Dynamic Market Models Give Insight into Business Opportunities
 
 

Dynamic Market Models Give Insight into Business Opportunities

Dynamic Market Sizing

 

In today’s age of fast-paced technological progress and constant innovation, no company can be complacent; they must constantly seek out the next big idea to stay relevant.

 

This is why a leading innovations technology company, with its broad portfolio of technologies, is continuously looking to expand its product offerings and increase market share with its existing products. Their innovation group focuses on exploring ways to enter new markets where they have no presence and creating new use cases for existing technology. But, before fully investing in an idea, the company knows that it is important to mitigate risk by validating the viability and profitability of an idea. To help answer these crucial questions quickly, the company was looking for a partner that would objectively and collaboratively work to conduct market research, size unique use cases, and provide actionable recommendations, beyond that of a standard and general market sizing analysis. Logic20/20 proved to be an excellent fit, with expertise in helping clients perform market research and formulate go-to-market strategies with a collaborative approach and a focus on creating a culture of measurement and innovation for clients.

 

Market sizing: is an innovative idea worth the investment?

Since first establishing their partnership, Logic20/20 and the innovation team continue to partner to generate insights into potential markets for new and existing products through various market sizing efforts. The purpose of these analyses is to validate whether it makes sense to move forward with and invest in an innovative idea based on current market trends and analysis. To answer this big question, they need data about how large each opportunity is, if the timing is appropriate for investing in and developing a specific product, and how to bring it to market. Logic20/20 performs the detailed analysis needed to determine the market size by identifying Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market (TAM, SAM, and SOM) and delivers a dynamic market model that the team can adjust and customize based on ever-changing market trends. Each project only takes a few weeks; within the short timeline, Logic20/20 follows a refined process to ensure quality and efficiency are top priorities.

 

1. Assess and plan market sizing strategy

The first and most essential step of market sizing projects is to take the time to fully understand the innovative product. We work with the innovation group, talk through ideas and hypotheses, provide feedback, and work as a team to focus the strategy. Once that is complete, we work with the clients to refine the scope of the project and lastly, develop a plan to complete the research and analysis.

 

2. Build use cases for product

Once the project plan is developed and approved, the next step is to build use cases for the proposed product. Use cases are essential for establishing a perspective to collect data and to conduct the analysis. Here, Logic20/20 defines which countries or regions to research, as well as which industries or types of users to target.

 

3. Gather data for market analysis

After the use cases are defined, Logic20/20 gathers applicable data. The team identifies industry reports and secondary market studies; we hold meetings with industry analysts across the world and perform in-field research. Competitors are evaluated along with their offerings and Intel’s existing data and reports are also incorporated. Logic20/20 evaluates each piece of data, ensuring that only relevant and reliable data is included.

 

4. Build dynamic market model

Once all the data is collected, the Logic20/20 team builds a dynamic market model that calculates the estimated market size for each use case by region of the world. To produce the market model, data is recorded in spreadsheets and the necessary hypothesized variables are defined. The model visually displays the data, showing market trends and whether a significant opportunity exists. For a more precise estimation, the model is completed by conducting both top-down and bottom-up analyses. Because the model is dynamic, the innovations team can continue to use the model and adjust the variables if new information becomes available in the future.

 

The market model enables real-time insights through data visualization, but there are other benefits that stem from this process.

 

• During research, Logic20/20 is able to identify additional markets to incorporate into the final reports.

 

• Accompanying the model, Logic20/20 gives a series of presentations to company executives with recommendations on which markets to pursue and how to go to market.

 

• The innovations team relies on the dynamic market model that Logic20/20 created to “throw out” use cases and validate opportunity in several previously unconsidered spaces.

 

The innovations continues to use their respective models to understand the market as trends continue to evolve and impact outcomes. Our client has been so pleased with the high level of service from Logic20/20 and our effective approach to market analysis, that the group continues to refer their internal colleagues to Logic20/20. To date, Logic20/20 has delivered nine market analysis projects for the business in total. Over time, we have also refined our own approach to shorten the speed of delivery, bring better clarity to our recommendations, and empower our clients with tools to support their needs.

 

 

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