Reports indicate that companies are relying on incremental improvements to existing products to maintain market presence. Research shows that it takes 12 product failures for one successful product launch. This costs Fortune 1,000 companies alone more than $60 billion annually in wasted development efforts.
Design failures and incremental improvements are not viable options in a recession—especially not for businesses with limited resources. New product innovations must meet customer needs and corporate profitability objectives. Here are some tips to drive innovation with affordable economics:
1. Collaborate with universities, government, and other nonprofit stakeholders to drive a continuous innovation agenda.
2. Implement a sustainable innovation process to quickly and repeatedly transform ideas into cutting-edge products. Leverage innovation platforms that empower innovators to deliver the right products the first time and design quality products that reduce recalls.
3. Identify new market opportunities for existing products.
Bottom line: Companies that continue to invest in sustainable innovation practices and deliver affordable products are the companies that will win the greatest market share. It is these companies that will lead us out of today’s global recession.
Mark Atkins CEO & Chairman Invention Machine Boston