The purpose of an operative commercialization strategy is to prepare the market entry. The key lies in focusing on few target markets, where the technology offers the highest benefit. Basis for the selection is again the consistent evaluation from market and client perspective.
In the sensitive stage of market introduction of innovations, promising product concepts can quickly fail because of errors in the operative client acquisition. Instead of a market introduction program tailored specifically for the innovation, companies too often use already existing, standardized processes for distribution, communication, or service. It is not unusual for the delicate “innovation plantlets” to be then discarded as "unfit" for the achievement of short term objectives.
An alternative to commercialization via own channels is the out-licensing of a technology or patents to other companies. The sale or out-licensing of patents can evolve into a million dollar business for companies.
MANAGEMENT BUSINESS GROUP intensively prepares the introduction of an innovation in the company and on the market together with its clients. The market introduction is prepared carefully and executed with selected pilot markets, respectively clients. As and when required, distribution channels are designed. The achievement of targets and milestones is regularly checked and flexible adjustments of the new product to a changed market and competition environment are undertaken.
In cases where the commercialization of the innovation through own channels proves to be unprofitable, MANAGEMENT BUSINESS GROUP develops a strategy for a potential out-licensing of the technology.
In what sequence should the market segments be entered?
What market entry barriers are to be considered? Which market mechanisms can be used for speeding up the market introduction?
What are the concrete technical requirements and test procedures, which must be fulfilled by a technology in a particular target market?
Which are the commercial requirements, in order to be accepted as supplier in a particular target market, e.g., willingness to pay, necessary qualification as supplier, future demand, service requirements, etc.?
How much time is needed until potential clients order not only in sample volumes, but also larger quantities?
What role do partnerships play for a successful market introduction?
Which specific characteristics must a product have for the introduction into the selected market segment?
How must the product be positioned?
What are the target group’s requirements?
What is the communication approach?
Which price models are offered?
How can the first clients be won and revenue generated?
Who are the first pilot clients and lead users?
Which distribution channels are necessary?
How should the Key Account Management be organized?
Which potential licensees can benefit from proprietary technologies or patents?
What value do these technologies have for the licensee?