robert brown1 the value of an idea “great devices are created by engineers. great products are...

Robert Brown 1

The Value of an Idea

“Great devices are created by engineers. Great products are created

by marketing”Peter Druker

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Mission of Marketing

To create and occupy a unique space inside the mind of the target customer

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Where is the value?

• You must understand the core value of your idea• Boil it down to its essence

– Strip it naked– Ask yourself why it’s really important– Ask your customer why it’s really important– Ask non-believers why it’s really important– Seek criticism– Face the truth

• Identify the nugget of gold

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You must understand your core value!!

…If you know yourself as well as your enemy, you need not fear the result of a

thousand battles…

Sun Tzu

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If the value is not clear you may feel compelled to…

Add stuff

Make stuff up

Go on faith/belief/hype

Use anecdotal evidence

These are danger signs

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Talk about your core value

• If you are hesitant, ask yourself why you are hesitating– Do you understand it?

– Do you have doubts?

• Don’t worry about someone stealing your idea– If you’re idea is truly valuable then someone else has

already thought about it

• Eventually, you must sell it

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Core Value – Ah Ha!!

• When you find it, you can begin to build– Market need– Competitive positioning– Economic advantages– State of technology

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A Recent Example• Wireless startup company• Proposal was to build a complete 3G wireless access product

portfolio– Base stations, controllers– Hardware, software, ASICs

• The value proposition– Reduce carrier cost

• Reduce number of cell sites• Simplify system design• Simplify management

– Increase carrier revenue• Increase user density• Increase high bandwidth, value-added services

• Project cost: ~$100M USD

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Why are you doing this?

• There is a huge market opportunity for 3G wireless technology

• Existing vendors cannot make the leap from current technology to 3G

• I have the team who knows how to do it

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What is the problem to be solved?

• Carriers need 3G wireless technology to increase revenue and reduce cost

• Current technologies cannot make the leap to support 3G– New technology is required

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What is the one thing that you have that no one else has?

• Immediate Answer– I can build wireless systems to be higher performance

and lower cost than anyone else

• Time passes– I can integrate functions more cost effectively onto

hardware boards

• More time passes– My ASICs can do the required 3G processing more

efficiently and cost-effectively

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And Finally

• I have developed unique algorithms for 3G base band signal processing

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Now for the hard questions

• Is there a market?• How big is the market?• When is the market available?• Who is competing?• In what form should the core value be packaged?• Can I build it?• Who will buy it? Why?• How much money can be made?

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Bottom Line

• Do your homework– Pay attention to the details– If it’s not clear then try doing less

• Know your core value– …and have it printed on your forehead

• Get positioning right– Positioning + strategy = competitive edge

• Think BIG… then think about how to do it without any money!