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Timing Innovation


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Timing Innovation

  1. 1. Reggy Mortier Market Director The moment of truth in launching innovations Het moment van de waarheid bij het lanceren van innovaties
  2. 2. <ul><li>Context (Case) </li></ul><ul><li>Summary & Conclusion </li></ul>Presentation scope Determine Bepalen Control Beheersen Secure Beveiligen
  3. 3. Context
  4. 4. Product platform strategy Platform Strategy - Technology - Product Family Strategy - Market - Vision - People - New Product Introduction - Product / Service -
  5. 5. Three platforms / families of rugged displays
  6. 6. For extreme installations
  7. 7. In extreme environments 100% humidity, interference, sand and dust -46°C +71°C
  8. 8. Price range Low End Market Segment High End Market Segment
  9. 9. thinLITE display family
  10. 10. Determine: fix or find out precisely, calculate Product Life Cycle Monitoring (Management)
  11. 11. Determining the MoT = Profit monitoring x x MoT: Defining & Developing MoT: Selling
  12. 12. Result of our PLC analysis Main Segment Lower Cost & New Size & Performance Low End Market Segment - Disruptive, “Good Enough” Competition - Emerging Segments - New Requirements -
  13. 13. Control: be in command of, manage, restrain Product Portfolio (Platform) Management
  14. 14. To control the MoT = To USE your ... Cannibalization
  15. 15. Bad cannibalization Lost Profit by Bad Cannibalization GOOD
  16. 16. Cannibalize for MAXIMUM RETURN only BIO-MIMICRY Eliminate Competition - Procreation - Secure Food For Offspring - Procreation -
  17. 17. Cannibalize for MAXIMUM PROFIT only
  18. 18. Three possible profit scenarios: III is right one III II I 3000 6000 Cannibalized Profit Lost Profit To Competition Regained Profit New Profit
  19. 19. Resulting profit contribution & ROI 9000 III
  20. 20. MoT was about 2 years later: Hypothetical Ex. Investment
  21. 21. Secure: make certain or safe, succeed in getting Part I: Securing sales (and value based pricing) Part II: Securing maximum profit
  22. 22. Secure: make certain or safe, succeed in getting Part I: Customer Engagement & Involvement
  23. 23. Customer engagement <ul><li>To share & mitigate the risk of a new product introduction </li></ul><ul><ul><li>creating EARLY customer “Buy-in” & initial customers ! </li></ul></ul><ul><ul><ul><li>Crucial to get the wheel rolling and </li></ul></ul></ul><ul><ul><ul><li>To get through the nearly “unavoidable” dip ! </li></ul></ul></ul><ul><ul><li>improving and tuning the product with SELECTED customers </li></ul></ul><ul><ul><ul><li>Find more & new ways of using your product </li></ul></ul></ul><ul><ul><ul><li>Using initial design provisions ! </li></ul></ul></ul>
  24. 24. Avoiding the Voice of the Customer “trap”
  25. 25. During development @ all major stage gates <ul><li>Stage Gate 0: Voice of the Customer @ product definition </li></ul>
  26. 26. Customer engagement <ul><li>To strive for & achieve customer Delight ! </li></ul>
  27. 27. KANO Customer Needs Model KANO Leads to loyal customers & better pricing Didn’t do it at all Did it very well BASIC NEEDS EXCITEMENT NEEDS PERFORMANCE NEEDS Spoken Wants Unspoken Basics – Unless Violated Unspoken Excitement Satisfied Dissatisfied
  28. 28. Example: delight & lower cost !
  29. 29. Example: Product provisions lead to new uses
  30. 30. Secure: make certain or safe, succeed in getting Part II: Phased Product Introduction
  31. 31. Phased product introduction <ul><li>In different, separate market or price segments </li></ul><ul><li>To maximize profit contribution per segment </li></ul><ul><ul><li>& consequentially in your total market </li></ul></ul>
  32. 32. Example: Phased introduction per segment Low End Market Segment Main Market Segment Emerging Segments I II III
  33. 33. Summary & conclusion
  34. 34. Summary <ul><li>Determine the moment of truth </li></ul><ul><ul><li>By monitoring your profit evolution (PLC) </li></ul></ul><ul><li>Control the moment of truth </li></ul><ul><ul><li>By “using” cannibalization </li></ul></ul><ul><ul><ul><li>to maximize your total profit (portfolio) </li></ul></ul></ul><ul><li>Secure the moment of truth </li></ul><ul><ul><li>By true customer engagement </li></ul></ul><ul><ul><ul><li>To sell early & surely (risk management & delight) </li></ul></ul></ul><ul><ul><li>By phased product introductions per segment </li></ul></ul><ul><ul><ul><li>To maximize your total market profit </li></ul></ul></ul>
  35. 35. Thank you <ul><li>More information: </li></ul><ul><li>Related articles in and PUB </li></ul><ul><li>Reference books: </li></ul><ul><li>Pictures: istockphoto </li></ul>