For a new technology to successfully enter the market, it is crucial for inventors to determine its business attractiveness. In practice, what is considered valuable in the scientific world does not always meet the expectations of potential users. Inventions with a high scientific value—often backed by patents—may turn out to be unattractive or even incomprehensible to the market. Potential users may have different needs and expectations than those assumed by research teams.
It is worth noting that most successfully commercialized inventions did not achieve market success solely due to their scientific excellence. Instead, their success often resulted from effectively leveraging innovation to introduce improvements that created a competitive advantage over existing products.
Understanding Market Needs Reduces Project Risk
Clearly defining the profile of potential customers is a key factor in reducing project risk. Adapting research and development (R&D) efforts to match identified market needs allows for the creation of solutions that better address real-world demands. The closer an invention aligns with market expectations, the greater the chance of attracting more customers. A larger customer base translates into higher sales and, ultimately, increased revenue from commercialization.
When defining customer profiles, it is also important to distinguish between users and payers of the technology. Their needs may differ—for example, a patient’s needs are usually different from those of a hospital (the payer) or a doctor who will use the invention in practice.
The Complexity of Commercialization and Risk Management
Setting commercialization goals requires an understanding of the complexity of the process, which can be challenging even for experienced research teams. To manage project risk effectively, it is recommended that market demand be verified as early as the concept development stage. One useful method for this is Value Proposition Canvas (VPC)—a tool widely used in business model development.
Here is the English translation of the graphic:
Business Model Canvas
Value Proposition | Customer Segment
- Value Proposition (left side)
- Creating Benefits
- Pain Relievers
- Product & Services
- Customer Segment (right side)
- Gains
- Customer Tasks
- Pains
Source: www.studiosoftware.pl
VPC helps project teams logically define target customer profiles and deeply analyze their needs. Based on this information, inventors can collaboratively develop a „value proposition”, which directly addresses customer pain points and highlights the competitive advantages of the solution. One of the key strengths of VPC is its simplicity and universal applicability, making it accessible even to research teams with no prior business experience.
Want to Learn More?
If you’re interested in learning more about Value Proposition Canvas or other commercialization tools, feel free to contact us.