Critical Factors for the Success of New Products

Only available on StudyMode
  • Download(s) : 50
  • Published : May 7, 2013
Open Document
Text Preview
(big global companies versus small and medium enterprises), etc. However, the problems arise in identifying the system of new product success measures. The point is not in the deficiency of individual measures, but in imprecise definition of the subject of measures as well as in inadequacy of result interpretation. Isolated measures that are not integrated in the system of performance measures of enterprise as a whole, distort the picture of efficiency and effectiveness of enterprise. This is especially related to the new product success evaluation. Attempting to overcome the problem, the different models for valuation have been created. The authors first analyze the critical factors of new product success, especially in condition of expressed connection of different participants in value chain, and, after that, they point out some problems in selection of new product success measures.

New Product: Success or Failure

The experiences of a large number of enterprises show that the failure in product development, particularly related to the products representing the basis for the creation of a whole range of other, so-called product platforms, originates from the phase of the product concept definition. The risk is more pronounced in the cases of developing the products that should create the needs of consumers. In such circumstances, when completely new products of high risk are created, technological and marketing uncertainties have to be studied in order to reduce or eliminate the risk of their implementation. The enterprises that are successful in this field are characterized by the management through projects, which enables successful management of each individual project and a network of projects within the enterprise, of interactions and relations among different projects and of the relationships with the environment. The surveys of the practices of successful companies suggest that adequate approaches (methods and techniques) in the product creation and development should be selected in the conditions of abrupt technology and market changes. Different approaches may be applied.

Problems of Measuring Success of a New Product

• Creates a clear product course map of the enterprise where the managers, regardless of their functional location, understand the significance of the product for the enterprise. Product maps help in defining key priorities, in timely decision-making and in defining the products that shall represent the grounds for further development. This enables not only the improvement of final products but also the elimination of the lost efforts that divert the enterprise from more important activities. The product maps, as well as the processes that create them, are the central parts of the total product development process;

• Develops the product strategy "without voids". Successful firms create a multitude of products in order to fill up the appearing voids in the market and satisfy new needs of their consumers. By studying the consumers and their purchasing motives, new market opportunities are identified and competition is neutralized; • Collects and uses valid information from the market and cooperates in particular with consumers and suppliers. The product creation process includes consumers-innovators, who are the first to accept the product and who appear in the role of referential groups, which facilitates not only a full satisfaction of consumers but enables the realization of the desired enterprise performances.

CRITICAL FACTORS OF THE SUCCESS OF NEW PRODUCTS

A significant issue related to the success of managing a new product development project is the identification of critical factors of success. This is the basis of their selection, determination of priorities and allocation of resources, starting from the characteristics of the new product project, major competencies of the enterprise and features of the market...
tracking img