Driving high performance through more effective new-product development
Based on the findings from this research initiative into new-product development and innovation, companies that want to improve their ability to innovate and to generate new, profitable services should look to the following keys to success:
1. Commit to greater customer centricity in new-product planning
Focusing on services with more likelihood of meeting significant customer needs is key to profitable new-product development. In large measure, developing better, more customer-centric innovations requires the application of analytic technologies that provide a unified view of the customer. This results in a deeper understanding of the unique interests and desires of customer segments, enabling companies to target profitable customers more effectively.
2. Develop more effective program management capabilities that break down internal silos
Poor interdepartmental cooperation in new-product development was cited by about a third of survey respondents as a significant impediment to effective service innovation. Similar numbers cited deficiencies in project management. One-fourth of the executives reported a lack of pre-launch testing.
These findings point to several deficiencies that can only be addressed by developing the processes and the talent required to manage the innovation process with more rigor and predictability.
3. Tap into a larger idea pool
When it comes to innovations, many companies suffer from an inability to harvest the good ideas that reside throughout the workforce or among business partners. New social networking technologies provide the potential to locate ideas and to encourage the kinds of dialogue and knowledge sharing from which good ideas naturally emerge.
4. Leverage a new generation of open service delivery platforms
If companies are to leverage the power of a more open development environment and meet the twofold challenge of speeding new-product development at lower cost, then new processes, tools and platforms are essential. In particular, the traditional service delivery platform must evolve to enable more developers and the delivery of customer-centric services in a Web 2.0 environment.
It’s still time to innovate
Challenging economic times should not be seen as a constraint on innovation. As this study shows, rigorous processes and a more effective platform for managing an open development environment can reduce the costs of new-product development and increase the chances of delivering breakthrough products. A more effective delivery platform can meet today’s need to reduce costs while also positioning a company for market dominance and high performance in the longer term.