China's Industrial Enterprises In New Product Development, Risk Prevention Countermeasures

Nowadays the competition of markets is very drastic. More and more enterprises take developing new products as the most important method to improve the key power, to maintain competitive superiority and to make them selves stand in better places. Especially, under the transient market conditions, if one first produces required products he can occupy the highlight in market competitions and get the control power on competitive superiority. As far as Chinese excellent enterprises are concerned, all of them constantly develop new products to satisfy the market demands and to suit the market changes. However, developing new products is an activity full of risks because the great profits are always accompanied by great risks. Once it fails, it will cause great investment losses, even bankruptcy. Under the drastic market competitions, enterprises face many uncertainties that come from not only interior but also from exterior environments. During the respective phases of developing new products, those contingent factors may bring negative impacts and even lead to developing failure. This requires enterprises take corresponding risk-preventing countermeasures to ensure the developing success when they decide to develop new products. In reality, the greatest mistake during developing new products in many enterprises is the lack of awareness against risks. However, the developing risks exist objectively and its impacts on enterprises are deadly. So it is necessary to take measures against risks during developing new products. By doing this, enterprises will not only enforce the risk awareness of developing new products but also propel new products developing activities and improve the developing success rate.Now, although many scholars have done a lot of researches on various risks, they do not put too much on risk-preventing in developing newproducts. Moreover, the relevant foreign references are very limited. Therefore, the research on countermeasures against risks is an imperative topic in enterprise management and it is very important in practice.This paper contains three sections: preface, text 1 and text 2.The preface briefs the research necessity and basic thought. Text 1(Chapter1-3) mainly introduces the necessity of risk-preventing countermeasures in developing new products. Text 2(Chapter 4-7) is the core of this paper.Chapter 4 expounds the risk-preventing countermeasure based on information investigation and reducing decision fault.Chapter 5 describes the risk-preventing countermeasure based on developing strategy and decreasing uncertainties.Chapter 6 expounds doing well risk analysis and working out specific measures against risks from project view.Chapter 7 describes countermeasures of reforming organization design and reducing organization's disadvantageous influences.In this paper, from several aspects, the author inquires into countermeasures against risks in details during developing new products, and hopes this paper will be useful to our industrial enterprises.