PRODUCT DEVELOPMENT AND THE NEW INDUSTRUAL COMPETITION
New products have long been a source of fascination and excitement. Novel industrial artifacts displayed in the famous Crystal Palace at the great exhibition in London in 1851 generated great enthusiasm .Three-quarters of a century later, Hendry ford’s introduction of the long-awaited model a made front-page news as it created near riots outside dealer showrooms. Today, Gillette’s sensor razor extensive coverage in the national papers such as the wall street journal and USA today, and even plays on the evening television news.
But though new products still evoke fascination, in the competitive environment of the early 1990s their role goes well beyond curiosity and excitement. The development of new products has become a focal point of industrial competition. For senior managers around the world, developing better products faster, more efficiently, and more effectively is at the top of the competitive agenda. Evidence is mounting that effective design and development of the new products have a significant impact on cost, quality, customer satisfaction and competitive advantage
THE DRIVING FORCES BEHIND THE NEW INDUSTRIAL COMPETITION
The new industrial competition that focuses so heavily on product development is driven largely by three forces that have emerged over the past two decades in many industrial worldwide. The emergence of intense international competition; the creation of fragmented markets populated by demanding, sophisticated customers; and diverse transforming technology change have combined to push new product development to the center of the playing field in the competitive game.