A Vibrant “New Product Development/Go-to-Market Commercialization Process” is Pivotal for Market Growth and Profitability.
Consumer behavior, attitude, life style and life stage have resulted in consumers demanding change, and therefore companies must innovate to survive and stay competitive. Products reach the end of their life cycle, and some have a jig saw blade type pattern where there is a more rapid decline to end of life cycle…up and down, and up and down rapidly. In this global micro economy no business can offer the same unchanged product or service without change or newness. Otherwise sales and profits will decrease due to staleness and the lack of products development and innovation. In 2011 Apple released an innovative product called iPod which was extremely successful. However Apple was not satisfied and continued developing new and innovative products. Apple later commercialized new products like iPhone and iPad which contributed significantly to Apple’s market share gain, consumer and customer loyalty, brand value and equity. Today Apple has perfected their product development/go –to-market commercialization process. The iPhone is now at version 6 which this rapid change has been driven by consumer demand, and a global competitive market landscape. Apple brand value, in 2015, is estimated at $247B with a +67% year over year increase. It is the world most valuable brand driven by loyal consumers who have emotional links to the Apple brand and their innovative products.
A well defined “New Product Development/Go-to-Market Commercialization Process” can significantly strengthen your business global competitiveness, market share growth and positioning, profitability, loyalty with customers, and brand equity. For over ten plus years I’ve developed and managed “New Product Development/Go-to-Market Commercialization Processes” supporting B-2-B and B-2-C businesses across Asia, Europe, Australia, North America and Latin America. During this time period I’ve utilized qualitative and quantitative research, Stage Gate, the Design for Six Sigma, new product process protocols, and insights acquired from experts like Robert Cooper who is known as one of the gurus on new product development processes.
Success with “New Product Development/Go-to-Market Commercialization Processes”, from ideation to commercialization, can be achieved by developing and implementing a rigorous and flexible process. I have developed and used a 6 stage process consisting of 1) Arena identification, 2) Arena Prioritization, 3) Product Identification and Ideation, 4) Development, 5) Execution, and 6) Monitoring and Corrective Actions.
Stage 1 is the Arena Identification section of the “New Product Development/Go-to-Market Commercialization Process”, and this is a crucial phase of the process. At this stage you must have support from an executive team, and this team must serve as the “governing body” which sets the business direction based on the company’s vision, mission, objectives and goals linked to the overall strategic plan. Example: The executive team communicated that innovative products/services will represent 60% of the total business revenue within a 5 year time period. The executive team believes that the company is an innovator, and not a “me too”, “fast follower”, “low cost” or “commodity” business. A global cross functional team with representation from Marketing, Sales, Market Research, R&D, Forecasting, Manufacturing/Operations, Legal, Finance, Packaging, Logistic and Product Supply is commissioned after the executive team signs off on the business objectives and goals. Now at this time period the global cross functional team begins the process to identify concepts to fill the pipe line with innovative products that are commercialized annually, and where price becomes a secondary issue. The cross functional team must identify arenas based on feedback from the “governing body” and initiate steps to gain insights on potential market driven opportunities based on:
– Consumer and industry trends
– Unmet consumer needs
– University research
– Existing and new competitors
– Primary and secondary research related to consumer life style, life stage, behavior and attitude changes
– Market dynamics
– New laws and regulations, and other critical factors.
Stage 1 is critical for directing the team in the right direction, and this stage is where you put into motion the process going forward. If this process is flawed, everything else will negatively impact the process overall success rate. New products with market driven opportunities, knowing your target thoroughly and the value proposition for each stake holder in the value chain, can be a gold mine for all businesses. Let Autus Advisory Partners help you with realizing your global growth with a vigorous and innovative product/go-to-market commercialization strategy.
Stay tune for discussion on Stage 2.