what challenges does a company face in developing new products and sercives.pptx

Challenges in

Developing new

products and

services

New Products Options:

Either add new products through acquisition (buy other companies, patents, license from other companies)

Acquisition:

Organic Growth: Development of new products from within.

But, the bitter truth is that fewer than 10% of all new products are truly innovative and new to the world.

Product-launch Challenges:High-tech firms in telecommunications, computers and others face product launch challenges viz..

High Technological uncertainty

Fierce Competition :

High Risk in Investment

Challenges in New-Product Development

1. Continuous Innovation- A Challenge

What could be the solution??

W. L. Gore provided the solution:

1. Work with potential customers

2. Allows employees to choose projects and appoint few product leaders and teams.

3. Gives ‘Dabble Time’ to employees i.e. 10% of working hours developing their own ideas.

4. Promising Ideas are pushed forward and judged according to – Real, Win, Worth?

Is the opportunity real?

Can we win?

Can we make money?

2. New Product Success:

- Established Company focus on Incremental Innovations

- Newer Company Create Disruptive Technology

Minimal Advantage

Moderate average

Superior product

0 20 40 60 80 100 120

New Product Success Rate

Axi

s Ti

tle

98%

58%

18%

Cooper and Klienschmidt found that products designed solely for domestic markets tend to show a high failure rate, low market share, and low growth.

Although, those designed for the world market – or atleast neighboring countries- achieve significantly more profits at home and abroad.

3. New Product failure :

Failure reasons :

Poor Advertisement

Wrong Timing

Recap :

• Various types of new products and ways to create them – Acquisition and Organic Growth.

• Product-launch challenges in high-tech firms in telecommunications.

• Challenges in New product development: 1. The Innovative Imperative 2. The Product Success 3. New product failures and their reasons.

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