New Product Feasibility Studies
A reality check.
Feasibility Studies are independent assessments of the practicality of a proposed product, plan, or method.
We will check if it’s “feasible”. Do we have, or can we create the technology to do this? Do we have the people resources? Will we get our ROI?
We’re a pragmatic bunch. We are here to make sure the numbers add up. That they do so in an engaging, creative, and practical way makes us bang our heads on our desks and mutter “Why didn’t I think of that?”
During the feasibility stage of product development, a company needs to gather information and perform analysis to assess the feasibility or develop the business case for a new product.
The fact that investment in product development and the cost of design changes increase rapidly after the feasibility stage emphasizes the importance of doing your homework well at the feasibility stage.
The following areas questions need to be evaluated as a basis to proceed beyond the feasibility stage:
Is it real?
Does a market exist for the product? Is there a true need in the marketplace? Which markets might benefit from such a product? Will customers buy it? How large is the opportunity? Can the product actually be made? What technologies are required? Do we have these technical capabilities in-house, or are there opportunities to license or acquire what we need?
Can you win?
Analyze the competitive environment. Is the proposed product competitive? What are the competitive strengths of the product? Will we compete based on price, performance, innovative features, service, reliability, or time-to-market? Is this competitive basis sustainable? What do we expect the competitive response to be? Is the basis of competition in line with our overall strategy?
It is worth it?
Do we have realistic estimates of sales and revenue? Are product costs acceptable? Are development costs affordable and acceptable? Is the product going to be profitable? Is its profitability acceptable and as good or better than other opportunities that the firm has? Is there an adequate return on investment? Are the risks understood and are they acceptable? Is this product in line with our company strategy? These profitability questions are normally answered with a formal business case that shows projected profit over the life of the product or expresses this data in the form of return on investment (ROI) or another similar financial measure.
The bottom line.
The feasibility study should be the first point on the product development checklist.
The feasibility study is one of the first things you need to do when thinking about launching a new product or service. You will likely roughly do this anyway while immersed in Dreamland. But a systematic and independent assessment is hard to beat.
Who is this for?
Anyone with an idea.
Feasibility studies are essential for anyone who has a dream. So often dreams can be wild. Wild and maybe unrealistic. Feasibility studies help to stop the dreamers wasting money on ideas that may not ever be able to bear fruit. They can also reveal some extraordinary new opportunities…
First, we sit down.
We’ll carry out a brief scoping workshop with you, to begin with, to make sure we’ve captured your new product idea in the best possible way. This could take up to ~2 hours.
We will then assess the idea in depth and return a detailed report, complete with a product development cost estimate and Return on Investment (ROI) calculation to you, which you can then give to your bank manager or investor.
Why is this important?
Laser focus and peace of mind.
Carrying out a structured systematic feasibility study that is tailored to your unique needs will determine and clarify what factors will make the new product or service a success. Realising a project takes more than a good idea. Is it profitable or cost-neutral in the long run? Have we chosen the right location? Is it possible to live up to the time schedule and operating budget? A feasibility study can give your project a necessary reality check. With the current conditions as the starting point, we estimate the potentials in your project or business case to make sure that your vision is realistic, fundable, and socio-economically sustainable.
And if I don't do one?
If you skip out doing feasibility studies in developing your new products, here what may happen next:
- engineering will start and may not end up at all (and your engineering contractor may still ask you for fees to cover the time they have spent on your project), or may end up with mitigation. In some circumstances I have seen some engineering company starting developing without performing feasibility study and where the engineering team was styled in the middle of the process with no other choice than just give up the project; the result being an extended period of time have been used for ending up with nothing.
- engineering will start and mass production will end up with a unit price being higher than what expected, so your product is unsellable because too expensive face to the competition, or is simply not affordable for consumers.
How do I get started?
Once we engage, we’ll:
- Conduct preliminary analyses
- Prepare a Projected ROI Statement
- Propose business organisation and operations
- Review and analyse all data
- Recommend a “Go / No Go” Decision
It sounds scary and formal. It’s not really. Just structured and systematic.
What are the deliverables?
A great decision tool.
You’ll end up with a professional report with the following sections beautifully completed with our findings and recommendations:-
- Executive summary
- Description of the product or service
- Technology considerations
- Product/service marketplace
- Suggested outline marketing strategy
- Organisation and staffing
- Financial and Return on Investment (ROI) projections
- Findings and recommendations
This report will be critical if you are needing an investor.