invention to innovation - journey of a high tech product

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© 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

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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.

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Page 1: Invention to Innovation - Journey of a High Tech Product

© 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

Page 2: Invention to Innovation - Journey of a High Tech Product

© 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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Page 3: Invention to Innovation - Journey of a High Tech Product

© 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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Page 4: Invention to Innovation - Journey of a High Tech Product

© 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

Page 5: Invention to Innovation - Journey of a High Tech Product

© 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

Page 6: Invention to Innovation - Journey of a High Tech Product

© 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 ?

Page 7: Invention to Innovation - Journey of a High Tech Product

© 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

Page 8: Invention to Innovation - Journey of a High Tech Product

© 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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Page 9: Invention to Innovation - Journey of a High Tech Product

© 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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Page 10: Invention to Innovation - Journey of a High Tech Product

© 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

Page 11: Invention to Innovation - Journey of a High Tech Product

© 2014 Savita Kini ([email protected])

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The Technology Adoption Cycle

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Source: Crossing the chasm by Geoffrey Moore

Page 12: Invention to Innovation - Journey of a High Tech Product

© 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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Page 13: Invention to Innovation - Journey of a High Tech Product

© 2014 Savita Kini ([email protected])

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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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Page 14: Invention to Innovation - Journey of a High Tech Product

© 2014 Savita Kini ([email protected])

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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

Page 15: Invention to Innovation - Journey of a High Tech Product

© 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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Page 16: Invention to Innovation - Journey of a High Tech Product

© 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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Page 17: Invention to Innovation - Journey of a High Tech Product

© 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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Page 18: Invention to Innovation - Journey of a High Tech Product

© 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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Page 19: Invention to Innovation - Journey of a High Tech Product

© 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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Page 20: Invention to Innovation - Journey of a High Tech Product

© 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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Page 21: Invention to Innovation - Journey of a High Tech Product

© 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

Page 22: Invention to Innovation - Journey of a High Tech Product

© 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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Page 23: Invention to Innovation - Journey of a High Tech Product

© 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/

Page 24: Invention to Innovation - Journey of a High Tech Product

© 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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Page 25: Invention to Innovation - Journey of a High Tech Product

© 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