2021 is a Wrap; What’s Next for 2022?
Product Opportunity Mapping is an advisory service that helps companies identify, evaluate and select new products opportunities which will grow and diversify their revenue and strengthen corporate resilience.
Every year, I survey my customers, session attendees and other executives about their current and future new product development efforts.
2021 is a Wrap - Five Key Things I Learned:
#1. Companies are Investing More into New Product Development Initiatives
Likely as a reaction to the pandemic and an uncertain business future, more and more companies are launching or planning new product development initiatives to grow and diversify their revenue and strengthen corporate resilience.
During the latter half of 2021, attitudes shifted from waiting for the pandemic to end to realizing that they needed to learn to live with an ongoing endemic (and start planning accordingly).
Interestingly, two-year targets to generate revenue from products that do not exist today stayed roughly the same (perhaps meaning optimistic and pessimistic attitudes are cancelling each other out).
(In response to this, I plan to offer a wider range of Product Opportunity Mapping sessions including ones on how create a pipeline of continual new product opportunities and managing them as a portfolio.)#2. Companies are Using Product Development Programs for Reasons Other Than for New Product Development
#2. Companies are Using Product Development Programs for Reasons Other Than New Product Development
To my surprise, product development programs and education sessions were being used for reasons other than developing new products.
Increased employee turnover was significant for many companies (commonly referred to as the “Great Resignation”) and getting employees involved in new product development and directly solving customer problems is a way to improve employee engagement (which is a key factor in reducing turnover).
New product development programs (or variations thereof )are also being used to tangentially to bring in external ideas, provocative voices and new ways of thinking to internal teams as well as to identify new market opportunities.
#3. Certain Product Development Best Practices Stood Out
Surveys of customers consistently identified two key best-practices as the foundation for effective new product development initiatives.
The first is to focus on “problem selection” which has two parts: 1. Only invest in a new product that can solve a quantifiable problem for a customer; and 2. Make sure the problem is worthwhile solving by asking if it creates enough economic value for enough users and is the investment the best use of company resources.
The second best-practice that was consistently highlighted was the importance of utilizing a well thought-out framework to develop new products. For their first new product development efforts, many companies had the tendency to “wing it” but when they established their own structured approach or adopted the Product Opportunity Mapping framework, they achieved better results faster. Further, regardless of the framework used, it needs to be adaptable; updated over time and eliminate internal bias.
#4. Don’t Develop an Individual Product; Instead, Develop a Product Pipeline
Many companies start a new product development initiative by focusing on a single opportunity or a series of new products sequentially.
Those who have gone through the process a few times see the value of investing in a system that generates multiple opportunities on an ongoing basis. After realizing that failure rates are high and different products advance at different rates, more companies are shifting their investment into managing a portfolio of new product opportunities as this generates a higher long-term product ROI.
#5. Real-Life Stories and Lessons Learned are Incredibly Valuable Teaching Tools
Customer surveys consistently generated positive feedback regarding the use of real-life stories to demonstrate key principles of new product development. Real-life case studies are very powerful tools to teach big picture skills as well as to understand the nuances behind the new product development process.
(In response, I plan to seek out more stories from recent product launches that both succeeded and failed)
Bonus: Feedback on the Product Opportunity Mapping Framework
Finally (and with an opportunity to blow our own horn), customers were very receptive to Product Opportunity Mapping content and sessions:
The overall rating for a Product Opportunity Mapping session was 8.53 out of 10 (a low of 7 and a high of 10) and 93% of respondents indicated they would “Absolutely” recommend the framework to a friend or colleague.
Very positive direct feedback received on sessions and how it was presented by Bruce Alton (“Very confident, kept it simple and focused on the most important content - clear, concise and practical”; “I’d totally go see him speak again”; “We used this methodology in our quarterly planning sessions yesterday for designing a new product. It worked extremely well”; “Great job. Engaging and insightful”)
But I apparently talk too fast (“Need to slow down your speaking - sometimes it gets too fast for members to understand the point you are trying to make”; “I felt like he spoke a little fast”). Agreed and I’m working on it.
What’s Next for 2022?
For 2022, Product Opportunity Mapping sessions will continue to be offered to companies developing individual products and new sessions will be offered as an ongoing program to help companies create a pipeline of opportunities that generates an ongoing stream of products that are managed as a portfolio.
I also plan to seek out recent product launches by interviewing product executives, teams and entrepreneurs and completing case studies to mine best practices, lessons learned and shared experiences related to new product development. If permission is granted, I will publish these stories on product-mapping.com as well as on a podcast (expected to be launched later in 2022). If you have story ideas or are aware of a recent product launch, please email me at hello@a-partners.ca
I very much enjoy working with companies who are developing new products. I get excited by the notion of creating “something from nothing” and helping them translate an idea in someone’s head into a viable product that solves problems and generates revenue and wealth.
If you have questions about how to increase your new product development literacy across your executive team, contact me at bruce@a-partners.ca and I'd be happy to have a one-on-one conversation.
Disclaimer: This summary is based on a broad range of survey results and individual conversations with executives and while directionally correct, results should not be considered as “statistically significant”.