Tool Box
Issue No. 15 - February/March 2004
In the Beginning there was... the Idea
A Beginner‘s Guide to Product Development
by Paul Huxtable
In 2003, the Centre for Innovation, Business and Manufacturing of SA organised the Ideas and Inventions Seminar series to help guide product commercialisation.
One such was ‘A Beginner’s Guide to Product Development’ presented by Paul Huxtable (Managing Director, Proen Design Australia), Greg Bartlett (Partner, Phillips Ormonde & Fitzpatrick) and Andrew Robertson (Managing Director, Andrew Robertson Marketing & Consulting). On the day, this trio opened proceedings with the statement that the creation of an idea represents only 1% to 5% of the total effort required to commercialize a product.
In Business will present A Beginner’s Guide to Product Development in an easy—to—follow checklist form over two issues. We begin with an overview designed to ground and focus intrepid Young Einsteins, then go on to list the vital preparatory work of intellectual property protection.
Objectives of this exercise
- To provide an understanding of the steps involved in commercializing a new idea or invention
- To underscore the risks and pitfalls — the idea is the easy part!
- To outline the possible next steps should you choose to proceed to commercialization
The big mistakes
- Overvaluing the idea (premature evaluation)
- Under—committed
- Under—financed
- Fragmented effort (stopping and starting)
- Do not understand the true cost of product development
- Poor project management
Your chances of success
- 60% of new businesses fail in the first 3 years
- Only 2—4% of businesses seeking external equity achieve it
- All of the resources and financial strength of the Ford Motor Co were not enough to successfully commercialize the Edsell
- No matter how good your idea or invention seems, chances are it will fail
What you need to do to succeed
- Take a realistic attitude
- Lose your emotional attachment to your idea or invention
