How New Product Time To Market Impacts Revenue and Profitability
Considering that 79% of new products miss the launch date1, companies have an enormous opportunity to increase sales and profitability by improving new product time to market (TTM). You probably have such an opportunity in your company. How do you go about making this improvement in a sustainable manner so that it continues to improve over time for the long term?
Achieving new product development (NPD) time to market goals generates more sales and greater profitability because products that get to market on time:
- Maximize the window of opportunity in the market, seasonality, changing customer demand and other factors.
- Avoid revenue loss from:
- Being late to market.
- Missed opportunities caused by the late launch.
- Having less time in market by being late and competitor(s) seizing the opportunity.
- Products that get to market in time command premium prices early in the lifecycle.
In today’s environment, markets, products, technologies and customer demand change rapidly, and an increased number of companies are competing for market share. Product commoditization usually occurs after only a short time in the market, leading to lower margins and profits. This means that new product time to market is a critical factor that not only affects a particular product’s revenue and profitability, but can impact the overall success of your company. The longer the period of missed time to market, the larger the lost opportunity, revenue and profits.
Sopheon takes a holistic approach to help companies improve their new product time to market that includes automation with the Accolade software, best practices and services that leverage many years of experience with some of the leading brands and innovative companies in the world.
Sopheon’s customers typically improve their new product development time to market by 15-30%. For example, Glatfelter, a leading global supplier of specialty paper and engineered products in the papermaking industry, cut their new product time to market by 25% and saw a 132% increase in revenue from new products within two years of implementing Sopheon’s Accolade enterprise innovation management solution.
Learn more about how you can improve the new product time to market at your company: