Overview
One of the primary ways that a company can drive profitability and stay ahead of the competition is through new product innovation. When a company is reliant on a static set of products, competitive forces may drive prices down, turning the company's offerings into commodities.
Frameworks
There are no rigid frameworks for innovating new products. However there are best practices that can be employed.
- Creativity and Innovation - in the first step, the firm needs to have a creative process by which they can innovate new products beyond just minor alterations to existing features. This process often requires a different structure from what is required for normal business execution.
- Product Development - innovating new creative products is often not enough to lead to product success. Rather, the product needs to go through a series of test with actual or potential customers in order to determine product market fit.