Now the question remains – why kill t
he very product or render it obsolete when you have spent huge sums in its making in the expensive form of R&D investments? Well, the answer is simple as it could get – to make way for its modified, newer products from its stable! Innovation and change are the primary forces which drive and dominate businesses today. And modern corporations don’t think twice before shelling out a huge amount to make their good products, better! Look at the Finnish Nokia which spent $5.14 billion during FY2006 alone – a mind-boggling 9.5% of their total revenues during the year and an appreciation of 13.6% as compared to R&D figures for FY2005! If that made you think that the Finnish are a crazy lot, the American Motorola Spent another hefty 9.6% of its revenues on R&D during 2006 – a whopping $4.11 billion and marking an appreciation of a healthy 11.6% over the previous year!
The result can be seen well enough though with Nokia launching 56 different models during the previous year and then of course, there was Motorola shining with different versions of Moto Razr like V3 and V3i and in trendy colours like golden and pink at that. And its not only the mobile manufacturers we are talking about here – Sony’s various launches of Plasma and LCD screen televisions models or digi-cams (be it cyber shot or still cameras), or even the MP3 players; Honda’s disclosure of different models of its very popular version ‘City’ and that too such a short span of time and the list could just go on and on... but it all confirms the very ‘killing’ fact – emotionlessly murdering your dearly branded product is mandatory for growth. Better accept it or die!
he very product or render it obsolete when you have spent huge sums in its making in the expensive form of R&D investments? Well, the answer is simple as it could get – to make way for its modified, newer products from its stable! Innovation and change are the primary forces which drive and dominate businesses today. And modern corporations don’t think twice before shelling out a huge amount to make their good products, better! Look at the Finnish Nokia which spent $5.14 billion during FY2006 alone – a mind-boggling 9.5% of their total revenues during the year and an appreciation of 13.6% as compared to R&D figures for FY2005! If that made you think that the Finnish are a crazy lot, the American Motorola Spent another hefty 9.6% of its revenues on R&D during 2006 – a whopping $4.11 billion and marking an appreciation of a healthy 11.6% over the previous year!The result can be seen well enough though with Nokia launching 56 different models during the previous year and then of course, there was Motorola shining with different versions of Moto Razr like V3 and V3i and in trendy colours like golden and pink at that. And its not only the mobile manufacturers we are talking about here – Sony’s various launches of Plasma and LCD screen televisions models or digi-cams (be it cyber shot or still cameras), or even the MP3 players; Honda’s disclosure of different models of its very popular version ‘City’ and that too such a short span of time and the list could just go on and on... but it all confirms the very ‘killing’ fact – emotionlessly murdering your dearly branded product is mandatory for growth. Better accept it or die!
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