I just saw a report on a study that showed that more than half of new product introductions [NPI] fail.
There are many components of introducing a new product and in most cases there is not a formal process in place.
In the beginning…
Someone will come up with an idea for a new product or service. The idea can come from a customer or anywhere else.
Marketing and others will determine if this new product or service makes financial sense for the company. If they create this product or service, can they make a profit? Is there a demand for it? It needs to make business sense to pursue it.
If they determine that it makes business sense, many departments will begin working on their part of the ‘whole’ project.
Marketing will begin identifying all of the marketing communications [marcom] that needs to be created to support the roll out. The list includes things like brochures, flyers, demonstrations, web pages, Email campaigns, naming your product or service, branding, white papers, webinars, pricing, sales channels, sales training, packaging and more.
Depending on the size of the company, there could be many people involved in the development of new product introductions. Each will go through a process to produce their deliverable. That process will go through the following steps at a minimum: create, edit, approve and release.
There is a person responsible for overseeing these activities and they will need to make sure that everyone is telling the same story.
The finish line…
At product introduction, the many departmental parts must come together to form the ‘whole’.
An NPI project includes managing the many different processes and managing the information created by all of these activities. Most of you have seen that there is not a formal plan for bringing all of the parts together and someone is inevitably late.
PLM software is designed to manage these kinds of activities. It can help each department work collaboratively as well as provide the control and visibility to help departments complete their work on time.
It can be particularly effective in managing the marketing tasks of new product introduction. I can’t see how it wouldn’t improve the failure rate.
Contact me to learn more…