
Transfer of parts to vendor
Revision control
Equipment loan to manufacturer
Change Control Board
Testing
Release Software development
Sales quote Inventory control
ADA Technologies, Inc. - Proprietary
Lessons Learned -- Miscellaneous
• Don’t start manufacturing until the design is complete
• Allow plenty of time and money for testing
• Consider an external test group
• Minimize function creep
• Vendor selection is critical
– Multiple quotes
– Check references/perform due diligence
– Match background to project
• Design for manufacturing to the extent possible
(remember you get what you order!)
ADA Technologies, Inc. - Proprietary
From Garage to Manufacturing: Long trip but possible!
• Realize up front that there are significant challenges
• Acknowledge cultural difference
• Enlist the right help early on
• Develop and implement the right processes then follow them!
• Plan, Lead, Organize and Control
ADA Technologies, Inc. - Proprietary
Contact Information
ADA Technologies, Inc.8100 Shaffer Parkway, Suite 130Littleton, CO 80127
---AND---
Wyoming Technology Business Center1000 E. University AveLaramie, WY 82071-2000
cliffb@adatech.com (303) 792-5615 www.adatech.com
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