New ideas are often presented by the lab based entirely on the development of a new technology without regard to the customers, market, or competition. These ideas must be evaluated not only through the technological capabilities they offer but also through a market perspective. By adding the market perspective you will greatly improve your probability of success.

10 Ways Market Engineering Can Help Make R&D Idea Evaluation More Successful

1. R&D budgets are matched to market potential, not internal guesses.
2. Market Engineering provides a systematic approach to clarify the evaluation process link engineers with management, finance, and marketing teams.
3. Market measurements speed the approval process.
4. Market Engineering measurements improve the decision's correctness.
5. Market Engineering measurements improve the ability to make financial calculations.
6. The potential impact of competition on the new idea is measured.
7. Product design ideas are verified by the customers.
8. Required marketing, sales and distribution techniques are integrated in the evaluation.
9. R&D time is shortened because product specifications are established based on a clear understanding of the market.
10. The Market Engineering System provides potential strategic partnerships to improve the success of the idea and to reduce risk.

Checklist for R&D Idea Evaluation

• Integrate sales and marketing into evaluation
• Perform focus group on customers
• Purchase competitive products for evaluation
• Perform in-depth competitive profile analysis
• Calculate price/performance ratio compared to that of competition
• Buy, read, and implement Industrial Market Engineering or Healthcare Market Engineering
• Investigate current distribution channels of market
• Perform analysis of current market
• Agree with all decision-makers approval system
• Calculate ROI based on market measurements
• Research customer demographics
• Perform customer analysis to measure current satisfaction
• Calculate optimal introduction time of product

The following questions will help our consultants target their strategic consulting advice to your specific situation. Once we receive this information, our consultants and market analysts will analyze your situation based on the Frost & Sullivan world database of market information, applying years of practical industry experience and current market conditions. There is no obligation and no cost for this service. Please take time to answer the questions in as great detail as possible. Your responses will be kept strictly confidential and will only be used to create carefully targeted strategic advice.

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Challenge Questions: New Idea Evaluation

1. Please describe in detail the nature of the idea.
2. On what technologies is this idea based?
3. Who will be the customers for this product?
4. What benefits will it bring the customers?
5. What is the approximate price range of the product/service?
6. What companies are currently competing in this market?
7. How will the product rank against competing products in terms of price/performance?
8. What is the replacement rate of current products on the market?
9. What is the customer's perception of the current products?
10. What is the typical decision-making system customers use for purchasing?
11. Which distribution channel do customers prefer?
12. How fast and in what ways will the competition respond to this new idea?
13. What is the market size in dollars for this new product?
14. What is the market growth rate?
15. What are the competitive market shares?
16. What technical trends are striking this market?
17. What market trends are affecting this market?
18. What regulatory threats/trends will influence this market?
19. What is the current satisfaction with products on the market?
20. When must this product be introduced to the market to optimize sales based on market timing?
21. How many customers are there in the market by segment? (geography, type of company, industry, application, etc.)

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