NEW-PRODUCT SUCCESS IN THE CHEMICAL-INDUSTRY

What separates new-product winners from losers? An understanding of wh at distinguishes new-product successes from failures is vital to impro ving new-product performance. Evidence supports the notion that the ne w-product process-events, actions, and directions that take place in a new-product project from idea to launch-is fundamental to new-product success. Indeed, process issues are potentially more critical to succ ess than the nature of the project. For example, new-product process i ssues are more important than synergies, market attractiveness, or the competitive situation. New-product success factors were investigated through an in-depth study of 103 new industrial product projects in on e industry (the chemical industry) and on an international basis. All products studied had been launched into the market and included both w inners and losers. A conceptual model of the factors that impact on su ccess was used from previous studies and led to the identification of six blocks of characteristics that capture factors related to the new- product process. (In addition to blocks of variables that captured the new-product process, characteristics that captured the nature of the project were also investigated, however, those results are beyond the scope of this article.) The results of this study revealed a clear pat tern to success. Provocative differences emerged between successful an d unsuccessful new-product projects. These results led to guidelines f or improving the way the new-product process is managed.