The term “commercialization” describes the process of taking an innovative product or process and bringing it to market. To do this, commercialization involves various tasks to prepare a product for commercial deployment, including research and development (R&D), engineering and design, market validation testing, securing manufacturing technology, setting up distribution and sales channels, developing marketing strategies, raising capital and more.
Commercialization can begin even before a prototype is fully developed; any activity that gets a product closer to readiness for sale is part of the process. R&D is an important aspect of commercialization as it helps bring ideas and concepts into reality; however, other facets like production processes and marketing plans must also be addressed for the product to succeed.
When discussing commercialization, it’s important to consider all stages of the process. It starts with getting the right resources in place—human capital such as subject matter experts or financial resources—then creating a plan that details all necessary steps to launch the product or service. In some cases, especially when dealing with technology-based products or services, it may also involve establishing partnerships with relevant organizations or educational institutions offering specialized expertise.
After R&D has been completed and all necessary resources have been identified and acquired, the next steps are manufacturing/production/distribution planning and scaling up production based on anticipated demand. Companies need to build the infrastructure needed for ongoing operations during this phase. Calculating costs associated with product development, production setup, and marketing campaigns must also be considered so that budgeting can be set accordingly.
The final step in commercializing an innovation is market entry strategy—this includes customer development activities like customer interviews which allow companies to gain feedback on their products/services pre-launch. This helps fine-tune existing products/services and develop new ones that meet customers’ needs before they hit the market. The same goes for pricing strategy—companies should do their due diligence when deciding how much value customers will receive from their offering vs how much they are willing to pay for it so they can set prices accordingly while still remaining competitive in their industry sector(s).
Innovation requires creative thinking with solid execution capabilities to succeed at commercialization; failing too early wastes time and resources, so preparation is critical throughout this complex process!