What are the main risks in new product development?
With any new product, there is a risk that you may not produce what customers want. This risk is typically higher when new product ideas are based on the availability of new technologies or your own inspiration rather than being customer-led. So it’s a good idea to aim to solve or improve a customer experience rather than merely rehash existing products. During the development process, you may need to overcome technical hurdles. There are also likely to be a range of other operational risks: for example, ensuring that you have a secure supply of reliable components. Finally, there is the financial risk if your new product doesn’t generate sufficient demand at a price that is profitable. Bear in mind that sales income will need to cover the cost of product development, and that you may face additional marketing costs to stimulate demand for your new product.
