Like us, many engineering or manufacturing businesses have aspirations to launch their own products. After all, the equipment and infrastructure are there already, all that’s needed is the product. Simple, right?
Well, actually it’s not that simple.
Across NZ, businesses spend millions of dollars developing and launching new products each year, but the reality is failure rates are extremely high.
It’s an area, as a country, we need to get better at. The Government wants New Zealand to raise research and development (R&D) expenditure to 2% of GDP in the next 10 years. That’s why they’ve introduced an R&D tax incentive.
R&D and product development is a topic I’ve been thinking a lot about lately. After all, we supply parts for many individuals and businesses, ranging from back shed inventors right through to companies who invest heavily in R&D. Further, we’re currently going through the process of developing and launching a range of products ourselves. One thing we don’t want to do is make mistakes that could easily be avoided.
That’s why we’ve researched and compiled this list of 5 mistakes to avoid in product development.
This is one for those companies who find their own development project always takes second priority to paid work. In this situation, you need to do your research and work out your potential return on investment. If developing the product makes fiscal and strategic sense then you should find a way to give it the resource and structure it needs. If not, shelve it. Don’t just keep hoping that someday you’ll get around to it, because you probably won’t.
Before significantly investing in a product development project you need to be sure you’re developing a product people will actually need or want. No amount of hard work can make up for pursuing the wrong idea. And the only way to determine how good your idea might be is market research. Research helps manage the risk of taking on a project as well as deriving valuable insights that could help you develop a better product. You need to find out how significant the problem or opportunity that your product addresses is, and only proceed if it’s real. Don’t make the mistake of falling in love your product. Fall in love with the solution to your market's problem.
Once you have resourced your project appropriately and determined it’s likely market appeal, you need to keep track of it. This starts with articulating the product vision – “what we are trying to build here and why” and defining a timeframe and budget for the project. If you want to avoid scope creep and product cost escalations, decisions need to be reviewed against your key objectives.
Sure, you want to keep your project under wraps so you can get an edge on your competition, but not at the expense of the project’s success. As soon as you can you want to be talking about your product with potential customers, suppliers, distributors etc. Having renders, prototypes, or even sketches or a simple value proposition for the product, can help highlight potential problems or opportunities early on in a project when it’s easier and more cost effective to make changes. Securing and building important relationships (such as with suppliers and distributors) early on can also speed up the whole process.
When you’re developing a product it’s easy to imagine that once you’ve resolved all the issues, and developed a product to meet the needs of the market, the sales will start to roll in soon after the product is launched. If only! For your product to be successful you need to have the right sales and distribution set-up, as well as good marketing and sales support. You need a strategy and plan beyond your product launch.
Made any of these mistakes yourself? I know we have. We’re probably guilty of #1 and #5. But not next time! And referencing # 4 Keeping projects secret, as suppliers, we see the benefits of collaborating with our customers doing product development every day. So don’t be shy, if you’d like to discuss laser cutting and engineering solutions for your project, the sooner the better.
Ever been to EMEX?
This year three people from our team went along to check out EMEX 2018 in Auckland.
EMEX is New Zealand’s largest engineering, technology and manufacturing expo. You get to see all the industry supplier innovations and developments in one place.
It was so worthwhile, that next time we think we’ll take the whole team. It’ll be a great learning experience and also good for team building and comradery. Yes, that’s quite an expense when you take into account a whole day of lost production, plus the costs of travel and sustenance, but we believe it will be an investment
And here’s why.
Time away from day to day business looking at the latest developments and technology is inspiring. We all got to see and experience the bigger picture of what’s out there (and not just in our industry). It inspires the whole team, focussing everyone on the future.
If you go to the expo alone you only see things one way. Going with team members with different skill sets and experience opens opportunities. You might walk past or dismiss something but a team mate might see the opportunities.
Spending the day together seeing and talking about innovation and technology builds bonds between team members. You have a shared experience. And one that keeps giving long after the show. It gets your team more invested in the business. Especially if their opinion is being heard and implemented.
And lastly, it’s more fun with people to talk to. As much as there is exciting stuff to see at these events they can also be dull in parts. So it’s good to share.
If you’re planning a visit to a trade show such as EMEX in the future, here are a few tips from our team.
Although it’s not big compared to international expos, there’s still a fair bit to see (and there are many distractions and ‘toys’ that can eat up your time if you’re not careful.) If you’re going to the show to research particular equipment or expertise then mark out your route in advance. Download a floorplan and highlight your must stop stands. That way you’ll be sure to cover off what you planned (then you can look at the ‘toys’ later)
With multiple sets of legs, you can divide and conquer. Split up and scout out the stands of most interest. Then get back together and share your intel. That way no one misses out on any of the good stuff.
We had a great debrief in the car on the way back to Tauranga, but you may prefer a nice cold Ale at a nearby pub. Make sure you get the most out of your day by capturing any actions and learnings. That’s best to do while it’s fresh in your mind.
And one last tip - bring your own food! One criticism of the event would be the food. It wasn’t that great, it was pretty pricey and there were long queues. We reckon next time we’re going to pack our own lunch.