B2B Technology markets can make switching by the customer too easy. Existing or legacy technology can become too cumbersome to use . Or refuses to realize its promise after trying for years. The client, in despair, becomes willing to try a new supplier. That supplier is willing to transfer the legacy system.
The solution is not to become sticky by merely embedding your technology in the customer’s processes. Or make the customer a hostage to your technology. Instead, it’s useful to think of what we learnt in the industrial B2B era as we continue to compete in the knowledge economy.
Avoiding the Inventor’s bias in Concept Testing for New Products is really important. You are an inventor (or the NPD team in a large company) who has come up with a great product idea, clearly there is market need and the idea is pretty clear. You can easily start production, maybe a prototype locally and then large scale globally sourced production at low cost. But please pause and take a deep breath…..
Product deletion decisions are tough calls to make for CEO's but Lexmark CEO Paul Rooke had to do exactly that with the Lexmark inkjet business. Lexington, Kentucky will lose 550 jobs and global job losses will be 1700 including workers in their Philippines plant. Lexmark will also sell 1000 inkjet related patents. The Lexmark shareContinue reading “Product deletion decisions: Lexmark quits Inkjet business”
This is the July 4th weekend in America and celebrations are underway – and it's a great time to think about the Smiley Curve of Innovation. The Smiley Curve came to my attention reading Fareed Zakaria's great book "The Post-American World," and here are some thoughts on "The Smiley Curve of Innovation " this AmericanContinue reading “The Smiley Curve of Innovation-celebrating the American spirit 4th of July”
Innovation and New Product Development (NPD) involves three types of testing viz. concept testing, product testing and market testing. Of these the product testing or product use testing is the most overlooked one with avoidable negative outcomes for market success. But first are the three types of testing: Concept Testing: occurs in the early partContinue reading “Innovation: Product Use Testing is the most overlooked type of testing”
The Product Protocol is a written document that the multi-disciplinary new product development team puts together to help team members from functions like R&D,Design,Marketing,Procurement, Production co-ordinate.
If you spent 1 Billion $ in product development in a low-tech category like shaving razors with a powerful brand like Gillette, the shaving experience should be enough.It was true till the economy slowed. And Gillette market share dropped 3% between 2010 and 2012. And now Gillette is apparently revealing a razor industry secret, i.e. how long a shaving razor lasts according to Fortune. If you are wondering, its five weeks….
The tyranny of buy-class relationships hinders innovation. Buy-classes are a part of the Buy Grid that also considers Buy Phases. The Buy-Grid is an old model of looking at buying decisions in the supply chain. Robinson, Faris and Wind in 1967 (here is a nice summary) came up with the buy-grid to say that organizations have different processes depending on whether the B2B buy was a straight rebuy, modified rebuy or a new buy.
An earlier post on how innovation create jobs is rather popular. However,people seem to have questions about the “why” in the link of innovation and jobs. Why should creating a new product or service result in new jobs?Where in the process of innovation are these jobs created?
In a rapidly changing world- Oreo cookies give you a sense of stability and comfort and that is the soul of the Oreo brand. The largest selling cookie of the 20th century has survived numerous wars,technology upheavals,financial meltdowns and extreme globalization. If you were used in childhood to "twist,lick and dunk" and are now watchingContinue reading “Happy 100th Birthday to Oreo cookies: keeping the soul of a brand”