In an era of rapid technological advancements, shifting consumer expectations, and global competition, the success of New Product Development (NPD) lies at the intersection of product innovation and strategy. For Indian companies operating in the landscape of NPD, creating successful new products is no longer just about keeping pace; it’s about setting new standards and meeting unique market demands through structured approaches to innovation.
Indian businesses, across diverse sectors such as consumer goods, healthcare, automotive, and technology, have realized that effective NPD requires both creativity and strategic discipline. The goal is to create products that meet evolving market demands while also delivering business value. Yet, despite this understanding, many firms struggle to execute consistently. As the book “8 Steps to Innovation: Going from Jugaad to Excellence“ authored by Prof. Vinay Dabholkar and Prof. Rishikesha Krishnan suggests, innovation in India must progress from reactive, short-term fixes (often called ‘Jugaad’) to structured strategies that enable sustainable growth and competitive advantage.
Innovation as the Core of Product Development
Innovation is central to NPD, but for innovation to be effective, firms need to adopt the popular ‘work backwards’ methodology to gain deep insights into customer needs, technological capabilities, and market trends. In India, where consumer expectations vary widely across income levels and geographies, understanding these nuances becomes essential.
For example, in the volume-driven FMCG and consumer electronics sectors, companies are increasingly focusing on ‘frugal innovation’ to design robust, cost-effective products that cater to budget-sensitive consumers. Frugal innovation allows businesses to extend their market reach by developing solutions that are both affordable and functional without sacrificing quality.
Design thinking has evolved as a powerful tool that has changed the gestalt on how Indian companies approach NPD. This human-centric approach to innovation keeps the focus on users, enabling companies to create solutions that resonate with their target audience.
In sectors like healthcare and edtech, where user experience and accessibility are paramount, design thinking has led to breakthroughs in product usability and market success.
By starting with the user’s needs and building backwards, design thinking ensures that products not only meet market demands but also offer practical, relevant solutions to real-world challenges.
Strategic Discipline in NPD: A Key to Sustainable Success
While innovation is crucial, it must be aligned with a clear strategy to yield sustainable results. In NPD, strategic thinking involves making informed decisions about where to allocate resources, which ideas to prioritize, and how to manage risk.
Product portfolio management—a systematic approach to evaluating and optimizing the mix of products—is essential in this context. It enables organizations to balance between “big bets,” or high-potential, high-risk innovations, and incremental improvements that sustain growth.
Incorporating a strategic framework provides organizations with a roadmap for evaluating, refining, and scaling their product ideas. By following the strategic management frameworks, companies can transform their approach to NPD from ad hoc isolated efforts to a cohesive, goal-oriented process that maximizes the chances of market success.
For executives leading NPD initiatives, understanding and applying proven strategic & maangement frameworks can provide a competitive edge. Three foundational pillars - design thinking, frugal experimentation, and effective product portfolio management - offer a structured approach to tackling the complexities of NPD in India.
The Value of Executive Education in Strengthening NPD Capabilities
Given the multifaceted demands of NPD, continuous learning is essential for professionals in this field. IIMB’s EEP recently completed an executive program on ‘Creating Successful New Products’, which was tailored to equip participants with the advanced tools, frameworks, and insights required to drive product innovation in today’s complex market.
The Programme was directed by Prof. Ganesh N Prabhu & Prof. Vinay Dabholkar who taught the participants using video cases of user-centred product development, business model innovation, and the strategic assessment of product portfolios.
For professionals, the ability to bring structured innovation and strategic foresight into their NPD initiatives not only elevates their impact within their organizations but also contributes to building a culture of excellence. These skills are critical for companies seeking to thrive in a competitive market and meet the demands of an increasingly discerning consumer base.