NEW-PRODUCT CHANGES

a product change is a change in the organization's product or service output. new product innovations have major implications on organization, because they often are outcome of a new strategy and may define a new market.

the innovations of a new product is difficult, because it not only involves a new technology but also must meet costumer's need. in most industries, only about one in eight new product idea is successfully.. companies that successfully develop new products usually have following characterstices.

people in marketing have a good understanding f costumer needs.

1. technical specialists are aware of recent technological developments and make effective of new technology
2. members from key departments-research,marketing,manufacturing-corporate in the development of the new product.

these findings mean that the idea for new product typically originates at a lower levels of organization just as they do for technology changes.the difference is that the new product idea flows horizontally among departments. product innovation requires expertise from several departments simultaneously. a new product failure is often the result of failed cooperation.

one approach to successful new product innovation is called the HORIZONTAL LINKAGE MODEL, in this model the research,manufacturing and marketing must simultaneously develops new products. people from these departments meet frequently in teams and task forces share ideas and solve problems.

today's increasingly sophisticated consumer is demanding an ever-increasing role in product development and marketing. empowerment in today's competitive environment goes beyond employees to include suppliers and consumers in the product development process,