technology licensing business plan

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How to Develop a Successful Technology Licensing Program

Six practices can help companies implement licensing as part of an open innovation strategy.

• Innovation Strategy

Massachusetts Governor Deval Patrick (left) and Massachusetts Energy and Environmental Affairs Secretary Ian Bowles (right) at advanced battery maker A123 Systems.

Image courtesy of Flickr user Office of Governor Patrick.

In today’s challenging economy , many industrial companies are trying to capture additional value from their technologies by licensing their intellectual property to other organizations, including direct competitors. Such outward transfer of a company’s own proprietary technology has only recently become an important dimension of corporate strategy, as part of a trend toward open innovation. (Open innovation can involve both bringing knowledge from outside into the corporation and also transferring technologies from within the corporation to external partners.) By licensing their proprietary technology, companies attempt to achieve a sufficient return on R&D, and licensing often goes beyond a marginal activity involving residual technology.

Some companies license technology primarily to achieve additional revenues. A few, such as Hewlett-Packard and Dow Chemical, generate hundreds of millions of dollars in annual royalties. Other companies license technology primarily to achieve strategic benefits, such as establishing a technology standard in an industry, entering new markets or cross-licensing to gain access to external knowledge. Despite these potential benefits, licensing also involves substantial risks. In particular, a company that transfers its “corporate crown jewels” — in other words, competitively relevant technology — may weaken its strategic position by strengthening potential competitors. For that reason, many companies traditionally have been reluctant to transfer technology.

Even companies that are actively seeking to license technology frequently fail to reap benefits from their efforts. Companies often have difficulty identifying licensing opportunities and potential licensees. A company owns a potential technological solution for specific problems, yet it faces the challenge of identifying other profitable applications, which may be in completely different industries. What’s more, transferring technology is a complex process, and the licensor often needs to actively support the technology adoption at the licensee. These managerial challenges underscore the importance of organizing technology licensing activities effectively.

To identify organizational success factors for technology licensing, we conducted a benchmarking study in medium-sized and large industrial European companies. After analyzing the academic and managerial literature on technology licensing, we carried out exploratory interviews with 35 experts in 25 companies to gain a detailed understanding of organizing for technology licensing.

About the Authors

Ulrich Lichtenthaler is a professor of innovation and organization at WHU — Otto Beisheim School of Management in Vallendar, Germany. Holger Ernst is a professor of technology and innovation management at WHU — Otto Beisheim School of Management. James Conley is a clinical professor at the Center for Research in Technology & Innovation at the Kellogg School of Management at Northwestern University in Evanston, Illinois.

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When Licensing New Tech Is Better Than Building It In-House

• Solon Moreira,
• Thomas Maximilian Klueter,
• Stefano Tasselli

R&D isn’t always the answer.

Given that the development of new technologies by competing firms has the potential to destabilize an industry’s competitive landscape, managers need to carefully assess the alternatives on which they rely to continuously adjust their firm’s R&D. Using technology licensing, firms can be in a unique position to directly and quickly respond to competitors’ technological innovations. This is particularly useful when firms are faced with threats that require a prompt reaction that will allow them to remain competitive and sustain their capacity to innovate.

Most companies fear competition from a rival’s product innovations and the risk of falling behind their industry’s technological frontier. Firms affected by such competitive pressure usually react by trying to strengthen their R&D capabilities and close the gap between their and their rival’s technologies as quickly as possible. But how exactly can firms catch up?  Our research shows that rather than innovating from scratch in house or partnering with others in strategic alliances, the most effective solution may be to buy access to an already existing technology and incorporate it into your R&D.

• Solon Moreira is an assistant professor of strategy and entrepreneurship at Fox School of Business, Temple University. His research examines the link between innovation and firm performance, focusing particularly on how firms can tap into external sources of know
• Thomas Maximilian Klueter is an associate professor of entrepreneurship and analysis of business problems at IESE Business School. His research focuses on how established and emerging firms manage technological change and the strategies that firms pursue to develop and commercialize new technologies.
• Stefano Tasselli is an Assistant Professor at the Rotterdam School of Management, Erasmus University. He received his PhD from the University of Cambridge. His research interests include the micro-foundations of organizational social networks, and organizational theory. Specifically, his research focuses on the interplay between characteristics of individual actors (personality, motivation, and cognition) and network structure in explaining outcomes of importance for individuals and organizations.

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Licensing as a revenue model for technology products

A licensing revenue model allows technology producers to monetize their new technology products  by licensing them to other companies so that they may be integrated into an end-product.

Applicable industries

The licensing revenue model is applicable to most industries, including:

• Information and communication technologies (ICT)
• Life sciences

Relevant products for the licensing model

Licensing is most commonly applied to innovations that involve sophisticated technology protected by intellectual property (IP) agreements . The innovation itself may not be a complete product, and may need to be integrated into a broader offering in order to create value for the end-user.

Customer relationships

Licensing agreements rely on relatively intimate and long-term relationships with customers , because all parties must exchange certain (confidential) information , and because the fundamental economics of a licensing arrangement are long-term in nature.

