Time to market

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The term "time to market" ( TTM , English for about lead time , product launch time ) is understood to mean the duration from product development to placement of the product on the market . During this time, the product incurs costs , but it does not generate any sales .

A very short time-to-market results in a competitive advantage , especially for products with a short product life cycle - such as high-tech products - because the manufacturer is the first to bring the product to market and benefits from the high prices paid by early adopters are ready, and also no competitors can undercut the price. On the other hand, if the TTM is too long, if numerous competitors can already supply similar products, the product can only be sold at a lower price or it is already out of date by the time it hits the market.

With the lead user methodology first mentioned in 1986 by MIT professor Eric von Hippel , TTM problems can be counteracted at an early stage. Selected market participants are integrated into the innovation process. The impetus for their efforts are individual problems with products previously available on the market that do not meet their own needs. The TTM problem is addressed in particular through the early recognition of problems and needs and is significantly supported by the introduction of the knowledge already acquired by the lead user for problem solving.

literature

  • Alexander Brem: The Boundaries of Innovation and Entrepreneurship - Conceptual Background and Essays on Selected Theoretical and Empirical Aspects , Gabler, Wiesbaden, 2008. ISBN 3834908339 (Chapter on Pioneer vs. follower: the time-to-market dilemma, with empiricism)
  • A. Sänn, D. Baier: Lead User Identification Based in Conjoint Analysis Based Product Design (PDF; 579 kB), In: Studies in Classification, Data Analysis and Knowledge Organization , Vol. 43, 2012, pp. 521-528.
  • A. Sänn: Class instead of mass , In: Innovationsmanager , Vol. 16, 2011, pp. 66–67.