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Numerous innovations fail. There are many reasons for this. Unfortunately, however, they are only known when a great deal of work, money and effort has already gone into the invention. However, if LEAD Users are involved in the development process, the risk of failure is greatly reduced. This is shown by studies, practice and many successful inventions that users have helped to think up and implement. But what is a LEAD User?

LEAD Users act out of self-interest

LEAD Users are advanced users or users who deal with a problem very intensively even in a certain area. The term was coined by the economist and professor at the MIT Sloan School of ManagementEric von Hippel, in the late 1980s. Hippel discovered at the time that it wasn't the manufacturers themselves, but the users who were responsible for important innovations. According to Eric von Hippel, each LEAD User has two characteristics:

  • LEAD Users already have needs or requirements that other market participants, such as early adopters, will have some time later.
  • LEAD Users benefit greatly from an innovation. Some of them are already working on it themselves.

LEAD Users can be individuals, experts, companies or organizations. But do not confuse LEAD Users with pilot customers or beta users. They take a closer look at existing developments in order to improve the final result. LEAD Users, on the other hand, are used much earlier in the innovation process and make a much more important contribution: they design the innovation together with a manufacturer or in some cases autonomously at all.

Handbook LEAD User Method


Varnishing instead of typing again

Bette Nesmith Graham is a good example of this. In the 1950s, after her divorce, she worked for Texas Bank and Trust as a secretary to support herself and her son Michael. That was when the first electric typewriters came onto the market, and Mrs. Nesmith Graham had her problems with them. Because the keystroke was much smoother than with the mechanical devices, it made a lot of typos. Unfortunately, erasing didn't work without ugly marks on the paper either. Bette Nesmith therefore independently mixed a paper-coloured varnish and applied it whenever she made another typing mistake. She could then type over the dried liquid instead of writing the entire document again completely. Bette Nesmith Graham called her invention "Mistake Out" and wanted to sell it to IBM. But the company shows no interest. After all, thanks to its innovation, now patented under the name "Liquid Paper", it was able to stay afloat after the bank was terminated in 1958. In 1979, Gillette Corporation bought Liquid Paper Corporation for nearly $48 million.

Tinkering is a popular sport

Mrs. Nesmith Graham may be an individual case with her business success. However, fiddling to improve equipment is a mass phenomenon. Eric von Hippel proved this in a study he conducted among almost 1200 British consumers in 2010. As a result, over six percent of consumers invest time and money to improve existing equipment. These expenditures add up to a sum that is almost one and a half times greater than the total investment that the British economy spends on innovation each year. The desire to invent is therefore a popular sport.


Invented by users: Mountain bike, WorldWideWeb and Gatorade

On closer inspection, many innovations turn out to be inventions made by users and not by the development departments of companies. Here are some prominent examples:

  1. The mountain bike was invented by a group of young hippies who risked their heads and collars for a little glory in sunny California at notorious repack races. Gary Fisher, Charles Kelly, Joe Breeze and Tom Ritchey developed the first mountain bikes from the sports bikes from the 1930s with their heavy steel frames, thick tires and ineffective drum brakes. In 1981 Specialized was the first manufacturer to start series production (Stumpjumper model).
  2. The World Wide Web is also the development of a user: Tim Berners Lee solved a problem of his employer, the European Organization for Nuclear Research (CERN): Part of the laboratories are located on French territory, another part on Swiss territory, each with different network infrastructures. This made the exchange of information extremely difficult. Berners Lee then developed the page description language HTML, the transfer protocol HTTP, the URL and the first web browser and web server. This package allows the worldwide exchange of information between sciences. This solved the communication problems between the CERN laboratories - and laid the foundation for the Word Wide Web.
  3. The sports drink Gatorade is also an invention of users. In the mid-60s, the fitness of some players on the Florida University American football team, the Florida Gators, suffered so much from the heat that the co-coach asked some university doctors for help. They found that electrolytes and carbohydrates, which the athletes had lost through sweating, were inadequately replaced. The scientists then mixed a drink called Gatorade to make up for this deficiency - and behold, the Florida Gators even won the Gator Bowl in 1969.


Conclusion - Definition: What is a LEAD User?

