Innovation, new product development and why do new products fail?

Topics: Marketing, New product development, Innovation Pages: 11 (3383 words) Published: March 29, 2014
Innovation:
Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as:
the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes:

Technology  strategy
Design thinking skills
Customer needs analysis
Systematic creativity methods
Market and pricing strategy
Design for environmental sustainability
Design of services
Capturing value from innovation
Development process design
Product and service leadership
R&D organization and teams
Managing complex technical projects
The future of design process and culture
The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product.

Meaning of New Product Development:
Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product development (NPD), the discipline is focused on developing systematic methods for guiding all the processes involved in getting a new product to market. New product development (NPD) is the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation,product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new product within the overall strategic process of product life cycle management used to maintain or grow their market share. There are a number of organizations dedicated to supporting product development professionals, such as the Product Development and Management Association (PDMA) and the Product Development Institute (PDI). According to the PDMA, the organization's mission is "to improve the effectiveness of people engaged in developing and managing new products - both new manufactured goods and new services. This mission includes facilitating the generation of new information, helping convert this information into knowledge which is in a usable format, and making this new knowledge broadly available to those who might benefit from it." As we move into the 21st century, new challenges and opportunities are arising driven by global markets, global competition, the global dispersion of engineering talent, and the advent of new information and communication technologies such as electronic mail, the world-wide web, and increased electronic bandwidth. The new vision of product development is that of a highly disaggregated process with people and organizations spread throughout the world. In the late 1980s and early 1990s a marketing focus on product development stressed customer satisfaction. Researchers in marketing believed that the key to success was a better understanding of the voice of the customer and a better ability to link that voice to the engineering decisions that are made in launching a product. Important research during that period included new ways to understand the voice of the customer (Griffin and Hauser 1993), new ways to develop optimal product profiles in the context of competition (Green and Krieger 1989a, 1991), more efficient preference measurements (Srinivasan 1988), and the ability to handle...
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