In a previous blog we touched upon the challenges of getting advanced materials to market. You can read the blog by following this link. In that blog we categorized the challenges into prerequisites, hurdles and counterforces.
In this blog we describe the prerequisites for being successful in market entry. The prerequisites are the obvious, however often overlooked conditions for success. Without meeting these, it may be worthwhile to abandon your case.
Prerequisite #1: The technology must respond to an underserved or unmet need
It’s like smashing in an open door but many companies that have been founded starting from technology, have lived this. Sure, a new technology can be interesting from a research viewpoint but in the end, it has to compete with incumbent technologies that have evolved over the years to be at a performance level aligned with market needs. Exceeding along a performance parameter that is already met will not give you a winning USP.
Prerequisite #2: Technology must be at acceptance level for all relevant requirements
Even if your technology is outperforming along a certain performance parameter, there are still quite a number of requirements to be met before you can really stand a chance.
Nowadays, bio-based and biodegradable materials are getting increased attention in the market. However, while this can be a first sales argument, it should still be able to perform its intended function at a level close to its fossil fuel based counterparts. Even apart from the typical higher prices for these materials, this is the main stopper for adoption.
Prerequisite #3: The market behind the unmet need must be sizeable and keen enough to adopt
Assuming you want to make money in the end, a business has to generate sufficient cash within a foreseeable timescale in order to survive.
A case where prerequisites were not enough:
A company making wound care tissue developed a new product that significantly reduced the patient’s pain during wound treatment. It had to become a success story! However, it turned out that the available solutions already did the job at a somewhat lower cost, although at significantly higher pain for the patient. As the procurement of hospitals decided which products to buy, they opted for the cheaper solution. An example of innovation and how solving a “customer’s pain” is not always a guarantee for success…