PENGKOMERSIALAN PRODUK

INOVASI: ISU & CABARAN

BY

ADJUNCT PROFESSOR COACH HJ. ‘AZRA’I BIN HJ. SHU’IB

TECHNOLOGY PARK MALAYSIA
 ‘AZRA’I SHU’IB
• adjunct professor;
• serial entrepreneur;
• registered Angel investor;
• the Vice President of Malaysian
Business Angel Network (MBAN);
• certified Coach and Master
Trainer;
• Japanese-trained business
counsellor and LCA expert
• a World Bank – certified incubation
& commercialization trainer;
• ex-banker & ex-Government
officer;
• a government officer in
Technology Park Malaysia
and most importantly,

… a passionate technopreneur builder

2
ABOUT
 Incorporated 1st Sept 1996

686 Acres

HQ @ Bukit Jalil, Kuala Lumpur

Plant 1 – Raub, Pahang
Plant 2 – Kangar, Perlis

MSC Status & BioNexus

Designated Location

Owned By MOF Inc.

Under Purview Of MESTECC

(previously known as MOSTI)
MASTERPLAN
Residential

Institutional Zone
• R&D Centre
• Innovation &
Commercialisation
• Education & Training
MARA
Institution
• Incubation Centre

Commercial &
Business

Commercial Zone
• Business & Commercial
Facilities
• Recreational Facilities
• MSC Cyber Centre

Residential Zone
• Condominium Public
• Service Apartments Institution &
• Hotels Government
Agencies
Incubator 1,2,3,4 IIC @ Resource Centre Enterprise 4

TPM Engineering

Enterprise 3A & 3B
TPM Biotech

Enterprise 1,2

AERIAL VIEW 6
 Asia Pacific University IRIS Berhad

MEASAT Broadcast Network System SCOPE

Novozymes KRU Academy

SOME
MAJOR
TENANTS

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 WHAT WE HAVE @ TPM
INNOVATION INCUBATION CENTRE (IIC)

BIOTECH INCUBATION CENTRE (BIC)

TPM TECHNOPRENEUR DEVELOPMENT CENTRE (TTDC)

 WHAT WE HAVE @ TPM
CHATTER BOX

PRODUCT GALLERY

OFFICE SPACE
WHAT WE HAVE @ TPM

EXTRACTOR SPRAY DRYER

 WHAT WE HAVE @ TPM
TPM IT

AMENITIES @ TPM
 VISION & MISSION
Facilitate and nurture Providing expertise, facilities,
To be a world class knowledge based equipment and support services
Technopolis which enterprises
provides an
Facilitate research & Development of knowledge base
advanced and development, economy by creating a conducive
innovation and
comprehensive commercialisation
Technology Park environment
science,
technology and Promote and stimulate Facilitating technology
an intellectual, creative development and commercialisation
innovation (“STI”) and innovative of research results
ecosystem, thus community
contributing to the
Facilitate government Promoting quadruple helix
nation’s and private sector collaborative engagement
knowledge-based smart partnership between Government, IHL,
RIs and industry – local & global
economy for
Provide a platform for
wealth creation the establishment of
Providing strategic linkages for
business network, funding, market
and societal well- strategic business and
and intellectual property
technology linkages
being. protection
CORPORATE STRUCTURE
Engineering design, CNC machining, rapid prototyping & manage
engineering-related projects + producing, innovative engineering
products & solutions.

Product development, contract research, lab services,

contract manufacturing & commercialisation of
nutraceutical &biopharmaceutical + process &
manufacture for Biotech products.

Provision of broadband services, data centre, project

management, consultancy services, manage operations
& maintenance of ICT infrastructure in TPM

Biotech Incubation Centre (BIC)

Centre for Technology Commercialisation (CTC)

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INCUBATION @ TPM
INCUBATION @ TPM

[ Corporatization Mandate ]
To facilitate and nurture knowledge
based enterprises by providing
expertise, facilities, equipment and
support services.

