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10 Steps from Idea to Profit

By : Peter|4 Nov 2019
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Being able to come up with a brilliant idea does not mean that you can implement it properly, effectively promote the operation of the product, nor find customers who are willing to pay for it. Without a robust management system, the gap between ideas and profitable products is insurmountable. Having a wonderful idea does not mean that you can land it successful.

However, having a defined process to take ideas and put them into action would help to ease the pain. Here we summarize the 10 steps from idea collection to growth and profits. We believe it can help guide you through the process.


 

IDEA COLLECTION

Ideas can be generated in various ways: from one’s “Aha!” moment, a collective brainstorm of a team, or inspirations from things one sees or reads, the list can go on and on. So when there is a good idea, whether you have received an email to an inbox, a note from a suggestion box, a message from a group chat, or a submission in your innovation management system, there is a shared starting point, to collect them systematically.


 

IDEA SELECTION

Idea selection is a process of screening out the most promising ideas by using appropriate evaluation system and scientific evaluation methods to analyze and compare various ideas. In this process, you strive to eliminate the most loss and inevitable loss of new product ideas, and select new product ideas with great potential profits.

You can consider the following questions when selecting ideas: What is the value of the product? How big is the market? Where is our competitive advantage? What are the risks? Through the analysis of these answers, you can draw a preliminary conclusion about ideas, so as to choose to continue with the idea, or give up on it.


 

FEEDBACK ON THE IDEA

After choosing a satisfying idea, you ought to show it to your team and customer base to get the most accurate feedback. Feedback will tell you how confident the team is in implementing, the resistance that may encounter, and the disparity between your considerations and customers.


 

IDEA REFINEMENT

Refinement is to specify the economic indicators, technical performance and necessary parameters of product development on the basis of the new product scenario that has been selected. Including the investment scale in product development, profit analysis and market target, ways and implementation plans of product development and so on. A good mechanism is bound to be able to form a win-win multilateral situation, when these things are thought out clearly, we can start product research and development.


 

PRODUCT DEVELOPMENT

This is an important stage of turning new product ideas into reality, into the development stage. It mainly involves the development engineers, designers, project managers, and other personnel. The basic activities of this stage are the construction of product prototype, and the development of tools and equipment, which are used in commercial production. The core of product development is the design-build-test cycle. The result of this phrase is the MVP, or Minimum Viable Product.


 

PRODUCT TESTING

After the trial development of new products, it is an important evaluation work to conduct a comprehensive test in terms of technology and economy. The test of new products is not only conducive to further improving the design of products and eliminating potential risks, but can also avoid the huge losses that may be caused by mass production of products. It mainly includes the test of the technical performance of the product and the evaluation of the economic benefit of the product.

 

PRODUCT TESTING ON THE MARKET

Trial sale is actually a market experiment of new products within a limited market scope. Through trial sale, it is possible to check whether consumers are willing to buy new products after they are formally put into the market. Under the changing market conditions, the decision-making and measures that new products should take to enter the market can be checked on the spot.

Market trial sale is a comprehensive inspection of new products. It can provide a comprehensive and systematic decision-making basis for whether new products are fully listed or not. It also provides enlightenment for the improvement of new products and the perfection of marketing strategies.

 

PRODUCT TO MARKET

This includes the formal mass production and sales of new products, enterprises should make prudent decisions in the following aspects:

  1. When to launch new products. For competitive products, there are three timing choices: first entry, parallel entry and later entry.
  2. Where to launch new products. Whether new products will be promoted to a single region, several regions, a national market or an international market.
  3. How to launch new products. Enterprises must formulate detailed marketing plans for new product listing, including marketing mix strategy, marketing budget, organization and control of marketing activities, etc.
     

 

PRODUCT ITERATION

Product iteration is a continuous process of optimally solving customers' needs with products in the background of limited resources. In the lifecycle of a product, it is very important to plan the iteration scheme of the product. In the process of iteration planning, it is necessary to divide the business reasonably, to ensure that each iteration is completed in a reasonable period of time, and to ensure the quality of products in each iteration. For the business side, the purpose of iteration is to quickly meet the market needs, therefore, when making iterative planning, it is necessary to understand the needs and expectations of the business side. Only constantly updating products can meet the needs of users and the market continuously, achieve generational growth and prosperity.


 

GROWTH AND PROFITS

So far, the whole process from idea to product has been completed, the last step is to harvest profits and experience, keep growing and innovating.


 

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