Potential market

SECTION I: The product

1a The innovation potential of this product is related to:

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
Intelligent Web 2.0 recommender potential is driven by technology and market-user expectations for intelligent web services. The central principle behind the success of the giants born in the Web 1.0 era who have survived to lead the Web 2.0 era appears to be this, that they have embraced the power of the web to harness collective intelligence. Collective intelligence is defined as the ability of a group to solve more problems than its individual members. It is argued that the obstacles created by individual cognitive limits and the difficulty of coordination can be overcome by using a collective mental map. So the product is using the characteristics of web 2.0 applications to collect data and provide intelligence required by a demanding set of users.
1b What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
Intelligent Web 2.0 recommender combines various data from various Web 2.0 sources and applications, down loads user’s preferences, past content and rates, groups a user into a particular set of users (through clustering) based on user preferences and recommends items to the user for an application that the user might not have any activity. This combined process provides a added value based on the product’s innovative characteristics.

1c What is the Unique Sales Proposition of the potential product?
The unique sale preposition of Intelligent Web 2.0 recommender is that although most recommender modules are applicable to specific application e.g the user could be recommended videos while in youtube  based on the user’s search profiles, Intelligent Web 2.0 recommender interconnects different applications user models making use of clustering to recommend also applications that the user may or may not have been visited before.

SECTION 2: The Market

2a What is the target market for the product?

National ¨

European ¨

Global ¨x

Please describe the characteristics of your target market.

The market is global to all web users but is especially targeted to:

News agencies that can monitor a user’s activity in Digg and Twitter and provide article recommendations based on its activity.

Advertising companies that could utilize user profiles derived from their activities in various web 2.0 sites and provide recommendations to fit customer needs.

Marketing research companies that could utilize consumer behavioral models to generate trend analysis of consumer products

2b How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

Intelligent Web 2.0 recommender is at key stage and is progressing along within the web 2.0 application area. Few companies have presented product toward collective intelligence, although the potential for market increase in the near future is most possible. The operating business environment is dynamic and ever changing and in a sense is an unstable competition arena for the next web services giants.
2c What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

Intelligent Web 2.0 recommender satisfies hidden demand for commutative intelligent services. The demand is derived from the need for better services and searching information and ready machine processed accurate information. Speed and accuracy of results are the two most important needs that Intelligent Web 2.0 recommender satisfies. The availability of collective intelligence means is an indirect or hidden effect that the user ignores as far as he/she receives fast and accurate search services.

2d What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

The stage of the product in the market life cycle is at the beginning of implementation stage. In this life cycle generated ideas examined as potential products. Some ideas lead into new products. Intelligent Web 2.0 recommender is one of those and is at the stage where a number of research questions have been answered and the proof of concept is leading to a design of prototype.

2e Strategic partnerships (existing or potential).
At the time there not strategic partnership during the prototype implementation phase. Potential strategic partnership is required with social networks, and potential clients to pilot test alpha and beta versions. Another type of partnership required is with business development organizations that will advice the lab with Intelligent Web 2.0 recommender business model.

SECTION 3: The Competition

3a What is the competition within your target market?
There are few competitors operating in the collective intelligent web 2.0 market, such as:

Retail intelligence www.skroutz.gr

Discount retail intelligence http://www.pricerunner.co.uk/

e-booking and travel site http://www.expedia.com/

3b What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

Most of the competition operates through collecting and presenting consumers products by using web crawlers or APIs. Nonetheless the focus of these sites is on product to be sold to consumers. Intelligent Web 2.0 recommender is service oriented and is targeted to user service demand profiles examining entertainment and information provision sites.
3c Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

There is no direct competition Intelligent Web 2.0 recommender is targeted to specific professional target groups and not to the general consumer goods. This limited competition directs the product into high price range pricing strategy. Once the product characteristics will be tested and the product is introduced in the market could offer significant services to news agencies, advertising companies and market researchers. Since these services are usually very costly and clients will benefit financially from the product.
3d Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

The market operates under the principle of free negotiations.

SECTION 4: Indicators

Estimated cost of the new products 100.000
Expected market volume (potential / maximum number of users) 12.000
Expected sales volume 1.200.000
Expected market share of the company (proportion between sales and total company sales in the relevant market) 5%

KEYWORDS QUANTITATIVE ASSESSMENT (0-5)..

Please put X as appropriate. 1 2 3 4 5
Added-value potential x
Size of future market demand x
Competitive positioning of the product x

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