Companies that innovate – and do it the right way – always have great success stories to share. One example that was recently shared related to the way automaker Porsche was able to turn its financial woes into success in the early ‘90s by coming up with an idea to make an SUV in addition to the sports cars it was already known for. Even though this didn’t seem to make sense, what they did next really allowed them to achieve success even to this day.

The right step they took was to first ask the market about their thoughts and ideas on an SUV and what they’d like to see included and would be willing to pay.  Once they had an idea of what the consumer wanted, they then designed the product and launched it in the market, and it’s still a very important piece of the company’s earnings.

The innovation process they followed is one to be inspired by. The lesson is that customer-centric information is so important to utilize before you design and build.

In fact, smart companies today are spending more budget on the planning phases when creating products so that they better meet a market’s needs. As a result, they are seeing more success than those who are flying blindly, hoping someone wants to buy their product.

Thanks to solutions like Gemalto’s (News - Alert) software monetization products, it’s possible to achieve and sustain revenue growth because companies can develop products that better meet consumer needs and that are priced more intelligently; but without packaging, there is no revenue.

And let’s face it – in this hyper competitive market, that key piece of the puzzle is necessary.   Gemalto offers four key elements of software monetization: packaging, control, management, and monitoring.

Madhavan Ramanujam, a monetization and pricing expert with consulting firm Simon-Kucher & Partners, recently presented during a Gemalto sponsored Webinar titled: “Monetizing Innovation: How Smart Companies Design the Product Around Price.”

 Simon-Kucher & Partners helps clients boost their revenues and profits and has developed a unique set of software monetization principles.   

“At Simon Kutcher we deal with this all the time. How do you go from hoping you will monetize to truly knowing you will.”

“When it comes to monetizing innovation, there are only 4 ways to fail” Madhanvan told Webinar attendees.

Feature shock is one. This is when there are too many things happening in one product that would have made more sense to break into more than one offering and even aim them at different audiences.

Minivation is also a problem. If you have a product targeted at just the right market, but the right price isn’t being charged for it, then you will fail, Madhanvan warned.

A product can also be “a hidden gem” or something that goes against the grain of the company and makes people uncomfortable so it gets put on the shelf and never launched. These hidden gems could have made the business successful.

Finally, another way to fail is via what Madhanvan called “Undead” products that never should have launched, but always come back to haunt you. They are the answer to a question no one cares about or the wrong answer to a need, and yet they still were put out in the market.

But you don’t have to fail, Madhanvan said.  As long as you follow the golden rule: Price before product.

This, he said, goes beyond just a numeral, it’s about what value you can deliver to meet customer needs and what they are willing to pay for it.

And you need to get C-level involvement. Having them involved really helps guarantee success can happen with monetization.

After helping so many companies succeed, Simon-Kucher & Partners came up with a framework that includes nine steps to really help with monetizing innovations.  Madhanvan covers these in detail on the Webinar. Be sure to check it out HERE.