New product development
The new product process consists of the activities carried out by marketers when developing and launching new products.
A new product that is introduced on the market evolves over a sequence of stages, beginning with an initial product
concept or idea that is evaluated, developed, tested and launched on the market (Booz, Allen & Hamilton, 1982). This
sequence of activities can also be viewed as a series of information gathering and evaluation stages. In effect, as the new
product evolves, management becomes increasingly more knowledgeable (or less uncertain) about the product and can
assess and reassess its initial decision to undertake development or launch.
Invention is the creation of new products or processes. These can be completely novel and untried or may be derived from
previous products, but with sufficient new features or technical attributes, that a firm can patent the design or copyright
ideas included in the development. Invention often explores the boundaries of possibility, with outcomes that are both
uncertain and unknown. As a result, there will be more failures than successes. Total invention is difficult, because there
are few ideas that others have not considered previously. However, technical advances mean that the opportunities for
invention are increasing. Consider the microprocessor; Someone invented the microprocessor. But by itself, the
microprocessor was nothing more than another piece on the circuit board. It’s what was done with that piece, the
hundreds of thousands of products, processes and services that evolved from the invention of the microprocessor; that
required innovation.
Innovation is an incremental process where an existing product, process or idea is developed further. New product
functions or designs are added to a product range as a means of gaining market share. Innovation in manufacturing is likely
to result in lower costs, and therefore, prices. Innovators need to have a clear understanding of the strategic objectives of
the enterprise and relate them to conceptualize their idea. The idea needs to align to the enterprise strategies and should
differentiate with other similar competitive offerings. The two important aspects of the business strategy view for the
innovator is the competitive positioning for the idea and how the core competencies of the enterprise facilitate the
operating activities critical to developing the idea and sustaining it in the market place. For instance, the iPod wasn’t the
first portable music device (Sony popularized the “music anywhere, anytime” concept 22 years earlier with the Walkman);
the iPod wasn’t the first device that put hundreds of songs in your pocket (dozens of manufacturers had MP3 devices on
the market when the iPod was released in 2001); and Apple was actually late to the party when it came to providing an
online music-sharing platform. (Napster, Grokster and Kazaa all preceded iTunes.).
While they tend to be lumped together, “invention” and “innovation” are not the same thing. There are distinctions
between them, and those distinctions are important. So how do you know if you are inventing or innovating? Consider this
analogy: If invention is a pebble tossed in the pond, innovation is the rippling effect that pebble causes. Someone has to
toss the pebble. That’s the inventor. Someone has to recognize the ripple will eventually become a wave. That’s the
entrepreneur. Entrepreneurs don’t stop at the water’s edge. They watch the ripples and spot the next big wave before it
happens. And it’s the act of anticipating and riding that “next big wave” that drives the innovative nature in every
entrepreneur.
REFERENCES
Ulrich, K.T. & Eppinger, S.D. (2011). Product Design and Development.
McGrawHill. Urban, C., & Hauser, J. (1993). Design and marketing of new products. New Jersey: Prentice-Hall.
Wheelwright, S., & Clark, S. (1992). Revolutionizing product development. NewYork: The Free Press.
Wind, Y. (1982). Product policy: Concepts, methods, and strategy. Reading, Mass: Addison-Wesley.
Souder, W. (1987). Managing new products innovations. Massachussetts: D.C. Health and Company
