Idea generation

New-product development begins with idea generation-the systematic search for new-product ideas. A company normally has to generate various ideas in order to find a few good ones. Major sources of any new-product ideas include customers, competitors, internal sources, distributors and suppliers, and others. By using internal sources, the company may discover new ideas through formal research and development.  It may pick the brains of its executives, engineers, scientists, manufacturing, and salespeople. Some of the companies have developed successful "entrepreneurial" programs that encourage employees to think up and develop new-product ideas. Good new- product ideas also come from watching and listening to customers. The company may analyze customer questions and complaints to discover new products that better solve consumer problems. The company may conduct surveys or focus groups to learn regarding consumer needs and wants. Or company engineers or salespeople may meet with and work alongside customers to obtain suggestions and ideas. At last, consumers frequently create new products and uses on their own, and companies may benefit by searching these products and putting them on the market. Customers may also be a good source of ideas for a new product uses that may expand the market for and extend the life of present products. Competitors are another good source of new-product ideas. Companies observe competitors' ads and other communications to obtain clues regarding their new products. They buy competing new products, take them apart to observe how they work, analyze their sales, and make a decision whether they should bring out new product of their own. At last, distributors and suppliers contribute various good new-product ideas. Resellers are lock to the market and may pass along information regarding consumer problems and new-product possibilities. Suppliers may tell the company regarding new concepts, techniques, and materials that may be used to develop new products. Other idea sources include shows, trade magazines and seminars; new- product consultants; government agencies; marketing research firms; advertising agencies; and commercial and university laboratories; and inventors.

The search for new-product ideas would be systematic instead than haphazard. Or else, few new ideas shall surface and various good ideas will sputter in and die. Top management may ignore these problems by installing an idea management system that directs the flow of a new idea to a central point where they may be reviewed, collected and evaluated. In setting up such a system, the company may do any or all of the following:

1. Appoint a senior person to be the company's idea manager.
2. Make a multidisciplinary idea management committee consisting of people from R&D, engineering, operations, purchasing, finance, and sales and marketing to meet repeatedly and evaluate proposed new-product and service ideas.
3. Set up a toll-free number for anyone who desires to send a new idea to the idea manager.
4. Encourage all company stakeholders-suppliers, employees, dealers, distributors to send their ideas to the idea manager.
5. Set up formal detection programs to reward those who contribute the best new ideas.

The idea manager approach yields two favourable outcomes. Primary, it helps make an innovation- oriented company culture. It indicates that top management encourages supports, and rewards innovation. Secondly, it will yield a big number of ideas among which will be found some especially good ones. Since the system matures, ideas will flow more freely. No longer shall good ideas wither for the lack of a sounding board or a senior product advocate.