Monetizing Innovation: How Smart Companies Design the Product Around the Price
The book explains how most companies get sidetracked by Product-Driven Thinking and how to innovate by starting with the price customers will pay, and creating the product for that price. It will present a process that Simon-Kucher & Partners has used to help dozens of others avoid innovation failure by making pricing and marketing their guiding light throughout the product development process. This book will also explain the following 4 common red flags: Feature Shocks - Product concepts overloaded with features and functions, the result of trying to serve too many customers and customer needs because the core customer and need has not been nailed down. That makes the product costly to produce, forcing it to be overpriced. Dead on Arrivals - Products that hit the market dead on arrival because they are the wrong answer to the right market need, or the right answer to the wrong market need (i.e., one that very few have), at a price the market will not bear. Minivations - Products that fall short of their potential and the company's expectations Hidden Gems - An internal failure to recognize and commercialize a truly breakthrough product under development because the market or consumer need has not been thoroughly explored.
From the Back Cover A Revolutionary Challenge to Traditional Thinking About Innovation In a world in which nearly three-quarters of all new products or services miss their revenue and profit goals, Monetizing Innovation should be required reading for all product and marketing leaders. I cannot overstate the importance of this groundbreaking new work. --Leela Srinivasan, Chief Marketing Officer, Lever I must really compliment the authors on writing a first-rate book. They stress the importance of starting an innovation project with marketing and pricing in mind before building anything. More specifically, they show how companies need to carefully identify the target market and the price that the target customers would be willing to pay for the innovation, as if it were already available. --Philip Kotler, S.C. Johnson & Son Distinguished Professor of International Marketing, Kellogg Graduate School of Management and author of Winning at Innovation Madhavan Ramanujam is to monetization strategy is what Bob Marley is to reggae music. You must read this book. --Bill Gurley, Board member of Uber and General Partner at Benchmark We launch a new collection twice a year, so a systematic approach to monetizing these innovations is critical for us. The practical, effective and counterintuitive guidance in Monetizing Innovation has helped us tremendously. --Christoph Kargruber, Executive Vice President of Innovation & Product Management, Swarovski The lessons in this book are highly relevant for the automotive industry, where we can expect to see more change in the next 5-10 years than we saw in the last 50. As General Motors continues to lead this change in the industry, Monetizing Innovation will be an excellent blueprint for maintaining competitive advantage. --Stefan Jacoby, Executive Vice President & President International, General Motors Optimizely uses the principles outlined in this book, which remind us that the products we deliver to our customers must align to their willingness to pay for them. This book offers invaluable lessons for growth companies at all stages. --Dan Siroker, Co-Founder and CEO, Optimizely
From the front Cover Businesses need to innovate to survive, yet the failure rate for innovation is shockingly high. Nearly three out of four new products or services miss their revenue and profit goals -- or fail entirely. Companies embark on the long and costly journey of product development hoping they'll make money on their innovations, but not knowing if they will. It doesn't have to be that way. This book lays out nine rules for monetizing innovations, built on the lessons Simon-Kucher & Partners has learned through conducting more than 10,000 projects on behalf of companies around the world. This deep body of knowledge allows the authors to identify issues and solutions in new product monetization. For example, while most of us believe that there are many reasons why new products might fail, Monetizing Innovation reveals that failures fall into four diagnosable categories: Feature Shocks, Minivations, Hidden Gems, and Undeads -- and that each is easily preventable. Case studies showcase how some of the world's most innovative companies like Uber, Porsche, LinkedIn, Dräger, Optimizely, and Swarovski have used principles outlined in this book. A direct challenge to the standard spray and pray style of innovation, Monetizing Innovation presents a practical approach that can be adopted by any organization, in any industry. Companies must rethink the innovation practices that have cost countless billions of dollars. Monetizing Innovation presents a new way forward. Find out what customers value and how much they are willing to pay. Design the product around the price, and the results will surprise you. More information: http: //www.monetizinginnovation.com