All organisations face the challenge of innovation. Their survival and growth depends upon their capacity to renew what they offer the world (product/service innovation) and the ways in which they create and deliver that offering (process innovation) [1]. New products are critical to successful growth and increased profitability for most SMEs. As European SMEs don’t have a typical R&D department, SMEs who play and win the innovation game not only sustain themselves in their sector but also tend to distinguish themselves as market leaders. 

Basic marketing theory suggests that all products have a life cycle consisting of introduction, growth, maturity, and decline. In the maturity or decline stage it is vital that an organisation consider (1) expanding the product line to extend the life cycle, (2) redesigning the product to maintain its competitive superiority, or (3) developing a new product to maintain revenue and profitability. 

There are rewards for successful innovation and punishment for failing to innovate. But the new product development process must be managed properly so that the risks are minimised and profits are maximised. This text is designed to help SMEs managers to understand the NPD methods necessary to introduce successful new products.

2 / 33