Commercialization requires a carefully-developed three-tiered product roll-out and marketing strategy, that includes. Accelerated Time to Commercialization– Due to fewer available patients and smaller studies, faster development timelines, and accelerated regulatory approval and market access (in many cases), RD products usually launch more quickly than other specialty products. Launch is often two to four years from proof of concept.
This means that RD companies typically have less time to prepare for launch and must be able to nimbly respond to unexpected environment and market changes. Relentless Patient Focus– “Patient centricity” is core to the commercialization of most rare disease products and a critical component of the mindset of RD companies. RDs are often genetic, disproportionately affect children, and carry an extremely high burden for patients and their families and caregivers. So, most successful RD companies provide holistic “beyond the pill” services designed to meet the needs of patients and those who support them. Doing this effectively has significant planning and organizational.
See full list on bluematterconsulting. Given the factors above, decision makers in RD companies should leverage a framework within which they can organize their strategic thinking, operational planning, and tactical implementation. A good framework can help ensure that nothing “falls through the cracks.
As we studied the most successful RD launches, our team identified six key dimensions that compose our RD launch framework. They are outlined in Figure and arrayed along a high-level product development timeline. Obviously, there is no way that a 900-word article can deeply cover all aspects of launching and commercializing a rare disease asset. However, we have outlined a framework within which decision-makers can organize their efforts.
Each RD product is unique and faces its own set of market factors and circumstances but, hopefully, this article will help provide a foundation on which to begin building. Lean commercialization applies the lean startup methodology to the commercialization process , with the primary goals of eliminating waste and minimizing resource expenditures on technology development , manufacturing , and marketing of new products and services. This new approach also aims to create sustainable businesses around new technologies.
What is product commercialization? What are the components of commercialization? At a high level, clearly state what products and services are being offered to the market.
Identify, at a high level the anticipated pricing strategy at the end-user level and for the expected distribution channels. Chris Zook in, Beyond the Core, addresses the concept of Adjacency or the relationship of an opportunity to your core business and competencies. Shared Economics – There are five dimensions that when evaluated and measure the distance from the core and can be used to determine the degree of relationship to the core: 1. Competitors – Are they the same as, or different from, competitors currently encountered? Cost Structure – Is the cost structure (infrastructure) the same or different? Channels of distribution –Are these the same or different?
Identify who is (are) the targeted customer(s) – end-user, big box retailer, distributor, internal business unit, etc. Why is this customer believed to be the real customer? It is toward this customer that the Business Proposition will be initially oriented. The business proposition describes what the product or service offers that no other product can.
It is important that the Business Proposition be benefit focused. For example, Coke quenches thirst. Coke is also a good rust remover but it will NEVER advertised as such.
The Business Proposition should take caution not to over advertise advantages – in other words, DON’T clutter the message. The more focused the message, the more likely to clearly communicate it. When developing a business proposition think of what people are buying. Buyers want to feel the wind in their hair and the thrill of feeling the force of their heads being pushed against the back of the seat. Unless this product is for a total new and untapped market, customers have choices.
Real Reason to Believe– What gives the custom. Customers buy the SATISFACTION OF NEEDS. Questions to be answered are: 1. Where will the product be sold? Who will sell the product?
This may need to be clarified in later, but initially, choose the logical area(s) that fits in with your Value Proposition. How do you distribute your product? The closer the alignment, the greater the probability of success.
The Value Chain and Business Processes must be aligned as close as possible to the Value Proposition. Consider the following: 1. Given the information available, give a high-level assessment of the business potential for the three years after commercial launch. Try to be realistic, meaning not overly optimistic nor overly conservative.
Items to consider are: 1. Gross Margin and Gross Margin as a percent of Sales 3. Operating Income and Operating Income as a percent of Sales 4. What significant commercialization items can keep this effort from being successful? What support is needed from management, gatekeepers, resource managers, etc. Write out what the risks are and rate them High, Medium or Low. Put a few ideas down on how you can mitigate these risk.
It is not a case of just launching a product and hoping for the best. You should also state what the pricing strategy is going to be for both distribution channels and the end-user. Understanding how closely the product being launched aligns to the business core can determine some of the strategic directions required for the commercialization plan.
The closer to the core, the fewer new strategies are required as a lot of the infrastructure would be re-usable. The more diverse from your core the more work is involved in setting up the new infrastructure. Chris Zook in ‘Beyond the Core’ addresses several things when looking at a product opportunity with respect to the commercialization plan: A. As with any risk analysis, you need to identify all the risks and potential issues that could affect the commercialization of your product. Core – Known business strengths and competencies B. Once the risks have been written down, rate them from high to low and ensure you have risk mitigation actions in place to overcome the risks. One method of generating a risk analysis plan is to follow the steps below (this is pretty close to an FMEA): 1. Risk Description:- Detailed description of the risk 2. Rank the Likelihood of the risk occurring: – How likely is the risk to occur?
Rank the impact of the risk occurring: – What will the impact be if the risk did occur? Calculate risk value:- multiply the two values to get a risk value 5. Assess risk values:- Assess the risk values. A good way of doing this is with a Pareto chart 6. Generate action plan for all critical risks:- Actions need to be generated that mitigate the risks as best can be 7. Re-evaluate risks after actions are in-place:- Re-evaluation will allow you to review and a. To maximize your chances for success, you need to be thoughtful in developing the strategies behind your new products.
Innovations can happen in the commercialization of a product as easily as in the product itself. Think about all the ways you can build upon and leverage your commercialization strategy and you might find your sales teams more engaged in the product launch, your customers understanding what’s in it for them, and ultimately your new product goals being achieved. Following development of the entrepreneur’s technology commercialization framework , the application of the framework is described. The application focuses on the introduction of new products in the golf equipment industry, specifically golf club iron sets.
The application of the framework is prefaced by two case studies specific to the golf equipment industry that reinforce the utility of the proposed entrepreneur’s technology commercialization framework. A good starting point for writing a commercialization plan is a clearly written statement that identifies the overall commercial goal of the project. This is your vision of what the product will do to meet a need and whom the project will affect.
Define the specific problem or opportunity addressed and its importance. When – When the company has to decide on the introduction timing 2. Where – Where the company has to decide where to launch its products 3. The term often connotes especially entry into the mass market, but it also includes a move from the laboratory into commerce. The development segment of the research and development. Those who learn how to constantly improve their capabilities and remain relevant to markets stay in business. Others (hopefully) quickly or, in many cases, slowly go into oblivion.
Therefore, this article proposes a new framework : lean commercialization. The framework represents a transformation of new technology and knowledge to products and services through the application. Thus, this paper aims to examine a generic framework for a successful research products commercialisation among academic researchers in Malaysia. Product development and commercialization is the supply chain management process that provides structure for developing and bringing to market new products jointly with customers and suppliers.
The process continues through design,.