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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
What challenges does a company face in developing new products and sercives.pptx
Fierce Competition :
High Risk in Investment
Challenges in
New-Product
Development
What challenges does a company face in developing new products and sercives.pptx
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?
New Product Success:
- Established Company focus on Incremental
Innovations
- Newer Company Create Disruptive Technology
0 20 40 60 80 100 120
Minimal Advantage
Moderate average
Superior product
NEW PRODUCT SUCCESS RATE
AXISTITLE
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.
New Product failure :
Failure reasons :
What challenges does a company face in developing new products and sercives.pptx
Poor Advertisement
Wrong Timing
What challenges does a company face in developing new products and sercives.pptx
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.
What challenges does a company face in developing new products and sercives.pptx
Credits:
www.eecatalog.com
www.slideshare.net
www.European-coatings.com
www.businessgrowthstrategies.com
www.proactiveinvestors.com
www.newsandviews24.com
www.ipgsystems.com
www.rdpartners.com
www.btgh.com
www.prudentpress.com
www.thestar.com.my
www.insurefirst.in
www.vpc.com
www.clearspring.co.uk
www.drspem.com
www.gotostrong.com
www.menterman.com
www.fernadofisch.com
www.mbahighway.com
www.productlifecyclestages.com
www.powerdecisions.com
www.blog.dabble.co
www.playbuzz.com
www.magingif.com
www.onedesk.com
www.risenetworks.org
www.linkedin.com
Hbr.org
www.cvsbwf.com
www.chaleylynn.wordpress.com
What challenges does a company face in developing new products and sercives.pptx

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