Download commercialization success in innovation development

COMMERCIALIZATION
SUCCESS
IN INNOVATION DEVELOPMENT
Tuija Luoma, VTT
Challenge Management
Opportunities & Risks
Basic Research
Trends
Legislation,
Norms
Ideas &
Innovation
Potentials
Market Needs
Strategy
Foresight
Concept
New Product
Development
Development
R&D
Resources
New Technologies
Road Maps
Customer Values
Commercialization
Business Growth
Competition
Scenarios
Weak Signals, Development Impulses
Commercialization management in
INNORISK
• Our goal is to develop practical tools for the use at
commercialization decision making.
• The tools and procedures include e.g.
– Commercialization risk map for identification of risks
– Success and uncertainty management tables for the analysis
of risk
– Risk profiles and tables for evaluation and selection of risk
reducing measures.
• When risks are taken into account from the very beginning of the
innovation process, commercialization procedures and marketing
strategies shape up little by little and they do not come up
unexpectedly when the product is ready.
– Increases the probability of a successfull commercialization.
COMMERCIALIZATION MANAGEMENT FRAMEWORK
Inte
rac
tion
wit
h
tion
c
a
er
Int
Market risks
stra
teg
y
Innovation ready to launch
t
en
m
n
viro
n
e
ss
e
n
usi
b
h
wit
Product life
cycle
management
NPD
Concept selection
Identified significant
opportunities
Launching and
after sales risks
commercialization
risk assessment
methods
RISK MANAGEMENT STEPS
Identification
of risks
Analysis of risks
Evaluation and
selection of risk
reducing measures
Implementation
and follow-up
Risk maps and
allocation
commercialization
success and
uncertainty tables
Risk profile and risk
consequence / propablity
analysis
Risk management
control measures and
implementation
Product / Concept
Technology
• Exellence and superiority is
visible
• Novelty value to customer
and end-user
• Benefit from product
• Emphasis of the product
• Acceptability in markets
• Pricing
• Product life cycle
• Design
• IPR and branding
• Opportunities identified
• Maturity
• Reliability
• Usability
• Technology teething
problems
Market / Marketing
• Key customers
• Market segmentation
• Market need
• Time scale
• Market situation
• Rapid adoption of new
product and technology
• Possible barriers to
implementation identified
• Sales chain
• Target group information
concrete
• Reference customers
• Marketing channel
generation
• Changes in market situation
• Marketing strategy
• Changes in competing or
complementary products
• Marketing methods
• Co-operation with vendors
• Pre-launching and test
marketing
• Fear of loser reputation
• One-sided communication
• Unworkable message
commercialization
Environment
• Trade organisations
• Acceptability
• Legislation
• Economic and political
situation
• Taxation
• Social development
• Ecological development
• Taking interest groups into
consideration
Commitment
• Vendor commitment
• Non-commitment of
launching responsible
• Marketing channel
commitment
Business
• Non-allocated
investments
• Saving on investments
-thinking
• Fit to strategy
Launching process
• Firm's real capabilities
(productional, marketing,
logistics etc.) not identified
• Logistics network
management and constant
development
• Uncontrollability of
launching process
• Timing
• Launching delay
APPLYING RISK MAP TO INNOVATION PROCESS
- COMMERCIALIZATION RISK MANAGEMENT
PHASES