Marketing issues related to the licensing model

The goal of marketing technology for licensing is to drive a deep understanding of the potential applications of the innovation among key industry insiders. Successful marketing for technology licensing focuses on:

• Creating visibility for the technology through industry presentations
• Establishing a presence in academic and industry journals
• Authoring whitepapers
• Evangelizing the innovation

Financial and strategic implications of licensing

Licensing revenues can be structured in different ways, with upfront payments by the licensee or with payments that are revenue-dependent. To license successfully, a company will require the funding necessary to develop their technology to the point where it becomes a suitable add-on to the offering of its licensee partner. Royalty fees may accompany licensing revenue on a per-unit-sale basis, or the parties may use some other transparent means of measuring usage of the licensed technology.

An important consideration in structuring licensing agreements is the portion of income derived from licensing revenue versus that deriving from royalties. Royalty revenue is dependent on the selling ability of the party integrating the licensed technology, and the size of the addressable market for the end-product.

Strategically, licensing may run the risk of exposing IP to the party integrating the technology into their products. It is therefore important to ensure that patents are defensible and that other IP is protected.

Key metrics

If the licensed product is a tangible item, costs are the most important metric to monitor.

Costs and benefits of the licensing revenue model

Licensing works well in situations where developing an entire product independently is not feasible. The trade-off is that since the offering comprises only one element of a complete product, it may hinder the development of a strong company profile, unless an Intel Inside ® co-branding option is available.

Revenue models: Low-value transactions in ICT, medical devices and biopharmaceuticals

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Home » Innovators » Technology Commercialization Process

Research & Ideation

Academic discoveries may lead to innovation that can be translated into products and services in the marketplace and/or be used as technology foundation for new ventures.

• Communicate with Business Development and Licensing teams at CTL early in your ideation process.
• Learn more about entrepreneurship and commercialization through CTL’s outreach events and educational programs .

It’s important to disclose to CTL your inventive ideas before any public disclosure such as a publication or a public presentation. A disclosure can be based on patentable ideas, software and copyright materials, tangible materials with commercial potential, or plant materials. Submit your disclosure.

A professional from the Business Development and Licensing teams will engage with you to assess about the technology and market potential, and plan protection and commercialization strategies together.

Factors to consider for evaluation

• What problem(s) does the invention solve?
• What is the potential market and the commercial value?
• Are there competing technologies available or under development? How much better is the new technology than its competitors?
• How can the IP be protected and leveraged?
• Development stage of the invention?
• Previous publications or patents related to the invention?
• Potential industry partners to develop products or services?
• Potential to create a new business enterprise?

IP can be protected through patents, copyrights, trademarks, confidentiality, among other means for different commercial applications.

Not all invention disclosures submitted to CTL are appropriate for patenting. If the decision is made to go ahead with a patent application, CTL will manage the process.

Patentability:

United States patent law requires that an invention be:

New or Novel (more)

The invention must be demonstrably different from publicly available ideas, inventions, or products (so-called “prior art”). This does not mean that every aspect of an invention must be novel. For example, new uses of known processes, machines, compositions of matter and materials are patentable. Incremental improvements on known processes may also be patentable.

Useful (more)

The invention must have some application or utility or be an improvement over existing products and/or techniques.

Non-obvious (more)

The invention cannot be obvious to a person of “ordinary skill” in the field; non-obviousness usually is demonstrated by showing that practicing the invention yields surprising, unexpected results.

Provisional Patent Application:

To protect the invention after you disclose it, CTL may submit a provisional patent application through one of the law firms it works with. A provisional patent application is a simple document that functions as a year-long “placeholder” should you and CTL decide to file a formal patent application. The decision to file a formal patent application will be based in part on the amount of industry interest expressed during the twelve months window. Therefore, CTL’s business development and licensing teams will actively market the invention to companies to find a licensee.

Your participation in this marketing process is critical. If at the end of the twelve months period an invention is generating a sufficient amount of industry interest, CTL will file a formal patent application on your behalf. The formal application is a complex document that will require your time and attention.

While the patent attorney and CTL’s IP team will handle the paperwork, your input will be essential as the patent application will need to demonstrate that the invention satisfies three criteria: utility, novelty and non-obviousness. Also, the patent application needs to provide sufficient written description that an expert in the field can independently re-create and use the invention. Roughly half of inventions disclosed to CTL will be put into the patent process.

Formal Patent Application and Prosecution

Once the formal patent application is sent to the US Patent and Trademark Office (USPTO), it may be up to two years before the patent application is reviewed by a USPTO Examiner. When the USPTO Examiner delves into your patent application, they will challenge whether it is indeed new, useful and non-obvious. They will also challenge whether the written description in the patent application is adequate. The patent attorney, CTL, and you will need to respond; this is an iterative process between the USPTO, the patent attorneys, CTL, and you that can span a few months to a few years. Average costs to patent an invention in the United States range from $20,000 to $70,000 in legal fees. If patent protection is pursued in countries outside the United States, these legal fees skyrocket. Clearly, an invention must have potential market value in order to justify its patenting costs.

