One of the frustrations of working with new product and technology entrepreneurs is that they can have a very blinkered idea of their markets. Often their business idea comes from solving a problem in the market where they have experience. This is perfectly reasonable, but can be very limiting.
A good example is a SInC company that developed on-body motion-capture technology. The product is superb and takes away many of the limitations of doing mocap for film, TV and games animation within a “light studio”, therefore quite reasonably they focused on the media markets. What they soon learned (mainly from their customers) was that their technology had enabled whole new mocap markets in industrial design and ergonomics, sports medicine and biomechanics research. Each of these new markets is potentially bigger than their initial primary market.
So a key aspect for new technology entrepreneurs is to keep an open mind to potential markets and to finds ways to promote the innovation far more widely, you may find customers where you never expected. This is one way that a good incubator can help as they can access their networks to canvas market feedback for new products.
As we enter an economic downturn, it becomes even more important how companies present and market their products and services. Now, it’s not just about being flexible in targeting your markets, what about re-aligning the benefits of your product to the changing concerns of your customers. Last year they may have wanted quicker now they want more efficient, companies are less concerned with carbon footprints and more with saving fuel. It’s important to re-assess the features of your products and make sure they best suit to your customers ‘perceived’ needs. As the marketeers would say – “where’s the customers’ pain”, well check it hasn’t moved!
Mike Herd, Sussex Innovation Centre, July 2008
