Accept Survey Finds Most New Products Failed in 2010
Santa Clara, CA – November 22, 2010
Accept Corporation, a leader in product innovation management, has unveiled the results of its inaugural "Innovation Priorities and Challenges" annual survey conducted in partnership with the Association of International Product Marketing and Management.
The survey found that although most new products launched in 2010 were unsuccessful, companies continue to develop the wrong products and features for their target markets, and that new products often do not align with the company overall strategic objectives.
Major Findings on Why Products Have Been Failing:
- Failure to Incorporate "Voice of the Customer" - Less than 25% of companies surveyed utilize social innovation or social media tools to gather new product or features ideas from customers. More than two thirds said less than 25% of existing ideas translated into new products.
- Failure to Align Product Execution with Company Strategy - More than half of executives surveyed believe their teams are working on the wrong products and features and that less than 50% of their engineering resources are focused on the most important priorities.
- Failure to Automate Product Innovation Processes - Nearly 70% of companies rely on manual processes (including MS Word and Excel) to manage their innovation across the enterprise.
- Failure to Mitigate Planning and Execution Risk - Inability to plan resources to match timing and constraints and the inability to manage product and execution dependencies were cited as the top challenges and sources of risk.
Top Product Innovation Priorities for 2011:
- Translate Strategy into Reality - Company executives are focused on more closely aligning product execution with business objectives to ensure that development teams are working on the most important features at any given time, and that specific product advances are in tune with the company's overall strategic objectives.
- Integrate Voice of the Customer As A Critical First Step - Executives recognize the need to identify more viable product ideas faster by engaging internal and external key stakeholders early in the process and throughout the entire product innovation lifecycle.
- Automation is A Must for Innovation Success - Most companies are planning to apply technology-based solutions to ideation, strategy, product portfolio requirements management and development processes to realize shorter innovation cycle times, reduced development costs and faster time to market.
- Mitigate Risk at Every Stage in the Product Innovation Lifecycle - Many companies plan to implement technology solutions to effectively mitigate risk across their innovation processes, from determining their investment portfolio priorities to managing their performance and execution on an ongoing basis at all organizational levels.
To learn more about the innovation priorities of leading organizations and the strategies they are employing to tackle them, visit: www.accept360.com/resources and download a complimentary copy of "The Return to Profitability: 2011 Product Innovation Priorities Report."
- Survey participants included 280 product executives. 50% of respondents were Directors, VPs, or CxOs and 50% were Managers and below. Respondents were from the Americas (77%), EMEA (19%) and APAC (4%).
- 65% of respondents represented companies with less than $500 million in revenue. 25% ranged from $500 million to $1 billion and a remaining 10% of respondents were from companies with over $10 billion in revenue.
- The survey was completed in September, 2010 through LinkedIn, Accept and AIPMM website, and by email invitation to AIPMM members and Accept customers and industry members.
"2011 promises to be a landmark year for product innovation," said Christine Crandell, SVP of Marketing at Accept Corporation. "A renewed focus on top-line revenues, global innovation hubs offering steep competition, and the role of Web 2.0 in unmasking companies with poor products are all trends that lead to one thing - putting innovation at the top of the corporate agenda. As the study findings show, improving product innovation is now a far more critical aspect of business than it's ever been. No wonder companies are gearing up to make innovation a key strategic advantage and a competitive weapon next year."
Accept Corporation delivers The Product Innovation Management solution that technology-driven companies use to decide which products to bring to market for the fastest time-to-profit. The Accept360 Suite is the only complete end-to-end software solution that tightly links company and product strategy through ideation, portfolio planning, roadmaps, requirements and execution. For more information, visit www.accept360.com or call us at +1.866.423.8376
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