Managing Innovation, 6th Edition

CHAPTER 10 Creating New Products and Services

In this chapter, we focus on the more specific issue of developing new products and services. We begin by introducing the most common processes for development, the stage-gate and development funnel. We then review the generic factors that influence product and service success and failure. The central part of this chapter looks at how the market and technological context influence the process of development and commercialization, for example, how the development of radical is different from more common line extensions. Finally, we explore the similarities and differences between developing new products and services. In the most advanced service economies such as the United States and the United Kingdom, services create up to three-quarters of the wealth and 85% of employment, and yet most of what we know about managing innovation comes from research and experience in manufactured products.

10.1 Processes for New Product Development

We discussed the broader organizational factors to support innovation in Chapter 3, but here we explore the more specific needs of new product and service development. Successful product and service development require much more than the application of a set of tools and techniques, and in addition requires an appropriate organization to support innovation and an explicit process to manage development. ...