Adrian KharvethiChief Strategy Officer · Essays & perspective
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Market entry and practical learning5 min read

Market interest is only one ingredient in a useful pilot

Early research should reveal whether a proposed experiment can be organised, not just whether a buyer recognises the problem.

A buyer can recognise a problem and still be unable to participate in the experiment a software company proposes. The missing ingredient may be an instructor, equipment context, access to a working process or someone authorised to accept the result. When those conditions are ignored, market research can produce a persuasive list of needs and an impractical pilot. I want the research to help us choose a setting in which we can learn something useful, while keeping the larger commercial question open. Interest deserves attention, but it does not by itself establish a workable route to the next decision.

We examined maintenance-training opportunities with nine water-utility teams, eight food-plant teams and seven warehouse teams. All three groups described problems worth understanding. The proposed pilot format also needed available instructors. Two of the water-utility teams, seven of the food-plant teams and three of the warehouse teams could provide that participation at the time. Those figures did not measure the size or attractiveness of the markets. They showed a practical difference in our ability to organise this particular learning exercise. I recommended beginning with food plants rather than trying to launch the same format in all three settings.

## Ask who must participate for the test to mean something

A simulation product sits inside a training process. Someone has to decide what is taught, provide the relevant context and assess what the learner can do. Our software can support that work without replacing the customer's responsibility for competence or safe equipment operation. A pilot that lacks the right instructor participation may still generate activity, but it may not answer the question that justified the investment. I therefore want the research brief to name the people and conditions required for a meaningful exercise. This helps the team recognise a dependency before it becomes a late explanation for disappointing results.

The question should be asked without making the customer responsible for solving the supplier's planning problem. Some organisations need help defining the proposed exercise or arranging the participation. That can be a legitimate part of the offer, with its own cost and scope. The mistake is to assume that participation exists because a buyer expressed enthusiasm in an interview. We asked about the format we intended to use and recorded the answer in that context. A team unable to join then might be suitable under a different timetable or design, so its response was not treated as a permanent judgement on the market.

Small research samples require restraint. Twenty-four conversations can reveal useful themes and practical constraints, but they do not establish a market-wide proportion. The seven available food-plant teams were seven of the eight we spoke with, selected through our research process. They were not proof that most plants would participate, nor were they signed customers. I made that limitation explicit in the strategy paper. The sample helped us choose a next step; it did not relieve the business of the work needed to understand demand, purchasing conditions or the economics of serving a broader population.

## Choose the learning before claiming the market

The recommended programme was a twelve-month pilot with a ₹4.8 crore funding envelope and three proposed client sites. The board approved the envelope, leaving management to secure the arrangements and report the evidence. We wanted a bounded commitment that could examine the product and delivery questions, not an announcement that the company had entered an entire sector. Product head Joseph Nelvarki and delivery colleagues helped define what the exercise needed to reveal. Strategy's role was to connect those learning questions with the investment choice and the conditions under which a later expansion might become justified.

An approved pilot is not a completed result. The programme still needs participation agreements, an appropriate design and a way to interpret what happens. A positive demonstration can be encouraging without proving repeatable commercial demand. A difficult session can be useful if it exposes a condition the product or delivery model must address. I want the team to know that the pilot is allowed to change our view. If only a successful expansion story is acceptable, the organisation may learn to collect reassuring activity rather than investigate the uncertainty that made the smaller initial commitment sensible.

The funding envelope also needs a clear relationship with the question. A twelve-month programme can drift into open-ended development if every finding becomes another feature request. Management should distinguish work necessary to answer the agreed question from a new product commitment that deserves separate approval. That distinction is not an instruction to ignore customers or refuse improvement. It protects the usefulness of the experiment by keeping the company aware of when it has moved from learning about an opportunity to building a broader business around it. The two can follow one another, but they should not become indistinguishable by accident.

## Carry the postponed options forward honestly

Choosing food plants first did not mean that water utilities or warehouses were poor markets. Our intended format was harder to organise with the teams we had spoken to at that time. That is a narrower conclusion and a more useful one. The strategy record should preserve why an option was postponed, including what would make it worth revisiting. Otherwise a temporary constraint can harden into a permanent label, or a later team may repeat the same research because nobody remembers what the earlier decision actually established. Keeping the reasoning available supports both discipline and imagination in future planning.

The same distinction applies to partners. We later found that only eight of thirty interested organisations had both the facilities and instructors required for a proposed programme, and six accepted the initial arrangement. That did not make the remaining organisations valueless. It showed different preparation needs and different stages of commitment. I see market and partner choices as related in this respect: the business needs to understand the work between interest and operation. A larger list may be useful for development, but it should not be presented as capability the company can already call on when making a customer promise.

Directors considering an early market programme can ask what management expects to learn, which participants are necessary and what evidence would justify the next commitment. They should understand whether the proposal relies on expressions of interest, agreed participation or completed operating experience. They can also ask how management will respond if a promising market cannot support the first pilot format. The answer may be to change the design, wait or choose another setting. The board should challenge the reasoning without becoming the team that organises each session or decides the content an instructor will teach.

The most useful outcome of our research was a better sequence. We had a feasible first setting, a bounded funding proposal and a clearer account of what remained unknown. That is a more modest claim than having proved a new market, but it gives the company something concrete to act on. I would rather start with an experiment the right people can participate in than spread effort across several attractive descriptions of demand. A strategy earns its value when the next commitment produces evidence the business can use, including evidence that makes it choose a different future from the one it initially hoped for.