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Ballard Medical Products, with sales of about $10 million in 1987, set a strategy to develop and dominate niches that big companies neglected, and to do so by prolific new-product innovation.

The first premise at Ballard, as described in an Inc. magazine article, is that customers themselves are an integral part of the product innovation process. The second premise is that salespeople—people actually out dealing directly with customers—are also part of the process. Salespeople are expected to go on-site and interact directly with the customer as he goes about his activities. A salesman for Ballard described:

You can’t just ask the director of respiratory therapy or the head nurse if there are problems. You’ve got to walk through yourself . . . and ask the nurses whether they’ve got problems.

The third premise at Ballard is that R&D must respond to product ideas from salespeople. In one instance, the vice president of sales proposed his own product idea, helped design it, and worked with R&D to get it out the door. The entire product innovation cycle—from concept to delivery— was only a few months.