Monetizing Innovation: How Smart Companies Design the Product around the Price explores what happens when companies stop guessing at whether an innovation will succeed and put the customer’s willingness to pay at the very core of product design.
Companies obsess over being creative and spend significant time and expense in designing and building products, yet struggle to monetize them: 72 percent of innovations fail to meet their financial targets—or fail entirely. Many companies have come to accept a high failure rate as the cost of doing business, losing billions of dollars in the process. It does not have to be this way.
“Monetizing Innovation: How Smart Companies Design the Product around the Price” (Wiley, May 2, 2016) explores what happens when companies stop guessing at whether an innovation will succeed and put the customer’s willingness to pay at the very core of product design. Price is more than just a dollar figure, it is an indication of what the customer wants—and how much they want it. In fact, it is the single most critical factor in determining whether a product makes money. However, too often it is an afterthought and frequently a last-minute consideration made after a product is developed.
Authors Madhavan Ramanujam and Georg Tacke – partner and co-CEO of the world’s premier monetizing consulting services company Simon-Kucher & Partners – have helped clients ranging from massive pharmaceuticals to fast-growing startups find success. Now, in “Monetizing Innovation” they distil the lessons of 30 years and more than 10,000 projects into a practical, nine-step approach, emphasizing:
- How to leverage the science of monetizing innovation, illustrated through case studies including Porsche, LinkedIn, Swarovski and Uber
- Patterns of failure that doom so many innovations and how to avoid them
- Specific techniques to dramatically improve the odds of new-product success using Simon-Kucher’s empirically validated framework
Madhavan Ramanujam is a board member and partner at Simon-Kucher & Partners based in its San Francisco/Silicon Valley office. Advising companies of all sizes from Fortune 500s to startups, Ramanujam has led more than 125 monetization projects for Internet, software and technology clients, helping bring numerous new products to market.
Georg Tacke is co-CEO of Simon-Kucher & Partners. Over the last 25 years he has helped develop the firm from a small boutique to a global consultancy with more than 900 employees. Tacke is regarded as one of the leading international pricing and monetization experts. In this area he also acts as a personal consultant to C-level executives in various industries.
Melissa Connors, Publicity Manager
WILEY
mconnors@wiley.com