successful strategic product development

Developing a partnership for success

Derwent Systems Limited (DSL), based in Cramlington, Northumberland, was established in 1990 and has become one of the UK's leading manufacturers of infra-red (IR) security lighting systems.

DSL are a technically innovative company with in-house expertise in the development of high specification optical systems. In 1991 specialists at DSL designed a unique lens and reflector configuration that offered considerable benefits over existing IR lamps.

However, the company did not have the in-house expertise to deliver this valuable innovation to the market place in the form of a new product. Additionally the finance available within DSL for design and manufacture was minimal. The industrial design resource did not exist within the company and the finance was not available to bring it in.

infra-red security lighting - a twin lamp mount

DSL were lucky enough to meet with a locally based design consultancy, who along with expertise in industrial and packaging design, were able to gain access to venture capital. This combination enabled DSL's concept to be developed to a marketable product at a minimum up front cost and formed the basis for a highly profitable ongoing relationship between the two companies.

Working closely together, the two companies' launched their first design, which became known as the 'Uniflood', in 1993. The design kept tooling costs to a minimum whilst providing a functionally effective, high quality lamp enclosure.

This product gave DSL entry into the market place and allowed the company to develop a market presence and reputation for its unique and valued reflector/lens concept.

By 1995 sales of Uniflood reached significant enough quantities for DSL to commission a development of the first product. At this stage product assembly times had become an important issue. Because of restraints on tooling costs, the original Uniflood was not designed to be assembled at speed. Fortunately, as a direct result of Uniflood's success, the company had developed and more money was available for investment in tooling and refinement of the assembly process.

a single Uniflood unit

DSL's continuing close working relationship with the industrial design firm involved in the original Uniflood enabled the development process to be speeded up considerably. Because of the external design team's familiarity both with the value of the product concept and DSL's market objectives, there was a very short learning curve and the efficiency of direct communication between individuals within the two companies enabled key development issues to be quickly resolved.

New Uniflood was released onto the market in 1996 and quickly reached yearly sales of over 5,000 units.

Having consolidated its market share DSL became concerned with expanding its product range. Miniflood - the latest addition to the Uniflood range - introduced new levels of manufacturing efficiency and product performance.

The initial key to success for DSL was matching the right level of new product development with the available capital. Coupled to a special business relationship with their consultant designers, this enabled them to significantly increase their market penetration.

Their continuing success is due to recognising the need for further development at the right time, making it an integral part of their overall company strategy.

Ask yourself !

Derwent Systems Limited website

Previous Contents Next