Leveraging Constraints for Innovation

Part 3MARKET CONSTRAINTS

The chapters in Part 3 address market constraints, which we define as relating to particularities of specific markets that are targeted for the new product under development. Figure I.1 in the Introduction outlines the particular market-related constraints each chapter focuses on and indicates how these constraints typically arise in the new product development (NPD) process.

Chapter 7, by Ronny Reinhardt, acts as an overall organizing chapter for firms addressing low-end markets, which are defined as markets of customers with a low willingness or ability to pay. Their low willingness or ability to pay prevents them from purchasing currently available products. They typically go without or make do somehow. This chapter identifies eight capabilities that firms need to develop to adapt the standard NPD process (Introduction, Figure I.2) so that they can repeatedly develop low-end innovations. The chapter makes specific suggested changes for how to successfully adapt the standard NPD process to achieve each organizational or process capability.

Chapter 8, by Aruna Shekar and Andrew Drain, focuses on markets with a severe lack of resources, going beyond customers' low ability to pay. These markets also have customers with lower educational backgrounds, less mechanical knowledge, limited or nonexistent utilities, and other infrastructure holes. The chapter presents two specific adaptations necessary for more successfully innovating for low-resource markets ...