New Product Success Rate: Why So Low?

In a recent survey (1), only about 61% of all products launched by existing companies turn out to be successful in the market. When you investigate further, however, you will find that the “best” companies have much higher success rates of around 82% vs. 59% for the “rest”. In this case, the “best” were defined as the most successful or in the top third in their industry for new product development (NPD) success, being above the mean for their new product program success, and being above the mean for sales and profit success from NPD. Why such a significant difference? What differentiates the “best” from the “rest?” Continue reading

What You Can Learn About Innovation From Unrelated Industries

For manufacturers of highly engineered products common in the B2B industrial world, innovation in industries such as retail, entertainment, and even the transportation industry might seem completely unrelated. You might be surprised. The innovations happening in these fast-moving industries can serve as important lessons for anyone responsible for new product development (NPD) regardless of whether you are in the service or the manufacturing sector. Continue reading