June 13, 2016

You Need to Immediately Stop Believing These 5 Product Innovation Misconceptions – Entrepreneur

For many entrepreneurs, the process of creating and launching a new product or service is intense and intimate. Often, you’re so passionate about the idea that you believe its merits will be self-evident to prospective customers; that the innovation is so obvious and exceptional that it will sell itself. Confidence is good — until it gets in the way, causing you to forget (or neglect) one pivotal step in the process: monetization.

Some see monetization as dirty work, detrimental to true innovation. After all, why should big, bold new product concepts be hampered by stopping to ask for a price check? But if you don’t design your product around price — if you don’t understand how much your customers are willing to pay — failure is almost inevitable.

Improve your odds of success by steering clear of these five product innovation misconceptions.

1. If you build a great product first, customers will pay fair value for it.

“Build it, and they will come” is the mantra. But by implementing monetizing innovation strategies (e.g. determine market and assess customer feedback to your product, analyze price, then design and then build) — and understanding that you’ve designed the product with features that customers genuinely want — you won’t hope your innovation will find market success, you’ll know it.

Google’s approach to the development of Google Glass is the epitome of this myth. Google built the product assuming consumers would buy it. As a result, Google Glass was a massive flop. However, had Google targeted commercial applications (e.g., healthcare, manufacturing, the transportation industry) and developed Glass for the professional and B2B segment, the product might have exceeded expectations.

Read the full post at Entrepreneur.com