COMPREHENSIVE
&
INTEGRATED
INCUBATION
PROGRAMME @ TPM 15
 GREEN
TECH

INFO- BIOTECH
ICT
STRUCTURE INFRASTRUCTURE

ENGINEERING

INNOVATIVE & TECHNOLOGY-BASED COMPANIES

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 EVOLUTION OF INCUBATION PROGRAM
Evolution of Incubation Programme
Accelerator / Maturity
Development

1st Gen 2nd Gen 3rd Gen 4th Gen

Space (Land & • 1st Gen • 2nd Gen • 3rd Gen +

Building for Lease) • Shared-Facilities • Technology Labs, • Comprehensive &
• Technical Production Integrated Support
Advisory Facilities Services
• Amenities • Collaborative
• Business & Arrangement with
Technical Advisory IHLs / RIs
• Virtual Incubation
• Co-incubation
• Co-venturing
• Internationalisation

Engineering Engineering + ICT Engineering + ICT + Biotech

1996 - 2001 2002 - 2007 2008 - Present
Source: National Business Incubator Association (NBIA), USA & Study on Enhancing the Effectiveness of Incubation Centres as a
Pre-seed Support Mechanism for SME Development in Malaysia” by SME Corporation Malaysia, 2012
Time
PENGKOMERSIALAN PRODUK
INOVASI: ISU & CABARAN
TPM as Catalyst to Commercialisation

• Nurture start-ups through incubation &

accelerator programme
• Handholding in critical areas through coaching,
mentoring, training & consultancy
• Technopreneur Facilitation Fund
• Living Lab Initiatives
• Active involvement in Malaysia
Commercialisation Year
• SUPERB Grant Project Monitoring Team
• Vendor development programme
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20
 MIT
MITTECHNOLOGIES SDNBhd
Technologies Sdn BHD MCY
2016
Supre
me
Y Us Sdn Bhd Award
• Intelligent Circulation While Drilling (iCWD) Winne
- intelligent circulating sub enabling the
r
Product driller to treat losses, place cement plugs
or improve hole cleaning

• Domestik: Universiti Malaya

Market • Antarabangsa: Middle East Region, United
State, United Kingdom

IP • 28 patents, valued at RM30mil Usage of machineries (TPM

Engineering)
Workers • 2013: 8, 2014: 7; 2015: 8;
Physical office space since April
Sales* • ~ USD 500,000.00 (2015) Interventions 2012
received
• Techno Fund –MOSTI Support services
• 1Innocert - SME Corp
Interventions
• Petronas R&D Grant
• aExhibition / Media Coverage Linkage to Techno Fund,,
1Innocert & Petronas R & D
Grant
• 1Innocert AA Rating 2013
Awards / • Pioneer Status MIDA
Certification • Success Story for saving Petronas wells Supplier for Halliburton Energy Services (M) Sdn Bhd, the
• Small Business Spotlight on new technology largest worldwide providers of products and services to
by Offshore Technology Conference the energy industry
21
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 BNetwok Sdn Bhd MCY 2
01
Categ 6
ory
Winne
r

BWave IoT Platform (by BNetwork Sdn Bhd)

Product Name A universal getaway communication platform for IoT devices from
different technologies. Bwave can support IoT technologies such as
Zwave, ZigBee, Enocean and Insteon.
• 2 IPs pending valued at RM6.8mil
• Starter Kit for household consumers was launched during
Current Status (Commercialisation)
SMIDEX 2016 17~19 May 2016. Received 27 orders and have
delivered 18 sets at the value of RM50,670
• Telcos
• Property Developers
Target Market
• Smart City Authorities
• Household Consumers
Strategic/ Business Partnership (s) Property Developers and Telcos
Sales revenue/ Licensing Fee /
RM236,042.00
Royalty
To enhancement product with sound sensor alarm developed by
Latest Update
UniKL BMI 22
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 Waterbay Sdn Bhd
SUPE
RB
Winne
r

STUHL: Portable Treatment Chair (by Waterbay Sdn Bhd)

Product Name
Current Status (Commercialisation)
Target Market
Strategic/ Business Partnership (s)
Sales revenue/ Licensing Fee / Royalty
Latest Update
Portable treatment chair for medical usage. It is lightweight, easy to
carry, semi-automatic and ergonomic.
Beta Testing. Refinement of STUHL Ver. 2
Soft launched during 4th. Malaysian Dental Technologies Conference
& Exhibition 30 Sept’16 ~ 2 Oct’26, Berjaya Times Square
• Government/private dental clinics
• Military
• Universities/schools
• Off-shores ships/platforms
• Household consumers
Dental clinics and medical devices/equipment suppliers
RM200,000
Received LO to supply 3 units of STUHL Ver. 2 to Klinik Pergigian
Butterworth, Kubang Semang and Bukit Panchor in Penang
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Commercialisation Experience with
Universities
OTHER PROTOTYPES
Collaboration roles:
• Eazy Cooker
• TPM: Design, fabricate &
(a multifunctional machine to
commercialize make jam, chilli sauce and
• UPM: Idea & concept tomato ketchup)

