Markets and consumer needs constantly evolve, accelerating new product/service development among small and medium sized organisations, as well as public and private sectors. Product development can be expensive and high risk. This can relate to reasons such as:
New strategic capabilities
Unfamiliar processes or technologies have to be mastered and the success frequency depends on the willingness to acquire the new technological and marketing capabilities. newfocus process the in-house tools to help decrease the risk associated with the adaptation of new capabilities.
Project management risk
Product/service development projects can be subjected to the risk of delays and increased costs due to project complexity and changing project specifications. newfocus tailor each project to fit the client’s needs so that the complexity and specifications are sorted before the project even begins.
With new product failure rates ranging from 40% to 90% depending on category (Harvard Business Review, June 2006 issue), successful launch of new products and services depends not only on strategic market insights but also strategy and implementation. Differences in the drivers of new products and services exist in the nature of the relationship. The differences exist between:
- Customer integration
- Cross-functional integration
- Innovation success in new product vs service
An example of creating future growth for an existing product or service line is to have a product development strategy that emphasises product-line extensions, or new product/service offers that are aimed only at existing customers. This is an attractive growth strategy if your business has a well-established customer base, where the customers are highly understood and the company has a strong corporate brand and strong customer loyalty. Success is found if the product development targets similar distribution channels and the same media.
Innovation and differentiation of existing products and services also remain critical to organisation and companies’ successful performance, which newfocus is more than happy to assist with offering our service and expertise.