One of the things we observe is that some companies
make quite step change innovation on their products.
So they model the product to do something
significantly better than other products can do,
or they invent a new product that can do
something no one else could do before.
And when you make those step change innovations,
you don't have a lot of customers calling you
because they're not aware of what you have
and they're not aware of the benefits.
And therefore,
many companies who sort of is prone to do these kinds of innovations,
they actually have a too long time to market.
And they also tend to be challenged in convincing
customers to actually pay for these additional advantages.
Hence,
they lose the expected margin they would have on such products.
So what are some of the key insights that led to this new approach?
A couple of insights was very apparent when we
when we meet organizations who are in this sphere.
One is that you have a business development function who
actually deliver or develop a really groundbreaking product.
Then it's taken to marketing to be wrapped in messaging.
Then it's given to sales who is then eventually taking it to market.
And what we observe is that the original innovation intent
never comes across in the combination with customers.
So all the problems that you can solve better than competitors,
etc.,
they get lost in translation and therefore are valuable.
What are some of the things that you can do
to be very rarely conveyed to the customers.
Second data point is that we see time to market is often
significantly longer than what the organization planned it to be.
Because when you innovate a product and it's super groundbreaking,
you think that everybody would want this.
And then often we see that those new innovations fail
to deliver on the time horizon that is initially set.
What is some of the proof that this insight
is worth looking into for other companies?
We have seen a number of benefits.
We have seen a number of benefits.
First one being that time to market is reduced so that customers
are actually more likely to engage in dialogues faster and thereby
making sure you get your first sales better sooner than later.
Second thing is that we see increased win rate.
So once you are in customer dialogue,
they are more likely to then turn into business.
And thirdly,
that you also see that the price point that the
organization managed to get is actually closer
to the target price compared to in the pre-situ
where you are in the pre-situation where you are in
the pre-situation where you are not capable of
really explaining what value your new product brings.
All right.
So with this challenge and these insights
to back up that there's a real problem here,
how do you solve that coherence end-to-end and bridging what
happens in R&D all the way to sales guys hitting the market?
What we have seen work is that you actually make
a process of how you actually bring innovation,
marketing,
customer specialist sales together to actually
frame the value proposition of the product.
So make sure that nothing gets lost in
translation throughout these functions.
So that's the first step in the approach.
Second step in the approach is that you specifically
specify how much value your customer actually stand
to achieve by actually buying into this product.
And that you support that with solid evidence
so that when you are in sales situations,
there is no doubt
that the message you bring is also valued.
And then,
as always,
you need to have a commercial leadership team who reinforces
that because it's a new behavior that people need to
implement and that takes a certain amount of leadership effort.