Larry OCull's Blog Entries
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Why Strategic Partnerships Work
May 20, 2009
There is a difference between having a good idea, and having a marketable idea. Often the former can grow into the latter, but it takes intention – and good technology. The right recipe often comes in the form of strategic partnering. A strategic partnership may mean alignment with companies that offer core competencies your business may not carry. * You have a marketable idea but not design, engineering or manufacturing experience – so you align your business with a product developer and a contract manufacturer. Sometimes this is a networking endeavor – meaning it may take an experienced product developer to lead you to a good contract manufacturer. The overall formation of this skill group is paramount if the product is to make it from idea to store shelf. * You may have what seems to be a great product idea, but no good evidence of market value or acceptance. Market research is critical to the development and manufacturing process, as well as your overall success with the product. Developing a good relationship with a branding and marketing company is essential. Strategic partnerships are important there is only one product to offer – as is often the case with a startup operation. For long-term company health, compatible (’though not competitive’) product offerings are key. * A wedding planner may have good business relationships with a DJ and a caterer. These services complement but do not compete. By forming a qualified working alliance, the planner increases value by the element of convenience.
Why Do A Value Opportunity Assessment?
May 20, 2009
Why are iPods in the kitchen drawer, and iPhones in people’s hands? It is about value. A Value Opportunity Assessment (VOA) determines how to keep a product in the users’ hands; it determines a product’s key emotional and use factors. Ideally, a successful product needs to be high-tech and high style (the upper right quadrant of value), but also have perceived value. The VOA discovers and optimizes the perceived value, which encompasses emotion, aesthetics, product identity, impact, ergonomics, core technology and quality. Generally speaking, products that make their users feel empowered, free, safe will hold user-loyalty over product that don’t address these emotional factors. So, how does this explain the difference in iPods and iPhones from a perceived value aspect? The iPod plays music or movies portably, but there’s no reason to carry it around when the user is not listening to music or watching a movie. The iPhone performs these tasks AND calls tow trucks, orders pizzas and surfs the web. The latter functions provide the perceived values of security and empowerment. Moral of the story? Successful product design and development addresses emotion as well as style and function. The VOA is key to good ROI.
