New Product Development in an Omnichannel World
26 Pages Posted: 16 Jun 2019
Date Written: February 2019
Firms compete in an increasingly omnichannel environment. Customer journeys no longer follow a single-channel linear path but look much “messier,” involving many channels, firm-owned and external, which are seamlessly integrated through technology. The associated changes in consumer behavior and the ways in which firms interact with consumers have led many firms to reshape the way they innovate their product portfolio. This paper presents a structured overview of some of the most striking changes to firms’ new product development (NPD) process. Starting from the well-known new product funnel, we describe how the omnichannel environment and the technologies that enable it affect the speed and execution of each NPD stage. We illustrate the changes we describe with examples from, among other industries, consumer packaged goods, consumer technology, and fashion. We derive learnings for practitioners involved in product innovation as well as promising avenues for academic research.
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