Time to market refers to the time it takes for the product to get from ideation stage to market launch.
Evaluations from realized projects have shown that the time to market is significantly reduced, for example from 20 working days to 5. This reduction is achieved by:
– Parallel processing instead of sequential data transfer
– Immediate maintenance of information as soon as it is available instead of only when required
– Centralized data maintenance in one system instead of decentralized maintenance and subsequent merging
– Error detection and correction through quality assurance and optimized processes, avoiding time-consuming corrections and changes
What are the benefits of shortening the time to market?
– Obviously, a new product can be sold earlier if it is available earlier. If the time to market is shortened, you can sell this product three weeks earlier.
– In addition, a product launch is expected to be in high demand and many preparations such as trade fairs or marketing campaigns are orchestrated precisely on this product cycle. A long or delayed time to market therefore has a major negative impact on sales.
– It must also be taken into account that the customer may then buy from a competitor and do so permanently.
Calculation:
For a company with a total revenue of €50 million with 50,000 articles.
Every year, 10% new articles are added, i.e. 5,000. The current time to market is 20 days, which can be reduced to 4 days, meaning that the 5,000 articles can be sold 16 days earlier.
With PIM, you can generate €363,000 more revenue.