• Coconut AutoSqueezer
(to grate and extract coconut milk
from coconut)

• Pineapple Multi-peeler Plus

(to remove the skin and core of a
pineapple to obtain the flesh)

• Nata De Coco Dicing Machine

(to cut the raw of Nata De Coco
into uniformly diced product)

• Rolled pineapple tarts Machine

Rolled Pineapple Tart Machine
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COMMERCIALISATION
WHAT IS IT, WHY DO IT, CHALLENGES
& HOW TO OVERCOME THEM
 farm to table

IP KPI
on the shelf

COMMERCIALISATION?
policy
products sold
lab to market

technology licensing

26
COMMERCIALISATION

Commercialization is the process by which a

new product or service is
introduced into the general market
https://www.investopedia.com

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WHY DO IT?

Wealth Putting inventions Contribute to societal

Creation to use well-being

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 PRODUCT DEVELOPMENT LIFE CYCLE
(COMMERCIALISATION JOURNEY)

MVP

GO-TO-
IDEATION POC PROTOTYPE TESTING UPSCALING
MARKET

What’s involved at every stage?

Why is every stage important?

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Questions to
IDEATION Validate
ask:

Addressing Idea
customer
problem? Customer
Industry
driven? Market

Design for
Technology
environment
(DfE)
Business model
Source of
funding Art of
IP mining
visualisation
applies!

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 Lab tests / Simulation Softwares
PROOF OF
CONCEPT • List of equipment available & rate
• Government facilities / private e.g.:
• TPM Engineering, TPM Biotech
• SIRIM
• MARDI
• UTM, UiTM
• Explore others!

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 IP Protection
PROTOTYPE
• Local
• International, locations based on the
following factors:
–Location of product to be sold
–Where materials are bought from
–Chosen OEM center
–where human resources coming from

Infrastructure
• DIY / Outsource?
• Local (Private / Public)
• International (cost? / confidentiality)

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MINIMUM VIABLE • Minimal features
PRODUCT • Obtain feedback from targeted, actual users
(Basic, working product) • Validate - Create feedback loop for product
refinement
• Soft launch to create market hype
• Speed to Market

If you have
to fail,
fail fast,
fail cheap!

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 Alpha testing
TESTING • Functionality
• Safety
• Design

Beta testing
• User survey
• Stakeholder feedback
• Real market/industry environment

Market requirements
• CE Marking, ROHS, HACCP, Halal, Eco-
label, etc.

Equipment / Machineries / lab tests

• List of equipment available & rate
• Government facilities / private
• Industry partners

TRL 6 achieved!
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UPSCALING
6 Ms
Method (technology)
Machine
Material
Manpower
Model of business
Marketing
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 COMMERCIALISATION STEPS
• Obtain feedback from
targeted actual user
• Product refinement • Licensing
• Customer desirability
• Financial availability • JV
MVP • Sell
• Technology
Feasibility • Spin off
• Own
GO-TO-
IDEATION POC PROTOTYPE TESTING UPSCALING
MARKET

Alpha Testing • In-house / DIY

• In-house / DIY • In house
• Manufacturing readiness • Outsourcing (what
• Outsourcing • Standard and
level to outsource?)
• Partnering regulation
• DfE & DOE • SOP
• Determine: • Tests functionality
• Benchmark (local / • 6M analysis
• Specification
international) Beta Testing ­Machine
• Function
• Technical details • Customer ­Method
• Engineering
• Seek expert opinion acceptance test ­Money
design
• 4P analysis (people, place, • Tested in real ­Manpower
• IP
price, promotion) environment ­Material
­Market
COST OPTIMISATION
SPEED TO MARKET 36
 GO-TO-MARKET

