New Product Development

New product costs have skyrocketed in recent years--one of the reasons that marketers are increasingly interested in honing the discipline down to a science. By some estimates, the cost of introducing a new packaged-goods brand runs to $20 million or more. Historically, eight out of 10 products fail in the marketplace. With the astronomical costs of development programs, these failures are a significant drag on corporate earnings.

That is why one advertising magazine, Adweek, and Group EFO Limited of Weston, Connecticut, sponsors their annual Innovation Survey. It is American's most authoritative poll on new product development. It tracks not only the factors contributing to new product failure or success, but the marketing community's own views on American's most innovative companies and brands.

Since it was developed by Group EFO president Edward F. Ogiba, the Innovation Survey has become the most authoritative poll on new product development. Each participant in the survey receives a 50-page report with tabulated results and analysis.

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nslate into a reliable product. Instead, it often leads to an overdesigned product with reliability problems. If, instead, a product engineer designs to a reliability goal, the result should be an assemblage of high-reliability components that delivers its intended function with a high probability of success over its intended use period. Many techniques have been established for measuring and improving the reliability of a product design. One of the most powerful is failure mode, effect, and criticality analysis (FMECA), an extensive and straightforward method that identities potential failure modes--the ways in which an engineered system could fail--and the effects those failures could have on the customer's use of a product. FMECA attempts to detect and evaluate potential product-related failure modes by ranking each possible mode by both the probabilities of its occurrence and detection and the severity of its effects. The goal is to develop priorities for corrective action based on the estimated risk. The method is also applicable to safety, maintainability, and service issues. FMECA evolved from the normal effort engineers use to sort out the ways in which a new product could fail, think of preventive measures to
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Approximate Word count = 2244
Approximate Pages = 9 (250 words per page)

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