Developing Innovations: Pitfall #2
Hard at work on the 95% of your development effort.
However, the second pitfall looms…
After a productive 5% of your effort has gone into developing a good idea and turning it into a solid value proposition, attention is now focused on getting the technology right. You have well understood the message of the effort required to move a technology from TRL level 6 to 9. And you think that you can sidestep the effort issue by involving a future supplier. Co-development is the ‘in’ thing to do, so why not your company and its future supplier?
Excellent plan, but be very, very, very sure that your future supplier has the technology that the new product will ultimately need. A co-developing supplier rightly expects to be your supplier of choice when the product comes onto the market. And the supplier will, if having a reasonably sound business mind, focus on technologies that they have available in their company. If among those technologies the one your new product really needs is not available, the co-development relationship will be a very unhappy one.
When using a supplier in co-development you have two choices. One would be, to be both convinced that the technology the supplier can offer, is the technology of choice. And you should be convinced that the other party is the supplier of choice, and not a technology partner of convenience. Alternatively, you could signal to suppliers that you are looking for their innovations to be incorporated into your products. Might sound a bit passive, but is actually taking place in many industries. In that case, be able to explain to suppliers what benefits you would like to offer to your customers. And in any case, take good care of your supply chain! Next week the final pitfall, one of your own making ›
For further information
Three pitfalls of developing innovations with winning business models
- Don’t underestimate the 95% of your innovation effort! The first pitfall is right ahead
- Hard at work on the 95% of your development effort. However, the second pitfall looms…
- Limiting the development effort to 95% seems feasible! Oh dear, the third pitfall opens up!
Find more information about developing innovations with winning business models ›
Jeroen de Kempenaer
Value propositions, business modeling, business cases, road mapping, portfolio management
This article was originally published on LinkedIn.