Chap 3: Developing new products Flashcards
Category of new products according to the managerial perspective
newness to the company ; newness to market
Category of new products according to the consumers’ perspective
Continuous —- Dynamically continuous — Discontinuous
Pressures and spurs to innovation (Hooley, Saunders and Piercy, 2004).
- Intense competition
- New customer targets
- Changing customer needs
- Shorter product life-cycles
- New assets and capabilities
- Exploit new technology
Reasons for new product success
- Unique, superior product
- Well-defined product concept
- Technological marketing synergy
- Quality of execution in all stages
- Products designed with other countries and a global perspective
Reasons for new product failure
Ignored MR, overestimated of market size, poor design or ineffectual performance; incorrect positioning, advertising or price; insufficient distribution support; competitive competitors, inadequate ROI
How to overcome NPD challenges
- The development and maintenance of an innovative culture in the organisation
- Effective organisational arrangements for managing NPD: Budget and Product managers/Innovation catalysts/New product department
- Sound management of the various activities
involved in the NPD process
Manage NPD process
Generating new ideas»_space; Idea screening»_space; Develop and test concept»_space; Marketing strategy»_space; Business analysis»_space; Product development»_space; Market testing»_space; Commercialization
How to innovate the customers
- Outside-in innovations: change the roles of users, payers, buyers
- Inside-out innovations:
+ Smart offerings: offering skills and knowledge
+ Value integration: change the role of companies and customers
+ Reconfiguring the value constellation: interplay among multiple participants to co-create value
