The document discusses the challenges of developing new products and services. It notes that fewer than 10% of new products are truly innovative. Developing new products presents high technological uncertainty, fierce competition, and high investment risks. It provides an example of how Gore overcame these challenges by involving customers early, giving employees flexibility to choose projects, and judging ideas based on feasibility, competitiveness, and profitability. The document also discusses reasons for new product failure, including poor advertising and wrong timing.
23. - Established Company focus on Incremental
Innovations
- Newer Company Create Disruptive Technology
24. 0 20 40 60 80 100 120
Minimal Advantage
Moderate average
Superior product
NEW PRODUCT SUCCESS RATE
AXISTITLE
98%
58%
18%
25. Cooper and Klienschmidt found that products designed solely
for domestic markets tend to show a high failure rate, low
market share, and low growth.
Although, those designed for the world market – or atleast
neighboring countries- achieve significantly more profits at
home and abroad.
32. Recap :
• Various types of new products and ways to create them – Acquisition
and Organic Growth.
• Product-launch challenges in high-tech firms in telecommunications.
• Challenges in New product development:
1. The Innovative Imperative
2. The Product Success
3. New product failures and their reasons.