The first step in transformation of a technical innovation
to a business is market evaluation. This is where the potential market for
the specific technology is evaluated. This evaluation takes in to account
typically filtering parameters that investors place on businesses. Market
evaluation of a technology is one of the parameters used in evaluating the
potential success of a business endeavor.
It is important for innovators to understand the size of the
market, the current and emerging competitors, the
readiness of the market to receive the technology, the potential
reimbursement that the technology will receive, etc. before they fully
commit to a market.
Strategic positioning can identify various potential
applications and markets for each invention. Market Evaluation can then
help the entrepreneurs identify the value and risk of each market. This
information is then used by the entrepreneurs to select a business model
with higher chance of business success as is defined by higher revenue
received in shortest period of time.
