Benchmarking new product forecasting

BENCHMARKING NEW PRODUCT FORECASTING By Chaman L. Jain, St. John’s University With rapid advancements in technology, a growing trend toward globalization, and constantly changing consumer demand, new product introductions have become an important part of business success because they provide a competitive edge as well as a new source of revenue. As such, there is a continuous outburst of new products or services in practically every industry. So, new product introduction is not an option; rather, it is a necessity. When someone asked Michael Dell, CEO of Dell Computer, about his recipe for success, his immediate response was this: “Taking risk and staying one step ahead of competitors.” One way to stay ahead of competition is to introduce new products/services. DEFINING NEW PRODUCTS There is no set definition of new products. Generally, a product or service is “new” when it results from product improvement, line extension, market extension, when it is new to the company, and/or when it is new to the world. By and large, product improvement is the result of changes, which may be technological or psychological. New fashions and new car models continue to be the main source ...