Decision-Making in New Product Development: the roles of Design Thinking and Social Technology

Despite recent studies estimating new product failure rates around 40%, down from traditional estimates of 80% or higher (Castellion & Markham, 2012), the risk of failure in launching product-based innovations remains significant. Nevertheless, companies continue to innovate and introduce new products to the market. While external factors often drive product innovation, failure can frequently be attributed to a lack of strategy and rigor in the development process itself. However, the decision-making process within new product development has received limited attention. This paper examines corporate decision-making across various stages of product development, with a particular focus on the roles of design thinking and social technology. Through case studies of successful product launches, we demonstrate how structured decision-making frameworks and collaborative approaches can reduce failure rates. This research contributes to innovation management literature and offers practical strategies for managers seeking to improve decision-making processes and outcomes in competitive markets.