Steady innovation and its proper management are the key for organic growth and competitiveness to be a step ahead in core markets and/or expand the product portfolio to new markets. Innovation starts with an in-depth market understanding that goes beyond sales figures.
Precondition for successful innovation is a company culture that is eager to innovate, hungry to find opportunities on the market. It requires a culture of openness and readiness for new solutions, markets and challenges along with it. Innovation will not come to the company but must be found and pulled from the market to the company. This ideally with market partners to co-develop a new product in a win-win situation.
Innovation requires skilled project management with joint team efforts to succeed and appropriate resources in staff, equipment and finance.
CEC provides all essential support, tools and management with a high level of expertise as core competence. This service stretches from the strategic market research to define the new product to material-, product- and process engineering with R&D support to production up-ramp and market introduction.
It is essential to understand the clients’ needs to offer further product benefits which can be manifold e. g. CO2-footprint reduction, sustainability, durability etc. or design features, precision, purity, weight, efficiency and so forth. This requires an organization that allows an in-depth understanding of the products and processes at the clients to identify hidden improvement potential that even the client might not yet be aware of. The innovation must make a significant and measurable difference for the benefit of both supplier and client. And it is the tool to strengthen the market position as innovator and reliable supplier thriving for the better to serve the clients with better and smarter solutions. New products for core markets are typically of less risk and faster to launch as the market is well known and understood.
A supplier to industrial process equipment and building material market with no. 1 position in EU, flat market environment with limited growth perspectives. Aggressive competition dilute margins as the current product differentiation is limited. The products are used in energy intense processes.
Lift-up supplier’s product differentiation by intense material- and design development that resulted in a new generation of light weight products allowing the clients to reduce their CO2-footprint and energy cost by approx. 10% at steady performance rates.
The solid IP coverage of the new product and the outstanding performance assured the unique product differentiation allowing the product supplier to manifest the no. 1 position in EU and stabilized margins. Even more important is the positive impact for the local team and their spirit to be the best in the market and to keep it that way.
Extending the portfolio with products for new, non-core markets requires on one side an internal analysis of the capabilities and competences regarding equipment and processes, R&D- and design staff and resources to support these to develop and scale-up a new product for a new market. On the other side a detailed market review is absolutely mandatory to identify the markets, products and trends which have a proper match with the internal capabilities and attractive growth perspectives. A deep look at the competitive environment is crucial to clarify the positioning vs. competitors and market match. New markets are typically less understood, hence networking and relationship building to find new partners is essential that would co-develop and “pull” the new product. New products for new markets are typically of higher risk as the market is less known and understood. The new product is a non-core product with e. g. new materials and processes and therefore more time consuming to eventually achieve external qualifications with new clients in new markets. A proper risk management is essential to prevent draw backs and stay within the given time frame and costs.
Producer of commodity products supplying to equipment manufacturer and their end-user, this with stagnating sales in a flat market environment. New product developments in core market had limited success due to limited differentiation and sales potential. Solid process equipment as well as a flexible and competent team with a proper spirit to accept challenges for new product allowed to address an innovation program for new products and new markets.
Comprehensive market research, benchmarking and networking revealed several opportunities for new materials and product applications to address the environmental market with an industrial partner to co-develop a merely new high-end product for new applications and very high growth rates.
