Know the Product and the Customer - Tips for Research Based Business
Written by Jussi Meriläinen
We invited Esko Herrala to share his experience on science based entrepreneurship and possible challenges in the beginning of the business. Big themes handled on the visit were the knowledge of customers’ real needs, understanding the product, and communication.
December’s guest in our InnoVisitor speech series, Esko Herrala, presented research based business’ strengths and challenges with a solid personal experience. Many of the examples derived from a company founded by him, Specim, Spectral Imaging oy.
The actual topic of the visit, Research Based Entrepreneurs SWOT-analysis, acted as a lead for wider discussion about different parts of establishing business.
Trustworthy but narrow scoped partner
In Herrala’s SWOT model, the strength of the research base is the aim for new and exact knowledge and avoid possible errors. That is why a company based on science is an opportunity, a trustworthy partner with novelty and new ideas.
Research requires also unyielding and determined attitude, which is a strength and an opportunity from the business perspective.
Respectively threats and weaknesses derive from research work’s characteristics: it can be narrowly focused, when business requires larger scope. Thoroughness can turn into an endless development, which isn’t ideal for creating a product. Another threat was the unawareness of the customer needs.
Naturally, many perspectives of business and skills needed in it may not be the strong points for researchers. Herrala mentioned sales, marketing and HR management as examples. Such skills are unlikely to be involved in researchers degree proper.
Plan the Strategy and Know Your Product
On the basis of attributes mentioned before Herrala worded out clear principles for developing better mindset. These tips also accounted the difficulties he mentioned in the SWOT analysis.
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• Liiketoimintaa tehdään rahan ansaitsemiseksi
• Älä ylikehitä tuotetta, vaikka se on hauskin työvaihe
• Luo visio ja sille sopiva strategia
• Ymmärrä asiakasta ja markkinalogiikkaa
• Ymmärrä ongelma, ja kuinka hyvä ratkaisusi on
• Myy tuotteita, älä laitteita
• Vältä tunnesidettä, mutta rakasta silti tuotettasi
Though some of the tips may seem obvious, anybody establishing a business needs to face them. He gave a spot on example on figuring out the strategy: you shouldn’t start from the first steps and move towards the goal. On the contrary it’s better to decide the goal and figure the steps backwards towards present.
Another topic that arouse discussion was the defining the product scope. What is the problem being solved, what is the competition, what is the actual product? Sometimes easier solution can be better, if it still solves 80% of customer needs. These needs can also be surprisingly narrow, and many research based companies give in to offering needlessly wide and complicated solutions.
Communicate, so your customer understands
In reaching the customer Herrala mentioned a proper language. Scientific terminology is not always clear for potential customer, even though the need for the product is real. That is why it’s important to sell the solution instead of technology. Customer needs to understand the product and recognize the value.
In the end, when the need and solution meet, the communication should go on. The company has to establish a confidental relationship with customer and see that both parties are content. You should also know the possibilities for further product development and new applications in different contexts.
Esko’s visit taught again, what kind of knowledge and support a company from university may need in the beginning of the business. That is exactly why Innovation Centre maintains many contacts and updated information, so potential business ideas get best possible basis for success.
Jussi Meriläinen
Innovaatioviestinnän Yliopistoharjoittelija // Innovation communications Intern
+358 50 305 5741
jussi.merilainen@oulu.fi
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