Business models for the successful commercialisation of silicon based MEMS

When considering how to construct or review business models for successful commercialisation of microsystems, it is wise to take into account several important factors that help assess the risk associated with one strategy versus another. Purely a statement of the novelty of the technology employed or the perception of a market need for a product or services are insufficient in themselves to undertake this risk assessment properly. Global macro economic factors, political or market specific forces, intellectual property conflicts, market resistance to new disruptive ideas are but a few of the factors that influence the success of a particular market strategy. These commercial factors can make the difference between what in Colibrys we define as ´creativity´ and ´innovation´. The successful exploitation of an idea in the marketplace is the only true ´innovation´ and differentiates winners from losers in today´s marketplace. The commercial environment for nearly all technology companies today is extremely difficult. External factors such as the collapse of the internet bubble, the consequential rapid correction in the telecoms industry and resulting price pressures, the volatility of the worlds stock markets, and finally a collapse in confidence in corporate governance have all collectively taken their toll. For an emerging early-medium stage tech start up and even established (Small Medium size Enterprises) SMEs this is proving a real test of their financial strength. Commercial survival has replaced ambitious growth plans; financial breakeven has replaced IPOs and over-priced trade-sales. Any vision of the right Business model must take the current economic climate into consideration, not just an identification of a need for a product or service in the marketplace. This paper aims to explore these themes in more detail in particular with respect to Silicon MEMS manufacturing Business models.