With globalisation we have access to more resources from around the world and this has had an impact on how companies are able to use today’s technology to maximise their chances of being successful. As mentioned by Thomas, R (1993: p.7) a new product is “a multidimensional concept with need-satisfying capabilities not previously experienced by the stakeholders interested in it. The concept offers some form of value to all relevant stakeholders” it is further explained by Thomas, R that the degree to which something has not been previously experienced or its innovativeness can range from incremental improvements (extension products) to significant advances (breakthrough products). Thomas, R expands on this by adding that extension products, which often require fewer resources entail lower risks, compared to breakthrough. Whether a new product is an extension or a breakthrough, the implied promise that it will lead to a sustainable competitive advantage lures firms to use the path of new product development as a means to strategically manage a business.
As most of you may have already seen the new Air multiplier by Dyson pictured left, released back in 2009 this product is an example of how important it is for companies to innovate, not just when trying to minimise costs or manage staff but also when developing products, it has opened new windows for this company and will very likely pose a threat to businesses targeting a similar market.
Source: Thomas, R (1993). New Product Development for Strategic Success. Canada: John Wiley & Sons. 7
No comments:
Post a Comment