The PDMA Handbook of New Product Development

33.4. Introducing Enhancements and Derivatives

Leading-edge companies create product enhancements and line extensions on specific product platforms in order to maintain a competitive position and extend the product life cycle (Burgelman, Maidique, and Wheelright, 2001). Key decisions include agreeing on product requirements, timing, and value proposition of the proposed product improvement. Some best practices include:

• Continually monitoring customer needs throughout the product life cycle and determining if new customer needs or gaps can be addressed through current product line extensions as opposed to a full new product development initiative

• Using customer service call centers, the Sales organization, and a CRM system as a prime drivers and information sources for product improvements

• Using a "fast-track" product development process to reduce time-to-market in situations where the level of risk is low

Roles and responsibilities for product improvement initiatives during LCM are ideally shared across several functions. For example, Marketing would initiate any additional, needed market/customer research, gather and summarize customer and product performance information, and prepare a mini-business-plan. Engineering would provide design alternatives, cost estimates, and development resources to complete the improvement. The product manager would ensure that all inputs are secured and coordinate the overall product improvement project.

In short, a company's product improvement ...