As part of TÜV SÜD's Innovation Excellence program, we're taking a look behind the scenes of our most exciting recent innovations. We’ll dive into questions such as how an idea becomes a success and what role using the right process plays in this.
Horst Draudt kicks things off with a very relevant topic: he and his team have developed a product for the booming bike market.
The e-bike boom as an opportunity
A promising product for a growth market
Just leave your home on any given sunny day and you will see them everywhere: Eleven million e-bikes rode through Germany’s streets last year – and the trend is moving towards second as well as third e-bikes. For the first time, more people are buying bikes with rechargeable batteries than those without. Owners are willing to pay for this more convenient way of getting around: the average price of an e-bike is a whopping 2,950 euros, while the non-motorized alternative is available for an average of 470 euros. Damages are even more expensive: “In the case of e-bikes, we are talking about repair values of up to 15,000 euros in extreme cases. This is where real value comes into the market,” says Horst Draudt, project manager of the innovation project ‘Bike business segment development’ and the first product, ‘Bike damage management’.
Partner for bike retailers
TÜV SÜD as one-stop-shop for damage claims management
To make sure that we at TÜV SÜD can benefit from this boom, Draudt and his team of five have developed a comprehensive service package.
Their slogan is:
TÜV SÜD takes care of the entire claims management process – from documentation and expert reports to communication with the insurance companies. “Our customers can concentrate on the important things: repairs and making their customers happy. While we take care of everything else,” says Draudt, describing the service.
Innovation through structure
Product development in line with the market
At the beginning of 2023, the project started on a blank sheet of paper. “Even though the concept of claims management is, of course, not new to us, a more structured, available product for bikes did not yet exist,” recalls Draudt. The team spent three months researching the market, talking to distributors, insurance companies and other market players. This phase was crucial for identifying untapped potential and developing ideas. The project went into implementation in the summer of 2023 – and unfortunately was just finished at the end of the season. “However, we used the waiting time for branding and the benefit argument,” explains Draudt, emphasizing, “The structured innovation process has fully proven itself. It's the only way to develop in line with the market.”
A well-rounded solution
Digitization and sustainability matter
“What distinguishes our product from that of our competitors is that we have a different approach and provide our employees with very precise training,” explains Draudt. “A bicycle appraisal is not comparable to one for cars. The terminology and materials are different, and the speed of innovation in the bike sector is currently enormous. This requires a certain level of expertise about bikes to be able to communicate with retailers on equal terms.” The team currently expects a maximum of 200 experts to be in the field in the near future. Another new feature of our product is the digital file, in which all processes are documented for use in court, as well as sustainable bike shipping in case the distance between the retailer and the expert is too far. “We have made the service a well-rounded one,” summarizes Draudt.
Heading down the path of success
Careful planning contributes to commercial success
The results speak for themselves: the project already generated six-figure sales in the company’s first fiscal year of 2024. “We calculated what was recorded on a monthly basis,” reports Draudt. Consistent resource planning was an important success factor. “As an external project manager, I was able to completely focus on the topic, which was worth its weight in gold,” says Draudt. The 60-year-old not only has expertise, but also a passion for mobility and, above all, bikes. Added to this was the support from management, which gave the team enough time for product development and market research.
Challenges and lessons learned
Tackling internal and external marketing
It didn’t all go smoothly, of course. The direct marketing campaign was only partially effective with the dealers contacted. “That was an experiment that we learned from,” says Draudt. There were also internal challenges: “TÜV SÜD is big, so not everyone immediately knows what we do.” That’s why the team relies on targeted communication. “We want to get into the hearts and minds of our colleagues,” emphasizes Draudt.
A glimpse into the future
More opportunities to grow
The team has ambitious plans to get into the hearts and minds of the bicycle industry as well. “We will be organizing more local events, the so-called damage forums, targeting new B2B target groups, developing additional products and establishing new sales channels,” explains Draudt. A webinar is already being planned to attract more retailers. The team is also considering how experts can become even more involved – perhaps even by getting on a bike themselves. “The bike business segment still has a lot of potential!” exclaims Horst Draudt.
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