The majority of new product development efforts fail altogether or fail to meet corporate return expectations.
Research in the 2016 book “Monetizing Innovation” by Madhavan Ramanujam and Georg Tacke indicated:
“72% of new products introduced over the last five years failed - either failed to meet their revenue and profit goals, or failed entirely”
“65% of new products fail according to the Product Development and Management Association. That rate of failure cost US companies $260 billion in 2010 according to researchers at the University of Texas at Austin”
“75% of venture capital startups fail according to a Harvard Business School study of 2000 companies between 2004 and 2010”
Other research shows similar results:
Additional studies show similar results:
“According to Harvard Business School professor Clayton Christensen, each year more than 30,000 new consumer products are launched and 80% of them fail.”
“30,000 new consumer products are launched annually, 95% of them fail”
“The failure rate for new products launched in the grocery sector is 70 to 80%, according to Inez Blackburn of the University of Toronto”
“Nielsen statistics: more than 85% of new CPG products fail”
“95% of new products introduced each year fail”
“Up to 80% of new product launches in the consumer-packaged goods (CPG) industry fail.”
Product Opportunity Mapping is a program that increases product development ROI. It is for executives who want to plan out, evaluate and compare new product opportunities as well as to challenge and inspire their teams to build corporate resilience and diversify revenue.
Reach out to us if you would like to learn more.
We don’t intentionally create products that are destined to fail but…
