Our research into the views of B2B professionals regarding organic growth revealed: The #1 driver of profitable, sustainable growth is strong value propositions. The #1 differentiator between strong and weak value providers is front-end work. The #1 most desired area to improve is market insight. See a pattern? Today’s key to growth isn’t an improved stage-and-gate process or hiring more R&D staff. It’s understanding customer needs better than competitors.
More in article, Market Satisfaction Gaps… your key to B2B organic growth
Over the years, we’ve seen business leaders question the employee time and airfare bills needed to interview customers in the front-end of innovation. But how much R&D and marketing was squandered developing a product that made customers yawn? That’s a question that should probably be asked more often.
More in white paper, Guessing at Customer Needs
We see three areas where leaders can have a greater negative impact on innovation than positive: 1) organizational friction (travel bans, spending freezes, hiring delays, excessive re-orgs, etc.) that slow innovation to a crawl, 2) spreading too few resources over too many projects so that nothing moves briskly, and 3) short-changing the front-end of innovation, so that a clear picture of customer needs is lacking. Companies pay a heavy price for keeping such leaders in place.
More in article, Accelerate New Product Innovation
The difference between speed and velocity is that only velocity has a direction associated with it. Many in business are focused on going as fast as they can… in any direction. Avoiding solid front-end-of-innovation work because you want to develop your new product faster is a prime example. Sure, you launched your product quickly… but no one bought it, because you failed to first understand customers’ needs.
More in e-book, Reinventing VOC for B2B
I call this the golden rule of investment. In the case of innovation, it explains why the front-end-of-innovation is the critical battleground. The winning company is the one that most efficiently learns whatever intelligence is needed to drive this important decision: “Should we advance this project into the costly development stage?”
More in article, Should Your Stage-Gate® Get a No-Go?
Imagine a team spent $50,000 traveling to interview customers about their needs. What would it take to recover this front-end investment? Typically, just one of these… Improve probability of success by 1%, increase market share by ½ share point, accelerate time-to-market by one month, or raise pricing by 0.5%. Buy new headlights and speed up.
More in article, The Harsh Realities of Organic Growth (Originally published in B2B Organic Growth Newsletter).