08
4.1 GATHER INTELLIGENCE
Ideation or prototyping of any product starts with figuring out
what problems actually need to be solved. To avoid wasted
time and energy, the first step is to determine the exact nature
of the innovation opportunity from the market’s perspective.
Once armed with real-world market insights, the organization’s
internal capabilities should be made transparent. Bringing
the gathered insights together – market demands on the
one side, internal competency profile on the other – gaps can
be identified and problem statements derived. Subsequently,
companies can focus their resources on the identified gaps to
create valuable solutions.
Thus, as a first step toward gaining transparency, key purchasing
criteria per product group need to be systematically
identified. From there, the focus should be set on existing
customers as well as potential new ones. In our survey,
60% of interviewed companies state that new customers
tend to have needs that differ from their existing customers
(Fig. 06). Accordingly, a solid understanding of purchasing
behavior will not only help to keep existing customers, but
also to expand the overall customer base.
Aside from customer preference examinations, market trends
and competitive dynamics also need to be understood in their
entirety. A thorough analysis should provide MNCs with the
following information:
EXTERNAL LENS: MARKET UNDERSTANDING
Customer preferences can vary significantly – regarding
product categories, demographics and geographical terms.
Understanding the differences is a prerequisite for designing
tailored offerings – not only concerning products, but also
solutions. For instance, manufacturing customers in China
are often demanding comprehensive turnkey solutions rather
than single engineering components. MNCs who provide
highly sophisticated components, but rely on their customers
to accomplish the integration by themselves, may have a
hard time conquering the Chinese market.
FIG. 06 І NEW CUSTOMERS HAVE DIFFERENT NEEDS
65.0%
70.0%
59.8%
3
3
3
3
3
3
3
Core competitors
Risk of new market entries
Competitors’ product range, target
markets and geographic regions
Competitors’ USPs vs. own USPs
Competitors’ go-to-market
approach and pricing structure
Risk of substitutions, e.g. through
emerging technological trends
Opportunities affecting current
business model, e.g. Industrie 4.0
15.0%
21.3%
21.3%
17.5% 18.8%
12.5%
Customers’ product
preferences change
considerably
over time
Agree Neutral Disagree
Our customers
tend to look for
new products all
the time
New customers
have product needs
that differ from
existing customers
The continuous recalibration of the findings helps maintain
an understanding of the impact of different developments
on the organization and a focus on the likelihood of sudden
business-model disruptions.