Innovation & Product Development Is research killing your best new product ideas…
Is research killing your best new product ideas without you even knowing it?
Innovation & Product Development Is research killing your best new product ideas…
Focussed innovation is vital for growth
Today’s business
More
cust
om
ers
More money from each customer
3
Innovation & Product Development Is research killing your best new product ideas…
Deliver growth
Minimise risk of failure
Reduce time from ideation to market
The innovator’s challenge
Develop radical innovation
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Innovation & Product Development Is research killing your best new product ideas…
But the way most people screen new product concepts is seriously flawed
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Product A Product B Product C Product D Product A Product B Product C Product D
Sales six months after launch (€m)
Cannibalisation Incremental volume
Innovation & Product Development Is research killing your best new product ideas…
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We at TNS
In 40% of cases, companies would have taken different screening decisions if they had focused on incremental growth potential instead of pure volume.
Innovation & Product Development Is research killing your best new product ideas…
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We must take incremental growth potential into account % Incremental
Low
High
Low High
Trial potential
Prioritisation based on incremental trial potential
Innovation & Product Development Is research killing your best new product ideas…
Understanding incremental growth potential means better advice
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Progress
Stop
Rework
Innovation & Product Development Is research killing your best new product ideas…
Understanding incremental growth potential means better advice
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Incremental winners
Investigate
De-prioritise
Winning cannibals?
Innovation & Product Development Is research killing your best new product ideas…
A correct choice upfront does save a lot of money
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29%
Prelim market assess
Idea screening
Prelim tech assess
Market study
Financial analysis
Product development
In-house prod test
Customer prod test
Test market
Pilot production
Business analysis
Production
Market launch
Average % of innovation spend
Source: Cooper & Kleinschmidt
Point of no return
Innovation & Product Development Is research killing your best new product ideas…
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We identify the concepts with strong trial potential
Top 25% benchmark
Bottom 50% 50 – 25% Top 25%
Trial Bottom 50% benchmark
Snack bar Crisps of the world
Dressed to krill
Spicy variant
Pizza pieces
Chilli variant
Trial
10 39 28 16 9 47 0
23
32
60
Innovation & Product Development Is research killing your best new product ideas…
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Together with an understanding of incremental potential
Top 25% benchmark
Bottom 50% 50 – 25% Top 25%
Incremental trial Cannibalisation Bottom 50% benchmark
Snack bar Crisps of the world
Dressed to krill
Spicy variant
Pizza pieces
Chilli variant
Tri
al
4 11 24 4 9 37 0
60
16
22
Winning cannibal?
Incremental winner
Incremental winner
De-prioritise De-prioritise De-prioritise
Innovation & Product Development Is research killing your best new product ideas…
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Growth Development guide
Product expectations: High quality Long-lasting flavour
Price point: € 1.49 perceived as good
Target
Potential incremental buyers currently buy brands X and Y
Watch out
Slight weakness in clarity of message
To provide precise development plans
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4 13
15
19
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Based on Total Category Buyers
Incremental growth Brand cannibalization Portfolio cannibalization Bottom 50% benchmark Top 25% benchmark Bottom 50%
50 - 25% Top 25%
Strengths
64
Relevance
59
Clarity
Weaknesses
63
Price Value
40
Excitement
55
Early Adopter trial
28
Uniqueness
21
Appeal
17
Credibility
Innovation & Product Development Is research killing your best new product ideas…
We use these principles in all steps in the roadmap to growth
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Corporate goals & capabilities
Ideation Market opportunities Concept prioritisation Concept /product development and
refinement
Volume estimation/launch
Innovation & Product Development Is research killing your best new product ideas…
Where to search for growth opportunities?
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Matrix Need for growth
Commercial development
Market launch
Idea or strategy generation
Concept screening
Sized, prioritised, and profiled product opportunities
Innovation & Product Development Is research killing your best new product ideas…
Fuelling growth with a broad range of initiatives
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Renovation
Clear guidance on how to improve
existing products
Assess potential for products imported
from other countries
International portfolio roll-out
Success requirements to guide new product development
Innovation
Portfolio optimisation
Maximise portfolio efficiency
Innovation & Product Development Is research killing your best new product ideas…
Stick with the plan: idea to execution
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Innovation & Product Development Is research killing your best new product ideas…
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And take value into account
(from the Oxford English Dictionary)
Value [noun]
2) how much something is worth compared with its price
1) how much something is worth
3) the quality of being useful or important [synonym: benefit]
to value [verb]
2) to decide that something is worth a particular amount of money
1) to think that something is important