Technology
JV Sell outright Spin-off
licensing

• Simplest • Leverage on • Easiest • Tedious

• Gain royalty partner’s • Lose control • Capital intensive
competitive over own • Longer time to
advantage invention build brand
• Beware of con • Need business
partners, find acumen (must be
those who Own Venture coachable )
speak the same
language with • High Risk, High capital
you • Taxing
• Highest return
• Highest satisfaction
• Highest form of control
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FACTORS TO CONSIDER

Time taken to Entrepreneur Availability of

create market Inclination, Resources
& revenue Skills, Attitude (e.g. time,
traction money, network)

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 “SMILING CURVE”

Under this model,

manufacturing is the
lowest-value input

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Source: Stan Shih "Smile Curve" concept  39
 “SMILING CURVE”
the strategy: move up and along the value chain

Under this model,

manufacturing is the
lowest-value input

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Source: Stan Shih "Smile Curve" concept 
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42
 TECHNOLOGY READINESS LEVEL
TRL Stage Description
1 Ideation. Basic principles are observed and reported
2 Innovation Basic principles observed so practical applications
begins. can be formulated
3 Proof of Analytical and laboratory studies are required to see
concept. if the technology is viable
4 Component Laboratory testing of the prototype component
test.
5 Prototype Laboratory testing of the integrated system
construction.
6 Alpha testing. Prototype system demonstrated in an operational
environment
7 Beta testing. Completed design tested in real environment
8 Certification. Proven to work under its expected conditions and higher
certified to be used
9 System proven Ready for commercial deployment chances
to successfully to
function. commercialise

Source: The National Aeronautics and Space Administration (NASA), https://www.nasa.gov/ 43

CHALLENGES & ADDRESSING
THEM
COMMON CHALLENGES FACED BY
INNOVATORS
TECHNOLOGY INVENTOR/OWNER

Solution to develop (Product/service market fit)

Access to real environment to test out solutions

Entry to first market (overcoming prevalent locally-

produced tech stigma / less competitive pricing)

Deployment (production, marketing,

after sales service, marketing)

Surviving testing to securing first market & revenue

traction

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COMMON CHALLENGES FACED BY
INNOVATORS
TECHNOLOGY INVENTOR/OWNER

Solution to develop (Product/service market fit) PRODUCT

Access to real environment to test out solutions

Access to real environment to test out solutions MARKET

Entry to first market (overcoming prevalent locally-

produced tech stigma / less competitive pricing)
FUND
Deployment (production, marketing,
after sales service, marketing)
REGULATIONS
Surviving testing to securing first market & revenue
traction

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OVERCOMING
MARKET ENTRY
ISSUES

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MARKET VALIDATION

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 What’s Market Validation?

VALIDATE!
MVP

GO-TO-
IDEATION POC PROTOTYPE TESTING UPSCALING
MARKET

VALIDATE!
• The process where you determine if people will pay
money on your proposed product.
• This process is typically done after you have the idea
but prior to spending any time building the actual
product.

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Why Validate?

So that you come up with solutions that

people actually want and are
willing to pay for

Enhancing commercialisation
success, mitigating risk of
failure!
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50
Validated Learning Loop

• Validate strategic
assumptions
• Learn what
customers find
valuable
ACT (Learn / Refine
PLAN / Pivot / Launch) • Accelerate feedback
CHECK DO (Measure)
(MVP)
loop
• Small quick cycle,
not major gambles
• Optimise resources

51
What Are We Validating?

CUSTOMER PROBLEM STATEMENT

• Worth solving?
• Painful enough that customers are willing to pay?

MARKET
• Problem is big enough to make up a market for the
product
PRODUCT
• Pain point solved? Nice to have vs. Must have

TECHNOLOGY
• Available? Doable?

BUSINESS MODEL
• Scalable? Profitable? Sustainable?
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Ways To Validate
How? Purpose

Industrial consultation Validating technical aspects – does the

technology exist?

