Innovation for accessing new markets www.iseproject.eu
Innovation Solving market needs (in a sustainable way) - with (perceived) competitive advantages www.iseproject.eu
Some figures • 19% of products disappear during their development phase; • Products failure after launch: • 20 - 25 % in the industrial sectors; • 30 % in services; • 70 - 95 % in High-techs. • 45 - 48% of products do not meet their sales targets; • 44% of products fall short of their business profitability targets; • In the Super-Hypermarkets, 22% of new references are withdrawn from the market within one year of launch, and 75% within two years ; www.iseproject.eu Chiffres Cabinet Novacion
Main causes of failure: external factors • Poor competitiveness of the proposed product • Overestimated market potential • Non-existent market or longer to start than expected • The new products penetration time on the market was poorly assessed • The difficulty of access to distribution channels • The limited customers diversification and the high dependency risk • Wrong choices in channels or distribution methods www.iseproject.eu
Main causes of failure: internal factors • The lack of commercial efforts • A poor marketing position or a bad communication policy • Low equity and a lack of stable resources • Operating costs poorly controlled and too high in light of the company's potential • A lack of ability or competence of the new manager in the key functions www.iseproject.eu
Innovation Key Success Factors for SME Conditions The Entrepreneur Willingness, openness and innovation aptitude, risk-taking, creativity, ability to adapt, ability to anticipate, skills in project management Innovation characteristics Suitability for market needs Perceived competitive advantages Price in line with perceived value Market Important potential Growth opportunity Existing entry barriers Deadlines and duration of access defined Ressources Resources dedicated to innovation (human, technical, financial ...) Marketing Network (resource centres, partner companies ...) Strategy Relevant Definition Coherence between the project and the means Openness to outside www.iseproject.eu
Innovation steps • Identify opportunities and define the needs • Analyze the needs • Define a strategy • Implement the project www.iseproject.eu
• Identify opportunities and define the needs • Analyse the needs • Define a strategy • Implement the project Market Opportunity identification Opportunities Technological competences Competitors www.iseproject.eu
• Identify opportunities and define the needs • Analyse the needs • Define a strategy • Implement the project The needs • Explicit needs • Implicit needs • Latent/hidden needs www.iseproject.eu
Implicit or latent needs identification Put yourself in the customer’s position and imagine all phases of his experience to satisfy the need that technology / product / service aims to satisfy • What are his questions / problems? • What could improve his experience? • What could bring him value? Purchase delivery Use Complements End of life Maintenance • How long does it take to • How long does it take • Does the use ask for • Should other products or • Does the product • Does the product require find the product you are for the product to be training or an expert services be available to operate require external external maintenance? looking for? delivered? assistance? the product? maintenance? • Is it easy to maintain and • Is the place of purchase • Is it difficult to install • Is the product easy to store • If so, are they costly? • Is it easy to maintain update? pleasant and accessible? the new product? when not in use? and update? • .... • .... • Is the transaction • Are the product functions • .... • .... environment safe? effective? • Can the purchase be made • .... quickly? www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation • Define a strategy • Implement the project Needs analysis- Market segmentation 3 segmentation criteria: • Customers and users behavior • Measurability and accessibility • Operability Segment evaluation: • Company assets • Market Attractions • Required effort / investment level www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition • Define a strategy • Implement the project Needs analysis – Value definition • Customer concerns • Customer Purchase Criteria • Price sensitivity • ... Identify what can have value for the customer, what problem to solve. www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy Price determination • Implement the project The right price is positioned between the value in use for the customer (value perceived by him) and the cost of the product, at a level guaranteeing a balanced distribution of the total value created between the company and its customer. = valeur perçue par le client VALEUR D’UTILITE = prix VALEUR D’ECHANGE COUT Marge Marge d’acquisition du client de l’entreprise www.iseproject.eu VALEUR CRÉÉE VALEUR CRÉÉE
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy • Implement the project Strategy Reconciling the short term and the medium term www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy • Implement the project Competitiveness strategy • Improve processes or products to achieve lower costs – Costs advantage • Give the product unique characteristics, that the customer will accept to pay more – Differentiation advantage • To position on a niche market and to cultivate excellence – Focalization strategy www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy ERRC Grid : competitiveness tips • Implement the project Eliminate Raise Elements that do not provide The less exploited elements which added value to the customer may have value in the eyes of the customer Reduce Create Items which are too costly and Create value that is never offered whose goodwill is not perceived to customers by the customer www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy • Project feasibility studies Implement the project Economical Marketing Legal Technical Technological Business model Project Validation Organisation, Financial process www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy • Implement the project Build a partnership To better penetrate the market and expand the offer: • Accurate partner (referent) • Ensure that partners are familiar with the market: market codes (practices, language codes, regulations ...), knowledge of customers and suppliers ... • Identify existing funding sources. www.iseproject.eu
• Identify opportunities and define the needs • Needs analysis – Market segmentation – Value definition – Price determination • Define a strategy • Implement the project Test the product • Throughout the process • Involving the customer • Market confrontation • Involve partners www.iseproject.eu
Thank you Karim NEGHLI - Business consultant kneghli@aditec.org www.iseproject.eu
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