{"id":51998,"date":"2021-10-12T09:40:00","date_gmt":"2021-10-12T13:40:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=51998"},"modified":"2021-10-26T09:56:22","modified_gmt":"2021-10-26T13:56:22","slug":"reasons-why-new-products-fail","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/reasons-why-new-products-fail\/","title":{"rendered":"Reasons Why New Products Fail (and How to Succeed)"},"content":{"rendered":"\n<p>What are the main reasons why new products fail? Does it mean that it&#8217;s a bad product? What could the creators have done differently?<\/p>\n\n\n\n<p>In his book <em>Inspired: How to Create Tech Products Customers Love<\/em>, Marty Cagan says that many new products tend to fail when they&#8217;re introduced in the market. However, this is often due to the product development process and not because of the product itself.<\/p>\n\n\n\n<p>Here are the top reasons why new products fail and how to avoid the common pitfalls.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Concepts of Product Development<\/strong><\/h2>\n\n\n\n<p>The book <em>Inspired <\/em>gives companies and entrepreneurs a two-step process for creating and sustaining successful technology products: 1) organize and structure <a href=\"https:\/\/www.shortform.com\/blog\/effective-team\/\">effective teams<\/a>, and 2) develop products using a flexible \u201cdiscovery\u201d process. In particular, it explains how important product managers are in product development, teaches them how to be successful, and explains some of the biggest pitfalls that most tech companies fall into when designing products.<\/p>\n\n\n\n<p>Author Marty Cagan, a Silicon Valley product executive, also details how product designers and engineers should function in a team and how company executives should treat their product teams. Originally published in 2008, the book was updated in 2018 to further address evolving concepts such as lean and agile techniques. This summary begins by discussing how to set up teams, then explains how to \u201cdiscover\u201d or develop products.&nbsp;<\/p>\n\n\n\n<p>Part 1 explains the pitfalls and potential successes of three kinds of technology companies and discusses why some products fail while others succeed, which is what we will be talking about today.<\/p>\n\n\n\n<p><strong>There\u2019s a huge difference between the way most companies develop new products and the way that the best ones do. <\/strong>In this article, we\u2019ll examine why many products fail and then explain how products can succeed. Finally, we\u2019ll discuss the structure of teams and companies. You\u2019ll leave this section with an introduction<em> <\/em>into how product teams can succeed and pitfalls to avoid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why Products Fail<\/strong><\/h3>\n\n\n\n<p>To understand the pitfalls for products, teams, and companies, let\u2019s examine how companies typically develop new products:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>All products begin with an <em>idea.<\/em><\/li><li>Engineers and product managers (team leaders) build upon this idea and create a <em>roadmap <\/em>for development. The roadmap makes a \u201cbusiness case,\u201d which asks both how much a product will cost to make and how much profit it could lead to.&nbsp;<\/li><li>Then, product managers figure out <em>requirements<\/em> for the product to succeed.<\/li><li>The product is then <em>designed <\/em>by a user experience (UX) team and <em>built <\/em>by engineers.&nbsp;<\/li><li>Finally, a company will <em>test <\/em>the product, taking surveys of what consumers think of it, and then <em>deploy <\/em>it to the market.<\/li><\/ul>\n\n\n\n<p>This process, though, is filled with pitfalls. Some of the most common reasons why new products fail are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Product ideas that CEOs greenlight may be related only to sales or to pleasing stakeholders. This disempowers team members and can throttle real innovation.&nbsp;<\/li><li>It\u2019s almost impossible to know how much money a product will make at such an early stage in its development. Before a product has been built, this amounts to guesswork. Additionally, before a product has been built it\u2019s impossible to know how much it will cost to build. There are all kinds of factors that go into the cost of building technology, and we can\u2019t guess what will take a longer or shorter amount of time or more or fewer resources before something is built.&nbsp;<\/li><li>Roadmaps are usually just a list of features that people want to see included in the product. However, we have no idea what features will and won\u2019t work. In fact, a lot of our ideas either won\u2019t be built, will cost too much money, or won\u2019t excite customers the way we hoped they would.&nbsp;<\/li><li>UX designers come into the process so late in the game that they\u2019re attempting to design something that, because of how the ideas have been constructed, they often can\u2019t make user-friendly. Engineers are similarly brought into the process so late that they can\u2019t point out potential flaws in a product.