Successfully bringing new ideas to market is a challenge for many firms. At the root of the problem is resource allocation. Resources can be squandered or dissipated on inferior ideas, or there may be insufficient resources to successfully execute a good idea, leading to a missed opportunity.
Several points should be made here. First, it is the responsibility of senior management to actively invest in the activities which are central to product development. Lack of investment in these activities leads to a lack of resources and capability with which to execute development activities. Secondly, ideas chosen for development need to wisely chosen. This has to do with both the quality and the quantity of ideas. Great development opportunities are not just great ideas – they are great ideas with a sufficiently compelling business rationale and model. Similarly, choosing too many ideas which outstrips a firm’s capability to execute is as bad as having no ideas in the development pipeline.
Finally, a firm should not forget that it does not have to execute all stages and steps of product development using its own resources. Collaboration with partners and licensing an idea to another firm are viable options to consider for bringing products and services to market.