From Concept to Consumer: How to Turn Ideas into Money by Phil Baker, cofounder of Think Outside (creator of the Stowaway folding keyboard), is a worthwhile read for the entrepreneur with the “great idea” but little idea how to make his concept a money‐making reality.
In ten easy‐to‐read chapters ranging from “New world, new ideas” to “Now what?”, Baker guides the reader through the steps required to achieve the goal of marketing a product. A veteran innovator, Baker holds more than 30 patents – clearly a man who knows of which he speaks – and his book is filled with concrete examples of successes and failures encountered in his 30‐plus years as a product developer.
As the reader wends his way through the complexities of bringing a concept to market, he is encouraged by Baker's consolation that seeing the end result of his labors is “… one of the great rewards for those who develop consumer products – to take an idea and turn it into a product that millions will buy and enjoy” (pp. 1‐2).
Chapter 1, “New world, new rules,” drives home the theme that Baker carries throughout his book: the rules have changed for product development. Not only has the product life cycle drastically shrunk from years to months, but “developments in digital technology, the Internet, and high‐speed communication allow us to use a manufacturer in Asia, a call center in India, and a designer in Europe” (p. 8).
Once you have accepted that time is of the essence and geographic location is no longer a factor, Baker advises, “Just do it” (Chapter 2). “Leveraging … doing what you do best and letting others to what they do best … makes it easier to expand and contract, and avoids adding fixed overhead costs” (pp. 21‐2).
The key to successful and rapid innovation lies in your ability to take advantage of others' proven capabilities and focus on your own equally proven strengths. At the same time, though, Baker cautions against over‐developing a product simply because others (particularly product engineers and product reviewers) say so. “My advice is to design and manufacture the best product you can … and get it out to the public … They will tell you which refinements you need to make … ” (p. 30).
Chapter 3, “The basics of development,” is particularly useful for the innovator who knows absolutely nothing about the product development process. The author amply demonstrates his familiarity with this phase and takes the reader through a step‐by‐step tutorial on everything that must be considered – and must be done – to successfully master this phase. Product development, says Baker, is a “blend of research, engineering, marketing, and intuition … balancing features, cost, and time to market while never quite knowing what will be your competition once you get done and what obstacles you might run into along the way” (p. 31).
After a thorough examination of product development, Baker moves on to product design (Chapter 4, “Industrial design matters”), “… one of the most important parts of creating a successful consumer technology product … ” (p. 51).
Citing examples ranging from Motorola's struggling Razr mobile phone to the concept‐jarring Fuego barbecue grill, Baker drives home his firm conviction that “… good industrial design … adds another dimension to the product that says much about the kind of company you are and your appreciation for doing things that are out of the ordinary” (p. 65).
“Concept to consumer” gets just a bit complicated for a novice entrepreneur in Chapter 5, “Why outsource?” But if the reader was paying attention in Chapter 2 when it discussed “leveraging resources,” this segment makes all the more sense. “Where once a company that branded a product did almost everything from design to manufacturing, that's no longer the case” (p. 68).
In particular, Baker emphasizes the burgeoning power and productivity of Asian manufacturers, especially China and Taiwan, whose engineering and manufacturing capabilities surpass other Asian countries as well as the US and Europe. But, he cautions, outsourcing portions of the overall process does not relieve the creator of the concept of overall responsibility. “A company's role and responsibility, wherever they[sic] produce a product, and particularly when they sell if under their own name, is to oversee the development and manufacturing and ensure the product meets the requirements through careful inspection and auditing of production” (p. 78).
The fledgling entrepreneur might logically ask, “How do I protect myself if I outsource my production to Asia?” Chapter 6, “Selecting and working with an Asian partner,” offers tips for just that quandary. A good start, suggests the author, is to identify “… a company that already does or comes closest to doing what you need done … ,” as that company presents “… less risk since they've already made the mistakes and likely have learned from them” (pp. 83‐4).
The role of marketing in “Concept to consumer” is discussed thoroughly in Chapter 7, “The marketing component.” Baker does not assume the reader's familiarity with this phase of product development and provides a good overview of marketing as the sales support function it is as well as of public relations as a mechanism for generating product awareness and acceptance. “Failure to position your product the way you would like it to be viewed in the marketplace means that others will instead. First impressions can be difficult to change” (p. 103).
Once your product has been developed and marketed, though, what next? How do you get the product into the eager hands of your consumers? Chapter 8, “Distribution: getting your product to the customer,” answers these questions and more. Options are many, says Baker, and it is incumbent on you to make the determination as to how you will accomplish your final objective. Alternatives ranging from retail distribution (both direct‐to‐retailer and distributor‐to‐retailer) as well as internet sales and licensing (letting another company manufacture, market and distribute) are examined, with the final decision left to the reader as to which method best satisfies his needs. The bottom line, says the author, is that you need “a plan to get your product into the marketplace and in the hands of your customers” (p. 113).
Chapter 9, “Legal advice: knowing when to ignore it,” addresses the (often not‐so) obvious necessity for legal consultation as you embark on your entrepreneurial journey. While the author makes no bones about his skepticism regarding the need for legal advice, he explains the ways in which lawyers can be utilized and the pitfalls often encountered when doing so. “A successful relationship is based less on having tight legal agreements and more on finding a company with high integrity … Looking back, I found that much of the advice from capable lawyers in prestigious law firms to be impractical and just plain wrong” (p. 127).
The product is finally launched and in the stores. “Now what?” (Chapter 10). This phase, according to Baker, is often where the pitfalls lie. Especially today, with the internet's information‐proliferating capabilities, “almost anything a company does of any importance quickly finds its way onto the Internet” (p. 141).
What this means, cautions the author, is that you cannot simply rest on your laurels and wait for the profits to pour in. You have to constantly be on the alert, on the move, and on the forefront in your field. “The best defense to competition is developing your follow‐on product while your competitors are busy copying your current one” (p. 142).
Concept to Consumer: How to Turn Your Ideas into Money is a good guide for the novice product developer and, perhaps, a useful reminder for the seasoned producer as well. Baker's decades of experience in bringing products on line for such innovative companies as Apple, Seiko, Atari and others enable him to offer real‐life, real‐time advice that can guide others. “Concept to consumer” offers a roadmap that helps avoid the pitfalls of product development. Why is this important? “Success depends on so much more than having just a great product. Build it and they will come rarely works” (p. 153).
