New Business Developmentinnovations with the

highest degree of novelty

FR

OM

VI

SI

ON

TO

MA

RK

ET

SU

CC

ES

S.

Structuring Planning Inventing MarketingLEAD House of Innovation

LEAD Innovation Process

LEAD Innovation Culture

LEAD Agile Innovation Management

LEAD Roadmap

LEAD Transfer

LEAD Trend Scouting

LEAD Digital Innovation

Management System

LEAD Inbound Marketing

LEAD Network

LEAD User Method

LEAD Service Design

LEAD Business Model Innovation

LEAD Innovation Contest

LEAD Design Thinking

LEAD Hackathon

LEAD New Business Development

„There are many fantastic ideas. Genuine innovations are only th

ose that succeed in the market. With the LEAD User Method every

company can develop its next successful product. This succeeds

if you find the right experts and bring them into the team: first

and foremost, the users. In the end, they decide on market succe

ss. They are the effective drivers of every innovation. The most cr

eative of them are called LEAD Users." 

Michae

l Putz, Managing Partner

LEAD Innovation was founded in 2003, as a spin-off of the

Vienna University of Economics and Business

Administration, by Michael Putz. As the first provider of

the LEAD User Method in German-speaking countries, we

contribute our experience and our extensive network of

inventors to our customers' innovation processes. We

support you in structuring, planning, inventing and

marketing innovations, including open innovation.

While at least one area remains unchanged, and thus forms a "secure bank", for the

two types of innovation, market innovation or business model innovation, as well as

classic product innovation and process innovation, 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, if, for example, the values of the brand simply do not fit with the new

market.

The type of innovation with the

highest degree of novelty

3

New Business Development is the most complex and risky way to generate new

revenue. It should be possible to generate profits with a new product, or service,

and a new business model in a hitherto unknown market.

In order to tap new sources of revenue, a company has many possibilities. For

example, it can generate new revenues through business model innovation. A new

product or service is offered in a new form to a market that is already known. The

car sharing subsidiaries of well-known car manufacturers are an example of this. A

Swiss dairy farmer, for example, shows that this form of sales increase 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.

Definition of New Business

Development

New Business Development4

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.

Why New Business Development?

In order to develop innovative solutions as purposefully as possible, a "validation of

problems and needs" should be carried out in advance. To this end, 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.

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.

Focus, instead of being open to everything

Validate the problem before developing a

solution

Co-creation of the solution with users

With New Business Development you can rely on an important organizational

competence to generate sustainable competitive advantages and to be successful

in the market, in the long term.

Developing new target groups with New

Business Development

1. Understanding 3. Developing

2. Generating ideas 4. Testing

Get to know customers DNA

Get an overview of the

challenges, needs and trends on

the market

Identify customer segments and

their problems

Make a well-founded selection of

a customer segment and its

problem

Developing business models

Generating Pretotypes

Feedback loops

Identify LEAD Users from

the customer segment

Generating ideas and

concepts together with

progressive users

Developing Minimal Viable

Products

Checking the pretotypes with Real

Market Tests

Incorporate feedback from

potential customers

At the end of the phase,

presenting at least one pretotype

that has been positively tested on

the market, including a business

model and vision for the customer.

The 4 phases of New Business

Development

5

7

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.

The target market is divided into numerous segments and clusters in intensive

research work. Depending on potential, size and growth, the most promising

segments are selected in a decision meeting.

Interviews and desk research are used to collect trends in the selected market

segments. An overview of the global megatrends completes the collection of

trends. An analysis of the development and growth of selected market segments is

carried out.

Based on the analysis data, use cases are defined that contain the most promising

relevant problems and user needs. The aim is to find use cases that are still

unoccupied but have a high potential in development.

In addition to the qualitative findings from the interviews, the decision is 

made on the basis of quantitative market data such as market size and market

growth.

1. Understanding

Innovations with the highest degree of novelty succeed best in these 4 steps:

The 4 phases of New Business

Development

New Business Development6

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 an invitation to 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 this phase, LEAD Users are identified and invited to a conference lasting several

days. In order to reach potential LEAD Users, we use our extensive network, which

already includes more than 15,000 experts from various industries.

At the beginning, we contact potential LEAD Users by phone to talk about the

project and the search field.

Especially interesting for the third phase are people who are already presenting

solutions to the problem.

The project manager then meets the potential LEAD Users in their personal

environment. This interview is not only about, whether the interviewee actually has

good ideas, but also the project manager researches whether the person in question

is suitable for the workshops.

Meeting potential LEAD Users in person is also indispensable because it makes the

entire project more binding for them, and the project manager can possibly take

away their fears and ambiguities. This is because LEAD Users do not get a fee for

their cooperation, but only compensation for their expenses.

At the end of the second phase, the potential LEAD Users found will be presented to

you by means of a short profile. This contains the exact description of the LEAD

Users and the ideas they expressed about the search field.

Only then do you select those LEAD Users who will take part in Phase 3, the LEAD

User Conference.

