Creating New Revenue Streams Through New Product Development
How many industrial manufacturing companies were founded upon an entrepreneur's Eureka moment?
Many.
It's a romantic storyline, and when combined with grit and hard work, it is a type of business alchemy.
But what happens when that innovation grows tired? When markets move past it, competitors threaten it, and customers tire of it?
The solution is a continuous stream of innovative new products that demonstrate relevance and deliver value.
But that doesn't happen by accident. Consistent, value creating, new product development is built on specific attitudes and actions. That's what Eric Rose specializes in. He's done it himself, and now he helps other companies do it.
Listen to my conversation with him as we discuss how industrial manufacturers can make product innovation a consistent part of their activities.
Connect with Eric for thoughts and insights on energizing your new product development and innovation to drive new revenue growth.
Check out Eric's Pinnacle Product Innovation Website |
Driving Revenue Growth by Creating New Products - Eric Rose on Industrial Growth Insitute Episode 49
Episode Recap
Summary
In this episode of the Industrial Growth Institute podcast, Ed Marsh and Eric, a product innovation expert, delve into the critical role of new product innovation in driving business growth.
They explore the concept of 'market anguish'—the frustrations consumers face with existing products—and how understanding this anguish can lead to successful product development. Eric shares insights from his extensive experience in product innovation, emphasizing the importance of qualitative research and stakeholder engagement.
The conversation also touches on:
- the balance between creativity and realism in product ideation
- evolution of manufacturing processes
- the multifaceted world of product innovation, particularly within the context of industrial manufacturing
- ideation techniques
- challenges of product innovation
- the integration of product management with innovation efforts.
They explore the role of product innovation in corporate strategy, the significance of licensing intellectual property, and the commitment to STEM education. The discussion also touches on expert witness work in product liability, the impact of reshoring on innovation, and the implications of AI in product development.
Finally, they address pricing strategies and resources for product innovation, culminating in key takeaways for industrial manufacturers.
Takeaways
- New product innovation is essential for business growth.
- Market anguish reflects consumer frustrations with existing products.
- Qualitative research is crucial for understanding market needs.
- Stakeholder engagement can reveal hidden opportunities.
- Balancing creativity with realism is key in product development.
- Successful innovation requires a sustained R&D effort.
- Understanding the end-user experience drives product success.
- Ethnographic research can uncover valuable insights.
- Companies can innovate without hiring external experts.
- Effective brainstorming can lead to breakthrough ideas. Innovative ideation requires a no-criticism approach.
- Changing manufacturing processes can lead to significant product innovation.
- Companies often limit themselves to their existing markets.
- Staying aware of market changes is crucial for survival.
- Identifying societal and technological trends can drive innovation.
- Product management and innovation should work closely together.
- Planning is essential to avoid financial pitfalls in product development.
- Product innovation should have representation at the executive level.
- Most patents go unused, highlighting the need for strategic monetization.
- Looking outside the organization can uncover new growth opportunities.
Takeaway Quotes from Eric Rose
- "Product management and innovation should be hand in hand."
- "95% of all patents in the US are never monetized."
- "Look outside the box for growth opportunities."
Outline
00:00 Introduction to Growth and Innovation
02:53 Understanding Market Anguish
11:23 The Role of Research in Product Development
19:33 Navigating Innovation in Industrial Manufacturing
27:11 Case Study: Workplace Safety Devices
34:19 Balancing Creativity and Realism in Innovation
36:37 Innovative Ideation Techniques
39:06 The Challenge of Product Innovation
41:28 Integrating Product Management and Innovation
45:06 The Role of Product Innovation in Corporate Strategy
47:51 Navigating the Innovation Process
51:50 Licensing and Monetizing Intellectual Property
53:51 Commitment to STEM Education
56:51 Expert Witness Work in Product Liability
01:00:09 Reshoring and Its Impact on Innovation
01:01:28 The Role of AI in Product Development
01:08:41 Pricing Strategies in Product Innovation
01:10:33 Resources for Product Innovation
01:12:21 Key Takeaways for Industrial Manufacturers
Creating a Framework for Industrial Revenue Growth
New product development and revenue from new product innovation can supplement a carefully designed revenue growth framework. That's what my ORE™ (Overall Revenue Effectiveness Framework) provides.
