Timing, a crucial success factor

Eat .... or be eaten - the Cannibalised Version of -

@ReggyMortier @Barco - Mobile: 0478 25 25 16@Vlerick @MarionDebruyne: Product ManagementDecember 11th, 2014

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Timing of New Product Introductions

“Fixed” timing

“High” success rate

“longest” record

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All other average a

!!!! 4% !!!!

success rate only

Determine Control Secure

Timing as crucial success factor

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thinLITE family

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Determine: to fix or find out precisely, calculate

“Product” Life Cycle Management

Timing success factor 1

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Determine the right timing by calculating the Profit contribution

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??? RED ???Engineering?!

Product Management?!

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

thinLITE family

What ?&

Lesson learned - “Communication” to the rescue

And that’s not just the price

Low End Market Segment- Losing to disruptive, “good enough” competition -

“COST DOWN”

Main Market Segment- Need for cost optimisation & portfolio extension -

“COST DOWN” & “COST DOWN“PROFIT UP” “PROFIT UP”

Emerging Market Segment- opportunity for segment leadership -

“PROFIT UP”

Why ?Product Profit Life Cycle Analysis

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New markets act on different timings

But, ... new ... only happens ... once .

So, then … try growing a saturated market ?

Control: be in command of, manage, restrain

Portfolio (Product Line) Management

Crucial success factor 2

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Control by strategically using ....

Cannibalisation

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Lost Profit by Bad Cannibalisation

Cannibalisation risk not so much unlike in the movies ...

at least for the product manager’s career ...which will be short-lived

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Is it relevant to you ?

Cloud is the new digital - who remembers Kodak?

Is it obvious to you ?

Remember Porters Five Forces?

Is it obvious to you ?

Is it obvious to you ?

Worst case example ...

Cannibalisation & Competitive Loses

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Example type: Technology “driven” Cannibalisation

Cannibalisation Visualised

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What about the best in class, like ...

What is that ?!?!

BIO-MIMICRY story

Eliminate Competition

- Procreation -

Secure Food For Offspring

- Procreation -

Cannibalise for maximum RETURN only

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What about the best in class, like ...

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What about the best in class, like ...

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What about the best in class, like ...

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What about the best in class, like ...

Cannibalise for maximum PROFIT only

Chapter 11

Cannibalisation as competitive strategy

PS get the XLS via Jolien ;-)

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0

3000

6000

9000

12000

2005 2006 2007 2008 2009 2010

30

00

60

00

Cannibalised Profit

Profit 2 CompetitionRegained Profit

12

00

0Profit contribution with each sold unit

90

00III

III

60

00

What would have been better - profit wise ?

Secure

Secure: make certain or safe, succeed in getting

Customer Engagement & Phased Introduction

Crucial success factor 3

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Not only to avoid the “Voice of the Customer” TRAP !

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by sharing & hence mitigating the risk of NPI

But foremost to create customer delight !

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Delight at lower cost

EncoreHDQ 2K40

Low End Market Segment

Main Market Segment

Emerging Market Segment

Phased intro (time/segment) to maximise total profit !& to strategically control cannibalisation

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Determine the right timing by monitoring profit contribution

Control the right timing bycannibalisation strategy

Secure the right timing bycustomer engagement & phased introduction

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