Uncovering the keys to new product success

The two fundamental bases of competitiveness as we move into the next century are surely exceptional customer service and product innovation. The customer service challenge has been tackled aggressively, as numerous companies have successfully implemented quality of service programs. As for the other key, for too many companies, it's not so clear that they'll be any closer to the goal of a successful product innovation program in 10 years than they are today. Indeed, the secrets to success at product innovation and the enviable goal of having a steady stream of new product winners seems to be more elusive than ever. But the quest must go on, because the stakes are so high and the rewards so positive. This article explores the keys to new product success. These keys are based on an extensive empirical study of 103 actual new product projects in one industry (see sidebar for more details on the study) - one study in an ongoing research series called NewProd. All the 103 new products studied were launched: two-thirds succeeded commercially, the other one-third were considered commercial failures. By comparing and contrasting how the successful ventures differed from the duds, we were able to identify those characteristics and practices which really discriminate between winning and losing in product innovation.