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New Business Development: Innovation with the highest degree of novelty.

Today, New Business Development is one of the most important organizational competencies for both established companies and start-ups to generate a sustainable competitive advantage and to be successful in the market in the long term.

Type of innovation with the highest degree of novelty

As at least one area remains unchanged for the two innovation types, market or business model innovation, and classic product and process innovation, it thus forms a "secure bank". However, everything is new for New Business Development, the product or service, the underlying processes, the business model, the market and the customers. In some cases, not even the brand remains, such as if the values of the brand simply do not fit the new market.

Definition: New Business Development

New Business Development is the most complex and riskiest way to generate new revenue. It needs to be possible to generate profits with a new product or service and a new business model in a hitherto unknown market.

A company has many opportunities to tap new sources of revenue. For example, it can generate new revenues through a business model innovation. A new product or service is offered, in a new form, to the market, which has already been developed. The car sharing subsidiaries of well-known car manufacturers are an example of this. A Swiss dairy farmer, for example, has shown that this form of increasing turnover is also suitable for smaller farms. Instead of selling the milk, he rents out his cows, continues to look after them on his farm as before, and offers the tenant the end product cheese, at a preferential price.

In a market innovation, a company tries to transfer its own technologies to new fields of application in new markets. For example, Uber not only transports people, but also delivers food in many cities.

The method is suitable for companies with "play capital".

Of course, this way of generating new turnover is not open to all companies. Companies that need new revenue relatively quickly are not advised to use this method. Rather, New Business Development is ideal for those companies that want to develop new business models from a position of strength, can, and want to, commit money and resources and are aware of the relatively high risk of failure.

Tapping new target groups with New Business Development

Focus instead of openness to everything

New Business Development begins by making an initial selection of markets. Corporate values, guidelines and the company's DNA support this process. They serve as an orientation and set the focus for the future.

Validate the problem before developing a solution

In order to develop innovative solutions that are seen as possible, a "validation of problems and needs" should be carried out in advance. For this purpose, consumers or LEAD Users from the selected clusters are asked what their specific problems and greatest needs are. On the basis of this detailed information, a sound decision can be made as to which of these problems and needs, the company would like to address.

Co-creation of the solution with users

Especially in markets which the company does not yet know, the development of the solution together with customers - preferably LEAD Users - is an important element for successful innovations.

LEAD Roadmap

LEAD Roadmap is the map for your methodical, secure path into the future. The innovation strategy for your projects, which anticipates the challenges of all foreseeable changes in technologies, social conditions and market trends. We bring the best experts, thought leaders, target market customers and developers from similar fields to the table with you and work out the Roadmap to innovation success together.

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4 Steps of New Business Development

Define the rough direction

First of all, the company needs to know where it is basically going. It can, for example, give three rough directions by selecting, very generally, three sectors such as safety, health or textiles. This limitation gives the first direction that an entrepreneur must have in his head.

Exploration of industries

In the next step, the given industries will be examined in detail and applied to as many fields and trends as possible. So, in the health sector, trends such as personalization, digitalization or 3D bio-printing are of great relevance, and possible fields of application range from care for the disabled and the elderly, to operations, rehabilitation and specific illnesses.

Forming and evaluating market clusters

Subsequently, clusters are formed, in which, matching fields of application and relevant trends are summarized. One then has, for example, a cluster on care, skin health, pregnancy or animal health. After the clusters have been put together, it is checked as to which cluster best matches the company's DNA or has the best brand fit. In addition, meaningful key figures such as market growth, market size, key players or pricing must be collected for each cluster.

Selection of the best clusters

In a further step, the fit of the individual clusters is compared with the respective growth potential. In a visualization as a matrix, the brand fit can be entered on the x-axis and the market potential on the y-axis. On the basis of this information, the decision is then made. For example, for the top 3 markets, i.e. those with the best fit and the most promising market potential. Interviews are then conducted with experts from the industry to obtain further information on the selected market clusters.

The 4 Phases of New Business Development

In just 4 steps you can efficiently search for and develop new business areas and target groups.

Step 1: Understanding

After an overview of the challenges and trends in the market, customer segments and their problems are identified and then a well-founded selection is made.

Step 2 & Step 3: Generate ideas & develop

In this step you identify LEAD Users, i.e. progressive users and pioneers from the respective customer segment. Potential LEAD Users submit and collect initial ideas through the invitation to tender for an Innovation Challenge. After the evaluation of the invitation to tender, the suitable LEAD Users are selected through further discussions with the idea providers.

In phase 3, products with minimal functions, so-called "Minimal Viable Products", will be developed in a LEAD User Conference based on different creativity techniques, and business models will be developed. The results are "pretotypes" that can be tested directly in the market in the next phase.

Step 4: Testing

The pretotypes are tested and evaluated with Real Market Tests. As with the further development of the Minimal Viable Products, feedback from potential customers is incorporated into the pretotypes until the product is accepted by the market. The result of the 4th phase is at least one pretotype that has tested positive in the market including a Business Model and Vision.

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New Business Development

New Business Development

With New Business Development you can build on an important organizational competence to generate sustainable competitive advantages and to be successful on the market in the long term.

New Business Development

With New Business Development you can build on an important organizational competence to generate sustainable competitive advantages and to be successful on the market in the long term.

New Business Development

With New Business Development you can build on an important organizational competence to generate sustainable competitive advantages and to be successful on the market in the long term.

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