When we talk about sustainable competitive advantage, we always mention that innovation is the key to it. When all the companies round the globe know about it why still about 80% of the new product launches fail in the market? Innovation is a key competitive weapon in today’s marketplace. And yet, companies have trouble getting their products to market.
Prominent failures highlighted in the recent press include delays in the launch of Airbus 380 that potentially wiped off five billion Euros of the value of its parent company and Sony’s struggle to make sufficient Play Station 3 consoles for the holiday season. Toy4us was doomed for not meeting the customer’s expectation of delivering toys before Christmas evening.
Studies imply that developing and launching new products is becoming harder. Why is this so? While increased intensity of competition might partly explain this, we believe that the lack of a better understanding of the critical role of supply chain in innovation is one of the key contributing factors.
Traditionally, product launch decisions have been considered a marketing function. The success of a new product and its launch, however, critically depends on all aspects of the supply chain from design to sourcing to manufacturing to distribution. To ensure the success of a product launch, one needs to pay close attention to supply chain design, sales and operations planning, as well as supply chain coordination. The criticality of the various supply chain activities will depend on the nature of the innovation. Finally, companies need to create a launch process, identify key stakeholders (marketing, supply chain, finance, and operations), establish key metrics and develop a dashboard for launch readiness and success
Prominent failures highlighted in the recent press include delays in the launch of Airbus 380 that potentially wiped off five billion Euros of the value of its parent company and Sony’s struggle to make sufficient Play Station 3 consoles for the holiday season. Toy4us was doomed for not meeting the customer’s expectation of delivering toys before Christmas evening.
Studies imply that developing and launching new products is becoming harder. Why is this so? While increased intensity of competition might partly explain this, we believe that the lack of a better understanding of the critical role of supply chain in innovation is one of the key contributing factors.
Traditionally, product launch decisions have been considered a marketing function. The success of a new product and its launch, however, critically depends on all aspects of the supply chain from design to sourcing to manufacturing to distribution. To ensure the success of a product launch, one needs to pay close attention to supply chain design, sales and operations planning, as well as supply chain coordination. The criticality of the various supply chain activities will depend on the nature of the innovation. Finally, companies need to create a launch process, identify key stakeholders (marketing, supply chain, finance, and operations), establish key metrics and develop a dashboard for launch readiness and success
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