Do you know what "time to market" means? It’s a term used to identify the time spent in the process of developing a product, from its conception to the moment it is announced to customers.
Time planning is crucial within companies. Knowing how to seize the right moment to launch something new is as important as the product’s quality itself. When there’s a slow speed in getting it out there, no matter the level of innovation, competitors will get ahead.
The time a marketing department takes to prepare product launches must not become a bottleneck. This process should be quick and simple. The ability to adapt is significant when it comes to surviving and standing out in the digital business world.
Quality
It’s common, yet wrong, to think that time to market and product quality move in opposite directions. TTM can indeed be shortened by skipping steps in the development process, compromising the product’s quality.
However, in structured processes, product development is seen as a defined sequence of steps to be followed. Skipping a step can not only negatively affect quality but also end up prolonging TTM by having to redo an earlier phase.
How to Measure?
In defining time to market, there’s no specific standard for measuring it. There’s significant variation in how companies establish the beginning of this period. For example, in vehicle creation, the development period starts when a new car project is approved.
Other companies, however, may not consider a project started if it hasn’t been actually built and visualized. For these companies, the initial point only exists when the project is ready.
Definitions of the end of the TTM period also vary. Some consider a project completed when it is sent to manufacturing. Others define completion when the first model of the new product is sent to the store. And some believe it is only when the first customer buys it.
TTM measurements also depend on the complexity of the product and the internal organization of the processes related to the project. This includes the technologies it requires and its manufacturing processes. Launching something new takes much longer than creating variations of products that already exist.
Even with different levels, the significant differentiator in time planning is the company’s ability to optimize it in relation to the competition.
While TTM is a crucial metric for any business, it’s important to note that how it is measured can vary greatly depending on the industry. In software development, TTM may be tracked from the moment a feature is conceived to when it's deployed and in the hands of users. Meanwhile, industries dealing with physical products, like automotive or consumer electronics, may begin tracking TTM after project approval and conclude when the product reaches store shelves or is purchased by the first customer. By recognizing these differences, businesses can better align their TTM goals with their specific market needs and establish more relevant benchmarks for success.
How Does Time to Market Generate Value for Customers?
The focus of most organizations is the customer. If we take the concept of a balanced scorecard as an example, the customer’s perspective counts a lot. Some of its overall performance goals focus on accelerating the launch of standardized products to the market to be the preferred supplier for customers and develop innovative products.
Therefore, the company’s performance from the consumer’s viewpoint is a priority for managers. Customer interest typically divides into four categories:
- Deadline;
- Quality;
- Performance and services;
- Cost.
Lead time measures the necessary period to meet consumer demands. For existing products, lead time starts from the receipt of the order to the supply of the product or service to customers.
For new products, the launch period ranges from the product definition phase to reaching the final consumer. The quality evaluation studies defects in products as perceived by the customer.
Another factor defining quality is the accuracy in delivery forecasting. From this perspective, we can define creation for the customer based on two pillars: the offered service/product and the brand's performance during the process.
A reliable indicator of innovation is the consistency in developing and quickly launching standardized products, responsible for most future sales. The goal is to achieve regularity in manufacturing new products rather than simply improving the production of those already in circulation.
How to Reduce TTM in Your Company?
After better understanding the meaning of time to market and some of its specifications, you might be wondering how to reduce it within your business. Check out the tips we’ve prepared for you!
Well-defined Workflows
The first step to optimization is defining workflows. This is important to avoid delays and minimize idle periods during procedures, both from employees and machines.
Technological systems are very welcome in this scenario to manage your production plant with collaboration spaces, activity guides, and tailored instructions for operators and supervisors.
The tool also aids in traceability, sharing visual information, and facilitating the visibility of processes with transparency and agility.
Coherent Methodologies
When the goal is to reduce time to market, look for methodologies that prioritize team productivity over the speed of organizational processes.
The Scrum method is a great option as it informs team members about what each person is doing and their respective responsibilities. It also allows tracking of progress and setting realistic deadlines.
Process Automation
Automating processes is a rule of thumb in industries. To improve time to market, it is essential to have solutions that allow the development cycles of products and services to be automated to some extent.
Automation is a key factor in reducing time to market, and its application can vary widely between industries. In software development, for example, continuous integration and continuous delivery (CI/CD) pipelines play a major role in automating the process from code development to production. Tools like Jenkins, GitLab CI, and Docker enable teams to automatically test, integrate, and deploy code, significantly cutting down development cycles. In contrast, manufacturing industries might focus on automating their supply chain, contract formulation, or quality control processes. By integrating industry-specific examples, businesses can better understand how to apply automation to their unique workflows and enhance their overall efficiency.
Automations can reduce time wastage and promote overall efficiency. With automation software, product development can be monitored from engineering to project management.
The supply chain and procurement flow more easily with technology applied in contract formulation, planning, and quality control. Poor warehouse management and stockouts are out of the question with an adequate solution.
By monitoring the system, losses related to machine and fleet maintenance can be prevented. Another highlight of automation is the integration with logistics and the sales sector, ensuring efficient product delivery measured by satisfaction analysis.