As organizations struggle to remain globally competitive, the pressure to introduce new products and/or services has never been greater. Ironically, at a time when more and more attention has been paid to the introduction and modification of products, the new product failure rate has never been higher. In fact, studies by J. Paul Peter and James H. Donnelly, Jr., authors of A Process to Marketing Management, estimate that the new product failure rate ranges from 33 to 90 percent, depending on the industry. In addition, Robert G. Cooper, Ph.D., and Elko J. Kleinschmidt, Ph.D., faculty members with the Management of Innovation and New Technology Research Centre (MINT), in a 1991 article claimed that nearly one-half of the resources that firms spend on product innovation are spent on commercial failures. Neil Love, certified management consultant and principal for San Jose, California-based LBL Improvement Partners, says studies indicate a 35 to 40 percent new product failure rate in many industries.
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