How product managers can master product innovation management Today we’re talking about product innovation management, one of the seven knowledge areas for product mastery. These are the knowledge areas that make us successful as product masters who know how to create new value for our customers. They also lead to more influence in our organizations. This is the second episode of a series where we’re diving into each of the seven knowledge areas. Summary of topics discussed for product managers Watch the full interview with PowerPoint slides on the Product Mastery now YouTube channel. [2:06] What is product innovation? PDMA defines product innovation as the creation and subsequent introduction of a good or service that is either a new or an improved version of previous goods or services. Product innovation involves creating value, which is judged by the customer. [3:23] What factors influence product innovation? There are four categories of factors that influence product innovation: * Controllable * culture * strategy * capability * organizational structure * finances * Uncontrollable * competitors * government policies and regulations * international environment * Internal * board * management * marketing * production * finance * purchasing * External * consultants * suppliers * regulators * agents * trade * customers [5:19] Why is product work hard? Successful product innovation is challenging because it doesn’t just happen by accident. As much as 70-90% of consumer products fail to meet their revenue expectations. This means organizations are wasting financial and human resources at a tremendous rate. Your competency with these concepts in the Body of Knowledge helps equip you to turn this around and be more successful creating products customers love and that generate revenue for your organization. Some famous examples of failed product launches that missed some aspect of product innovation are: * New Coke * Apple Newton * Blackberry phone * Nintendo “Virtual Boy” * Segway * Gerber “Adult” Food “Singles” [7:20] What factors influence product innovation success? I want you to be aware of success factors at three levels: * project * people and environment * strategy [7:39] Success factors at the product project level * Develop unique, superior products, not me-too products * Have a clear focus on a target market segment * Do your pre-development homework * Develop a clear, concise and stable product definition from the beginning * Adequately plan and resource the launch * Execute with speed—but not at the expense of quality of execution. This creates a tension that product teams live with—speed with quality [9:01] Success factors at the people and environment level * Organize project teams to fit the constraints and complexity of the project * Create the proper climate and culture to support innovation and remove innovation barriers * Enlist top management support [9:35] Success factors at the strategy level * Have a product innovation and technology strategy that is aligned with organization strategy * Leverage core competencies * Target attractive markets * Use portfolio management * Use the necessary resources for each project [10:34] What does research tell us about product innovation success factors? The PDMA Comparative Performance Assessment Study has ...