New Product Development and Product Innovation Charter - Essay Example

? New product development and product innovation charter Introduction New product development strategies are dependent on the product innovation charter. The fact is that a company cannot endeavor in developing a product before strategizing on the ongoing trends of consumer behaviors (Shavinina, 2003). Therefore, the vital approach to every new product development process is to master the ongoing tastes and preferences of the consumer. Thereafter, a company will have the ability to establish the product innovation charter in relation to its goods and the market. Therefore, a white product manufacturing company must understand that technological advancements are the key to success in the market (Avlonitis & Papastathopoulou, 2006). 1. a) Product innovation charter entails product planning and strategizing prior to its development. PIC charter summarizes all the necessary tools that a company’s development team should draft to come up with new products. The charter ensures that a product developed under it targets to achieving the company’s goals and objectives. Thus, the specialists must abide to PIC if they target to ensure their development is for the best of the company once it is in the market. It enables the team to set the product’s objectives in accordance to sales forecasts. A product will product will be of critical importance to a company if only it will draw positive attention from the consumer markets, as this is the only way of improving sales margins (Annacchino 2007). Similarly, sales should be profitable to the company at the long run as far as the company is a profit making organization. Further, a significant development is that which enables a company acquire a higher market share relative to its previous one. Managers and product developers should focus on improving the market share competently and profitably (Avlonitis & Papastathopoulou, 2006). b) Every company has a mission and vision in its business field. Therefore, to come up with the best results of every innovation, the team should consider the goals and objectives of the company. For example, if a company’s mission is to enhance economic growth and customer satisfaction, the new product should entice the consumer to feel closer to the company and on deriving satisfaction from his purchase, will mean profitability to the business. Since perfect market competition is a rare case, a brilliant innovation will enable the company to grow in the market and undermine competitive threats. Eventually, a company shall pose a positive image to the society and other business affiliates if only the charter refines its image through healthy innovations (Karniel & Reich, 2011). c) The challenges that come with every innovation are as well overwhelming. Managers should understand that product charters only reveal prospects and not certainty. The criterion often tends to control development teams to operate within distinct procedures. Therefore, the team may develop a product that suits specific needs. This results to reduction of sales prospects, profitability, and market segment. The company finds realizes to be loosing worth an investment to a nonperforming product. It is advisable that companies should endure on practicing the best details a product innovation charter can offer in relation to the company’s goals and objectives (Karniel & Reich, 2011). 2. a) The key factors to that influence companies to concentrate in new product development programs are diverse. Companies find that all markets pose competition and to ensure co-existence they must come up with products that place them above per. Other companies seek to maximize profits and after careful revision of the products that they already offer in the market, they realize the need of a new product that will profitably benefit the company in its operations. Companies notice that, whenever new products hit the target market profitably economies of scale reflect positively, and the rate of growth draws a positive view from their affiliates (Avlonitis& Papastathopoulou, 2006). The global business arena is always dynamic; thus, companies find the need to endeavor in practices that will enable them sustain their markets or enter a new market segments profitably, and to ascertain this, they must design new products that auger well with consumers. Technological enhancements pursue every business activity; companies that perceive this as an opportunity ensure that their markets are not extinct by developing new products that cope with change (McPherson, 2010). b) It is of advisable for an electronic company to relate any form of change to technological advancements. Sony Company is a global icon and at times the market leader in the electronics business. However, this does not outweigh the threat of competition but rather draws it. Therefore, Sony must ensure that it develops new products to reach existing or new consumer needs profitably. The electronics should seek to deliver customers needs effectively than their close competitors, and this will lead to market share growth. As an electronic company, Sony must also study the prices of its new products and define whether at such a price; the customer will derive satisfaction from the purchase, and the likeliness that other consumers will get possible attraction to the product. Therefore, Sony Company will bear the ability to create new products that aim to deliver satisfaction and steer growth (Karniel & Reich, 2011). c) New products offer opportunities as well as threats to the company’s lifeline. During product development process, the team may fail to research effectively on the prevailing tastes and preferences of the consumer. Therefore, the product may fail to win the target prospects due to lack of attraction in the eyes of the consumer. At other times, a company may design a product but fail to reach the market effectively; this mainly results from borrowing ideas from other companies. Therefore, a company that fails to come up with originality fails in the market because no consumer will anticipate buying a counterfeit product. Pricing of new products poses as a tricky issue companies may price their products and fail in essence that substitutes may be in existence. Consequently, pricing a new product much lower will not help, as consumers will assume it for a counterfeit or of inferior value. A company may price a product in a way that it seeks to recover the amount it has spent in developing the product, this may result to more harm as competitors who are already in existence can readily manipulate their prices to drive it out of the market (Karniel & Reich, 2011). 