New PDF release: Monetizing innovation: how smart companies design the

By Madhavan Ramanujam

ISBN-10: 1119240875

ISBN-13: 9781119240877

ISBN-10: 1119240883

ISBN-13: 9781119240884

"Surprising principles for winning monetization Innovation is crucial motive force of progress. at the present time, greater than ever, businesses have to innovate to outlive. yet winning innovation--measured in cash and cents--is a truly not easy objective to hit. businesses obsess over being artistic and leading edge and spend major time and cost in designing and development items, but fight to monetize them: seventy two% of Read more...

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fabulous principles for winning monetization Innovation is crucial motive force of development. this day, greater than ever, businesses have to innovate to outlive. yet winning innovation measured Read more...

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Extra info for Monetizing innovation: how smart companies design the product around the price

Sample text

But what kind of information are we trying to uncover? First, you want to understand your customers’ overall WTP for your product—the price range they would consider reasonable (if, in fact, they would pay anything at all). Then you have to ask yourself whether that price range would work for your company. It may not if you can’t deliver a market-acceptable product at a price that makes you a profit. Second, you must understand how much value customers place on each feature and what they’d be willing to pay for that value.

Consumers didn’t love the new taste—and they hated that the old Coke had disappeared from store shelves. 10 In the cemetery of undead new products, New Coke has plenty of company: McDonald’s Arch Deluxe burger, Microsoft’s Zune music player, Harley-Davidson’s brand of perfume, Procter & Gamble’s Touch of Yogurt Shampoo, Rocky Mountain Sparkling Water from Coors—all of these were brought to the market as undeads. Undeads pop up in the life sciences industry, too. Take the concept of inhaled insulin.

Have all your key people (across product, sales, and marketing functions) sit in on focus group meetings and interviews to hear the voices of your customers. The sooner you have a cross-disciplinary team involved, the better your chances of monetizing innovation. ) 7. Avoid the “average trap:” When you analyze the answers to your WTP questions, look at the distribution, not just the average response. The average response can be misleading. For instance, for two groups of customers, one willing to pay $20 and another willing to pay $100, if you calculated the average price they would pay, it would be $60.

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Monetizing innovation: how smart companies design the product around the price by Madhavan Ramanujam


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