Newlogic is growing and we’re starting the search for new team members. We’re starting off with finding a couple of interns. This is the first time we’ve had to go outside our network to find people. I’m hoping bringing on a couple of interns will be a great opportunity to work with some talented and motivated students.
More information is available at jobs.newlogicusa.com.
I had a thought-provoking conversation over Thanksgiving turkey. A manager from a leading car dealership was explaining the evolution of their selling model. He predicts that soon the industry will no longer try to maximize the profit from each sale. Instead, he foresees their main metric becoming customer conversions.
Dealerships have realized that their profit centers are in post-sale services, maintenance and resale, thus, is more important for them to create a repeat customer than maximize their profit from a single transaction.
I’ve been thinking about how this relates to Newlogic’s business.
We’ve recently completed a low-cost “trial” project with a new client. We decided it was more important to convert the client to a customer than it was to make our desired margins. It was a highly successful engagement and we’re currently in talks for multiple major projects. We have the chance for this new work explicitly because “the trial went great, we liked working with you and you delivered excellent results.”
Now, another major CPG brand has asked for a “trial” project and we’ve agreed to deliver concepts in early ‘10.
We continue to grow because we have adapted to the economy and competitive landscape. Accepting that we must sell our work in new ways. No longer is credibility and confidence-in-outcomes, as expressed through experience and portfolio, as critical as “what can you do for me today.”
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Newlogic’s spin-out company, Newcare Medical, is working to receive a number of SBIR grants from the NIH. One grant is to develop an active noise cancellation technology for use in NICUs. The active noise control technology is to be licensed from another startup that we have been advising. This case is complicated by a number of factors.
When times get tough companies of all sizes and market positions seek ways to reduce expenses and conserve resources. These cycles give rise to increased pressures on new product development (NPD) managers and executives. While companies often respond with drastic measures, including freezing all new product development, NPD professionals are expected to concurrently generate top-line revenue while reducing costs.
Newlogic has helped guide clients through financial downturns, and subsequent recoveries. As a result, Newlogic has devised Innovation Survival Tools to effectively manage innovation during an economic down cycle.
With the economy improving, R&D organizations are coming back under the microscope to drive revenue growth. After an extended time of under-investment, many R&D groups have a backlog of work and are asking themselves “What should we do right now?”
The majority of R&D organizations we analyzed had not made project selection decisions that captured the greatest financial and strategic value. An optimized portfolio provides three key benefits: 1) Increases the value of R&D’s contribution, both work-in-process and revenues, 2) Supports investment in projects with strategic and/or long-term value, and 3) Increases R&D output through more efficient resource allocation.
The NIH is sponsoring an insightful conference on the future of telemedicine. Videocast is available here.
To flourish in this downturn, challenge the conventional wisdom that only cost-reducing wins. “Recessions provide fertile ground for launching new businesses, developing disruptive new products and strengthening customer loyalty.” These are the words of marketing expert Andrew Razeghi from Northwestern University. Here are a few tips he offers based on the many examples of successful companies that prospered during recessionary times:
• While managing cash is important, don’t put the brakes on. Continue to invest in R&D and marketing. “Listen to the market, invest in products for the long term, and keep in front of the customer.”
• In a recession, the worst thing you can do is to go dark. In a recession “fear creates focus.” “Customers wonder how you’re doing. Now is the time to increase communication and restore confidence not only in the products you’re selling, but also in the company behind those products.”
• Marketers need to play to their strengths, and rethink how to turn those strengths into new opportunities. As marketers continue to clamor for attention, sensory branding will grow increasingly relevant to help cut through the clutter.
As he points out, many high-profile name brands were born in the midst of the Great Depression.
When times get tough companies of all sizes and market positions seek ways to reduce expenses and conserve resources. These cycles give rise to increased pressures on new product development managers and executives. Newlogic has helped guide clients through the last two financial downturns, and the subsequent recoveries. As a result, Newlogic has devised five Innovation Survival Tools to effectively manage innovation during an economic down cycle.
