Designing a new product is a combinatorial problem of how to select the appropriate technology “bricks” and combine them to provide an innovative service package that addresses customers’ needs and desires.
The product or service remains centered on the basic need of the customer, but it now encompasses addition, peripheral needs, progressing from the initial basic functionality to a service-oriented package.
In the fast-paced world of today, companies and their products are under more pressure than ever from the threat of commoditization. In fact, the threat of commoditization was a risk cited by all of the innovation managers we interviewed. They were all focused on mitigating the risk of their company being categorized as a commodity provider.