Top Ten Reason for Product Release Failure
Pillar Product Design recently attended the local PDMA (product development management association) seminar on Mercer Island, WA earlier this week. It was presented by 2 very talented individuals who have a large and extensive back ground in developing products for fortune 100 corporations like IBM, Boeing, Motorola.
An interesting statistic that I pulled from the meeting was that in the US alone corporations spend over 260 billion in developing new products. On average a large size corporation will have roughly 3000 unique ideas on an annual basis. Of that 3000 ideas 100 will be explored. Of that 100 ideas explored 10 products will be fully developed. Of the 10 products fully developed 2 products will make it to the actual market. This filtration really pushes the innovation envelop to make sure that the product is actually an improvement and has a definite value proposition.
The 10 causes for in-effective launches for products are as followed:
1) build a better mouse trap. Does your product stand out from other products?
2) value and value proposition not understood by both the developer and the end consumer.
3) Product escape. Product idea is released to the public early before the designated launch.
4) Poor messaging or product positioning.
5) Weak product management. UN-realistic delivery goals and profit expectations.
6) Didn’t understand the market.
7) Not a whole product. Missed opportunities to delivery a fully thought out product.
8) Weak different from other similar product already on the market. Did not test against real world competition.
9) Poor or weak product distribution channels.
10) Didn’t listen to end customers. Biased early product development focus group flaws.