The Process of Commercialization
The process of bringing a new product or service to market for financial profit involves making several strategic and tactical decisions. This article discusses the key elements of commercialization. These decisions include the identification of internal business capabilities, a cross-disciplinary approach, and the involvement of stakeholders. Let’s take a look at one example. The small cinnamon roll company decides to sell their products in packages at local grocery stores. This move will allow customers to purchase their cinnamon rolls from more outlets, increasing profits.
Commercialization is the process of bringing a new product or service to market for financial profit
The commercialization process involves the development, production, and marketing of a new product or service. It typically starts with research and development, which involves creating a product prototype or improving an existing one. Once the prototype is complete, the business can move forward with developing the product or service to market. A sales plan is an important tool in commercialization. It should include key information about the target market, sales volumes, and gross margin.
During the commercialization process, a firm will make strategic decisions that affect the future of the product or service. For example, it will determine where to launch the product or service. It will evaluate the potential for success in local, national, and international markets, as well as the available resources. Business leaders also will define the primary consumer group. Ultimately, the goal of commercialization is to generate a financial profit for the business and the public.
It involves identifying internal business capabilities
The first step in capability mapping is defining each business capability. While all capabilities can be critical, not all of them will have the same level of long-term financial impact or value to stakeholders. Once capabilities are defined, they must be evaluated. Capabilities are generally categorized on a scale of importance from achieving competitive parity to sustaining competitive advantage. By segmenting capabilities into different categories, organizations can focus their efforts on those that will help them achieve the highest level of competitive advantage.
The next step in capability mapping is to define organizational strength and competency. Strong organizations use updated technology, employ highly intelligent human capital, and meet financial and strategic planning objectives. They also use proprietary processes and technology. They have a strong brand identity and a variety of other capabilities and resources to compete effectively. They are capable of commercializing their offerings and challenge their competitors. Overdrive has helped organizations assess their capabilities and determine which of them would be best suited for commercialization.
It involves stakeholder involvement
The process of commercializing a product or service generally involves several stages. These include idea generation, product or service development, marketing, sales, distribution, customer support, and other key functions. The concept and business development phases also involve stakeholder involvement, which may include potential customers. After an idea has been conceptualized, it needs to be tested and adapted to the market. This process is also known as a business development funnel, and it involves knowing the ultimate goal of the venture, and how to accomplish each milestone.
It involves a lot of money
The process of commercialization involves a lot of money, and it is not for the faint of heart. The process of bringing a new idea to the market requires money, time, and research. Random marketing efforts do not generate much revenue. Successful commercialization is the result of a strategy that incorporates a thorough evaluation of the market’s needs, and it takes a lot of money to get there.
