Building Fast New Product Adoption in Complex Market Chains: Creating Strategic Leverage

For technology-intensive companies the successful development of new technologies and their translation into new products represents the greatest strategic opportunity to generate differentiation and profit in competitive global markets. However, many companies have difficulty in successfully getting fast and profitable adoption of new products through complex market chains. The number and complexity of new technologies and market chains coupled with high investments and shortened life cycles forces managers to use new and better concepts and processes to select the key technologies to which scarce company resources will be committed. Strategic leverage analysis represents a new concept for managers to improve adoption rates. Conceptually, strategic leverage represents the impact of the adoption of a new product on the major strategic factors that drive the cash flows for all of the companies in market chains. This case can be used in conjunction with Creating Profit from Profit/Service Integrated Strategies, product 9B00A029.