Today, innovation is no longer an option—it has become a necessity in order to survive global competition and remain successful in the long term. Market changes due to international competition and technological or social trends are putting companies under increasing pressure.
Strategic product innovations are the key to responding to these dynamics and securing competitive advantages. According to a McKinsey study successful companies generate over 25% of their turnover with new, innovative products. This proves the value of relevant product innovations. So what makes a product innovation really successful?
Successful product development is always based on thorough planning and clear, realistic goals. It is crucial to be clear about who you are actually developing the product innovation for.
Chances of success and practicability
For product innovations to be successful, they should be strategically embedded in the long-term orientation of the company. Even before development begins, a thorough analysis is necessary to determine whether the planned product has a realistic chance of market success and profitability. It should be taken into account that new technologies often take several years to develop their full impact. Realistic feasibility is just as important: capacities, resources and expertise must be honestly assessed and, if necessary, expanded in good time. A large number of new features may seem tempting, but they carry the risk of delaying development processes and creating exaggerated customer expectations that are difficult to meet. It is often more effective to limit the innovation to its core benefit and offer fewer, but better implemented functions.
Relevance and acceptance
Innovation for innovation’s sake rarely leads to success. A product innovation is only sustainably successful if it offers the target group clear added value. Customers must immediately recognize the benefits and understand why the product is relevant to their specific needs. This requires a precise analysis of the target groups and a deep understanding of their requirements. To achieve greater acceptance, barriers for potential customers should be kept as low as possible. Test opportunities or a simple switch to the new product can significantly increase acceptance of the innovation. Ultimately, even the best product is worthless if it does not reach its target group and does not sell.
Differentiation and brand loyalty
Innovation is an important prerequisite for standing out from the competition. For example, the development of an innovative technology can represent a decisive competitive advantage. However, for this to actually occur, the product must have a clear unique selling point and be clearly distinguishable from competitor products. The new product should embody the brand values and fit in with the brand identity. It this is realized, an authentic brand image is created that reaches the right target groups and positions the company as an innovative pioneer in the long term. This makes it more difficult for competitors to stand out and succeed in the market.
The role of industrial design
Really understanding the customer
Designers think differently