3. a) Companies should carry out an adequate research on the needs and wants of the consumer before indulging in production of new products. The research should entail their tastes and preferences and draw conclusions on the best approach. Companies are able to avoid failure as they become certain of the types of needs that consumers seek to satisfy, and to what extent the market can enhance the returns on investment (Avlonitis & Papastathopoulou, 2006). Companies must consider the environmental factors that surround the product and possible reactions from stakeholders. Competitors are always pursuing dominance; a company cannot assume the importance of environmental concern, as they will use it for a weapon to fail the company. The company considers this fact, and is able to tailor the product such that it tames opposition entirely (McPherson, 2010). b) A cost effective product is likely to draw the company to achieving its target objectives. This is because the company will have the ability to reduce production overheads during development, and hence it will become easier to enter the market with a price that targets the consumer rather than one that seeks to recover the cost of investment. Therefore, a company must choose the best technology that reduces production costs, and delivers value and satisfaction to the consumer. A superior product furnishes the company’s image rather than tarnish it. During the development process, a company should ensure that its product brings out the best image that a company can seek. Sales are likely to increase in the general production line of the company if the new product gains acceptability (McPherson, 2010). 4. a) Product development process should originate from ideas. A manager should consider ideas from relevant sources that surround the business environment and establish the most favorable ones. He can source ideas from employees from his company and competing companies as well as the customers. This will help enable him to generate the best approach before indulging in developing the new product. He will equip himself with necessary materials to the approach rather than doing it blindly. Sources are valuable to the extent that they enable him to make sound decisions in accordance to the market prospects (Avlonitis & Papastathopoulou, 2006). Now, the manager stands the ability to forecast on the chances of success and the degree of customer loyalty. He is able to calculate on the costs of developing different products and cull those that are expensive to produce, remaining with those that enable the company to thrive in the market (Kumar & Phrommathed, 2005). The manager reviews the factors of production, and books the best production and presentation time of the product. Time is of critical importance to the company as well as to market. The set time should enable the company to weigh effectively its capacity to produce the new product without interrupting with other products already in existence. Similarly, a company must limit time as competitors may learn of advancements and enter the market as initial pioneers (Kumar & Phrommathed, 2005). Pursuing advancements is the root of prosperity to technologically related businesses. Mike Tech Ltd should ensure that its operations do not halt due to competition and loss of the market share. The company will co-exist by generating applicable ideas that will enable it achieve its long-range plans. Ideation is rather a process to a process to a step, and it is necessary as it establishes a range of choices. Through ideation, the company carries out evaluation tests on the different projects it seeks to undertake, and choose the best alternatives for effective results. Mike Tech Ltd should seek ideas from; customers, suppliers, and competitor’s loopholes and analyze opportunities of their offer. Mike Tech Ltd will eventually be able to build and design an electronic that suits the needs of the consumer effectively (Kumar & Phrommathed, 2005). b) At the problem-analysis stage, the product development team seeks to establish consumer needs effectively. Consumers redefine different market segments in accordance to their needs and purchasing trends. Therefore, the team should define their objective depending on the needs they would like to serve satisfactorily and profitably (Fiore, 2004). The analysts should also be capable of segmenting the markets and establish the possible turnover to its new product. The consumer is the most significant factor of profitability to every company. Analysts should consider the issues; that establish on the user groups they prefer to approach, depending on their tastes, preferences, knowledge, and expertise in relation to the product (McPherson, 2010). Thirdly, analysts need to identify how users react to problems arising from usage of given products. Reactions necessarily need to emanate from the use of given products as they may also occur from dissatisfaction of a pressing need. At this phase, the analysts should seek to establish why user needs a certain