Making a commercial success of new products and services dec 11
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An overview of the theory and practice of go to market planning for breaktrough products and services. Based on "Crossing the Chasm" by Geoffrey Moore with added elements around Value Proposition.
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Making a commercial success of new products and services dec 11
- 1. Paul Fileman Disrupting Markets i i k Making a Commercial Success of Making a Commercial Success of New Products and Services paul.fileman@results‐zone.com www.results‐zone.com
- 2. Go‐To Market Planning Making a Commercial Success of New Products and Services Introduction Hits and Misses Chasm Disruption (& health warnings) Disruption (& health warnings) Defining a Strategy for Success g gy Conclusions Further Reading
- 3. Hits and Misses Hits and Misses Over complex Solution to a problem already solved more cheaply Too late No niche Beachhead Solve a problem Do something so much better that deficiencies vs. “traditional” technologies traditional ignored Right time
- 4. Technology Adoption Life Cycle Technology Enthusiasts Visionaries Vi i i Pragmatists P i conservatives i Sceptics S i Early Early Late Innovators Laggards Adopters Majority Majority
- 5. Revised Technology Adoption Life Cycle Chasm h m Visionaries Vi i i Pragmatists P i Early Early Late Innovators Laggards Adopters Majority Majority
- 6. Disruption – Health Warning Incumbent Experts • Right • Wrong • Trust • Understanding • Bias ‐ ££££££
- 7. Nexxt Targ get Product Custo omer Market Development Positio oning Whole Product Whole Product Commercial Success Compe etition £££££ Prici ing Strategy Distrib bution Partn ners and A Allies Compe elling Reason to Buy R Targ get Custo omer
- 8. Target Customer ‐ Beachhead Not target • Impersonal g p market • Abstract • Real people Real people Target • Basis for images Customer • Target Customer Characterisation
- 9. Compelling Reason to Buy Compelling Reason to Buy gree t Deg elf‐healed to which se Scale of Problem (Pain)
- 10. Whole product Whole product • Innovation – MP3 encoding MP3 encoding • Generic product Training Additional – MP3 player l & hardware Support Generic • Whole product Product – iPod System Cables integration g – iTunes software – iTunes web site Installation & – iTunes library Commissioning
- 11. Partners and Allies Partners and Allies • Relationships • Companies – Needed to fulfil the whole product • Manufacturing • Logistics • Installation • Commissioning C i i i • After Sales • Champion / Evangelist
- 12. Breakthrough account (s) Distribution B2B Few deals Volume • Sales channel – Target customer savvy • Fulfil – whole product – Withi Within expectations of target customer t ti ft t t • Speaks “Target Customer” fluently Security Installers • SME • Credit • Skills • Sales order cycle time
- 13. Pricing • Target customer budget • Value gain – Fixing broken process Fixing broken process – Improving ineffective process – Enabling new process Enabling new process • Budgeting process – Payback > 12 months? • Capital budget? • Cost of pain
- 14. Competition • Old technology • Nil consumption • Alt Alternative solutions ti l ti – Service vs Product – Capital vs Revenue
- 15. Positioning • Credibility – Target niche? • Brand – Reputation – Prior experience
- 16. Next target customer Next target customer • Success? – Dominate niche – Momentum • Facilitate entry into adjacent niches
- 17. Conclusions • Memorable failures • Disruption • Beachhead • Value Proposition • Courage • Fantastic successes
- 18. Further Reading Further Reading • Geoffrey A. Moore, Crossing the Chasm ‐ Marketing and Selling Technology Products to Mainstream Customers, Capstone, ISBN 1‐84112‐ 063‐4 • Clayton M. Christensen / Michael E. Raynor, The Innovators Solution, Harvard Business School Press, ISBN 1 57851 852 0 Harvard Business School Press ISBN 1‐57851‐852‐0 • John W. Mullins, The New Business Road Test, Financial Times / Prentice Hall • ISBN‐10: 0273708058 ISBN‐13: 978‐0273708056 • Jonas Ridderstrale / Kjell Nordstrom, Funky Business, Prentice Hall, ISBN 0 273 65907 3 0‐273‐65907‐3 • ?What If!, Sticky Wisdom, Capstone Publishing Ltd, ISBN 1‐84112‐021‐9 • Malcolm McDonald / Martin Christopher / Simon Knox / Adrian Payne, Creating a Company for Customers, Prentice Hall, ISBN 0‐273‐64249‐9