Many companies still assume that only they alone develop the best innovations and bring them to market maturity. Market researchers identify needs and engineers develop products to meet these needs. As Eric von Hippel points out in an interview with the German business magazine "brand eins", three quarters of inventions made in this traditional way end up as a flop. The scientist literally says: "Manufacturers may have outstanding technical expertise, but lead users have outstanding needs that motivate them to look for suitable solutions. The underlying method is called the LEAD User Method. LEAD Users can also be extremely valuable for your business. Why exactly, you can read in this blog post

Photo by Austin Distel, Unsplash. 

Qmarkets’ software has been chosen by LEAD Innovation Management GmbH to support a groundbreaking initiative – designed to leverage the collective wisdom of global businesses against the challenges posed by the COVID-19 pandemic. 

LEAD Innovation Management - an acclaimed Austrian firm specializing in corporate innovation - have transformed their extensive LEAD user network into a digital crowdsourcing platform using Qmarkets’ software. Named ‘LEAD Proactive’, this platform serves as a hub in which companies can detail problems they are facing due to the COVID-19 crisis, and contribute ideas to help other companies overcome their unique challenges.

LEAD Proactive makes use of Qmarkets’ extensive idea collaboration and co-creation features. Once a company submits a challenge, it is open for other users from relevant companies to brainstorm around it and contribute potential solutions - adding comments and attachments (documents, videos, images, etc.) where required. The platform is available to businesses across all sectors and implements the best-practice methodologies of both Qmarkets and LEAD Innovation Management.

To provide rapid and comprehensive support to as many businesses as possible during this trying time, we knew we’d need a cutting-edge innovation management platform, and this is why we chose Qmarkets.” said Michael Putz, Founder of LEAD Innovation Management. “The automated idea transition capabilities, task management options, and advanced reporting features enabled us to deliver an outstanding system. We’re confident that LEAD Proactive will serve as an invaluable weapon that enterprises can wield against the manifold difficulties caused by the disruption we’re all facing.”

The LEAD Proactive initiative has been launched on an entirely ‘pro-bono’ basis. Its exclusive aim is to help companies gain access to the expertise and innovative creativity of the global ecosystem. Already, the LEAD user network has given rise to a potential turnkey solution in Austria for drive-in COVID-19 testing stations. It is predicted that, if this solution is actualized, 57,000 tests could be carried out per day in supermarket parking lots throughout the country - potentially saving thousands of lives. 

“We’re very proud to assist our Austrian partners in their efforts to support global businesses at this uncertain time.” said Noam Danon, Qmarkets’ CEO and Founder. “We have already seen some very encouraging outcomes from our customers during this crisis, so we’re excited to see what happens when the door is opened to facilitate collaboration.

About LEAD Innovation Management GmbH
The company was founded in 2003 unter the name "LEAD User Network" as a spin-off from the Vienna Univerisity of Economics and Business Administration. LEAD Innovation Management is the first provider of the LEAD User Method in the German-speaking world. Just two years after its foundation, LEAD Innovation Management was transformed into a limited liability company. Continous competence and branch expansion enabled the company to have an international network at its disposal - which creates ideas and innovations in cooperation with respective clients and successfully launches them on the market. 

LEAD Innovation Management’s team of experienced employees assist major companies from all industries, supporting them in everything from structuring and planning projects, to inventing and marketing innovations.

About Qmarkets

Qmarkets is an established leader in the field of idea and innovation management, offering solutions to enable enterprises around the world leverage the wisdom of the crowd. The flexible software provided by Qmarkets is designed to help clients manage their innovation processes from end to end, as well as locate, analyze, and implement groundbreaking ideas effectively.

Qmarkets has developed a reputation over the last 10 years for delivering one of the most comprehensive crowdsourcing software solutions in the world. Recognized by leading analysts such as Gartner, Forrester, MWD Advisors and Info-tech, Qmarkets offers unmatched technical and design flexibility to their extensive list of leading global clients; including Nestle, Ford, Lufthansa, Ab InBev, Philip Morris International, Bridgestone, and many more.

Qmarkets’ software offering extends beyond innovation management to include products focusing on process improvement, continuous improvement and operational excellence; open innovation with customers and business partners; technology scouting for enterprise M&A opportunities; and digital employee engagement.

The innovation management solutions offered by Qmarkets are completed by a commitment to customer success. This is shown by Qmarkets’ global team, and supported through best-practices, workshops, training, professional services, and more.

