Managing Innovation: Integrating Technological, Market and Organizational Change, 5th Edition

Chapter 9

Creating New Products and Services

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In Chapter 5 we examined the range of sources and triggers for innovation, and identified some processes and tools to help to exploit these. In this chapter we focus on the more specific issue of developing new products and services. We begin by introducing the most common processes for development, the stage-gate and development funnel. We then review the generic factors that influence product and service success and failure. The central part of this chapter looks at how the market and technological context influence the process of development and commercialization, for example, how the development of radical is different from more common line extensions. Finally, we explore the similarities and differences between developing new products and services. In the most advanced service economies such as the USA and the UK, services create up to three-quarters of the wealth and 85% of employment, and yet most of what we know about managing innovation comes from research and experience in manufactured products.

9.1 Processes for New Product Development

We discussed the broader organizational factors to support innovation in ...