In collaboration with inventors, CTL generates marketing materials, identify and contact target companies, entrepreneurs and investors through web posting, campaigns, social media, events, and most importantly, through networks with business contacts of CTL and inventors, alumni of the university and the regional ecosystem. Your engagement with CTL through the marketing process is invaluable to the success. Network such as Cornell Innovation and Venture Advisor group and CTL Practicum will help the marketing process.

The cycle of evaluation, protection and marketing is a continued process that will be repeated based on market feedback of the technologies.

Over the years, Cornell technologies have been licensed to industry partners all over the world to develop these inventions into products and services for public good. If you are interested in licensing a technology from Cornell, contact a professional from the Business Development and Licensing team at CTL.

More about licensing to Established Companies and Startups can be found at the New Venture page and the Industry page .

Technology Advancement and Venture Support through gap funding series and ecosystem

Cornell’s Ignite gap funding series will support the acceleration of technology commercialization, venture creation and growth and corporate collaboration. More about Ignite and the ecosystem.

Commercialization, Product, Revenue and Impact

CTL continues to partner with licensees for technology commercialization. CTL tracks the diligence of the licensee in its development. Occasionally, because of industry environment changes, licensees and CTL will make reasonable amendments to the original license.

For net income from the licensing of an invention, CTL will distribute according to Cornell policy:

• the inventor (if multiple inventors, as a group) will receive one-third
• one-third is split between the principal inventor’s college (60%) and central university research (40%)
• the university will retain the remaining one-third to help with the cost of the university technology transfer program

New products or services and successful startups will satisfy market and societal needs, leads to economic development, and generate impact for Cornell research and innovation.

Partnership with companies, licensees and successful entrepreneurs, will contribute back to the research and education engine of the university through sponsorship, donation and collaborations.

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Technology Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their technology businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a technology business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your technology business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a technology business, or grow your existing technology business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your technology business in order to improve your chances of success. Your technology business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Technology Businesses

With regards to funding, the main sources of funding for a technology business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for technology businesses.

Finish Your Business Plan Today!

If you want to start a technology business or expand your current one, you need a business plan. Below are links to each section of your technology business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of technology business you are operating and the status. For example, are you a startup, do you have a technology business that you would like to grow, or are you operating technology businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the technology industry. Discuss the type of technology business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of technology business you are operating.

For example, you might operate one of the following types of technology businesses:

• Network technology : this type of technology company specializes in providing the computers, printers, scanners, and phones within an organization and making sure they are all linked together in order to work seamlessly with one another.
• Software technology: this type of technology company specializes in providing and/or installing the appropriate software needed for the business. This will include the programs and productivity tools for the organization’s computer network.
• Customer relationship technology: this type of technology company focuses on providing a customer relationship management system (CRM) that keeps track of all customer interactions and information in order to consistently provide exceptional customer service.

In addition to explaining the type of technology business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of client companies served, number of positive reviews, reaching X amount of client companies served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the technology industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the technology industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your technology business plan:

• How big is the technology industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your technology business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your technology business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, small businesses, and local companies that need technological services.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of technology business you operate. Clearly, large companies would respond to different marketing promotions than small businesses, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other technology companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes technology companies such as Geek Squad, local stores that sell and rehab tech equipment, online technology companies, etc.

With regards to direct competition, you want to describe the other technology businesses with which you compete. Most likely, your direct competitors will be technology businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of technology do they provide?
• What areas do they serve?
• What type of technology company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Is your technology business more capable than the competition?
• Will you provide technology services that your competitors don’t offer?
• Will you provide faster technology service?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a technology business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of technology company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to technology services, will you provide computer repair, 24/7/365 service, phone installation, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your technology company. Document your location and mention how the location will impact your success. For example, is your technology business located near an office complex, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your technology marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Website and SEO marketing
• Commercials
• Social media marketing
• Local radio advertising
• Business networking

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your technology business, including updating technology, client communication and scheduling, marketing, and implementing and installing the new technology for a client.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client company, or when you hope to reach $X in revenue. It could also be when you expect to expand your technology business to a new location.  

Management Team

To demonstrate your technology business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing technologys. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a technology business or are connected to a wide network of professional organizations that frequently utilize technology.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client company at a time or multiple new client companies ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your technology business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a technology business:

• Cost of technology to be installed
• Cost of software and equipment
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of technology services, types of clients you will be targeting, and the areas your technology business will serve.  

Putting together a business plan for your technology business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the technology industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful technology business.  

Technology Business Plan FAQs

What is the easiest way to complete my technology business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Technology Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of technology business you are operating and the status; for example, are you a startup, do you have a technology business that you would like to grow, or are you operating a chain of technology businesses?

