Reasons for new product failure Overestimation of market size Poor design Incorrect positioning Wrong timing Priced too high Ineffective promotion Management influence High development costs Competition
Idea Generation The systematic search for new-product ideasSources of new-product ideas Internal External
Idea ScreeningIdentify good ideas and drop poor ideasR-W-W Screening Framework: Is it real? Can we win? Is it worth doing?
Concept Development and Testing • Product ideais an idea for a possible product that the company can see itself offering to the market • Product conceptis a detailed version of the idea stated in meaningful consumer terms • Product imageis the way consumers perceive an actual or potential product
Marketing Strategy Development Marketing strategy statement includes: Description of the target market Value proposition Sales and profit goals Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives
Types of Test Markets Standard test markets Controlled test markets Simulated test markets
How can great Firms Fail?The Reason for Failure: The Reason for Success:• Listen to their customers • Listen to their customers• Invest in Technology • Invest in Technology• Satisfy their customers • Satisfy their customers next-generation needs. next-generation needs. Innovators Dilemma
Reinventing Your Business Model1. Articulate what makes your existing model successful. For example, what customer problem does it solve? How does it make money for your firm?2. Watch for signals that your model needs changing, such as tough new competitors on the horizon.3. Decide whether reinventing your model is worth the effort. The answer’s yes only if the new model changes the industry or market. Johnson, Christensen, and Kagerma
Understand Your Current Business model1. Customer value proposition.
Understand Your Current Business model2. Profit formula.Revenue – Cost = Profit XTurnover
Understand Your Current Business model3. Key resources and processes.
Take a good technology andwrapped it in a great business model
Modern Business Approach (MBA 2.0)50 Innovative Ways to grow your business in the Middle EastSaturday, December 22, 2012 – 9:00 AM – 5:30 PMDubai Knowledge Village, Building 19, Office: 208Based on the 4 most innovative business models:Price: AED 2,300 (Early Bird Price: AED 1,590)Email: firstname.lastname@example.org Phone: 055 9852570