skip to Main Content
        • Upcoming Events

          Tue 19
          Tue 19

          Making Cents of Your Idea

          October 19 @ 12:00 pm - 1:00 pm

Introducing a New Product or Service

By Kempton Coady

A new product can dramatically change the fortunes of a company, if done right. But the introduction can also cause the company to defocus on the its core capabilities and key sources of sales and profitability. Some extremely successful companies have failed to introduce new products and as a result they went out of business.

These failures take many different forms. When a product does not sell, when it is recalled or discontinued, or when it otherwise does not come close to meeting a company’s expectations or plans, it can be marked as a failure. While failures are expected, some can be so catastrophic they can lead to permanent damage to a company’s reputation, layoffs, and even complete financial ruin.

Use a systems approach to developing a new product or service:

  • Define the product or service
  • Conduct a feasibility analysis
  • Develop the product or service and assemble a team
  • Constantly validate the product or service
  • Implement the product or service
  • Evaluate successes or failures and adapt as necessary
  • Support and final actions

Feasibility

The first thing to determine is whether the product or service will be feasible. You need to determine what is the customer pain or problem. Is the product or service unique, or does it have other qualities which will make it preferred on the market? What is the size of the market for the product?

Detail a specific product or service: Much thought must be given to the design of any product or service.

Consider development costs of development: These are estimated based on hardware and software requirements.

Test the results: Go to prospective customers and evaluate the product or service plan to determine

if it will it succeed. Make a “go or no go” decision, or modify your development plan.

Begin development: If the product or service plan is acceptable, create prototypes. Assemble a team to complete the development. You should also develop any after-sales services or product options that can be sold to customers.

Final steps: Create after-sales support and prepare to introduce the product or service to the market. Establish a budget and metrics.

Consumable associated with the system – are there saleable after sales services or product options?

Validation

Constantly validate your development program to assure that the product or service can be brought in at specification, at the costs you planned, and that distribution expenses make sense.

Implementation

With the correct team, begin to implement the introduction of the new product or service. Constantly evaluate and test your results against customer prospects.

Market introduction

Introduce the product or service through your distribution channels. Assure the proper after-sales support structure is in place to assure success.

If you’d like more help with finding the right solution for housing your startup, InnovatorsLINK offers a detailed Bootcamp course where you’ll learn the details about all your options. Register here

Review the Executive Summaries associated with each course prior to attending the courses.

This Expert Summary is © InnovatorsLINK. For republishing, please contact dlangeveld@innovatorslink.com.

Spread the Word

Share on facebook
Share on linkedin
Share on twitter
Share on email

More To Explore

Bank

Guide to Funding Strategies: Finding the Fuel to Grow Your Small Business

By Denis Jakuc

If you’re starting a business or growing an established one, you need to fuel the effort with funding.

<< back to library

Latest from Information Library

Register a Free InnovatorsLINK Account

Register a FREE account to take advantage of our member benefits. Create a BizLINK listing for business-to-business and business-to-consumer exposure, receive a Main Street Journal newsletter, take part in the forums, and more.