Why products fail

I recently found some interesting research on why products fail, carried out by Stanford University by Modesto A. Maidique Billie Jo Zirger and reported as “Towards an Evolutionary Model of the Product Development Process”. The study investigated 224 product innovations at 100 electronics companies with sales averaging $20M and interviewed managers involved in the process to get their ideas on why the innovation failed.

The key conclusion for me was that all causes of failure are amenable to improved management practices. The usual external excuses – the economy, globalisation – are not cited as the reason the products failed. 16% cited marketing as the cause of failure, 13% said that there was too small a benefit/cost ratio for the customer and 7% cited the difficulty of market development.

1 comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: