Technology Strategy for Product Innovation
A mix of internal idea development, market research, client demands, and a number of other elements help businesses achieve innovations. Additionally, they regularly come upon original ideas by accident.
Manufacturers often strike a balance between customer- and market-driven innovation activities. Market research will pinpoint the general consumer demands or niche consumer demands that will spur innovation, and resources will be allocated to support organisational objectives for the advancement of products and technologies. Sometimes customers submit particular issues to be resolved without fully comprehending them or realising a solution is even feasible.
Customer demands are an external factor that stimulates innovation. If businesses adhere to a set of four best practises focused on open and transparent communication between the parties, success in customer-driven product creation may be facilitated. The second tactic for developing successful product innovation is to adhere to this methodical procedure.
1. Assemble all the data
The first step in developing a solution for a customer difficulty is to thoroughly comprehend the requirements of the client—their actual needs, not simply their claimed wants. Developers shouldn’t just fulfil the request as it is made. To fully understand the situation, they must first ask a number of probing questions, such as: Why do you need the required technology or product? What role does it play in the bigger picture? What procedures impact its functionality? What options have been successful or ineffective? A more complete solution may be available than one that only answers the customer’s original request, as shown through gaining thorough knowledge.
2. Assemble the appropriate parties and get them on the same page.
Finding the right answer for customer-centric development difficulties requires open dialogue. Customers often communicate their first requirements to contacts in marketing and sales. These parties must promote peer-to-peer contact to enrich the connection and assure the most relevant solutions, as well as enable cooperation between technical groups on both sides to ensure the correct transfer of information.
As early in the design cycle as feasible, engineers from both companies should collaborate to discuss technical difficulties and provide in-depth application knowledge. Bringing together individuals that share a same technical language promotes communication, idea generation, and efficiency while allowing all stakeholders to get a thorough grasp of the project.
3. Stay ahead of the curve
When technology developers proactively investigate possible market prospects and applications, they have a better chance of effectively satisfying future consumer demands. As was previously mentioned, one method to organise these proactive efforts is to establish a technology development track that runs concurrently with but independently of product development. The ability of developers to correctly implement these solutions when necessary to satisfy application requirements is ensured by the development of solutions for particular challenges inside developing technologies prior to client requests. Developers will be able to react to consumer requests more rapidly and successfully by doing this.
4. Prototype often and early
Before going too far down the product development route, developers may test and improve aspects by creating early prototypes, even for specific components. Virtual design analysis and virtual prototyping are examples of techniques. To ascertain the likelihood of success or failure, developers should test ideas and conduct ongoing feasibility assessments throughout a project. Then, as work continues, there are possibilities to make improvements without needing to make significant changes. These early prototypes may be produced more quickly and for less money than full systems, which lowers costs and accelerates development.
It is advisable to test the components that provide the most risk or technical difficulty first, in cooperation with the client. By doing this, businesses and their clients are better equipped to assess if any obstacles are insurmountable and would require stopping a project before making significant time, energy, or financial commitments. A project may still be deemed successful even if its primary objectives are not met. The collaborative method improves connections between customers and developers and helps each side understand the requirements and skills of the other, which may speed up the next project.
Based on their findings of high-performing companies, they developed a framework for technology strategy for product innovation.
1. Define your aims and goals.
Setting and clearly stating innovation objectives is the first step in creating an innovation and technology strategy. Importantly, they must relate to the larger corporate objectives and also be translated into precise and tangible targets, such as predicted sales or profits.
2. Choose strategic locations
The core of a new strategy is determining the market possibilities to pursue and operate effectively in, or the technology on which the company would concentrate its new product efforts. In order to assist firms in choosing their strategic thrust regions (or arenas) that provide fresh and lucrative opportunities, Cooper and Edgett offer a set of dimensions and questions.
3. Create methods for entrance and assault
A company might choose to enter its selected strategic areas as an industry pioneer or a quick follower, a low-cost supplier, a differentiator, or a niche player, according to the writers. These attack plans serve as a guide for the company’s objectives, policies, and actions; whatever is selected, it should be in line with the company’s distinctive capabilities and its understanding of the factors that influence industry performance.
4. Decisions on the deployment of resources
A crucial component of a technology strategy is identifying strategic goals and assigning resources to them. This translates to good portfolio management that makes sure projects and other activities are balanced against one another and are aligned with the company goals.
5. Establish a strategic road plan.
A roadmap aids top management in communicating their plans for implementing their innovation and technology strategy. They may schedule their projects using roadmaps, which also show when product platforms will be essential and where technology development or purchase is required.