The document introduces the NABC framework for quickly assessing business ideas. It consists of analyzing the customer Need, the proposed Approach to address that need, the Benefits that result, and how the approach compares to the Competition. The document provides examples of using NABC to analyze ideas and discusses lessons learned from testing NABC at different organizations. It found NABC effective for initial screening but suggested expanding the analysis later to include more market dynamics and the team aspect.

1. Quick Assessment for Business Idea
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2. NABC: definition
 What? Easy method to quickly analyse and develop value propositions for
projects
 Who? Introduced by Curtis Carlson & William Wilmot (Stanford Research
Institute, US) in “Innovation – The Five Disciplines for Creating What
Customers Want” (August 2006)
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3. Do the NABC in 4 questions
What is the important customer and market NEED?
What is the unique APPROACH for addressing this need?
What are the specific BENEFITS per costs that result from this approach?
How are the benefits per costs superior to the COMPETITION‟s and the
alternatives?
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4. Listen to the customers voice
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5. Detect the customer value
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6. NABC process in practice
 Easy framework for dissemination within your network at any time
(possibly on line request)
 Makes researchers aware that the latest, greatest technology is not
enough, but needs to be combined with great positioning and a great
team. No need to solve all problems of the world at once.
 Guides researchers to write down a compelling, quantitative, value-
laden, pitchy Value Proposition showing their distinctive advantage
 If NABC looks promising at first glance, intake meeting can take place
where contact with idea owner is important and next steps can be
discussed
 Good fit in organisations with great deal flow of „wild‟ business ideas,
emanating from people with few entrepreneurial skills
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7. NABC example: Video on Demand
 Need: movie rentals represent a $5 billion business opportunity that you currently cannot access. The
only parts of rentals that people really dislike are the obligation to return the tapes plus late fees.
Customers find that it is inconvenient and wastes time.
 Approach: we have developed a system that allows you to provide videos on demand to your
customers using your cable system, with access to all the movies of Blockbuster. Our approach makes
use of one of your currently unused channels, with no changes to your system. In addition, you do not
need to invest any capital. Each movie costs your customers $6.99, the same cost as a rental at a video
store.
 Benefits per cost: You will receive 5 euro of new revenue per movie rented, with a margin of 20%
after paying for the movie costs. Your customers will have all the pause and fast forward functions of a
VCR when watching the movie, and they do not have to return the movie when done. Late fees are gone.
We estimate you could capture a market share of 20%.
 Competition: Our system is patented, and it is the only one to include all of these features. Online
rentals represent new competition for both you and us, but they have a handling-cost disadvantage of 75
cents per tape. Sending videos back is inconvenient, plus they cannot provide spontaneous purchases.
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8. Pros & Cons
PROs CONs
• Strength: quick first level • Problems: researchers have
assessment tool for business sometimes difficulty to be
opportunity, easy accessible for concise and risk of killing
researchers possibly good ideas to early
• Innovation: practical way to assess • Acceptance is not same as „go‟
researchers „wild‟ business ideas to business: need further
research into IP and freedom
• Useful in large organisations with to operate
big deal flow of ideas
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9. Why ? Rationale NABC
 Need for quick assessment tool of business opportunities in a large
research community with a demand driven research agenda
 Value proposition development
 Identify important customer needs
 Define champions and productive teammates
 Articulate the value proposition (NABC)
 Iterate often with others, regularly, in a group
 Bridging the gap between excellent research and (new) business
(creation)
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10. Why ? Impact NABC
 Success rate: all applications for iProof (proof of concept projects) and
iBoot (iBootcamp) were assessed on this framework. First feedback to
idea owner (even if negative) has high sensibilisation effect.
