Applying a sound structured approach to NPD and having effective pro-
ject management should move the odds in your favour. Products need a
product champion – a leader/manager who gets things done. In turn, this
leader needs the support of the organisation.
■ Managing innovation
The term ‘innovation’ means different things to different people, with
common definitions relating to scientific advance and the development of
high-technology products. However, the reality is that innovation is a far
broader activity. Essentially, innovation is about changing established
products, processes and practices. Innovation must blend creativity, clear
thinking and the ability to get things done into one process. Ultimately,
the market place will judge innovation. New ideas need support, commit-
ment and resources, if they are to be effectively implemented.
Product development and innovation 221Illustrative Example 10.2
Dasani: The ‘Del Boy’ effect
The growing importance of the bottled water market is recognised by many beverage
providers. Coca-Cola acknowledged this by launching ‘Dasani’. However, the company faced
a negative reaction in the UK, when newspaper articles revealed that the UK product was
essentially tap water which had been treated, bottled and marketed under the ‘Dasani’ label.
Adverse public reaction was fuelled by parallels to the BBC’s popular situation comedy ‘Only
Fools and Horses’, where the central character ‘Del Boy’ attempts to sell bottled tap water.Organisations cannot remain focused on the past. The static organisa-
tion that believes the ‘old ways are the best’ will flounder. Innovation
means change. Such changes are not normally single events, but are com-
plex combinations of actions and functional activity. Note, innovation and
invention are not one and the same, as innovation is concerned with the
commercial application of ideas.
Senior management should address the issue of innovation and create a
culture and infrastructure to support the process. After all, organisations
that continue to learn and effectively translate this learning into product
offerings are the ones who will prosper.
Innovation creates the environment for successful product develop-
ment. Product improvement and modification, product imitation and
product innovation (where the product is truly new or novel – see Figure
10.1) all stem from the overall process of innovation.
Having established the importance of innovation, how do organisations
facilitate the process? Figure 10.3 summarises common enablers. Teamwork