New Product Development_final

8/7/2019 New Product Development_final

1/17

New Product Development


2/17

Innovation

Innovation refers to developmental changes in the

existing products or creating new products for

satisfying customers needs better.

These Developments may be in terms of

Modifications in product Through Technology or

throughMarket Changes

Types

Radical innovation and Incremental Innovation


3/17

Incremental Innovation

Minor changes being made in product

design and usage.

This form of innovation takes place

continuously in any organization.

Has low risk and a high degree of

certainty.


4/17

Incremental Innovation


5/17

Radical Innovation

Using new technology to develop and

produce altogether different product

Examples are the television, personal

computer, VCR and such others.

These are high-risk innovations involving

long term R&D efforts.


6/17

Types ofInnovation

Product innovations : i-Pod

Process innovation : TOYOTA and Tata

Strategy innovation : When you find a better way

of serving your customer.

Air Deccan : A couple of years ago it looked at low-cost airlines across the world, picked some of the

best practices, and then made itself.


7/17

Why Innovation??

Survival

Changing Customers Preferences

Competition First Mover Advantage


8/17

Factors Affecting Innovation

Management

Top Management Plays a key Role

Management Support : An Important Aspect

Structure

Bureaucratic : Innovation process gets delayed

Flat Structure : Faster Decisions regarding new

products


9/17

Factors Affecting Innovation

Market orientation

An organization highly market oriented

encourages Innovation

Focus on Market Share, customer Loyalty

Success Rate

Previous innovations and acceptance


10/17

Innovation and Competitiveness

To stay in a competitive market a firm has to constantly

innovate.

Innovation is the key to sustainability

Not only products but even strategies

Coca-Cola and Pepsi. While these companies fought

on market share, somebody else went ahead andlaunched Red Bull and Gatorade. Both were extremely

innovative products that quickly made huge markets for

themselves.


11/17

Technology and Innovation

Jack Welch, Former CEO of GE

Technology is the driving force behindevery product innovation


12/17

Technology and Innovation

Era of Technology

Improve Product Performance

Distribution : Online Buying ( AMAZON) Electric Cars


13/17

Case Study

Have you ever seen thesquare yellow paper that

you use to makes noteson and pastes it to booksand newspapers, or even

on the refrigerator?

Isnt it interesting how you can

stick it somewhere then remove it

easily and stick it somewhere else

entirely?


14/17

POST IT NOTES

Launched in 1974

Developed by an Employee at 3M

Unable to remember meeting timing, maintaining

files.

Researched and Developed a Not-So-Strong

Adhesive

When the employee presented his idea to 3Mmanagement he was able to research and

develop the new product with their support.


15/17

Industrial Product


16/17

New Products

1. New to the world products

2. New product lines

3. Addition to existing product lines

A supplier of industrial gases may introduce

a new, smaller cylinder to include in an existing product

line, aimed at serving customers who require smalleramounts of gas.

4. Repositioning


17/17

Product Policy

1. Changes in customer needs and preferences

2. Changes in laws, rules and policies

3. Changes in technology: Jelly filled telecom

cables being replaced by fiber optic telecom

cables

4. Product Life Cycle

New Product Development_final

Documents

Transcript of New Product Development_final