What Exactly is Commercialization?#

Simply put:

Commercialization: This is the whole process of taking a new product, service, or even a new way of doing things (like a manufacturing method) and making it available for sale in the market. It’s about bringing something new into the world of commerce.

Often, when people talk about commercialization, they mean making something available to the mass market, the general public or large industries. But it also includes bringing something out of a research lab or an inventor’s workshop and getting it ready for any kind of sale, even if it’s just to a few specialized customers (a niche market) at first.

Most cool technologies, especially in electrical engineering, start as prototypes or experiments in a lab. They might be amazing technically, but they aren’t quite ready for prime time. Getting them ready – the “development” part of “Research and Development” (R&D) – takes serious time, money, and engineering effort. You have to figure out how to manufacture it reliably, test it rigorously, ensure it meets safety standards, and much more. The goal is to turn that technical concept into something that can actually make money – a “paying commercial proposition.”

The very last step before something is widely available is often called the product launch. This is when advertising, sales teams, and marketing efforts really kick in to tell the world about the new product and get people to buy it.

Sometimes, technologies go even further than just entering the business world (commercialization). They might become everyday things people use in their homes or on the go. This is sometimes called consumerization. A classic example is computers: they started in research labs, then became essential tools for businesses (commercialization), and eventually became common household items (consumerization) – now they’re in our pockets (smartphones) and even on our wrists.

The Commercialization Journey: More Than Just Selling#

People often mix up commercialization with just “sales” or “marketing.” While sales and marketing are parts of it, commercialization is a bigger, more involved process. Think of it as having three main parts:

1. It’s like a Funnel: Imagine a funnel. You start with a lot of ideas at the wide top – maybe dozens or even hundreds of concepts for new products or technologies. As you move down the funnel, you test these ideas, refine them, weed out the ones that aren’t feasible or don’t seem to have a market, and invest more in the promising ones. By the narrow bottom of the funnel, you’re left with just one or two solid products or business opportunities that you can realistically launch and keep going long-term. As an engineer, your early work helps determine which ideas even make it into the funnel and which ones get out the bottom!
2. It Happens in Stages: Commercialization isn’t a single event; it’s a process with distinct steps. Each step has its own goals and important checkpoints (milestones). You don’t just jump from a breadboard prototype to millions of units being sold. You go through design, prototyping, testing, pilot production, refining the manufacturing process, getting certifications (like UL or CE for electronics), and then the actual launch. Engineers are deeply involved in hitting those technical and manufacturing milestones at each stage.
3. Getting Everyone Involved Early: It’s super important to talk to key people early in the process. This isn’t just about engineers talking to engineers. You need to involve people from marketing, sales, manufacturing, and most importantly, potential customers! Why customers? Because they’re the ones who will actually use (and hopefully buy) the product. Getting their feedback early can save you a lot of time and money by ensuring you’re building something they actually need and want. Imagine designing a revolutionary power supply, only to find out late in the game that customers needed a different voltage or form factor. Talking early prevents that.

Big Questions Before Launching Your Product#

Okay, so you’ve got a promising technology – maybe it’s a new type of sensor, a more efficient motor driver IC, or a cutting-edge communication module. Before you launch it, there are some critical questions you need to answer. These aren’t just business questions; they have direct implications for the engineering team and the product itself.

1. When Should We Launch?

   • Market Timing: Is the market ready for this technology? Is there a current need? Or is it too early, and you’ll have to educate everyone first? Is there a specific season or event when this product makes more sense?
   • Technical Readiness: Is the product really ready? Have all the bugs been worked out? Has it passed all the necessary reliability tests (temperature, vibration, lifespan)? Are there any critical improvements still needed? Launching too early with issues can really hurt its reputation.
   • Competition: Is a competitor about to launch something similar? Do you need to rush, or can you take your time to perfect it?
   • Cannibalization: This sounds harsh, but it’s important. Will your new product “eat into” or reduce the sales of your company’s existing products? Sometimes companies delay a launch to maximize sales of their current lineup first. As an engineer, you might design the replacement product, but the company’s strategy decides when that replacement comes out.

