Monetizing Innovation

How Smart Companies Design the Product Around the Price

By: Georg Tacke, Madhavan Ramanujam

Narrated by: Darren Stephens

Length: 7 hrs and 29 mins

Publisher's Summary

Surprising rules for successful monetization 

Innovation is the most important driver of growth. Today, more than ever, companies need to innovate to survive. But successful innovation - measured in dollars and cents - is a very hard target to hit. Companies obsess over being creative and innovative, and spend significant time and expense in designing and building products, yet struggle to monetize them: 72% of innovations fail to meet their financial targets - or fail entirely. Many companies have come to accept that a high failure rate, and the billions of dollars lost annually, is just the cost of doing business. 

Monetizing Innovation argues that this is tragic, wasteful, and wrong. 

Radically improving the odds that your innovation will succeed is just a matter of removing the guesswork. That happens when you put customer demand and willingness to pay in the driver seat - when you design the product around the price. It's a new paradigm, and that opens the door to true game change: You can stop hoping to monetize, and start knowing that you will. 

The authors at Simon Kucher know what they're talking about. As the world's premier pricing and monetization consulting services company, with 800 professionals in 30 cities around the globe, they have helped clients ranging from massive pharmaceuticals to fast-growing startups find success. In Monetizing Innovation, they distil the lessons of 30 years and over 10,000 projects into a practical, nine-step approach. Whether you are a CEO, executive leadership, or part of the team responsible for innovation and new product development, this book is for you, with special sections and checklist-driven summaries to make monetizing innovation part of your company's DNA. Illustrative case studies show how some of the world's best innovative companies like LinkedIn, Uber, Porsche, Optimizely, Draeger, Swarovski, and big pharmaceutical companies have used principles outlined in this book. 

A direct challenge to the status quo "spray and pray" style of innovation, Monetizing Innovation presents a practical approach that can be adopted by any organization, in any industry. Most monetizing innovation failure point home. Now more than ever, companies must rethink the practices that have lost countless billions of dollars. Monetizing Innovation presents a new way forward, and a clear promise: Go from hope to certainty.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.

Download the accompanying reference guide.

©2016 Simon-Kucher & Partners Strategy and Marketing Consultants, LLC. (P)2016 Audible, Inc.

The downloadable PDF missing important figures

If you could sum up Monetizing Innovation in three words, what would they be?

Good useful information

Any additional comments?

It is a good book, no doubt, but why is it missing important figures in the PDFs. Where is figure 8.1? I understand some people just listen to it without even looking at figures but I listen to it while taking down notes. I read each word in the PDFs, so please send me that missing figures.

Modelling a Product? - Devise Price First!

Monetizing Innovation, How Smart Companies Design the Product Around the Price, By: Madhavan Ramanujam, Georg Tacke, and Narrated by: Darren Stephens. This is a marketing firm espousing its technique for assessing a marketplace, and developing new products. Their unique style being argued is a methodology of first determining a product’s
salable market price, and then reverse engineering a product to operate in that price regime.

There is a lot of market knowledge being presented here, and the “come up with price first” strategy seems to have merit and worth considering. Yet, I felt disappointed with the study. I came looking for a fixed formula but only found the gestalt. So, if you seek a definitive measurement this book is not useful. If you want to consider a unique idea that undoubtedly has value, go ahead and read this short book.

Beware though. The reader is about as dull as one can get and the stories told are bland. One idea I liked though, is that the concepts were taught in the first two thirds of the book and then the final third was a survey of the results of the program when deployed by major international enterprises. Of course, the discussion concerned successes only.

You should read but be cautious

Overall this is a good book to let you rethink monetization. It had a framework for you to follow and lots of examples. BUT..read on

1. There are conflicting principles. For example, knowing what products customers will want and be willing to pay is good but sometimes if every innovation was checked with clients most current products will never exists - Will you sit in a stranger's car (UBER)? Will you pay premium for iPhone? Will you want a watch that tells time and does something your phone already done (Apple Watches or Smartwatch)?

2. It doesn't work for every situation. Willingness to pay may work very well for services but may not work really well for products and innovation that has an already higher cost. Customers will always want lower prices for more value. You can't lower your price below your costs.

3. The book doesn't really go into situations where the innovation is a change in customer behavior. Sometimes you have to bring products and services that customers will have to adopt as new and this is really difficult to determine with what the book recommends.

I will still recommend the book. There are good stuff in there.

Market pricing of new products

This book deals with the determination of the market price of a new product and does not address innovation in a meaningful way. It provides a very detailed methodical approach and I am sure it will be very useful in this regard, but the title is misleading.

The narration is very boring, which makes it difficult to mince through the detail.

Baking this into Business Plan Dev!

Worth every word! So glad I got to pour over this content for a few months (I had to slow it down as an avid note-taker) ahead of current new business plan and product development efforts. Plan to bake this into process and culture of the company right from the start and from the C-Suite to the No-Suite member of the team! Thank you for this business success jewel.

Wonderfully insightful

This is one of the best business books I have ever read.

Every business owner must read this book.

Great framework for managing products and pricing

Worth the read. Good use cases and examples in how to apply those practical methods internally.

The speaker performance is very poor though. It can almost put you to sleep😴

this book has a lot against innovation itself.

the book has several good ideas though defends funding by project and a great deal of conservatism towards innovation. it also contains misleading statements which contradict principles of positioning.

Marketing 101

This book would more accurately serve as Marketing 101 for a novice. It doesn’t really go into anything too insightful on monetization.

essential sales training you can't pass up

essential sales training you can't pass up. so much great knowledge. I wish I learned half this stuff earlier instead of stumbling while running ning cimpany