Before developing an overall channel strategy for a new technology or a radically new product, clients need to develop insights into potential target customers segments and capable channel types. To generate these insights, Frank Lynn & Associates developed the NuTech Screening process. This approach consists of research with potential end-customers and channel partners and scores each respondent in three categories (or screens):
- The Functional Screen – will the product/technology fit into the customer environment? Does it meet a compelling customer need? Does it fit the channel’s sales, logistics and technical capabilities?
- The Economics Screen – will the product/technology significantly increase value or lower costs/risks for the target customer? Will the new product deliver the gross margins, net margins, inventory turns and other financial results sufficient to attract channel partners?
- The Time Screen – will the product/technology leap the real-world budgets, timing and political hurdles within customer organizations? Will practical or competitive conditions restrict which channels might carry and actively sell the product?
The resulting scores from this series of screening questions will reveal the highest opportunity for customer segments and partner types/companies.