Case Study: New Technology but
Not New Products
Problem: A young communications company had some
terrific new technology. When they tried to sell the technology
to prospects, they left it up to the prospect to figure out how
to best apply the technology. But the sales weren’t happening.
Why? The company wasn’t focused on specific business problems
that companies were experiencing in targeted industries
Solution: In working with the telecommunications
company, BEK Enterprises was able to help them package their technology
into a line of new products targeted at specific markets. The products
addressed specific business challenges that, generally speaking,
companies had allocated some amount of budget towards in order to
address.
The most important thing we did, and that you should always do,
is talk to customers and prospects. There inputs were invaluable
in helping us determine what markets should be targeted and the
direction that the products would need to go over time. The customer
input also enabled us to test what we were thinking in terms of
a value proposition and fine-tune it based on their reactions and
ideas.
Step One: Market Analysis
Since the company had technology but no product or target market,
we started with the few customers they had. We looked at what was
successful and why, and from there examined a number of potential
markets where companies were spending dollars to solve the same
or similar problems.
Step Two: Product Strategy
In parallel, we talked about how we could take the technology and
package it into multiple products that would address the identified
pains that companies were experiencing.
Step Three: Competitive Landscape
When we first began working with the communications company we asked
them who their competitors were. Their answer: “we don’t
have any except status quo”. That was a very telling statement.
If there aren’t any competitors, then there isn’t a
market. Competition is a good thing. As we started to flush out
potential markets and got our hands around what the products looked
like we were able to identify competitors, big and small, that were
targeting the same or similar markets, companies and problems. This
validated that there were indeed viable markets where companies
are spending money to solve a specific set of challenges.
Step Four: Make vs. Buy
Since the company already had the technology we did not need to
make any make vs. buy decisions. However, some of the components
of the products were from third parties. When we were working on
the packaging and pricing aspects, we had to factor this information
into the overall cost of the products before determining the actual
price of the products.
Workflow and Results
We went through the process iteratively, and each time we broadened
the number of customers/prospects that we spoke with. We also spoke
to industry analysts and other industry thought leaders.
Without defining success criteria that is measurable, it is very
difficult, if not impossible, to determine if you are in fact successful.
We created a set of success criteria for the new products as well
as marketing, product quality, and services. Our metrics became
more specific and achievable with each iteration. They included:
- A specific number of new customers by specified dates
- Specific revenue targets by product by specified dates
- Specific revenue targets by market by specified dates
- A specific number of new strategic partners by specified dates
- A targeted range of desired market share by a specified date
- New versions of each product every six months (this metric
mapped to the product roadmap)
- 100% customer referenceability
Success -- the Ultimate Measuring Stick
The new line of products that the communications company introduced
into their target markets was very successful. The company now uses
the same process to determine other new product lines and markets
as well as for enhancements and end of life decisions for existing
products.
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