Your business strategy includes product innovation
Acquiring new products is the only way to sustain future business prosperity. Product innovation requires significant investments in time, money, and other scarce business resources. These must not be squandered by developing products that do not meet customer expectation, are unwanted or not commercially viable.
Key Issues
·         Your company must develop a business strategy that identifies its future direction, and how it will invest its finite resources in new products
·         The business strategy and intimate knowledge of your customer’s future requirements must drive the product innovation strategy
·         Aspects of the business strategy that may drive product innovation include:
o      Being the market / technical leader in your chosen field
o      Growing market share by introducing more desirable products
o      Updating your product portfolio to lead / match your competition
o      Reducing your production costs and increasing product reliability
o      Development of products for overseas markets
o      Exploitation of your core competencies in complementary products
·         Your company should have
o     A business development process for determining which products / services should be commercially exploited
o     A technology route map to identify future technologies that could be incorporated into new and existing products
o     All new products clearly identified in the company business plan
o     A formal process for collecting information on products, customers, competitors, new technologies and key people in your industry
o     Links with universities to direct research in emerging technologies to your advantage
o     A commitment to investing a higher %age of sales revenues on product innovation
·         Product innovation should be undertaken by multi-disciplinary teams managed by a project manager who ensures products meet all customer expectations
·         In the case of large projects, the manager should be dedicated to the project
·         Budgets and time scales must be realistic but challenging
Factors for Success 
Factors to  Avoid
1.     Everyone thinks about how to enhance products and services
2.     Products are rigorously evaluated at an early stage and dropped if expected financial returns cannot be achieved
3.     Resource requirements are accurately planned
1.     Unrealistic targets for:
1.1.   costs / expenditure
1.2.   delivery times
1.3.   availability of resources
2.     Starting projects without clear objectives and estimate of costs
3.     Attempting to work on too many projects with limited resources
Who does this apply to?
All businesses should strive to establish a business strategy determining the product innovation needs and levels of investment it must make in new products. 
Realisable Benefits
Increased sales, portfolio of desirable products, more cost effective process


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