Based on our National Science Foundation (NSF) STEM I-Corp research*, these are the top 12 product development risks companies identified (not in any particular order). Risks areas include:
- Disruptive new technologies on the horizon that could drive down demand or render the product obsolete.
- Launching a product in new countries; strict legal requirements making it difficult to conduct business, leverage intellectual property, or earn a profit.
- Understanding of what is happening to complimentary / substitute products from potential competitors.
- Compelling value proposition for each customer segment.
- Resources (people and budget) to deliver the product on time.
- Salesforce is unwilling or not able to sell the product since it earns less of a commission than the existing product, and they do not understand the value of the new product.
- Large enough portion of the market that cares about the product.
- To encourage diffusion and adoption of the product.
- Understanding of the investment required to develop the product.
- Reliable suppliers with proven experience in the technologies and materials required.
- Evidence that the technology will work.
- Understanding of the intellectual property / white space available in the category.
- If your company is thinking of taking on a practically risky venture/product, we can facilitate a session to help your team identify and manage the most impactful product development risks. Contact Mary to learn more.
*Kathy Morrissey and Mary Drotar, Co-founders of the Product Risk Framework and Strategy 2 Market, received a grant from the National Science Foundation (NSF) STEM Innovation Corps (I-Corp) for their research in reducing uncertainty and risk in product development. This grant was sponsored by the University of Chicago and supported with funding from the NSF. The I-Corps program is specifically designed for participants working on projects related to the STEM fields. A major component of the research involved interviewing top innovation leaders across multiple disciplines (R&D/Engineering, Product Management, Marketing, etc.), industries (Medical Device, Insurance, Industrial, Telecom, Food/Beverages, CPG, CE, etc.), and ranks (entry-level to CEOs). These interviews provided valuable insight into the most effective ways to drive down uncertainty and risk in product development, leading to the development of the Product Risk Framework™.
The unique value proposition of the Product Risk Framework business intelligence software tool is to help companies prevent product failure and confidently pursue riskier higher-return projects.