This is the fourth of a series of posts to share with you six important lessons we’ve learned through our experiences working with numerous commercial clients in a variety of situations. On the path to your success in developing and commercializing technologies, they will help you avoid common pitfalls, unwarranted assumptions, and other sources of technical and commercial bias that could add up to business failures.
Find Out if “New” and “Improved” REALLY MATTER!
In this era of “voice of the customer” and data analytics, coupled with feedback from an eager salesforce, the sheer volume and rate of change of market input to new product development and improved product development activities can be overwhelming. Keep in mind that not everything “new” or “improved” is valuable or useful to your customer.
Lesson Four Case Study:
Client: Global producer and marketer in the graphic arts industry
- Client goal: 30% of annual sales from new product introductions
- Global salesforce suggested over 80 “must have” or “want to have” features for the next-generation graphic arts equipment, whittled down to 25 features after internal review
- Resources required to develop and introduce these 25 features: $40 million
Technology Assessment Need: Determine which of these 25 features really mattered to its global customer base
- Identify 160 lead users of graphic arts equipment in 7 countries on 4 continents
- Developed statistically based array of interview questions to elicit which new product features really mattered to them and why?
Outcome: Our work led to 2 important findings
- First: our client’s current generation of graphic arts equipment very closely matched the equipment that was top-rated by our group of lead users. In fact, there were only 2 feature areas where our client’s equipment lagged the ratings of the top-rated competitor.
- Second: we learned that the 25+ new “bells and whistles” initially proposed would not position our client well for the future. Customers of our client were positioning themselves to respond to the rapid technology changes associated with digital graphic arts equipment and were changing their ways of managing their capital expenditures in this area.
Based on our findings, our client company decided to allocate a portion of its $40 million product development budget to tackling the two features that customers rated lower than those of its competition. The rest of the development budget was redeployed to related product management activities and exploration of emerging digital technologies, both of which held promise for a sustainable impact on the bottom line.
For more on best practices in moving from lab-to-market, see https://prakteka.com/category/technology-assessment/
Are you looking for new customers for your existing technologies and products?
Do you have excess manufacturing capacity you’d like to put to use?
Or are you launching a new product and need to understand which end-use applications are the most promising?
We’re ready and able to help you make your decisions with confidence. Contact us at https://www.prakteka.com/contact-us/
or via direct email at firstname.lastname@example.org