 Recommendation: Helps researchers to think „customer‟ and „customer
value‟ and to feel the entrepreneurial vibe for the first time
 Impact on future performance: the NABC will slowly help to change the
mindset of a research community to a research valorisation community
without to much harassing researchers with writing business plans
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11. Outcome
 All first level assessments of business opportunities need to pass the
NABC test
 Higher awareness level within research community
 Easy accessible for all
 Create pool of business ideas
 No immediate need to change the format, although on line availability
could prosper the use by researchers
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12. Lessons Learned
 Looking back now, what would you …
• … do different? Nothing really
• … improve? Combine NABC with quick IP and freedom to operate scan
• … recommend to others? Just try it out.
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13. Suggested Readings
 Link to bibliography
 “Innovation – The Five Disciplines for Creating What Customers
Want”
 Link to related websites
 http://www.sri.com/innovation/discipline.html
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14. NABC tested by Digiteo
Our objective:
 implement a light methodology to start a systematic “transfer-oriented” analysis for
collaborative research projects
 see if NABC method would fit for academic projects with an early stage of technological
development (no proof-of-concept).
 identify and qualify the outcomes of such projects, in order to quickly single out transfer
opportunities (and provide adequate support).
A pool of 10 collaborative research projects was selected for the test. The NABC methodology
was used during the lifetime of the projects ( when first results are available and before
finalization).
For the test, the researchers were not expected to start the NABC alone. It is pre-filled by the
technology transfer team, based on the scientific information available internally (website,
databases and reports). Benefit: the researchers don’t feel that the administration is asking for
more paperwork from them. They start the exercise with a basis for discussion.
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15. Lessons learned by Digiteo
Based on the name of the practice “Quick assessment of a business idea”, technology transfer
officers tend to see it first as an evaluation tool only. If the NABC is presented first as a tool for the
development, assessment and presentation of ideas (= preparation for a good pitch), the added-
value is more directly understood.
It is a bit of a challenge for the TTO and the research team to identify and develop a value
proposition for a technology that is not yet mature.
Proposition to adapt NABC to research projects:
Need: what’s the problem that is addressed by the research subject
Approach: how will we address the identified problem/opportunity?
Benefit: how innovative are the research goals? What’s the risk in doing it like this? What are the benefits in doing it
like this?
Competition: freedom to operate; intellectual property rights
Good tool for researcher to structure and develop a good pitch when they first present their
technology to industrial partners.
Researchers appreciate that the transfer officers guide them in the idea creation and already give
some thoughts on the questions. Otherwise, they feel the TTO is an evaluator and not a help.
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16. NABC tested by MFG
Objective:
 To have a written and easy-to-use check list for assessing innovative business
opportunities that could be used either in start-up consultancy or as a self-assessment
tool
Implementation:
 The NABC approach was tested and implemented by MFG in cooperation with the
regional business initiative Baden-Württemberg: Connected (bwcon).
 The original practice was translated and adapted to a one-page check list in German
that was:
 used for start-up consultancy: participants were asked to fill out and hand in the
one pager prior to the session
 provided (online) as a self-assessment tool for start-ups/companies participating in
the business plan competition bwcon: Hightech Award CyberOne
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17. Lessons Learned by MFG
Lessons Learned:
 A simple way to analyse and develop value propositions for business ideas/
opportunities
 An easy-to-use tool for young entrepreneurs and researchers helping them to structure
their business model and identify their USP (unique selling proposition), e.g. in order to
pitch their business model to investors, partners or customers
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18. NABC tested by ICBS
The NABC approach was tested by ICBS (Imperial College Business School)
Context of Test:
IE&D
Design London Incubator
Difference in context:
IE&D: pedagogical value and appropriability prevail
Design London: rather market pull than technology push
Objective: quality check of incoming ideas
Modification of practice needed before testing: no
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Quick Assessment for for Business Idea
Quick Assessment
Business Idea

19. Lessons learned by ICBS
Remarks after testing:
No full industry analysis: VAC and market dynamics are missing
Overemphasis on market analysis and needs
Team aspect is neglected
Suggested Changes: NO
The main goal of NABC is to offer a quick assessment
The NABC serves well this role
However, in a later stage it would be beneficial to expand the analysis with the topics
mentioned under remarks
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Quick Assessment for for Business Idea
Quick Assessment
Business Idea