Thursday, July 31, 2014

Technology Innovation and Startups

This post is contributed by Tom Thomas
A startup company based on innovative technologies spends considerably on innovation and product development. Entrepreneurship is a driver for technological innovation. Given below are some tips on bringing together the technical and commercial worlds for financial success.

Commercial Feasibility
Any new technology should prove the technical and commercial feasibility to be successful. Identify the core physical constraints underlying the previous technologies that are getting replaced by the new invention and assess the significance. Also, identify the constraints inherent in the new innovation. The difference of these two should provide a qualitative technical balance, making the innovation more meaningful to the user.
Similarly analyze the potential changes in the existing business that will be brought about by the innovation. Compare that with the cost of new business operations required for the adoption of the new technology. This gives the qualitative business balance resulting from the new invention.

Seek the Need
Perceive the opportunities based on emerging market need where the new technology can fit in. Analyze whether the product incorporating the new technology provides enhanced effectiveness in the market place.

Assessment of the market Opportunity
Follow a data-driven approach to assess the market opportunity. For successful productization, the new technology has to be analyzed using architectural designs, working models and prototypes and engagement with potential customers and partners. Analyze the changes which must be made to the innovation to create the end product.

Target small first, then big
Do not try to target large or wide business opportunities from the beginning. This can bloat the focus and strategy. Identify and define the first major market opportunity. It will give a clear target for technology and product development in the short-to-medium term. It should be sufficiently large to provide the foundation for long-term development. With the lack of this type of focus, there will be a number of options, resulting in longer project time and the intended market will keep shifting.

Adoption of new Technology
Aim at satisfying the pragmatic customers to establish a strong foundation in the market. Identifying the first major market is thus strategically critical. The adoption will be more effective when the business and technical balance is perceived high in value by the customers. Minimal behavioural change requirements and minimal perceived loss to achieve the gains offered by the new technology and product will help in faster adoption.

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