Market-Driven Innovation is understanding and executing internal processes according to the wants and needs of the key markets. Market-Driven Innovation is not a new concept. Still, today, many businesses have found it hard to transform their creative work from their internal processes they have been using to a market back strategy. Market-Driven Innovation starts with a business orientation towards targeted and specific markets. These markets specify a plan which defines source allocations, particularly with resources specializing in the creative process. In this context, we define creativity as the production of value, and Market-Driven Innovation as putting a focus on customer values. This starts with the way the business goes to market, to the way they position their services and goods in these markets, and last but not least, their hunt for new solutions and products which may more economically meet the emerging future demands of their targeted markets.
Discovering these target markets is central to Market-Driven Innovation, understanding what drives market growth and the critical unmet needs of the marketplace players in addition to the way they define value and set the foundation for creating growth theories. This involves designing, communicating, and delivering more robust value propositions aimed at particular market segments. Developing and bringing new offers to the market faster because business developers know precisely what the market appreciates and how to deliver the offering based on value. Capturing value isn't a casual action, as it is crucial to Market-Driven Innovation.
Business developers need to concentrate on projects that have been marketplace validated to focus their restricted resources and provide them with advanced marketplace specifications that help accelerate the growth cycle and augment pipelines. Once a project has been chartered, a decision has to be made to source the growth, which includes four components, Validated Marketplace Landscape, Value Proposition Development, Competitive Alternative Assessment, and Business Model Evaluation. Incorporating these validations into the company process is a requirement for a successful transformation to a marketplace driven organization.
A Validated Market Landscape describes and characterizes the market spaces wherein the concept might bring value. The Value Proposition is some description of the amount the idea will bring into the targeted market, the advantages the market will receive, and how you'll get paid for delivering the value. Should you learn the value proposition, and it truly brings a real marketplace value, you can build the rest of your growth initiative around it. Lastly, Market-Driven Innovation frequently requires a new way to go to the marketplace to accelerate and maximize acceptance and capture value as the market is always evolving and changing.
Andrew D. Sternke, JD, is a business expert that is passionate about the integrations of business, law, and technology.