Most new ideas do not lead to successful products or services. 60 to 80 percent fail on the market. Read here which ten criteria make a product innovation successful.

1. Relevant customer benefit

Is the innovation relevant for the customer?

In order to be successful, an innovation must satisfy a customer need. Innovations often don't bring the desired success because they don't bring real benefits to the customer or are aimed at the wrong target group. Lego's crowd-based business model is a vivid example of how customer needs can be optimally addressed by involving Lego customers in the innovation process.

On the other hand, the BIC Women's Underwear - an underwear for women that is disposed of after use - was an absolute miss on the theme. The BIC perfume also flopped. And the ready-to-serve menus from toothpaste manufacturer COLGATE also failed to win over customers.

An example of the choice of the wrong target group is the whirlpool, which was developed by the Jacuzzi brothers in the 1950s. They initially marketed the innovative pool unsuccessfully to arthritis sufferers. The business only blossomed when they changed the target group and began to sell the whirlpool as a luxury good to the wealthy.


2. Relevant differentiation from the competition

Is your solution superior in one relevant aspect?

An innovation must differentiate itself from the competition and be distinguished by at least one unique feature. This differentiating feature should be highly relevant for the user and should be able to be maintained in the long term.

The battle between Apple and Microsoft over the music player market is an example of a failed differentiation strategy on the part of Microsoft. Microsoft's response to Apple's iPod with the Zune Player ended with one of the biggest tech flops of recent years. The first Zune was released in 2006, five years after the iPod. Although the device had some features that the iPod did not have (e.g. sharing from player to player), it was still not able to assert itself on the market. Apparently, these differentiating features were not so attractive for users that they switched to Microsoft.

The Zune HD was then launched in 2009 - two years after the sale of the iPod Touch. At that time, the iPod was already the de-facto digital entertainment device of the world. To beat it, Microsoft would have had to offer something that made Apple's device look pathetically old-fashioned. Microsoft didn't do that - the only difference was the design.

Product Folder LEAD User Products


3. Acceptance and explainability of the product innovation

Can you simply explain the product benefits and its uniqueness to customers?

Sometimes a product innovation puts conventional customer ideas into question to such an extent that they do not recognize their benefits. When the first supermarket opened in Germany in the 1930s, it soon had to close its doors again. One of the most important reasons: The self-service principle was simply not accepted by customers. Another two decades were to pass before supermarkets were able to establish themselves in Germany. The same happened with the first ATM, which was also installed in a New York bank branch in the 1930s. It was also dismantled after a few months due to a lack of customer acceptance and it still took decades until ATMs were established.

If new developments from customers require a major rethink, it can be useful to prepare the target group for the market launch with an information campaign. Another possibility would be to combine the innovation with the old version.


4. Easy to test

Is it easy for the customer to try the product and experience the benefits?

The Segway, for example, was originally designed for the masses and sold by the makers as the "future" of one-man passenger transport. But due to its complicated operation and need for explanation, the vehicle is neither easy to test nor suitable for the masses.


5. Easy to change

Is it easy for the customer to switch to your product without risk and effort?

To stick to the example of the Segway: Until today there is no suitable infrastructure. There is no suitable power supply and the Segway is not in good hands both on sidewalks and on roads. In addition, there are target groups, such as pensioners, for whom the Segway is unsuitable because driving the Segway is too risky. Segway ultimately flopped because the company hadn't thought about an appropriate distribution strategy or infrastructure.


6. Legal framework

Do you get into legal conflicts (laws, norms, patents) or ethnic conflicts (values) with product innovation?

In 2006, an American beverage company came into conflict with the law that introduced the energy drink "Cocaine" with three times the caffeine content of Red Bull. Shortly after the launch, the product was taken off the shelves by the FDA due to the glorification of an illegal drug and the high caffeine content. Meanwhile, the drink is available again in an adapted form.

The market launch of Segway also failed at the beginning due to the legal framework, as the Segway was not approved for road use and could not be used on sidewalks. Even today, there are still no uniform regulations in many countries, and special permits are often required. This of course hampers distribution enormously.


7. Earnings prospects of product innovation

Does product innovation have the necessary potential for sales and profit?

Many successful new developments often take years after market launch to mature and offer attractive value for money. New technologies should also be taken into account when assessing revenue prospects to prevent a newly introduced product from being displaced by a new technology.

