M1S1 Flashcards
Why study new products?
it is a big business - billion dollars annually on technical development alone.
is describes as a totally new product categories.
Radical innovation
viewed by Gary Hamel as “the most important business issue of all time”
Radical Innovation
according to the industrial research institute…
Accelerating innovation and business growth through innovation are the top business challenge.
Although you may hear much higher percentages, careful studies supported by research evidence suggest that about “___________” of new products fail
40%
For every “_______”
Fewer than “__________” make it through initial screening
Fewer than “___________” pass concept evaluation and testing
A little more than “_______” make it through development
About “_______” make it through testing
“________” of these 25 are successful
- 100
- 70
- 50
- 30
- 30
- 25
Remember:
-Top firms deploy over 50% of their R&D spending in foreign countries.
-global product teams allow firms to leverage their new product skills across their subsidiaries.
-Difficulties: coordinating the efforts across multiple countries to launch a successful new product
being aware of differences in business and cultural environments and being open to global markets.
Global Innovation culture
are developed globally in the firm’s 22 research centers located in 13 countries. Market and testing of the swifter occurred in the U.S and France.
Proctor and Gamble products
did product design and customer requirement definition in the U.S and Japan in developing the iPod.
Apple
identifies unmet customer needs and commissions in-house and outsourced designers to compete for design.
Ikea
the new product team is a “______________” with personnel from marketing, R&D, engineering, manufacturing, production, design and other areas.
Cross-functional team
Remember:
All members of the team make a contribution to the new products process and the success of the team depends on how well they interact.
try to avoid narrow functional viewpoints and stereotypes
What is a new product? (6)
- New-to-the-world
- New-to-the-firm
- Additions to existing product lines
- improvements and revisions to existing products
- repositioning
- cost reduction
Inventions that create a whole new market.
New-to-the-world
Products that take a firm into a category new to it.
New-to-the-firms
Line extensions and flankers that flesh out the product line in current markets.
Additions to existing product lines.
Current products made better.
Improvements and revisions to existing product lines
Products that are retargeted for a new use or application. Also includes retargeting to new users or new target markets.
Repositioning
New products that provide the customer similar performance but at a lower cost.
Cost reduction
The basic new product process (5)
1, Opportunity identification
2. Concept generation
3. Concept/Project evaluation
4. Development
5. Launch
this is a “conditional go” so as not to slow down the process in analysis
Fuzzy gate
the Go decision is made but no financial support is provided
Hollow gates
This is a flexible interpretation of the basic process, which allows overlapping phases and fuzzy gates.
Third-Generation process.
