Introduction
In the current global setting characterized by intense competition, development of new products plays a significant role in the success of business. Different companies across the world have been forced to innovate at a fast rate for them to remain relevant in the market. Moreover, innovation has significant power to the success of any company in the industry, a feature that makes firms invest most of their resources in product development. However, different factors influence the rate of product development such as the size of a business and the nature of the industry that a given corporate resides. Nonetheless, it is worth noting that despite the high rates of product innovation, most new products fail to prosper in the market (O'Cass & Ngo, 2011). In spite of the numerous reasons behind product failure in the market, it is perceived that faulty management and inefficient planning play a significant role in the development of such a situation.
Do consumers need a new product?
Every business requires having a new product in the market for it to remain relevant. Moreover, no company can survive in the market for long without changing its product lest it might experience decreased sales and reduced profitability. Product development is a continuous process and should be developed over time without compression of its life cycle. Apparently, consumer’s wants are subject to change, and companies have to respond by transforming their products to meet the new needs of the fast economy (Tsujimoto & Ishikawa, 2008). Failure to change the organizational products will make consumers switch their attentions to rival companies in the market that meet their needs more effectively. An example in place to indicate a new product development is Coca-Cola Zero, which contains no sugar for the diabetic people. The new product was developed based on market demand, an aspect that makes consumers remain loyal to the organizational products.
Every product goes through a life cycle, and new products are introduced at the end of the cycle to meet new needs. However, for sustainability purposes, new products should be introduced at the end of the cycle and not during the initial stages. However, some of the aspects that may make a business to introduce innovation while a product is in the maturity stage include the need to stimulate sales. An example in place to show the above case includes Nintendo, which had to replace, DSi console with 3DS because of enhanced features that meet consumer needs more effectively.
Innovation has in the recent past attracted a significant amount of attention in business and is appreciated as a key driver in economic growth. Apparently, countries and organizations that have led in the area of innovation have always been considered to develop competitive advantages in the global market setting. This situation can be evidenced in countries such as China and the U.S., which are renowned for their high rate of innovation (Cantamessa & Montagna, 2016). However, it is important to note that despite the various attributes celebrated from rapid changes, numerous negative externalities are associated with the same.
The issue of business ethics is often neglected with new product development, a feature that results in more challenges. Companies or individuals often focus on developing new products other than inventing better products that can effectively meet the needs of the users more efficiently. As evidenced by the study, innovation is demanded in all spheres of life as it enhances the quality of life in different societies if well used. Therefore, change implies the successful use of new ideas in producing something new with consideration of ethical implication.
Customer update
Innovation in the current global setting is stimulated by the need to be customer oriented as one way of gaining consumer loyalty. Developing a culture of innovation requires the involvement of consumers by making them aware of the new product features that they ought to venture. The aspect helps the organization to develop a competitive advantage in the market, due to the established culture that is focused on enhancing the well-being of the customers. This includes innovation with consideration of the diverse values as per the feedback of the consumers. Through such efforts, organizations can adequately attract and retain customers in using their products. Nike is a market leader in the footwear industry, and the success is attributed from listening to consumer needs, making users anticipate for a product update and involving them in the process. In a nutshell, the company that is customer oriented, focus on developing user culture that meets the vision of the consumers.
Ethical perspective with product development
Although new product development has been associated with different benefits, the concept attracts a lot of ethical concerns if not well utilized. Therefore, enhancing economic growth through the development of new products may at times lead to devastating growth in the natural environment. For example, automation in different sectors may result in loss of jobs among people in society, which is unethical in any society. Therefore, for sustainability purposes, there is need to weigh the externalities of the new products obtained through innovation. This includes weighing of the product impact on climate change, environment and even the health of the users among other concerns.
Ethical standards in product development help guide on the developing the right product that meets consumer specifications. Innovators ought to possess ethical reasoning and practice to develop quality products that will gain demand in the market. Ethical norms are necessary for sustainability purposes in any society and should take account of the human rights and the equal dignity. The concept has made businesses to uphold to the various ethical regulations so as not to disadvantage the future generations in any way whatsoever. New product development should work towards enhancing the quality of life of people as a means of establishing well-being.
Moreover, the business ethics requires that managers should not only focus on meeting the needs of the shareholders of business but rather in satisfying the needs of all concerned stakeholders including consumers. The aspect of business needs has gained popularity in the current business setting that is customer oriented and wishes to uphold the various environmental concerns. This has led to embracement of corporate social responsibility in different organizations across the globe for sustainability purposes. The concept helps managers to make their respective corporates engage in legal activities that will help the firms to develop competitive advantage in the market setting (Sihvonen & Partanen, 2016).
It is worth noting that the need to continuously update products may lead to devastating challenges which may incapacitate sustainable existence of nature. Continuous product development as one strategy of meeting consumer needs may attract ethical concerns due to the negative externalities that are associated with the same. Companies that fail to follow recommended standards risks compromising the life of users in the community due to health impacts that may result from the innovation or inefficient exploitation of resources. Product development should, therefore, be managed in a way that they meet the needs of the company shareholders as well as the needs of the surrounding communities.
Apparently, resources on earth are limited in achieving the needs of consumer's and should thus be used in an optimal manner so that no one is incapacitated in any way whatsoever. The strategies to innovate product should consider the fact that optimal utilization of resources is a necessity. With embracement of CSR, the company involved in the development of new product has a responsibility of taking care of their surroundings. For example, Coca-Cola Company in their invention of the Zero Coke, the product should not have a harmful effect on their consumers.
Innovation is vital as it helps people to devise new approaches to doing things in a new way and can be regarded as ethical due to its contribution to well-being. Different innovation schemes have varied impacts on people hence influence their lives in diverse ways. Therefore, the aspect of ethical consideration in product development is meant to leverage risks that come with innovation. Innovation should be managed in an ethical manner to impact positively to the different stakeholders that depend on it.
Conclusion
Consumer's want is subject to change, and through innovation, the organization's products are transformed to meet the new market demands. Product development follows a life cycle and organizations that develop more products with better features gains a competitive advantage in the market. However, it is important to appreciate that upholding business ethics is necessary for any organization for sustainability purposes. Innovation is required in all spheres of life, and with ethical considerations, people can experience enhanced quality of life. Developers of new products should ensure that they do not affect others in any negative way whatsoever. This includes incapacitating others regarding the job, income or wealth distribution among other aspects as required in any society.
References
Cantamessa, M., &Montagna, F. (2015).Management of innovation and product development: Integrating business and technological perspectives: 2016. United Kingdom: Springer London.
Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), 23-34.
O’Cass, A., & Ngo, L. V. (2011). Winning through innovation and marketing: Lessons from Australia and Vietnam. Industrial Marketing Management, 40(8), 1319–1329.
Sihvonen, S., &Partanen, J. (2016).Implementing environmental considerations within product development practices: A survey on employees’ perspectives.Journal of Cleaner Production, 125, 189–203.
Tsujimoto, A., & Ishikawa, A. (2008).Creative marketing for new product and new business development. Singapore: World Scientific Publishing Company.
