New Product Development Strategy:
Prioritize Development Pipeline

As noted in step six of Strategyn's methodology process, a company has three options for growth once it has targeted the best opportunities. After properly positioning current offerings, a company’s second option for growth is to analyze the projects it has under development to see whether or not current efforts are in sync with market opportunities.

Most companies don't know which product and service concepts under development will be winners and which will be failures because managers lack the market data required to make such an analysis. As a result, managers often feel compelled to cover all the bases; they initiate hundreds of development efforts, spread resources too thin, and are reluctant to kill projects already under way—resulting in massive inefficiencies in innovation.

Using outcome-based research data as a foundation for product or service evaluation, managers are able to quantify the amount of value any proposed idea will likely deliver and in which market segment a product's success is most likely. This capability enables companies to:

This analysis often results in increases in revenue, reductions in development cost, and dramatic improvements in the win-loss ratio—with profound positive effects on the bottom line.