The Product or Service Innovation Charter - Doubling the chance of success.
According to a 2007 Product Development Management Association PDMA study, 29% of the firms interviewed had a formal PIC and 75% of the firms had some type of new product policy. This directly impacts the success of developing a new product. On average, 50% of new products in companies that have a defined new product development process will succeed, while only 21% of those without a defined process will succeed.
The Product (or Service) Innovation Charter (PIC) leads to success. As mentioned in previous posts, a PIC is to guide the development of new product strategy as a worthwhile investment. Whilst a marketer may be asked to work on a product development or launch team, it’s essential to understand the purpose of the product and the associated marketing elements including how they all fit into the business’s strategy. This direction will assist you in assessing, among other things, objectives, markets, and goals as well as developing pertinent product-specific success metrics and marketing strategy. A typical PIC is a written document developed by senior management to chart the company’s new product strategy and guide the product team. It usually consists of four sections: market background, target market, goals and objectives and special considerations.
Market Background
The intent is to validate the strategy and purpose of the project as it is aligned with the strategy.
Address the elevator pitch that answers “Why are we doing this project?”
Connects the project with the corporate strategy and goals of the business unit.
Defines the role of the team in developing project/service.
Provides an outcome of why the project is being pursued is outlined.
Target Market
Provides clarity around the environment are we playing in and the respective technology.
Defines at least one clear technology dimension.
Core competencies
Existing technologies
Defines at least one clear market dimension.
Customer segment
Customer benefit
Distribution channel
Defines competencies and competition.
Goals and Objectives
Focus should be operational, tactical and measurable.
Simple long and short term
Definitions and Accomplishments
Metrics through
Profit
Growth
Market share
Special Considerations
Agile methodologies and approaches
Internal Management requirements
External Legal/regulatory requirements
By incorporating these components into your PIC, the chances of succeeding with future new product development project will increase considerably.
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