2. Generating ideas

7

9

In phase 3, products with minimal functions, so-called "Minimal Viable Products",

will be developed in a LEAD User Conference using different creativity techniques

and business models. The results are "pretotypes" that can be tested directly in the

market in the next phase. The LEAD User Conference lasts several days and takes

place in a conference hotel. Moderators will accompany the conference.

On the first day the group should get to know each other better and generate as

many ideas as possible with the help of various creativity techniques. In the first

step, limiting factors such as price or technical feasibility will be ignored in order

not to restrict creativity. Important: The group must never leave the defined search

field.

At the end of the first day, the entire group tries to cluster all ideas into themes. The

decision as to which topics the group will work on during the second day is also

made at the end of the first day.

On the second day, detailed specifications for the selected topics are worked out in

small groups. The client's project team determines in advance which content

components these documents must have. Typically, such a requirement

specification contains an analysis of strengths and weaknesses, a risk assessment,

information about necessary partnerships with other companies, milestones, etc.

The project team then determines the content of the requirement specifications.

In order to give the projects a "face", a draughtsman accompanies the two-day

conference. This draughtsman has repeatedly proven to be a very good catalyst for

projects. It is a challenge for someone to convey a picture from his head to

someone else, so that he can then put it on paper. Each small group then presents

its solution concept. With the help of an evaluation sheet, each participant of the

LEAD User Conference then votes on each concept presented, on the basis of

various dimensions such as "technical feasibility".

In the last phase the results are tested.

3. Developing

New Business Development8

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 for at least one Pretotype to have tested

positive in the market including the Business Model and Vision.

Following the innovation days, the MVPs will be tested through interviews with furt

her customers from the market. Based on this feedback, the MVP will be successive

ly improved and developed into at least 6 pretotypes in the sense of Build-Measure-

Learn. In addition to the product, the pretype also includes an initial branding conce

pt and the corresponding business model.

In a first step, we select the appropriate test method for each pretotype. Our guidin

g principle is "How can we achieve the best results with the least possible use of res

ources?"

In principle, the more realistic the tests are, the more effective the results in this a

dvanced phase of product development are. To achieve this, most tests are designed

 in such a way that the user groups do not notice that it is a test.

So while we actively worked with clients in the preliminary phases, we achieve the 

best outcome in this phase if the potential client is not aware of the test situation.

An efficient possibility is, for example, A/B tests, i.e. you create a landing page with t

wo variants and test what is best accepted. In this way pretotype tests with differe

nt features can be done quickly and cost-effectively.

Smoke testing with dummies is another test procedure under very realistic conditio

ns, which offers a high gain of knowledge with at the same time little influence. For 

example, we present a dummy product, a video or a concept on a landing page or cro

wdfunding platform (Indiegogo, Kickstarter) and then observe how many people sig

n up for "Keep me updated" or click on "I want to buy XY" - without the finished prod

uct already existing.

The LEAD network is used in the test phase to bring pretotypes to life and to create 

the tests.

If required, a usability test can be carried out with beta testers or early adopters.

To ensure market fit, we will work with market research companies to

quantitatively check the concepts in the final phase.

4. Testing

New Business Development10 9

New Business Development10

Project plan

New Business Development

11

LEAD Innovation is an innovation partner and accompanies companies through

the entire innovation management process. Founded as a spin-off of the Vienna

University of Economics and Business Administration, we have been supporting

our clients in structuring, planning, developing and marketing innovations since

2003.

We started as pioneers of open innovation. Today we offer the entire spectrum

of innovation management.

"Open Innovation brings in the view from the outside, so that one does

not stew in one's own juice.“

Dr. Thomas Brauner,

General Manager PHILIPS Austria GmbH

Further references can be found on www.lead-innovation.com/en/references

With 20 highly motivated employees, we have been supporting companies in a

wide variety of industries for over 15 years. We contribute our experience from

over 300 projects. What makes this so promising is a more than 15,000 people

strong network of experts and knowledge carriers who are integrated into the

innovation process. This network makes it possible to evaluate internal

perspectives externally in an efficient way and to dare to look beyond one's own

nose.

LEAD Innovation is represented with locations in Germany and Austria and

carries out international innovation projects.

LEAD Innovation Management GmbH

Austria: +43 1 929 40 38

Germany: +49 89 2555 7134

www.lead-innovation.com

office@lead-innovation.com

TEAM EXPERIENCE NETWORK INTERNATIONAL

ClientsThis is us

Contact

Von der Vision zum Markterfolg - 

mit dem Erfindernetzwerk.From vision to market success - 

with the inventors network.

Stay curious,

Your LEAD Innovation Team.

www.lead-innovation.com

Definition of the fuzzy front-end,

Definition of innovation and innovation goals,

of product-, process-, service-,

of breakthrough innovations in

creation of the innovation process, increase

the culture of innovation, agile methods

historical analysis, identification of trends, derivation

of strategic search fields

market and business model innovations by means of

Open Innovation

existing and new markets via inbound and outbound

marketing

Structuring

Planning

Inventing

Marketing