invention to innovation - journey of a high tech product
DESCRIPTION
Presented at Institute of Product Leadership Webinar - Oct 8, 2014. Discussed the various aspects involved in taking a new product into market. Audience - Wanna be Product Managers, Product Marketers.TRANSCRIPT
© 2014 Savita Kini ([email protected])
Invention to Innovation Journey of a High-Tech Product
Savita Kini
Technology. Innovation. Marketing
email: [email protected]
October 8, 2014
© 2014 Savita Kini ([email protected])
Invention to Innovation
Intellectual property and Invention is key to the
success of a technology business, providing a
unique sustainable advantage.
However, Innovation is the mechanism by which intellectual property or invention is applied successfully to improve a business process, for consumer or business benefit, or create new ways of doing things…
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© 2014 Savita Kini ([email protected])
Types of Innovation• Revolutionary -
• Early research on internet - TCP/IP protocols, free email
• Bio-medical instruments such as CT Scanners, Magnetic Resonance Imaging (MRI) – Nobel Prizes in 1979 & 2003
• Evolutionary -
• MP3 Players Vs iPod + iTunes
• Top loading washing machines Vs front loading washing machines
• Application of Technologies
• Using lasers/photonics for cosmetics
• Dehydration technologies in processed food industry3
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© 2014 Savita Kini ([email protected])
Getting started on Innovation
Examples of innovation –1. Focused problem solving – Netscape, Cisco, Google, Microsoft, Apple 2. Accidental - eBay, craigslist, intuit3. Creating new market (customers) - AirBnb 4. Replicating an idea locally – MakeMyTrip, ClearTrip, Flipkart 4
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Is there is a hard problem? Is there a solution? Is existing solution good
enough? How to solve differently?
Ideas come from many sources:
-Customers or Competitor’s customers
- Industry analysts
- Company’s executives
- Sales and marketing staff
-Product development team
-Customer service representatives
-Operations staff
© 2014 Savita Kini ([email protected])
Are you considering Innovation ?
Solution Considerations
Price
Time to Build, Time to Market
Competition
Cost (and/or Funding)
Brand IP Protection
Sales
Distribution (Channels)
Customer Support
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5Product OR Service
Combination of Product and service
© 2014 Savita Kini ([email protected])
What are you offering? • Product or Service Examples
• Tata Sky, Home Theatre System, Cellphone
• Online (Amazon, Flipkart, eBay, Microsoft)
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Neurosynaptic – A low cost, diagnostic kit for Tele-
medicine
•Directly to Consumers - B2C
•Consumer products, Software, Software as a service
•Directly to Businesses – B2B
•System management tools, Telecom Products to ISPs
To Whom ? And How ?
© 2014 Savita Kini ([email protected])
Solution to a critical
problem
Market analysis & business case
Funding & Execution Team
Prototype & Validate, Beta Test, Pricing
Update & build, Marketing Launch &
Ramp up
Scale Production & Selling
Support, Feedback & Next rev
Innovation Management Cycle
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Product /
Solution
Lifecycle
Management
© 2014 Savita Kini ([email protected])
Innovation Process Reality
• Innovation requires funding – great ideas without funding to build and scale will remain ideas only.
• Innovation requires adoption as no one to use what you build, will remain idea !
• Innovation is messy – lot of trial and error, failures are real
• Innovation builds on collective genius of people with diverse skills – design, development, marketing, sales, operations, finance, HR, etc
• Innovation requires leadership that encourages out-of-box thinking
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© 2014 Savita Kini ([email protected])
Developing the Solution
• Diverse mix of people contributing product and market development – Engineering, Legal, Marketing, Sales, Manufacturing, Finance
• External advisors from relevant domains as necessary
Organization
• Define product or service clearly – hardware, software, service, web-based offering, etc
• Bundling few elements together or single point solution
Product (or Service)
• One time payment or multiple payments for a service offering
• Perceived benefit from the solution for the problem
Price (i.e Value to Customer)
• Market /customer segmentation
• Product/solution launch, incentives to channels and new customers.
Marketing & Sales
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© 2014 Savita Kini ([email protected])
People & Organization
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EngineeringDesign &
development
Customer SupportWarranty, Service &
Gather Feedback
Product ManagementLifecycle, Features, Pricing,
Competitors, Benchmarks,
Beta Customers
MarketingStrategy, Segments,
Positioning, Launch,
Media, Influencers,
Competitors
SalesDirect to customer
& Channels
Supply Chain &
ManufacturingPrototypes, Vendors,
Production, Yeild & Quality
Finance
ROI, Budget,
Revenue, Funding,
Deal Structures
Legal
IP, Deals, Regulatory
HR & Admin
Talent Mgmt &
Fun, Operations
© 2014 Savita Kini ([email protected])
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The Technology Adoption Cycle
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Source: Crossing the chasm by Geoffrey Moore
© 2014 Savita Kini ([email protected])
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Strategy for High Tech Markets
Seed your
product here.
