From Old to New Models of Product Development
The Old Way of Product Development
Creativity is a high-risk behavior. Prolific inventors such as Thomas Edison created hundreds of product ideas, but brought only a small percentage of them to market. Why? Not all product ideas are the right product at the right time for the right market.
Just because you have an idea doesn't make it a practical, profitable or timely innovation. Having lots of ideas can be more detrimental than profitable. The idea master can get stuck in the creative stage and forget to design, test, evaluate and produce the product to meet the customers' needs for a solution. The technology might not be available yet. The financing might not fit that particular project scope. There are just as many reasons a new idea won't work as there are reasons it will work.
The old way of product development was a slower paced methodology. Bring a product to market and if it doesn't work, change it, fiddle with it, find a few customers who want it and charge a high price for the exclusivity, if nothing else.
In today's world of global communicatons, knock-off manufacturing, and an abundant supply of eager entrepreneurs who can leapfrog over their competitor's established technologies, the old way of product development will drive you into bankruptcy.
Change is the name of today's product development world. It's more than a game, it's a system.
Knockoffs, creative lightning strikes, and entrepreneurial high-risk behavior
Global manufacturing and shipping has redefined the knockoff reality of American manufacturing. Small manufacturers used to be able to count on a 2-3 year headstart on competitive borrowing of their product releases, but with outsourcing, the Internet and heightened competitive demand for a constant flow of new products in the consumer marketplace, many report they can only count of a 9-12 month headstart on the competition.
But competition is only one side of the innovation coin. The internal process of product development is also a large factor in what products are developed, their role in the product line, and costing factors. The creative brainstorm in the middle of the night that will take a company to a new niche, or into new technologies is not an effective corporate strategy in today's world of lean manufacturing, short product lifespans and distribution-driven marketing.
The entrepreneurial segment of business is growing. Large corporations are slower to react to market conditions and the nimble strategies of startup and small businesses have had a major impact on the speed of technological developments, specialized designs, and custom approaches to customer services. But more than 80% of startup companies don't last a year. That's high-risk behavior!
There is more to innovation than having a brillant idea. This is where innovation management steps in to put the idea into its environment, an ecosystem made up of the company, customers, suppliers, employees and the industry, niches--and society at large.
Old forms of Product Development have melded into new systems. One system is AIM -- Active Innovation Management. AIM helps you take aim for specific solutions to solve specific customer or prospect frustrations or goals. This step by step process helps you define the need, creatively develop solutions and prepare the new product, service and/or system for distribution through established and new channels that your customers use for purchasing solutions.
Just like shooting a gun into the air doesn't hit a target...innovating without a target goal and system is high risk behavior. Take AIM!
For more information about the AIM system, contact The Innovation Solution Center for training, tools and in-house workshops. We coach highly creative people in how to turn ideas into realistic solutions.