The analysis of the market value or penetration rate is more appropriate

The number is estimated to be approximately 20,000 new consumer products launched every year in Europe, to which must be added the high technology, durable goods, services or activities "B to B". These figures bring together all levels of innovation, since the concept of novelty covers both the concepts of difference (from the existing) and "recency". And, as evidenced by advertising campaigns and speeches to investors, companies derive a lot of pride in their inventive ability.

However, among these launches, the failure rate is stark: according to studies, about 20-25 of new products marketed in the industry would be considered as a failure, 30 in services, 70 to 95 in the high-tech, 35 to 95 in the consumer. Of course, these figures are subject to bail, and our words is not here to discuss the methodology of such studies. But they lead to wonder about the extent of the efforts made by enterprises to innovate. At a time where the profitability of companies often results in part of their financial investments, where innovation is particularly intense competitive conditions, is a source of growth, in terms of activity and profitability In other words, innovation creates value

To assess the impact of innovation in internal

For those responsible for enterprise, innovation often appears as a value, an objective in itself, that is always questioned its impact internally. Fruit of the notion of progress and modern (rather than postmodern) visions of society, this development forward is explained in several ways: a perception that the first to innovate benefit from a competitive sustainable sometimes discussed vision benefit by business leaders, but often shared by investors; an obsession of the competitive race to want to offer the same products as competitors, and, if possible before them; a willingness to services marketing from sticking to the expectations of the market, accelerated evolution, and therefore more and more often to renew the ranges.

These concerns are entirely legitimate. However, tools of evaluation of the success of new products are often less well-developed could the magnitude of the investments the imply. Concern many anticipate the success of new products, little analysis ex post their real impact. And used evaluation indicators are often based on the comparison of predictions obtained performance, leading to ask if it evaluates the performance of the new product or the relevance defined objectives upstream. More, it does not seek always to learn the lessons of the innovations implemented, to allow a learning design and forecasting practices.

The success of new products is often evaluated in the short term (generally a few months), while this time horizon is inadequate, the diffusion of new products are operating most of the time in a gradual and cumulative manner. By adopting a deadline by a few months, is more measured the success of the implementation in the distribution as the home of the market. But at the same time, it is set over what time horizon should be thinking: life cycle that it was predictable of the product

More fundamentally, innovation has features that make sensitive financial and accounting treatment: expenditures made for the launch advertising for example are to investment or expenditures How to set the R & D expenditures to multiple new products resulting, sometimes several years later

Expand the analysis to all the activities of the company... and the sector as a whole

To be relevant, the analysis should focus on the impact of innovation on all of the activities of the company taking into account the possible negative effects on the rest of the range (in particular if frequent cannibalization of existing products), but also positive: atrract new customers who will later evolve throughout the range, loyalty of existing customers who like to see the renewed offerevolution of the reputation of the brand and its territory, intensification of relations with distribution networks... without forgetting the hidden benefits related to physical or intangible assets (patents, experience, R & D) that will benefit future products. As shown by examples as famous as the iPod from Apple or the Sony PlayStation, a successful innovation can benefit the mark and well enterprise beyond the only become of the product.

But, often, a successful innovation is first and foremost source of growth and creation of value for the sector as a whole. The two examples above attest: they have attracted new customers to the types of MP3 players and gaming consoles or to spend more for the purchase of a device. Innovation is source of growth in that it increases the volumes of consumption, increases the average price and the level of spending, expands customer and, overall, is developing the market.

This is why the alliance with distributors or even between competitors strategies are often relevant in the field: to partner to make innovation, sometimes in the coconstruisant, and expand all clients of the sector and its level of spending are most successful that fight to reach the market with a few weeks in advance. A nearly simultaneous launch of relatively similar products is often effective to change purchase behaviors and impose innovation to customers and distributors.

This is why also indicators of market share are generally ineffective to assess innovation, because it did change the market as a whole. The analysis of the market value or penetration rate is more appropriate. Innovation is source of growth, but for all the actors, who then the share