According to the Nielsen Global New Product Innovation Survey conducted in 2016, 63% of customers expect the companies they buy from to create new products. Furthermore, innovation was a very important factor to 84% of these surveyed consumers. With figures like this, it’s not hard to see why companies spend millions of dollars in research and new product development in California. So what does this mean for your company?
Investing in R&D is an Absolute Must
In 2014, several business executives were surveyed in a PwC study. 43% of these executives concurred on the fact that innovation was essential to maintaining a competitive advantage. Without continued innovation and new product development in California, most businesses will fail.
Stay Relevant or Be Forgotten
Nokia was at the top of their game at the beginning of the millennium thanks to their die-hard mobile phones. Sadly, as the years went by, they lost out because they failed to innovate, and as a result, they became irrelevant. Since then, they have been struggling to regain the market share that they once enjoyed. The truth is they might never regain it completely because the market is now flooded with a lot more competitors than in the year 2000. So the lesson here is this: innovation isn’t something to ignore, it can make or break your business.
New Product Development Doesn’t Have to be Expensive
A lot of companies shy away from investing in new product development in California because they think it’s going to be expensive. The truth is the actual cost depends on several factors such as:
– The hours the engineers spend working on the project
– What stage you are at with your idea
– Whether or not you need someone to test your prototype
– Whether or not you need a large team of engineers to supplement your own team
Before making a move, it would be wise to sit down and consult with a product development firm first.
New product development may just mean revamping an already existing product you sell. Innovating a product you already sell could be the change your company needs to become more profitable.
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