&nbsp;<\/li><li>All of the risks in the process are loaded toward the end. If test customers don\u2019t like the product, then a company has poured all of this effort and money into the production of something that isn\u2019t going to be marketable. They\u2019ve also lost time, and with it, incurred a huge <a href=\"https:\/\/www.shortform.com\/blog\/opportunity-cost-decision-making\/\">opportunity cost<\/a>.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Products Can Succeed<\/strong><\/h3>\n\n\n\n<p>Now that we\u2019ve examined the usual way of <a href=\"https:\/\/www.shortform.com\/blog\/creating-a-product\/\">creating products<\/a> and the reasons that they fail, there are three ways we can do better.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Incur risk <strong>at the beginning of the process<\/strong>\u2014<em>before launching<\/em> the product,<strong> <\/strong>ask whether customers will buy it, whether the product is buildable at a reasonable price-point, and whether the product is marketable or fits in with the larger sales goals of the company. This contrasts with companies that ask these questions <em>after<\/em> they\u2019ve launched a new product. <strong>&nbsp;<\/strong><\/li><li><strong>Bring user experience (UX) designers and engineers into the idea-creation stage. <\/strong>The product manager shouldn\u2019t be the only one responsible for idea creation\u2014she should also receive ideas and figure out what the team needs collaboratively.&nbsp;<\/li><li>Think about the goals of products differently. <strong>Products are meant to solve problems that customers have; <\/strong>they\u2019re not blank slates on which executives can suggest new features that pop into their heads.&nbsp;<\/li><\/ol>\n\n\n\n<p>We\u2019ll return to these three major concepts throughout the book.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Discovery and Delivery<\/strong><\/h4>\n\n\n\n<p>Product teams that are following the rules laid out above engage in a continuous process of <em>discovery <\/em>and <em>delivery. <\/em>Think of these two concepts as parallel lines\u2014good teams work on <a href=\"https:\/\/www.shortform.com\/blog\/product-discovery-and-delivery\/\">discovery and delivery<\/a> separately but concurrently.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Discovery<\/h5>\n\n\n\n<p>Product managers consider what the product <em>needs <\/em>(discovery). The discovery process, which the summary will discuss in Part 4, attempts to answer the following four questions:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Do consumers want the product?<\/li><li>Can consumers understand the product\u2019s functionality?<\/li><li>Do our engineers have the tools to build this?<\/li><li>Do we have the money and support to create this?<\/li><\/ol>\n\n\n\n<p>To answer these questions, companies should build quick and fairly simple <em>prototypes <\/em>to test on focus groups.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Delivery<\/h5>\n\n\n\n<p>Engineers consider how to <em>implement <\/em>product needs (delivery). As we stated before, engineers can also be useful in the discovery process, but their primary role is on the delivery front. If the prototypes are popular and working well, and we\u2019ve answered \u2018yes\u2019 to all of the four questions above, engineers should concern themselves with questions of how to get the product or feature to market, scaling up production, making sure performance is good across the board, and doing the necessary safety checks on questions of privacy and security.<\/p>\n\n\n\n<p>There\u2019s a big difference between a product being <em>impressive<\/em> and its being <em>successful<\/em>. And no matter how good your engineering team is, if they\u2019re building a product that people don\u2019t want, it won\u2019t sell.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the main reasons why new products fail? Does it mean that it&#8217;s a bad product? What could the creators have done differently? In his book Inspired: How to Create Tech Products Customers Love, Marty Cagan says that many new products tend to fail when they&#8217;re introduced in the market. However, this is often due to the product development process and not because of the product itself. Here are the top reasons why new products fail and how to avoid the common pitfalls.<\/p>\n","protected":false},"author":8,"featured_media":52028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,14],"tags":[519],"class_list":["post-51998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-management","tag-inspired","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reasons Why New Products Fail (and How to Succeed) - Shortform Books<\/title>\n<meta name=\"description\" content=\"There are many reasons why new products often fail, but they may not be what you think. It&#039;s about the development process, not the product.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/reasons-why-new-products-fail\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reasons Why New Products Fail (and How to Succeed)\" \/>\n<meta property=\"og:description\" content=\"There are many reasons why new products often fail, but they may not be what you think. 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