Product Commercialization entails all activities within a company, from ideation to the actual product launch, service, and beyond. It represents all the execution elements of how companies launch and bring products to the market and continue to service them as applicable. In today's environment, all companies need to assess this critical aspect and analyze how they can get better at it and remove any choke points.
Commercialization has been for long a topic of discussion in board rooms and strategic meetings. However, traditionally, this has not been tracked effectively.
Companies need to consider monitoring and analyzing a critical metric: Product Launch Velocity, or CycleTime aka Speed of Light (SOL) schedule.
Over the last decade, the following vital trends have played a dominant role directly influencing manufacturers and the product launch and realization processes —
TREND 1 : Supply Disruptions and Continuity
Over the last few years, we have seen multiple supply disruptions and constraints on essential commodities that have significantly delayed product launches and caused an increase in the associated costs. Unfortunately, many companies, in spite of talented teams, have not been able to 'detect' these trends causing inevitable delays and missing valuable time to market expectations.
TREND 2 : Global Instability
We are witnessing several geopolitical trends like Tariff wars, Brexit, etc. that are triggering companies to re-think their supply chains and go to market strategies. Transforming and shifting supply chains is not an easy maneuver. It requires careful thinking and needs to be timed right. It can directly impact a company's ability to launch and build products.
TREND 3 : Age of the Disruptor
This past decade, we have witnessed the rise of the 'Disruptor' companies, mostly the unicorn startups, like FormLabs, Desktop Metal, Samsara, who have radically disrupted their traditional markets by unparalleled agility and precision. These companies successfully leverage and possess a cloud-centric infrastructure stack for all of their execution processes. Thanks to this cloud-first approach, they do not need to carry the 'baggage' associated with legacy enterprise applications.
Sure, there will be opportunities for them to improve and scale-out. However, their 'shark-like' traits of agility, precision, and nimbleness will always be the unique differentiators compared to significantly larger competitors.
TREND 4 : Rise of the Customer
Given the meteoric rise of social this last decade, it behooves companies to pay close attention to customer's needs, expectations, and wants. Today, every product company is tracking the pulse of its customers and their perceptions across all major social networks.
Amidst all these trends, companies have had to come to terms with the "new normal" of managing —
Aggressive Product Launch Schedules
Given the global marketplace, companies are gearing up to launch products across multiple geographies and regions. It further amplifies the complexity for product innovation teams to successfully execute their New Product Introduction (NPI) launch process in a very compressed timeframe.
Rapid Price Erosion
Products, once launched, tend to undergo a rapid price erosion by competing against counterfeit products in the marketplace. Companies need to think through maintaining premium prices post product launch by embarking on service offerings and relevant Software OTA updates.
Companies are starting to transform their business offerings to a subscription-driven revenue model, which requires software and hardware teams to collaborate closely with the rest of the commercialization teams to carefully manage the end-user experience.
Global Go-To-Market (GTM) Strategies
Companies in today's environment need to plan for global product launches and closely monitor the specific needs of their global customers. Product innovation and execution teams are continuously challenged to take into account all these particular needs.
So, essentially the million-dollar question is, how should companies stack up against their execution processes & systems to create a ‘rinse & repeat’ environment of commercializing products at speed and scale while hitting cost targets? How well-positioned are you given the disruptive competitive landscape?
CONTACT US I For all questions on addressing your end to end processes from product ideation through service and to perfectly execute them at ‘Speed of Light’, aka SOL, reach out to our high tech industry expert at email@example.com
Product Commercialization is a team sport, and it requires each functional team to play their part in concert and harmony with one another.