Let them
influence
Visionaries
Make Visionaries
loyal customers for
references with
pragmatists
Market Leadership
and sell to
Pragmatists
Focus towards
commoditization, lower
cost and higher volume
Leave the skeptics
alone, look for the
next opportunity
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The Challenge Scaling from early adopters (Visionaries) to majority
(Pragmatists)
Develop a niche segment of customers
• That desperately needs the product or solution
• Has good funding to invest & propensity to buy
• Is easier to win & very little competition
• Have partners to help deliver whole solution
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Concept of Whole Offer
Potential Product
Augmented Product
Expected Product
Generic Product
To cross the chasm, and meet needs of
pragmatists and conservatives, the product has to
go beyond generic product, by that time generic
products become less differentiated.
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As PC market grew, differentiation
was additional packaging & software
An Example of Whole Offer
Generic
Product
(Personal
Computer)
Additional
Software
Additional
Hardware
System
Integration
Installation/
Troubleshoot
Cables /
Accessories
Training &
Support
Standard
Procedures
Design/ Color
options
© 2014 Savita Kini ([email protected])
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Getting to the Customer• Push and Pull Strategies
• Push - Actively promote product to full-fill identified need of
customer
• Pull – Create the need that customer is aware but hasn’t yet
full-filled
• Complimentary Offer – Strategic alliances to offer
complementary products. Example – Cisco & EMC joint
venture for data center solutions
• Bundled offer – Combining different products for specific
segments. Example Google Office or Microsoft Office for
Students and commercial users
• Services led product offer – Domain experience & services.
Eg. Infosys banking services w/ Finnacle product
• Product led services offer – Products with design &
maintenance services. Eg RedHat Linux
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© 2014 Savita Kini ([email protected])
Pricing – Why is it important ?
Role of a business venture is to make profit.
To make profit, you have to sell the product or
service at a price point that allows to cover costs
(fixed and variable), and gives sufficient profit for the
specific industry including the resellers.
Price is the Pivot
PROFIT / Ability to
extract Value
CUSTOMER BENEFIT
(Customer’s Perceived value,
Differentiation
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© 2014 Savita Kini ([email protected])
What is Marketing & Selling ?
Difference between Marketing & Selling
Marketing describes the value of the product or service to the customer by positioning and promoting the features versus the price
Selling is convincing a customer to buy the product or service
Marketing should drive Sales. And a company defines itself not by the product it sells, but by benefit it brings to the customer.
A good marketing strategy and execution makes sales cycle shorter and easier.
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© 2014 Savita Kini ([email protected])
Selling
• Go-to-market – Alone
Products which are sold directly to customers.
Leverage retail, online or offline.
Ex. High end routers to ISPs.
• Go-to-market – Channel
Products are sold through other companies who add
their mark-up or offer services as a bundle.
• Strategic Partner
Joint effort to sell product or service with shared
revenue from the sale
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© 2014 Savita Kini ([email protected])
Value Chain – Example 1
Reseller ServiceProductCompany Customer
Whole Offer
The intellectual property is packaged into a product, service
into a complete offer for the end customer
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© 2014 Savita Kini ([email protected])
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Value Chain – Example 2
Infrastructure
Go-to-
market
Supply chain
Services
Technology
Creator InfluencerDemand
generatorReseller Fulfiller Integrator
Manager/
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© 2014 Savita Kini ([email protected])
Marketing Mix– Launch to Scale
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Initial Launch• Focus on early
adopters
• New branding & positioning
• Press & Advertising
• New collaterals & website
• Social media presence
• Leverage Influencers & Analysts
• Early customer references
Customer Acquisition
• Expand customer references
• Leverage physical events
• Channel Partners
• Increased Ad spend
• Outreach to target groups
• Expand social media presence
• Content Marketing
Managing and Sustaining
• Continued content marketing
• Push offers & incentives
• Increase Ads, Events
• Competitive positioning & benchmarking
© 2014 Savita Kini ([email protected])
Product Vs Services Marketing
• Product –Tangible, Features, Types, Availability, retail or door-to-door or online, Price, Competition, Complimentary products, Warranty, Services
• Services –Often intangible, type, availability, price one time or continuous, dependencies on underlying infrastructure, timelines/SLA’s
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© 2014 Savita Kini ([email protected])
Marketing in Social, Mobile era
• Establish a social media and digital footprint plan –website, Facebook, twitter, linkedIn, blogs, SEO etc
• Establish a content marketing strategy and execution plan
• Dedicated people and investments for continued execution. Shared responsibility across marketing, engineering and the executive team
• Measure ROI with data analytics – new lead generation, lead acquisition, lead management, customer feedback, new product features, brand presence & experience
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Sources:
• http://www.marketo.com/infographics/content-
marketing-vs-traditional-advertising/
• http://contentmarketinginstitute.com/
© 2014 Savita Kini ([email protected])
Scale the business
1. Grow customer base,
2. Manage customer relationships
3. Fine tune execution
4. Scale operations
5. Sustained Marketing, Promotions, Advertising
6. Scale management team
7. Manage organizational growth processes
8. Financial management & operations
9. Manage competition
10.Expand product portfolio & offers
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© 2014 Savita Kini ([email protected])
Summary – Invention to Innovation
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Solution identification
Target customer segment
Build bare minimum product
Beta test
Regulatory approvals
Pricing & Complete offer
Market launch (PR, Ads, Incentives)
Publish Customer success stories
Sales enablement and operations
Customer support
Channel Partners onboarding & enablement
Competitive Strategy
Management
Vendors & Manufacturing
Sustained Marketing