The document discusses the financial costs of being late to market with a new product. It shows cash flow over time for a company, with negative cash flow during development, an increase when the product launches, growth as the product matures, and decline near the end of the product's life. It notes that if a product is late to market, customers may lose interest and switch to competitors, revenue decreases and expenses increase compared to an on-time launch. The document stresses the importance of innovation to avoid this by innovating business models, technologies, products/services, and targeting new customers and markets.

1. Being late to market
HOW MUCH MONEY YOU LOSE WHEN YOUR NEW “INNOVATIVE”
PRODUCT SHIPS LATE
By/ K.fathy

2. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Series1 Series2 Series3 Series4 Series5
Cash flow
in or out.

3. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Development
and research.
Vision, Mission, Time plan, collecting requirements,….

4. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Lunching your
product Revenue.
Product Lunching

5. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Mature to max
revenue.

6. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Near
End

7. Cash flow over time
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow

8. When getting late to Market
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Customers lost
interest
& go to your
competitors

9. When getting late to Market
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Your end time does
not change

10. When getting late to Market
-3
-2
-1
0
1
2
3
4
5
6
0 5 10 15 20 25
$
TIME
Cash flow
Revenue decreases
Expenses
increase

11. When getting late to Market
 You need to refresh your product lines.
 Be innovative !!!

12. Innovate or die
Business Model innovation
 Value proposition.
 Supply Chain.
 Target Customers.
Technology innovation
 Product and Services.
 Process Technology.
 Enabling Technology.
What
How
Whom

13. Business Model
innovation.
Value proposition.
 Amazon ”New products”
 IBM “from products to services”
o New products
o Enhancements of current
products

14. Business Model
innovation.
Supply chain.
 The shinny point
Venture arms
o Organization.
o Partners
o Process

15. Business Model
innovation.
Targeting
 Ecosystem Changes
 Market dynamics