Transforming technology concepts into products and solutions.

TransformTec turns ideas into reality.

Technology And Product Development Services

The Business

TransformTec is a consultancy focused on technology and product development. Building on software, hardware, and systems engineering principles at the bleeding edge of consumer, multimedia, and telecommunications sectors, the company works with financial investors, product developers, and corporate executives looking for alternatives to capital intensive R&D. We work with them to develop product ideas into prototypes transforming technology concepts into products and solutions.

The Problem

The problem is the timely and accurate prediction of a product's financial success and time to market. It is often difficult to accurately forecast how long it takes to develop a product from idea conception to market launch. It is even more difficult to guarantee successful market penetration and lucrative return on investment. The Silicon Valley is littered with the carcasses of brilliant product innovations that missed the market window. The stories are legion of companies that failed even when they hit the market window because they downplayed the importance of cash flow, always hoping that next quarter's sales revenues would make up for this quarter's negative cost of goods sold. For the last 30 years, technologists and market mavens alike have been wrestling with the problem of accurately predicting a product's financial success and time to market.

The Marketing Solution

TransformTec consults with financial investors, product developers, and corporate executives so they can achieve financial goals and fulfill technical dreams. TransformTec's sustaining competitive advantage is the dozens of product development efforts the founder, Jeffrey J. Phillips has led and been involved in. With well-rounded and comprehensive experience in Fortune 50 and start-up companies in all areas of product development over twenty-four years, TransformTec's team is uniquely qualified to gauge products' and idea generators' potential for success.

Taking new technology ideas from concept to IP reality and transforming technologies into marketable products is what we specialize in. Email TransformTec today, to learn what marketing strategies we can implement to convert your Intellectual property into cash.

Selling IP

Selling Intellectual Property

A recent market trend is the creation of a technology marketplace for cataloging, buying and selling intellectual property, The Technology Trading Exchange ( If this were the New York Stock Exchange, TransformTec would be the first "Merrill Lynch". Founder of Technology Trading Exchange and author of the book "Zero-to-IPO", David Smith, has seen the number of transactions on his site increase significantly during the past several years. Its very existence validates that there are idea-generators looking to connect with buyers of technology.

Capital Under Investment

Between the years 2000-2003, the amount of capital under investment with the U.S.' leading venture capital firms grew modestly, and 2004-2008 was only slightly better. Indeed, the irrational exuberance of the late 1990's has given way to well-established stern business metrics. Especially now in recession-ravaged 2009, venture capital firms are still willing to bet and still willing to lose, but they have strict guidelines and there has to be a valid business model they are supporting. This leaves a big gap between the number of ideas generated for new products and the amount of financing available through traditional means.

Finally, despite the Bernie Madoff debacle and the extreme economic duress of the past year, there are still a large number of people in the U.S. who have a net worth of $10M or more.

Technology Market

There is a marketplace which exists, short-of venture capital, which is beyond the mainstream technology arena. These idea-generators typically lacks the capital to get their idea fully realized. The private, high net-worth investor has the capital but lacks the original ideas for creating larger-than-average returns on investments. The established company holds at a premium great ideas and has the means to expand its markets with new and realized products.

Idea-generators – typically inventors, designers, developers, engineers, or scientists - often dream-up products that can not form a basis for a sustainable single company. Usually their ideas are often product line extensions, or even new product features (e.g., Steve Pearlman's Moxi/Rearden Steele venture). Moreover, few of these gifted and smart individuals have the desire and drive to run such companies, even if they could be realized. The hard cold truth is that most ideas generated in technology markets are product extensions which build upon established product segments.

It is not uncommon for large technology companies to lose market agility. At times they can not navigate market changes due to in-house politics, apathy, or sheer short-sightedness. Technology markets change quickly, and management can not always be prepared with the human know-how and capital to address new market needs and products. These companies often seek outside consulting, such as that provided by TransformTec, and typically want objective, empirical views on new and expanding markets. As a means to mitigate risk and relieve strain on their balance sheets, technology firms have turned to outsourcing even their core business activities and production capabilities in order to shore up their margins. In considering an atypical value chain, where at one end is a produced product and at the other end an idea for a new product, outsourcing a portion of R&D and product - program management is the next natural link after manufacturing.

High net-worth individuals have many investment options available. Many look to diversify their portfolio with investments in businesses or angel ventures. Most of these ventures do not combine the business owner and the business market analyst into one investment vehicle. Usually they will have an outside analyst alongside the management of the prospective company. Moreover, most of these business investments are in one single company at a time, where returns can only be realized after long periods of time. The use of hedge funds and privately managed, low-scale (compared to venture capital) investment funds have become a popular way for high net-worth individuals to invest in new business ventures. Although effective, these can often lack the transparency that these individuals require and quite often demand. Some of these high net-worth individuals (e.g., Paul Allen, co-founder of Microsoft) even attempt to run their own venture capital firms in hopes of becoming the next Microsoft. The reality is that a great many of them actually thrive on new ideas and new beginnings, not on a sole profit - motive. They don't necessarily have the knack for creating and maintaining larger corporations, but rather understand product segments, strategies and technologies, and the ways of bringing them together can improve people's lives.

Market Research

Thousands of Ideas

Why is there such an increasing demand for a consultancy like TransformTec? The answer is surprisingly simple. The number of new companies that were created and folded between 2000 and 2009 tell us that there are literally thousands of ideas that, at some point, were worth launching a whole company. The ultimate demise of these companies often rested on issues that were simple for larger, well-established companies, but difficult for a start-up. These company-killing issues included:

  • Length of time for a new market to achieve critical mass
  • Shifts in market demand
  • Capital-intensive product re-fresh cycles (e.g., re-tooling, upgrades)
  • A product or application in search of a market

New Generation

Every major technology down-turn of the past 30 years has seen a resurgence in technology innovations and investment. Lay-offs in the technology segment between 2000-2009 have created tens of thousands of entrepreneurs, and established a new generation of engineers and scientists who did not want to be cast to the winds of some whim of the corporate balance sheet; "a number on a page", as they might phrase it.


Certainly a recurring topic in both business and political circles for the past few years is the concept of outsourcing. Today this has become synonymous with sending jobs to countries where it is cheaper to employ labor. For a technology corporation, this has been a matter of course since the first manufacturing facility opened its doors in mainland China. It is less about where, and more about moving expensive capital-intensive facilities off their balance sheet while simultaneously reducing the overall cost to manufacture a product. Particularly for new market segments, it is much better for a company to outsource manufacturing than it is to hire all the people to support the factory. Take, for example, plasma televisions. The cost to build a plasma TV manufacturing facility is between $1-$2B. It is much more cost-effective for a brand like Mitsubishi, for example, to buy a plasma screen component from, say, a Philips and LG Electronics' joint-venture, and let LG-Philips's plant in Thailand manufacture it, than it is to build their own Mitsubishi plant. The marginal cost per unit is far less than amortizing the cost of a whole manufacturing plant across several million units. The same example applied to Sony when it first decided to enter the PC business in 1996. Sony wholly outsourced the PC production to Intel and Solectron until sales volumes, revenues, and margins justified ramping internal resources.

In the evolution of outsourcing, the next logical step will be outsourcing the pre-manufacturing activities, including the consulting business development and product development activities for scoping out the entire program and bringing a product to market.

Consult with an expert today. Contact TransformTec to learn how we can bring your product to market ASAP.

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Transforming technology concepts into products & solutions.
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