74-231 Chapter Notes - Chapter 9: Mc Hammer, Toothpaste, Business Analysis
16 May 2013
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You don"t want a new product to fail of course: in the process, there are the new product success factors, long term commitment, company specific approach, capitalize on experience, establish an environment. You have to accept failure because its common, but at the same time, you can"t laugh it off: new-product development process, new-product strategy. Sources of new product ideas: customers, employees, distributors, vendors, competitors, r&d, consultants. The first filter in the product development process, which eliminates ideas that are inconsistent with the organization"s new product strategy or are inappropriate for some other reason: business analysis. Considerations in this stage: demand, cost, sales, profitability. We"re not sure how much demand there will be. A new product is usually not fulfilling a need that hasn"t been filled before. Those older products were maybe just not perfect. Look at how dominant/important the need is and estimate how much the demand will be.
