Jeb and Bill,
The following is a suggested outline for our project with IdeaLab (I also sent the word document to your inboxes) -- it is an amalgamation of several outlines from Mgmt of Tech, Marketing Channels, and Internet Marketing. Not all of the subbullets will apply, but I kept them in to at least ask the question. Let me know what you think -- as you can see, the bulk of the outline deals with how IdeaLab should organize itself in terms of partnerships, etc. in order to capture value from its technology:
Outline based on answering three basic questions: (?s adapted from Mgmt. of Tech)
1. How does Watson decisively affect overall customer value?
2. Can IdeaLab capture this value in the face of competition?
3. Does IdeaLab have the organizational capabilities necessary to deliver the product? If not, how should they organize their channel structure?
TABLE OF CONTENTS
1) Introduction
a) IdeaLab Background
i) Watson Technology
(1) Knowledge Management Applications
b) Overview of AI Software Industry (not exactly sure how to define industry)
i) History
ii) Market Potential/Growth Projections
c) Competitive Landscape
i) Direct competitors
ii) Indirect competitors
2) Assessing Technology Drivers
a) Benchmarking
i) The Technology S-Curve; What is the current stage of the industry and the technology?
ii) Customer value proposition
iii) The Market S-Curve (i.e., cumulative adoption versus time; s-shaped pattern of diffusion) Why is it potentially disruptive?
(1) Watson has reached Early Adopters
(a) Motorola pilot
(2) Crossing the Chasm; evaluating state of diffusion of technology to customers:
(a) Watson versus competitor strategies
(b) Reference points
(c) Assess Diffusion Challenges going forward
(i) Changing customer requirements
(ii) Changing technological possibilities
(iii) Competition
(d) Recommendations on target segments
3) Capturing Value in Face of Competition
a) Drivers
i) The Nature of the Appropriability Regime
(1) Intellectual property protection
(a) Licenses?
(b) IP?
(2) Speed?
ii) Control over "specialized" Complementary Assets (can only be source of strength if tightly held)
(1) Things IdeaLab owns/controls
(a) Capital - No
(b) Brand name - No
(c) Distribution - No
(d) OEM relationships - No
(e) Customer relationships - Yes, at this point
(f) Supplier relationships - n/a
(g) Complementary technology - Yes?
(2) Things IdeaLab could do:
(a) Sales and service expertise
(b) Capture customer knowledge
iii) Industry Dynamics and Maturity
(1) Licenses expire?
b) Tactics for IdeaLab to speed diffusion of technology:
i) 1st mover?
ii) Partnering - recommendations?
iii) Aggressive pricing
iv) Lowering switching costs for early users
v) Developing or encouraging development of complementary products and services
vi) Standard-setting
(1) Proprietary ownership closes the "loop"
(2) Guides internal and external development
c) Recommendations for Channel Structure
i) Current segments served/targeted
ii) Current channel structure
iii) Recommended channel structure
Potential Exhibits:
-5 Forces
-NPV on pricing
-Market projections
-Competitor comparisons
7:51:14 AM 
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