Market potential of innovations from a financial perspective 2022

Consider, for example, that Gottlieb Daimler assumed this in 1901,
that there cannot be more than 1 million cars for lack of chauffeurs.

Or Erich Sixt’s statement in 2018 that the e-car has no future.

In hindsight, one is often wiser, but it shows that the market potential has
sometimes changes within 100 years or within 4 years. The speed of
The pace of market change has increased massively over the last 10 years and in the
last 2 years, the pace has become almost frightening.

This is also one reason why more and more companies are setting up their own innovation labs.
Build up. Innovation Labs play a very big role in digital transformation
and this has increased massively in speed over the last 2 years. So can
also develop and drive innovations separately from the daily business
be

Financial perspective of innovations

Asking critical questions is important but constantly questioning everything is certainly the
wrong way to make financial decisions on innovations. Objective evaluation
from different points of view is the approach and thus shows how “big” this innovation is.
could become. It is not a matter of evaluating every single point of view, but rather of
around the “whole

Take responsibility for the objective financial plan and whether this investment makes sense
makes.

The discounted cash flow analysis can be used to determine the profitability of a project.
calculate and protects here already from blatant false estimations at the start. It is
a theoretical view but it helps to get a better financial view of the innovation.
receive

Theoretical and practical knowledge in the field of market potential

The market potential corresponds to the theoretical maximum possible sales volume in a
Market. Purchasing power is also taken into account here.

So when it comes to innovations, you have to be ready to react very quickly and be able to adapt to the
needs of the clientele and the market. This is exactly why the
financial aspect is never forgotten. More service means that perhaps a
product must be financed differently with ABO solutions or otherwise. Also with the
The financing of innovations must therefore always find new ways or
be adjusted.

The interaction between Sales & Finance is all the more important in innovation, as only
cooperation brings success. An expanded understanding of the collaboration between
Sales and finance is the key here.

Key findings on market potential

• Assessments that are judged to be “wrong” today could, in a short time, be judged to be
  be classified as “correct”.
• Innovations also start on a small scale as the market potential expands in every direction.
  can change very quickly.
  Recurring critical observation of the market potential even after the
  Introduction.
• Regularly review estimates of the market potential and, if necessary
  UPDATE
• Innovation Lab can help to explore further market potentials all the more
  to increase or maintain the market volume.

Market potential installment plan / leasing of permanently installed air conditioning systems

In the field of building technology, the market has been growing for years. It is still
more built and a decline in construction activity is not in sight in Switzerland. Since also
There is a great deal of old stock, which now also needs to be refurbished with the energy turnaround.
must, the work will not stop in the future. This leads to the fact that for many
suppliers for the construction industry the market volume is growing steadily and so is the turnover.
Thanks to steady growth, the ever-decreasing margin is compensated accordingly.
The cost pressure is particularly noticeable in large projects. Various companies have
from this sector and no longer anticipates any projects that might be
smallest problems on the project can cost the existence of the company.

In percentage terms, the air-conditioning sector is growing even faster than the construction sector because here the
today’s building envelopes speak more and more in favor of it as they are built more and more like denser.
Furthermore, global warming certainly also makes its contribution. The customers would like
also always a pleasant indoor climate no matter what the outside temperature or
humidity prevails at the moment. This was also a reason why the invention of the
American Willis Carrier in 1902 was and is so revolutionary. This invention
enabled to live in areas where before hardly people live for a long time
could as the heat and high humidity made this impossible. Thus the
climate also led to migrations of peoples and to the settlement and industrialization of
new areas.

Despite these positive points, the current market volume in Switzerland is highly competitive
and here, too, margins are falling. However, hardly anyone cares about the
market potential, as the market volume is still steadily increasing, and thus the lower
margins. Therefore, new innovations are needed to increase the market potential.
and to find a niche in this area as well, but without moving away from the “DAILY
BUSINESS” too strongly. Here, the topic of value-added service should be addressed in the
strategy to find new approaches to differentiate from competitors.
to be able to take off.

Installment plan or leasing of air conditioning systems could be an approach here. There could be new
markets are opened which have not bought air conditioning until now for reasons of
financing option or not tax deductible, etc. Furthermore, Switzerland is
a country of tenants who are dependent on their landlords or other persons
are as well as all cooperatives or condominiums. These may or may not
often not alone decide whether to install a permanently installed air conditioner
may. This is almost 75% of the occupied apartments/houses in Switzerland. On installment plan
or leasing, additional services such as full warranty, buyback, etc. can be integrated.
be This gives a clear cost transparency, which we already know from the product car.
know For a long time, the only options there were leasing or purchase. Installment plan or even only
Rent, such as Carvolution offers today, was not available for private individuals.
possible. In 2018, Carvolution was founded and is now the largest provider of
Car subscriptions in Switzerland. This shows how quickly a new market potential is emerging in
a highly competitive market field.

These are precisely the reasons why the market potential in building services engineering is constantly being
Check and observe. What are today’s customer needs and what are the trends
there are in building services engineering. What combinations of trades such as
Air conditioning with photovoltaic could help to attract more customers. It is a
different statement for a customer or a cooperative when I say, “Yes the
Living spaces are cooled in the summer and that costs electricity” or “In the summer
you can use your own produced electricity for a better indoor climate”.

That is why it is important to look at the “WHOLE” in building services engineering and
not “only” his own trade. Only by working together can we achieve the energy transition.
Market potential of innovations is one of the pillars to achieve the set goals.