The purpose of new product development models is to identify and give guidance to the certain activities in the process of creating a new product. Historically the models followed a horizontal structure where different parts of the company were in charge of different task in the process. Those could be categorized as department stage models and are widelycriticized for being to general and not being applicable in specific situations and for being too time consuming and not generating any market feedback. However, over the years these models have gone trough some great progress and today there are a variety of models taking on a more activity- or decision- based or convergent kind of view. We are briefly going to present “The Booz, Allen and Hamiltonmodel of new product development” which originates with a company objective and finally leads us to product success. It contains a number of activity based steps followed by review points where a decision to continue or to drop the product takes place. It is therefore a model that involves a large amount of iteration and feedback.
Returning to our questions, it seems for as to create a goodframework through which we can point better factors that lead to success or failure.
Now, first of all, let’s have a look at the “Big Picture” of global markets! One can easily observe that more and more products are introduced by companies in search of building competitive edge and differentiating from their competitors. Because of this, many new products survive only for a short period, and theaverage product life cycle is shortening as successful new products displace the old. However, in numerous cases the success searched by companies turns up into failure and numbers speak for themselves: …..
From the very beginning we like to state the existing pressure put on executives to develop new successful products. The effervescence of the existing environment pushes them on taking quickdecisions without a proper amount of time spent on analyzing the actual circumstances.
However, why this hurry to launch faster new products? Well, the notoriety achieved early, an image that is often better and the loyalty of clients who continue to buy the first product used are some possible answers. The pioneer has the possibility to influence the tastes of consumers, and to impose thenorm and attributes to which products in that category must correspond. Coca Cola, Amazon, Orange ( France Telecome mobiles) are some examples of leader companies that enjoyed success since start.
At the same time, what we want to emphasise is that the particular factors which have an important influence on your market that must be clearly understood .A careful monitoring of the competitors isessential for one planning and development. Mangers should never lose from their sight the possibility to be the fast second if they lack some capacities (financial, technological etc). So, the company can well use the competitors’ knowledge to develop improved products more carefully target at the emerging market. To put it another way, one must look only at the specific context affecting hisbusiness. What will have to result is a unique product decision that needs to be taken.
A study, done by Schaars, shows 28 sectors where imitators actually took the place of innovators. Why? He highlights the most often situation : New products that are insufficiently tested, bad positioning, costs superior to the budget, difficulties to react in face of powerful competitors. Take for instanceMicrosoft Explorer which replaced Netscape or the fact that none of the laptops’ producers who dominate now the market haven’t been pioneer - Dell’s case. Furthermore the researcher gives some suggestions on how to build up success by focusing on ways of developing the product, but also logistics matters.
In short, the right strategy to be adopted it is preferable to be one that suits your...