SMART – higher value, lower price, better margins and increased market share
The Smart set of methods is used to develop products that basically offers customers more value per euro spent. The purpose is to make companies more competitive in the segments where they already operate and which constitutes the bulk of the their business volume.
SMART is a method for intelligent modification and further development of existing products in order to better match changing needs in Europe, including tougher price demands. The customers’ needs must be adequately and precisely met. Customers should not pay for features or levels of quality that they don’t appreciate.
The purpose of SMART is not just to make existing products better and cheaper to produce. Starting with an understanding of the customers circumstances and need, the process goes on to re-evaluate how all elements of the existing product, might be removed, reduced, upgraded or redeveloped in order to meet the needs of the customers more precisely than the competition.
At the Kata Foundation, we use the word, SMART, as a name for:
- The project
- The method for innovation which will be further developed during the project
- The new products which will be developed by the companies using the method
Development in practice
The objective of the project is to test and provide a general method to develop SMART products in cooperation with five medium-sized Danish companies. Each company must create at least one exemplary SMART product (in its first physical prototype) that can deliver the desired customer value.
Each product must be accompanied by a business case that demonstrates a high probability that the product can contribute to maintaining (and expanding) market share on the local markets, and that the product is competitive in relation to the new lower-priced companies which are entering the Europe, from Asia or other emerging markets.
The Smart project’s target group consists of 200 Danish medium-sized companies with a combined industrial export of an estimated 100 billion kroner to the local markets.
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