New-product success in the chemical industry

What separates new-product winners from losers? An understanding of what distinguishes new-product successes from failures is vital to improving new-product performance.Evidence supports the notion that the new-product process—events, actions, and directions that take place in a new-product project from idea to launch—is fundamental to new-product success. Indeed, process issues are potentially more critical to success than the nature of the project. For example, new-product process issues are more important than synergies, market attractiveness, or the competitive situation.New-product success factors were investigated through an in-depth study of 103 new industrial product projects in one industry (the chemical industry) and on an international basis. All products studied had been launched into the market and included both winners and losers. A conceptual model of the factors that impact on success was used from previous studies and led to the identification of six blocks of characteristics that capture factors related to the new-product process. (In addition to blocks of variables that captured the new-product process, characteristics that captured the nature of the project were also investigated, however, those results are beyond the scope of this article.)The results of this study revealed a clear pattern to success. Provocative differences emerged between successful and unsuccessful new-product projects. These results led to guidelines for improving the way the new-product process is managed.