The APS cameras are a classic example of this. Launched in the mid-1990s by leading camera and film manufacturers, they were significantly better than traditional 35 mm cameras. But just a few years later, APS technology was largely replaced by digital photography.

In some cases, however, improved versions can be worthwhile. The company Freeplay Energy, for example, produces a world receiver with crank dynamo even in the age of Internet and satellite communication. The spectrum of customers in this niche market ranges from survival enthusiasts to development aid organizations.


8. Integration into existing product portfolio

Can the product be launched without directly competing with your existing product portfolio?

The introduction of innovative products to the market increases the risk that they will be at the expense of existing products. Brand cannibalization can cost margins and reduce the value of the company. Cannibalization should therefore normally be avoided. However, there are also advocates of "preventive cannibalization". The decisive factor here is how cannibalization affects total revenues.

In this context, the saying of Steve Jobs, who said during the i-Phone introduction: "If you don't cannibalize yourself, then someone else will do it", is well known. At the time, the iPod was growing steadily, generating 50 percent of Apple's revenue. Jobs brought the iPhone to market, although he knew that it would massively cannibalize the iPod business and eventually displace it completely.


9. Brand fit

Does the product innovation fit your brand positioning and values?

Harley Davidson landed a huge flop when it launched aftershaves and perfumes in 1994. The company's brand is built on values such as masculinity, machismo and rebellion. As a result, many fans have found that Harley Davidson's perfumes have clearly spanned the globe.


10. Practicability

Do you have the necessary resources to technically implement and market the product innovation?

You may need to bring on board partners for technical development (technologies, competencies, means of production) or you may need sales partners to successfully position a product innovation on the market (suitable sales channels, no barriers to market entry).

Numerous innovations fail due to a lack of cooperation between important business partners, on whom the success of an innovation depends. When Robert Chesebrough invented Vaseline in the second half of the 19th century, he tried unsuccessfully to win pharmacies as distribution partners. Only when Chesebrough decided to distribute his invention to the public did he achieve his breakthrough.

In another example, the run-flat tyres were not able to assert themselves on the market a few years ago, although they offered more safety. An important reason for this was that the garages lacked the necessary equipment to mount the tyres correctly.


Conclusion: Success factors for product innovation

These criteria are always applicable when you are dealing with innovation and want to evaluate the attractiveness of a new product concept. Go through the list as soon as a new idea pops up or discuss it with colleagues in order to arrive at an initial assessment. To find out which other factors are decisive for successful innovation, read our article "5 factors to avoid innovation flops".

If you’re not failing every now and again, it’s a sign you’re not doing anything.

Woody Allen

This article was first published at www.lead-innovation.com, Photo by James Pond on Unsplash.

Prototyping describes the development of early, tangibile models of ideas that can be tested with the customer. We present a list of the nine most commonly used methods for creating and testing prototypes.


Sketches and diagrams

Sketches are suitable for the early stages of the prototyping process to illustrate ideas and transfer them into the real world. Even simple illustrations provide a good basis for further discussion with team members and creating new ideas. You can also sketch diagrams and mind maps to illustrate a system, process, or structure of ideas. Diagrams are a useful way to understand complex situations or use cases where many factors and actors influence each other. They can represent points of contact that affect the customer journey. Alternatively, you can visualize and analyze how ideas interact and complement each other (or perhaps even compete with each other).

skizzen prototyping firmBee via pixabay

Source: firmBee via Pixabay, CC0



The storyboarding technique can be used for early prototyping to visualize the customer journey or the way users would experience a problem or a product. When drawing storyboards, you try to imagine the entire user experience and capture it in a series of images or sketches. Storyboarding as a prototyping method ensures that you know the users well enough (otherwise it would be difficult to sketch a storyboard) and allows you to consider the context of the designed solution. It is useful for developing a sensitive understanding of users and generating high-level ideas and discussions. Storyboards, however, are not suitable for fine-tuning the details of products.


Role Play

Role play is a method of capturing and expressing the emotional experience of users when using a product or service. By replaying scenes and situations, the team can get a better feel for how the experience actually feels and where improvements are needed. Role plays can be used at different levels of detail. However, the best results are achieved when simulating the user's physical environment. For example, you can create props or play a soundtrack that mimics the user's environment. The method can also be very well combined with storyboarding to capture individual scenes and insights.

