Why Smart Companies Do Dumb Things: Avoiding Eight Common Mistakes in New Product Development (Hardcover)

~ (Author)

Editorial Reviews

Review

"This book rocks with practical and perceptive candor, and down-to-earth advice. Any company can improve its new product marketing and financial success batting average by adopting Cal's principles." -- Peter Klein, recent Senior Vice President for Strategy and Development, at the Gillette Company, and founder of PK Associates.

Product Description

Innovation is the lifeblood of American business. Without the creativity to find the next must-have product or service, companies quickly lose their competitive edge. Knowing this, corporate leaders invest heavily in research and development. Notwithstanding the dollars spent on R & D, the fact remains that better than 90 percent of innovation initiatives fail to achieve their return-on-investment targets. Poor management decisions and lack of marketplace savvy often undermine even huge research efforts. Can America continue to be a formidable global competitor with this kind of failure rate?

Taking a case history approach, Calvin Hodock examines eight typical innovation blunders that continually doom new product development. From misjudging the market and "dead-on-arrival products" to "fatal frugality" and "timetable tyranny," he discusses not only why such mistakes occur but also the dire consequences to both investors and employees. When Polaroid declared bankruptcy, because it missed the digital imaging trend, the company's employees lost their retirement and pension benefits. Now the failure of the American automobile industry to create "gotta have" cars threatens to wreak long-term havoc in a large segment of American workers.

Among the problems Hodock points to are breakdowns in the marketing research process, marketing dishonesty, lack of real-world preparation among newly graduated MBAs, CEOs under pressure to deliver unrealistic earning targets, clueless boards of directors, and the general absence of accountability.

After analyzing each problem, Hodock emphasizes the lesson learned and concludes with a list of best practices for successful innovation. He shows how even modest improvements in the innovation process can double the bottom line for any company while making their shareholders more prosperous and happier.

Hodock's incisive analysis and illuminating new approaches to successful development and marketing are must reading for students of business, seasoned corporate executives, and anyone interested in the future of American business.

See all Editorial Reviews

Product Details

• Hardcover: 357 pages
• Publisher: Prometheus Books; 1 edition (December 6, 2007)
• Language: English
• ISBN-10: 1591025680
• ISBN-13: 978-1591025689
• Product Dimensions: 9.1 x 6.1 x 1.1 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (8 customer reviews)
• Amazon.com Sales Rank: #814,565 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Learn What Not to Do, February 12, 2008

By	Daniel W. Hays (Salem, OR, USA) - See all my reviews (REAL NAME)

The sub-title of this surprisingly readable book is: "Avoiding Eight Common Mistakes in New Product Development - Lessons Learned from Innovation Blunders." It's the sort of title and sub-title one expects from trendy or failed businessmen. In this case, it is the title selected by a genuine expert. Former chairman of the board of the American Marketing Association, Hodock teaches business and marketing at a rather long string of colleges and universities throughout the country.
In other words, he knows what he's talking about.
The premise of the book is simple, really: Innovation is absolutely key to the survival and well-being of American business. So failed innovation has far-reaching effects. This book is, quite literally, a guide to how not to fail.
It accomplishes this goal through eight extensive case histories. After each problem is illuminated...and its causes thoroughly examined...Hodock emphasizes the lesson to be learned and offers practical advice on how to put that lesson into practice.
There is, obviously, a highly selective audience for this book. But any businessman would do well to take a look at "Why Smart Companies Do Dumb Things." The most innovative thing is not to make mistakes in the first place. This book can help you achieve that goal.

3 of 3 people found the following review helpful:

5.0 out of 5 stars Loved This Book! Fail Smarter Rather Than Fail Stupid., January 20, 2008

By	Loves Books - See all my reviews

New products are risky. More fail than succeed. What this book points out is American business continues to make the same eight mistakes over and over. This is truly failing stupid. This is nothing wrong with failure if we learn from it. This book reinforces the eight common innovation mistakes with case histories and the lessons learned from each innovation debacle. The lessons are a sure way to fail smart. I really enjoyed reading this book and will recommed it to everyone I know.

3 of 3 people found the following review helpful:

5.0 out of 5 stars Funny and Insightful, January 12, 2008

By	Kathy M. Mills - See all my reviews (REAL NAME)

Many business books are a bit on the dry side, but not this one. It has a marvelous sense of humor on an important topic product innovation. The energetic and humorous style builds a strong bond between the reader and content. You'll stay engaged with this book from the first to the last chapter.
One example of this is what the book refers to as Marketing Alzheimer's or Marketing Amnesia. Companies keep making the same product mistakes. There is no historical perspective. They simply go out and make the same mistakes again, victims of history lessons forgotten.