Every new product can succeed...

Start-up businesses and new products fail at an extremely high rate. Despite changes in technology that allow us to measure everything about our customers, and then test every message and product. virtually - without even going into production - and before they are launched, new products continue to fail around 90% of the time in the first year.

Why hasn't this failure rate improved? I'm guessing that it is because, for the most part, large and small organizations continue to believe that the attitudes, interests, opinions, behaviors, and experiences of those designing and selling the product are a good gauge of their customers, and so the expense and time of research and testing can be avoided.

Robert Cooper, noted author of the “stage-gate” method of product introduction says, “…there are new ingredients for success: three are advanced technology, superior intelligence, and rapid mobility.” He emphasizes that in this horse race - "only one in 10 crosses the finish line", but that winning at new products is "more like a game of five card stud poker" where the players place bets after each new card is played. Like the card game, in the game of new products, the stakes rise exponentially as each hand is played and who will be the winner becomes clearer. The amateur in the card game will start on an even playing level with the professional, but the difference is that the amateur doesn't count cards - they operate on hunches and speculation. Unfortunately, professionals and amateurs alike - in the game of new products and business start-ups - operate without gathering the right information and lacking solid "betting" criteria.

Success is in the hands of the people in the organization, if they know successful execution depends on a few key activities - most of which involve gathering, quantifying, and analyzing data. Most critical to this success are a good assessment or audit early in the process, and completing thorough market research and analysis before launching the company or new product design. If this is done right, implementing the launch and carrying out the business and marketing plan can be done flawlessly.

Well, that is easier said than done. Where to start?
Consider that everything begins and ends with knowing yourself and knowing your customers.

Stay tuned for some examples - we'll analyze some product successes and failures. Let me know if you have a good example - experience is always the best teacher.