Uploaded byWard Hills
Demand driven product_innovation_
The document outlines the stages of product commercialization, detailing the necessary structures and information exchanges involved in product development and delivery. It emphasizes important considerations such as market identification, funding requirements, and departmental responsibilities during the product development process. Additionally, it highlights the importance of evaluating potential products based on demand, cost, risk, and return on investment.
Demand driven product_innovation_
- 1. Albion Demand Driven ProductInnovation Ward Hills Entrepreneur in Residence Centre for Entrepreneurial Learning Judge Business School – University of Cambridge 22 April 2013
- 2. Albion 21/04/2013 © 2013Albion Innovations 2
- 3. Albion Outline • Stages ofproduct commercialisation • Structures supporting product development and delivery • Information exchanges • Information capture • Questions in product development diligence • Evaluation of potential products • Bottom line 21/04/2013 © 2013 Albion Innovations 3
- 4. Albion Stages of Commercialisation 21/04/2013 Albion Innovati ons TRL12 3 4 5 6 7 8 9 KeyHurdles •Design requirements •Market identification •Productisation •Business model •Partner •Beta test •Cash control •Manufacturing •Distribution •Communications •Value perception Operations& TeamRequired •Technologist •R&D facilities •IP rights “Freedom to Operate” •Managers •Programmers /Designers •Regulations/ QA/QC •Marketing •Manufacturing •Legal •Financial •Customer service •Human resources •Distribution •Investor relations •External market experts •Public Communications Funding Required “Seed” •<£50-200K •Grants “Angel” •£250-500K •Angel / VC “Early VC” •£500K-5M •Small –Mid VC “Late VC” •£3-20M •Large/Focused VC “Exit Investment” •£20-50++M •IPO/ PE/ Trade sale Research Conceive Prove Demonstrate Validate Beta Regulatory Qualify Shipping 4
- 5. Albion Commercial Product Departments Commercial • Customers • Distribution •MarComms • Orders Product • Product definition • Regulatory affairs • Clinical trials • Product support Development • Novel capability • Clinical feasibility • Meeting Customer needs Development 21/04/2013 © 2013 Albion Innovations 5
- 6. Albion Commercial ProductDevelopment Specifications Requirements Information Development and Commercial • Functionality requirements •Potential capability Product and Development • End user requirements • Delivering product specifications. Commercial and Product • Service requests/support • Orders / Manufacturing relationships. 21/04/2013 © 2013 Albion Innovations 6
- 7. Albion Information Repositories Orders & Service •Manufacturing orders • Service requests and histories Technical File • Regulatory • QA/QC • Performance standards • Manufacturing standards • Design History Feature Backlog • Visibility of potential needs • Populated by anyone with market contact Commercial ProductDevelopment Technical File 21/04/2013 © 2013 Albion Innovations 7
- 8. Albion Product Development Diligence Should we dothis? Can we do this? Could we do this? Outcomes: • Product update • New product • No further action Each department has a veto. Commercial ProductDevelopment Should? Can? Could? 21/04/2013 © 2013 Albion Innovations 8
- 9. Albion Commercial ProductDevelopment New Product Evaluation Demand &Price • Potential market • Route to market? Cost & Support • COGS? • Infrastructure? • Regulatory requirements? Development Cost • Resources ? • Time? Risk • Competitors? • Uncertainty? • Strategic fit? What is the demand? At what price? Production cost? Support requirements? Development cost? Risk? 21/04/2013 © 2013 Albion Innovations 9
- 10. Albion Commercial ProductDevelopment Profit and Loss Top lineRevenue • Demand & Price • Important to acquirer Margin • Production Cost & Support Requirements • Is this a sustainable business? • Contribution to growth? Return on Investment • Development Cost & Risk • Capital requirements • Payback period • Possible loss Revenue Margin ROI What is the demand? At what price? Production cost? Support requirements? Development cost? Risk? 21/04/2013 © 2013 Albion Innovations 10
- 11. Albion Summary Departments • Focus • Responsibility Information •Document • Review Questions • Should? • Can? • Could? Process and veto Bottom line result Ward Hills ward@albion-innovations.com wardhills 21/04/2013 © 2013 Albion Innovations 11 Commercial ProductDevelopment Revenue Margin ROI What is the demand? At what price? Production cost? Support requirements? Development cost? Risk?
Editor's Notes
- #8 Infrastructures Complex databases (CRM) system simple as a notes on a customer visit