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A Climate of Innovation
Know What You're Going
For
Speed!
Speed!
"Speed in product development is a distinct competitive
advantage," Webb says, "but use caution. Speed in
development should never come at the expense of quality."
The advantages are clear-cut: responding to customer needs
and beating competitors to market often result in success,
particularly in higher profitability. Bear in mind that all
products have a limited lifecycle, so getting to market first
generally means sale revenues will be realized earlier and
will last longer than imitation or "me, too" products.
"Speedy development and launch also increase the odds
that the original conception is still in sync with customers'
predicted need," Goozé notes. "A short time
frame makes it more likely that market conditions will be
favorable for the eventual launch."
Both TEC experts warn, however, that speed in and of itself
is no guarantor of success. Many methods involved in getting
to market ahead of others can actually end up costing more
money. Reducing product testing time could result in product
performance problems later on, including added warranty and
servicing costs -- and that can translate into customer dissatisfaction,
a major negative.
"Speed-to-market works best if you're ready to sell
effectively," Goozé says. "That means when
all functions -- engineering, sales, channel partners, customer
support -- are prepared to go."
To further improve the chances of success, Webb advises:
Do your homework. Start the process with clear-cut specifications.
Have the right team in place. Any sincere new product venture
must have a dedicated project leader and multifunctional team
in place at the outset.
For more details on doing it right the first time, see "New
Product Development Process" in Additional Resources
at right.
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