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Got an Idea?
Have you got a product idea which you want to take forward, develop and prepare for market? If so, then we would like to talk to you and see how we can assist you. A number of our projects have come from this route.
During the feasibility stage of product development, you need to gather information and perform analysis to assess the feasibility for a new product. The fact that investment in product development and the cost of design changes increase rapidly after the feasibility stage emphasizes the importance of doing your homework well at the feasibility stage. We take the following three steps to assess this;
- Is It Real?
Does a market exist for the product? Is there a true need in the marketplace? Which markets might benefit from such a product? Will customers buy it? How large is the opportunity? Can the product actually be made? What technologies are required? Do we have these technical capabilities in-house, or are there opportunities to license or acquire what we need?
- Can You Win?
Analyse the competitive environment. Is the proposed product competitive? What are the competitive strengths of the product? Will we compete based on price, performance, innovative features, service, reliability, or time-to-market? Is this competitive basis sustainable? What do we expect the competitive response to be? Is the basis of competition in line with our overall strategy?
- Is It Worth It?
Do we have realistic estimates of sales? Are product costs acceptable? Are development costs affordable and acceptable? Is the product going to be profitable? Is its profitability acceptable and as good as or better than other opportunities that the firm has? Is there an adequate return on investment? Are the risks understood and are they acceptable? Is this product in line with our company strategy? These profitability questions are normally answered with a formal business case that shows projected profit over the life of the product or expresses this data in the form of return on investment?
We have available to download standard confidentiality agreements, if you have not completed one so far, then it’s a good idea to do this. By using our standard confidentiality agreement you are not committing anything to DATUM Product Development. Get the confidentiality agreement here. |
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