Focus group meeting Validating functionalities of the product with a

specific group / stakeholders

Administered survey / To validate problem statement and product take

interviews up as well as to validate market

Literature review Market report, IP review, publications, technology

reports

Crowdfunding platforms • Gauge interest with no upfront cost & assess

real-time demand.
• Test consumer interest in their product without
making an expensive gamble
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3Doodlers

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3Doodlers • WobbleWorks pitched the idea of 3D
printer pen to major toy manufacturers and
got rejected
• Pitched “The World’s First 3D Printing
Pen” on Kickstarter:
• in 2013, raised $2.3 million
• in 2015, raised $1.6 million.
• By going direct to consumer, the inventors
inventors were able to prove there was
demand for the concept rather than
begging retailers for an audience.
• Today, the 3D pens are available for sale
at Target, Michaels, Best Buy, Amazon,
Brookstone – and at retailers in 60
countries.

• After 5 years, the company is expecting

turnover of USD30 mil

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56
Wool & Oak Duffle Bags
• In the summer of 2015, Johnathan Webster and his wife Gizem Mut-Webster
had just returned from an extensive European trip. After visiting five countries
and taking ten flights in a short four-week span, they realized that they were in
desperate need of travel bags that would help them skip the long lines and
headaches, and instead breeze through more quickly and efficiently.

• In 2016, they were finally ready to launch their first product: the world’s first
Duffle Suitcase. They didn’t have investor money behind them but had heard
about Kickstarter - a platform that helps fund projects by raising money from
people who believe in your product. With only $5,000 left in their bank account
and using Airbnb to pay their rent, the couple launched their product.

• The first Kickstarter campaign was a great success - they raised over
$880,000. It proved that many fellow travelers experienced similar
struggles. They delivered as promised and received glowing reviews. With the
launch of their second innovation the Duffle Backpack via Kickstarter again
they raised close to $1,400,000 in total. They knew they were onto something.
They invested the rest of the raised funds into building out the brand
experience and their team.
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 Possible Questions
CUSTOMER PROBLEM VALIDATION PRODUCT
SEGMENTATION VALIDATION
• Do you find it hard to
• What do you do [problem]? • What do you think of
professionally? • How important is [value this product? Would
• Who handles [process you’re delivering] to this product solve
you’re improving] at you? your problem?
your home/office? • How motivated are you • How likely are
• How much time do to solve/improve you/would you be to
you spend on [problem/process]? tell your friends about
[process you’re • If you had a solution to this product?
improving]? this problem, what • Would you ever use
• [Specific questions would it mean to this product?
related to your you/how would it affect • What might prevent
product/customer] you? you from using this
– for example, do you product? –.
have kids? • Will you pay $x for
this product?
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Through market validation...

Possibly identify ideas / technology and

business opportunity worth pursuing

Time saved

Cost saved

Customer confirmed

FAILED CHEAP!........ FAIL FAST!

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 COMMERCIALISATION ECOSYSTEM
GO-TO-
IDEATION POC PROTOTYPE TESTING UPSCALING
MARKET

Grants, Soft loans, Angels,

FUND Angels , ECF, P2P,
crowdsourcing, equity crowdfunding +Commercial loans, VC

M&E, Office Space, Shared Facilities

Labs (prototyping and testing centre)

INFRA
Pilot plant
Production plant, gallery & sales

Idea Lab, DfE, industry consultation

SUPPORT
SERVICES Coaching, Mentoring, Training and Consultancy on critical areas

IP Management Support

Industry Linkage, Business Matching,

Market Feasibility Studies, Technical Focus Groups Customers in-depth interviews, market
MARKET analysis, technology licensing, managing
spin off
Internationalisation
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Source: TPM Technology Facilitation Platform Blueprint
 OVERCOMING
FUNDING ISSUES

61
Valley of Death
• Customer acquisition cost
• Deployment and after sales
cost
• Business operations cost
• Business sustaining costs

62
Company Financing Life Cycle
Government grants available IPO &
r LEAP
e Market
v Venture Private
e Capitals Equity
n
u
e

ize

e
tS

nu
en

ve
Seed
tm

Re
es
Inv

Angels

Ris
k
FFF
time

idea prototype 1st customers Growth Expansion

63
graph above is just an approximation, for explanatory purposes
 Funding Ecosystem
Growth &
Profit

DEQ 800 MDG

CIP300
Pre Seed Seed Growth Expansion Maturity

SUPERB P2P
Funding Needs

Angel investments

Innofund BEF Venture Capital

CRDF Equity Crowdfunding

CCGF
BAP BGF Soft loan for SMEs
Crowdfunding Soft Loan for Automation & Modernisation
E2
Point
Zero Idea Birth Production & Product Sealing & Expansion Pre IPO
Design & Commercialisation Enhancement
Time
Conceptualisation Market Entry New Markets Commercial Success Listing & Go Global
Product Prototype &
Proof of Concept

