Three Tools to Manage Innovation Risks Effectively
New product development (NPD) naturally involves uncertainty and risk. These risks include financial viability of a project, customer acceptance, and technical capability. Other risks involved with conducting an innovation project include impacts to operations, supply chain, existing product lines, brand leverage, and reputation. NPD projects are also influenced by regulatory requirements, quality standards, and both employee and consumer satisfaction. It’s a wonder that any company even pursues innovation projects!
Yet, sustainable innovation leads to higher rates of profitability, greater market share, and longer term success (1). Thus, businesses and organizations must learn to manage the complicated trade-off between risk and reward within an NPD framework.
In this paper, we discuss three of the critical, large-scale risks that are common amongst NPD projects. Then, we offer three, easy-to-use tools that you can implement to help manage the risk-reward trade-off inherent in innovation.
- Liquidity Risk (program return map)
- Market Risk (market research tests)
- Technology Risk (stage-wise development)
To Continue Reading:
Premier Members: Please refer to the thought leadership paper “Three Strategic Risks in NPD and Tools to Manage New Product Development Risks Effectively“. Become a Global NP Solutions Premier Member today for full access to monthly innovation thought leadership papers, the popular weekly Idea Incubator blog, and our monthly newsletter, The Village, with recommended reading and innovation fun facts. All GNPS Premier Members save up to $200 on NPDP Certification workshops.
All others can download this informative white paper for just $8.95 – download now and we’ll pay the sales tax for you!
© 2014 Global NP Solutions
Your Strategic Innovation Partner for NPDP Certification and Project Management Training