Don’t you wish there was a faster, easier way to finish your Technology business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

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What is Technology Licensing and Why Does it Matter

• Updated On: April 18, 2023
• By : Amol Wagh

The world of technology moves faster than ever before. Technology is in every sector, from healthcare to energy and more. With each innovation comes a need for protection and comparison between the different ideas that drive our lives forward. That’s where technology licensing comes in— it’s essential to ensure that innovative ideas are protected, shared responsibly, and accessible equally. But understanding what technology licensing is and why it matters can be confusing. So, let’s dive into this topic further to understand how licenses benefit everyone involved.

What is Technology Licensing and How Does it Work

Technology licensing allows another party to use or access a company’s patented technology, intellectual property, or other valuable assets for a specified period in exchange for a fee or royalty. Technology licensing is common among businesses in various industries, including software, pharmaceuticals, biotech, and manufacturing.

When a company licenses its technology, it grants third-party access to its proprietary technology, allowing them to use it for commercial purposes. The license agreement will typically outline the scope of the technology, including any limitations on its use and the license duration.

Technology licensing can take different forms, including:

• Patent Licensing: It involves licensing the rights to a patented technology or invention to another party. The patent holder retains ownership, while the licensee can use the technology for a specified period.
• Copyright Licensing: This involves licensing the rights to copyrighted works, such as software, music, or written material, to another party. The licensee can use the copyrighted work in exchange for a fee or royalty.
• Trademark Licensing: This involves licensing the rights to use a company’s trademark, logo, or brand name to another party. The licensee is allowed to use the trademark for a specific purpose or in a specific market.
• Trade Secret Licensing: It involves licensing the rights to use a company’s trade secrets, such as confidential information or processes, to another party.

Technology licensing allows a company to monetize its intellectual property by licensing it to third parties. The licensee, in turn, gains access to technology that they may have yet to be able to develop themselves. The licensing agreement will typically include a fee or royalty payment the licensee must pay the licensor.

The licensing agreement will also outline the terms and conditions of the license, including the scope of the license, any limitations on its use, and the duration of the license. Business owners must understand Technology, Media & Telecommunications Law when entering into Technology Licensing Agreements. The agreement will also include provisions for resolving any disputes between the parties.

Benefits of Technology Licensing for Businesses

By licensing their technology to third parties, businesses can have the following benefits:

Revenue Generation

Licensing a company’s technology can provide a new source of revenue. Licensees are typically required to pay a fee or royalty to the licensor for access to the technology, allowing companies to monetize their intellectual property without investing in costly research and development.

Protection of Intellectual Property

Safeguard your intellectual property by licensing with a carefully crafted agreement. The license should be tailored to prevent any unauthorized usage or disclosure of the company’s information. Doing so will secure your business , providing you peace-of-mind that nothing is being misused without your knowledge.

Access to New Technology

Technology licensing can provide businesses access to new technology and ideas without performing costly research and development. This can be especially beneficial for companies looking to quickly enter a new market or develop a new product or service.

Cost Savings

Rather than invest extensive funds and resources in researching and designing new technology, companies can turn to a cost-efficient solution: technology licensing. This allows them to funnel their efforts into providing top-notch products or services instead.

Collaboration Opportunities

Through technology licensing, businesses are presented with unique opportunities to collaborate and access new technologies; they can further share their expertise and experience with other companies. Not only does this promote an efficient product or service delivery process but it allows them to set themselves apart from the competition in the market as well.

Competitive Advantage

Leveraging technology licensing can help businesses stay ahead of the competition, allowing them to gain a competitive edge in the market and maximize their profitability. With access to cutting-edge technologies and ideas, companies are able to develop novel products or services that appeal more strongly to consumers – all while gaining a larger market share with ease.

Technology licensing can be a highly effective strategy for businesses looking to monetize their intellectual property and access new technology without incurring high costs. By understanding the benefits of technology licensing, businesses can make informed decisions about leveraging their intellectual property. Additionally, businesses should ensure that their technology licensing agreements clearly outline the terms and conditions of the license, including any limitations on its use and the duration of the license.

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A Comprehensive Guide to Crafting a Technology Plan for Business Success

Utilizing an MSP goes beyond mere cost savings, extending to the alleviation of operational burdens. In the current landscape of business planning, technology isn't just a tool for operations; it stands as a pivotal strategic asset. Failing to adapt or innovate technologically can pose a significant risk of lagging behind. To successfully navigate the intricate path of digital transformation, it is crucial to pause and reflect before immersing yourself in planning. The following is an in-depth guide designed to assist you in formulating a resilient technology plan that not only supports but propels your business forward.

HOW TO START?:

Start by envisioning your organization's technological framework, similar to an architect drafting a blueprint for a complex structure. This blueprint, influenced by your foresight and vision, guides all subsequent decisions.

During the brainstorming phase, think big without restricting ideas. While acknowledging budget and resource constraints, explore diverse technological possibilities beyond standard tools. Consider leveraging emerging tech like AI for customer experiences or applications for security, as big ideas often inspire practical steps.

Visualize your technology’s future throughout the year. Ask if your current tech supports upcoming advancements and anticipate emerging technologies and their potential impact.

HOW CAN AN MSP BE USEFUL IN TECHNOLOGY PLANNING?  

