New Product Development
Contents
Introduction 2
Business Strategy 3
Market Penetration 3
Market Development 4
Product Development 4
Diversification 4
From Strategy to Implementation 5
Stage-Gate Product Innovation Process 7
Stage 0: Idea Generation 7
Stage 1: Scoping 7
Stage 2: Project Evaluation 7
Stage 3: Development 8
Stage 4: Testing and Validation 8
Stage 5: Launch 8
Conclusion 10
Bibliography 11
Introduction
In order to sustain growth and compete in today’s ever-changing business environment, organisations must continue to develop commercially successful products in order to remain ahead of their rivals and retain their market dominance. However, the development of new products from concept to realisation is often challenging, due to organisations being unable to either produce a product that the customer wants or at a price that is profitable. To successfully develop a new product, an organisation should not solely rely on research and development but all departments such as design and engineering, product management, marketing and sales need to operate in tandem to achieve their strategic goal.
The common problem presented to organisations are that “new products and services are exploding onto the scene overnight, while current products are becoming obsolete faster than ever” (Wiley, 1999) and as such, in 2013, the world’s largest electronics company Samsung had a reported annual spend of €14billion for new product development, surpassing their nearest competitor Apple’s $4.5billion expenditure. For technology driven organisations, innovation management and new product development is required to not only to stay competitive, but to actually survive.
Business Strategy
For any organisation deciding to create a new product, they must review their existing business strategy and the possible impact a new product may have on their organisation. Morgan (2001) states that “if you confine someone, tie them down and force them to stick to particular thought patterns, you leave little
Introduction 2
Business Strategy 3
Market Penetration 3
Market Development 4
Product Development 4
Diversification 4
From Strategy to Implementation 5
Stage-Gate Product Innovation Process 7
Stage 0: Idea Generation 7
Stage 1: Scoping 7
Stage 2: Project Evaluation 7
Stage 3: Development 8
Stage 4: Testing and Validation 8
Stage 5: Launch 8
Conclusion 10
Bibliography 11
Introduction
In order to sustain growth and compete in today’s ever-changing business environment, organisations must continue to develop commercially successful products in order to remain ahead of their rivals and retain their market dominance. However, the development of new products from concept to realisation is often challenging, due to organisations being unable to either produce a product that the customer wants or at a price that is profitable. To successfully develop a new product, an organisation should not solely rely on research and development but all departments such as design and engineering, product management, marketing and sales need to operate in tandem to achieve their strategic goal.
The common problem presented to organisations are that “new products and services are exploding onto the scene overnight, while current products are becoming obsolete faster than ever” (Wiley, 1999) and as such, in 2013, the world’s largest electronics company Samsung had a reported annual spend of €14billion for new product development, surpassing their nearest competitor Apple’s $4.5billion expenditure. For technology driven organisations, innovation management and new product development is required to not only to stay competitive, but to actually survive.
Business Strategy
For any organisation deciding to create a new product, they must review their existing business strategy and the possible impact a new product may have on their organisation. Morgan (2001) states that “if you confine someone, tie them down and force them to stick to particular thought patterns, you leave little
Bibliography: Accenture, 2012. Stage Gates Can Kill Innovation. Risk Management Can Fuel It, p. 11. Bryant, T., 2009. Using Kotters ' Theories To Learn How To Implement Change Successfully, s.l.: Pil Networks. Christensen, C. M., 1997. The Innovator 's Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School. Cooper, R. G., 2001. Winning at New Products. 3rd ed. New York: s.n. Cooper, R. G. & Edgett, S. J., 2005. Lean, Rapid and Profitable: New Product Development. Canada: Product Development Institute. Cooper, R. G. & Edgett, S. J., 2009. Product Innovation and Technology Strategy. s.l.:Product Development Institute Inc. Edgett, S. J., Cooper, R. G. & Kleinschmidt, E. J., 2003. Best Practices in Product Innovation: What Distinguishes Top Performers. s.l.:Boston. Empower, 2011. Planning your growth. [Online] Available at: http://empowerstrat.com/2011/01/29/planning-your-growth-with-igor-and-philip/ Harvard Business Essentials, 2003. Managing Creativity and Innovation: Your Mentor and Guide to Doing Business Effectively (Harvard Business Essentials). Boston: s.n. Harvard Business School Press, 2001. Harvard Business Review on Innovation. Boston: Harvard Business School. Jones, T., 1997. New Product Development: An Introduction to a Multifunctional Process. s.l.:Butterworth-Heinemann. Kerzner, H., 2005. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 9th ed. Ohio: John Wiley & Sons, Inc. Morgan, M., 2001. Making Innovation Happen (Creating Success). London: Kogan Page. Project Management Journal, 2013. Agile Project Management: Essentials from the Project Management Journal. Boston: John Wiley & Sons. Shavinina, L. V., 2003. The International Handbook on Innovation. 1st ed. s.l.:Pergamon. Stage Gate, 2014. Stage-Gate. [Online] Available at: http://www.stage-gate.com/resources_stage-gate_full.php Trott, P., 2008. Innovation Management and New Product Development. 4th ed. London: Pearson Education. Wiley, J., 1999. The fast forward MBA in Project Management. New York: John Wiley & Sons, Inc.