What happens when your product lifecycle decreases by 10% every year, while your new product introduction success ratio decrease at the same time, and increasing competitiveness means decreasing margins on new products in general?
The key to survival – according to John Hagel at Edge Perspective – is in rapid incremental process innovation.
While I agree with that, I also believe that companies have a lot of room to increase their new product introduction success ratios. Most errors leading to new product introduction failures can be tracked back to the front end of the product lifecycle – that time when you get your market requirements and your ideas. For most companies that whole process is an un-managed black box. People build product without sufficient ideas or with the wrong market requirements – a formula for disaster.