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From Innovation to Competitive Edge. Getting the new-market product proposition right. The New Market Proposition Problem.

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from innovation to competitive edge

From Innovation to Competitive Edge

Getting the new-market product proposition right

the new market proposition problem
The New Market Proposition Problem

In a study of 229 electronics manufacturers’ innovation failures by Stanford, 16% of executives cited marketing, 13% cited insufficient customer benefit and 7% cited difficulty of market development.

Conclusion: new product development is expensive and risky,

The low success rate of new products means that roughly 50% of the resources allocated to product development and introduction is wasted, either through cancellation or failing to achieve adequate returns1.  For every four products that enter development, only one makes it to market.

Conclusion: but it’s worth doing for the growth and profit..

A study in Harvard Business Review found that 86% of product launches were line enhancements and only 14% were new market innovations. The line enhancements generated 62% of the total revenue and 39% of total profit in the study, while the new market innovations generated 38% of the revenue and 61% of the profit.

Conclusion: ..and some of the problems can be fixed – but how?

By understanding how to get a competitive advantage

1. “3,000 Raw Ideas = 1 Commercial Success!”, Stevens and Burley, Research Technology Management, 1997

competitive advantage what s changed since 1980 updating competition theory for the information age
Competitive Advantage – what’s changed since 1980?Updating competition theory for the information age

Competitive advantage is the strategic advantage that one company has over its competitors that allow it to make above-average returns

Michael Porter’s theory of Competitive Advantage is over 30 years old

reducing new market product failure risk by targeting competitive advantage in the market
Reducing New Market Product Failure RiskBy targeting competitive advantage in the market
  • ..for, which requires a ..

.. whose attributes lead to..

..who need a job done, which they..

..which require a..

..targeting particular..

..with specific..

a simplified example of attribute based product differentiation
A simplified example of attribute-based product differentiation

Room Temperature Maser

  • The individual capabilities of the new technology are categorised
  • The capabilities are combined in different ways, and with other technologies, to develop marketable attributes
  • The attributes are matched to market requirements – if an attribute is not good enough, when will it be good enough?
  • Potential markets are assessed for size, value and competitive offerings
  • A differentiated product offering is constructed and market-tested






Pulse ,but

CW shortly











1.45GHz only







High Gain



Low Noise



High stability

Good enough



per unit est.

Not good enough

case study 1 security protocol developer
Case Study 1: Security Protocol Developer

Result: Company closed additional funding using my report and is close to first sale

case study 2 waste to energy technology
Case Study 2: Waste to Energy Technology

Result: JV formed which is arranging planning permission on first site.