Time to market

Also called: TTM or market introduction time

Time to market refers to the duration from the conception of a new product to its availability on the market. The TTM is particularly important in markets where products have a limited lifespan due to continuous innovation, such as consumer electronics. The longer the introduction in stores takes, the more potential sales remain. In contrast, the shortest possible time to market gives a competitive edge.

There are no hard guidelines for measuring time to market. The time it takes to create the design for the new product can be included, but it need not be. In some industries, it is common for the time to market to start as soon as the concept for a new product is approved. The end of this period can also vary; sometimes the start of production is assumed, sometimes the time when a product actually hits the shelves.

Preparation for the introduction of a new product can be done in different ways, depending on objectives and opportunities. Some examples:

• Speed of introduction first. This is most common in industries where products follow each other rapidly, but does not always benefit quality.
• Careful planning comes first. Here, speed is secondary to effective planning. An automaker will prefer to delay the introduction of a new model until a major auto show.
• Low cost first. Based on the assumption that time to market is shorter when less budget is available.
• Flexibility first. There is plenty of room for advancing insight. The time to market and deployment of resources is secondary to the end result.

The expected time to market is an important factor in the decision to provide money and personnel for a new project.