New Product Success
Enhance Your New Product Development Process with "Value Gates"
SPG Insights
Summer 2004

Abstract:
Looking back over the last ten years of new product launches provides a sobering view; the landscape is littered with innovative new products that ultimately failed in the market place.  It is surprising how many new products fail because they don't create sufficient value for customers, or because their pricing strategy is not consistent with the value the product delivers. Our experience with new product launches suggests that in many firms, there is a disconnect between the new product development process and the realities of the market place. Ultimately, the thing that customers care about is how a new product will impact their bottom line (i.e., its economic value). Yet, surprisingly few firms incorporate a quantified assessment of economic value into the new product development process.

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