Abstract:

Development of a breakthrough innovation product within established enterprises is a big challenge. One of the main reasons of a high failure rate of innovation products and too low lifetime value is that created products do not meet customer needs and their desires. Most executives admit that innovation engine in their In most cases the efforts to jump-start innovation through cash awards for a useful idea and improvement suggestion forces frequently prove fruitless. Bright ideas and great intentions remain in the heads of employees. The reason why this happens is the following. Internal procedures and business processes of established enterprises, as opposed to startups, are more standardized and formalized. The speed and flexibility of employee decision making and implementation of their ideas is greatly reduced for this reason. This is typical also for the process of new product development. On the other hand, explorative type of works at the initial stage ("fuzzy front end") of innovation product development (IPD) process is full of uncertainties, poorly formalized and requires flexible approach in management.