64
Types of Funding Available

GOVERNMEN ALTERNATIVE CONSIDERATION

FACTORS
T / PRIVATE FUNDING
• Risks
Angel Investment • Business Stage
Tax Incentives • Fund utilizations
Private Equity

Crowdsourcing
Grant/Soft Loan
Equity Crowdfunding

P2P
Venture Capital
LEAP Market

65
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 INFRASTRUCTURE /
REGULATORY ISSUES

66
National Regulatory Sandbox

• A platform that promotes innovation by providing a safe test bed to

experiment and pilot solutions that either requires regulatory
framework or potentially impacts a regulatory environment.

• Initiated by the Ministry of Finance, Malaysia (MoF) as a combined

National Blue Ocean Strategy (NBOS) and Transformasi Nasional
2050 (TN50) programme,

• Championed by the National Regulatory Sandbox secretariat, jointly

manned by the National Strategic Unit (NSU) at MoF, together with
the Futurise Centre @ Cyberview and MaGIC

• Aims to create opportunities to further develop, accelerate and

promote collaboration between entrepreneurs, corporations,
regulators and the government.

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Promoted Sectors

68
Living Lab @ TPM

• Living labs aim to harmonize the innovation process among

main commercialisation stakeholders: SMEs , research
institutions / academic, private and public institutions.

• Living Labs strive to support the innovation process by offering

an environment for entrepreneurs to test their product / services
- giving birth to new services, systems, products and business
opportunities as well as accelerating entrance to market.

• TPM, in 700 acres:

• has 200+ MNCs and SMEs
• university, research institution, government entities
• >16,000 population (potential real users)
• access to industry, key stakeholders & funders

69
Beneficiaries of Living Lab Initiative

BNetwork:
bWave®, connected
home lifestyle that
supports multiple
wireless technologies
and standards together
into a single hub.

Installed mock up room

in TPM for testing
purposes

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Beneficiaries of Living Lab Initiative

CORE Expert
Solutions:
• Installed monitoring system the
Realtime entire Parameter Fencing of TPM
Intrusion
Monitoring
System

Installed
monitoring
system the
entire
Parameter
Fencing of
TPM

71
Beneficiaries of Living Lab Initiative

Solar NRJ:
Self-recharging
Energy System
(SES) – portable
plug and play, self-
sustaining energy for
telco cellular tower

On-site deployment
for functionality
testing

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Case Study 1

Company A produces dimmable LED light bulb, a

disruptive technology with high potential. The technology
receives early stage funding from angel investor and
local VC and is at the upscaling stage.

The founder acquired a space to set up own production

line with own machineries and equipment.

What is your comment on the up-scaling strategy?

74
Case Study 2

Company B commercialises a solar-powered kiosk designed

by a researcher in a local university. The kiosk is 2m x 2m,
expandable and meant to upgrade operations of micro
enterprises by replacing the more commonly used sidewalk
stalls.

The kiosks are to be placed on sidewalks of strategic

locations (cities). To generate revenue, the company
manufactures the kiosks, provide the kiosks on a rental basis
with main revenue coming from advertising on kiosks surface.

Can the company sustain based on the revenue model?

75
Case Study 3

Company C manufactures a high-end drilling tool the for the oil

and gas industry. Company requires capital-extensive
equipment. The company rents and retrofitted equipment
provided by a Government agency and work closely with a
major industry player as early adopter.

The company has successfully become worldwide supplier to a

major oil and gas industry company, with its product currently
being deployed at local oil rig platforms and they also become
world wide supplier for one International Distributor.

What could be the reasons of this commercialisation success?

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Case Study – KIK PROJECTS

1. MPK Pahang (Tong Sampah Perangkap Tikus)

2. JPN Johor (EMS)

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GOOD LUCK!
‘AZRA’I SHU’IB
+603 8998 4025
+6019-2196119
azrai@tpm.com.my
/technologyparkmalaysia

https://www.facebook.com/TPMIIC/

www.tpm.com.my

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