Developing Products: What R&D Focused Companies are Missing

Developing products and bringing them to market is a challenging task that requires a lot of time, effort, and resources. Companies that focus on research and development (R&D) often have a unique advantage when it comes to innovation and product development. However, even the most innovative companies can struggle with bringing their products to market successfully. In this article, we will explore the top 5 things that R&D focusing companies are missing when bringing a product to market.

Developing Products with a Clear Market Need

One of the most common mistakes that R&D focusing companies make is developing products without a clear understanding of the market need. Even if a product has a unique and innovative feature, it doesn’t necessarily mean that there is a demand for it in the market. Companies should conduct extensive market research to identify customer needs, pain points, and preferences. This research should be used to inform the product development process and ensure that the product meets a genuine market need.

Developing products in high tech requires careful examination of product-market fit. Courtesy of McKinsey & Co.

For example, Kodak developed the first digital camera in 1975, but they didn’t commercialize it because they didn’t see a market for it. The company missed the opportunity to dominate the digital photography market, and eventually lost its position as a leading camera manufacturer.

Limited Focus on User Experience

Another common mistake that R&D focusing companies make is placing too much emphasis on product features and technical specifications, and not enough focus on the user experience. A product’s success depends not only on its functionality but also on its usability and overall user experience. Companies should prioritize user-centered design and conduct extensive user testing to ensure that the product meets the needs and preferences of its target audience.

For example, Microsoft released the Zune music player in 2006, which had many features that were superior to the popular iPod. However, the Zune was difficult to use, had poor battery life, and was incompatible with many music formats. As a result, the product failed to gain traction in the market, and Microsoft eventually discontinued it.

Ineffective Marketing and Branding

Even if a product meets a clear market need and has a great user experience, it won’t be successful if it’s not effectively marketed and branded. Many R&D focusing companies underestimate the importance of marketing and branding, assuming that the quality of the product will speak for itself. However, a product’s quality is only one aspect of its success; effective marketing and branding are essential to reach and resonate with the target audience. Companies should invest in comprehensive marketing and branding strategies that align with the product’s unique features and the target audience’s preferences.

For example, Google released its social network, Google+, in 2011 to compete with Facebook. However, Google+ was not marketed effectively, and it failed to gain traction in the market. In 2019, Google announced that it would be shutting down the platform due to low usage.

Poor Timing for Developing Products

Another common mistake that R&D focusing companies make is bringing a product to market too early or too late. Timing is a critical factor in a product’s success; releasing a product too early can mean that it doesn’t meet the market’s needs, while releasing a product too late can mean that the market has moved on to other solutions. Companies should conduct comprehensive market research to identify the ideal timing for their product’s release.

For example, Segway released its self-balancing scooter, the Segway Personal Transporter, in 2001. While the Segway had many innovative features, it was too early for its time, and the market wasn’t ready for it. The product failed to gain widespread adoption, and Segway eventually shifted its focus to other products.

Inadequate Support and Customer Service

The final mistake that R&D focusing companies make is failing to provide adequate support and customer service. Even if a product is innovative, meets a market need, and has a great user experience, customers will be hesitant to purchase it if they don’t have confidence in the company’s ability to provide adequate support and customer service. Companies should invest in building a robust customer support infrastructure that can quickly address customer concerns and questions.

Bad Customer Service is one of the key reasons of failing products. Courtesy of Playvox.

For example, when Fitbit released its first fitness tracker in 2009, it quickly gained a loyal following due to its innovative features and user-friendly design. However, the company struggled to keep up with the demand for customer support and faced criticism for slow response times and inadequate support. Fitbit eventually invested in improving its customer support infrastructure and has since become a leading brand in the fitness wearable market.

Conclusion

In conclusion, bringing a new product to market is a complex process that requires attention to many factors beyond just R&D. While R&D focusing companies have a unique advantage when it comes to innovation and product development, they can still struggle with bringing their products to market successfully. By avoiding the top five mistakes discussed in this article – a clear market need, limited focus on user experience, ineffective marketing and branding, poor timing, and inadequate support and customer service – companies can increase their chances of success and bring innovative products to market that meet the needs and preferences of their target audience.