A successful product is always the result of a good idea, a quality inspiration, that aims to solve a current problem or need in a marketplace or niche. This being said, a good idea is a necessary, but not sufficient, condition for developing a successful product. An organization also needs to have an experienced development team with expertise in whichever field the product is being developed for. Without this expertise, a development project will likely fail and no product will be launched to market. In this article we will go over the importance of expertise in new product r&d and why a good idea isn’t enough.
Understanding Of The Development Process: Like anything complicated, there is a process for development. While an individual or organization may have a good idea if there is a lack of experience in the development process it is unlikely a functional prototype will be produced. Between 70 and 90 percent of new products fail. The vast majority of these failed products fail during the development cycle.
Expertise In The Field: To be able to launch a product to a specific market one must understand the market; its customers, its price points, etc. Generally speaking, companies look at something called the 4 Ps when deciding on how to introduce a product to a specific niche.
Product: An understanding of what type of product is likely to penetrate the market and what customers demand.
Price: How much can one expect to charge for the product? This is an area where new products often fail. The product may very well meet some consumer demand but the developer prices the product out the range in which their target market is willing to pay for it. This is an area where expertise is very helpful.
Place: Where a product is to be sold and the supply chain which will get the product to its destination. Different customer groups have different preferences, knowing these preferences can make the difference between a successful product and an unsuccessful product.
Promotion: Promotional strategies, PR, and advertising. Having a good product idea does not make one an expert in promotion. Even if a product does everything it claims to, if no one knows it exists they are very unlikely to purchase it. Promotion is one area that most product developers know they need help with. Reaching the target audience can be difficult in a world with so many products.
Testing Experience: The skills needed for developing a functional prototype and projecting its success in the market requires very different skill sets. Even large development firms hire testing companies to help with their projections.
Sometimes the developer becomes too attached to their product and they do not listen to market feedback. Seeking the help of people with expertise in this process will ensure honest, non-emotional, data and predictions.
Understanding the market that one wishes to introduce a product can take years of experience, a wealth of experience that, usually, cannot be acquired by a single individual. It is very important to enlist the help of experts when undertaking this process. If not, there is a high likelihood of product failure.