2. Where Should We Launch?

   • Starting Small: Do you start selling in just one city, one region, or maybe one country first? This is often called a pilot launch. It lets you test the waters, gather feedback, and iron out issues on a smaller scale before going big. This is especially common for complex or expensive EE products or systems.
   • Going Big: Or do you have the resources (money, manufacturing capacity, distribution networks) and confidence to launch everywhere at once?
   • Resources Matter: Smaller companies usually have to start small, focusing on the most promising areas. Bigger companies can often launch nationally or even internationally right away because they already have the infrastructure.
   • Global Challenges: Launching globally adds layers of complexity for electrical products: different power voltages and frequencies, different plug types, varied regulatory certifications (like FCC in the US, CE in Europe, CCC in China), language differences, and diverse customer needs. Big multinational companies (like Unilever or Procter & Gamble mentioned in the original text, or think of major electronics firms like Samsung or Siemens) have the scale and systems to handle this. Some use a “lead-country” strategy, launching in one key country first (maybe where testing was done or where the market is strongest) before rolling it out elsewhere. As an engineer, your design might need variations for different regions.

3. Whom Should We Target?

   • Who is most likely to buy and adopt your product first? This is often figured out through market research.
   • Innovators: These are people eager to try new things.
   • Early Adopters: They are also keen to try new tech but wait a bit longer than innovators and often influence others.
   • Heavy Users: People who use products in this category a lot.
   • Opinion Leaders: People others look to for advice or recommendations.
   • Targeting these groups first makes sense because they are more likely to buy early and can help convince others during the product’s growth phase. For a new piece of industrial test equipment, this might be a leading research lab or a major manufacturer in that industry. For a new consumer gadget, it might be tech bloggers or gadget enthusiasts. Your job as an engineer helps make the product appealing to these early users – maybe by making it powerful, easy to use, or highly customizable.

4. How Should We Launch?

   • Once you know the “when,” “where,” and “who,” you need a concrete plan for the “how.” This involves putting together the marketing mix.

   • Marketing Mix: This is typically described as the “4 Ps”: Product (the features, quality, design), Price (how much it costs), Place (where people can buy it - online, stores, etc.), and Promotion (advertising, PR, sales efforts).

   • Engineers are crucial for the “Product” aspect, ensuring it has the right features and meets the promised quality. But engineering decisions (like the cost of components, manufacturing complexity, or power consumption) also heavily influence the Price and sometimes even the Place (e.g., can it be sold everywhere?).
   • You need a clear action plan and a budget for all these activities.

Why This Matters to Electrical Engineers#

You might be thinking, “I just design circuits, why do I need to know about this stuff?” Here’s why:

• Designing for Reality: Knowing about commercialization helps you design products that aren’t just technically cool but also viable in the real world. Can it be manufactured efficiently and affordably? Will it meet the required safety standards for its target market? Is it robust enough to survive typical use (and maybe abuse)? These are engineering challenges driven by commercial needs.
• Making Ideas Happen: You might have the best idea for a new energy harvesting device or a groundbreaking wireless chip. But without understanding the commercialization process, that idea might stay in your notebook or lab forever. Knowing the steps and challenges helps you contribute to bringing that innovation to market.
• Working with Teams: You won’t work in a vacuum. You’ll collaborate with marketing, sales, manufacturing, and supply chain teams. Understanding their goals and challenges (which are part of commercialization) makes you a more effective team member.
• Career Growth: Being an engineer who understands the business side – how technology becomes a product that sells – is incredibly valuable. It opens doors to roles in product management, technical sales, or even starting your own company.

In short, commercialization is the critical bridge that takes your brilliant engineering work from the drawing board or lab and delivers it to the people who can benefit from it, making your innovations impactful in the world. It’s the journey from a working prototype to a product on the shelves or integrated into larger systems.