It’s a sad truth that, despite high investments, a profound understanding of the specialist field involved, and intensive preparation, most new products and services are commercial failures.
In specific terms, the problem lies not in a lack of expertise or ideas, but rather in a lack of resources – usually either time or money. To ensure that you can utilize your team’s skills as efficiently as possible, we have therefore developed the “innovation compass.” It shows which issue in your particular situation is the most important for successfully establishing your product. With the tool, your idea goes through three phases of maturity, each building on the previous one.
1. Problem-solution fit
In order to be successful, a product must satisfy users’ actual needs and provoke a desire in them to have the product. These needs can be researched using a variety of interviews and user observations, in most cases without developing any applications. The findings from this phase form the basis for the rest of the project and help create security for stakeholders by reducing the investment risk and generating early product-changing findings.
2. Business model
Drawing up business plans and market forecasts is a time-consuming process that requires further work every time the business model is modified. To minimize this, we can model whether your product has a realistic chance of commercial success. What level of annual profit would be needed for the product to be considered successful? How would user numbers need to grow to achieve this – and have you opted for the right price level and monetization method? The answers to such questions show you precisely what assumptions have to be made for the investment to pay off. If any aspects appear to be particularly risky, they can be examined at an early stage. At the same time, the resulting model can be used for communicating with stakeholders and investors.
3. Product-market fit
While it’s vital to have evidence that your product will fulfill your initial customers’ needs, this alone will not guarantee commercial success. With the aid of user feedback, you’ll need to develop your product further and prioritize the right features. Then, once you’ve reached this stage of “product-market fit,” the market will be asking for your product of its own accord. You’ll no longer need to actively market it to attract new customers.
A secure route to a successful product
Once you’ve fulfilled the three dimensions of problem-solution-fit, the business model, and product-market-fit, you’re most of the way there.
On a data-driven basis, the tarent innovation compass results in products that
users really want to use,
are commercially viable,
and will survive in the market.
We can support you in progressing the development of both product ideas that have stalled or in developing totally new products for minimal project risk. With us, you can quickly achieve visible results.
Why not create a lean canvas and arrange a free orientation session in which we use the compass to show you the right direction to take?