Innovation Strategy

Getting winning products to market in record time

Innovation provides the most significant driver for value creation and growth because it increases profitability and market share at the same time – and innovation strategy is the most critical means of success to get there.

Are you experiencing these issues?

Inscrutable markets difficult to quantify

Unpredictable market share

Nonbankable revenue projections

Segmentation that doesn't disclose underserved markets

Lack of essential customer input

Nondefensible differentiation

These issues underscore the need for an innovation strategy. The aspirations of innovative products or services are high, but innovation is risky. It’s not surprising that roughly 75% of innovation initiatives fail as firms meet overwhelming challenges along the way.

Our Approach

Our approach involves resolving two fundamental complexities of innovation. The first complexity deals with two critical questions:

  • How do you segment customers for products that don’t exist?  Or conversely,
  • How do you segment products for customers who have not yet bought the product?

Answers are fundamental to concept definition, design & development, prototype testing, and product valuation.

The second complexity involves protecting the future profit flows of the innovation against the competition. The core issue is competitive advantage and the strategic control points available to form a significant barrier.

Our approach helps clients work through these complexities to make sure their innovation delivers sustainable growth.

How We Help

We assist clients with their development of innovation strategy.

Modified Product

Innovate product to get more outcomes

Breakthrough Product

Innovate to get new outcomes for new customers

Improved Product

Innovate product to get a better outcome

Adjusted Product

Innovate products to get the outcome to new customers

We provide a comprehensive set of services designed to meet our client’s innovation growth objectives.

Icon for Value Proposition Design

Value Proposition Design

We help companies design the value proposition to win in their target markets. We capture customer data on desired outcomes, determine where markets are underserved ... learn more

Value Proposition Design

The first step in innovation is for companies to decide what type of innovation to develop, who they want to serve, and the promise of value to deliver to them. These upfront decisions are fundamental to successful innovation.

We help companies figure out the type of innovation initiative to pursue, target markets, and the ultimate value proposition. We do this by following a structured approach. We start by obtaining customer input on desired outcomes, which discloses opportunities. Next, we analyze results to determine where customers are underserved. Third, we prioritize opportunities by choosing to make improvements in areas that satisfy essential outcomes. Finally, with this information, we can design the value proposition.

© 2022 Great Prairie Group
Icon for Opportunity Assessment

Opportunity Assessment

We evaluate the market attractiveness and the financial merit of entering a new market. We conduct a ten-point list of tests and analyses ... learn more

Opportunity Assessment

We evaluate the financial and market attractiveness of the innovation, including the following analyses:

  • Value proposition
  • Market size
  • Cost structure
  • Competitive dynamics
  • Go to market strategic options
  • Internal capabilities
  • Required investments
  • Cash flow and risk
  • Financial attractiveness

This work results in the most appropriate strategic course of action for the company to capitalize on the innovation opportunity and secure a defensible market position.

© 2022 Great Prairie Group
Icon for Market Sizing

Market Sizing

We assist clients measure the size of potential markets for innovative products. Market sizing for new products can be challenging because they don’t exist. Our approach is based on outcome-driven segmentation ... learn more

Market Sizing

Market sizing for a non-existing product can be challenging. Most companies struggle with measuring the potential number of customers for products that don’t exist yet. They use traditional methods to fit products or customers into existing groups which by definition don’t apply.

We help clients measure the size of potential future markets for innovative products. Our approach is based on outcome-driven segmentation. We segment customers for desired under-served outcomes and estimate the total size of the segment.

This method allows us to address several innovation challenges, including the following: identifying unique opportunities in mature markets, identifying demanding customer segments that may be willing to pay a premium for more elaborate solutions, identifying underserved market segments ripe for disruption, and more.

© 2022 Great Prairie Group
Icon for Stage Gating

Stage Gating

We support companies in their product development process by using the Stage-Gate system, moving product concepts quickly from idea to launch ... learn more

Stage Gating

For companies competing on innovation, time to market is a critical competitive advantage. As a result, the objectives of the development process are to get the winning product to market and to get there in the shortest amount of time possible ahead of the competition.

We support our clients through the development process by using the Stage-Gate system to help move products quickly from idea to launch. Our approach allows (1) maintaining high fidelity of concept between the original value proposition and the final product, (2) meeting the timing specifications, and (3) delivering the innovation within budget.

© 2022 Great Prairie Group
Icon for Business Model Design

Business Model Design

We help clients protect their innovation by securing the relevant strategic control points in the industry ... learn more

Business Model Design

Winning innovations become subject to attack as competitors want a piece of the action. New products are particularly vulnerable during the start-up stage, i.e. the weakest point. As a result, it is important for the firm to protect the profit streams.

We help clients protect their innovation against competitors. Our approach is to help secure the relevant strategic control points (SCPs) in the industry. These mechanisms come in many forms, including owning essential patents, securing technology standards, locking up the distribution, and much more. Typically, there are 15 to twenty SCPs in the industry, and the best-positioned innovations have at least two. We make sure that the innovation is founded on relevant SCPs to establish an impregnable market position.

© 2022 Great Prairie Group
Icon for R&D Strategy

R&D Strategy

We help companies focus their R&D efforts for maximum effectiveness. We follow a disciplined approach to prioritize initiatives that deliver large customer value to underserved segments ... learn more

R&D Strategy

Companies that compete on innovation maintain a pipeline of innovation projects under development. Often, they feel pressured in investing in a large number of initiatives hoping that some of these will pay off. In fact, it is not atypical for some to maintain anywhere from 15 to 150 projects at various stages of development. This R&D strategy is very expensive. Ultimately, it costs the Fortune 1000 roughly $50 billion per year in wasted resources.

We help companies focus their R&D efforts for maximum effectiveness. Outcome-driven innovation provides a disciplined approach to prioritize initiatives in the pipeline. We help companies evaluate projects that present a high likelihood to deliver outcomes of high customer value that serve large underserved customer segments. This evaluation serves to predict with a high level of certainty which projects to fund and which to kill, increasing the odds of success and cutting wasteful capital spending.

© 2022 Great Prairie Group

Client Results

1-2

Market position achieved by our client’s innovation

2.5

Average number of years to cashflow positive for innovation

1B+

Total innovation investments covered in our projects

28x

Average ROI of our innovation projects for our clients

How We Have Helped Clients

Software Technology

Developed the opportunity assessment for a breakthrough software technology and established the leading market position.

Computer Microprocessor

Designed the R&D strategy for a PC manufacturer to co-develop a new chip in collaboration with a leading microchip manufacturer.

Automotive OEM

Innovated the business design of an automotive OEM by digitizing business processes for efficiency and speed.