Appendix 2.9: Reference List with Potential Risk Issues in the Innovation Process

I. Product family and brand-positioning risks
1. New product helps to achieve business strategy,
2. Project is important for project portfolio,
3. New product contributes to brand name position,
4. Project includes global rollout potential and schedule,
5. New product fits within existing brand.
6. New product fits with brand image.
7. New product enhances the potential of product family development.
8. New product provides opportunities for platform deployment.
9. New product supports company reputation.
10. New product has brand recovery potential.
11. New product has brand development potential.
12. New product's platform will be accepted by consumers.
II. Product technology risks
1. New product's intended functions are known and specified.
2. New product fulfills intended functions.
3. In-use conditions are known and specified.
4. Interactions of product in use with sustaining materials, tools, and so on are understood.
5. Components' properties, function, and behavior are known.
6. Correct balance between product components is established.
7. Assembled product meets safety and technical requirements.
8. Alternatives to realize intended product functions are available.
9. New product shows parity in performance compared to other products.
10. New product shows stability while in storage (in factory, shop or warehouse, and transportation, and at home).
11. New product format meets functional requirements.
III. Manufacturing technology risks
1. Raw materials are available that meet technical requirements.
2. Process steps to realize the new product are known and specified.
3. Conditions (temperature, energy, safety, etc.) to guarantee processing of good product quality are known and specified.
4. Production means (equipment and tools) necessary to guarantee good product quality are available.
5. Scale = up potential is possible according to production yield standards.
6. Production system requirements (quality and safety standards, training of human resources, facilities, etc.) will be met.
