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Management Information Systems
Product innovation, in general context is defined as ―the development of new products, changes in
design of established products, or use of new materials or components in the manufacture of established products‖ Developing and launching a steady stream of successful new products is no easy feat, however. It‘s certainly much more than proclaiming some ambitious new product goals and hoping the financial community listens. Many companies try, but only a few are stellar at product innovation. For example, only one product concept out of seven becomes a new product winner; on average 44 percent of businesses‘ product development projects fail to achieve their profit targets; and half of all new product launches are late to market. With results like these, no wonder so many businesses and their executives are frustrated. There are exceptions, however. Some companies, like Apple, Procter & Gamble, Johnson & Johnson, Kellogg‘s, Microsoft, Hewlett Packard, Toyota, Sonyand Pfizer, do make product innovation seem easy. They are the consistent winners, with one big new product breakthrough after another. But exceptional performance in product development is no accident– it is the result of a disciplined, systematic approach based on best practices. Four major factors or forces drive a business‘s new product performance, according to our studies, and are illustrated as four points of performance in the Innovation Diamond: 1. Strategy: Top performing businesses put a product innovation and technology strategy in place, driven by the leadership team and the strategic vision of the business. This product innovation strategy guides the business‘s product innovation direction and helps to steer resource allocation and project selection. 2. Resource investment and focusing on the right projects – portfolio management: Top performers commit sufficient resources to effectively undertake their new product projects; and they boast an effective portfolio management system that helps the leadership team effectively focus these resources on the right strategic arenas and to a short list of high-value projects. 3. An idea-to-launch framework for doing new product development projects right: A best-in-class new product process or Stage-Gate system exists in top performing businesses – a system or process that drives new product projects from the idea phase through to launch and beyond. This idea-tolaunch system emphasizes quality-of-execution, up-front homework, voice-of-customer input, and tough Go/Kill decision points. This is a vital success driver for virtually all of the Best Performers. Senior managers in top performing businesses create a positive climate and culture for innovation and entrepreneurship, foster effective cross-function al new product project teams, and are themselves properly engaged in the product innovation decision making process. These are the main practices that separate the Best Performers from the rest. These four themes make up the four points of performance of the Innovation Diamond, and they are the keys to successful product innovation. References: 1) Successful Product Innovation: A Collection of Our Best. Authored by Robert G. Cooper and Scott J. Edgett. 2) Wikipedia.
this testing can prove to actually shorten time-to-market if it comes up with conclusive results for a design or product definition change. Product lifecycles are decreasing as designers continue to ―one up‖ one another. Hence the need to respond. deeming the testing worthy of the time spent in that phase. Consumers are wiser and it‘s arguable that knowledge of a topic breeds a more selective consumer. They are demanding a personalized service—no more ‗vanilla‘ products. distant global manufacturers can better appeal to consumers due to the Web's inherent ability to defy all geographical boundaries. both manufacturers and designers are leaning processes to better compete with shorter product lifecycles and increasing global competition — which are becoming exponentially fiercer. but conceptually in return. is proposed for measuring product evolution using historical documents. Not only can consumers shop around from their home office chair. rapidly negating any competitive advantage you may have gained. A new method of price linking. 'fast-follower' syndrome is often created by a manufacturer adept at taking the essence of a product and launching it (often at lower cost and very quickly). Anderson believes global competition manifests itself in two ways.‖ R&D: The Birth Or Death Of A Product? Market research. All of this leaves design engineers on both the beginning and anchor legs of a vicious relay race. the larger choice of suppliers for any given market and the ease to which it can be accessed makes purchasers increasingly powerful and selective. and testing lengthen the product development process. nothing less. e. shoes. virtually comparing prices and features. increasing the rate at which innovation occurs and reducing time-to-market. but they can also demand that it arrive within one day. you need to offer them exactly what they are looking for. The aforementioned stepped product development platform is conducive to this process because the more market research that can be collected as a product is launched (or after it's launched). Secondly. the more feedback that can be gleaned and honed into a better product for the next step in the platform. the representative good approach (RGA). from 1928 to 1993.. prototyping. Product Evolution Management Information Systems Product Evolution: The concept of product evolution applies to products changing physically over time. The Internet has changed everything. The RGA can shed light on evolutionary patterns of technological change. Thus. The Internet is partly at fault for putting the world in which we live into high drive. Using the SEARS CATALOG. resulting in more product launches and the need to get to market ASAP. dramatically-different rates of product evolution were estimated for cameras. "Firstly. but serving the same function. and serve as a check against other methods of quality measurement like conventional price linking and hedonics. Global competition cannot be avoided. so what can a design engineer do to increase the desirability of a product while still reducing time-to-market? By making the exact product the consumer is looking for— nothing more. the broom and dustpan being replaced by the vacuum cleaner.Product Innovation vs. fans and air conditioners. and the Internet has made it easier than ever for consumers to be aware of the difference. To compete and win their business. and sofas. Furthermore.g. . gas ranges.
if planned correctly in advance and then implemented accordingly. As Spann so eloquently says.‖ Anderson says. should be expected to throw up changes and modifications—otherwise there is little point in testing. thereby essentially reducing it by preventing and/or avoiding pitfalls. technical. Theoretical predictive design methodologies and modeling techniques should always be used in advance of any test work to understand the design and manufacturing sensitivities. will delay. Product Evolution Management Information Systems In other words. when found later in the program. Throw away testing and prototypes at your peril. ―Any time you remove ambiguity. ―[Testing] should effectively increase product development time as any product testing. . the success of the product may depend on lengthening the time-to-market process in these critical phases.or market-driven. However.‖ References: 1) Product Evolution Research Paper by Carrie Ellis. cancel a launch altogether. you speed up the creative process. Product testing enables the team to uncover all of those issues that. maximizing benefit. it will help reduce time-to-market. or in the worst case.Product Innovation vs. thereby enabling the development team to focus the prototypes and test work.
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