Paper Prototyping

For digital products such as apps, web services or other screen-based products, paper prototypes are practical in the early stages of prototyping. The method is very simple, cost-effective, and reveals many areas for improvement, such as usability issues. According to Jakob Nielsen, co-founder of the user experience consulting firm Nielsen Norman Group, usability studies show that early stage changes are about 100 times cheaper than changes in later stages of a product development process.

samuel mann papierprototyp

Picture: Samuel Mann, CC BY 2.0



Mockups are simple visual representations created primarily for presentation purposes. They are demonstration models that look like a finished product at first glance, but have no significant functionalities. Physical products can be a miniature model or a life-size model, showing the entire product or just a focus, depending on their intended use. With digital products, the mockup shows the graphic design, i.e. the "look and feel" of the application.


Wire Frames

Wire frames are prototypes that relate to the structural aspects of the user interface of a digital product. They define the positioning of the various interaction elements as well as the functional processes of a feature or application. Wire frames are the skeleton of a user interface that remains when colors, graphics, and design elements are removed. For the creation, one can work with paper and pen or use special software programs such as Sketch, Balsamiq or Proto.io.


Picture: Michael Heraghty, userjourneys.com


Cardboard Prototyping

One method that is very popular in design thinking projects for the visualization of physical products is cardboards. Using cardboard, wood or other materials, simple three-dimensional models of the product are created. With this method you can experiment generously with different models and show them to the customer right away.

noah posner cardboard 3d printer

Picture: Cardboard of a Desktop 3D-printer from Noah Posner, Research Scientist Imagine Lab,  Atlanta, GA, USA


Prototyping with explanatory videos

With an explanatory video as a minimum viable product, a product can be clearly explained in simple words and thus presented to a wide audience - without this product already existing in its final form. Dropbox has demonstrated how this can work. In the beginning, the service consisted only of a test version with minimal functions. A video which conveyed the advantages of the file sharing service in a short and original way increased the number of registrations overnight to 75,000. And this despite the fact that the actual software solution did not yet exist.



Wizard of Oz Prototyping - Fake it before you make it

Wizard of Oz prototypes are prototypes with fake functions. They imitate aspects of a product such as interactivity, saving time and resources. The best known example of Wizard of Oz prototypes is the prototype of a digital system where the user believes that the system reactions are computer-controlled, although they are actually controlled by humans.

A famous example of this method is the e-commerce champion Zappos. The company started in 1999 with a Wizard of Oz MVP to test whether shoes are ever bought online. A fake website featured photos of shoes previously taken in local specialty stores. If a customer ordered a shoe, the founders bought the pair in the respective shoe store and sent it to the customer by mail.


Picture: Zappos Online Shop-Attrappe, um Hypothesen zu testen und das Kundenverhalten zu erforschen (Quelle: Archive.org)


Another example of Wizard of Prototyping is IBM's Speech-to-Text experiment. Since there was no prototype at that time and the company did not want to make high investments in its development, the function was imitated in a fake experiment. For this purpose, test persons were allowed to speak into a microphone and all their speech inputs appeared almost in real time on a monitor - but not through a "Speech to Text" function, but because someone in the next room entered the speech inputs directly into the computer. IBM took the experience from the experiment and developed the "Speech to Text" function based on it, but with significantly fewer resources than initially estimated.

Wizard of Oz Prototyping can also be applied to physical products and services. For example, in its founding years, when the company was only active in Germany, Sixt placed a newspaper ad in a French newspaper to test the market. As a result, numerous French people actually booked a vehicle. The cars were then transferred by students from Germany to France in order to serve the inquiries of the customers.


Conclusion: Prototyping: 9 successful methods and best practices

Prototyping begins with rough, fast, and cost-effective models at an early stage of a design process or design thinking project and evolves in iterative loops to higher accuracy models that are more complex, detailed, and costly. The methods presented provide valuable early insights into target audiences and can be used to test ideas and assumptions, to gain a sensitive understanding of users, or to help the project team select competing ideas.

This article was first published at www.lead-innovation.com, Photo by Amélie Mourichon on Unsplash.

