The previous post outlined regulatory barriers that could be used to counter Alien Invaders. This post focuses on bringing R&D forward to Alien Invaders.
Incumbents in the marketplace can transition research and development work to create next generation answers to Alien Invaders. Transitioning R&D increases risks while shifting efforts to new generation product. Introducing next generation products can be tactically useful (Intel CPU chips, EVs, higher performance PV-solar). Bringing those products is not cost or risk free however.
Failures to effectively transition R&D have obvious harms. Nevertheless, gains from incremental and bold R&D moves can be disproportionate. “Digitalization” gains that provide even small value to early innovating customers can drive longer term relationships.
Deploying new “digital features” can build a direct enterprise to customer contact where only indirect/channel-controlled contacts occurred. Each of these digitalization gains will increase costs (and lower historical margins) while building value with customer relationships for future revenue and margin. Timing of current and future profitability are issues for good tactics and understanding customers.
The next post deals with utilizing Geography and Workforce barriers against Alien Invaders.
This post only touches the surface of how accelerating the R&D pipeline can defend against Alien Invasion. If you’re considering this tactic, or if you simply find it interesting, drop us a note at www.ekalore.com/contact
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