Paul Fileman

i i kDisrupting Markets

Making a Commercial Success ofMaking a Commercial Success of

New Products and Services

paul.fileman@results‐zone.com

www.results‐zone.com 

Go‐To Market PlanningMaking a Commercial Success of New Products and Services

IntroductionHits and Misses

ChasmDisruption (& health warnings)Disruption (& health warnings)Defining a Strategy for Successg gy

ConclusionsFurther Reading

Hits and MissesHits and Misses

Over complexSolution to a problem already solved more cheaplyToo lateNo niche

BeachheadSolve a problemSolve a problemDo something so much better that deficiencies vs. “traditional” technologies traditional technologies ignoredRight time

Technology Adoption Life Cycle

TechnologyEnthusiasts

Vi i i P i i S i

Innovators EarlyAdopters

EarlyMajority

LateMajority Laggards

Visionaries Pragmatists conservatives Sceptics

Adopters Majority Majority

Revised Technology Adoption Life Cycle

Chhasm

Vi i i P i

Innovators EarlyAdopters

EarlyMajority

LateMajority Laggards

m

Visionaries Pragmatists

Adopters Majority Majority

Disruption – Health Warning

Incumbent ExpertsExperts

• RightRight• Wrong• Trust• Trust• Understanding• Bias ‐ ££££££

Market Development Strategy

£££££Commercial Success

R

TargCusto

Compe

Reason 

Partnand A

Distrib

Prici

Compe

Positio

Nex

TargCustoget

omer

ellingto Buy

nersAllies

bution

ing

etition

oning

xtgetom

er

ProductWhole Product ProductWhole Product

Target Customer ‐Beachhead

Not target  • Impersonalgmarket

p•Abstract

•Real peopleTarget 

Customer

•Real people•Basis for images•Target Customer Characterisation

Compelling Reason to BuyCompelling Reason to Buyaled

elf‐he

ich se

to wh

gree

 t

Scale of Problem (Pain)Deg

Whole productWhole product

• InnovationMP3 encoding– MP3 encoding

• Generic productl– MP3 player

• Whole productAdditionalhardware

Training&

Support Generic– iPod– iTunes softwareSystem

integrationCables

Product

– iTunes web site– iTunes library

g

Installation&

Commissioning

Partners and AlliesPartners and Allies

• Relationships• Companies

– Needed to fulfil the whole product

• Manufacturing• LogisticsLogistics• InstallationC i i i• Commissioning

• After Sales• Champion / Evangelist

Distribution

Breakthrough account (s)

B2BDistribution B2BFew dealsVolume

• Sales channel– Target customer savvy

• Fulfil – whole productWithi t ti f t t t– Within expectations of target customer

• Speaks “Target Customer” fluently

Security Installers• SME• SME• Credit• SkillsSkills• Sales order cycle time

PricingPricing

• Target customer budget• Value gain

– Fixing broken processFixing broken process– Improving ineffective process– Enabling new process– Enabling new process

• Budgeting process– Payback > 12 months?

• Capital budget?

• Cost of pain

CompetitionCompetition

• Old technology

• Nil consumption

Alt ti l ti• Alternative solutions– Service vs Product

– Capital vs Revenue

PositioningPositioning

• Credibility– Target niche?

• Brand• Brand– Reputation

– Prior experience

Next target customerNext target customer

• Success?– Dominate niche

– Momentum– Momentum

• Facilitate entryinto adjacentniches

ConclusionsConclusions

• Memorable failures • Disruption• BeachheadBeachhead• Value Proposition• Courage• Courage• Fantastic successes

Further ReadingFurther Reading

• Geoffrey A. Moore, Crossing the Chasm ‐Marketing and Selling Technology Products to Mainstream Customers, Capstone, ISBN 1‐84112‐063‐4

• Clayton M. Christensen / Michael E. Raynor, The Innovators Solution, Harvard Business School Press ISBN 1‐57851‐852‐0Harvard Business School Press, ISBN 1 57851 852 0

• John W. Mullins, The New Business Road Test, Financial Times / Prentice Hall

• ISBN‐10: 0273708058 ISBN‐13: 978‐0273708056

• Jonas Ridderstrale / Kjell Nordstrom, Funky Business, Prentice Hall, ISBN 0‐273‐65907‐30 273 65907 3

• ?What If!, Sticky Wisdom, Capstone Publishing Ltd, ISBN 1‐84112‐021‐9

• Malcolm McDonald / Martin Christopher / Simon Knox / Adrian Payne, Creating a Company for Customers, Prentice Hall, ISBN 0‐273‐64249‐9