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What challenges does a company face in developing new products and services.pptx
The document discusses the challenges of developing new products and services. It notes that fewer than 10% of new products are truly innovative. Developing new products presents high technological uncertainty, fierce competition, and high investment risks. It provides an example of how Gore overcame these challenges by involving customers early, giving employees flexibility to choose projects, and judging ideas based on feasibility, competitiveness, and profitability. The document also discusses reasons for new product failure, including poor advertising and wrong timing.
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What challenges does a company face in developing new products and services.pptx
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- 3. Either add new productsthrough acquisition (buy other companies, patents, license from other companies) Acquisition:
- 4. Organic Growth: Developmentof new products from within.
- 5. But, the bittertruth is that fewer than 10% of all new products are truly innovative and new to the world.
- 6. Product-launch Challenges: High-tech firmsin telecommunications, computers and others face product launch challenges viz.. High Technological uncertainty
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- 9. High Risk inInvestment
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- 12. Continuous Innovation- AChallenge
- 13. What could bethe solution??
- 14. W. L. Goreprovided the solution:
- 15. 1. Work withpotential customers
- 16. 2. Allows employeesto choose projects and appoint few product leaders and teams.
- 17. 3. Gives ‘DabbleTime’ to employees i.e. 10% of working hours developing their own ideas.
- 18. 4. Promising Ideasare pushed forward and judged according to – Real, Win, Worth?
- 19. Is the opportunityreal?
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- 21. Can we makemoney?
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- 23. - Established Companyfocus on Incremental Innovations - Newer Company Create Disruptive Technology
- 24. 0 20 4060 80 100 120 Minimal Advantage Moderate average Superior product NEW PRODUCT SUCCESS RATE AXISTITLE 98% 58% 18%
- 25. Cooper and Klienschmidtfound 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.
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- 32. Recap : • Varioustypes 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.
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