<h1>One-day online training to learn creativity techniques, generate ideas and design workshops</h1> <p>Planning and conducting innovation workshops is the basis for new ideas that are later developed into products, processes or business models. If you are looking for a solution to a specific problem or a new product, you are well advised to use the appropriate creativity methods. In workshops, the participants focus on content, collect as many ideas as possible and want to filter out the best ideas. Moderating these workshops and meetings is part of the daily routine of many managers in projects and lines.</p> <p>
In this online training, participants actively devote themselves to learning creativity techniques and learn not only how to generate ideas, but also how to evaluate them correctly and select them for further processing. They also receive valuable tips on how to moderate and design creativity workshops. Your benefit: Also learn how to best apply and technically implement these methods and techniques in online workshops.</p> <h2>YOUR TRAINER:</h2> Julian Eberling, Innovation Manager
Born in Vienna. Graduated from the commercial academy Vöcklabruck in Upper Austria. For a non-profit project in Kenya he was active as project manager and lecturer. At Management Center Innsbruck and Stellenbosch University in South Africa he studied Management, Communication & IT and gained first practical experience with process and business model innovation. After his studies he was responsible for New Business Development at an Austrian IT system house. Since 2018 "Certified Service Design Thinker" he has been pursuing his passion as an Innovation Manager at LEAD Innovation. <h2>AGENDA:</h2> <h4>Warm-up & introduction to the topic</h4>
  • Intro
  • Theory: Creativity in the company
  • Creativity techniques: Generating ideas
    • Blindstorming
    • Nagging & Perfect Solution
    • Intergalactic Thinking
    • Inspiration through Color
    • Stimulating Questions
    • Headstand Technique
    • Semantic Intuition
  • <p>Further creativity methods can be found in our free manual, which is included in this training.</p>
<h4>Idea evaluation: Select ideas</h4>
  • <p>Theory: the perfect pitch of an idea and methods for evaluating ideas</p>
  • <p>Test valuation methods interactively</p>
<h4>Workshop planning: Development of a workshop concept</h4>
  • <p>Building an agenda</p>
  • <p>Moderation: Tips & Tricks</p>
<h2>DATE:</h2> <p>11th of May 2020, 9 a.m. - 5 p.m.</p> <p>If the date is not feasible for you, we are happy to provide you with the recordings of the online training courses and answer your questions afterwards.</p> <h2>EXECUTION: </h2> <p>This online training is conducted via Microsoft teams. You do not need a Microsoft license. The following things are required to participate:</p>
  • Stable internet connection
  • Valid email address
  • Laptop/PC/Tablet/Smartphone
  • Camera
  • Microphone
  • Activation of a Trello account (information will be sent to you by e-mail)
<h2>PARTICIPATION FEE:</h2> <p>EUR 340,- excl. VAT, including seminar documents and seminar certificate.</p> <h2>WHO SHOULD ATTEND THIS TRAINING?</h2> <p>This training is intended for persons who </p>
  • <p>want to learn creativity techniques,</p>
  • <p>want to generate and evaluate numerous ideas,</p>
  • <p>Design and moderate workshops and meetings,</p>
  • <p>want to filter the best ideas with few resources,</p>
  • <p>want to learn the right moderation in the company in project and line.</p>
<h2>THIS IS WHAT OUR PARTICIPANTS SAY ABOUT THE TRAINING:</h2> <blockquote> <p>"During this seminar we got to know 12 creativity techniques and practiced them with practical examples. It was very inspiring and exciting to combine these techniques. Very good moderation with valuable suggestions for my daily work!"</p> <p>Holger Bienerth, Corporate Innovation Development, Wacker Chemie AG</p> </blockquote> For registration please go here. 
It is becoming increasingly clear that the COVID-19 pandemic will result in one of the most disruptive economic episodes of our generation. Innovation management software provides one of the most effective ways to tackle disruption, but only if you use it correctly. This Q&A session with Qmarkets’ VP Product (Sivan Leshem), and Head of Customer Success (Ilona Gochman), will help you to understand how you can leverage the wisdom of your crowd against the challenges posed by this crisis.

Register for this webinar to gain:
  • First-hand best practices to inspire you to fight disruption with disruption through innovation management
  • Guidance and suggestions for the technical use of your system
  • An opportunity to ask any questions and express any concerns you might have in an open forum
At this time innovation is more important than ever, so be sure to join this webinar and see how your company can benefit.

Register now!

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