Monetizing Innovation: How Smart Companies Design the Product Around the Price
by Madhavan Ramanujam and Georg Tacke
Innovation is the most important driver of growth. Today, more than ever, companies need to innovate to survive. But successful innovation measured in pounds and pence is a very hard target to hit.
Companies obsess over being creative and innovative and spend significant time and expense in designing and building products, yet struggle to monetize them: 72% of innovations either fail to meet their financial targets or fail entirely. Many companies have come to accept that a high failure rate and the vast amounts of money lost annually are just the costs of doing business.
Monetizing Innovation argues that this is tragic, wasteful, and wrong. Radically improving the odds that your innovation will succeed is just a matter of removing the guesswork. That happens when you put customer demand and willingness to pay in the driving seat when you design the product around the price. It’s a new paradigm, and it opens the door to true game change: you can stop hoping to monetize, and start knowing that you will.
The authors are board members at Simon-Kucher & Partners, a leading pricing and monetization consultancy that has helped clients of all sizes to find success. In Monetizing Innovation, they distil the lessons of thirty years and over 10,000 projects into a practical, nine-step approach.
Illustrative case studies show how some of the world’s best innovators, including LinkedIn, Uber, Porsche, Optimizely, Draeger, Swarovski and big pharmaceutical companies, have used principles outlined in this book. A direct challenge to the status quo spray-and-pray style of innovation, Monetizing Innovation presents a practical approach that can be adopted by any organisation, in any industry.