In the past 30 years, there have been many studies on the factors causing success and failure in product development (some reviews are Ali, 1994; Balachandra and Friar, 1997; Cooper, 1996a). Balanchandra and Friar's review in 1997 of R&D and new product development studies found:

     there were many different factors identified;

     the magnitude of the effect and even sometimes the direction varied in
        different studies;

     the meaning of similar factors in different studies varied.

They did state there were three common contextual variables, which need to be considered when identifying important factors for product success:

    1. Nature of the innovation.

    2. Nature of the market.

    3. Nature of the technology.

The importance of the market, technology and organisation factors varies according to whether the product is an incremental or radical innovation, the technology is low or high and it is a new market or an existing market as shown in Table 1.3.


Table 1.3 Important factors for different levels of innovation, technology, market

Technology Market Factor     Market Technology Organisation Incremental innovations       Low Existing Very important Less important Very important Low New Very important Less important Very important High Existing Very important Very important Important High New Important Very important Important           Radical innovations       Low Existing Important Important Important Low New Less important Important Important High Existing Important Very important Important High New Less important Very important Very important

Source: After Balachandra and Friar, 1997.


The market factors are more important in the incremental innovations than in the radical innovations. The technology factors are important in products that have high technology, and the organisational factors in products with low technology in existing and new markets, and high technology in new markets. Balachandra and Friar noted that this was their best guess in 1997, but certainly it is a good basis for starting analysis of product successes and failure in the company. Many of the factors either identified as leading to success or differentiating between success and failure are under the control of the company. Some overall company factors in the product development programme are:

     product development integrated with a clear business strategy;

     systematic PD Process;

     relating the product to the consumer and the marketing;

     knowledge and skills of people;

     regular evaluation.

Many studies have shown that the product development programme needs to be built from the business strategy of the company, and detailed in the innovation and product strategies. If this is not done there is a lack of direction and focus in product development that leads to failure. Over the last 20-30 years, a recognised product development process has developed which is the basis for successful product development; specific activities may vary from company to company but the overall structure is the same. A basic factor that the company needs to recognise is that the product is being designed for specific consumers or industrial customers, and success will be realised if a strong consumer relationship is built up with the product. Several studies have confirmed that the product qualities are important to success, and that there is indeed demand for a superior product that delivers unique benefits to the user (Cooper, 1993). Knowledge of the people in the company is important, with factors identified such as 'marketing and technology are strengths', 'training and experience of own people', 'commitment of project staff'. The product development pro- gramme is a complex mixture of specific product development projects that need to be integrated for overall success of the programme and the programme needs to be evaluated regularly for overall success of products as well as efficiency in the running of the programme.

There are also important factors for successful products in the successive stages of the PD Process:

     Stage 1: Product strategy development - integration of the
        product development programme with the business strategy, clear
        description of the market and consumers, identification of market
        and consumer needs.

     Stage 2: Product design and process development - quantitative
        design specifications, multidiscipline integration, use of new
        techniques, feasibility analysis.

     Stage 3: Product commercialisation - multifunctional integration,
        planning and scheduling, market testing, business analysis.

     Stage 4: Product launch and evaluation - organisation and control,
        fast problem solving, evaluation of launch, production, distribution and
        marketing, evaluation of outcomes.

Throughout the PD Process there is a need for clear direction at the beginning of each stage, for example at the beginning of Stage 2: Product design and process development, the product design specifications state the consumer's product concept, the quantitative targets for the product qualities, processing parameters and marketing needs. There is also a need for integration of people with different skills and knowledge from different departments. Most important there is a need for constant evaluation throughout the project in feasibility studies, business analysis and post-launch studies.

Fundamental factors in the planning and organisation of the product development project are:

     on-going communication;

     clear aims, objectives and constraints;

     quality assurance of the development;

     final evaluation of the project.

The people in the project need to know what is to be achieved and what other people are doing; this gives an integrated focus to the project, which will lead to success. Studying the quality of the project in its execution and in the end results will increase the chance of success in the future. To summarise, there are many company-controllable factors related to product development success; the importance of each can vary from project to project. Some important factors, shown in Table 1.4, are common to many projects.


Table 1.4 Company-controllable factors in product success and failure

Consumers and markets Consumers Closeness to the customer/consumer in product development The product designed for the consumer's needs, wants and value Marketing A strong market orientation Product Product The product superior to competitors The product has different, unique benefits Project development process PD Process Multistage, multifunctional disciplined process with clear decision points Integration of product, marketing, production, testing and evaluation Stage 1. Product strategy development Product strategy related to business and market strategies Clear and early product definition More predevelopment work before product design Product evaluation and screening to give sharper project selection decisions Stage 2. Product design and process development Clear product design specifications Creativity in design Integration of product design and process development Consumer/customer involvement in design Stage 3. Product commercialisation Pre-commercialisation business analysis The new product marketed by the design team to the production and marketing personnel Integration of production, distribution and marketing planning Costs definition and reduction Product quality sustained Stage 4. Product launching and evaluation A well-conceived, properly executed launch with a solid marketing plan Evaluation measures set before launch Timing of launch optimised Good control methods Post-launch evaluation and follow-on. Product development management Good technical/manufacturing/marketing interfaces The right organisational structure and environment Project evaluation and decision-making procedures Completeness, consistency and quality of execution of project Good project leaders and a core group Time and cost control; continuous evaluation of project and process Company Company management Top management support Product development in business strategy Resources in place - time, money, people Top management in major decision making Company knowledge PD project synergy with company's resources/skills/knowledge Technological synergy and market synergy with company resources/skills

Although the company's capability factors are the dominant factors related to product success, they need to be combined with the environmental/situational variables, such as the market characteristics, in selecting products for development (Cooper and Kleinschmidt, 1987). The interrelationships of the product development with environmental factors such as society, consumers and technology need to be considered not only in project selection but also throughout the project and particularly before the product launch. Environmental factors are more important with pioneering innovation than with incremental product development, because often the environment is unknown (Ali, 1994).