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12 - Minimizing technological oversights: A marketing research perspective

Published online by Cambridge University Press:  07 October 2011

Jehoshua Eliashberg
Affiliation:
University of Pennsylvania, Philadelphia, PA
Gary L. Lilien
Affiliation:
Pennsylvania State University, University Park, PA
Vithala R. Rao
Affiliation:
Cornell University, Ithaca, NY
Raghu Garud
Affiliation:
New York University
Praveen Rattan Nayyar
Affiliation:
New York University
Zur Baruch Shapira
Affiliation:
New York University
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Summary

Introduction

… if the weight of invention or discovery is one, the weight to bring it to actual development should be ten and the weight to produce and market it should be one hundred.

Masru Ibuka, President of Sony

Despite increasingly experienced management, the majority of new products fail to achieve their anticipated level of success in the marketplace. The causes for that lack of consistent market success have been the subject of much academic study (Lilien & Yoon, 1989). That literature is consistent with the results of a recent survey by a consulting firm, Ltd., that reports that among 154 senior marketing officers of U.S. corporations:

  • 79% believe the new product development process could be improved

  • 58% do not rate R&D as a successful source of new products

  • 46% do not rate R&D's contribution to new product development as significant.

As for the reasons for their perception of why this process is less than ideal, consistent with the findings of Booz, Allen, and Hamilton (1982) they report:

  • Products don't offer a competitive point of difference (52%)

  • Product doesn't deliver as promised (43%).

In addition, 61% of the respondents expect that 30% or more of their sales will come from new products within the next 3–5 years. Finally, EFO reports that they have conducted this research periodically and the companies are getting more concerned: firms see new products as a source of hope, but they are showing ever more frustration over their internal processes for developing successful new products.

Type
Chapter
Information
Technological Innovation
Oversights and Foresights
, pp. 214 - 230
Publisher: Cambridge University Press
Print publication year: 1997

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