range of products and distinctively define what they want. The most critical mistake is to associate a problem to an individual assuming that it does not affect others. Demographic and geographic variables influence users in groups and not individuals. This means that users may share similar views due to culture, and this will affect their approach to product. Analysts should weigh needs in accordance to the degree of perseverance and rate them accordingly. Here, the development team will be able to draft ideas that aim to satisfy specific needs at a profit (Fiore, 2004). c) Screening of ideas is critical to new product development as it helps to shun those that are not profitable to the organization. The process is effective on weighing the ideas and how the likeliness that the consumer will buy. The process helps in the realization of market share growth upon competition variables. Possible ideas should show reflect a positive expectation to sales since, every firm seeks to maximize output and market share growth profitably. Good and worthwhile ideas should employ the best technology that saves the company from deteriorating and enhances success factors as well as reaching the consumer profitably (Annacchino, 2003). 5. a) The stage-gate process appears mainly in three distinct phases that serve as a sieve to ideas prior to authorization and production of the new product. The team conducts cost evaluation at this stage and outlines the best ideas among the wide range of choice. The second phase enables the team to evaluate the capacity of performance (McPherson, 2010). Therefore, the development team of these technological applications derives a protocol of delivering the new product project for further evaluation. The stage calls for the management’s hand in establishing the final decision. After management authorizes the project, the team drafts a business plan and issues once more to the organization. The management makes its own choices upon different projects of new products. The company’s management can make a choice relative to cost-effectiveness and fail to realize the profit objectives of other varieties. Therefore, it is advisable for an electronic company to emphasize on technological factors in comparison to cost-effectiveness. b) The company must work close to its new product development team to affect the stage-gate process. It should show appreciation to the research findings and avoid any criticisms as this may undermine future projects. The management should carefully seek to understand the reason why the team makes certain decisions at certain points. A company that deals with electronics has many factors to adhere to, before choosing the best idea (Fiore, 2004). The industry comprises of different cultures and economic classes who pose different variations in choosing products. Therefore, the research team has the priority to decide on the best ideas that suit the company’s needs. Thereafter, the management can enquire to understand the essence of such decisions and importance in relation to the company (McPherson, 2010) c) The new stage gate version of conducting idea generation maintains that the research team has the mandate to carryout decisions on the special product that a company can produce profitably. The former stage gate has restrictions to the extent that, no matter the research conducted to come up with new ideas, the final decision rests solely to the management. The new stage-gate process enables the team to design the product through the available ideas. Thereafter the team has the capacity to produce and test the market under different product designs. Therefore, this stage enables the team to test product prior to the initial offer. The stage-gate procedure also deviates from the former practice of directly producing a product from the best idea. It emphasizes that; a new idea should first lead to the development of a model and not necessarily the product. By so doing, the stage allows room to conduct necessary revisions instead of direct production (Fiore, 2004). Conclusions The global business environment is diverse. The management needs information all changes in the business environment to determine the best approaches. The, management is likely to delegate duties to a team that seek to state the events following such changes. Therefore, conclusion all business view threats, modify them into opportunities, and enter the market effectively and strategically. Electronic businesses are not vulnerable to technological changes; hence always endeavor in research to come with new ideas and lastly, products. The reason behind every new product development is change in the environment, and the need to satisfy the customer profitably at maximum output (Avlonitis & Papastathopoulou, 2006). References Avlonitis, G. J., & Papastathopoulou, P. (2006). Product and services management. London [u.a.: SAGE. Fiore, C. (2004). Accelerated product development: Combining lean and six sigma for peak performance. New York, NY: Productivity Press. McPherson, J. W. (2010). Reliability physics and engineering: Time-to-failure modeling. New York: Springer. McPherson, J. W. (2010)Accelerated project management: How to be the first to market. New York: McGraw-Hill. Shavinina, L. V. (2003). The international handbook on innovation. Amsterdam: Pergamon. Karniel, A., & Reich, Y. (2011). Managing the dynamics of new product development processes: A new product lifecycle management paradigm. London: Springer. Kumar, S., & Phrommathed, P. (2005). New Product Development. New York: Springer Science+Business Media, Inc. Annacchino, M. A. (2007). The pursuit of new product development: The business development process. Amsterdam: Butterworth-Heinemann. Annacchino, M. A. (2003). New product development: From initial idea to product management. Amsterdam: Butterworth-Heinemann. Read More