7. Product-packaging implications are known and specified.
8. Manufacturing efficiency standards will be met.
9. Alternative approaches to process the intended product will be available.
10. Adequate production capacity is available.
11. Adequate production start-up is assured.
12. The reusability of rejects in production is foreseen.
IV. Intellectual property risks
1. Original know-how will be protected.
2. Required external licenses or know-how is known and available.
3. Relation to legal and patent rights of competitors is known and arranged.
4. Relevant patent issues are understood.
5. Patent-crossing potential is known and arranged.
6. Trademark registration potential is known and arranged.
V. Competitor risks
1. Product will provide clear competitive advantages.
2. Introduction of new product will change existing market share positions.
3. Introduction of the new product will have an impact on market prices.
4. New product will be launched before competitors launch a comparable product.
5. Response actions toward public and media expected from competitors will be anticipated.
6. New product enables the creation of potential barriers for competitors.
7. Implications of being technology leader or follower for this project have been identified.
8. Competitor's actions will be monitored and followed with adequate response.
9. Competitor's challenges will be monitored adequately.
VI. Supply chain and sourcing risks
1. Suppliers will meet required quality.
2. Capacity available to meet peak demands.
3. Appropriate after-sales services are available.
4. Contingency options are available for each of the selected suppliers.
5. Financial position of each supplier is sound.
6. Past experiences with each of the suppliers are positive.
7. Suppliers are ready to accept modifications if required.
8. Supply contracts can be canceled.
9. Each supplier will be reliable in delivering according to requirements.
10. Required quantities will be produced for acceptable prices.
11. Appropriate contract arrangements with suppliers will be settled.
VII. Consumer acceptance risks
1. Product specifications meet consumer standards and demands.
2. New product fits consumer habits and/or user conditions.
3. New product offers unique features or attributes to the consumer.
4. Consumers will be convinced that they get value for money, compared to competitive products.
5. New product appeals to generally accepted values (e.g., health, safety, nature, and environment).
6. New product offers additional enjoyment, compared to competitive products.
7. New product will reduce consumer costs, compared to competitive products.
8. Non-intended product use by consumers is adequately anticipated.
9. Target consumers' attitudes will remain stable during the development period.
10. New product will be communicated successfully with target consumers.
11. New product will provide easy-in-use advantages, compared to competitive products.
12. Primary consumer requirements are known.
13. Target consumers will accept the new product's key product ingredients.
14. Niche marketing capabilities are available if required.
15. Communication about new product is based on realistic product claim.
16. Advertising will be effective.
17. Product claims will stimulate target consumers to buy.
18. New product has repeat sales potential.
VIII. Trade customer risks
1. Product specifications will meet trade customer standards and demands.
2. Trade customers will welcome the new product from the perspective of potential sales.
3. Trade customers will welcome the new product from the perspective of profit margin.
4. Trade customers will welcome the new product given required surface and volume on shelf and storage facilities.
5. Trade customers' attitudes will remain stable during the development period.
6. New product will be communicated successfully to trade customers.
7. Right distribution channels will be used.
8. Trade will give new product proper care.
9. Trade-supporting persons will endorse the new product.
IX. Commercial viability risks
1. The market target is clearly defined and agreed.
2. Market targets are selected based on convincing research data.
3. Capital cost projection for new product is feasible.
4. Delays in product launch will leave the commercial viability of the new product untouched.
5. Sales projections for new product are realistic.
6. Estimated profit margins are based on convincing research data.
7. Profit margin will meet the company's standards.
8. The estimated return on investment will meet the company's standards.
9. Volume estimates are based on clear and reliable estimates.
10. Product viability will be supported by repeat sales.
11. Suppliers will get attractive purchasing agreements.
12. Knowledge of pricing sensitivity is available.
13. Adequate investments to secure safety in production will be made.
14. Long-term market potential is to be expected.
15. Financing of capital investment is secured.
16. Fallback to prior product concept is feasible.
IX. Commercial viability risks
1. The market target is clearly defined and agreed.
2. Market targets are selected based on convincing research data.
3. Capital cost projection for the new product is feasible.
4. Delays in product launch will leave the commercial viability of the new product untouched.
5. Sales projections for new product are realistic.
6. Estimated profit margins are based on convincing research data.
7. Profit margins will meet the company's standards.
8. The estimated return on investment will meet the company's standards.
9. Volume estimates are based on clear and reliable estimates.
10. Product viability will be supported by repeat sales.
11. Suppliesr will get attractive purchasing agreements.
12. Knowledge of pricing sensitivity is available.
13. Adequate investments to secure safety in production will be made.
14. Long-term market potential is to be expected.
15. Financing of capital investment is secured.
16. Fallback to prior product concept is feasible.
17. New product is commercially viable in case of market restrictions.
X. Organizational and project management risks
1. Internal political climate is in favor of this project.
2. Top management actively supports the project.
3. Project goals and objectives are feasible.
4. Project team is sufficiently authorized and qualified for the project.
5. Project team will effectively utilize the knowledge and experience of (internal) experts.
6. Roles, tasks, and responsibilities of all team members are defined and appropriate.
7. Decision-making process in the project is effective.
8. Communication between members in the project team is effective.
9. Required money, time, and (human) resources estimations are reliable and feasible.
10. Required money, time, and (human) resources will be available when required.
11. External development partners will deliver in time, and conform to budget and technical specifications.
12. Sound alternatives are available to external development partners.
13. Collaboration within the project team is effective.
14. Project will effectively be organized and managed.
15. Collaboration with external parties is effective.
16. Collaboration between project team and the parent organization is effective.
17. Project team is highly motivated and committed.
18. Project team is paying attention to the right issues.
19. Project has effective planning and contingency planning.
20. Project team is learning from past experiences.
XI. Public acceptance risks
1. It is clearly understood who is responsible for the public relations of the project.
2. The key opinion formers for the new product are known.
3. Support of key opinion formers will be assured.
4. Legal and political restrictions will be adequately anticipated.
5. Environmental issues will be adequately anticipated.
6. Safety issues will be adequately anticipated.
7. Possible negative external reactions will be effectively anticipated.
8. In case of new technology, prior (external) experience will be consulted.
XII. Screening and appraisal
1. New product performance targets will be tested and measured adequately.
2. Trade customer appreciation will be tested and measured adequately.
3. Consumer appreciation will be tested and measured adequately.
4. Adverse properties as a consequence of the technological change will be tested and measured adequately.
5. Credibility of the (internal) measures to external agencies is warranted.
6. Tests will provide reliable evidence.
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