Manufacturing Innovation
Commercialization needs a strong marketing strategy, and at the same time will involve cross collaboration with other teams such as production, distribution, marketing, sales and customer service. Forbes, in the article, “The Eight Steps To Commercialize Innovation,” looks at innovation through the lens of manufacturing:
- Understand the “noise” in the system. Too many manufacturers still get caught up in developing ideas without any real concept of how, why or where they will make a difference. Before the ideation process even begins, it is vital to invest the necessary time and resources into understanding the “noise” in the system. This means figuring out whom the innovation is targeting and identifying their precise pain point that you are trying to solve. Only then can you be sure your innovation journey will set off on the right track.
- Run a divergent innovation session. Feature targeting a group of around 10 people from different areas of the organization (think marketing, sales, design, engineering or any others who have insight to share from a unique perspective). This is a highly creative, no-holds-barred session. Rather than answers, what you are looking for here are as many ideas as possible centered around your targeted concept.
- Hold a convergent innovation session. This is the filtering stage during which the myriad concepts brought up by the divergent innovation session are consolidated and evaluated in more detail. The task here is to separate the ideas that are either impossible and improbable from the one (or more) that stands the best possible chance of making it all the way through to commercialization.
- Build a works-like prototype. This is one in which aesthetics and design are set aside in favor of developing the core nuts and bolts that can turn the new product into a functional reality. The aim here is to demonstrate that it is indeed possible to address the pain points at hand.
- Develop a looks-like prototype. Here, the designers get involved, packaging the idea into something that will be visually and stylistically capable of cutting through in the market. If it is a product, this means getting consensus on the look and feel. If it is an experience or process, it involves understanding the different stages and technologies required to support it.
- Combine into a full prototype. Combine the works-like prototype with the looks-like one. As well as evaluating the concept in its entirety, now is the moment to run focus groups and testing sessions with the relevant stakeholder segment. Capturing and, crucially, acting upon their reactions can help you shape and improve the prototype before committing resources to making more.
- Start scaling. Once you have addressed any issues or concerns that arise during the prototype trials, it is time to create a larger lot size. As well as allowing you to perform more testing, this offers a chance to discover what is needed to deliver the product or process at scale. After all, being able to produce, store and distribute it promptly and cost effectively is key to long-term commercial success.
- Conduct a soft launch. Before going into widespread release, it is highly advisable to launch your innovation with a more targeted customer segment or in a specific location. This is a step many manufacturers miss but one that can actually make or break the journey to commercialization. Why? Because it is a final chance to test (and refine) its usability, price and effectiveness without the potentially negative financial and reputational effects of launching unsuccessfully to the mass market.
The journey doesn’t stop there, of course. A full launch will involve research, data analysis, and customer feedback as well to refine the product. The timetable may vary from product to product, but Forbes estimates to give yourself at least a year or more to follow these key steps.
Thoughts on Scaling and Supply Chain
In “Sizing Up Your Innovation’s Impact,” All Things Innovation looked at the issues of product scalability. If your company has successfully developed an innovative product or service, you might be at the stage of the process known as scalability. Perhaps you have created something new but your hard work isn’t over yet. It is just beginning, as you gear up to bring the product to market. The challenges are numerous, and there will be many bottlenecks along the way. Stay committed to pursuing the best results possible by scaling viable ideas into products, services and businesses, all while keeping in mind that it’s value creation that you’re after. It’s time to scale up.
Supply chain and innovation may not seem related, yet the activities are more connected than one might think. We looked at this topic in “Strengthen the Supply Chain to Build the Product Pipeline.” For example, once a product is designed and developed, supply chain management calls for the sourcing of materials, manufacturing the product and getting it to the market. Supply chain programs and innovation generate more interaction than at first meets the eye in terms of logistics activities and more. As more innovation groups focus on a broad range of skills in an increasingly cross-collaborative world, it makes sense to communicate within the organization, coordinating with a supply chain specialist when a new product is ready to be launched.
Creating the Right Innovation Mindset
The journey of innovation doesn’t stop at the sketch pad or tablet screen. Indeed, manufacturing will play a key role in the commercialization process. But it is an end-to-end mindset that innovators and manufacturers must embrace to proceed with and deploy their new innovation, whether it’s a new product or service. It’s a multi-stage process that includes production, distribution, marketing, sales, and customer support. And don’t forget the legal team and the crucial steps of intellectual property protection, regulatory compliance and approvals.
A successful commercialization strategy aims to make a product as valuable and profitable as possible for the customer. This should also include post-launch support to gather customer feedback, improve the product, and maintain customer satisfaction. Successful commercialization strategy isn’t just about launching a product, it’s about planning for its sustained success.
Video courtesy of EY Global
