Transforming the Nature and Scope of New Product Development
Journal of Product & Brand ManagementTheme: Theoretical discussion integrating blue ocean strategy in the new product development process.
Summary: The authors address the issue of the inordinately high failure rates of new products that only tend to increase as competition intensifies in an industry. They discuss common techniques employed by companies for mitigating failure risk associated with new products, such as line and category extensions that leverage brand equity. They argue that while the new product development process has become more structured and reliable over time, incorporating the voice of the customer, careful market segmentation, differentiation, and gated development stages, these approaches ultimately lead to mere incremental innovations, which still face intense competition. To avoid the competitive morass, the authors propose rethinking the new product development process by incorporating blue ocean strategy and specifically recommend performing a six paths analysis before developing any new product ideas. Combining blue ocean strategy’s six paths and four actions frameworks into a ‘Strategic Opportunity Product Development (SOPD) matrix,’ they attempt to equip product developers with a tool that can be easily integrated early on in process to reduce the risk of failure.
Reference: Pitta, Dennis, and E. Pitta. "Transforming the Nature and Scope of New Product Development." Journal of Product & Brand Management 21 (2012): 35-46.