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How Sustainable is Your New Product Development Process?

New products and services may be driving business today, but in and of itself, new product development may not be enough. To remain competitive, managers must integrate new product development (NPD) and supply chain management (SCM) processes. Here are six recommendations that can assist managers on a journey to sustainable innovation.

By ·

“Collaborate or die!” That was the tagline used in a high profile ad from an ERP company during the Internet boom. The message was clear: Companies that failed to collaborate with their trading partners were doomed to extinction. If that ad were to run today, the tagline might be: “Innovate or die!” Simply put, new products and services are driving business growth—and supply chains. Without a pipeline of innovations, many companies will eventually cease to compete, or exist. Just ask Sony. The consumer electronics company that once ruled the analog world with its Walkmans and Trinitron TVs has struggled to compete in a digital world. Or, ask yourself this: Is anyone interested in purchasing eight-track tapes? Doubtful.

But new product development in and of itself may not be enough. For one, companies compete at the supply chain level and not just at the company level. If a company is to remain competitive in the future, managers must integrate new product development (NPD) and supply chain management (SCM) processes.

For another, consumers in many instances are asking for more than just great products from the companies with whom they do business. Many consumers, especially the coveted millennials, expect companies to also act in a socially responsible and sustainable manner that considers people, planet, and profits. Satisfying this demand calls for something different: the integration of new product development with sustainable supply chain management.

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Click on Log In Now at the top of this article for full access.
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By ·
Download Article PDF

“Collaborate or die!” That was the tagline used in a high profile ad from an ERP company during the Internet boom. The message was clear: Companies that failed to collaborate with their trading partners were doomed to extinction. If that ad were to run today, the tagline might be: “Innovate or die!” Simply put, new products and services are driving business growth—and supply chains. Without a pipeline of innovations, many companies will eventually cease to compete, or exist. Just ask Sony. The consumer electronics company that once ruled the analog world with its Walkmans and Trinitron TVs has struggled to compete in a digital world. Or, ask yourself this: Is anyone interested in purchasing eight-track tapes? Doubtful.

But new product development in and of itself may not be enough. For one, companies compete at the supply chain level and not just at the company level. If a company is to remain competitive in the future, managers must integrate new product development (NPD) and supply chain management (SCM) processes.

For another, consumers in many instances are asking for more than just great products from the companies with whom they do business. Many consumers, especially the coveted millennials, expect companies to also act in a socially responsible and sustainable manner that considers people, planet, and profits. Satisfying this demand calls for something different: the integration of new product development with sustainable supply chain management.

 

SUBSCRIBERS: Click here to download PDF of the full article.

 


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Article Topics

November 2015 · All Topics
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