Investing with greater confidence
A good new product can bring profitability to a young company or
accelerate earnings at a mature company. In some situations, a new
product can even create a brand new industry. For example, Personal
Digital Assistants (e.g., PalmPilot, Handspring) barely existed
in the mid 90's. By 2005, the Aberdeen Group predicts those products
will have spawned an industry selling 39 million units per year
worth $6.6 billion in annual revenue.
The good news is that it's really easy to come
up with a good idea for a new product or service. The bad new is
that it's hard to come up with an idea that is good enough.
The idea has to be so compelling that customers are willing to change
their behavior - drop their old habits, spend time to understand
your product, and begin using it. With business customers, for example,
this means your product/service has to solve a fundamental business
problem - it either has to remove pain from the organization or
has to create a dramatic new possibility for them. And, it has to
do this better than any other alternative they have, including the
most popular alternative - "status quo."
But, passing the customer hurdle is just the
first hurdle. There's another important hurdle - the internal hurdle
- is the product worth launching? Can you deliver the product/service
and still make a profit? There's another hurdle - the competitor
hurdle. Can you provide a compelling product that will gain and
retain adequate market share or will this be a me-too, late-to-market
product or service?
Without appropriate consideration of the customer,
internal and competitive hurdles, the product stands a greater chance
of failure, the typical fate of most new product introductions.
Accèvero Group can help your organization evaluate the likelihood
of passing the customer hurdle, the internal hurdle and the competitive
hurdle. Typical activities in a project include:
- Developing client criteria for a "new
- Estimating potential customer demand and
- Determining implementation costs and ongoing
- Analyzing competitor capabilities and offerings
- Synthesizing data vis-à-vis the
client criteria for success
Projects are always custom-tailored and, depending
on client needs, can range in scope from a detailed financial evaluation
of the market to a "quick and dirty" assessment. Review
a case study or contact
us about your specific needs.
Client benefits typically include:
- Improvement in likelihood of new product
- Balanced evaluation of the new product
idea (customer, internal and competitive)
- Program for periodically evaluating chances
of success prior to raising R&D, operations and marketing