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Chapter 1 Importance of new products (Product Development P11 (NPI team is…
Chapter 1 Importance of new products
radical innovation critical to future growth
critical to firm growth
When a product fails it can attract a lot of attention
important to screen out bad ideas early in the process
need to understnad the market otherwise
Product Development P11
NPI team is cross functional
requires strong collaboration and communication skills
need to think like a gerneral manager
biggest challenge is how to develop and market products
need to be creative and try new things
use Heuristics or simple intuition as fast decision making is imperative
reasons product fail
underfunds R&D
Dont understand the market
QA issues
firms invest in new products because
helps maintains healthy margins. little product differenciation leads to price wars
sucess of new product dies more good for a firm than anything else
Best practices to successful product development
market research
creativity sessions
trade off analysis
concept testing
alpha/beta testing
voice of customer
test market
global market and operations stratgies
leverage lower wages in talent rich countries (india _ China
presuing a global product stratgy makes sense to manufacture element in high growth countries
explore ousourcing and stratgic alliences
firms with global innovation culture have most efffecive global new product program
portfolio analysis for product selection
gather inputs from crowd sourcing and online communities
formal process to select which concepts to develop
effective team support tools an team incentives
process innovation applies to functions - specifically manufacturing
product innovation - total operation by which a new product is created and marketed and includes innovation in all functional processes
What is a new product P14
New to world
require consumer learning
higher risk must be accepted by entire firm
new to firm
risks being a "me too"
product line expansion
improvements and revisions
repositionings
cost reduction