We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
Published online by Cambridge University Press: 07 October 2011
Introduction
… if the weight of invention or discovery is one, the weight to bring it to actual development should be ten and the weight to produce and market it should be one hundred.
Masru Ibuka, President of SonyDespite increasingly experienced management, the majority of new products fail to achieve their anticipated level of success in the marketplace. The causes for that lack of consistent market success have been the subject of much academic study (Lilien & Yoon, 1989). That literature is consistent with the results of a recent survey by a consulting firm, Ltd., that reports that among 154 senior marketing officers of U.S. corporations:
79% believe the new product development process could be improved
58% do not rate R&D as a successful source of new products
46% do not rate R&D's contribution to new product development as significant.
As for the reasons for their perception of why this process is less than ideal, consistent with the findings of Booz, Allen, and Hamilton (1982) they report:
Products don't offer a competitive point of difference (52%)
Product doesn't deliver as promised (43%).
In addition, 61% of the respondents expect that 30% or more of their sales will come from new products within the next 3–5 years. Finally, EFO reports that they have conducted this research periodically and the companies are getting more concerned: firms see new products as a source of hope, but they are showing ever more frustration over their internal processes for developing successful new products.
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