Managed Service Providers (MSPs) play a crucial role in technology planning for businesses by offering specialized expertise, resources, and ongoing support. Here's how an MSP can be useful in technology planning:

Specialized Expertise : MSPs bring in-depth knowledge and experience across various technological domains. They stay updated with the latest trends, best practices, and emerging technologies. Their expertise helps businesses make informed decisions aligned with their goals.

Strategic Guidance : MSPs work closely with businesses to understand their objectives and challenges. They provide strategic guidance by aligning technology solutions with the company's long-term goals. This ensures that the technology plan complements the business strategy.

Comprehensive Assessment: MSPs conduct thorough assessments of a company's current technology infrastructure, identifying strengths, weaknesses, and areas for improvement. This assessment forms the basis for designing a tailored technology plan.

Customized Solutions : Based on the assessment, MSPs design and implement customized technology solutions that address specific business needs. They recommend appropriate hardware, software, and services to optimize operations and enhance efficiency.

Risk Management and Security: MSPs prioritize cybersecurity and risk management. They implement robust security measures, data backup strategies, and disaster recovery plans to protect businesses from potential threats and ensure data integrity.

24/7 Monitoring and Support: MSPs provide continuous monitoring and proactive maintenance of IT systems. This helps in identifying and resolving issues before they escalate, ensuring minimal downtime and improved reliability.

Scalability and Flexibility: As businesses grow, their technology needs to evolve. MSPs design scalable solutions that can adapt to changing requirements, ensuring flexibility and agility in operations.

Cost Efficiency: Engaging an MSP can often be cost-effective compared to maintaining an in-house IT department. MSPs offer predictable pricing models, reducing the burden of unexpected IT expenses.

Training and Support : MSPs provide training and ongoing support to the company's staff, ensuring they can effectively utilize new technologies and maximize their potential.

Regulatory Compliance: MSPs stay updated with regulatory requirements and ensure that the technology solutions implemented adhere to relevant industry standards and compliance regulations. CONSIDER THE TRANSFORMATIVE ROLE OF TECHNOLOGY: 

Identify and eliminate system bottlenecks : Is your current system slowing down processes, or impeding progress altogether? It may be time to think about automation tools that streamline workflows.

Explore ways to accomplish more with fewer resources : Could integrations streamline processes or eliminate them?

Seek tools to enhance efficiency and productivity : Would a new business management system take hours off daily tasks? Could a better CRM increase sales conversion rates?

Prioritize technology that reduces employee frustration : No one likes to work with slow systems. Happy employees are more productive, and better tools contribute to happiness at work and more success that impacts the bottom line. 

Aim for increased business visibility and reduced risks : What would it be like if your technology gave you clear insight into what is going on in your business and what would that visibility look like? With solid data comes solid business decisions. What do you need to know about your organization to reduce inherent risks?

Strategize ways to boost profitability and drive growth : What could you do with more revenue and what needs to happen in your business to increase profits? CONSTRUCTING YOUR TECHNOLOGY ECOSYSTEM:

Once you envision tech's potential impact, assess your current systems' strengths and shortcomings. Identify areas needing elimination, integration, or addition. Create a comprehensive ecosystem where every component complements the central hub.

One by one, determine what needs to be done to each component to get it on the right path. Create a visual representation of your existing and envisioned technological framework. Visualizing your system's components, whether using physical whiteboards or digital visualization tools, enhances comprehension. Once mapped out, analyze to pinpoint necessary improvements or alterations while identifying successful elements that warrant continuity.

REVIEWING EACH COMPONENT:

Thoroughly examine every technological component to guarantee alignment with both current and future business objectives. Assess their capabilities, scalability, integrations, cost-benefit analysis, compliance, and security measures. Engage your team to gather their invaluable insights and feedback on the current operational status and potential enhancements they identify.

Gather insights on:

What's working What's not working What needs improvement Missing elements

This phase requires meticulous scrutiny. For each component—whether it’s your CRM, ERP, accounting software, or internal communications platform—you’ll want to conduct a deep dive. Consider preparing an analysis for each technology component to assess its Strengths, Weaknesses, Opportunities, and Threats.

PRIORITIZE AND EXECUTE: 

After assessing each component, create a realistic timeline for necessary changes. Prioritize tasks based on importance and feasibility, considering budget cycles and potential delays.

Seek quick wins to demonstrate value and gain stakeholder buy-in. Remember, this process is a marathon, not a sprint. Consistency, adaptability, and regular progress checks are crucial.

Prepare contingency plans in case things don’t go as expected. Adapt as needed while staying focused on the end goals.

Ensure regular meetings and progress reports, respecting these time blocks as non-negotiable. Consistent communication and a steadfast approach will drive your tech strategy toward success.

To build a Technology Plan that best suits your business, schedule a call with us now or explore more at our website: www.rcsprofessional.com . 

