Time-to-market: How Does It Affect Business?

Choosing the right time to make decisions is one of the most important factors in our lives. There are those who believe that intuition and experience are the best allies in these moments, while others take action only after analyzing data and information in detail. Nevertheless, timing plays a crucial role in personal and professional relationships and generates a significant impact on business and results. The same is true for launching a digital product — that is why time-to-market (TTM) is so relevant. In order to bring some perspectives, we will share some insights about time-to-market in this article. It is important to emphasize that consolidating concepts is not the main objective of this content since the topic raises discussions. What we present below are contributions that help us to reflect on the ideas that permeate this debate.

Exploring Concepts

Time-to-market is much more than a buzzword headlining the universe of startups and digital businesses. In its most consolidated meaning, the expression represents the time span between the conception of the product and its launch on the market. This time is relative and varies from industry to industry, that is, the success of the strategy depends on a number of factors related to the business. TTM can also be interpreted as the time between the start of the team’s work and the first sale. With this in mind, it is essential to consider that some product and service development strategies depend on time to achieve a competitive advantage. In these specific cases, the longer we take to launch, the less market share, revenue, and competitiveness we will have. Launch time doesn’t always have to be as fast as possible. In this race to enter the market first, it is essential not to lose sight of the quality standard, that is, the reduction of time-to-market should not be pursued at any cost. Seeking competitive advantage through quick feedback collections is the best way to improve the product with agility and excellence. Furthermore, by optimizing Software Development and product marketing processes, we reduced launch time. As a result, we gained more market share, as well as customer and user loyalty. Remember, being the first to explore the blue ocean may result in a higher profit margin than the competition.

How to measure time-to-market?

According to John Carter, author of Innovate Products Faster: Graphical Tools for Accelerating Product Development, the first step is to know what you are measuring and why. It is possible to measure the period (months or years) it takes to bring a concept to market, or the working hours of the people involved in the project, for example. In some cases, companies start timing when the team and budget are approved. However, in other situations timing starts weeks later. Therefore, it is essential to define when the project starts and ends. Carter recommends two-time measurements:

• The “clock is triggered” when the team is available and there is an initial definition (and the main risks are taken out),
• The “clock is stopped” when an MVP or the first version of the product is sold (or adopted), usually after the product is launched.

However, for the specialist, comparing TTM between teams or organizations requires some care. “The biggest factors that can influence time-to-market are the scope of the project, how much risk it contains, and how much innovation is needed to differentiate the product from the competition. Time-to-market comparisons are not accurate unless you understand when the timer starts and stops, and you understand the risk profile between the two projects.” In the article The Return Map: Tracking Product Teams, Charles H. House and Raymond L. Price point out that a study carried out by McKinsey reports that, on average, companies lose 33% of their profit when they launch products six months late, compared with 3.5% losses when they spend more than 50% on product development. “Increasingly, companies are learning that the time required to develop a product has more influence on its success than its costs”, they point out.

Time: a 21st-century luxury

We are often surprised by amazing and revolutionary products, but which are often made available to the market at the wrong time. For this reason, a significant portion of startups dies within the first year. An early launch can result in problems that are difficult to overcome, such as a poor product or poor service quality. However, launching too late can create a disadvantage that is difficult to reverse. Time-to-market is important because a delay in launch fragments the market you intend to sell your product or service. This affects the company’s profitability and decreases market share, undermining the cost structure. The first to market a completely new product guarantees a good percentage of market share.

How to do it faster and better?

As we have seen, in the world of digital products and services, time really means money. So, if you need help validating a business idea, contact us! Through Product Conception, we help you explore options, better understand users, identify features and define technologies. Our strategy consists of prioritizing items and planning releases that allow for the intelligent use of investments, improving time-to-market. Our team works through a multidisciplinary method that encompasses knowledge and techniques from various subjects: Design Thinking, User Research, UX Design, Prioritization, Product Marketing and Launch. Let’s talk about how our method can help you build your digital products or services? Contact us by filling out the form below!

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