Bringing new ideas and product concepts to market. What to expect and why so many fail to achieve commercialization.

Many developers hoping to create products for commercialization often begin with meaningful ideas or processes but fail to bring them forward to commercialization. There are numerous factors which contribute to the success or failure of any product and often the outcome is the result of one or more of several factors.

"Necessity is the mother of invention" - Plato

In many cases the inception of a new product idea begins with identifying the need for a product device or process that makes certain tasks easier. Some products are clearly more necessary than others for example, the scraper used to de-ice a car windshield is a very useful product, during the winter months and in parts of the world that experience freezing conditions. The point is that even great products can have only limited market potential. Before considering the development of a product for commercialization, the technology should be evaluated for its feasibility.

Feasibility, looking at the whole PIE

(P)erforming due diligence - This can be as simple as looking at "The Big Picture". Do your research, search the internet, talk to industry professionals. Does the product idea make sense and is there any interest in the technology even from a grass-roots level?

(I)dentify market demand - Look at competitive products or those that may be similar if any. Determine whether or not the product is market worthy and if the demand for the product will potentially offset the expense of getting it there.

(E)stablish target costs - Try to determine a reasonable price point for the consumer. What will a buyer reasonably pay for the product and at what price will the seller maximize profitability?. A product will generate higher sales revenue either through higher cost / lower quantity or lower cost / higher quantity and in reality the target cost will become a function of several factors but it's good to have a target in order to generate a program plan.

Project Planning

Setting realistic goals and expectations - Many projects run over budget and are terminated prematurely due to poor planning. Program milestones must be realistic and obtainable.

Anticipation of development costs - There is a cost to doing business, period. Find out at the very least what kind of costs will be required to develop your product.

Setting realistic timelines - The product development process is not an instant one and there are many phases involved. Do not try to rush this process as the cost of expedience is often paid for later either in the form of poor quality, having to repeat steps (paying twice) or outright failure.

Raising sufficient working capital - Determine beforehand whether the program is economically viable. For first time individuals and upstart inventors looking to develop products, the very minimum expenditures can range anywhere between $1000 and $20,000. This cost estimate includes prototype engineering and development, prototype fabrication, and some level of legal and patent coverage. These costs do not include full scale production and manufacturing costs.

Project Management

Experience and process knowledge is required to proceed with any program objectives. Often times the success or failure of a product relies heavily on the skill set of those performing the critical tasks.

Identifying qualified service providers is essential. PAY FOR QUALITY. In an attempt to cut costs many inventors will utilize lower cost hence lower level service providers that claim to have skills sufficient to complete necessary program tasks. Often times these service providers will specialize in one or two areas but fail to demonstrate skills in critically related areas. An example of this would be the person with CAD skills that produces a design that is un-manufacturable or designed in such a way that considerable re-work must be done to bring the engineered data to a manufacturable state. This is a very common problem and can be avoided by identifying and paying for the appropriate resources.

Defining strategic partnerships. There are groups in the field that may benefit from the synergy of a strategic partnership. Often times in the event that a developer has limited funds, a service provider will consider other forms of compensation which creates further incentive by that service provider to contribute value. This can be a win / win scenario for everyone.

Quality control is something that cannot be overlooked even at the beginning stages of development. Many people try to eliminate expense or cut corners in areas far too critical to make this kind of sacrifice. Again, PAY FOR QUALITY. Initial impressions are way too important. If you cut corners, say in the area of developing a prototype then don't expect the reviewer who makes major purchasing decisions for company XYZ to write you a purchase order for 100K units.

Communication. Keep an open chain of communication with your service providers, vendors and manufacturers. Plan for the periodic review of program milestones with all those involved. Stay current with the latest developments and BE AVAILABLE.

Obtain a prototype. The prototype is the single most effective means by which to convey a new product or idea. A working model or something that looks like, feels like, works like or very closely resembles what your product would look like as a manufactured product will pay huge dividends.

Psychological Factors

There are many psychological factors that can contribute to the success or failure of a product and they may be manifested at any stage of the development process.

Conviction, commitment and confidence. Often times On many occasions, projects never seem to progress or even see inception because in spite of the novelty of an idea for a product, the developer never has the resolve to pull the trigger at the starting line. Product development can seem like a formidable task in the absence of experience or process knowledge but with the adequate resources in place then the market awaits you.

Fear and mistrust. Sadly enough, these two factors can lower morale and generate the kind of negative sentiment that will drive good resources away. Although it is true that there are individuals within the intellectual property arena that may be operating with fraudulent intent, the reality is that most reputable service providers make more money by contributing to the success of products rather than by trying to defraud the developer. An example of this would be the patent attorney that stands to makes $10,000 from the patent filing but the originator won't submit the details of a product idea for fear that the attorney will steal the idea. The attorney will make far more money doing what they went to school for . . . practicing patent law.

Avarice and greed can end a program before it ever even starts. There are many ways to make money in product development and there's enough to go around. This is a fairly tight knit community and the benefits of wealth sharing with other known and proven resources usually results in other successful follow on projects. Often times avarice and greed will manifest at the negotiation stages of a strategic partnership. Sometimes it manifests itself further down the road when a non contractual relationship goes sour. This often happens as a result of a developer severing ties with a co-inventor or service provider that perhaps made contributions to the success of a product in the hopes of being compensated later on much like an investor who had contributed tangible funds. This is a very short sighted attempt to accumulate wealth at the expense of others when in reality the partnership may have generated 10X what could have been expected through the success of a single product in the form of 10 other successful products.

The "I can do it myself" Mentality. Again, PAY FOR QUALITY. There are many developers of new technology that for various reasons feel they don't need others to help them achieve success. This is seen often at the engineering level. On numerous occasions the person with CAD skills feels that because they read the instruction manual to SolidWorks that they are now qualified to design injection molded plastic parts. They don't want to spend the money to pay for a manufacturing engineer to design the part correctly so they do it themselves only to find out later from the manufacturer that the parts cannot be made in their currently engineered state.

This is a lot of information to digest but it's critical to understand for anyone hoping to make an attempt at developing a marketable product. Shortsightedness or failure to comply in any one of several critical areas of the product development process can result in wasted time, money, resources and can mean the difference between a prototype sitting on a shelf in your garage collecting dust or a production version sitting in someone else's garage after a hard day's use while you sit back and collect the checks.