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Technology Business Plans

Written by Dave Lavinsky

Position your technology venture at the forefront of innovation with our comprehensive selection of technology industry business plan examples. This invaluable resource is engineered for entrepreneurs, startup founders, and IT leaders seeking to navigate business planning in the fast-paced tech landscape. The plans presented provide a professional framework for addressing key components such as product development, market penetration, intellectual property strategy, funding mechanisms, and scaling operations. 

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Business Model Generation: Revenue streams

A collection of business models that will help you understand the key drivers of business model success. The card deck will be ready for purchase in the end of 2023 and is now undergoing rigorous testing.

The Licensing business model involves granting third parties the right to use intellectual property in exchange for payment. The main emphasis is on monetizing these rights rather than creating and exploiting the intellectual property itself.

One significant benefit of licensing is that the rights can often be sold to multiple buyers. This serves to diversify a company’s revenue streams and reduce the risks it faces. Additionally, the rapid dissemination of products and services under licensing agreements can lead to increased brand recognition and customer loyalty. On the downside, license fees are typically lower than if the intellectual property were sold outright. However, the quick dissemination of the products and services can lead to more overall sales.

Another advantage of licensing is that it allows a company to focus solely on research and development, without needing to also have expertise in production or marketing. These tasks are instead handled by the purchasers of the rights. Conversely, licensing eliminates the need for costly, time-consuming, and uncertain research & development efforts.

Where did the License business model pattern originate from?

The concept of licensing can be traced back to the Middle Ages, when the Pope granted licenses to local tax collectors to allow them to be officially affiliated with the Catholic Church. The practice of transferring rights in exchange for a license fee has continued throughout history, with examples including two English ladies of nobility allowing a cosmetics manufacturer to brand a range of products with their names in exchange for a share of the profits.

Historical case 1: Anheuser-Busch and licensing

Anheuser-Busch is an American brewing company founded in 1852 by German businessmen Adolphus Busch and Eberhard Anheuser. The company is best known for producing Budweiser beer. In order to establish a strong brand identity and encourage customers to buy Anheuser-Busch products, the company licensed out its name to manufacturers of various products, such as calendars, bottle openers, knives, and corkscrews. While Anheuser-Busch only received limited revenue from these licensing fees, the wide distribution of products bearing its name helped to establish a strong brand and had a positive impact on revenue and profits.

Historical case 2: Mickey Mouse and licensing

One of the most well-known examples of licensing is the cartoon character Mickey Mouse, created by Walt Disney in 1928. In 1930, Disney licensed the rights to a company which produced Mickey Mouse schoolbags. This was followed by a range of films, video games, and other merchandise featuring the character. Through this licensing model, Walt Disney was able to build a strong brand and earn immense profits from his creation.

Applying the License business model

The licensing business model is particularly well-suited for knowledge- and technology-intensive contexts. It provides a way to monetize products and technologies that are not central to a company’s core business. Rather than letting these products and technologies go to waste, a licensing model can create a consistent source of revenue for the company. It’s worth noting, however, that strong patents are a necessary prerequisite for successful licensing. In addition to generating revenue, licensing can also be used to increase product or brand awareness and accelerate global distribution.

Before licensing can be utilized as a business model, certain prerequisites must be met.

• The intellectual property in question must be protected through a patent, copyright, trademark, or trade secret in order to prevent others from using it.
• The licensee must have a need for the intellectual property in order to solve a specific problem.

The Licensing business model offers a number of benefits for the owner of the intellectual property.

Firstly, the owner does not have to finance the commercialization process. This frees them up to focus on their next innovation and avoid the need to create and operate a company. The innovation is also likely to reach the market more quickly due to the experience of the licensee, and may reach more markets if the licensee is a large, well-funded enterprise. The owner also avoids the need to build and manage a commercialization team and bears less execution risk. Additionally, if the licensing agreement is properly written, the owner is protected from product liability issues and retains ownership of the intellectual property.

While licensing may seem like an attractive option, it is important to carefully evaluate whether to grant an exclusive or non-exclusive license, the level of technical support needed, and the desired royalty rate. It is also important to carefully review the terms of the licensing agreement to ensure that the rights and responsibilities of all parties are clearly defined.

Trigger Questions

• Will your invention function as only one element of a complete product?
• Is your competitive advantage in developing intellectual property over manufacturing and sales?
• Which products or solutions that are not central to our business could potentially be licensed to other companies?
• Are our patents robust enough to prevent partners from developing their own solutions?
• Would licensing our products to partners enhance our product or brand awareness?

With a 50+ brand portfolio, including AEG and Zanussi, licensed appliances range from solar power to consumer electronics.

Driven by its hit films and television programs, Disney is one of the top global licensors to retail sales.

The company licenses its intellectual property, particularly technologies that cannot be directly applied to new products in-house. generating around $1.1 billion in revenues from Licensing, strong and rigorous patenting is crucial for the success of Licensing, which is why IBM places great importance on patenting strategies.

Carl Zeiss Vision

Rather than producing lenses at its own large manufacturing sites, the company licenses the technology to small laboratories to enable individualized lens production.

