The Relationship Research Of New Product Concept,R&D Investment And Performance

Society development forward needs innovation while Innovation relies on enterprise investment in new product development and go to market.One of the most important success factor of an enterprise compete in the market is innovation of new products.As the market competition intensified,enterprise increased to invest in R&D.Take SAP as an example,R&D cost in 2015 is accounted for 13.6% of SAP's revenue in 2015.Although many companies invest a considerable amount of R&D costs,but does not guarantee the new product innovation must be able to obtain satisfactory returns.Innovation is very important,but the innovation also is risky as failure of an innovation project will bring huge loss of human and costs.And the success of new product innovation is directly related to how much R&D resources are invested and whether new product concept is closely related to the company technical strategy and the demand of the market.Therefore the formation of new product concept fit through the market or not becomes the key to start the R&D project and get new product performance from market.The success rate from formation of a new product concept to start development is very low.Many new product innovation project will be canceled if it doesn't fit enterprise's technical strategy or market demand.Project team has to meet both of these 2 conditions to get approval from top management team and sell new product to market.It still costs much development efforts and costs in new product concept phase.Enterprise has to invest many new product innovation projects and get response from both market and internal support from top management team and other team.An R&D department might has many innovation project in one time.Department has much pressure of low conversion rate from new product concept to new product.It's a huge investment of human resources,traveling cost and potential management cost to innovation department.The new product performance depends on support of top management team,relative department collaboration,quantity of customer innovation and Design Thinking tactic.There are 3 innovation projects from SAP are compared using multiple case study methodology.The results shows that new product concept has positive impact to development resources and innovation performance is impacted indirectly.R&D resources and innovation performance at different levels depends on the formation of new product concept.The fitness of new product concept depends on enterprise technology strategy,market requirements.Support from top management team,collaboration of internal departs,quantity of customer involved in innovation project and Design Thinking has positive impact to R&D investment and innovation performance.There has few research on these 3 elements relationships: Fitness of New Product Concept,R&D Investment and Innovation Performance.In addition,the author also found the vertical communication process during product innovation process.Bottom-up communication can get support from top management team.The study develops relationship of these 3 elements: the new product concept,R&D invest their resources and innovation performance.This theory has value to enterprise how to improve innovation performance.