Growth or Stagnation? That is the Question
It’s not news that innovation and new product offerings are the keys to growth for the most successful companies. However, the road from concept to commercialization is fraught with risks. In fact, most concepts never make it to market and, by most accounts, the majority of the ones that do fail. Product failure has repercussions throughout an organization. In order to commercialize a concept, an organization commits money, manpower, and a host of other tangible and intangible resources. When a growth concept fails, it usually means that two overriding questions have not been explored and examined fully:
- What does the market need?
- What will the market pay for it?
In the rush to achieve rapid time-to-market, shortcuts are often taken in the product definition phase. The result is a product that is off target. Additional time is spent in rework, with subsequent requirements definition and redesign iterations.
The Answer is Innovation
- Frame innovation ideas into concept statements
- Use secondary market data to gain an initial assessment of the potential value of each concept
- Prioritize concepts to determine which ones to resource
To be successful, a comprehensive, well-defined, continuous process is needed. The starting point is an innovation or new product defined, so that proper customer needs can be captured and met. You need to build concepts that are consistent with your organization’s strategy. The design, management, and implementation of your innovation process should be based upon the needs and wants of your key markets. A multi-functional team approach increases the likelihood of your success and accelerates your time to commercialization. The output of this market-driven approach is a portfolio of business-attractive projects ready for development and commercial launch preparation.