Manage your research, design and development
Tiss Ltd was formed in 2001 to exploit an idea for an innovative new trailer alarm system for the haulage industry. Following intensive research and development (R&D) the company now has a range of four patented products and a large client list. Managing director Alex McCracken describes the project process.
Plan and budget
“The idea for our flagship product, LoadSafe, originated with our technical director, Brian Wholey. He identified a growing need for a security system to protect vulnerable curtain-sided trailers from theft.
“Our project had two streams, which involved testing the market and securing finance. We researched the market by contacting hauliers to quiz them on security issues and to gauge interest. Our analysis of their responses confirmed the opportunity.
“In parallel we prepared detailed financial forecasts and raised funding from private investors. With the help of our local Business Link, we also applied for a DTI Smart Grant and were awarded £82,000 towards R&D.”
Build a prototype
“Having established this platform, the key was to build a prototype and protect the intellectual property we were creating. We approached ten different alarm manufacturers with a brief. It’s surprising how much quotes vary, so it pays to shop around.
“Our chosen partner was prepared to off-set some of the development costs incurred against future sales. This made a big difference and demonstrated their confidence in the product’s potential.”
Test and re-assess
“You can’t assume everything will work straight away. You have to allow time and money to modify ideas. We spent the best part of a year building, testing and adapting the first product.
“Having a working prototype to demonstrate was an important milestone. Over 30% of the firms we demonstrated to wanted to conduct a full trial. Feedback from these trials was hugely valuable in modifying the product. Wwe learned that customers wanted to be able to track the trailer in the event of a theft.
“As a result of this feedback, we developed ‘TrailerSafe’ a solution that incorporates a GPS tracking system. This product generated sales of over £100,000 in its first year.”
Don’t over-design
“We got carried away designing loads of functionality into the prototype. As the project progressed, it became clear that most customers didn’t want or couldn’t afford all the functions on offer. We could have saved time and money by concentrating on the basic features.”
Think laterally
“We didn’t get the target market right initially. We thought that because our product involved trailers, our only targets were haulage companies. Eventually, we successfully shifted the strategy towards large retailers and other companies that transport high-value loads.”
Alex’s top tips:
· “Have a clear plan and project milestones, and re-assess regularly.”
· “A grant is great, but it won’t cover the full cost, so raise additional finance early.”
· “Don’t put all your eggs in one basket, as not every R&D project succeeds.”
