What challenges does a company face in developing new products and sercives.pptx

1. Challenges
in
Developing
new
products
and
services

2. New Products Options:

3. Either add new
products through
acquisition (buy other
companies, patents,
license from other
companies)
Acquisition:

4. Organic Growth: Development of new products from within.

5. But, the bitter truth is that fewer
than 10% of all new products are
truly innovative and new to the
world.

6. Product-launch Challenges:
High-tech firms in telecommunications, computers
and others face product launch challenges viz..
High Technological uncertainty

8. Fierce Competition :

9. High Risk in Investment

10. Challenges in
New-Product
Development

12. Continuous Innovation- A Challenge

13. What could be the solution??

14. W. L. Gore provided the solution:

15. 1. Work with potential customers

16. 2. Allows employees to choose projects and appoint
few product leaders and teams.

17. 3. Gives ‘Dabble Time’ to employees i.e.
10% of working hours developing their
own ideas.

18. 4. Promising Ideas are pushed
forward and judged according to –
Real, Win, Worth?

19. Is the opportunity real?

20. Can we win?

21. Can we make money?

22. New Product Success:

23. - Established Company focus on Incremental
Innovations
- Newer Company Create Disruptive Technology

24. 0 20 40 60 80 100 120
Minimal Advantage
Moderate average
Superior product
NEW PRODUCT SUCCESS RATE
AXISTITLE
98%
58%
18%

25. 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.

26. New Product failure :

27. Failure reasons :

29. Poor Advertisement

30. Wrong Timing

32. 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.

34. Credits:
www.eecatalog.com
www.slideshare.net
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www.thestar.com.my
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www.clearspring.co.uk
www.drspem.com
www.gotostrong.com
www.menterman.com
www.fernadofisch.com
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www.productlifecyclestages.com
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www.blog.dabble.co
www.playbuzz.com
www.magingif.com
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