CHALENGES IN NEW PRODUCT DEVELOPMENT

Innovation Imperative

Challenge 1

Continuous Innovation is a Necessity …

It..

• Creates positive attitude towards Innovation and risk taking…

It ..

• Routinize the Innovation Process

It..

• Practice Teamwork

It..

• Allow people to experiment or fail.

Companies that do not innovate leave their offerings vulnerable to ..

• Changing Customer Needs and tastes

Companies that do not innovate leave their offerings vulnerable to ..

• New Technologies.

Companies that do not innovate leave their offerings vulnerable to ..

• Increased Domestic And Foreign Market

New Product Success

Challenge 2

Established Companies…

Established Companies…

Incremental Technologies…

Newer Companies…

Newer Companies…

Disruptive Technologies…

What can Established companies do to avoid this trap ?

Monitor Preferences of Customers….

Uncover difficult to articulate needs..

Well defined Product Concept….

Design for World Market….

New ProductFailure

Challenge 3

90%

90%THE % OF FAILED PRODUCTS

IN EUROPE

USA?

50%-95%

WHY?

• Shortage of Important Ideas in Certain areas..

Drawbacks…

• Fragmented Markets…

Drawbacks…

Drawbacks…

• Social, Economic, and Governmental Constraints.

Drawbacks…

• Cost Of Development…

Drawbacks…

• Capital Shortages…

Drawbacks (contd)…

• Shorter Required Development Time…

Drawbacks (contd)…

• Poor Launch Timing….

• Shorter Product Life Cycles…

Drawbacks…

Drawbacks…

• Organisational support…

RECAP

Challenges In New Product Development

• Innovation Imperative…

• New- Product Success..

• New- Product Failure..

Thank You !

Chandra Has Dondapati