Monetizing Innovation

Peter Drucker once said: “Customers don't buy products. They buy the benefits that these products and their suppliers offer to them.

The key is to rigorously determine the market for a new product long before the products are built, and making sure the market is willing to pay for that product before embarking on a long journey of productizing the innovation

Porsche succeeded by designing the product around the price. This is what smart companies do

But even if you have a quality problem, a price cut won't fix it. In fact, it could make matters worse for you

These firms must get comfortable with the idea of giving their low-price segment only basic quality and service levels, rather than giving them everything. In other words, product configuration requires the guts to take away features.