new product development

Lecture 9

Part 1 (on video)

New product development

What is innovation?
- ‘Process of turning opportunity into new ideas and of putting these into widely used
practice’

The product life cycle:
- Criticised for almost being too simple
- horizontal axis = time
- vertical axis = product
- 5 key stages:
 Product development
 Introduction
 Growth
 Maturity
 Decline

Growth through innovation:
- Mobile telephony
- Car phones (1980-5)
- Brick (85-90)
- Pocket (90-95)
- SMS, games (95-2000)
- MP3 camera (2000-4)
- Bluetooth, email (2002-2007)
- 3G and 4G video (2005-?0

Degrees of innovation:
- Incremental innovation (bringing new things in overtime)
- Breakthrough innovation (new products with unique features)
- Radical innovation (developing new products for carpets that don’t exist yet)
- Transformational innovation (creates new products potential)

Drivers of innovation:
- Technological advances
- Changing customers and needs
- Strategic intent
- Changing business environments
- Intensified competition