Summary of Monetizing Innovation

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

Monetizing Innovation book summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Consultants Madhavan Ramanujam and Georg Tacke offer a no-nonsense path to successful product design. Most companies go directly from idea to product design. They never know whether customers want and will pay for a product until after its launch. The authors describe “nine rules” for products and services designed to meet immediate client demands and “willingness-to-pay.” getAbstract recommends this clear guide’s sensible advice to anyone planning a new product or service.

About the Authors

Madhavan Ramanujam and Georg Tacke lead Simon-Kucher, a consulting firm that helps clients design products that customers want. For more information, see monetizinginnovation.com.   

 

Summary

Why Products Fail

About 75% of new products don’t meet sales expectations or fail entirely. Products fail mainly because organizations design them before they determine their customers’ desire for them and their “willingness-to-pay” (WTP). Test your customers’ WTP before you begin product design. Know precisely what they want, what they will pay for it and whether the product would make a profit for you. Design to customer specifications, and include only the elements they say they’ll buy.

Reasons to Fail

Products that firms design before they understand their customers’ WTP fail for four reasons:

  1. “Feature shock” – When product designers advocate for functionality that isn’t in your original plan or they want to build more tools because “customers don’t know what they want,” feature shock often results. Too many features and a high price tag for unnecessary bells and whistles leads to stagnant sales. To save the product, manufacturers drop the price. Typically, once they do that, the product loses viability.
  2. “Minivations” – Organizations undermine their potential when...

More on this topic

By the same authors

It’s Price Before Product. Period.
7

Customers who read this summary also read

What's Your Competitive Advantage?
9
The Supply Chain Revolution
8
Digital @ Scale
8
Value-Added Selling, Fourth Edition
8
Narrative and Numbers
8
Sales EQ
8

Related Channels

Comment on this summary