Improve Business Success via New Product Development Performance
One of the top priorities of corporate executives is improving product innovation and new product development (NPD), with the aim of increasing revenues from new products, driving down costs, and reducing cycle time, and ultimately of increasing profits. But research shows that 82% of ideas get stuck in development and 50% of new products miss profit objectives.1 Even if these two metrics are better at your company, in most cases there are still significant opportunities for substantial improvements.
Some of the more prevalent and demanding challenges companies face in improving their innovation and new product development lifecycles are:
- Aligning portfolios and new product development initiatives with corporate strategic plans and business revenue and profit goals.
- Identifying high-value winning product ideas for further investment.
- Developing and maintaining a strong pipeline of the right innovation and new product initiatives.
- Allocating resources to projects that will get the selected new products through the development process efficiently and launched to market on time.
- Ensuring the strategic fit of products relative to market requirements, customer demand and competitiveness.
- Reducing inefficiencies from poor execution and lack of structured processes.
- Ensuring strong rules of governance for making fact-based decisions.
Ultimately, business success depends on creating value from investments in the new product development lifecycle:
- Customer value – satisfying a real customer need with perceived benefits over alternatives.
- Strategic value – aligning with your market, product and technology strategic direction.
- Business value – creating financially rewarding and growth opportunities for your business.
According to research by Booz & Co., some of the key characteristics common to successful new product development and innovation companies include the implementation of a formal new product development process and a strategic plan that demands a certain portion of company growth from new products.
For more information and to learn more about how to put your business on track for success with new product development:
1 SGI Benchmarking Study