BASF is the world’s leading chemical company, offering a range of products including chemicals, plastics, performance products, crop protection products, and oil and gas.

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Business Model Patterns

Customer segment.

• Bottom of the Pyramid
• Customer Loyalty Program
• Ultimate Luxury

Validation Patterns

Validate the problem.

Is your problem worth solving?

• Closed-Ended Surveys
• Cold Calling
• Comprehension Test
• Contextual Inquiry
• Crowdfunding
• Crowdsourcing
• Customer Service Logs
• Fake door testing
• Family Tree
• Find the Watering Hole
• Five People Who Are In
• Five Second Test
• Focus Group
• Industry Forums
• Move in With the Customer
• Read App Reviews
• Remote User Testing
• Sell the Future
• Write Down Your Concept

Validate the market

Don't build something that nobody wants

• Classified Posting
• Collect Pre-orders
• Conjoint Analysis
• Data Mining
• Feature Stub
• High Hurdle
• Offer a Sample
• One Night Stand
• Physical Before Digital
• Product-Market Fit Survey
• Run Test Ads
• Sales Pitch
• Single-Feature Product
• Spoof Landing Pages
• Trends and Keyword Analysis
• Wizard of Oz

Validate the product

Does your product solve the problem?

• A/B Testing
• Beta Launch
• Clickable Prototype
• First Click Testing
• Guerilla User Testing
• Impersonator
• LEGO prototype
• Micro Surveys
• Minimum Marketable Product
• Multivariate Testing
• Net Promoter Score (NPS)
• Paper Prototype
• Pretend to Own
• Takeaway Test
• Try it Yourself
• Working Prototype

Validate willingness to pay

Are people willing to reach into their wallets?

Pricing Model

Innovative pricing strategies for sustainable growth

• Access over Ownership
• Bait and Hook
• Cash Machine
• Dynamic Pricing
• Pay What You Want
• Reversed Bait and Hook

Revenue Streams

Explore different revenue streams to maximize potential

• Fractional Ownership
• Franchising
• Hidden Revenue
• Microfinance
• Pay Per Use
• Performance-Based Contracting
• Subscription
• Virtual Economy

Value Network

Sharing resources and risks for mutual benefit in the network

• Affiliation
• Brands Consortium
• Joint Venture
• Multi-Sided Market
• No Middle Man
• Omnichannel
• Orchestrator
• Peer-to-Peer
• Platform as a Service
• Revenue Sharing
• Self-Service
• Shop in Shop
• Virtualization

Value Proposition

Value proposition strategies for long-term success

• Blended Value
• Cross Selling
• Experience Selling
• Guaranteed Availability
• Make More of It
• Mass Customization
• One-stop-Shop
• Product as Point of Sale
• Product Self-Service
• Reverse Innovation
• Sensor as a Service
• Solution Provider
• White Label

Value Proposition Development

Unlocking growth through value proposition design

• Digitization
• From Push to Pull
• Leverage Customer Data
• Open Business Model
• Open Source
• Reverse Engineering
• Trash-to-Cash
• User Designed

Workshop Patterns

Convert empathy to clarity by refining insights into problem definitions

• Dependency Mapping
• Future-Back Planning
• Future Press Release
• Objectives and Key Results

Uncover insights and drive problem-solving through deep analysis

• Assumptions Collection
• Business Model Mapping
• Circles of Influence
• Empathy Mapping
• Fishbone Diagram
• Force Field Analysis
• Force Field Network
• Hopes and Fears
• Impact Mapping
• Journey Mapping
• Market of Skills
• Opportunity Solution Tree Mapping
• Prototype Persona
• Service Blueprint
• Six Thinking Hats
• Skills Star Mapping
• Stakeholder Mapping
• Starbursting
• Touchpoint Mapping
• User Story Mapping
• Value Proposition Mapping
• Why-How Laddering
• 20-Year Brand Roadmap
• Competitive Landscape
• Design Principles
• Golden Circle
• Golden Path
• Personality Sliders
• Product Box
• Top Audiences
• Top Brand Values

Clarify the problem or experiment to facilitate discussion and collaboration

• Figure Storming
• Forced Analogy
• How Might We
• Hypothesis Statement
• Job Stories
• Powers of Ten
• Problem Statement
• Storyboarding
• The Anti-Problem
• Value Proposition Statement

Unleash creativity to collaboratively discover fresh solutions

• 3-12-3 Brainstorm
• Bad Idea Brainstorming
• Competitor Demos
• Crazy Eights
• Design Charrette
• Mind Mapping
• Perfection Game
• Plus / Delta
• Reverse Brainstorming
• Round Robin
• Yes, And! Brainstorm
• Head / Heart / Hand
• PEST Analysis
• Rose / Thorn / Bud
• Start / Stop / Continue
• SWOT Analysis

Prioritize ideas or challenges to determine where to direct your attention and efforts

• Assumptions Mapping
• Blind Voting
• Decider Vote
• Fist to Five
• Five-Fingered Consensus
• Heatmap Voting
• Letter to Myself
• Note and Vote
• Priority Mapping
• Project Plan
• Prune the Product Tree
• RACI Matrix Mapping
• Red:Green Cards
• Roles and Responsibilities
• Roman Voting
• Stack Ranking
• Trade-off Sliders
• Who / What / When Matrix

Build a shared understanding to reach your goals together

• Fishbowl Discussion
• Lean Coffee
• Mad / Sad / Glad
• Three Little Pigs

Core techniques used to plan and lead effective workshops

• Affinity Mapping
• Card Sorting
• Parking Lot
• Poster Session
• Return on Time Invested
• Safety Check
• Silent Storming
• Talking stick

Ice Breakers

Relieve initial group awkwardness and establish a safe space

• Personal Histories

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Everything You Need to Know About NASA's Startup License

Are you a startup or a small business trying to take your company to the next level? A great way to reach your goal is using NASA patented technologies in your company. Why reinvent a technology? NASA has over 1,200 patents vetted for their technical and commercial viability.

Startup NASA allows startup companies to use NASA technology cost free for up to three years or until you make first royalty payment (whichever comes first).

Here’s an overview of the Startup license:

• NASA waives the initial licensing fees, and there are no minimum fees for the first three years.
• Once your company sells a product, NASA will collect a standard net royalty fee.
• Companies entering these licenses are bound by all requirements in federal licensing statutes and NASA policies, including the development of a commercialization plan and reporting on efforts to achieve practical application.
• This startup agreement is only available to companies in the United States.

You might be thinking, “What's the catch?” The great thing is, there is none. NASA focuses on disseminating its patented technologies to the broadest possible audience to maximize the benefit to the nation.

Below is a FAQ that might be helpful:

Do I need to have a company, or can I apply as an individual?

You need to have an incorporated company in the United States to apply. 

What counts as a startup?

Your startup business must be active for less than two years.

How long is the Startup license?

As long as you meet the agreement terms, the license will remain intact.

Can we have exclusivity on a Startup license?

Unfortunately, there is no exclusivity available for any Startup license. 

What if I'm a foreign company, but have an arm based in the United States?

You can apply for an Evaluation or Commercial license. Startup licenses are reserved for U.S. companies only.

I've selected a technology. What is needed to apply for a Startup license?

The minimum requirement is an overall business plan (including marketing and technology development plans) and ­the more detailed your plan, the better. During the review process, NASA will use that document as key part of the assessment of your team's skills and ability to achieve the practical application of the patent. 

What constitutes a good marketing and development plan?

The mission, vision, and core values along with the governance and other details about your business included in the business plan prepared for financial institutions and others can be modified to reflect the level of information you’re comfortable sharing with NASA. The elements that will get the most attention are below.

Marketing Plan  – a detailed timeline of who, what, when, why, and where for how you're going to market your technology. It’s also important to note if you’ll be selling Business to Business (B2B), Business to Consumer (B2C), or both. A good marketing plan will address, but isn’t limited to:

• What are you planning to sell?
• Who your customers? (e.g., companies, consumer market segments, etc.)
• When do you think you’ll start reaching out to your market for sales?
• Why do you think this market will be willing to buy your product?
• Where are you planning to sell your product? (i.e., geography)

Technology Development Plan –  a detailed explanation of how you will be developing the licensed technology. A good development plan will address, but isn’t limited to: 

• Suppose you have in-house capabilities to create the product. What’s the timeline to have a saleable product available for purchase using the NASA technology?
• Suppose you’re partnering with another organization to create the product. What’s the timeline to develop the product with NASA technology?
• What technical expertise do you currently have or will need to add in the future to develop this technology?
• How much funding do you plan to have to commercialize the technology?
• Do you have the proper expertise for developing the patented technology? (e.g., engineer, chemist, biotech engineer, computer scientist, etc.)

If you have any other questions about a Startup license, please reach out to our team . We’re here to help you in making the decision of what kind of technology license is right for you!

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The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Russia-related Designations and Designations Updates; Issuance of Russia-related General Licenses

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing Russia-related General License 79 , "Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on December 12, 2023," and Russia-related General License 80 , "Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Highland Gold Mining Limited."

Additionally, OFAC has updated its Specially Designated Nationals and Blocked Persons List:

The following vessels have been added to OFAC's SDN List:

ARKADIY CHERNYSHEV (UBSH5) General Cargo Russia flag; Vessel Year of Build 1988; Vessel Registration Identification IMO 8714695 (vessel) [RUSSIA-EO14024] (Linked To: IBEX SHIPPING INC).  CAPTAIN YAKUBOVICH (UBCG2) General Cargo Russia flag; Vessel Year of Build 1984; Vessel Registration Identification IMO 8318740 (vessel) [RUSSIA-EO14024] (Linked To: IBEX SHIPPING INC).  MARIA (UBRH7) General Cargo Russia flag; Vessel Year of Build 1986; Vessel Registration Identification IMO 8517839 (vessel) [RUSSIA-EO14024] (Linked To: IBEX SHIPPING INC).

Unrelated Administrative List Updates: